Continuous investments with the best connectivity
and expandability for customer success
As of September 2021, Incheon International Airport Cargo connects 113 cities in 45 countries through 25 airlines. It connects the world, 365 days a year, including 22 in China, five in Japan, 11 in Southeast Asia, 25 in North America, four in Latin America, 20 in Europe, and seven in Russia.
As of October 2021, Incheon International Airport has air cargo infrastructures that can handle 3.72 million tons of air cargo per year. With the increasing demand for import and export cargo, express and perishable cargo, it will handle 6.3 million tons annually through the construction and introduction of new cargo terminals and express terminals.
AACT, a global cargo company, has started operating a new cargo terminal in addition to the existing Atlas Air cargo terminal.
DHL, a global international express shipping company, will invest around 75 billion Korean won by 2022 to triple the size of its DHL cargo terminal at Incheon International Airport. When the DHL Incheon hub expansion is complete, the units of express cargo handling per hour is expected to increase by 160% from 8,100 units to 21,000 units. Moreover, latest automated cargo facilities are expected to significantly reduce the processing time of import and export cargo.
The DHL cargo terminal at Incheon International Airport will play a pivotal role in the transportation of express cargo connecting the North Pacific region, the Americas, and Europe. Created under a custom build-to-suit development program the new expanded FedEx cargo terminal, is expected to handle air cargo volume of more than 170,000 tons per year.
Incheon International Airport aims to integrate Korea, China, and Japan into one cargo market by establishing a multimodal transportation system to connect Incheon port and Busan port. Incheon Port currently has departures 89 times a week with 192 ships deployed by 38 shipping companies. The airport effectively connects the entire East Asia region with 31 routes to Northeast Asia, including Japan and China, and 32 routes to Southeast Asia, including Vietnam and Singapore. In particular, the Road Feeder Service (RFS) is in preparation for the direct transportation of Chinese e-commerce goods to Incheon International Airport through the deployment of Korean transportation vehicles in China, which can significantly reduce transportation costs and time compared to the existing sea & air operation.
The 99.2 ha. phase one Airport LogisPark and expanded 65.1 ha. Phase two Airport LogisPark have 40 leading domestic and foreign cargo companies that have already moved in or plan to start operations. The move-in business models are diverse, spanning from international freight brokerages, sea & air multimodal transporters, known shippers, consolidators, and a Global Distribution Center (GDC). On top of these business models, the airport plans to attract additional new types of cargo businesses (e-commerce, pharmaceuticals, etc.) to sustain a regular flow of cargo volume and contribute to a higher economic value. One success case is iHerb, a global healthcare e-commerce platform. iHerb’s 33,000 ㎡ state-of-the-art pan-Asia logistics center is the scale of four soccer fields, and employs around 300 workers while contributing around 100 billion Korean won to the local economy. Despite the prolonged COVID-19 crisis, Airport LogisPark cargo volume has continued to increase by 18% annually over the past five years. In 2021, it has succeeded in driving more cargo volume by attracting the nation's largest air-consolidator in Korea and the best cargo company specialized in e-commerce, express cargo, and multimodal transportation in China.
In response to the paradigm shift in the air cargo market, a second Airport LogisPark has been developed with a total of 20 lots on a site of 32.6 ha. to establish grounds to continuously attract global air cargo companies. The second Airport LogisPark is developing three business verticals: new growth cargo business for medium to small business investments, and pharmaceuticals and transshipment cargo, GDC business, and social value business. The second Airport LogisPark has been designated as a free economic zone, Free Trade Zone and has a business-friendly investment environment such as incentives and tax cuts based on the amount of investment. In addition, investment promotion is underway mainly for anchor companies with future-oriented business models in response to digital transformation in the air cargo industry.
