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The weekly newspaper for air cargo professionals No. 1,018

11 February 2019

Air cargo industry returns to Africa

MSA still top dog Four training centres opened in 2018, three more planned this year

Pages 12-15

INSIDE DEMAND SOFTENS IN DECEMBER

THE global airfreight market grew by 3.5% in 2018 despite soft demand resulting in a fall in December, according to the International Air Transport ... PAGE 4

A330P2F FOR EGYPTAIR

EGYPTAIR Cargo has taken delivery of its second EFW Airbus A330-200P2F conversion, as it upgrades and modernises its fleet ... PAGE 6 AFKLMP RENEWS CEIV PHARMA

SA Security has expanded rapidly in 2018 and plans to open three more US regional training centres in 2019 to keep up with market demand for Explosive Detection Canine Teams. Four new offices and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) licenced canine training facilities were opened in Hong Kong; San Diego, California; Memphis, Tennessee and Orangeburg, New York. The more centres will open in 2019, located in Chicago, Cincinnati and Los Angeles to allow canine-handler teams, known as Windsor Teams to perform operational training and annual certifications on high explosives and homemade explosives.

AIR France KLM Martinair Cargo has become the first major airline group to pass the IATA CEIV Pharma re-certification for airline and airport operations ... PAGE 7

They will be designed to mimic operational environments where cargo searches, vehicle sweeps and bag checks are frequently conducted. Hong Kong will be the first corporate office outside the US, with CEO Glen Kucera saying: “As our global client base grows, we will continue to meet their needs with the most advanced explosive threat detection, protective services, and security solutions in the industry. “Our strategic growth plan calls for further expansion into key regional markets in the Asia Pacific region such as Singapore and Japan. These additional offices will enable MSA to provide quality customer service while also addressing the continuing training requirements of our canines,

handlers and field operatives.” The San Diego office included both corporate office space and a canine training centre covering 603 sq m. The 1,110 sq m canine training centre in Memphis is strategically located next to the USA’s largest air cargo hub, and the ATF licenced facility enables MSA to conduct sustainment training using real high explosive odours in settings that replicate air cargo environments and meet the TSA Third Party Canine programme requirements. The Orangeburg training facility is 15 miles outside of Manhattan, allowing all Windsor Teams in the area to undergo quarterly quality assurance testing on real high explosive odours.

AIRBUS JOINS AIR RACE E

AIRBUS has joined Air Race E, the world’s first electric aircraft race, which is set to launch in 2020, as the official founding partner ... PAGE 8

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Cold chain joint venture to be set up

S CCSF-K9 for K9 Alliance

ingaporean investment firm Commonwealth Capital is to team up with Japanese F&B distribution giant Kokubu Group to develop a South-East Asia focused cold chain logistics joint venture, published sources report. The new company will be called Commonwealth Kokubu Logistics (CKL). The aims is for CKL to leverage of the skill sets of both partners to provide end-to-end supply chain solutions to food retailers and food services firms, in Singapore and the region. The need to go overseas is a prompt to Singapore where the domestic market is small and Japan where population decline has set it. “I cannot over-emphasise the strategic and economic importance of ASEAN markets within the emergent Indo-Pacific to a Singapore company, given the geopolitics of our world in recent times. Our expansion into one of the fastest-growing regions of the world is timely, to say the least,” Capital Commonwelth chairman, Andrew Kwan told the Business Times newspaper. This will include all aspects of food supply chain management from pre-production inventory control to temperature-logged warehousing and last mile delivery, it added

CARGO Screening K9 Alliance’s application and Operational Implementation Plan to become a Certified Cargo Screening Facility – Canine (CCSF-K9) has been approved by the US Transportation Security Administration (TSA). With the approval letter and as a CCSF-K9 regulated entity, CSK9 can begin screening operations at airline and freight forwarder facilities across the USA. In advance, CSK9 deployed 12 full-time Third Party Canine – Cargo certified teams to three Able Freight screening facilities in Los Angeles and San Francisco. Paul Hammond, president of CSK9 says: “Our management team has been working diligently with the TSA for months to become a Certified CCSF-K9. TSA was very responsive in the application approval process in spite of the challenges associated with our large national footprint and geographically separated operations, support offices, and training facilities. We are excited to start operations in the US and abroad to help freight forwarders and airlines meet TSA’s 100% screening mandate and at the same time reduce costs and streamline cargo screening operations.”

Airway Bill’s

2019 looks to be another strong year for ECS

THIS year “already looks set to be a strong year for ECS Group,” says Adrien Thominet, CEO of ECS Group. He describes a “whole host of positive developments designed, as ever, to improve our performance and expand our network.” The Paris-based GSA began a number of projects in the field of transformation in 2018, “many of which have already been completed, and others will very soon be added to our existing offerings,” he says. With the implementation of decision-making tools, this year ECS Group aims to “go one step further” and take a new direction in its digital expansion, with all the positive impacts this brings for clients. “The development of our TCM offering, including a contract with NokScoot launched on 1 January and a contract with TUI launched on 5 February, with the creation of TCE by ECS Group is a valuable new addition to our group, and 2019 is set to cement its long-term foundation. With TCE, we have significantly bolstered our operational expertise. Just like an airline, ECS Group is now capable of managing all operational aspects of cargo, most notably procedures linked to quality, safety and security, meaning that the services we provide bring real added value compared to our competitors,” says Thominet.

Quote of the week

“Brexit seems to be such an issue in our business; like the Year 2000, everyone wondering if the computers would switch back to zero” Stephen Dawkins, CEO Air Logistics Group

Page 3

Piloting a plane? It’s child’s play BRITISH Airways is giving children a unique insight into a career in aviation by holding a two day event, letting them take controls of an aircraft and try out safety demonstrations with cabin crew. The event was hosted by British Airways and the KidZania activity centre in London’s Westfield shopping centre, with more than 1,500 children from 19 schools visiting the Aviation Academy. The children were provided with replica uniform and taught on board a British Airways Airbus A319, learning important

The partnership taps Kokubu’s experience in running 279 food logistics centres in Japan, delivering items from 10,000 food manufacturers to 35,000 customers and exporting to 54 countries CKL is now reviewing potential sites in the region for a network of food logistics centres, for an unbroken cold chain in ASEAN markets. In Singapore, CKL will optimise fleet performance with route-planning technology and consolidation. The JV is looking to tap Kokubu Group’s existing partnerships with Japanese e-commerce companies to develop the e-commerce services in the region. Officials at the company were not immediately available to take questions from reporters.

skills about flight. They received a lesson on the flight deck simulator where they were given the opportunity to fly around London and land at Heathrow Terminal 5. The British Airways Aviation Academy is the most popular activity with children visiting KidZania. Mel Rose, community education manager at British Airways says: “Last year 600 students took part in our work experience programme across 30 departments at British Airways, and this year we will host more young people than ever

before.” Rachel Woods, head of brands development at KidZania says: “The British Airways A319 aeroplane is a big hit in the city, and it was fantastic to have ambassadors offering insights into their careers through a STEM-based interactive activity. The workshop offered hands-on opportunities to support and inspire key-stage 1-3 children through real life experiences.”

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“From our perspective, while the Asian market shows some signs of weakness, there are currently no other signals that give reason to believe that the market will fall in 2019. In our view, these issues are isolated (Brexit and US/China trade tariffs in particular) rather than structural.”

ACWBITES

CARGOLUX Airlines International closed its first Japanese operating lease with call option (JOLCO) transaction for a Boeing 747-400 Freighter on 29 January. Credit Agricole CIB acted as overall arranger, facility agent and lender, and DVB Bank is co-lender. Allen & Overy acted for Cargolux while Norton Rose Fulbright acted for the lenders. The transaction is the first of its kind for Cargolux in the Japanese market. TURKMENISTAN Airlines has been banned from flying to and from the European Union by the European Aviation Safety Authority “pending confirmation that it meets international air safety standards”. The Ashgabat-based airline operated European flights to Frankfurt, Paris Charles de Gaulle, London Heathrow and Birmingham. Offering connections to the Asian cities of Amritsar, Delhi, Bangkok and Delhi via the capital of Turkmenistan. TURKISH Cargo will start carrying out simultaneous operations at the new Istanbul Airport and Ataturk Airport on 2 March. Passenger aircraft with cargo capacity will operate from the new airport with freighters continuing to fly from Ataturk. Turkish Cargo will carry out operations in an area of 165,000 sq m during the first phase, and will have a cargo capacity of four million tonnes once all phases are completed.

ACW 11 FEBRUARY 2019

Demand softens in December THE global airfreight market grew by 3.5% in 2018 despite soft demand resulting in a fall in December, according to the International Air Transport Association (IATA). The growth in freight tonne kilometres was significantly lower than 2017, when it was 9.7%, with performance being sealed with a fall of 0.5% in December, the worst performance since March 2016. International e-commerce grew in 2018 but there was softening demand due to the restocking cycle where businesses rapidly built up inventories ending in early 2018, global economic activity weakening, export orders contracting in the second half of 2018, and consumer confidence falling. Capacity rose by 5.4% in 2018, outpacing growth in demand, and it grew by 3.8% in December, the 10th month in a row that capacity growth outstripped demand growth. Alexandre de Juniac, director general and CEO of IATA says air cargo demand lost momentum towards the end of the year but still grew by 3.5%. He says: “We are cautiously optimistic that demand will grow in the region of 3.7% in 2019. But with the persistence of trade tensions and protectionist actions by some governments there is significant downside risk. Keeping borders open to people and to trade is critical.” De Juniac adds: “To attract demand in new market segments, the air cargo industry must improve its value proposition. Enabling modern processes with digitalisation will help build a stronger foothold in e-commerce and the transport of time- and temperature-sensitive goods

ACW 11 FEBRUARY 2019

such as pharmaceuticals and perishables.” Demand in Asia Pacific was down 4.5% in December due to slower demand for exports from China, Japan and Korea, alongside a moderation in economic activity in China and an escalation of trade tensions posing a risk to air cargo in the region. North America posted the fastest growth for the 7th consecutive month in December, up 2.9% due to the strength of the US economy and consumer spending helping support the demand for air cargo, benefiting US carriers. Europe grew by 1.9% in December and 3.2% for the year, but weaker manufacturing conditions for exporters, particularly in Germany, along with mixed economic indicators impacted demand in 2018. The Middle East was up 0.1% in December and 3.9% annually, with the region being affected by geopolitical issues. Latin America decreased 0.1% in December following three months of growth. African carriers saw freight demand decrease 2.2% in December.

WorldACD: Double whammy of falling volumes and yields LAST year ended with a “double whammy” of falling volumes and declining yields following the strong start of the year, WorldACD reports. Air cargo volumes for 2018 were up 2.2% compared to 2017, with growth of 3.7% between January and August, which WorldACD says was good considering how strong 2017 had been. From September to December, it says things looked “much less positive”, with volumes decreasing 0.6%. The last week of 2018 was “particularly worrisome” with volumes down 10% on 2017, with larger regions such as Asia Pacific, Europe and North America dropping by larger percentages than smaller markets. For the market in the limelight, China/Hong Kong to the US was down 3.6% in December, which was better than China/Hong Kong to the world, down 4.8%. In the opposite direction the picture was dif-

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ferent, USA to the world was down 3.4% but declined 8% to China/Hong Kong. Negative volume growth and lower yield growth pushed down December airline revenue 5.6% in US dollars and 1.9% in Euros. Between January and August, US dollar yields increased 15% year-on-year but slid down to 4.2% between September and December. WorldACD says this was in line with fluctuations in the oil markets, with jet fuel becoming rapidly more expensive in the months leading up to September whilst going down in the later part of the year. A significant development in 2018 was the recovery of origin Central and South America, with outgoing volumes increasing 8.4% and US dollar revenue growing 16%. Among the air cargo categories, pharmaceuticals lead the way with 14.8% growth, followed by dangerous goods and vulnerable/high tech at 7.7% each while perishables were down 0.2%.

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WFS expands presence in Brussels

orldwide Flight Services (WFS) has opened an ultra-modern 8,700 m2 logistics building Brussels Airport, eight months after laying the first stone. On 1 February, Brussels Airport Company, WFS and developer Montea inaugurated the logistics building to the west of the airport’s cargo zone.

The new building is part of an ambitious development project within Brussels’ cargo zone, with a 50,000 sq m being built in the coming months and €100 million being invested in the cargo zone over the next two years. Arnaud Feist, CEO of Brussels Airport Company says: “Brussels Airport once again confirms its role as a hub for logistics activities in Belgium and Europe. These developments allow us to support the many companies that increasingly use Brussels airport for importing and exporting goods to and from the entire world, and this in an even more efficient and effective manner.” Marc Claesen, regional vice president WFS Northern Europe says: “For WFS, this new cutting-edge complex will allow us to continue to offer our clients efficient services with the best requirements in terms of safety and security while meeting the modern requirements of e-commerce and air transport of pharmaceutical products.”

Second A330P2F for Egyptair

EGYPTAIR Cargo has taken delivery of its second EFW Airbus A330-200 passenger-to-freighter conversion, as it upgrades and modernises its fleet. The 13-year-old aircraft, MSN709 was flown from Dresden, Germany to Cairo, Egypt and ground tests and acceptance procedures were successfully finished on 31 January. The A330 replaces older A300-600P2F, and offers better range, volume and payload charac-

teristics than the A300. EFW says it is happy to have performed its fourth A330 conversion after successful STC approval at the end of 2017 on the A330-300 for launch customer DHL, and the STC for the A330200 was released in mid-2018 for Egyptair Cargo. The event marks the slot-in for the third aircraft of its kind, with MSN709 making space for MSN610, which has already gone through paint stripping and systems removal.

Nippon Cargo embraces Descartes’ ACAS solution

NIPPON Cargo Airlines has deployed Descartes’ Air Cargo Advance Screening solution to meet mandatory advanced security filing requirements for air cargo imports to the USA. ACAS is a joint US Customs and Border Protection (CBP) and Transportation Security Administration (TSA) programme that requires data be submitted prior to loading at a foreign airport. On 12 June 2018, ACAS became mandatory for air forwarders and carriers following the conclusion of the voluntary compliance ACAS pilot programme. The Descartes ACAS product consolidates mandatory ACAS data from multiple sources, checks that it conforms to CBP’s ACAS message formats and submits those documents to CBP once they have passed all validations. The solution uses the Descartes Global Logistics Network to manage the flow of master and house bill information to file directly to CBP without manual intervention, increasing data accuracy and timeliness. Keita Sataka, senior vice president of Nippon Cargo Airlines says: “Descartes has a strong history of providing NCA and the air cargo industry with customs and security filing technology, and their ACAS solution provides a proven, reliable, cost effective way to meet data collection and submission requirements.” Scott Sangster, vice president Global Logistics Network at Descartes says: “Air cargo transportation is a vital part of the growing international logistics market, and Descartes’ solutions help carriers, like NCA, and other stakeholders in the air cargo community accelerate the movement of freight while meeting important security initiatives worldwide.”

Panalpina rejects DSV offer PANALPINA has rejected a takeover bid by DSV after its largest shareholder informed the board of directors that it does not support the proposal. DSV made an unsolicited and non-binding proposal to acquire Panalpina for 170 Swiss francs per share through a mix of cash and shares on 16 January. Panalpina’s largest shareholder, the Ernst Goehner Foundation, which represents 46% of the total capital share told the board of directors it does not support the proposal and it supports the board in pursuing an independent growth strategy that includes mergers and acquisitions.

ACW 11 FEBRUARY 2019

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Full bellies but fewer freighters flying from Schiphol

argo volumes at Amsterdam Airport Schiphol decreased 2.5% in 2018 with increased belly cargo making up for declining freighter traffic. Schiphol handled 1.7 million tonnes of cargo in 2018, with belly cargo increasing 4.1% while full freighter volumes were down 7% with full freighter movements decreasing 10.4%. Total flight movements at Schiphol were 499,444, just below the slot capacity of 500,000, a figure that is expected to remain steady throughout 2019. Maaike van der Windt, director aviation

marketing, cargo and customer experience at Schiphol says: “In 2018, despite a slight decrease in overall freight volumes, we built on a number of initiatives that enhance the experience of our pharmaceutical, e-commerce, and perishables customers, and our continued commitment to quality is having positive results.” She adds: “We experienced a year of ups and downs in 2018, and in 2019 we will continue to focus on close collaboration with our cargo community through the Smart Cargo Mainport Program to pursue ambitions such as an increase in digital information exchange and quality improvements in the supply chain.”

AFKLMP renews CEIV Pharma certificate AIR France KLM Martinair Cargo (AFKLMP) has become the first major airline group to pass the IATA CEIV Pharma re-certification for airline and airport operations. The group set industry standards in February 2016 with certification for airport operations in Amsterdam and Paris, as well as the Air France and KLM airline operations. AFKLMP reconfirmed its focus on the pharmaceutical business, not only investing in its digital transformation but also increasing its quality standards and cool chain solutions. Marcel de Nooijer, executive vice president of AFKLMP says: “Pharma is a top priority for our airline group. In an increasingly demanding environment, this certification reconfirms our commitment to offering the highest possible quality standards in support of our

customers’ business activities.” Enrica Calonghi, global head of pharmaceutical logistics at AFKLMP says: “IATA CEIV Pharma re-certification confirms that our group aims to position itself not only as a leader in innovation and transparency, but also through putting care into healthcare by continually improving our processes and facilities.”

ACWBITES THE British International Freight Association (BIFA), the trade association for UK freight forwarding and logistics companies, has launched a dedicated website –apprentices.bifa.org - that will focus on helping both employers and potential recruits to better understand apprenticeship opportunities in the freight forwarding industry. Carl Hobbis, BIFA’s Training Development Manager, says: “BIFA has committed to promote the availability of the new apprenticeship and encourage employers and potential entrants to consider this apprenticeship as a route into the industry.” SWISSPORT has postponed collecting the remaining unpaid balance of its affiliate loan to HNA Group while the Chinese owner assesses options for the company. The Swiss handling agent received a partial payment of €83 million from HNA Group in May 2018 in partial satisfaction of HNA’s obligation under an outstanding affiliate loan. Swissport agreed to forbear for a period of five months from exercising remedies to collect the remaining balance of around €286 million. The agreement was continued in October 2018 and will be further continued while HNA concludes its review and assessment of strategic options for Swissport. Swissport will continue to earn a market interest rate on the residual amount of the affiliate loan. AMERICAN Airlines has taken delivery of the first of 100 A321neos on order from Airbus, powered by CFM LEAP-1A engines. MSN8647 departed Hamburg, Germany on Friday 1 February for the trans-Atlantic ferry flight to Pittsburgh where technicians will get it ready for customer flights.

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Airbus joins Air Race E

irbus has joined Air Race E, the world’s first electric aircraft race, which is set to launch in 2020, as the official founding partner. The competition aims to drive the development and adoption of cleaner, faster and more technologically advanced electric engines that can be applied to urban air mobility vehicles and eventually commercial aircraft. Air Race E will follow a similar format to Air Race 1, with eight electric-powered aircraft racing each other on a five kilometre circuit just 10 metres above the ground, faster than any landbased motorsport. Grazia Vittadini, chief technology officer at Airbus says: “We want to motivate manufacturers to showcase their technologies across the full spectrum of electric propulsion systems and components. This partnership enables us to demonstrate our commitment to staying at the leading edge of electric propulsion and developing a new ecosystem.” Jeff Zaltman, CEO of Air Race E says: “This partnership is a significant milestone in the evolution of electric power in aviation. Together, we’re working to create a mainstream platform in which innovation in electric propulsion can be developed, nur-

tured, and accelerated more rapidly.” Airbus will work alongside other partners including the University of Nottingham, which is developing a prototype race

aircraft powered by an integrated electric motor, battery and power electronics system. The aircraft will help shape the model and rules for the inaugural series in 2020.

2.5% growth for Anchorage

TED Stevens Anchorage International Airport grew by 2.5% to 2.8 million tonnes in 2018 helped by its location between the world’s two largest e-commerce markets. Airport manager Jim Szczesniak says: “Global growth and e-commerce in particular are the driving force behind our solid numbers. In 2018 the airport secured new air cargo airlines and that helps grow our cargo numbers. We are also seeing a lot of growth using Anchorage to connect Latin America and Asia. The perishables market between those two regions is really exploding and Anchorage is strategically located between those markets. Airlines can pair fresh Latin American fruit with some fresh, wild caught Alaskan salmon or king crab and send a balanced meal to Asia.”

Oman Air Cargo hosts annual award ceremony

OMAN Air Cargo, the cargo division of Oman Air, the national carrier of sultanate of Oman, held its annual awards ceremony on 23 January 2019 at the Crowne Plaza Muscat. The Oman Air Cargo Awards recognise the outstanding achievements among the Cargo Division’s local agencies, and also acknowledges the company’s close partnership with the public-private establishments. Mohammed Al Musafir, senior vice president, Oman Air Cargo – Commercial, said: “We are on the path of achieving the goals set by our Group Company in line with the 2040 vision for Oman, in which the logistics industry has become an integral element of Oman’s future development plans. 2018 has been a successful year for Oman Air Cargo with a year on year growth in terms of revenue.” Paul Starrs, chief commercial officer of Oman Air commented: “Our ever-expanding network and fleet has helped us in catering to the needs of our customers with more than 100 flight departures per day from Muscat. As we continue with our expansion plans, 2019 already brings us more opportunities in terms of capacity and new destinations. In addition to our existing 53 destinations across the world, we will be launching new routes to Athens, Alexandria, Baku and Khartoum during 2019.” During the awards ceremony Oman Air Cargo presented its new innovative solutions “Cargo Mobile Application”, the cargo management function that is managed through the “SmartKargo” system. The cloud-based system offers a robust set of tools providing reliable, transparent, and real-time information to Oman Air customers throughout its logistics chain, from acceptance to delivery. The management system provides more flexibility and makes it easier for customers to manage their bookings, space confirmation, pricing queries and responses whilst on the go.

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Emirates SkyCargo and DuPont celebrate 10 years of success EMIRATES SkyCargo and DuPont Safety & Construction have celebrated the 10th anniversary of their partnership for cold chain solutions in the air cargo industry. The two companies launched their partnership when they released the Emirates SkyCargo White Cover – the first pallet cover made with Tyvek that revolutionised cold chain protection of temperature-sensitive products in transit. The Emirates SkyCargo White Cover provided a cost-effective solution for the cold chain industry relating to thermal protection, gas permeability, ease-of-use and installation, and recyclability. In 2016, Emirates SkyCargo introduced White Cover Advanced for protecting temperature-sensitive shipments, in particular pharmaceuticals, followed up with the launch of White Cover Xtreme in August 2017. Rose Lee, president of DuPont Safety & Construction says: “Du-

Luiza Cantanhede, global marketing manager, Tyvek Cargo covers, DuPont Safety & Construction and Zeeshan Haris, Emirates Cargo product development manager

dnata ups shares in forwarder partners

DNATA has strengthened its position in the UAE and international freight forwarding industry by increasing its ownership in two of its joint venture companies. It has purchased a 50% stake in Dubai Express, Freightworks and a 25.5% stake in Bollore Logistics UAE from Kanoo Group. As a result of the transaction, dnata is now the sole owner of Dubai Express, Freightworks and holds a majority stake of 51% in Bollore Logistics UAE.

The parties have not disclosed the details of the transaction, and the current leadership teams will continue to manage the business and operations. Bernd Struck, senior vice president UAE cargo and DWC Airline Services for dnata, and chairman of Freightworks and Bollore Logistics says: “This strategic investment underlines dnata’ s commitment to the freight forwarding industry and its growing importance. We are driven to provide superior services to the regional market as well the worldwide network of Bolloré Transport & Logistics as their regional partner.” Freightworks, operating under the licence of Dubai Express is an international multimodal freight forwarders, logistics and supply chain provider. Bollore Logistics UAE, which will continue to operate as part of Bollore Transport and Logistics, offers multi-modal transportation, customs and compliance services, supply chain management and industrial projects.

PEMCO launches 737NG conversions PEMCO Conversions has announced a Boeing 737-700 Next Generation passenger-to-freighter conversion programme. Chisholm Enterprises will be the launch customer, with subsidiary Texel Air intending to operate the 737-700F from Bahrain International Airport. The aircraft will be modified at PEMCO’s headquarters in Tampa, Florida

during the second quarter of 2019. The company will amend its pending application with the US Federal Aviation Administration for supplemental type certification, and then PEMCO plans to certify the programme with the European Aviation Safety Agency and the Civil Aviation Administration of China.

Pont is extremely proud of our partnership with Emirates. We have been on our partnership journey for 10 years together, creating innovative solutions that are leading the cold chain space.” Dennis Lister, vice president of cargo commercial development at Emirates says: “Our partnership with DuPont has been very fruitful and has resulted in the development of the revolutionary White Cover range of products. Over the years we have improved the functionality of the White Cover and have released enhanced versions including the most recent White Cover Xtreme, providing an excellent first level of protection for cargo.” Steve Brabbs, global technical leader of DuPont Tyvek Cargo Covers says Emirates has been an ideal partner, saying: “When they bring us a new problem, they sit down with us to collaborate in a very open way, so that we can find solutions which work for them technically, practically and economically.”

dnata optimises resources in Dubai DNATA has launched a resource management system in Dubai to optimise operations and manage employees and resources at Dubai International and Dubai World Central. The resource management system is expected to significantly enhance operational efficiency, improve employee productivity and support better on-time performance. The platform will allow dnata to apply innovative technologies in its operations including artificial intelligence-driven solutions and autonomous vehicles. The system will be gradually implemented across dnata’s ground handling and cargo operations from June 2019, with the technology being provided INFORM. Steve Allen, divisional senior vice president UAE airport operations for dnata says: “Innovation is at the heart of dnata and is key to deliver the next generation airport experience in Dubai. Our new, cutting-edge resource management system will enable us to plan and manage the world’s largest ground handling

Schmidt (left) with Allen operations at a level never seen before in the industry.” Thomas Schmidt, director airport systems for INFORM says: “For over 20 years, we have worked closely with dnata and supported the successful growth of its ground operations at Dubai International Airport. We are proud of this long-term relationship. With this project we will provide dnata with the latest technology and an expert, Dubai-based team.”

Cargojet acquires Mirabel handling firm CARGOJET has purchased a ground handling and GSE company at Montreal’s Mirabel International Airport for C$3 million, including all company assets and lease agreements. CEO Ajay Virmani says: “The acquisition of this ground handling and GSE company is the continuation of our strategic initiative to insource all ground handling operations at air-

ports across our Canadian network. “We are pleased to welcome our new team members to the Cargojet family and look forward to integrating and growing our business at Mirabel and across the country by continuing providing our customers continued best in class air cargo service and reliability.”

Kerry Logistics looks to blockchain to digitise document exchange especially when Internet of Things applications are put to use.” Dr Paul Sin, leader of Deloitte’s Asia Pacific Blockchain Lab says document digitalisation is a “groundbreaking step” in the transformation of the logistics industry. He says: “In addition to facilitating document coordination, DLT speeds up approvals, provides updated and secure data for informed decisions, and offers a source of truth for all participants, especially banks, insurance companies, and other financial institutions. We therefore expect even greater benefits from DLT applications for shippers, forwarders, carriers, and other players at large in the future.” Lionel Louie, chief commercial officer of CargoSmart says: “With a single source of truth, it simplifies the documentation process and accelerates the data exchange across multiple parties, creating a better end-to-end supply chain journey for users in the near future.”

KERRY Logistics, Deloitte and CargoSmart are leveraging blockchain to digitise document exchange between forwarders and carriers to enhance efficiency across the shipping industry. The three companies have connected multiple distributed ledger technology (DLT) networks for a platform to enhance efficiency for the shipping industry by digitising document exchange, as well as improving traceability of shipping documents. Completed in December 2018, the platform’s proof-of-concept is usable across different DLT and cloud networks commonly used by participants in global trade and finance. Wilson Lee, group director of information technology at Kerry Logistics says the ledger could simplify transactions in logistics operations. He says: “When we eliminate redundant processes, we can bring new benefits to our customers and to the planet, which has always been one of Kerry Logistics’ beliefs. Blockchain is more than cryptocurrency, it is the future of logistics,

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DHL renews contract with World Endurance Championship DHL Global Forwarding has renewed its contract with the FIA World Endurance Championship to ship racing cars, equipment and materials to overseas events. The contract renewal was signed by Thomas Nieszner, president and global head of motorsport at DHL Global Forwarding, Pascal Dimitri, operations director of the WEC, and Stephane Andriolo, marketing director of the Automobile Club de l’Ouest at the DHL Innovation Center on 23 January. As the official logistics partner of the WEC, DHL is responsible for shipping all of the teams’ motorsport materials and equipment to overseas events. This includes 34 racing cars, two safety cars, TV equipment and assorted organisational material, as well as 10,000 tyres, 198,000 litres of fuel and or equipment. Nieszner says: “Our motorsport logistics team ensures that everything is in place for every race. For each overseas race of

From left to right: Thomas Nieszner, Steffen Vollmer, Pascal Dimitri and Stephane Andiolo

the WEC, DHL carries more than 800 tonnes of sea freight plus around 50 ad hoc shipments.” Dimitri adds: “Coming to DHL’s Innovation Center has confirmed to us that we have the perfect partner to work alongside. Endurance racing has always looked towards tomorrow’s technologies as DHL is doing in their Innovation Centers. The trends that DHL has identified, and the logistics innovations it has introduced already will undoubtedly have a positive impact on the WEC’s logistics operations as we move forward.” Since the early days of the racing series, DHL has taken control of the logistics, from organising and booking chartered aircraft, seafreight and road transport to the documentation and coordination, monitoring and management of ad-hoc shipments at the race tracks. The first race of the 2019-2020 season will start on 1 September 2019 at Silverstone, UK.

DHL consolidates humanitarian services Brazil-US medical service launched

DHL Global Forwarding has consolidated its portfolio of humanitarian logistics services within its first Global Competence Center for Humanitarian Logistics in Dubai. The centre will see close coordination across all DHL business divisions, and will be led by Fatima Ait Bendawad, a seasoned DHL manager with 15 years of experience in humanitarian operations. It will offer non-government organisations, aid agencies and their suppliers and manufacturers a broad range of services including air and ocean freight, customs clearance, warehousing and local distribution of humanitarian

shipments. Organisations can also use the centre to tap into DHL Global Forwarding’s global network of freight connections, as well as sector specific services including temperature-controlled and cold-chain shipments for life sciences and healthcare. Amadou Diallo, CEO of DHL Global Forwarding, Middle East and Africa says: “The impact of conflicts and natural disasters on the world is evident and at DHL Global Forwarding, we have the capability, expertise and global network to render resilient logistics support to organisations who are highly committed to ensure that critical resources are delivered, to meet the needs of those who require them.” DHL has extensive experience in disaster management activities, including deploying Disaster Response Teams to provide on-ground logistics support in natural disaster zones, and the Get Airports Ready for Disasters programme to prepare airport management for logistics issues. Bendawad says: “Our work on the front line, has helped us build and maintain familiarity with the nuances of compliance, regulation and international standards that apply to movements of critical goods.”

A weight off West Atlantic’s shoulders WEST Atlantic Sweden has gone live with CHAMP Cargosystems’ Weight & Balance service to manage load planning functions of its Boeing 767-200SF. The 767 will operate out of Cologne, Germany, and there was a need for a stand-alone weight & balance system that included load planning. West Atlantic turned to CHAMP to meet the need for a solution, and CHAMP’s Weight & Balance system was demonstrated, signed and delivered within a four-week period.

Old News Etihad flies Picasso treasure

24 November 2008

man with perhaps the best ‘special care’ airfeight story to tell at ACF 2008 was Des Vertannes, vice president cargo at Abu Dhabi-based Etihad Airways, who was in Kuala Lumpur with his team from the airline’s Etihad Crystal Cargo airfreight division.

ACW 11 FEBRUARY 2019

Magnus Karlsson, flight operations manager at West Atlantic Sweden says: “The switch-over happened without experiencing any issues. We are delighted at the speed at which this project was delivered.” Nicholas Xenocostas, vice president commercial and customer engagement at CHAMP Cargosystems says: “We were thrilled to have supported West Atlantic Sweden at a time of critical need by deploying our CHAMP Weight & Balance solution.”

Earlier this year Etihad Crystal Cargo handled the very special transportation of over 200 priceless paintings by modern master Pablo Picasso, between the Musee National Picasso in Paris and Gallery One at the showcase Kempinski Emirates Palace Hotel in Abu Dhabi. After negotiations at government level, it was decided that Etihad Airways would handle the outbound bellyhold shipment of the paintings and then their return to Paris after four months on display in Abu Dhabi. Etihad Crystal Cargo worked with a series of partners - including liaising with Customs and police authorities in France and Abu Dhabi - to

DHL Medical Express Service has been launched between Brazil and the USA for customers in the pharmaceutical and clinical research sectors. The service was piloted in Brazil in November 2018 to address customer demands for faster and more predictable lead times, given the regulatory complexities that can delay exports. The medical service lets DHL manage the export and regulatory requirements for urgent shipments with specific temperature needs from several major Brazilian cities to most US destinations in 24 to 48 hours. Service points in Brazil have been upgraded and validated to meet federal, state and city regulations around Ministry of Health and Sanitary controls and licencing requirements. Mike Parra, CEO of DHL Express Americas says: “The launch of this service in Brazil completes our ambition to offer logistics solutions in the Latin and South American countries where most clinical trials are conducted. Our strong international network, compliant certifications and combination of responsiveness, reliability and cost-effectiveness will enable this service to be advantageous to all stakeholders in the clinical trial value chain.” The implementation of the DHL Medical Express Service clinical trial platform at DHL

Express Brazil includes a dedicated Customer Service Center with bilingual staff and an onboarding team to support investigator sites. The service includes dry ice supplies and temperature-controlled fulfillment, online tools for placing bookings and ordering supplies, and a web-based interface that connects sites. Brian Bralynski, director of life sciences healthcare Americas at DHL Express says: “Given the complexity of regulatory requirements in Brazil, our technology solution pre-prepares many of the necessary documents required by investigator sites to complete, while enabling DHL to begin the export and fiscal approval process the day-of- booking to mitigate delays.”

Cripps new appointment at Cargo Flash

LESLEY Cripps has been appointed as sales director at Cargo Flash. She is an aviation industry professional with over 30 years of sales, commercial and operational experience working within the cargo aviation industry for multiple major players, having held a number of key positions contributing to a broad understanding of the industry. She has a proven track record of sales growth in all positions combined with excellent networking skills. She started her career with Singapore Airlines where she developed her understanding

carefully pack and then move the Picasso artworks by ground and air transportation from their permanent home in Paris via Charles de Gaulle and Abu Dhabi airports to the Emirates Palace Hotel, where they went on public display. Describing the very carefully planned and executed series of air cargo movements as the “highlight of the year,” Vertannes noted: “With a name like Picasso involved with the shipment it goes to show show that behind every airfreight sconsignment there really is a story to be told.” He added: “And the whole thing was a wonderful feather in the cap for the airline and its air freight team.”

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for operations and excelled; with a passion growing for the cargo industry progressed into sales with Martinair at that time a global cargo operator. “Lesley is well respected and an experienced professional within the Aviation Industry. We are glad to have her onboard with Cargo Flash,” says Rahim Bhimani, CEO of Cargo Flash. Within Cargo Flash she will be responsible for handling sales and business development activities and adding value due to her vast experience in the air cargo industry.

Vertannes in 2017

Revenue grows for UPS but profits hit by pension charge

ourth quarter revenue for UPS increased by 4.6% but net income fell due to a mark-to-market non-cash aftertax pension charge of more than $1.2 billion. Revenue was $19.8 billion with average revenue yield expanding 4.1% with gains across all products. Net income was down from $1.1 billion in the fourth quarter of 2017 to $453 million due to the pension charge totalling $1.237 billion. On an adjusted basis, net income was $1.69 billion. David Abney, chairman and CEO of UPS says: “We achieved our 2018 adjusted earnings-per-share goal by successfully executing Transformation investments and initiatives that lifted revenue quality and improved efficiency. Our diverse portfolio, global footprint and flexible network position UPS for profitable growth in 2019 and beyond.” US domestic revenue was up 6.3% to $12.5 billion but operating profit was down from $1.08 billion to $999 million. The segment delivered more than 21 million packages on average per day with revenue per piece increasing 4.8%. Premium Next Day Air revenue grew more than 10% with volume growth of 7.8%. International revenue expanded 2.9% to $3.8 billion with

operating profits growing 6.3% to $781 million driven by growth, revenue yields and disciplined cost control. Revenue per piece increased 1.7%, with international domestic products up 7.8% and exports by 3.6%. Abney says: “Our International segment produced record results highlighted by double-digit profitability in Europe. Our broad portfolio, diverse revenue base and flexible network help buffer the impacts of global economic softening. These strengths

also position UPS to help customers navigate the current complexities of global trade.” Supply chain and freight revenue stayed stable at $3.4 billion, though operating profit was down from $241 million to $224 million. Subsidiary Coyote Logistics, brokerage and international freight made significant contributions to operating profits. Revenue was up 7% with growth in the healthcare, aerospace, retail and manufacturing sectors.

Pilots launch lawsuits against Atlas Air

ATLAS Air pilots have filed two lawsuits against their employer after an instructor was fired and to stop illegal subcontracting of flights. On Friday 1 February, Teamsters Local 1224 on behalf of and in conjunction with Atlas Air captain Kristofer Lang, who served as a Crew Training Instructor (CTI) filed after Captain Lang was unlawfully retaliated and fired for providing a testimony in support of the pilots’ union and against Atlas Air and Polar Air Cargo. The complaint calls for preliminary and permanent injunctive relief and names the union representing Lang – the International Brotherhood of Teamsters and its local, Airline Professionals Association Teamsters Local 1224 – as plaintiff. In 2017, the company initiated a lawsuit claiming the union was orchestrating a “slowdown” by instructing pilots to make false fatigue calls to remove themselves from duty and piloting aircraft. As a CTI, Lang testified in federal court that the company’s claim was false, and shortly afterwards saw his role greatly diminished until he was fired in October 2018. The complaint alleges this was for discriminatory and retaliatory reasons, motivated by an intent to punish Lang for testifying against the company in the preliminary injunction hearing, and seeks reinstatement. Captain Daniel Wells, an Atlas Air pilot and president of Teamsters Local 1224 says: “Captain Lang’s brave testimony in the 2017 hearing laid bare the company’s mendacity. He stood up for truth, and as a result the company terminated his position as an esteemed crew training instructor. Every worker in every workplace should be able to speak out without fear of retaliation; that is a basic workplace right. By filing this lawsuit, we hope that Atlas Air and Polar Air realise they can’t get away with this kind of egregious behaviour.” Also, the union filed a complaint to confirm an award it received in November dealing with subcontracting of passenger services. The arbitrator ruled in favour of the union and ordered the company to cease and desist from subcontracting any passenger flight. If Atlas Air wishes to do this kind of flying, the union says the company’s management must negotiate, and protect customers to ensure spare aircraft are available.

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ACW 11 FEBRUARY 2019

AIR CARGO AFRICA PREVIEW

Pushing the frontiers of African airfreight a The 5th three-day biennial air cargo Africa event, staged at the Casino Convention Resort, Emperor’s Palace in City of Ekurhuleni is looking to examine the liberalisation and modernisation of African airfreight

he past four events the show has seen major participation from world players as well as key players from the African airfreight community. Africa is known as an emerging market and many that have been in the business for years have recognised this event as a platform for effective networking, turning this market into an exciting and absorbing frontier

for new opportunities. Since the first staging of the event in Nairobi, Kenya the three-days have become associated with networking between those serving the market and players who wish to enter it. The event is now under the control of well-established industry event company Messe München. According to founding media company STAT

Times: “The world will gather with an insatiable appetite for the continent’s untapped natural resources, vast supplies of minerals and of course the ever-increasing demand for consumer goods. Airlines and freight companies know all too well that the potential in Africa is underutilised. In fact, the business world sees Africa as a new pasture. “An enormous continent with 20% of the world’s surface area and holds 15% of the global population certainly presents phenomenal opportunities. According to IMF (International Monetary Fund) data, sub-Saharan Africa has grown at an annual rate of 4.8% over the last five years, beating other emerging regions like Latin America (3.3%).” Visitors, who are expected from around the

world, will enjoy a conference, exhibition and awards ceremony for existing airfreight players in the continent and those who want to extend services there. The programme schedule, correct at time of writing, develops its themes of liberalistion and modernisation of the continent’s airfreight industry. It is meant to be a showcase of the opportuntities offered by the diverse range of nations that make up the continent.

Under the auspices

In a significant move this year, noted German events company and organiser Messe München has taken control of air cargo Africa. Gerhard Gerritzen, member of the management board of Messe München, said: “We are

Speakers in good voice at Participants on the various panel discussions will all bring their own expertise and knowledge to air cargo Africa 2019.

Glyn Hughes - Global Head of Cargo, IATA Steven Polmans - Head Of Cargo And Logistics, Brussels Airport Company Peter Gerber – CEO, Lufthansa Cargo Omar Talal Hariri – CEO, Saudi Cargo Turhan Ozen - Chief Cargo Officer, Turkish Airlines Guillaume Halleux - Chief Officer Cargo, Qatar Airways Emir Pineda - Manager - Aviation Trade & Logistics Marketing Division, Miami Dade Aviation Department Tewolde Gebremariam - Group Chief Executive Officer, Ethiopian Airlines Sanjeev S Gadhia - Founder And CEO, Astral Aviation Adrien Thominet - Chief Executive Officer, ECS Group Jan De Vegt - Chief Operating Officer, Kenya Airways David Logan - Chief Executive Officer, South African Association of Freight Forwarders Pukhraj Singh Chug - Managing Director, Group Concorde Steven Verhasselt- Commercial Director, Liege Airport. Marcel Fujike - Senior Vice President, Kuehne + Nagel Slavey Djahov - Regional Head Of Airfreight Middle East, Africa and the CIS, Panalpina World Transport Colin David Baldwin - Vice President, Cargo South Africa, Swissport Cargo Services Richard Gale - Vice President Aviation, DHL Express Middle East And Africa Steve Brabbs - Global Technology Leader, Du-

ACW 11 FEBRUARY 2019

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Pont Safety & Construction Youssef (Joe) Beydoun - Head of Cargo Business Relationships, Dubai Airports Chris Nielen - Vice President Sales and Marketing EMEA, Cargolux Dheeraj Kohli - Vice President And Global Lead Of Travel And Transportation, Unisys Lesley Cripps - Sales Director, Cargo Flash Infotech Stephen Maietta - Head Of Market Development, Envirotainer Duncan Watson - Vice President Group Commercial Cargo, Worldwide Flight Services Roger Scheifle - Senior Vice President, Bd Aviation and Non Aviation, Frankfurt Hahn Airport Graham Perkins - Vice President of Sales And Marketing, EMEAI Atlas Air Clement Tulezi - Chief Executive Officer, Kenya Flower Council Vivien Lau - Executive Director, Hong Kong Air Cargo Terminals Limited Max Conrady - Senior Vice President Cargo, Fraport Russell Tom - Regional Director - Cargo Marketing, Boeing Commercial Airplanes Vineet Malhotra - Director, Kale Logistics Solutions Nachi Mendelow - Vice President Business Development – Africa, Wisetech Global Elzette Schutte - Manager, Cape Flora Jacob Matthew - President of Middle East and Pacific Rim, National Air Cargo Dr Robert Schoenberger - Exhibition Group Director - Transport Logistics Exhibitions, Messe München Vuyani Jarana - CEO, South African Airways

AIR CARGO AFRICA PREVIEW

ht at air cargo Europe

Gerritzen: Significant move

very happy to experience the first air cargo Africa under the auspices of the transport logistic exhibitions. “The STAT Media Group successfully launched air cargo Africa and developed it into the largest air cargo fair in Africa. “As a partner, we will develop the trade fair together and provide a highly professional platform that connects companies from Africa and from all over the world. “air cargo Africa will further strengthen our international logistics trade fair network. Together with our other exhibitions we will create diverse synergies for the air freight industry. “This is above all the case at the leading international trade fair in Germany, which will take place in June. air cargo Europe in Munich is the world’s largest airfreight fair,” said Gerritzen.

e at air cargo Africa 2019 Group Lyndee du Toit - CEO, Air Charter Service South Africa Svilen Rangelov - Co-founder and CEO, Dronamics Jac Duif - CEO, South African Export Flower Council Craig Campbell - COO, Lonrho Logistics Alastair Tempest - CEO Ecommerce Africa Forum Omotola Jituboh - Chief Responsibility Officer,

Kxpress Vivet Pandit - AVP Air Cargo Practice, Kale Logistics Solutions

(List correct at time of writing)

Saudia Cargo returns to air cargo Africa

audi Airlines Cargo Company is participating in the fifth air cargo Africa 2019, in Johannesburg, Saudia Cargo’s chief executive officer Omar Hariri will be a speaker at the event where the company will display a “distinctive pavilion offering networking opportunities,” as well as information regarding the company’s latest developments, commercial activities, various products, logistical

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services such as Fly Pharma, role played by the firm in the Fly Express, handling sensitive global air cargo market and cargoes and other freighter highlighting Saudia Cargo’s accomplishments throughout services. Saudia Cargo participated the years, said the airline. in the previous event, Air Cargo Going to air cargo Africa? Africa 2017, Then come along and visit where the comus. pany was awarded Air Cargo Week will be the International Cargo Airline of at th event. Meet staff the year. This sucon stand 47 for a warm cess demonstrated welcome. the important

ACW 11 FEBRUARY 2019

AIR CARGO AFRICA PREVIEW

Event programme - day by day

Exhibition planners have laid on some of the most interesting and provocative speakers in the airfreight industry to entertain and educate attendees to air cargo Africa 2019 Day 1 – Tuesday 19 February

After opening speeches from R K Patra, Group editor-in-chief, STAT Media Group, Gerhard Gerritzen, deputy managing director, Messe München, there is a planned address by Pravin Gordhan, minister, public enterprises, with a

Hughes: Liberalisation on the agenda in Africa keynote address from Bongiwe Mbomvu, acting CEO, Airports Company South Africa, the first Round Table will be staged.

It will look at liberalisation and modernisation and the way to push frontiers of excellence in air freight industry in Africa. It will be moderated by Glyn Hughes, global head of cargo, IATA and is set to include Omar Talal Hariri, CEO, Saudia Cargo; Turhan Ozen, chief cargo officer, Turkish Airlines; Tewolde GebreMariam, CEO, Ethiopian Airlines Jan de Vegt, chief operating officer, Kenya Airways; David Logan, CEO, South African Association of Freight Forwarders; Adrien Thominet, CEO, ECS Group; Steven Polmans, head of cargo and logistics, Brussels Airport Company; Sanjeev Gadhia, CEO and founder, Astral Aviation After a networking luncheon, the first Air Shippers’ Forum will examine contemporary issues facing airfreight that supports carmakers worldwide. A high tea follows, then a second Air Shippers’ Forum looks at the blooming trade in flower shipments by air. A formal dinner follows after the close of the day.

Day 2 – Wednesday 20 February

The first Round Table of the day looks at air cargo in the digital era - from digitisation to digitalisation. It will be moderated by Marcel Fujike, senior vice president products & services, global air logistics, Kuehne+Nagel. After a networking coffee, the second Round Table looks at trade barriers and populist agendas, encompassing the headwinds and tailwinds for air cargo industry. It will be moderated by Shahe Ouzounian, COO, Chapman Freeborn. A networking luncheon is followed by an Air Shippers’ Forum looking at the rise and rise of pharma shipments. High tea is followed by an Air Shippers’

Forum looking at the future of e-Commerce strength and opportunities for e-Commerce and the huge potential in cross border shipments for airfreight. The gala award night finishes off the second day of air cargo Africa.

Day 3 – Thursday 21 February

Two round tables fill the last day of the threeday event. The first asks for air cargo industry, where’s the next threat coming from? UAVs or Amazons or Alibabas. After coffee, China’s belt and road initiative and investments in Africa - rising opportunities for air logistics concludes the event with a good look at this burning topic. Moderated by Robert Schoenberger, exhibition group diirector, Transport Logistic Exhibitions, Messe München, panelists are expected to be: Graham Perkins, vice president sales and marketing, EMEIA, Atlas Air; Russell Tom, regional director - cargo marketing, Boeing Commercial Airplanes; Lyndee Du Toit, chief executive officer-South Africa, Air Charter Service. The last round table is followed by a networking luncheon.

STAT Times International Award for excellence in air cargo AIR cargo professionals were invited to vote for compnaies and brands they valued in African air cargo. The results will be annonuced at a gala dinner on Wednesday, 20 February. International Freight Forwarder Of The Year In Africa International Ground Handler Of The Year In Africa International IT Systems Provider Of The Year In Africa International Air Charter Provider Of The Year In Africa

ACW 11 FEBRUARY 2019

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International General Sales Agent Of The Year In Africa African Airport Of The Year International Airport Of The Year African All Cargo Carrier Of The Year African Cargo Airline Of The Year International All Cargo Carrier Of The Year In Africa International Cargo Airline Of The Year In Africa Global Cargo Airline Of The Year Air Cargo Brand Of The Year In Africa Global Air Cargo Brand Of The Year International Air Cargo Marketer Of The Year

AFRICA

GOING THE EXTRA MILE

AFRICAN airfreight is facing many headwinds. Demand conditions on all key markets to and from Africa remain weak yet many in the region remain confident.

New kid on Africa’s airfreight block

ecently launched Aero Africa, a neutral air cargo and aviation solution provider dedicated to the freight forwarding community, is providing wholesale African logistic solutions and value added services to the global industry including freighter operators, wide bodied scheduled and charter operators. African Solutions director, Jamie Anderson explains: “With our network of partners covering 84 airports throughout Africa, and working exclusively with freight forwarders, Aero Africa provide a comprehensive range of destination services including DAP/DDU/DAP, remote final mile and cross border movements, all through a seamless single point of management.

ship of the Neutral Air Partner (NAP). Thanks to this membership. we have connected with C.S.As, GSAs and neutral consolidators worldwide, each one of these representing and promoting the Aero Africa product portfolio in their local markets.” He adds: “During 2019 we will introduce further initiatives including an all-inclusive per kilo DAP/DDU destination tariff, CEIV accredited delivery program and Africa port based Sea-Air solutions”. IATA has reported that African airfreight is the single fastest growing sector globally, with strong expansion expected over the next few years. The creation of the Single African Air Trans-

ube Cargo Terminal at King Shaka International Airport has has introduced the last mile trucking service, Dube AiRoad which is a dedicated, time-sensitive logistics fleet connecting Dube Cargo Terminal to major inland centers throughout South Africa by road. According to Ricardo Isaac, cargo manager at Dube Cargo Terminal, these services are “utilisied by the airlines, forwarders and shippers. Part of the vehicle fleet is refrigerated, ensuring cold chain integrity. The fleet includes Euro 5 Emission trucks, minimising environmental impact. It also has a range of vehicle sizes, able to handle any size of cargo, in an effort to broaden the catchment area and enhance efficiency for airfreight.”

Steady growth

There was a steady growth in cargo throughput, which the airport did not reveal, out of Durban last year. November airfreight figures rose by 10.83%, while in December it reached a 11.56% high. Issac says: “We have witnessed strong growth since the new King Shaka International Airport became operational in 2010, and have seen the industry take advantage of the capacity provided by direct flights into Durban.” There is a single B737F with approximately 14 tonnes capacity operating daily on a domestic route between Durban and South Africa’s commercial centre Johannesburg, with onward connections into Cape Town, Port Elizabeth, and so on. Issac adds: “The strong growth in cargo throughput from Durban is due largely to the increase in capacity provided by the introduction of new air services, the up-gauging of aircraft by existing carriers and the increase in frequencies of international passenger aircraft, which has had a stimulus effect on the market.” The Dube TradePort Cargo Terminal is a state-of-the-art Part 108 Compliant facility that

is accredited by both the South African Revenue Service and South African Civil Aviation Authority. The facility prides itself on being the most secure cargo terminal in Africa, holding a record of 0% cargo loss since it began operations in 2010. The terminal is 14,000 sq m and is capable of handling 100,000 tonnes of cargo annually, included in the facility is a 1,500 sq m of refrigerated section and a specialised facility for the handling of outsized cargo. The facility, has a host of mechanical handling equipment, like the elevated transfer vehicle (ETV) enabling speed and security in handling cargo through a fully mechanised and digitised inventory system. There are four flexible freighter stands immediately located on the terminal airside. A significant portion of Dube Cargo Terminal is refrigerated, creating a cold chain facility for the effective and swift export of time-sensitive and perishable goods without any negative impact on quality or freshness. The refrigerated section of the terminal is 1,500m² in extent, with a fully temperature-controlled 45-bay perishables-receiving area. Dube Cargo Terminal has also invested in a specialised outsized cargo handling facility equipped with hoists, mobile cranes and conveyor systems to handle bulky or outsized shipments, such as large pipes/ outsized machinery/motor vehicles/large animals and 20-foot ocean containers. Currently, the terminal has the capacity to handle 100 000 tonnes of cargo annually and has the ability to grow this to two million tonnes by 2060, or sooner based on the demand.

Third ISAGO re-certification for Siginon

S “The Aero Africa gateway programme delivers an end- to - end air cargo solution from key markets, via strategic gateways to more than 70 hard to reach destinations across Africa. “Our global reach and product deployment have been expedited through to our member-

port Market (SAATM), an open skies agreement signed by 23 countries plus lower airport charges, is helping this expansion. Neutral Air Partners is deeply involved in this development which it sees as an exciting growth sector, notes Anderson.

iginon Aviation, an award-winning Kenyan ground handling company, located in Nairobi and Edloret, has been awarded ISAGO (IATA Safety Audit for Ground Operations) re-certification at Jomo Kenyatta International Airport. This is the company’s third successful and continuous ISAGO certification since its initial Audit in 2014. Siginon Aviation is certified for ORM (Organization and Management), CGM (Cargo and Mail Handling), HDL (Aircraft Handling and Loading) and AGM (Aircraft Ground Movement) standards.

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According to Maarten Klijnstra, Siginon Aviation’s general manager: “Successful ISAGO re-certification is a great milestone for the entire Siginon Aviation team. It confirms that Siginon Aviation’s processes are compliant with ISAGO audited Standards and Recommended Practices. “It also reaffirms our commitment to provide safe and quality service delivery. Re-certification contributes to the company’s overall success through continuous improvement programmes to meet and exceed our customers’’ expectations,” he says.

ACW 11 FEBRUARY 2019

GENERAL SALES AGENTS

GSAs do what it says on the tin. They allow airlines to sell c

TCE ‘revolution’ launched by ECS Group

he creation of TCE by ECS Group – standing for Total Cargo Expertise – is a GSSA revolution, says Adrien Thominet, CEO of ECS Group, who claims it is the first structure of its kind to be created within a GSSA. ECS Group is reinventing itself with the innovative launch of a brand new service offering. While TCE will be sharing its Total Cargo Management (TCM) expertise with airlines, the department will also be able to offer each of its services individually, providing the most appropriate combination to suit its clients’ strong performance growth. TCE is able to manage an airline’s entire cargo activity, from the traditional sale of cargo capacity to comprehensive management of operational aspects and management of quality and security procedures. Over the last several months, ECS Group has

ACW 11 FEBRUARY 2019

been hinting at a turning point in its business development strategy with the announcement of several TCM contracts, most notably, JetStar Asia, Air Italy and NokScoot, and with its strong desire to break the traditional GSSA industry mould, considers Thominet.

Tailored services

“Airlines have strong demand for custom-tailored services that meet their needs perfectly. Some also want to delegate all of their cargo activities to a GSSA to streamline their costs and maximise their revenue. With TCE, we offer them this perfect combination that combines a network of excellence with total expertise across the entire cargo chain, moving beyond the traditional role of a GSSA,” says Adrien Thominet, CEO of ECS Group. “We strive to offer our partners solutions that

are ever more innovative and meet their needs ever more closely – hand-crafted solutions. With the creation of TCE, we’re also offering airlines the chance to hand over all operational aspects to us through a TCM contract – but that’s not all. All options are now open to them: we offer and it’s theirs. Our motto is always offering our clients more.” The new offering is a clear innovation in the GSSA sector and an ambitious project from ECS Group, he says. “Airlines now hold all the cards to set out a cargo strategy that better meets their needs.” Thominet credits TCE with being a factor in leisure airline TUI and ECS Group signing a Total Cargo Management contract. The world’s leading travel company, TUI includes five airlines, owns 150 aircraft, serves over 300 destinations in 75 countries and operates an average of more than 3,300 flights a week.

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Thominet: This is the first structure of its kind to be created within a GSSA

GENERAL SALES AGENTS

sell cargo capacity in markets where they have no presence.

ALG building on strengths after 25 years

n its 25th anniversary year, Stephen Dawkins, chief executive officer of UK-based Air Logistics Group (ALG) is in a position to examine the prospects for the wider GSA industry and where his business sits in the industry. He says: “The wider GSA industry continues to grow in a very positive direction as it has done for the last 30 years. Passenger business remains the core of an airline’s activity. Airlines look now for professional organisations to sell their cargo capacity as they continue to outsource key elements of their business. Where an airline no longer has dedicated cargo capacity it is a lot more receptive to outsourcing its cargo department. For new airlines or low cost carriers to outsource is a natural consideration in their evolution.”

He reflects on the health of ALG in the GSA market generally: “ALG has built a strong, well respected brand over the last 25 years. With a network of 88 offices in 48 countries spanning six continents, ALG continues to grow from strength to strength as it builds long term relationships with its partner airlines.” As a UK-based firm, ALG has a position on the impending Brexit: “Brexit seems to be made into such an issue in our business, like the Year 2000, everyone wondering if the computers would switch back to zero. Business is much stronger than politics and it always finds a path to continue to operate and grow for the needs of the ever expanding number of people that we have on the globe. Brexit is a bump in the road that brings opportunity for the cargo airline industry.” Like airlines, handlers and forwarders, GSSA businesses have also consolidated over the last ten years mainly in Europe where the pressure on commissions and yields have naturally resulted in consolidation. There is still ample headroom to consolidation in Asia in the years to come. It is a natural evolution of consolidation as the industry becomes more transparent and the increased demand from our airline clients for large bank guarantees and more dedicated services. ALG tends to focus its efforts in the markets that generate the largest amounts of revenues. Africa is a special market where in key cities yields are very low and GSSAs tend to be owned by a forwarder or handling company. Its independence has been a strength of its evolution, he says. “We prefer to focus on our core business, selling for airlines and servicing freight forwarders. South America will come in time; we are just waiting for the right opportunity that makes sense to expand our business in this region,” Dawkins says. When the company celebrates its 50 years in 2044, Dawkins

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says: “I hope I am still around to enjoy that moment! I never thought after 25 years we would be a market leader, but I always believed that we must strive to be better than our nearest competitor. Over the years that has stood us in good stead as we have evolved into a GSSA of choice for airline partners. The natural evolution of any major business is now to outsource to continue to make profit for shareholders. I feel the airline industry is no different so 25 years from now the outsourced cargo business will be in excess of 50% of the world’s cargo revenue.”

‘Buzz word’

TCM the ultimate ‘buzz word’ is very much on the industry’s lips. Dawkins says: “Our focus is on what the carrier wants and what the forwarders demand. So yes we offer every possible element of a cargo department for an airline in an RFP process. We provide a menu of services, but we must never forget that our principal makes the decisions and they choose what they would like from that menu of services we offer. “The key now is the business intelligence that we have, with such a strong network of offices, low employee turnover, strong forwarder relationships and a state of the art IT system, we have business intelligence that helps an airline secure revenues quickly. We have lived too long in our industry with business intelligence being provided to us two months after the event. To be a market leader today you need to anticipate, secure and deliver revenues to our airline partners based on prompt quotations and the highest level of customer service to our freight forwarding clients. How often as CEO does Dawkins get out to ‘kick the tyres’ in all ALG branches? “It’s 25 years of ALG! This is the year to get around every office in the group!” he states.

ACW 11 FEBRUARY 2019

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IN AIRFREIGHT MUST WORK TO EMBRACE THE E-AWB OR THE DISRUPTORS MIGHT SET THE AGENDA.

No-one’s to blame, everyone’s to blame

f there is a theme for the push for the airfreight industry to accept the e-AWB (electronic Airway Bill), it has to be the “One for all, all for one” line made famous in the Three Musketeers story.

In October last year, the editor of Air Cargo Week placed an open letter I had worked to have published on the topic of e-AWB on the

front page of this newspaper. One of the key purposes of getting the Open Letter in Air Cargo Week was to instigate discussions on this matter – and it most certainly did that! The glacial speed of the global implementation of the e-AWB is in danger of slowing airfreight’s response to the likes of Amazon

Prime in holding back the traditional industry in the face of these disruptors. However, the publication of the letter also had the unintended consequence of seeming to imply that IATA was the handbrake stopping the turn. This was never the intention. No, there are issues with all stakeholders in the supply chain that are working to hold back the wider implementation of the e-AWB.

Roadblocks

All parties have their own important parts to play to move this issue forward in a satisfactory and timely manner. The generally agreed current roadblocks are: Forwarding agents and express courier companies, in conjunction with their software suppliers, need to be more open to change. They need more vision to actively engage with the e-AWB concept. They must realise that with over 50 countries now requiring advance information, there is an urgent need to change now. Airline participation in the wider project has been sparse, as they have shown very little interest in implementing e-AWB. Airlines need to be more serious in responding to agents’ FWBs with acceptance or rejection messages. As recipients of FWBs, airlines need to assist agents with implementation process and assist with producing good quality data/FWBs. The technology must use a uniform and cost -effective software system. The best solution would be to move towards IATA’s One Record initiative.

Quickly follow

It has to be said that if a few airlines really took this matter seriously, the rest would quickly follow. Converting the whole business to 100% e-AWB will take a long time and be expensive. Do not overlook the fact that airlines are the stakeholder actually able to measure volumes of FWB/XFWB versus consignment numbers. There has been varying airline commitment to this project. But we know there is no harmonising between airlines, freight forwarders and ground handling agents. The sheer number of forwarders and the small nature of many of them also add a degree of complexity. Freight agents are not interested in converting to 100% e-AWB because they arguably see

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no value in it. The enemy of airfreight’s response to the disruptors we are all facing is the ‘double keying’ which is so rife in the legacy airfreight industry. The airlines must play their part to ensure that e-AWB happens.

Heathrow gathering

Just before the end of last year, I was privileged to attend a meeting at London Heathrow hosted by the gregarious Nick Platts, head of cargo at the airport. Around a dozen airfreight industry experts and leaders were asked by Nick to attend a workshop to deal with the topic of e-AWBs. The workshop was held to understand the key issues that currently stand in the industry’s way of widely adopting e-AWBs. A number of previously identified issues were assessed for validity as well as raising other red flags that need to be addressed. The significance of being hosted by London Heathrow, arguably a world cargo gateway, is that this is a global matter, not just a UK headache.

Further push

I would urge TIACA and FIATA now to step up to the plate to make their voices heard. These bodies are made up of experts in airfreight and freight forwarding, truly individuals at the coalface of airfreight. With their high profiles in the industry, they can play an important part in shaping the push that is needed for the full acceptance and implementation of e-AWB. Once that happens, the e-AWB will truly be one for all and all for one. Burgin: All parties have their own important parts to play to move this issue forward

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