Korean Air is making significant investments to automate cargo handling and enhance storage infrastructure at its key cargo hubs in Seoul and New York, FreightWaves has learned.
The modernization projects are aimed at maintaining competitiveness by boosting operational efficiency and freight capacity, especially as the carrier prioritizes high-value, temperature-sensitive and specialized freight such as pharmaceuticals and cloud computing components.
Korean Air is the tenth-largest cargo carrier in the world by scheduled traffic, according to the International Air Transport Association.It operates 23 freighter aircraft — 11 Boeing 747s and 12 777s — in addition to handling cargo carried by the airline’s passenger fleet.
A comprehensive upgrade of Cargo Terminal 1 at Incheon International Airport is expected to be completed by September, said spokesman Ken Kang-Hee Lee via email. Lödige Industries is leading the installation of a smart logistics system, which includes driverless elevating transfer vehicles and automated guided vehicles. The ETVs are rail-guided vertical storage and retrieval systems designed to transport large containers. The AGVs will move containers on fixed routes between loading docks, storage areas and aircraft, reducing manual handling. Incorporating automated handling equipment alongside AI-driven management systems is increasingly being adopted at leading global cargo hubs, according to industry experts.
Korean Air has also significantly expanded the facility’s cold-storage capacity, with designated space for holding and dispatching temperature-sensitive shipments.
The project is expected to increase annual cargo handling capacity at Incheon by 25%, the spokesman said.
Meanwhile, Korean Air is partnering with Lödige Industries to design and implement a next-generation automated system for its big hub at New York’s John F. Kennedy International Airport. The design calls for two new automated elevating transfer vehicles and expansion of the refrigerated section to handle more perishable cargo. The JFK terminal upgrades are targeted for completion by 2027.
Korean Air has not disclosed how much it is investing in the two modernization initiatives or the specific square footage of the upgraded cold storage rooms.
(Why It Matters: Future-proofing the business will help Korean Air grow business and provide shippers with faster processing times for their goods.)
Korean Air reported cargo revenue in the second quarter grew 46% year over year, primarily driven by global AI investments, such as server racks and semiconductors, and K-beauty exports. Yield increased 41% with only a 3% increase in volume.
On Aug. 12, Korean Air finalized the acquisition of Asiana Airlines.
Click here for more FreightWaves/American Shipper articles by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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