Building A Vibrant Air Cargo Hub

at Singapore Changi Airport

30 October 2012

Presented By:

James Fong

Assistant Vice President

Cargo and Logistics Development

Contents

• Quick intro & Brief History of Changi Airport

• Changi Airport Air Cargo Traffic

• Key Contributing Factors in Building Changi Airport as a

Cargo Hub

Corporatisation of Changi Airport in 2009 has enabled the

group to be more focus and responsive to our partner’s

needs; The roles of CAG and CAAS…

• Manages and operates Changi Airport and Seletar Airport

• Airport operations and management

• Air hub development (e.g. promoting to airlines)

• Commercial activities • Airport emergency services • Investments in foreign airports

(under subsidiary Changi Airports International)

• Industry regulator • Safety oversight and promotion

e.g. pilot licensing and certification • Air hub development (e.g. air

services negotiations) • Air navigation services provider • Singapore Aviation Academy

Location of Singapore

Location of Changi Airport – East of Singapore; Takeoff and Approach to/from the sea

1980 1985 1990 1995 2000 2012 2005 2010

(1981)

Official Opening of Changi

Airport

(1975)

Decision to develop

Changi Airport to replace

Paya Lebar Airport

1975

(1985)

Opening of the Changi

Airfreight Center

•3million tonnes capacity

•470,000 m2

•9 terminals

(2010)

Official Opening of SATS

Coolport@Changi

(2012)

Official Opening of Fedex

Air Cargo Express (ACE)

Hub

(2003)

Official Opening of Airport

Logistics Park of

Singapore (ALPS)

Key Cargo Milestones in Changi Airport

Masterplan of Changi Airfreight Centre

DHL South Asia

Hub

TNT Regional

Hub

SingPost Airmail Transit Centre

DNATA Cargo Terminal

Singapore

FreePort

4 blocks of Cargo Agent Buildings and MegaPlex

1

3 4

2 1

2

7 6 5

3 4

5 5

6

7 South of CAC

24 Hour

Free Trade Zone

12 freighter bays

Approx. 20km or

30 mins to

seaport

8

SATS

Coolport@Changi

Changi Airport :

Year to Date Cargo Performance

9

Some Statistics

Singapore’s air cargo tonnage grew rapidly in 1980s-1990s; Growth slowed down in last 10 years due to changes in technology and Singapore’s economy

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

1981 1991 2001 2011

Cargo

tonnage

Changi’s connectivity at a glance…

6,267

106

231

58

Flights operate every week

Scheduled airlines*

Cities connected to Changi*

Freighter city links

Data as at 1 Sep 2012

* Including codeshares

1.20 Million tonnes of airfreight in first

8 months of 2012

11

64 Country links*

Strong interline opportunities to Changi’s catchment markets of 45 cities in

Southeast Asia, 15 in South Asia, and 10 in South West Pacific

NW11/12

No. Of Pax Flights 462

No. Of Freighter

Flights 19

No. Of Airlines 16

SIN-SOUTH ASIA

NW11/12

No. Of Pax Flights 2626

No. Of Freighter

Flights 148

No. Of Airlines 48

SIN-SOUTHEAST ASIA

NW11/12

No. Of Pax Flights 454

No. Of Freighter

Flights 20

No. Of Airlines 12

SIN-SOUTHWEST PACIFIC

NW11/12: Northern Winter season (October 2011-March 2012)

Operators offering feeder services to

South East Asian destinations

Singapore

Russia

Good potential to tap on growing trade

between Singapore – Russia, and S.E Asia -

Russia

Changi is gateway to S.E. Asia, but has no freighter connectivity to Russia

Opportunities in the growing trade between Russia, Singapore & S.E. Asia

Trade between S.E. Asia and Russia

79

110 117

100 101

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011

Со

тни

Trade between Singapore and Russia (Jan – Aug)

China

Source: Seabury Data

10

16 19

0

5

10

15

20

Jan - Aug 2010 Jan - Aug 2011 Jan - Aug 2012

Со

тни

Source: CAG Data Competency Centre

Key contributing factors in building

Singapore as a Cargo Hub

15

Multi-Agency and Partnership Approach

Government

Agencies

Airport & Trade

Association

Airlines

22% Manufacturing

12%

Financial

Services 14%

Business

Services

12%

Construction

Transport &

Communications

5%

Wholesale &

Retail Trade

17%

Others 18%

2010GDP:

S$304 billion (US$223 billion)

2010 Total output in

Manufacturing Sector:

S$270 billion (US$198 billion)

35% Electronics

29% Biomedical

Manufacturing

Chemicals

9%

Precision

Engineering 10%

General Manufacturing

Industries

8%

Transport

Engineering

9%

Growth of Manufacturing Output in 2010: + 30% Source: Singapore Economic Development Board.

A Strong Logistics Ecosystem is needed to support the growing

manufacturing sector in Singapore Generating airfreight demand for Origin / Destination cargo movements

Singapore’s connectivity to the world - Gateway to Southeast Asia and Southwest Pacific

Large base of world class logistics service provides in Singapore

Asia /M.E

19

SATS Coolport@Changi, a 8,000 sqm on-airport facility dedicated perishables handling facility with multi-tiered zones with temperatures ranging from -28°C to 18°C, offers

new market opportunities for logistic players looking to tap into the cool chain business.

The latest cargo facility is the new Fedex Air Cargo Express (ACE) Hub, which is the first of its kind air cargo facility in the region focusing on express cargo. Operating 24/7, The facility boast special on-site facilitation by Immigration and Checkpoints Authority and Singapore Customs

Singapore Freeport is 22,000 sqm facility fitted with cutting edge, high security storage system for high values collectibles such as fine art, precious metals and high end wine. The facility has 24/7

direct airside access to Singapore’s Free-Trade Zone.

Tapping on New Cargo Segments:

In addition to diversifying their cargo base,

ChangiAirport continues to work with its business

partners to target new cargo segments. Some

examples include perishables, valuable cargo and

express cargo

Working with Business Partners to continuously invest in new

handling capabilities to meet customers’ needs

Efficiency of Logistics infrastructure and services

Source: World Bank 2012

21

Singapore Ranks 1st in the 2012

Logistics Performance Index (LPI)

Ensuring competitive cargo handling standards

Performance of Ground Handlers are measured:

Performance Standards Target

Cargo documents available within 90%

2 hours of passenger aircraft arrival

Cargo documents available within 90%

4 hours of freighter aircraft arrival

Cargo available within 3.5 hours of 90%

passenger aircraft arrival

Cargo available within 5.5 hours of 90%

freighter aircraft arrival

Trade facilitation through the use of IT systems

Launched in October 2007, TradeXchange® provides

seamless inter-connectivity to government controlling

bodies (B2G) and business partners (B2B) for easy

preparation and submissions of trade documents

Benefits for Logistics Providers,

Importers and Exporters

•Single interface to multiple systems

•Minimum data re-entry and hence

reduced errors

•Faster trade documentation

processing

•Improved efficiency

E-freight @ Singapore

IATA e-freight goal: Replace paper documentations with electronic messaging

standards, to realize paper-free vision in air freight flow

e-freight@Singapore started in 2010

Leverage IATA electronic messaging standards to capture data@source and for data

re-use

Promote adoption of paperless freight documentation

Ensure local air cargo and logistics industry remains competitive and increases

productivity

• Establish SMEs’ current IT capabilities

• Identify and close gaps

• Current status: Survey completed

1. Air Cargo Agents’ IT Readiness Survey

• Demonstrate costs & benefits of e-freight@Singapore

• Current status: Study completed

2. Air Freight Process Productivity Study (AFPPS)

• Engage industry for sustainable solutions

• Private-sector led innovation

• Current status: Awarded funding to 3 consortia leads in Feb 2012. Solution development in progress

3. Implementation Plan / Call-for-Collaboration (CFC)

• Engage industry to build interest

• Current status: Ongoing

4. Industry Outreach & Engagement

4 Programme Tracks in E-freight @ Singapore

28

THANK YOU