Roles of the Airport and Logistics Services on the Economic Outcomes of an Air Cargo Supply Chain

Xue-Ming YUAN, Singapore Institute of Manufacturing Technology
Joyce Mei Wan LOW, Singapore Management University
Loon Ching TANG, National University of Singapore


This paper introduces an air cargo supply chain operations reference (ACSCOR) model to examine the integrated impact of airport operating strategies and industrial forces on airport performances, and quantifies the economic benefits of the air cargo service business. In the light of Singapore and Hong Kong statistics, it is shown that the cargo traffic at an airport is significantly influenced by its operating characteristics, the performances of its downstream airfreight and supporting logistics industry, and the economic environment that it is functioning within. Through the traditional economic models, it is found that on average Hong Kong experiences a higher accelerator effect but lower multiplier effect in airport investment compared to Singapore. While the multiplier effect may signify that Singapore can benefit from higher returns in terms of the spillover effect to the overall air cargo supply chain, the higher accelerator effect in Hong Kong corresponds to the empirical results from the ACSCOR model that advocate Chek Lap Kok airport increasing its physical inputs relative to human inputs.