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Building Shenzhen Airport A National Airport-Based Logistics Hub in the New Situations

News2020/09/29

1.New Opportunities in the New Situations

(1)Supportive Policies: Armed with superior advantages of four overlapping areas, Shenzhen Airport was further bestowed with new missions in the national 14th Five-Year Plan. Lately, a whole pack of favorable policies have been enacted consecutively by GAC and the Ministry of Transport, supporting the development of air logistics industry.

(2)Industrial Backflow: In the context of China-US trade frictions, high-tech giants, like Huawei and ZTE, are actively adjusting their logistics plans and arrangements, increasing the business opportunities at the Shenzhen Airport. These situations are leading more high-tech industries back to Shenzhen.

(3)Expansion and Upgrade: Shenzhen World Convention & Exhibition Center, which is by far the largest in the world, has now opened up; Shenzhen Airport Phase-I expansion project, including the 3rd runway, No. 4 Terminal, the satellite halls, and the northern freight area construction, is also on its fast ring; the Qianhai Bonded Port in the immediate neighborhood has now been upgraded as an integrated bonded area.

(4)Recovering Trade: The Jan-to-Aug cargo throughput at Shenzhen International Airport grew by 23.9% YoY against the global downtrend. Exports of Covid-19 prevention supplies via Shenzhen Airport even outnumbered the total exports in Beijing, Shanghai and Guangzhou combined, amounting up to over 28 billion Yuan GDP. Recently, China Eastern Airlines, China Southern Airlines, and Ethiopian Airlines have increased their freight flights and opened new freight airlines.

2. Understanding Latest Customs Policies

(1) 30 New Measures to Stabilize Foreign Trade and Investments

On the basis of the 20 work-resumption measures and 20 supportive measures implemented earlier this year, Shenzhen Customs introduced 30 new measures to stabilize foreign trades and investments. Among these new measures, 7 measures are in favor of the development of Shenzhen Airport based air logistics, such as the supports to China-Europe freight trains, measures to stabilize international logistics chain, and measures to promote diversified customs clearance channels.

(2) Cooperation Framework Agreement between Shenzhen Customs and Baoan People’s Government

The Cooperation Framework Agreement is to support the Shenzhen Airport in four aspects: the upgrading of customs clearance services at Shenzhen World Convention & Exhibition Center, the construction of a distribution center of international express mails, the cooperation on airport-based integrated bonded area construction, and the joint efforts to promote airport economic development.

3. Integrated Development of Airport + Bonded Area + Convention and Exhibition

(1) One-Stop Clearance Service

Based on the ground infrastructures at Shenzhen Airport, one-stop clearance service combining audition, inspection and disposition is realized in accordance with the overall arrangements of Shenzhen Customs, so that the exhibition show pieces that are transported into and out of China are under centralized management and control at the airport. The customs clearance service featured by direct clearance, centralized audition and inspection will put the international convention and exhibition industries at a leading startpoint than competitors.

(2) Vibrant “Bonded Area + Exhibition” Business Model

Special efforts are to be made in supporting the “ Bonded Area + Exhibition” business in Shenzhen. Some new business model are made possible, for example the cargoes in Bonded Warehouse B of Shenzhen Airport are now allowed to be exhibited in a bonded status. E-commerce enterprises are encouraged to exhibit and promote their products; a Cross-Border E-Commerce Supported New Retailing model is being practiced and tested; a new logistics and deliver model that is featured by “Buy at Exhibition and Receive from Bonded Warehouse” is also promoted in order to facilitate the interactions between airports and exhibition centers.

4. Multimodal Transport

A virtual gate is established on the airport side, so that air-air freights are transferred directly on the parking apron. This helps Shenzhen Airport to defend its advantages of shortest transfer time among all major Chinese airports. Enterprises are supported to develop 6 land-air transportation models based on the “One Ticket For All” model. The air-rail transport model is able to link up all important nodes along the Shenzhen-Ganzhou-Duisburg railway. With the mature and abundant air transport resources, air transport and rail transport are organically integrated, in the forms of multimodal transport and regional circulation, which extends the start and destination of China-Europe Freight Train to Shenzhen Airport and thus expanding the radiation of its influences.

5. Regional Business Models

(1)FTA-Port

Efforts are made to facilitate the “Direct Through” clearance service for exported products, so that cargoes that arrive at Shenzhen Airport can be transported directly to Qianhai Customs for clearance service. Policies are made for the “Off-Airport Service Center” of Qianhai Customs to cover the Shenzhen Airport, so that cargoes are delivered under an integrated model to Shenzhen Airport for exportation. Policies are also made to support the Code 1210 model for cross-border E-commerce, so that cargoes may be transferred freely between the Bonded Warehouse B of Shenzhen Airport and Qianhai Integrated Bonded Area.

(2) Air-Marinetime

Expanding Air-Maritime interaction, building a complementary “Air-Maritime” Port logistics model. The Shenzhen Airport-Qianhai Customs clearance model is replicated and introduced to realize integrated actions and services between Shenzhen Airport and Yantian Bonded Area and to realize free transfer of cross-border E-commerce commodities under Code 1210. These actions and measures fully releases the profits of One-Stop clearance service model. 

(3) Air Bridge

To cope with the China-US trade friction, we worked together with the construction and operation authorities of Hainan FTP and local customs in Haikou and Sanya and related airline companies and opened up new two-way multimodal transport lines linking up Hainan, Shenzhen and Russia/Europe, so that international freight flights arriving and leaving Hainan can have the freight loaded/unloaded in Shenzhen. This remedies the shortfalls of transport capacity between Shenzhen and Russia/Europe, and allows Shenzhen Airport to share the benefits of Hainan FTA.

6. Airport Industrial Base

(1) Cold-Chain Fresh Commodity Distribution Base

Targeted at the opportunities of Covid-19 vaccines that are to be marketed at the end of 2020, we coordinated with Shenzhen Airport Group to work out advance plans for clearance, equipment acquisition, medicine qualification. We also contracted with Ethiopian Airlines to open new special vaccine flights to Africa and South America, making Shenzhen the “Covid-19 Vaccine Global Delivery Base”. Taking the chance of Shenzhen Airport being accepted by GAC as a designated meat product supervision branch, we supported the Shenzhen Airport Group in fully transform and upgrade its customs inspection and supervision sites for fruits, aquatic products and food products, and introduced some leading cold-chain logistics companies. Through these efforts, we are expecting to build a fresh product cold-chain distribution base with yearly throughput of 100K tons by the end of 2023, which will make Shenzhen Airport one of the top hub airports in cold-chain logistics.

(2) IC Delivery and Manufacturing Base

The western part of Shenzhen is especially famous for its IT and IC processing industries, covering nearly one tenth of the national GDP in this market. We worked out a personalized clearance services for these enterprises, including “dedicated inspection zone”, “dedicated cargo handling zone”, and “dedicated palletization zone”. We also launched some new measures, such as “visual inspection”, “port transfer”, “spot inspection” and “clearance service reservation” in order to provide more timely and improved services to high-tech manufacturing and technology industries represented by IC manufacturing. We are also planning to build a One-stop industrial base covering the inspection, maintenance, R&D, and manufacturing of IC products within the Airport Bonded Area.

(3) Pilot Base for Reformation of Export Customs Clearance

We coordinate with Shenzhen Airport Group to build a centralized palletization zone for export cargoes outside the control area, so that cargoes to be exported via air can be inspected and palletized outside the customs control area and that the delivery, weighing, inspection, reporting and palletization steps of cargoes are done outside the customs control area. When cargoes arrive at the supervision site, cargoes subject to examination and inspection will trigger related codes and instructions at the gate, while others will be loaded and exported directly. These measures help to create a superior instant clearance experience for exporters.

Also, on the basis of tests on export cargoes during the Covid-19 outbreak period, the customs is researching for establishing a virtual gate on the airport side, which allows cargoes get cleared in 24 hours in accordance with special regulations by GAC, so as to satisfy the needs of customs clearance during nighttime.