The largest airport in China opened in Guangzhou yesterday, establishing a giant freight and passenger hub in the country's manufacturing heartland to rival Hong Kong.
Baiyun International Airport in the capital of Guangdong Province -- an area dubbed the factory of the world which is responsible for over a third of China's exports -- can handle 25 million passengers and 1 million tonnes of cargo a year.
PHOTO: REUTERS
When an expected third runway comes online in 2010, those figures will rise to 80 million passengers and 2.5 million tonnes of cargo.
The 19 billion yuan (US$2.4 billion), 15km2 airport is poised to become a major player in the regional aviation market, most notably at the expense of neighboring Hong Kong International Airport.
While the territory's 1998-opened Chek Lap Kok airport handles more freight than any other in the world, observers believe Baiyun's state-of-the art facilities in the center of China's manufacturing engine would rob it of vital trade.
The chief executive of the Hong Kong Airport Authority, David Pang, admitted as much recently when he said: "The two airports are overlapping in markets and both will engage in competition for passengers and cargo transport."
Booming Guangdong Province has been waiting for years to replace its existing airport, watching while rival such as Beijing and Shanghai received major upgrades.
The new airport is China's largest, capable during peak hours of handling 9,300 passengers and 67 take-offs and landings per hour.
But given its vast potential, it is no surprise the new airport is causing headaches for industry officials in Hong Kong, which is little more than 100km away.
Some 80 percent of all freight handled at Chek Lap Kok comes from Guangdong, accounting for more than a quarter of the city's external trade value.
Sunny Ho, executive director of Hong Kong Shippers' Council, said Hong Kong would face enormous challenges should the huge US logistics companies, like United Parcel Service and FedEx, choose Guangzhou as their Asian hub.
"UPS and FedEx have their own marketing teams, distribution setup systems and their own crew. So it would be very easy for them to leave Hong Kong for Guangzhou if they wanted to," Ho said. "Could Hong Kong be their only choice? It would be impossible."
In addition, with a new bilateral aviation agreement between the US and China signed last week, US companies will be able to establish operations in China for the first time. The deal will double the number of airlines flying between the two countries, allowing a nearly five-fold increase in passenger and cargo flights in the next six years.
FedEx has made no secret of its intentions to expand into China and will be adding new flights to new destinations from the current 11 a week. The company signed a deal last December to explore growth opportunities in Guangdong, which generates a third of China's exports.
Rival UPS, which has seen double-digit Chinese growth in the past three years, has plans to expand its Guangzhou services and aims to set up its regional hub there.
"China is not an option. It's a must," said Leung Kwok-kee, UPS' general manager for Hong Kong and Macau.
"Look at its economic growth. The GDP growth in southern China is 12 to 13 percent and its export/import growth rate is at nearly 20 percent. Hong Kong alone is not capable of supporting its growth," he said."There is a need to be there [Guangzhou]."
Chek Lap Kok, which handles 35 million passengers and 3 million tonnes of cargo per year, still has the advantage as China's aviation infrastructure modernizes. Nontheless it has been forced to respond, offering reductions on landing fees for airlines flying to new cities.
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
Taiwan was ranked the fourth-safest country in the world with a score of 82.9, trailing only Andorra, the United Arab Emirates and Qatar in Numbeo’s Safety Index by Country report. Taiwan’s score improved by 0.1 points compared with last year’s mid-year report, which had Taiwan fourth with a score of 82.8. However, both scores were lower than in last year’s first review, when Taiwan scored 83.3, and are a long way from when Taiwan was named the second-safest country in the world in 2021, scoring 84.8. Taiwan ranked higher than Singapore in ninth with a score of 77.4 and Japan in 10th with
SECURITY RISK: If there is a conflict between China and Taiwan, ‘there would likely be significant consequences to global economic and security interests,’ it said China remains the top military and cyber threat to the US and continues to make progress on capabilities to seize Taiwan, a report by US intelligence agencies said on Tuesday. The report provides an overview of the “collective insights” of top US intelligence agencies about the security threats to the US posed by foreign nations and criminal organizations. In its Annual Threat Assessment, the agencies divided threats facing the US into two broad categories, “nonstate transnational criminals and terrorists” and “major state actors,” with China, Russia, Iran and North Korea named. Of those countries, “China presents the most comprehensive and robust military threat
RSS