As of December 2022, Incheon International Airport’s cargo transport network connects 43 countries and 107 cities through 25 airlines. When incorporating belly cargo from passenger aircraft, the network expands to 53 countries and 152 cities via 87 airlines. Incheon International Airport remains committed to enhancing its cargo routes consistently, ensuring non-stop connectivity with cities worldwide throughout the year.
Incheon International Airport (as of Dec. 2022) is equipped with a logistics infrastructure capable of managing 5 million tons of air cargo annually. Following the completion of its fourth phase of construction, the airport’s capacity is expected to increase to 6.3 million tons per year. Incheon International Airport is strategically positioned for a transformation into a mega hub airport, with plans to progressively develop new cargo terminals to efficiently handle increasing volumes of export-import cargo, specialized consignments, and perishables.
The AACT, a global logistics company, has initiated operations in a new freight terminal, supplementing its existing Atlas Air Cargo Terminal.
DHL, a globally recognized express courier company, has committed to an investment of approximately 175 billion KRW by 2023. This significant investment aims to expand its dedicated cargo terminal at Incheon International Airport to nearly three times its current size. An expansion of the DHL Incheon Hub Terminal, established in 2007, means its hourly express cargo handling capacity is anticipated to rise by 227%, increasing from 8,100 to a remarkable 26,480 items.
Meanwhile, through the customer-tailored development initiative (Build To Suit), the FedEx-exclusive cargo terminal—now expanded to approximately three times its original size—commenced operations in October 2022. The terminal’s annual handling capacity is projected to exceed 170,000 tons.
| Cargo Terminal Expanded Companies |
Scale |
|---|---|
| AACT | Additional operation of new cargo terminal |
| DHL | DHL expands dedicated cargo terminals with $1.3 billion investment |
| FedEx | Three times more than before with customized development projects |
Incheon International Airport is actively working to establish and expand an integrated logistics transportation system through the Incheon Port. This strategic move aims to unify South Korea, China, and Japan into a consolidated logistics market. Notably, the Incheon Port, located just 11 km away from the Incheon International Airport logistics complex, boasts 38 shipping lines that deploy 192 vessels, amounting to 89 dockings per week. Furthermore, this port connects to 31 routes in Northeast Asia, covering regions like Japan and China, and another 32 routes in Southeast Asia, reaching places like Vietnam and Singapore. When synchronized with Incheon International Airport’s air cargo network, it offers the potential for efficient management of combined Sea&Air cargo.
In addition, the anticipated introduction of the Road Feeder Service (RFS) offers an exciting prospect. This service envisions domestic freight vehicles in China directly loading cargo onto ferries for seamless transportation to Incheon International Airport. Such an innovative system is expected to reduce the time required for customs clearance and transshipments, enhancing the efficiency of handling Sea&Air cargo in comparison to traditional methods.
As of December 2022, Phase 1 of the Airport Logistics Complex encompasses an area of 992,000 m2, with an additional 922,000 m2 allocated for the Phase 2 of the expansion. At present, it boasts a 100% contract completion rate and houses 36 prominent domestic and international enterprises, including 35 logistics companies and one manufacturing firm. The diverse business models represented here range from international freight forwarding, Sea&Air combined cargo transportation, commercial shippers, cargo consolidators, to Global Delivery Centers (GDC). A focal strategy for the future is to emphasize attracting emerging growth cargo sectors, such as e-commerce, pharmaceuticals, and perishables. This initiative aims to ensure consistent growth in cargo volume and to drive significant economic value.
The logistics complex also takes pride in its collaboration with iHerb, a renowned global direct purchase platform. This partnership has established iHerb’s international logistics center for the Asian region within the complex. This state-of-the-art logistics center, roughly equivalent in size to four football fields (approximately 10,000 pyeong), is fully operational. With its establishment, it has generated employment opportunities for over 300 individuals and has also generated an economic impact worth 100 billion KRW, marking a significant contribution to the national economy.
Despite the extended challenges posed by the COVID-19 pandemic, the airport logistics complex has maintained a consistent annual cargo volume growth rate of 18% over the past five years. In 2021, the complex welcomed the nation’s top air consolidated cargo company and a premium logistics enterprise that manages e-commerce shipments from China. The momentum continued into 2022 with the successful integration of Hyundai Glovis, South Korea’s premier logistics company, further boosting cargo volume generation.
To address the evolving dynamics of the air cargo market, a foundational infrastructure has been established to consistently attract global logistics companies. The 2nd Airport Logistics Complex, covering 326,000 m² and divided into 20 plots, represents this initiative.
The 2nd Airport Logistics Complex is strategically advancing its development in three main sectors: promoting emerging growth cargoes, such as pharmaceuticals; generating transshipment cargo; and attracting investments for small to medium enterprises. This is achieved through emerging growth cargo business rights, Global Delivery Center (GDC) business rights, and social value business rights. Recognized as both an economic free zone and a free trade zone, the complex offers an investor-friendly environment with financial incentives based on investment amounts and advantageous tax reductions. Moreover, in alignment with the digital transformation trend in the logistics industry, investment solicitation is centered around forward-thinking business models.
Enterprises interested in participating in private sector proposals for the development of the 2nd Airport Logistics Complex and the cargo terminal are encouraged to reach out to the Logistics Development Team at the Logistics Department (032-741-2276).
