News #202621 - CPEC’s Air Cargo Potential: Can Pakistan Become Western China’s Gateway?

• There is a quiet but consequential shift taking place on the China-Pakistan trade corridor.
• The launch of a dedicated air cargo route between Ezhou Huahu Airport in China’s Hubei province and Lahore marks the first time a direct freight air link has been established under the China-Pakistan Economic Corridor (CPEC), a framework that has attracted over US$65 billion in committed investment and US$25.4 billion in direct capital since 2014.
• Operated by SF Airlines three times weekly, the route offers over 300 tons of weekly air express capacity and is already being watched closely by logistics operators across the region.

Ezhou Huahu is China’s first airport purpose-built entirely for cargo operations. That its inaugural international route connects to Lahore rather than a more established regional hub reflects the deliberate strategic intent on both sides. CPEC has until now been defined largely by road, port and rail infrastructure, including over 809 kilometres of motorways and highways and the Gwadar Port maritime link. The air cargo route adds a new dimension to that framework, one suited to time-sensitive, high-value goods that roads and railways simply cannot serve at the required speed.

The economic case for Pakistan is harder to ignore than it once was. Air transport already contributes US$2 billion to Pakistan’s gross domestic product (GDP) and supports over 500,000 direct and indirect jobs across airlines, airport operations and supply chain management. The International Air Transport Association (IATA) projects that air transport in Pakistan will grow by
184 percent over the next 20 years, generating roughly 22.8 million additional passenger departures by 2038 and a GDP gain of approximately US$9.3 billion. Pakistan currently ranks 67th out of 124 countries on the Air Trade Facilitation Index. The gap between where the country sits and where it could sit is measurable, and this route begins to address it.

Goods expected to move on the Ezhou-Lahore corridor include textiles, electronics and industrial equipment, categories where fast, reliable delivery directly improves competitiveness. Air cargo as a mode already accounts for approximately 35 percent of global trade value despite representing less than one percent of total volume. Air cargo traffic on the Europe-Asia, Middle East-Asia and Africa-Asia corridors grew by 3.2 percent, 6.6 percent and 10.3 percent respectively in 2023. Pakistan, positioned at the geographic intersection of these routes, has a credible case for becoming a consolidation and transit point rather than purely an origin-destination market.

Realising that potential is not straightforward. Customs coordination, regulatory alignment, security and bureaucratic efficiency all remain areas that need sustained attention. Pakistan’s National Transport Policy has signalled intent to integrate technologies such as real-time tracking and Internet of Things (IoT) sensors into logistics infrastructure, which would meaningfully improve shipper confidence over time.

Source: https://aircargoweek.com/cpecs-air-cargo-potential-can-pakistan-become-western-chinas-gateway/

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