South Korea's main airport bets on smart handling of cargo
South Korea's largest airport is aggressively investing in smart cargo-handling infrastructure with the goal of consolidating its position as a global logistics hub, its logistics chief told Nikkei Asia. The airport is expanding automated systems to more efficiently process incoming shipments from e-commerce companies and reduce the need for human staff, thereby warding off labor shortages, Lee Sang-yong, executive director of Incheon International Airport Corp.'s Logistics Group, said in a recent interview. "Logistics is the main function of increasing competitiveness," Lee said. "Including trans shipments, our aim is to be a logistics hub for the whole area around the airport -- China, Japan and Southeast Asia." The airport, located on an island off South Korea's northwestern coast, opened in 2001 and won Skytrax World Airport of the Year awards in 2009 and 2012. It is owned by Incheon International Airport Corp., a government body under the country's transport ministry. While airports did not suffer as much as airlines from the pandemic-driven drop in passenger traffic, they nevertheless did record big losses due to their high fixed costs. The pandemic-related boom in e-commerce, however, came with increased shipments of food and electronics as consumers sought meals and entertainment at home. In 2021, Incheon International recorded a rise in cargo volume, handling 3.3m tonnes to rank second in the world after Hong Kong. Incheon's total volume that year marked an 18.6% increase from the previous year and was up 22.9% from 2019, the last year before the pandemic, according to Airports Council International. Movements at the facility -- about an hour's drive from central Seoul -- are consistent with changes at air hubs around the world, as operators brace for a future where air traffic volume is unpredictable. A February report by consultancy McKinsey said that airports ought to "consider new ways to diversify their revenue streams and sustain their operations for the long term."<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-04-18/general/south-koreas-main-airport-bets-on-smart-handling-of-cargo
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South Korea's main airport bets on smart handling of cargo
South Korea's largest airport is aggressively investing in smart cargo-handling infrastructure with the goal of consolidating its position as a global logistics hub, its logistics chief told Nikkei Asia. The airport is expanding automated systems to more efficiently process incoming shipments from e-commerce companies and reduce the need for human staff, thereby warding off labor shortages, Lee Sang-yong, executive director of Incheon International Airport Corp.'s Logistics Group, said in a recent interview. "Logistics is the main function of increasing competitiveness," Lee said. "Including trans shipments, our aim is to be a logistics hub for the whole area around the airport -- China, Japan and Southeast Asia." The airport, located on an island off South Korea's northwestern coast, opened in 2001 and won Skytrax World Airport of the Year awards in 2009 and 2012. It is owned by Incheon International Airport Corp., a government body under the country's transport ministry. While airports did not suffer as much as airlines from the pandemic-driven drop in passenger traffic, they nevertheless did record big losses due to their high fixed costs. The pandemic-related boom in e-commerce, however, came with increased shipments of food and electronics as consumers sought meals and entertainment at home. In 2021, Incheon International recorded a rise in cargo volume, handling 3.3m tonnes to rank second in the world after Hong Kong. Incheon's total volume that year marked an 18.6% increase from the previous year and was up 22.9% from 2019, the last year before the pandemic, according to Airports Council International. Movements at the facility -- about an hour's drive from central Seoul -- are consistent with changes at air hubs around the world, as operators brace for a future where air traffic volume is unpredictable. A February report by consultancy McKinsey said that airports ought to "consider new ways to diversify their revenue streams and sustain their operations for the long term."<br/>
