The Tianjin Binhai International Airport is set to become Northern China’s air cargo gateway for the greater Beijing area as cargo operations are gradually shifted out of the Beijing Capital International Airport (BCIA) in order for it to becomeprimarily a passenger hub.
The other key driver behind the Tianjin airport’s rapid ascent is the development of the 2,270 square kilometre Binhai New Area (BNA) which has been identified by the Chinese central government as the next growth engine for China. The area is expected to match the economic growth achieved by Shanghai’s Pudong New Area on China’s eastern seaboard, as well asSouth China’s Pearl River Delta area.
Some US$26 billion in foreign investment has already been poured into the BNA with some 4,000 global companies, mostly manufacturing like electronics, telecommunications and pharmaceutical companies – all of which use air freight – currently operating there. Another 10,000 domestic companies have also set up shop within the BNA. The pace of foreign investment is expected to pick up with government officials saying they anticipate another US$20 billion to be invested overthe next five years.
In order to support the economic growth of the area, the Binhai International Airport is being upgraded into a North China air hub including new passenger and cargo terminals and a second runway expected to be operational before end-2008. Passenger volume is expected to surge from 2.15 million in 2005 to 6.5 million in 2010 and cargo volumes are forecast to jump from 87,000 tonnes to over 450,000tonnes during the same period.
Lufthansa latest to set-up terminal
This potential has already attracted the attention of international cargo operators with the Tianjin AirCargo Terminal (TAT) being the latest to join the burgeoningcargo hub.
The TAT is a joint venture between Lufthansa Cargo (46 per cent), Taiwanese investor Hwa Hsia International Holding Ltd (49 per cent) and Tianjin Airport International Logistics Joint Stock Co Ltd(5 per cent).
“Tianjin will develop into the most importantairfreight hub in the north of China within the next few years,” Lufthansa Cargohead Carsten Spohr said in a statement.
He added that Lufthansa wants to participate in this economic boom and secure its leading position in the growth marketfor logistical services.
Lufthansa Cargo already holds a 29 per cent stake in Shanghai Pudong International Airport Cargo Terminal (PACTL), a 50 per cent stake in the International Cargo Centre Shenzhen (ICCS), as well as 25 per cent stake in air cargo carrier, JadeCargo International.
Speaking to Payload Asia, TAT managing director Ulrich Huesson said capacity at the 90,000 sq metre terminal, which is expected to begin operations shortly, will be 250,000 tonnes per year in the first phase development with a warehousecapacity of 22,000 sq metres.
Huesson has more than four years of experience working in China, first as project manager for the ICCS as it was being set up, and later in an operational role at the facility until shifting to Tianjin to overseeits start-up.
“It’s easier this time around,” he said, “it definitely helps that I have this experience from 4.5 years working in China. Most of the things we need to do in Tianjin aresame as we did in Shenzhen.
“Whenever there is a problem or challenge, I look back and see how we solved it in Shenzhen,” no point reinventing thewheel, he adds.
But the bureaucratic hurdles remain pretty much the same, he said. “China is very huge, you cannot compare differentlocations because it can be very different.
“The south of China and Shenzhen is much more modern than a city like Tianjin which is still quite traditional and conservative,” he said, adding that the government presence is much stronger inTianjin than Shenzhen.
“The regulations are same in every location, but how the authorities interpret and implement them can be quite different,”Huesson said.
Enough cargo to go around
Huesson said the TAT is not concerned over the fact two other cargo terminals will also be operating at the airport, saying: “For us even though we see there is competitionwe still think there is potential for all.”
“This competition can be a positive influence on the development of the whole area, as airlines which are interested in operating from Tianjin have a choice of handling companies. This will make this airport more attractive as a whole,” headded.
Korean Air – which has been operating at the Tianjin airport for nearly 10 years – announced in December that it had formed a joint venture with Sinotrans Air Transportation Development to build a US$43.9 million terminal there. It will be 47 per cent controlled by Korean Air and20 per cent held by Sinotrans Air.
Air China Cargo also operates a terminalat the Tianjin airport.
Meanwhile, the Binhai International Airport saw its first cargo service to Europe with a B747-400 freighter belonging to Great Wall Airlines making its maiden flight to Amsterdam on 27 March. The new service provides three flights to Amsterdam and two flights to Manchester viaAmsterdam each week.