Hong Kong’s position as a cargo gateway is evolving, not eroding, and nowhere is that more evident than in the transhipment corridors linking Southeast Asia with Europe and the Middle East. As traditional trade lanes contract and regional supply chains diversify, Hong Kong Air Cargo Terminals Ltd (Hactl) is quietly consolidating its role as a high-efficiency hub by investing in automation, smart systems, and incremental process refinement.
While volumes on the Hong Kong–US route have dropped significantly, driven by tariff shifts and tightening de minimis exemptions, Wilson Kwong, Hactl’s Chief Executive, notes that other lanes are gaining strength. “Conversely, trade lanes such as Hong Kong–Europe, Hong Kong–Middle East have demonstrated a notable increase, reflecting supply chain diversification,” he said.
Transshipment, tail-to-tail and the iHCC edge
A large proportion of that cargo is transhipment – long-haul freight moving via Hong Kong to and from Southeast Asian origins. Hactl has built its handling model around this flow pattern, with systems tailored to shorten turnaround and avoid unnecessary handling.
“For Hong Kong in general, and Hactl in particular, both have long been recognised as an entrepôt between Southeast Asia and the world as a whole,” Kwong said. “We have systems in place to facilitate tail-to-tail transfers so that particular cargo doesn’t flow through the terminal.” For freight that does enter the facility, operations are tightly choreographed via the company’s integrated Hactl Control Centre (iHCC), which manages all movements in real time across the SuperTerminal 1 complex.
The result is a model built for scale — but increasingly also for responsiveness. Transhipment through Hong Kong remains sensitive to minor inefficiencies, especially when connecting regional and intercontinental flights. Hactl is responding not with sweeping structural changes, but with continuous refinements.
Automation without the hype
Hactl’s approach to innovation is refreshingly understated. “Overall, it’s not so much a matter of major innovations in recent times,” Kwong said. “It’s an ongoing process of constantly refining and finessing the operations that we have.”
That said, the upgrades are not minor. Hactl recently completed a full refurbishment of its import and export zones to reduce bottlenecks in document handling and pre-arrival processes. Meanwhile, the company has rolled out Hong Kong’s first private 5G network-enabled air cargo terminal in partnership with a telecom provider — a move that underpins the next phase of automation.
The low-latency, high-speed speed and secured connectivity of the infrastructure is designed to support Autonomous Electric Tractors (AETs), AI-powered security robots, and smart warehouse automation systems. These tools form the “digital backbone” of future operations, enabling real-time inventory optimisation and reducing dwell times.
Mobile computing has also been introduced across the ramp and warehouse floor. “Now, everybody is connected wherever they are in the business, on the ramp or in the warehouse,” Kwong explained. “This makes us extremely efficient… and has cut down dramatically the amount of travel by ramp vehicles.”
Sustainability through systems
While many handlers treat ESG as a parallel workstream, Hactl sees it as part of the same operational equation. Efficiency upgrades are measured not just by speed or cost, but also by carbon impact. The digitalised ramp loading system, for example, improves transparency and reliability while reducing vehicle movement, paper processes, and unnecessary energy consumption.
“Sustainability is simply in our DNA,” Kwong said. “Incorporating those responsibilities into our operations is good business.”
That ethos is backed by targets: Hactl has committed to reducing absolute Scope 1, 2, and 3 emissions by 50.4 percent by 2030 from a 2018 baseline, a goal validated by the Science Based Targets initiative (SBTi). The company’s Green Terminal Programme, launched in 2018, continues to evolve with new projects, including biodiesel adoption in ground support equipment and creative zero-waste upcycling of old uniforms into reusable items for staff and the airport community.
Looking forward: building space, freeing slots
Looking ahead, Hactl is betting that the return of freighter slot flexibility – following the completion of Hong Kong International Airport’s third runway – will unlock the next phase of cargo growth. “That glass ceiling has now been removed and therefore the airport can grow and we can grow with it,” Kwong said.
