Incheon Airport Signs Deal With Chinese City For Rapid Cargo Delivery

Fahad Shabbir (@FahadShabbir) Published January 19, 2019 | 06:58 PM

Incheon International Airport Corp. (IIAC) said Friday it has signed a deal with a Chinese city to shorten the delivery time of freight shipped from China to South Korea and other countries

SEOUL, (APP - UrduPoint / Pakistan Point News - 19th Jan, 2019 ) :Incheon International Airport Corp. (IIAC) said Friday it has signed a deal with a Chinese city to shorten the delivery time of freight shipped from China to South Korea and other countries.

In the agreement reached between IIAC and Weihai, a northeastern city in coastal Shandong Province, from which cargo is shipped to Incheon Port, freight will be transported directly to the Incheon Airport by truck without undergoing a separate clearance process under the road feeder service (RFS), the IIAC said in a statement.

In a RFS system, a vehicle ferry can carry cargo-loaded trucks from a country to a foreign destination and then have the cargo be distributed locally or shipped elsewhere from there. This can significantly drive down costs and time required for delivery, it said.

"Most cargoes undergo a clearance process in their original countries.

No additional clearance process is required for the cargoes when they arrive at their destination country," an IIAC spokesman said.

Besides IIAC and the Weihai city, four other parties -- the Incheon Metropolitan government, Incheon Port, Weihai Aiport and Weihai Port -- are participating in the deal to deliver their support, the statement said.

They agreed to carry out the RFS test project in the first half of 2019 in a win-win partnership to rapidly handle growing outbound freights from China to Korea, the IIAC said.

The agreement comes as China's online transactions reached 1,300 trillion won (US$1.16 trillion) in terms of value. Rise in sales invariably leads to greater trade, as many goods are shipped abroad. South Korea's e-commerce sales were valued at 5.2 trillion won.

In the past five years, China posted an average of over 30 percent growth a year in online transactions, it said.