The Singapore Aircargo Agents Association - FAPAA

The Singapore Aircargo Agents Association
COUNTRY REPORT
To be presented at the 33 rd FAPAA Executive Council Meeting on 08 th – 10 th June 2006
The Singapore Aircargo Agents Association managed by an Executive Council
(Appendix I) is situated in Changi Airport. The airport is a major global air cargo hub and is
well-positioned in the airfreight industry and has excellent Capacity, Connectivity, Capabilities
and Efficiency.
Capacity
Changi Airfreight Centre (CAC), Singapore Changi Airport handled 1.64 million tones of
cargo in 2002 and 1.61 million tones of cargo in 2003. In 2003, Changi Airport ranked as
the 10 th busiest airport in the world in terms of cargo handled. In 2004, it handled 1.78
million tones and 2005, 1.83 million tones.
Connectivity
Changi Airport is currently linked to 179 cities in 57 countries through more than 4,000
weekly scheduled flights served by more than 80 international airlines (Dec 2005 figures).
In 2005, new airlines flying into Singapore include Kuwait Airways, Jet Airways, Air Sahara,
PT. Adam, Myanmar Airways, Yangtze River Express.
Capabilities
Changi Airport is renowned in the airfreight industry for the high level of service and
efficiency.
Efficiency
Within the Free Trade Zone (FTZ), cargo can be moved, consolidated, stored, broken down
and repacked with minimum customs formalities. Hence, customs and clearance can be
completed within 13 minutes. Changi Airport’s efficient operation enables cargo to be ready
for collection by consignees within the CAC four to six hours after the cargo has been
unloaded from the aircraft. Express cargo, on the other hand, can be delivered to
consignees in the CAC within an hour of aircraft arrival.
Information Technology
Singapore Changi Airport leverages extensively on information Technology (IT) to provide
timely, accurate and visible information leading to speedier flow of goods.
Current IT platforms in use at Changi Airport are Singapore Changi Airport Freighter Flight
Planner, Singapore Changi Airport Freighter Flights Schedule, CIAS iCargoNet and SATS
Cargo System, TradeNet, SPECTRUM, Air Cargo EDI System (ACES), Advance
Clearance for Courier and Express Shipments System (ACCESS) and Electronic Payment
and Invoicing for Cargo (EPIC) System.
Security – RCAR
To provide a secure environment for valued customers, and to eliminate cargo pilferage,
the entire CAC is a protected area, with access via a pass system, where all entrants’
backgrounds are checked. Entrance into the CAC is manned by armed police personnel
round-the-clock. Frequent security audits are carried out to ensure a high level of alertness.
1

Security would be further enhanced with the implementation of a national Regulated
Cargo Agents Regime (RCAR) by 2006/2007.
Ground Handling Agents
The CAC currently houses eight airfreight terminals, operated by two ground handling
companies, namely Changi International Airport Services (CIAS) and Singapore Airport
Terminal Services (SATS). A third ground handling agent, Swissport Singapore has
started operation in mid 2005, providing greater choices to the airlines and their customers.
• Performance Standards for Ground Handlers – Civil Aviation Authority of Singapore
(CAAS) has engaged an independent surveyor to conduct a comprehensive audit on
the cargo handling performance standards of Singapore Ground Handlers in 2005.
Singapore’s National Carrier
SIA Cargo, a wholly owned subsidiary of Singapore Airlines, continues to steadily develop its
global capability with new freighter destinations and an expanding fleet in 2005.
Over the past 12 months, Singapore Airlines Cargo’s services have become available on
an even wider network as the Boeing 747-400 “Mega Ark” freighter fleet has grown, with
additional frequencies being added on high demand routes to China and beyond to the
United States, as well as to major cities in India. A new service linking Brussels,
Johannesburg and Singapore was also launched last year. The entire network currently
stretches across 5 continents to 71 cities in 37 countries around the world, with more than
600 scheduled flights a week operated by sixteen Boeing 747-400 “Mega Ark” freighters.
Competition Act 2004 (Cap 46 / 2004):
Singapore’s First Generic Competition Law
Competition is a key tenet of Singapore's economic strategy. The mission of the Competition
Commission of Singapore (CCS) is to promote healthy competitive markets that benefit the
Singapore economy. The Competition Act 2004 was passed in Parliament in October 2004.
On 1 January 2006, the Competition Act 2004 came into force, introducing Singapore’s first
generic competition law.
Zero GST Warehouse Scheme
The Zero GST Warehouse Scheme (ZGS) comes into effect on 1 Jan 2006.
The ZGS is administered by Singapore Customs (SC), for companies who wish to suspend
GST on their imported goods. There are three licence types, namely Warehouse Type I,
Type II and Type III, to cater to the different needs of companies.
A Warehouse Type I licensee has to ensure that at least 80% of its imports are re-exported.
Type II and Type III licensees are not subject to this export requirement. In addition, a Type
III licensee can operate, and move goods freely between, multiple ZG warehouse locations
under a single licence.
SAAA appointed as collection centre for Certificate of Origin
With effect from 01 Mar 2006, Singapore Customs has appointed SAAA as the
collection centre for Certificate of Origin (CO) at the Changi Airfreight Centre. Traders who
opt to collect their CO in Singapore Customs Aircargo Office, will now collect their COs at
SAAA Cargo Services Pte Ltd (SCS).
2

Singapore Budget Terminal
Singapore’s dedicated terminal for low cost carriers opened its doors for flight operations
on 26 March 2006. Travellers can look forward to enjoying greater cost
savings as CAAS has introduced a total passenger charge of S$13 for travellers departing
from the new terminal. This is much lower than the S$21 total charge at Changi Airport’s
Terminals 1 and 2 and is also the lowest passenger charge for international flights in the
region.
Freight and Logistics Promotion Mission to:-
• Western & Southern China
CAAS and IE Singapore jointly organised missions for the freight forwarders to Western &
Southern China (Chengdu, Guangzhou, Dongguan) in 19-23 September 2005.
The primary objective was to get a first-hand feel of the latest developments in the freight
and logistics sector in these 3 cities, with focus on:-
- Update on economic growth and state of China’s aircargo market
- Understand the regulatory environment of airfreight including customs regulations,
foreign investment requirements etc.
- Network and form business contacts with potential customers and partners/freight
forwarders
- Identify opportunities and profile Singapore’s capabilities in both Sea-Air/Air-Air
Transhipment and Logistics
• Indo-China (Vietnam & Cambodia)
Indo-China (Vietnam & Cambodia) in 12-14 July 2005.
SAAA / ACCS Bosses Night
SAAA started 2005 by organizing the SAAA / ACCS Bosses Night.
The Singapore Aircargo Agents Association (SAAA) and Air Cargo Club Singapore (ACCS)
jointly organized the first “Bosses Night” on 06 January 2005 to thank members of the airfreight
industry for their contribution and continuous support over SAAA’s 34 years. A total of 110
representatives from Air Freight companies, Airlines, the Industry (including CAAS, SATS,
CIAS, Singapore Customs, Immigration & Checkpoint Authority and IATA) turned up for the
event. Chairman SAAA, Mr Steven Lee started the night of entertainment with a short speech,
followed by a buffet dinner. It was a night filled with fun and laughter with music provided by a
local band - the Trailers, wine, sumptuous food and good company.
7 th SAAA / ACCS Charity Golf Tournament 2006 in aid of Bishan Home for the
Intellectually Disabled
The Singapore Aircargo Agents Association (SAAA) and Air Cargo Club Singapore (ACCS)
jointly organized a Charity Golf Tournament on 09 May 2006 at the Tampines Course, Tanah
Merah Country Club. The tournament raised a net sum of S$68,622.37. This enabled Bishan
Home for the Intellectually Disabled to purchase an ambulance and some equipment.
Courses Conducted by SAAA Cargo Services Pte Ltd
A wholly owned subsidiary company of The Singapore Aircargo Agents Association (SAAA),
SAAA Cargo Services Pte Ltd (SCS) was formed as an investment arm in 1988. Amongst
its diverse activities, SCS undertakes cargo clearance permit processing service, collects
GST on behalf of Customs and facilitate cargo insurance coverage for shipments. SCS also
sells bar code label and Neutral Air Waybill (NAWB).
3

SCS conducts the following courses:
Dangerous Goods Regulations Initial / Refresher Course, Forklift Driver’s Training Course,
Airfreight Forwarders Basic / Advance Course, IATA-FIATA Diploma Cargo Introductory
Course, IATA-FIATA Diploma Cargo Rating Course, Customer Service / Sales Course,
Supervisory Workshop, Export Cargo Acceptance & Build-Up Procedures.
For more information, refer to Singapore Education and Training Report.
Singapore Changi Airport’s recent developments could be best illustrated with the following
data:-
2005
Month Tonnage Growth (%)
January 141,661 14.3%
February 127,491 -6.5%
March 155,423 -0.4%
April 150,066 5.3%
May 145,267 -1.7%
June 149,872 0.1%
July 154,830 2.2%
August 152,381 3.4%
September 160,194 2.8%
October 170,118 5.5%
November 160,357 7.4%
December 166,062 8.2%
Year 2005 as compared to previous years:-
4

International Freight Traffic
January - December 2005 (updated on 13 March 2006)
International Freight (in metric tonnes)
Airport Total %Chg
1 HONG KONG, CN (HKG) 3 408 000 10.2
2 TOKYO, JP (NRT) 2 232 687 (3.4)
3 SEOUL, KR (ICN) 2 119 890 0.8
4 ANCHORAGE, AK (ANC)* 2 015 957 7.7
5 FRANKFURT, DE (FRA) 1 836 021 8.3
6 SINGAPORE, SG (SIN) 1 833 721 3.3
7 TAIPEI, TW (TPE) 1 692 448 0.2
8 SHANGHAI, CN (PVG) 1 601 451 18.0
9 AMSTERDAM, NL (AMS) 1 449 856 2.0
10 MIAMI, FL (MIA) 1 442 505 (0.6)
11 LONDON, GB (LHR) 1 300 548 (1.5)
12 DUBAI, AE (DXB) 1 281 050 12.3
13 NEW YORK, NY (JFK) 1 171 623 (2.0)
14 BANGKOK, TH (BKK) 1 071 386 7.1
15 LOS ANGELES, CA (LAX) 987 271 5.4
16 CHICAGO, IL (ORD) 930 295 (3.1)
17 OSAKA, JP (KIX) 798 882 (1.4)
18 LUXEMBOURG, LU (LUX) 742 335 4.2
19 BRUSSELS, BE (BRU) 694 594 6.0
20 COLOGNE, DE (CGN) 603 329 5.4
21 KUALA LUMPUR, MY (KUL) 589 900 (0.4)
22 MILAN, IT (MXP) 363 082 6.4
23 ATLANTA, GA (ATL) 341 220 (2.2)
24 LIEGE, BE (LGG) 325 713 (14.8)
25 ZURICH, CH (ZRH) 322 393 3.0
26 BAHRAIN, BH (BAH) 317 061 9.1
27 TEL-AVIV, IL (TLV) 306 758 (8.1)
28 MANILA, PH (MNL) 296 091 (1.2)
29 MUMBAI, IN (BOM) 281 660 5.6
30 SAN FRANCISCO, CA (SFO) 279 480 0.3
SOURCE: Civil Aviation Authority of Singapore
IE Singapore
Singapore Customs
Singapore Airlines
Competition Commission of Singapore
Prepared by: Soo Lee
Vetted by: Mr. Alec Koh
The Singapore Aircargo Agents Association
Representatives: Mr. Alec Koh
Mr. Richard Tan
5

The Singapore Aircargo Agents Association
COUNTRY REPORT
Appendix I
Current Executive Council
Representing
Chairman Mr Steven Lee DHL Danzas Air & Ocean (Singapore) Pte Ltd
Deputy Chairman Mr Michael Yew Air Tiger Logistics (S) Pte Ltd
Honorary Secretary Mr Joseph Khoo Quickflo Logistics Pte Ltd
Honorary Deputy Secretary Mr Thomas Ong Morrison Express Logistics Pte Ltd
Honorary Treasurer Mr Andrew Goh Expeditors Singapore Pte Ltd
Council Members Mr Alec Koh Freightmen Pte Ltd
Mr Chan Chee Kheong
Mr Daniel Chng
Mr Edmund Ng
Mr Lawrence Low
Mr Paul Teo
Mr Richard Tan
Mr Roy Tang
Tower Airfreight Pte Ltd
Hanshin Freight International (S) Pte Ltd
BALtrans Logistics Pte Ltd
Accord FETA Freight Pte Ltd
Speedmark Air Transportation Pte Ltd
Merstar International (S) Pte Ltd
All-Cargo Express (S) Pte Ltd
6