The research of how e-business

improves
Hong Kong freight industry
operations

Integrante : Diego Pereira

Profesor
:
Jorge
Bravo

Agenda

Introduction
E-Business in freight Industry
Methodology
Results
E-Freight improves operations
Conclusions

Introduction
Hong Kong has the largest and
busiest container port and air port
of the world.
Logistics services sector accounts
for 24.8% of Hong Kongs GDP
(Gross Domestic Product).
In 2006 Hong Kongs port handled
23.234 TEUs, second only to
Singapores port.

Introduction
On the other hand, The cargo throughput
growth rates of the Hong Kong
International Airport (HKIA) from 2006 to
2008 were +5.3%, +4.5% and -3%
respectively. The HKIA's cargo handling
capacity will be more than 6.6 million
tonnes per annum upon completion of
the new cargo terminal to be finished no
later than mid 2013.

E-Business in Freight
Industry
Theres lot of potential for growth for
the freight industry to be gained from
e-business.

Methodology

Qualitative research and interviews were

conducted with specialist in order to gain
better understanding of the subject. In
depth interviews with several experts and
top management from the Hong Kong
International Airport (HKIA) were held and
they were required to share how would
they improve logistics by implementing ebusiness.

Results
To make use of CEPA (Closer Economic
Partnership Arrangement) effectively and
efficiently.
Logistics companies in Hong Kong
should adapt and understand the ebusiness and operation environment in
China.
Simplify the registration system in
mainland China and provide "one-stop
registration
service
with
the
implementation of e-business systems to
companies in Hong Kong.

Results
The role of freight terminal should be
developed to provide "one-stop" services
which
including:
integrating
transportation,
distribution,
customs
clearance, warehousing and reporting.
The construction of a third runway in the
Hong Kong International Airport is urgently
needed.
Take the paper out of the air cargo
supply chain through the implementation
of an e-business solution.

E-Freight improves
operations
In 2004, lATA launched e-freight, designed

to eliminate the need to produce and transport

paper documents for air cargo.
E-Freight could be summarized as "e-ticket

+ e-passport" for customers who can't walk or

talk.

E-Freight improves
operations
After implementing e-freight system, 5060% of the paper in volume can be saved
immediately. That means at least 13
documents could be removed from
original
operational
process.
Some
examples are:

Invoice
Packing List
Certificate of Origin
Custom Release Export
Custom Release Import

E-Freight improves
operations
If the global freight forwarding
indsutry embraces the concept of an
electronic documentation process.
Per the IATA e-freight initiative,
estimated savings of 1.2 billion a
year could be realized.

Conclusions
Hong Kong can achive higher efficency
and concise customs clearence system
through closer cooperation with mainland
China.
By matching both hardware and software,
the freight industry can further develop
and seize the new opportunities from the
reform being made in mainland China.

Thanks