Hactl’s Nansha depot opens new China e-commerce channel

Hactl’s Nansha depot opens new China e-commerce channel

HONG KONG — The logistics arm of Hong Kong air cargo terminal, Hactl, has opened a depot in the Pearl River Delta city of Nansha that will target China’s fast growing e-commerce business.

Hacis Nansha depot, in southern Guangzhou, is the seventh inland cargo depot to be opened by Hong Kong Air Cargo Industry Services as part of its SuperLink China Direct service.

Hacis managing director, Vivien Lau said Chinese consumers were increasingly seeking overseas commodities such as healthcare products and foodstuffs, and were ordering online.
“As the e-commerce market matures and becomes more price-driven, fulfilment is moving closer to the market to achieve economies of scale and cost reductions in logistics,” she said.

The depot will provide express road feeder service for both general cargo and cross-border e-commerce cargo, supporting both business-to-business and business-to-consumer business models, with simplified customs declaration and clearance. Air cargo arriving in Hong Kong will be trucked in bond to Nansha in three hours.
China is the world’s largest express delivery market, with 38 million parcels arriving on doorsteps every day in 2014, Goldman Sachs wrote in a report covering the mainland logistics market. The bank analysts said this was 27 percent higher than in the US (30 million parcels) and has continued to grow, up 47 percent year-over-year from January through October.

“The lion’s share of these parcels start life with the click of a mouse — a full 70 percent being derived via e-commerce. We forecast 139 million parcels will be delivered each day in China by 2020 (37 per person per year) with e-commerce increasing its share to 80 percent of volumes and growth being driven predominantly by demand in lower-tier cities,” the report noted.

Located in Guangdong Free Trade Zone, the Hacis Nansha depot is set up to support the region’s e-commerce logistics, Hacis said in a statement. Several trial runs have been carried out and the company proclaimed them to have been a success.

“Hong Kong has the global air services needed by this growing business, and Hacis’ opportunity is to provide reliable and highly-cost-efficient onward connections to the new generation of e-commerce fulfilment centers in China,” Lau said.
“Nansha’s proximity to Hong Kong creates huge business potential and an ideal partnership; Nansha has the additional land that the Hong Kong logistics industry needs, and Hong Kong provides expertise in modern logistics.”

Nansha became China’s sixth state-level “new area” in 2012, and is receiving national support through a series of preferential policies and reforms covering tax policy, land management, financial innovation and industrial development. It is now one of the eight pilot cross-border e-commerce zones approved by Beijing.
Customs procedures in Nansha have been simplified and cater to to the particular needs of cross-border e-commerce, with 24/7 clearance. Cargo arriving at the Nansha bonded area can be handled at piece level; imported goods are temporarily stored in the bonded warehouse and then delivered to individual customers in response to online orders.

Imported e-commerce cargo, when leaving the bonded area, is required to pay only the luggage and postal item tax, as opposed to those levies which apply to general cargo, such as value-added tax and consumption tax.

Contact Greg Knowler at greg.knowler@ihs.com and follow him on Twitter: @greg_knowler.