As many participants at a panel discussion held recently in Munich wondered what attributes exactly defined the "logistics hub of the future", a verbal exchange ensued, much to the amusement of the audience, bet-ween Ram Menen, Emirates Skycargo's divisional senior vice- president, and Lilian Chan, general manager (marketing and cus-tomer service), at Hong Kong Air Cargo Terminals Ltd (Hactl) with each staking claims for Dubai and Hong Kong as the future logistics hub respectively.
Menen, who said Dubai was the centre of the universe, highlighted the strategic location of the emirate both in the waterways and skyways that connect Asia with the West, with easy access to a huge market of some two billion consumers. He was, obviously, referring to the Indian subcontinent where Emirates Skycargo enjoys a strong position, along with other regions such as Middle East, Africa and Commonwealth of Independent States in Eastern Europe.
But Chan, who spoke after Menen, pointed out Hong Kong's strong position and easy access to an even larger market, by which she meant the Greater China region and other markets within easy reach of Hong Kong.
Menen predicted that a debate was going to flare up on the question of globalisation and airports such as Atlanta or, for that matter, even JFK New York and Chicago could be potential hubs. "There will be multiple hubs," he added.
Hong Kong will be "China's gateway" and the "hub of the world", Chan said. "Seven of the world's ten major markets are located in Asia. The Yangtze River Delta and the Pearl River Delta regions contribute to some 90 percent of China's external trade and 60 percent of the PRD's trade or about four million tonnes that are handled by Hactl."
Menen told Cargonews Asia later that the Middle East region had been affected by the global economic crisis but that the decline had not been so steep as in other parts of the world. "I believe the Middle East will weather this crisis because oil prices are rising again," he said.
Emirates Skycargo, which presently operates eight freighters, has another eight freighters on order, with options on a further nine.
The airline's new generation Boeing freighter arrived recently in Dubai after completing its inaugural commercial flight from Hong Kong, one of the carrier's strongest cargo routes.
Menen said Emirates Skycargo, which transported some 1.3 million tonnes in the 2007/08 fiscal year, expected a decline of 20 percent in the current fiscal year because of the global economic downturn.
But Menen said that Emirates Skycargo expected a recovery in its cargo volume in the final quarter of 2009.
The cargo business, he said, faced problems after three years of robust growth. The drop in volume was particularly conspicuous in November and December of 2008, coinciding with the drop in business experienced by the global automotive industry. Emirates Skycargo does not transport vehicles, but moves automotive components.
Some 65 percent of Emirates cargo is transported in the belly of passenger planes and the rest in freighters. Cargo contributed some 19 percent of the airline's revenues during the 2007-08 fiscal year.
Chan told Cargonews Asia Hactl is investing over US$1 billion in its Super Terminal-1 to keep itself fit in the increasingly competitive environment and create a strong infrastructure for the global cargo community.
A surprise third candidate claiming to become the future No. 1 hub at the panel discussion was Panama in Central America. Staking Panama's claim was Ingo-Alexander Rahn, vice-president for route management and Euro-Asia at DHL Global Forwarding.
According to Rahn, Panama's attraction comes in the form of the Colon Free Zone with a cluster of more than 2,500 companies operating in an area of 450 hectares.
He pointed out that Colon was the world's second biggest free zone after Hong Kong. "It has a strategic geographical location coupled with the best, most efficient and fastest distribution facilities in the Americas. The Colon zone is also served by five major ports in the region.''
While the audience, comprising government officials, representatives of airports, cargo carriers and the media, listened patiently to the views expressed by each of the speakers, the general consensus was that each site had its advantages and disadvantages, looking from the perspective of their respective geographical location. However, they also agreed that as competition gets fiercer in the future, each site will try to sharpen its edges and make a strong bid to capture a greater share of the markets within its reach.
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