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Case study: Air Cargo Hub – Market Entry Study for Air Cargo Hub in Malaysia

The challenge

A private Malaysian port operator intended to launch an air cargo hub and logistics park adjacent to its passenger air hub to diversify its business.

The objectives of the study were to develop a strategic business proposal through understanding of air cargo volume trends in the region, customer decision dynamics, competitor value proposition and operations (KLIA, Bangkok, Singapore, Hong Kong etc.), as well as its potential customers (air cargo carriers) to facilitate a successful implementation of the plan.

The process

Spire undertook secondary research to identify general market trends in air logistics. Our consultants then held in-depth, face-to-face interviews with air cargo carriers, shipping lines, end-customers of air and/or sea cargo, logistics/industrial park developers, tenants of other logistics/industrial parks and executives of Asian ports and airports.

The results

Spire’s recommended a market entry strategy for the air cargo hub that enabled our client to develop a business plan was successful in gaining management approval for investment.

Project deliverables included:

A holistic market environment report series on the demand outlook for air cargo in the region

Qualified lead generation of air cargo carriers

Suggested value proposition to air cargo customers (pricing and critical success factors)

Recommended approach to developing linked infrastructure such as logistics and industrial parks

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