Sun Hung Kai Properties (SHKP) has reached an agreement with Airport Authority Hong Kong (AAHK) to extend the term of SHKP’s Airport Freight Forwarding Centre (AFFC) for 15 years. SHKP has also pledged to invest at least $400 million in a comprehensive upgrade of AFFC to provide smarter and more customer-centric warehousing and logistics facilities. This is set to further strengthen Hong Kong’s position as an international aviation and trade centre.

Today, under the witness of Secretary for Transport and Logistics Mable Chan, Deputy Director-General of the Economic Affairs Department of the Liaison Office of the Central People's Government in the HKSAR Lu Feng, AAHK Chairman Fred Lam, SHKP Chairman and Managing Director Raymond Kwok, AAHK Acting Chief Executive Officer Vivian Cheung, and SHKP Executive Director Christopher Kwok, SHKP Executive Director Allen Fung and AAHK Commercial Executive Director Cissy Chan signed the term extension agreement for their respective parties.

Secretary for Transport and Logistics Mable Chan said: “AFFC has been a cornerstone of Hong Kong International Airport’s (HKIA) cargo operations for 27 years.  Our airport has been ranked as the world’s busiest international cargo airport by the Airports Council International for 13 years since 2010. The airport’s Three Runway System is now fully operational, and its capacity will continue to increase. The investment in AFFC is both timely and well-placed. The HKSAR government and AAHK will continue to collaborate with AFFC and other partners to consolidate and enhance Hong Kong’s position as an international aviation hub and logistics hub.”

Fred Lam, Chairman of AAHK, said, “We are actively enhancing the logistics infrastructure of the airport, which include a new smart logistics hub, an expanded hub for international couriers, and a transit mail centre. The lease of the Airport Freight Forwarding Centre has been renewed until 2043, and the facility will undergo upgrade and reconfiguration, demonstrating the Centre’s strong confidence in the future development of the airport. We look forward to the continuous support from the Airport Freight Forwarding Centre for the development of Hong Kong's air cargo industry, and HKIA scaling new heights.”

Raymond Kwok, Chairman and Managing Director of SHKP, said: “Hong Kong enjoys the unique advantages of being ‘backed by the motherland and closely connected to the world’ With the vast mainland market right on its doorstep, Hong Kong benefits from zero tariffs on most imports and exports, along with very efficient customs clearance. This combination gives Hong Kong a very strong competitive edge as a transshipment hub. Air transport plays a pivotal role in Hong Kong’s economy and trade, accounting for over 45% of Hong Kong’s trade value. It is noteworthy that under AAHK’s leadership, HKIA has become the world’s busiest cargo airport. Despite earlier disruptions from the pandemic, cargo volumes have now surpassed pre-2019 levels, with AFFC playing a significant role by handling approximately 30% of the airport’s cargo throughput.”

He added that: “SHKP actively supports the directives from the Third Plenary Session of the 20th Central Committee of the Communist Party of China, which emphasize strengthening Hong Kong’s position as an international transportation and trade centre. With the backing of the Transport and Logistics Bureau and AAHK, SHKP not only renews the lease for AFFC but also makes significant investments in a comprehensive upgrade of AFFC. This initiative will enhance Hong Kong’s role as a major international aviation logistics hub, foster closer ties with other cities in the Greater Bay Area and help the city seize opportunities presented by the Belt and Road Initiative and markets in the Global South. The upgrade also reflects the confidence of AFFC’s customers in Hong Kong and is designed to meet their need for greater operational efficiency.”

Designed, built, and managed by SHKP, AFFC offers over 1.5 million square feet of air freight logistics and office space. Since its inception in 1998, AFFC has been known for its efficient, timely, and high-quality services. Its building design features a low-rise configuration that allows for easy access, complemented by high ceilings and numerous convenient loading and unloading bays. This makes it the preferred choice for many small and medium-sized freight forwarders.

The upgrade project is already underway, with phased completion expected to begin in early 2026. Upon completion, AFFC’s overall cargo throughput capacity is set to increase by up to 30%. In addition to refurbishing the building, AFFC will introduce several enhancement initiatives, including:

1. Flexible warehouses: Customers will have the flexibility to customize warehouse layout according to their needs, which is particularly appealing to small and medium-sized enterprises. 
2. Smart digital systems: Incorporation of a smart traffic management system to improve vehicle flow control, utilizing big data from the airport to enhance logistics efficiency. In addition, a smart building management system will be introduced to increase energy efficiency.
3. Green building features: In line with national and Hong Kong’s targets on carbon neutrality, as well as AAHK’s goal to become the world’s greenest airport, AFFC will introduce green energy facilities such as LED lighting, solar panels, and charging facilities for electric trucks and forklifts. Green elements will also be integrated into the building’s design.  
4. Wellness: A range of facilities will be added, including co-working spaces, rest areas, a gym and showers. There are also plans to add more dining and retail options. These facilities will help create a healthier working environment, boost productivity, and enhance employee well-being.