On the morning of July 17th, an SF Airlines 767-300 freighter took off at the Ezhou Huahu Airport (EHU) and headed to Shenzhen Baoan Airport (SZX) with SF Express cargo onboard. This indicates the official enter-into-operation for the newly founded Ezhou airport.
“Professional cargo airport”
Chinese media reported the Ezhou Airport to be “the world’s fourth and Asia’s first professional cargo airport,” instead of the usually used term “cargo hub.”
It is also announced at the opening ceremony that the Ezhou Huahu Airport will launch approximately ten international and 50 domestic cargo routes, and reach a cargo handling capacity of 2.45 million tons by 2025.
The aerial view of Ezhou Huahu Airport, with the well-known Yangtze River could be seen in the distance. Photo: Ezhou Huahu Airport
However, the projected cargo handling capacity is less than the numbers of Hongkong International Airport (HKG), Shanghai Pudong International Airport (PVG), Ted Stevens Anchorage International Airport (ANC), and Incheon International Airport (ICN) last year. So why does the media call it Asia’s first and the world’s fourth?
The key word is “professional.” The freight business will be the core business of the Ezhou Huahu Airport, and, equally important, it will be the base of an air cargo giant, in this case, SF Express.
Following this idea, the other three world’s “professional cargo airports,” in Chinese media’s view, would be Memphis International Airport (MEM) for FedEx, Louisville Muhammad Ali International Airport (SDF) for UPS, and Leipzig/Halle Airport (LEG) for DHL.
The FedEx cargo fleet in its cargo base, Memphis International Airport. Photo: Simple Flying
Having a base airport is a prerequisite for air cargo giants. Besides the convenience of playing a “home game,” the most significant advantage of having a base airport is its various supporting facilities, making it the logistics core of the air cargo giants.
SF Airlines’ ambition
SF Express was founded in 1993. After over a decade’s development, it decided to establish its own fleet, SF Airlines, in 2009. The first cargo aircraft in its fleet is a Boeing 757-200 freighter, which previously flew for China Southern for 20 years.
The Boeing 757-200 freighter is the dominant aircraft type of SF airlines’ fleet. Photo: SF airlines
For the next five years, SF Express, which insisted on a direct management organization, kept losing market share because the internet-based technique benefits other delivery companies, which applies to the franchise organization.
But in 2014, SF Express, in low profile, decided to begin its selection for a cargo hub site, and it announced that it planned to go public for the capital needed in February 2016.
History always repeats itself. It took FedEx seven years from starting its aviation business in 1971 to go public in 1978. Four decades later, SF Express also took seven years to go through the same process.
Two months after SF Express’ announcement, CAAC, China’s aviation regulator, approved the plan for building a cargo hub airport in Hubei Province (at that time, the exact airport location was not yet determined to be Ezhou).
By October 2016, SF Airlines ceased its small cargo aircraft (payload less than 15 tons) introduction plan. From that time, SF Airlines only brought large freighters into its fleet.
SF airlines now owns an all-Boeing freighter fleet of 87 cargo aircraft. Photo: SF airlines
With the capital raised from the share market, SF Express invested 2.5 billion yuan (370 million US dollars) in Ezhou Huahu Airport and another shocking 11.5 billion yuan (1.7 billion US dollars) in the airport cargo distribution center.
The Ezhou Huahu Airport is the first airport in China in which private enterprise/capital is allowed to participate. SF Holding, the mother company of SF Express, now holds 46% of the airport shares.
Until this day, SF Airlines owns an all-Boeing freighter fleet of 87 cargo aircraft. The 35 Boeing 757-200 freighter is still the dominant aircraft type.
What do you think of the future of this “Memphis of China”? Is the success of FedEx or UPS replicable in China? Please share your thoughts with us.