Incheon International Airport is adding a new logistics center as well as facilities for handling perishable cargo, in a move to build the airport into a major logistics hub for Northeast Asia.
The Ministry of Land, Infrastructure and Transport announced measures to strengthen the competitive edge of Incheon International Airport, Wednesday. It comes amid unfavorable circumstances in the air logistics industry where demand continues to stagnate while competitors in China and the Middle East are expanding their airport infrastructures.
The industry is also seeing a new trend, with traditional cargo such as electric and electronic goods switching from airliners to shippers for lower fares while perishable cargo is increasingly purchased through e-commerce, leading to the growth of door-to-door delivery services.
To cope with the changes and get the upper hand, Incheon International Airport will build facilities dedicated to handling perishable cargo such as food and drugs, investing 10 billion won in the project. Equipped with refrigeration facilities, it will begin operation in September 2018.
A new logistics center, 410,000 square meters in total area, will also be constructed. The 41.1 billion won project will begin in July 2018. According to the ministry, there is enough demand for a new logistics center, with a dozen businesses hoping to establish their logistics bases at the airport.
“The annual cargo handling at Incheon International Airport will expand to 3 million tons by 2020,” said an official in charge of the aviation industry at the ministry. “It will secure its position as the world’s second-biggest cargo airport.”