[ICN Business – Logistics #2] Is Incheon Airport the Number 1 Cargo Airport?

There was a joyous occasion in April.

Hong Kong International Airport, Shanghai Pudong International Airport, Singapore Changi Airport…

Outperforming these competitors was Incheon Airport, awarded Best Cargo Airport in Asia!

What is more surprising is that it’s not the first time we’ve won this award! Incheon Airport has won this award for 6 consecutive years, demonstrating the airport’s efforts for constant growth.

What propels Incheon Airport beyond Korea to become one of the world’s logistics hub is its robust logistics infrastructure. This post will talk about the logistics infrastructure established and developed by Incheon Airport.

What makes Incheon Airport a “global logistics hub”?

Incheon Airport possesses the world’s 3rd best capability for handling international cargo, following the airports in Hong Kong and Shanghai. It is worth noting that Incheon Airport handles 2.95 million tons of international cargo and 1.16 million tons of transshipment cargo. You may not be familiar with the term “transshipment cargo.” Just think of it as transferring cargo like passengers. Easier transshipment produces a greater volume of cargo.

As of 2020, Incheon Airport has a diverse network of flights which includes 90 airlines and 188 air routes. More specifically, it offers many routes bound for the Americas and Europe and boasts a strong transshipment competitiveness.

The airport’s cargo handling capabilities are also exceptional. While the airport’s capacity can currently handle 4 million tons, it ensures cargo handling scalability with the continued expansion of logistics infrastructure, being able to handle 7 million tons in the future.

 

The fact that Incheon Airport boasts an easy and simple customs system and is geographically positioned in the center of Northeast Asia also greatly contribute to making it a global logistics hub.

Incheon Airport’s competitiveness lies with FTZ!

While it is important to build infrastructure, what is more important is to create real added value from such infrastructure. What makes Incheon Airport a global logistics hub is its efforts to attract various companies with different types of incentives and support, in addition to building physical infrastructure.

What is most noteworthy is that the airport has established a world-class business environment with its designation as a Free Trade Zone (FTZ). Incheon Airport FTZ is Korea’s only airport FTZ, which leads the development of airport logistics with various business models.

The FTZ is a zone in which free manufacturing, logistics, distribution, and trade activities are guaranteed. Companies benefit from in-bond benefits as well as rent that is 10-30% cheaper than that in the nearby area. Foreign companies that invest more than a certain amount of money can also enjoy rent reductions and benefits. A 50% discount for rent is provided to those investing more than USD 5 million for 3 years and those investing more than USD 10 million for 5 years.

This way a company can reduce its operating costs in order to free up money to invest somewhere else and improve its own logistics competitiveness. Incheon Airport’s ability to handle a higher cargo volume will further enhance its global standing, creating a virtuous cycle that leads to investments in other infrastructure and the attraction of more companies. Now, can you see how big of an impact the designation of a FTZ had on the airport?

Categorized at Cargo Terminal and delivered to Logis Park!

Incheon Airport FTZ is divided into the Cargo Terminal and Airport Logis Park.

Incheon Airport Cargo Terminal consists of Korean Air, Asiana Airlines, Foreign Carrier Cargo Terminal, DHL, AACT, International Mail Terminal, and US Army Military Mail Terminal. The key to operations in the Cargo Terminal is categorizing cargo quickly and accurately. Export cargo should be categorized seamlessly to be loaded onto aircrafts, while import cargo should be categorized for unloading and transport. This is why companies here use state-of-the-art logistics equipment and strengthen their transshipment functions to handle more import and export cargo per hour.

By the way, did you know that Incheon Airport accounts for 30% of Korea’s imports and exports? This is because of the characteristics of shipment goods. Goods imported and exported as air cargo are intermediate goods in emerging industries or products with high added value. They are also dubbed to be light, thin, short, and small products (LTSS). Examples include semiconductor parts, electronics, and telecom devices.

They require delicate and professional care for packaging, storage, and shipment. That is why many types of businesses, such as manufacturers, forwarding companies, and customs brokerage firms, are located in Incheon Airport Logis Park to support air cargo handling, along with the logistics companies.

Incheon Airport Logis Park is a key area that helps handle import and export cargo in the Cargo Terminal and actively contributes to creating added value in Korean companies!

What kinds of companies are based in Incheon Airport Logis Park?

Incheon Airport Logis Park has expanded in phases in response to the growing demands in the air cargo business. Since its inception during Logis Park – Phase 1 (992,000 m2) in 2006, Logis Park – Phase 2 (651,000 m2) opened in 2013. Logis Park – Phase 3 (326,000 m2) will solicit occupants at the end of this year.

The current occupancy rate of Logis Park is about 92%. You may wonder why we are expanding the park when our occupancy rate has not yet hit 100%. Expanding Logis Park requires a long time for consulting with related agencies and establishing the site. Therefore, the idea is to expand and offer space within Logis Park in a timely manner before the occupancy rate of the existing Logis Park reaches 100%. There is also the goal to create new cargo demand through the development of a specialized Logis Park.

Incheon Airport Logis Park boasts the total area of 2,240,000㎡ with Phases 1-3 combined. This does not give you a very clear idea about how big it is, right? To put it in other words, it is 313 times as big as Seoul World Cup Stadium!

What companies are based in such a vast area?

There are even more companies than those listed above. 35 companies operate their own logistical facilities in Logis Park, but if you count the companies operating within those facilities, it is home to about 300 companies. This large number itself speaks to the park’s giant size, right?

Companies in Incheon Airport FTZ are driving the growth of Korea at the center of logistics in the country. Incheon Airport will provide optimal logistics infrastructure to help companies in the park to better operate and fully support facilities and systems by preparing suitable policies!

 

In the next post, we will talk about how Incheon Airport prepares for the rapidly changing trends in air logistics. It will be very interesting to picture Incheon Airport’s future. Thank you for your continued interested and we look forward to seeing you next time! 😊

Airbus? Boeing? Tip on How to Identify Aircraft Models

“Dad! What is the name of that airplane?”

A child going overseas for the first time in her life asked her dad this question, eyes wide open with wonder. Outside the windows of the gate, many different types of airplanes are preparing to take off and soar through the air. Her dad is caught off guard by the question he has never thought of before.

You may be able to differentiate the many different car models on the road with ease, but airplane models are confusing. For some reason, they feel like something only “nerds” would know.

Although they look similar, if you look at them closely, airplanes actually have different names and features. You don’t have to be an expert to be able to differentiate between the various airplane models. All you need to know is a few basic things! In today’s post, we would like to provide some specific tips on how to differentiate between airplane models!

What do “A” and “B” mean in airplane names?

A380, A350, B747, B777… what do “A” and “B” mean exactly? They are the first initials of the world’s two largest aircraft manufacturers, Airbus and Boeing. “A” means an airplane made by Airbus and “B” means it comes from Boeing. As the two companies account for 70-80% of the aircraft market, you can say that most airplanes belong to either company.

Boeing began 50 years earlier than Airbus. Boeing, which started out in the US in 1916, has become the world’s largest aircraft manufacturer. Airbus is a multinational aircraft manufacturer, which different European aircraft manufacturers launched as a consortium in 1970 to compete with American companies like Boeing. Since then, the two companies have been fiercely competing in the aircraft market for the past 50 years.

Throughout this long competition, the aircrafts from the two companies began to show some differences in detail. If you compare them and learn their differences, you may find yourself becoming an airplane expert! Let’s find out what these differences are!

Double-deck aircrafts can be differentiated by the number of seats! (A380 vs. B747)

To start, remember the two representative double-deck aircraft models, A380 and B747! How can we differentiate these double-deck airplanes that are exactly the same? Let me tell you an easy way to tell the two models apart. Like the photo above, if there are seats across the 2nd floor, it is A380.

A380 is nicknamed the “whale jet” for its appearance that is similar to a giant whale. As it boasts a wide indoor cabin space, it is equipped with various amenities like a wine bar and shower, thus giving it another nickname, “hotel in the sky.”

Meanwhile, B747 only has seats on the front part of the 2nd floor, unlike A380 which has seats across the 2nd floor. B747, one of the top two long-distance passenger jets along with A380, is so famous that it is called the “queen of the sky.” It is one of the most historic airplanes as it has served as Boeing’s flagship large long-distance passenger jet for a long time.

These two models have not only different seat layouts on their 2nd floors, but they also have different winglets, the small vertical wings attached to the tip of main wings. While A380’s winglets have a vertical, up-and-down appearance, those of B747 are tilted slightly higher. If you find it difficult to tell the two models apart by winglet, remember one thing. Seats across the 2nd floor means A380, and seats on only a part of the 2nd floor is B747! How’s that? Isn’t it easy?

Differentiating by the cockpit, the face of an airplane (A350 vs. B787)

You have already mastered two aircraft models. Let’s take a look at A350 and B787, the next-generation single-deck aircraft models! What distinguishes the two models is their cockpits.

Those of you who are not interested in airplanes may be hearing the word, “cockpit,” for the very first time. However, this is the first part we see when we look at an airplane. It refers to the pilot’s room, the front tip, or face, of an airplane.

A350’s cockpit consists of six windows and looks like it is wearing round sunglasses. It is nicknamed “raccoon” for the black outline around its cockpit’s windows. There is a reason why A350’s cockpit is unique. It controls temperature and also boasts a light reflecting effect.

Meanwhile, the cockpit of B787 has four windows with pentagonal windows on both ends. Like A350, it is a mid-sized airplane with 440 seats. It employs fuel efficiency and landing distance shortening, and it is often used for mid- and long-distance travel.

 

Now, we understand the two next-generation airplanes taking off from many runways. The cockpit with six windows forming a smooth shape is A350, while a cockpit with four windows in a slightly sharper shape is B787!

Winglets, the slight difference that determines detail! (A330 vs. B777)

Next, we will learn how to tell them apart by winglet. Winglets are small wings attached to the tip of a main wing. It reduces vortex split by the main wing. As pilots can improve fuel efficiency by reducing drag, it is one of the essential structures on an airplane.

 

You can easily tell airplane models apart by their winglets. Let’s take a look at the winglets of two long-distance aircrafts, A330 and B777. A330’s winglets look like they go up from the tip of the main wing.

Meanwhile, you cannot see B777’s winglets. If you put winglets on airplanes with long wings like B777, it may cause vibration. In particular, B777X, the latest model of B777, adopts a hinge which allows it to fold its wingtips at the airport and unfold them during flight.

 

In addition to winglets, the doors are located in different places. Unlike A330, B777 has a separate door around the main wing. Also, the vertical tails at the end and landing gears are also different. I will leave it to you to figure out!

Today, we learned some useful tips for telling different airplanes apart with ease. You may have thought that all airplanes look alike, but now don’t they look completely different? With the tips we talked about today, check out different airplanes in detail to look for their different charms. This will be a new fun way to spend your time at the airport before leaving the country!

Must-Visit Korean Restaurants in Incheon Airport

Do you finally arrive to Incheon Airport after a long flight?

Are you headed back home after visiting Korea for travel or business?

We would like to tell you about each and every Korean restaurant and the best dishes that you can enjoy at Incheon Airport to leave you with delicious memories as you say goodbye to Korea! 😊

If you want traditional, classic Korean food …

Do you want to taste traditional Korean food? Do you want to eat something filling? Then these two restaurants are perfect.

One place specializes in bibimbap!

The other place offers Korean specialty dishes from all across the country!

 

Let’s find out why these two restaurants are so popular!

1) Jinmi Hangukjip

You can enjoy quality Korean dishes at Jinmi Hangukjip. The recommended dish here, of course, is “bibimbap.”

 

Bibimbap is one of the most iconic Korean dishes. It involves mixing rice with various vegetables, meat, and gochujang (Korean chili paste). Just looking at this mixture of various vegetables and meat makes you feel healthy. As it is a rice-based dish, it is quite filling.

This dish is quite familiar to non-Koreans as it is often served as an airline meal. This is why we recommend it to you. However, the bibimbap at this restaurant is surely different from the one served on the plane, right?

Among the various bibimbap dishes at Jinmi Hangukjip, the spicy pork bibimbap in a hot pot is not too spicy, even for non-Koreans. The harmony between the savory egg yolk, sweet and spicy stir-fried pork, and fresh seasoned vegetables creates a delicious masterpiece! It is a filling and neat dish.

Location: Middle of B1, Terminal 1

Hours of Operation: 11:00 a.m.-8:00 p.m.

* Due to COVID-19, there may be some changes in store operations such as shortened business hours and business suspensions.

2) Bonuribansang

If you like restaurants that offer a variety of options, we recommend Bonuribansang!

At Bonuribansang, you can enjoy specialty dishes from different parts of Korea. This restaurant brought together all of the dishes created in different regions of Korea, like Seoul, Daegu, Tongyeong, and Yeosu. The biggest advantage here is that you can check out various specialty Korean dishes all in one place. We recommend this restaurant for enjoying the lesser-known, unique Korean dishes.

The best item on the menu here is the Anseong Market rice soup set menu. The Anseong Market rice soup set menu is a hot soup served with rice that can ease your fatigue from traveling. Vegetables such as bracken are added to the soup which is boiled with beef and beef bone. Traditionally, you put the rice into the soup and eat them together. The soup’s comforting and not-too-strong taste is its appeal!

As it originated from the market in a region called Anseong during the 1930s, it is called “Anseong Market rice soup set menu.” It also fully reflects traditional Korean taste. This menu allows you to relax with the hot soup and taste true Korean flavor. Doesn’t it sound delicious? Enjoy comforting dishes at Bonuribansang where you can also try other specialty dishes from different regions. J

Location: Near Exit 12 on 1F, Terminal 1

Hours of Operation: 9:00a.m.-7:00 p.m.

* Due to COVID-19, there may be some changes in store operations such as shortened business hours and business suspensions.

If you want to enjoy an easy meal, why not try casual Korean food?

Sometimes you want to eat something light, right? We mean, something that isn’t too heavy and can be enjoyed conveniently. If you feel a bit overwhelmed by classic Korean food, here are some restaurants that may be good options for you.

1) Byeolmibunsik

Byeolmibunsik specializes in simple but tasty “bunsik” (street food). “Bunsik” originally referred to “food made from flour,” as well as affordable dishes that are somewhere between a snack and a meal. Some of the most well-known “bunsik” dishes include ramen, blood sausage, spicy rice cakes, and gimbap. “Bunsik” is inseparable from Koreans while being a true soul food that is eaten often since childhood.

 

The most highly recommended dishes of Byeolmibunsik include gimbap, spicy rice cakes, and ramen. These dishes are the top 3 “bunsik.” Most of them cost less than KRW 5,000, making for an affordable meal.

What makes “bunsik” so appealing is that it feels like a snack but it can also make up a whole meal. If you are hungry but don’t feel like having a full course meal, then make sure to check out Byeolmibunsik!

Location: Middle of Transportation Center on 1B, Terminal 2

Hours of Operation: 7:30 a.m.-10:00 p.m.

* Due to COVID-19, there may be some changes in store operations such as shortened business hours and business suspensions.

2) Odengsikdang

As a restaurant specializing in budae-jjigae (kimchi and sausage stew), Odengsikdang serves various types of budae-jjigae. While budae-jjigae is usually served in a big pot from which multiple people eat together, Odengsikdang serves budae-jjigae for a 1-person table.

Odengsikdang’s best dish is the “modeum budae-jjigae (assorted kimchi and sausage stew).” It includes various types of sausage, ham, and other ingredients for a rich taste.

budae-jjigae is a “fusion dish” that was created during the Korean War. It was easy to find sausage and ham near the US Army bases that were stationed during the Korean War. The story behind kimchi and sausage stew is that the sausage and ham tasted too greasy for Koreans, so they boiled gochujang (Korean chili paste) and kimchi together to create this spicy stew that perfectly matches Koreans’ appetites.

budae-jjigae, which combines Western and Eastern cuisines, is loved by many Koreans. As a combination of sausage, ham, and rice in a spicy broth, it is a magical dish that disappears before you know it, right before your eyes! Check out the Korean soul food, budae-jjigae, through which you can feel the history of Korea!

Location: Middle of Transportation Center on 1B, Terminal 2

Hours of Operation: 6:00 a.m.-10:00 p.m.

* Due to COVID-19, there may be some changes in store operations such as shortened business hours and business suspensions.

We have introduced a few Korean restaurants at which you can make great memories in Korea. If you know of an even more delicious Korean restaurant or want to recommend one, please let us know! Hunger never ends, and it is an endless journey to find great restaurants.

 

We hope you experience “true taste” during your travels at Incheon Airport. We will come back with an even more delicious post!

[ICN Business – Logistics #1] Know the logistics to understand the airport


An airport serves as a gateway for transportation while also being hub for business. This is because it has a great impact on the regional and national economies, creating tens of thousands of jobs and driving the development of related industries.

Through this series, [ICN Business], we would like to introduce the lesser-known appeals of Incheon Airport, which takes the lead of businesses such as logistics, Airport Economic Zone, overseas business, hubs, and construction.


Imagine this.

 

What process does a lobster in Halifax, Canada go through to get to the table of a consumer in Korea? The lobster is first captured, loaded onto a mode of transportation, and shipped across borders. It seems easy when said aloud, but there are many hidden steps within this process.

 

What if…

“live lobsters”

are added to this situation? It must not be easy to keep lobsters alive while shipping them all the way to Korea, right?

Incheon Airport boasts extensive and systematic logistics infrastructure that allows for fast and proper shipment of “cargo” including lobsters. It also provides various technical and institutional support. To help you better understand what Incheon Airport does, we would like to talk about the overall concept and flow of “air logistics” in this post.

#1) What is logistics, and why is it important?

Logistics refers to the “flow of objects” between their point of origin and the point of consumption. In other words, it refers to a process that makes it efficient to transport goods produced by the supplier to the consumer. If transported by ship, it is referred to as maritime transport. If shipped by airplane, it is referred to as air transport. Air logistics collectively refers to a broader process that includes the transport of goods.

In a global era where all types of goods and human resources are exchanged across the world, ensuring “logistical competitiveness” itself carries huge implications. Cargo volume increases where logistics are actively supported, and a higher cargo volume leads to more added value and jobs and a vitalized national economy. As of 2019, Incheon Airport’s cargo volume stands at 2.76 million tons, the third largest in the world. The third largest in the world. Amazing, right?

What made this possible? As Incheon Airport is located in the center of the Asia Pacific, it is best positioned geographically as a logistics hub. An amazing fact is that 32% of the global population, or 2 billion people, live within just 2 hours 30 minutes of Incheon Airport by air! This is why Incheon Airport positions itself proudly at the center of international business.

#2) Does Incheon Airport have terminals other than T1 and T2?

Airplanes are divided into “passenger airplanes” and “cargo airplanes,” depending on what they predominately transport. Passenger airplanes are the ones that passengers board. These types of airplanes carry passengers’ luggage, including carry-ons, in the belly cargo on the underside of the plane. Other types of cargo are loaded and shipped separately in cargo airplanes.

 

Passenger airplanes and cargo airplanes stay in different places, respectively. If passenger airplanes come into passenger terminals, where do cargo airplanes go? They come into cargo terminals!

The cargo terminals are located in a place that ordinary passengers cannot easily access. As you can see in the aerial photograph above, they are located in the Free-Trade Zone far away from the passenger terminals.

The Incheon International Airport Free-Trade Zone is garnering attention as the logistics hub of Northeast Asia as it ensures free manufacturing, logistics, distribution, and trade activities, provides rent that is 10-30% cheaper than that in the nearby area, and offers in-bond benefits. It is divided into the Cargo Terminal Area and Airport Logis Park.

The Cargo Terminal Area is the place where cargo is directly loaded into cargo airplanes. Here, security is very important as it borders both the *airside (A/S) and the *landside (L/S).

  • Airside: Area that includes the airport facilities required for takeoff and landing of airplanes such as the runway, landing strip, taxiway, apron, etc.
  • Landside: Area that includes passenger and cargo processing facilities, parking lots/garages, other subsidiary facilities, etc.

The Airport Logis Park is a free-trade zone established to store, package, and ship incoming cargo, supporting imports and exports of air cargo in Korea. It is also referred to as hinterland which facilitates the efficient operation of cargo terminals.

#3) Air logistics flow understood through the “lobster” shipping example

Now that you understand the basic concept, we will explain how cargo is transported from place to place. Let’s get back to the lobster shipping example.

  1. Frozen-packed lobsters are loaded in cargo trucks at a lobster center in Canada and sent to Halifax Airport.
  1. A cargo airplane of ☆☆ Airlines containing the lobsters arrives at Incheon Airport after a 20-hour flight. More precisely, it arrives at the “cargo terminal,” right? Of course, this is not the end of the story.
  1. Next is customs, which is a process that thoroughly checks whether the goods can be brought into the country, and then comes classification within the cargo terminal.
  1. After successfully passing customs, the lobsters move to Incheon Airport Logis Park. They are temporarily stored in a fresh cargo warehouse in Logis Park.
  1. After being re-classified depending on their destination, the lobsters are loaded in cargo trucks and sent to various wholesalers and retailers such as markets and restaurants.

I would like to give lobsters a pat on the back and tell them, “Job well done,” for flying such a long distance and going through this whole process.

In conclusion, today we took a look at the very basics for understanding air logistics, including the basic concept of logistics, logistics facilities at the airport such as cargo terminals and Logis Park, and the overall logistical flow as seen through the lobster shipping process.

 

Next time, we will introduce Incheon Airport Logis Park in greater detail. If you are wondering why the Logis Park is so great, wait for our second post on logistics!