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The weekly newspaper for air cargo professionals No. 1,062

16 December 2019

Merry Christmas and a happy 2020

HKIA makes freight great again

irport Authority Hong Kong will reinforce the hub’s competitive advantage by contributing 20% of the Terminal Charge concession offered by airlines to freight forwarders. The Terminal Charge Concession Scheme at Hong Kong International Airport will come into effect on 1 April 2020. The concession offered by an airline to freight forwarders for export cargo is subject to agreement between the airport authority and individual airline. The agreement will benefit shippers according to their commercial agreements with freight forwarders. Cissy Chan, executive director commercial of Airport Authority Hong Kong says: “Over the years, the AA has been working closely with airlines and business partners to enhance air cargo facilities and services, making HKIA the leading global air cargo hub. The new initiative will help

maintain the cost efficiency of the industry and strengthen our cargo volume growth, ultimately reinforcing HKIA’s competitiveness.” The concession also mitigates the cost impact from the increase in air cargo screening requirement starting next year for the implementation of the International Civil Aviation Organization’s security regulations. Cathay Pacific is the first airline group to support the concession, with customers enjoying a saving of HK$0.3 per kilo for both general cargo and special cargo. Ronald Lam, chief customer and commercial officer of Cathay Pacific

says: “We are driving the Terminal Charge concession to reinforce the competitiveness of Hong Kong International Airport. Cathay Pacific has been Hong Kong’s home airline for more than seven decades and we are

immensely proud of the efforts and achievements we’ve made in helping it become the largest and most efficient multi-modal integrated logistics and aviation hub in Asia and the world.”

ADRIAAN den Heijer will take over as executive vice president of Air France KLM Cargo and managing director of Martinair Holland on 1 January 2020. He will succeed Marcel de Nooijer who is joining Transavia as CEO on 1 January. Heijer has held various commercial, operational and management posts at KLM, Air France KLM and in cargo since 1995. In 2016, he was appointed senior

vice president of pricing and revenue management at Air France KLM. Pieter Elbers, president and CEO of KLM says: “His experience at Passage and Freight and his commercial and operational background at KLM and Air France make him a worthy successor to Marcel de Nooijer. I am confident that Adriaan will further expand the quality of the service that Marcel and his team put down in Amsterdam and

Paris.” Heijer adds: “I am very enthusiastic about my appointment as executive vice president of Air France-KLM Cargo. AFKL Cargo is a global player with a proven track record of delivering innovative solutions and service excellence. I’m looking forward to joining the engaging spirit of the cargo teams in preparing our cargo business for the future.”

INSIDE CHERRY FLIGHTS ARE FRUITFUL

TWO SF Airlines Boeing 747400ERFs each carried 103 tonnes of cherries from Chile to China on flights on 26 November and 4 December .... PAGE 2

DNATA CITY EAST TO GROW

ABERDEEN Standard Investments’ Airport Industrial Property Unit Trust (AIPUT) fund has signed a pre-let agreement to further ... PAGE 3

Heijer to succeed de Nooijer at AF-KLM

TIACA REACHES OUT

THE International Air Cargo Association is changing its strategy to reach out to the entire air cargo chain to represent and unite the industry ... PAGE 4

NEW DECADE, NEW APPROACH

MAAIKE van der Windt admits the last two years have been challenging for Amsterdam Airport Schiphol due to slot restrictions, but a new ... PAGE 8

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Joined up thinking to move batteries

he International Air Transport Association (IATA) is joining forces with other industry bodies to ensure lithium batteries are moved safely by air. By partnering with the Global Shippers Forum (GSF), the International Federation of Freight Forwarders Associations (FIATA) and The International Air Cargo Association (TIACA), they are renewing calls for governments to crack down on counterfeit battery manufacturers. Mis-labelled and non-compliant shipments in the supply chain will also be targeted by issuing and enforcing criminal sanctions on those responsible. Consumer demand for lithium batteries is growing 17% annually, as is the number of incidents involving mis-declared or undeclared lithium batteries. Nick Careen, senior vice president airport, passenger, cargo and security of IATA says: “The industry is uniting to raise awareness of the need to comply. This includes the launching of an incident reporting tool so that information on rogue shippers is shared. And we are asking governments to get much tougher with fines and penalties.” The campaign includes three specific initiatives, an incident reporting and alert system for airlines; an industry awareness campaign on the dangers of undeclared or mis-declared

lithium batteries; and facilitation of a joined-up industry approach. Glyn Hughes, global head of cargo at IATA says: “Government authorities must step up and take responsibility for stopping rogue producers and exporters. Abuses of dangerous goods shipping regulations, which place aircraft and passenger safety at risk, must be criminalised.” Vladimir Zubkov, secretary general of TIACA says: “We have seen high interest from the regulators on the issue of lithium batteries not that long ago, and it did help to improve the situation. We are asking governments to put this problem again on the top of their agendas.” James Hookham, secretary general of GSF says: “Responsible shippers rely on government enforcement of standards to protect their investment in training and safe operating procedures. Air freight remains a vital link in international supply chains and it is essential that the rules for ensuring the safe movement of all cargoes are understood and acted on by all parties involved.” Keshav Tanner, chairman of FIATA’s airfreight institute adds: “The increasing use of lithium batteries coupled with the growth of e-commerce supply and demand is exposing the air cargo supply chain to greater risk of un-declared or mis-declared goods. We support regulators imposing strict adherence to established compliance standards.”

CARGO-PARTNER has expanded its Asian landair service in response to fluctuating airfreight capacity out of China and Southeast Asia. The land-air service via Hanoi, Vietnam provides an alternative to direct flights from China with 8-10 day transit times including road transport from China, flying to Europe or the USA and delivery to the final destination. The option is available for large shipments over three tonnes and cargo-partner says it al-

Cherry flights prove fruitful

wo SF Airlines Boeing 747-400ERFs each carried 103 tonnes of cherries from Chile to China on flights on 26 November and 4 December. The flights from Santiago took 31 hours and after arriving in Hangzhou, each pallet of cherries was packed and documented for customs clearance and delivery to shops and homes. Carried on SF Airlines’ 747-400ERF, the SF Express subsidiary tailored the Chile – China delivery to pursue providing clients with customs and flexible solutions for their businesses and customers. SF Express modified its US – China air route, adding Santiago as a stop. The route was established for export-import deliveries between North America and China, and is now approved to stop in New York, Santiago, Miami and Anchorage. Kevin Zhao, manager of SF Express US sales

LUG handles Delta

LUG air cargo handling will serve Delta Air Lines at Frankfurt Airport from 15 January 2020. The American airline operates three flights a day from Frankfurt to Detroit, Atlanta and New York using Airbus A330s and Boeing 767s. The ground handling agent has been work-

cargo-partner adds land-air services

lows for more stable and competitive rates. Luca Ferrara, CEO Asia Pacific, Western Europe and Americas at cargo-partner says: “Due to the current capacity backlogs for airfreight out of China, bookings need to be placed at least one week in advance. Even then, there is a risk that shipments will be offloaded and postponed to the next available flight, which could easily delay a shipment by an additional week.” Myanmar is also facing capacity backlogs, and cargo-partner is also offering land-air services to Thailand. The service includes trucking within 2-4 days, airfreight to Europe or the USA within 2-3 days and on-carriage to the final destination within 1-2 days, and cargo-partner handles all customs formalities. Ferrara adds: “This solution allows us to offer our customers a more flexible option for their urgent airfreight shipments, with stable rates all year round.”

team says: “Time is critical when it comes to perishable logistics, so we carefully arrange each step of the process to ensure rapid transit and minimal turnaround times.” He adds: “The US-China airline of SF Express, coupled with a wide portfolio of service packages tailored to the specific needs of seasonal products, delivers a premium logistical service. From customs clearance to import duties and border inspection to last-mile-to-door delivery, our staff plans every step of the way to avoid delays.” ing with Delta in Munich for over five years. Germany is the USA’s second biggest European market after the UK. LUG has also renewed its contract with Uzbekistan Airways for two to three flights a week between Frankfurt and Tashkent using 767s and 787s.

Rescue plan for South African Airways THE board of directors at South African Airways (SAA) has agreed a business rescue plan to find a solution to financial challenges. In a media statement, South Africa’s minister of public enterprises Pravin Gordhan, the government’s desire will mark a new era for South African aviation, and the business rescue plan is supported by the government. The rescue plan consists of existing lenders providing two billion rand ($140 million) as post commencement finance guaranteed by the government and repayable out of future budget appropriations; the government providing an additional two billion rand of finance; preventing a disorderly collapse of the airline; full recovery of capital and interest on existing debt; provide a critical review of costs while retaining as many jobs as possible; and reorganise state aviation assets to make them or sustainable and attractive as an investment partner.

From the ACW archives ... who he?

Airway Bill’s

Gordhan says the business rescue will allow SAA to continue operating in an orderly and safe manner and keep aircraft flying under the direction of a business rescue practitioner. He stresses: “It must be clear that this is not a bailout. This is the provision of financial assistance in order to facilitate a radical restructure of the airline.” The minister says the department of public enterprises will meet with the business rescue practitioner on an urgent basis, all unions and other stakeholders “in order to create a positive set of relationships and processes”. The board says the rescue will create a better return for creditors and shareholders than any other solutions. SAA says: “The company is seeking to minimise the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.”

Xmas funny

you! No, after After you!

Each week, we will dig out old photos of people currently in the industry. Anyone recognise this debonaire Frenchman? 2

ACW 16 DECEMBER 2019

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CIvil aircraft

(after Moose Alain)

AIPUT fund to expand dnata City East

berdeen Standard Investments’ Airport Industrial Property Unit Trust (AIPUT) fund has signed a pre-let agreement to further expand dnata City East at Heathrow Airport. The 115,000 sq ft facility has been designed to operate in conjunction with a newly-completed 250,000 sq ft warehouse handling Virgin Atlantic Cargo and Delta Cargo’s airfreight at Heathrow. The existing building is the largest off-airport pre-let in Heathrow’s history, and subject to planning consent, the new facility will make dnata City East the largest off-site cargo handling operation at the airport. The proposed facility has been designed to accommodate the operational requirements of dnata and its clients Virgin and Delta. The two buildings will double the size of the airlines’ joint cargo operations at Heathrow. It will incorporate the latest carbon reduction initiatives in both its design and operation in line with AIPUT’s Carbon Strategy to future-proof the use and value of the facility, including the use of solar PV panels, air-source heat pumps and electric vehicle charging. Nick Smith, fund manager of AIPUT says: “This pre-let supports AIPUT’s long-term vision to grow our high-quality air cargo portfolio at Heathrow. Our successful partnership with dnata at dnata

ACWBITES NIPPON Express (India) has obtained certification for Good Distribution Practices at its warehouse in the Hyderabad Airport Air Cargo Complex. The Hyderabad branch has installed air-conditioned facilities providing temperature control for minus 2-8C, 15-25C and room temperature in the warehouse. OSCAR Munoz, chief executive officer of United Airlines will take up the role of executive chairman of the board of directors of United Airlines Holdings in May 2020. President J. Scott Kirby will succeed Munoz as CEO.

City East sets a new benchmark for airport industrial property investment, in terms both of its unprecedented scale and the industry-leading environmental credentials of the buildings.” Gary Morgan, CEO of dnata UK adds: “Our final phase of dnata City East builds on the multi-million pound investments we have made at the airport in the last five years, cementing our position as a leading cargo services provider in the country. We continue to invest in advanced infrastructure and cutting-edge technologies to deliver the best possible services for our customers.”

ACL promotes from within CSafe comes to Memphis ACL Airshop is promoting leadership from within the company, with new roles for Jos Jacobsen, Wes Tucker, Mattijs Farber and Harold Elfring. Jacobsen is now managing director and chief operating officer for Eastern Hemisphere operations and global leasing. He has been with the company over 17 years and is a board member of the industry association ULD Care. Wes Tucker is now executive vice president and chief operating officer for Western Hemisphere operations and manufacturing. A major achievement in his 16 years with the company is overseeing the construction of ACL Airshop’s new factory in South Carolina. Group controller Farber has over 10 years of experience with ACL, and the company’s financial network will report to him for all accounting and finance activities, reports and audits. Director of technology and IT systems Elfring has worked with ACL for 14 years in a consulting role. Elfring has led new innovations such as proprietary ULD Control logistics programmes, the FindMyULD app and Bluetooth tracking and tracing. Steve Townes, chairman and CEO of ACL Airshop and founder of Ranger Aerospace says: “These well-earned and richly deserved promotions from within our ranks reflect the High Performance Culture of ACL Airshop. Our vibrant, entrepreneurial organisation is well known for its speed of service and exceptionally high professionalism. These four exemplary leaders personify what we mean when we say our people truly have The Right Stuff.” ACL Airshop has big plans for 2020, with Townes saying: “There are three fundamental leadership pillars in our development strategy for our 200+ airlines clients. Grow the Network, invest in Technology, and remain a superior employer for the extraordinary People in our high-performance company culture.”

CSAFE Global has opened a technical service centre at Memphis International Airport to service RKN and RAP active containers. Multiple technical professionals have been deployed to Memphis to meet the increasing demand for CSafe containers across the region. Tom Weir, vice president of global operations at CSafe Global says: “Continuing CSafe’s passion and commitment to best serve our customers, the new Memphis service centre is among an expanding roster of worldwide facilities dedicated to providing high quality technical support and effortless customer interaction to meet the ever-increasing demand for our active containers.”

LATAM Cargo will end 2019 with increased cargo capacity by taking delivery of its third and final Boeing 767-300BCF. The converted freighter will operate 14 weekly flights to Colombia, Ecuador, Chile, Argentina, Uruguay, Peru, Paraguay, Brazil and

the USA, and possibly Europe in the future. Increased capacity will strengthen LATAM Cargo’s position in Latin America, especially on routes from Colombia and Ecuador to the US. It has almost tripled capacity on Bogota – Miami services and by 35% between Quito and Miami. The aircraft operated by LATAM Cargo Colombia is number N542LA and made its maiden flight on Saturday 7 December on the Miami – Bogota – Miami. Andres Bianchi, CEO of LATAM Cargo Group says: “Adding this last Boeing 767BCF is a major milestone for the LATAM Cargo Group, as we now have a fleet that is 100% compatible with our strategy and the reality of the markets we currently serve. Moreover, we operate the aircraft type that best responds to the market sizes and products we carry. This will enable us to solidify our position in key markets, provide our customers with more and better options and boost our profitability.” LATAM Cargo received its first B767-300BCF in December 2018, with the second one following in July 2019.

Sovereign Speed takes over Businesswings

SOVEREIGN Speed has expanded its service as an express logistics provider with the 100% take-over of Businesswings. By taking over the Kassel-based aviation company, Sovereign Speed can offer customers all forms of urgent transport ranging from direct journeys, overnight transport via its own express network or aircraft charters. Frank Liebelt, group managing director says: “For us, this is a strategic investment, as Sovereign’s customer solutions, in particular the European express network and the collection and delivery runs, can be perfectly combined with those of Businesswings. From AOG to medical equipment – we are proud to be able to serve all requirements within Europe with this acquisition.” The sale took place in the course of an age-related succession plan, and the previously owner-managed company Businesswings is now part of the Sovereign Group as a subsidiary. The 20 employees and managing director Jens Maecker will remain with the company, which has held an air operator’s certificate for over 25 years.

All I want for Christmas is a B767-300BCF

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LUFTHANSA has reintroduced Munich – Sao Paulo flights with three services a week using an Airbus A350-900. Flight LH504 leaves Munich at 22.30 on Mondays, Thursdays and Saturdays, arriving in Sao Paulo at 06.55 the next day. Return flights leave Sao Paulo at 18.00 and arrive in Munich at 09.35 the following morning. TOKYO Century Corporation has acquired the remaining interest in aircraft asset manager Aviation Capital Group. In 2017, Tokyo Century acquired 20% membership interest, later expanded to 24.5%. The transaction was first announced on Monday 9 September and the deal was completed on Thursday 5 December. THE sales of the stake held by the two Macquarie investments funds in Brussels Airport to a consortium formed by APG, QIC and Swiss Life was finalised on Wednesday 4 December. A fourth stakeholder, Sky Holding Belgium Fund management by investment company PMV joined the consortium on Friday 6 December. EMIRATES Airlines’ first flight to Mexico City touched down at 03.30 on Monday 9 December. Flight EK255 was piloted by Captain Abdelrazaq Alfahim, a UAE national, Captain Gabriel Noltenius Hahnel, a Mexican national and first officer Essa Alhammadi of the UAE. The service uses a Boeing 777-200LR and stops in Barcelona, Spain before continuing to Mexico City. THE Boeing Company is facing a $3.9 million fine from the Federal Aviation Administration for allegedly failing to ensure suppliers complied with its quality assurance system. The FAA says this resulted in the installation of slat tracks that were weakened by a condition known as hydrogen embrittlement that occurred during cadmium-titanium plating. The slat tracks are located on the leading edge of the wings of a Boeing 737 and guide the movement of panels, which provide additional lift during take-off and landing. The parts were processed by Southwest United Industries and shipped to Spirit AeroSystems, who delivered the parts to Boeing. ALL Nippon Airways will offer customers va-Q-tainers from va-Q-tec for its pharmaceutical product PRIO PHARMA. The different containers, the TWINx, XLx, USx and EUROx will be available from 6 January 2020 on ANA group operated flights and charters between online airports. The service is not available on blockspace, codeshare and joint venture flights or road feeder services excluding the Tokyo Haneda – Narita segment. THE CEO of Garuda Indonesia faces dismissal over allegations he smuggled a motorbike into the country. Ari Askhara is accused of failing to declare the import of a Harley Davidson and two folding bikes, avoiding up to $107,000 in customs duties. The items are reported to have been brought into Indonesia from France, with the payment being made through a Garuda finance manager in Amsterdam.

ACW 16 DECEMBER 2019

ACWBITES A Cessna 208B Super Cargomaster operated by Martinaire Aviation crashed into terrain shortly after departure from Victoria Regional Airport in Victoria, Texas. The 208B was en-route to Houston George Bush Intercontinental Airport when it impacted terrain in Victoria County northeast of its departure point at around 20.16 local time on Monday 9 December. The aircraft took off at 20.02 and crashed 14 minutes later. The pilot, the only occupant was killed. DRONE Delivery Canada’s Moose Cree First Nation’s project received the first conditional approval for one of its funding applications. Subject to entering a definitive agreement and satisfying conditions imposed by the funder, would enable Moose Cree First Nation’s Remote Communities Initiative to pay DDC for its drone delivery service from the first quarter of 2020.

TIACA reaches out to unite the industry

THE International Air Cargo Association (TIACA) is changing its strategy to reach out to the entire air cargo chain to represent and unite the industry. The first step involves restructuring its membership fee with separate categories for small, medium and start-up companies allowing them to become full members at a reduced rate. TIACA is also working on initiatives in new sectors such as drones, autonomous vehicles and unmanned aerial systems who are creating new opportunities for the air cargo industry. The association intends to facilitate interest in these companies for greater reach and support them towards authorities and governments. In a move to increase focus on stakeholders not formally part of TIACA, an

agreement has been signed with Neutral Air Partner. As part of the deal, NAP members will automatically become full members of TIACA, allowing TIACA and NAP to work together on programmes, conferences, training and communication. Steven Polmans, chairman of TIACA says: “Collaboration and partnerships are and should be part of our DNA, so this deal with NAP is a very good example of a winwin situation for both our organisations. We have not done enough in the past for a big group of companies in our industry, so with this deal and the new membership opportunity for small and medium sized companies, we are reaching out to them to join forces and further build this very interesting and fascinating industry.”

Christos Spyrou (pictured), CEO of NAP, who will join the TIACA board on 1 January adds: “TIACA’s commitment to innovate the industry and to modernise the process of air cargo transportation is impressive. We are confident that working together with partners like these will drive direct value to our global customer base, and our members will acquire extensive knowledge and industry-leading expertise.”

Man’s best friend flies safely Down Under IATA recently certified Jetpets in Melbourne, Australia with CEIV Live Animals status. According to Sandy Matheson, managing director, Jetpets Animal Transport, the process to obtain the certification, was “the safety and comfort of our travelling animals.” Matheson said: “We felt the IATA CEIV Live Animals certification aligned with our Jetpets vision, and the certification has allowed us to feel extremely proud and confident that our processes and procedures ensure we are setting the highest standards of care for all of our animals in transit.” The company transports over 50,000 animals per year. “During the CEIV validation process Jetpets had the opportunity to review its framework, processes, procedures, and training for all of our employees,” Matheson said. “This enabled us to excel in our professionalism and enhance the quality of our service. We feel throughout the audit process we have been able to raise the bar in the industry and the certification is so

rewarding as it solidifies our confidence that we are leading the way when it comes to ensuring animal safety and welfare throughout travel. “Whilst we had processes and procedures in place, the work involved in documenting and cross referencing each step was involved and quite complex. However this has enabled us to have clear definition in our pet handling procedures.” Matheson considers that CEIV certification will positively affect operations and the business moving forward. He said: “We understand the importance of the role we play in taking care of peoples precious family members as they travel across Australia and the world. We encourage everyone in the animal transport industry undertake the CEIV Live Animals certification. We highly recommend the programme to all. The CEIV Live Animals certification can only enhance the practices within our industry and ensure that animal safety is of paramount importance 100% of the time.”

HONG Kong Airlines has been saved from collapse with a cash injection, the airline announced on Saturday 7 December. The cash injection followed urgent consultations with stakeholders including shareholders and management. The funding will be injected in phases. The airline says it has rolled out a consolidation programme to cut costs, optimise the network and improve customer experience. Hong Kong’s Air Transport Licensing Authority (ALTA) had attached new licence conditions in light of Hong Kong Airlines’ financial problems due to the rapidly deteriorating situation impacting obligations as an employer to pay

salaries and provide satisfactory service. The conditions were that Hong Kong Airlines must ensure a cash injection at a level determined by ALTA and raise and maintain its cash otherwise its licence would be suspended or revoked. ALTA says: “After reviewing all the information submitted by HKA in relation to the new conditions attached by ATLA, including the fact that HKA has raised the cash and cash equivalents to the level required by ATLA and pledged to maintain the level (Condition 2), ATLA has decided not to take further actions against HKA for the time being, pending the airline’s submission of further details regarding Condition 1.”

Cash injection for Hong Kong Airlines

ACW 16 DECEMBER 2019

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NEW TECHNOLOGY

A YEAR OF TECHNOLOGY MUCH of what was sci-fi just a generation ago is now the new normal. Since the start of the year, our monthly series, sponsored by Paris-based ECS Group, looked at trends in New Technology in airfreight and the supply chain which will shape the sector into the future. Here are the topics we looked at this year.

January - New Trends

February - Drones

e kicked off with an introduction to ‘New Trends’ likely to an there be anything more 21st century than drones? Airfreight come to the fore in 2019: ‘Smart Cargo Locating’, autonomanagers are looking at ‘final mile’ use of technology that can mous vehicles and Hangar 51 were some of the topics we covered. complete the supply chain.

March - Warehouse automation

he drive to remove manual labour from the supply chain continued in 2019. Managers are seeking technology such as RFID, Internet of Things, barcode technology to automate cargo storage.

June - Track & Trace hippers are increasingly demanding transparency as to where shipments are 24/7 in the supply chain.

September - Autonomous Airport Vehicles

oad services move air cargo on the ground. In the future road adio-frequency identification uses electromagnetic fields to auvehicles will have electric drive trains, autonomous control and tomatically identify and track tags attached to objects. Its use no human in the cab. will only expand in coming years.

July - Digital Technology

igitisation will increasingly appear in all aspects of the supply chain, from ordering to despatch, from warehousing to track & trace.

October - Warehouse and Terminal Storage

river-less vehicles, often with autonomous driving modes, are hen cargo is introduced into the supply chain,, it requires shaping up to drive developments on the airport apron. Cargo safe and secure, modern warehousing and terminal storage will be delivered to the aircraft-side by a robot very soon. facilities and practices.

ACW 16 DECEMBER 2019

May - RFID

April - Future road services

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August - Compliance screening

ompliance screening is all about making sure that supply chain players are in step with regulatory and legislative security measures.

November - IT, AI & Software

obotics will help shape the warehouse and distribution centre of the future, particularly as companies look to automation, software and robotics to deliver increased speed and accuracy.

AIRSIDE & LANDSIDE SECURITY

Airport sites are vast with many security objectives. Aprons dealing with airfreight movements, parking lots for freighter aircraft, gates leading to and from the airport for cargo and inside threats all feature in the choice of airside and landside security systems.

Perimeter fencing first steps towards an airport’s secure airfreight apron

hysical and digital security requires a complex mix of systems and physical barriers. Yet the lack of basic security fencing can mean more than theft and pilferage from airport warehousing or aircraft bellies: in the case of one airport inadequate security fencing has prevented its very opening. According to the Nigerian Guardian newspaper: “Inadequate perimeter fencing and attendant safety concerns were blamed for the current restrictions of commercial flight operations into the new Bayelsa airport in Bayelsa State. The Nigerian Civil Aviation Authority (NCAA) said the 60 billion naira ($170 million) facility would continue to remain closed until the State government complies with standard rules on security and safety.” The newspaper added that the International Civil Aviation Organisation (ICAO) regulations mandate standard airports to have both perimeter and security fences. ICAO annex 14 sees to perimeter fence, while annex 17 has provisions for a security fence. The Bayelsa State government opened the new airport in February 2019 with the hope of attracting both regional and international flights. But since the commemoration, the facility has remained closed to commercial operations. “We live in a high alert climate and litigious society where virtually nothing can be taken for granted,” said Peter Jackson, chief executive officer of leading UK perimeter security and access control manufacturer and supplier Jacksons Fencing. “The current themes dominating global security of terrorism and the threat of intrusion have left many areas previously thought of as “safe”, vulnerable to threat. “In response, there has been a huge investment in CCTV and high technology electronic security systems; but it seems that the subject of physical perimeter security has been largely neglected. It’s not entirely surprising when in the main, most fencing manufacturers have done little to upgrade the design and performance of their products to address the changing nature of threats and the need to protect people and assets in equal measure. “That’s why some 18 months ago, we embarked on a development programme with the aim of becoming the first company in physical perimeter security to be able to offer a totally integrated solution; effectively a onestop-shop covering perimeter fencing and gates to intrusion deterrent and detection systems, to specialised high-security and anti-terrorist products.”

Strengthening air cargo security

Security is a critical element of the air cargo supply chain. Regulators and industry are working together to further secure the supply chain while ensuring the flow of commerce.

IATA set up the Cargo Security Working Group (CSWG) to ensure that the experiences and constraints of the airline industry are considered in the development of effective security regulations. To support regulators and strengthen supply chain security, IATA and the industry are working on the following main initiatives:

Advance Information: The standard Advance Cargo Information ahead of the arrival of goods, aiding processing and clearance of cargo. Standard CSD: The Consignment Security Declaration (CSD) provides an audit trail of how, when and by whom cargo has been secured along the supply chain. Capacity building: Through the Cargo Secu-

rity Capacity Building Program, IATA works with regulators and industry to ensure air cargo is protected from unlawful interference across the whole supply chain. ACC3 Validation: IATA supports air carriers in complying with EU ACC3 Validation process providing all the necessary information and assessment to prepare for their validation.

Trichy airport comes under 100% CCTV surveillance

ccording to a report in The Times of India, an additional 64 CCTV cameras have been installed at the Trichy airport at a cost of Rs 1 crore ($140,000) to bring the entire area under the scope of the surveillance system. A total of 104 surveillance cameras were already functioning at the airport, including the cargo terminal, new terminal building and the runway. Recently infra-red cameras with night vision were installed at the airport at a cost of Rs 14 lakh. These cameras would enable Air Traffic Control (ATC) to monitor aircraft parked at all seven bays at the airport, the apron and movement of vehicles there and if there are any violations.

Airport security market worth $12.7bn by 2022

he global airport security market is expected to reach $12.70 billion by 2022, according to a report by Grand View Research. In recent years, the policy and aim of many authorities has shifted from potential threat identification to deploying measures that prevent infiltration of any type of threats into the infrastructure. Demand for quicker and efficient screening has culminated in the design and development

of advanced screening systems that are being employed worldwide The rapid pace of new construction at airports and need to streamline security screening process in order to minimise security waiting time also serve as key drivers for market growth. However, economic turmoil and lack of funds for public spending new development and construction, as well upgrade of existing airports. In addition, effectiveness of existing security equipment in combating threats and lack of a

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tangible return on investment has discouraged operators from purchasing new technology solutions. International and domestic legislations have fuelled the procurement of security technologies. Organisations such as the TSA and European Civil Aviation Conference (ECAC) establish security standards and oversee their adherence. Airports are subjected to numerous threats including robbery, arson, cyber-crime, terrorism, and vandalism.

ACW 16 DECEMBER 2019

2019 CARGO AIRPORT SURVEY

Hong Kong kept its cargo crown in 2018 Cargo has taken a hit against the backdrop of global trade tensions. Airports have seen aprons emptier.

uring the 11th Annual Airport Economics & Finance Conference & Exhibition held in March in London, Airports Council International (ACI) World published its preliminary world airport traffic rankings covering cargo volumes for 2018. The air cargo market did not fare as well as passenger traffic that year, with a year-end growth figure of 3.2%. This is in contrast to a much stronger year of growth in 2017 but comes against a backdrop of global trade tension between the United States and several of its closest trade partners. Hong Kong Airport remained the largest air cargo centre, handling more than five million tonnes of cargo in 2018 and its volume growing 1.4% against 2017 Memphis Airport was in second place with growth of 3.1%, and Shanghai Airport was third, with a decline in cargo volumes in 2018 of -1.5%. Shanghai grew by 11.2% in 2017 but this decline shows that demand has softened. The top 20 airports for aircraft movements and belly-hold traffic grew by 2.4% in 2018. Chicago O’Hare Airport has surpassed Atlanta-Hartsfield-Jackson Airport to become the busiest airport in the world for aircraft movements.

Both airports experienced slight declines in 2017 but have since recorded growth of 4.2% and 1.8% respectively. ACI World director general Angela Gittens said: “Aviation is strongly linked to the global economy and to local development, however, and the protectionist rhetoric that has swept several Western countries will continue to restrain growth in the efficient flow of people, goods and services. “ACI’s global medium-term forecasts reveal growth in demand for air services between 2018 to 2023 will grow by almost 30%. This

Volga-Dnepr expands at LEJ

a more liberalised aviation market and the nation’s strengthening economic fundamentals have helped it become one of the fastest-growing markets with its traffic growing rapidly in a relatively short time. Additionally, despite signs of weakness in the cargo market, a number of airports stand out with Doha. Qatar’s main hub, continued to be one of the fastest-growing airports in the world for air cargo throughput and is also among the busiest. It moved from 16th to 11th in the rankings last year.

New decade, a new approach

AAIKE van der Windt admits the last two years have been challenging for Amsterdam Airport Schiphol due to slot restrictions, but a new decade will see a new approach for freighters. As previously announced, total cargo volumes for the first half of 2019 were down 9.2% to 767,519 tonnes, mainly due to the full freighter sector. Cargo transported on freighters was down 16.4% and freighter air transport movements by 14.4%. The director aviation marketing, cargo and customer experience tells Air Cargo Week that this decline is due to restricted slots. She says: “This has led to the development of a new Cargo Approach for next year with the main goal of maintaining our existing cargo network to protect full freighters along with an increased focus on sustainability.”

Protected freighters

S many as 500 new jobs were announced in the summer after the establishment of a Memorandum of Understanding (MOU) between Volga-Dnepr Group and Mitteldeutsche Flughafen AG (MFAG) to continue to expand their strategic partnership at Leipzig/ Halle Airport in the areas of airfreight and logistics. The MOU was signed in the presence of the Saxon state minister of finances Dr Matthias Hass at the 53rd International Paris Air Show in Le Bourget. The Group and MFAG will create an effective logistics system in Leipzig/Halle Airport to boost cargo infrastructure development and

means many national governments face the predicament of demand outstripping available airport infrastructure. “For cargo, the picture was not as good against a backdrop of global trade tension. The ongoing trade war between the United States and several of its closest trade partners was a shock for the industry and global supply chains.” In other significant findings, India became the world’s third-largest aviation market in terms of passenger and belly-hold throughput, behind the US and China in 2018. India’s move towards

ACW 16 DECEMBER 2019

set Leipzig/Halle as a freight multimodal hub for scheduled and charter operations. The agreement involving the two companies means a further boost for the Cargo Hub Leipzig/Halle; investments of up to €500 million are due to be made to expand this facility during the next few years. The Group will operate both charter and scheduled operations to/ from Leipzig/Halle Airport, accumulating regular and project traffic on board AirBridgeCargo Airlines and Volga-Dnepr Airlines. The Boeing freighter fleet will fly up to 20 weekly flights to/ from Leipzig/Halle Airport by the end of 2021, while gradually increasing this number to 50 in 2030.

The Dutch government is being lobbied to ensure freighters are protected at Schiphol. Van der Windt says: “Our main priority is to protect the full freighters at Schiphol and we are lobbying the Dutch government for an exception ‘freighter pool’ within the slot allocation by stressing the value of cargo to the economy of the Netherlands.” While freighters have suffered, belly cargo has done better due to Schiphol’s extensive passenger network. She adds: “We are ensuring that the bellies are as full as possible, which is resulting in a more sustainable approach towards cargo.”

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Collaboration is the way to solve problems, with van der Windt saying: “By working together and taking a proactive approach to a challenging situation we are looking forward to a positive new beginning at Amsterdam Airport Schiphol and rolling out the new Cargo Strategy in 2020.”

2019 CARGO AIRPORT SURVEY

EMA investment plans to be made public in 2020

ast Midlands Airport continues to cement its place as the UK’s largest dedicated air cargo operation. Being home to the likes of DHL, UPS, FedEx/TNT and Royal Mail, the airport is second only to London Heathrow in terms of the total annual tonnage of cargo it handles. The operation continues to perform well, despite challenging market conditions. This calendar year has seen an increase in volume to 370,000 tonnes per annum (up 1.15% on 2018) over the last 12 months, It has also seen the value of non-EU goods rise by a further £1bn to £11bn per year. Earlier this year, EMA recorded its highest-ever monthly cargo volume. Just over 34,877 tonnes of goods passed through the airport in October, eclipsing the previous busiest month which was November 2018 when EMA handled 34,107 tonnes. Work is nearing completion on EMA’s East Apron extension which serves the FedEx/TNT, UPS, and Royal Mail operations. This will allow up to four more aircraft to be parked at any one time and support the growing schedules of these and prospective operators. Also at the east side of the airport, UPS’s new facility is rapidly taking shape. The £114m development will double the size of their operation at EMA making it UPS’s largest air logistics facility outside the USA. Early in the new year, EMA will unveil a new commercial strategy which will outline the investments that it intends to make to respond to any future growth in demand for air cargo.

Doncaster development to create 4,300 jobs

oncaster Council has approved construction of a 325,000 sq m advanced manufacturing and logistics development located at Doncaster Sheffield Airport, (DSA) one of the largest strategic development zones in the Yorkshire region, owned and managed by regeneration business, Peel L&P. The approval is subject to a S106 agreement and finalising Highways conditions. The scheme will create around 4,300 jobs and deliver high-quality, state-of-the-art advanced manufacturing and logistics floorspace within a region already renowned for leading edge advanced manufacturing facilities occupied by the likes of Boeing, Rolls Royce and McLaren, just 20 minutes away alongside the Advanced Manufacturing Research Centre. The DSA location is already highly accessible by road and air and will become even more accessible under plans to deliver rail connectivity with a direct connection to and from the nearby East Coast Mainline, together with a rail freight terminal. Gareth Finch, planning director for investment property and airports at Peel L&P said: “This decision is crucial as the development will unlock delivery of an innovation cluster alongside strategic logistics facilities.

Cargo future for Sri Lankan airport?

SRI Lankan internet newspaper Colombo Page has reported that the country’s minister of tourism and civil aviation Prasanna Ranatunga says that the new government’s vision is to develop domestic air operations, not just the international operations for the future of business and tourism industry by developing all airports in the country. He added that given the location in Hambanthota, the Mattala airport could be developed as a cargo transport airport. He pointed out that the government is paying special attention to this and that it will be a great boost to the economy of the country. Speaking further the minister pointed out that the only current income from the airport is now being earned from services to airlines.

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ACW 16 DECEMBER 2019

MALAYSIA

SF Express flies pineapples from Kuala Lumpur to Zhengzhou

our charter flights each transported 22 tonnes of pineapples to Zhengzhou from Kuala Lumpur in November. The flights operated by SF Express was chartered by GlobalWind Supply Chain Management (Shanghai) with Linghang International as the Malaysian agent. The event marking the fourth flight on 26 November was jointly attended by YB Tuan Sim Tze Tzin, deputy minister of agriculture and agro-based industry and YB Tan Kok Wai, Malaysia’s special envoy to China. With support from airport operator Malaysia Airports, and Pos Aviation, three earlier cargo shipments had flown on 14, 16 and 21 November. The charter flights are scheduled for one year with an estimated 120 flights exporting 2,000 tonnes of pineapples worth 12 million ringgit ($2.8 million). Raja Azmi Raja Nazuddin, group chief executive officer of Malaysia Airports says the organisation is well positioned to facilitate efficient and seamless cargo operations. Nazuddin says: “The facility in which you are in today - the KLIA Air Cargo Terminal 1 or KACT1 is one of the earliest manifestations of the Air Cargo & Logistics development. It

ACW 16 DECEMBER 2019

encompasses 120,000 sq m of gross floor area and serves as a cargo terminal, sorting centre, warehouse, and operations office. With our vast facilities, we are certainly more than happy to play a role in enabling the growth of our export economy, especially to new markets such as China and the Middle East.” Chen Xuemei, chairman of Zhengzhou Chen’s Sun Fruit and Vegetable Trade says: “Malaysian pineapples are fresh and succulent compared to pineapples from other regions. If Malaysia maintains its supply and pricing advantage of its pineapples, I believe they will be greatly accepted by our Chinese consumers.” Liu Xiangqin, chief executive officer of Ningbo Standard Fruit Agriculture Technology says: “The Malaysian Musang King durian is popular in China. I believe with the current export of the whole durian and now, the pineapple, the fruit industry in China will rapidly grow.” Yu Haiye, vice president of Global Wind Supply Chain Management (Shanghai) adds: “We are glad to work with so many partners to ensure that we achieve our aim to export good quality Malaysian pineapples to China. We hope to further pursue our hopes in creating an exclusive brand for Malaysian pineapples.”

e+Solutions comes to Penang U-FREIGHT Group is taking e+Solutions, its logistics product designed for e-commerce start-up to the Malaysian marketplace. The service is being rolled out to U-Freight’s e-commerce fulfilment centre in Penang to offer a comprehensive e-commerce logistics package from dedicated storage space to order processing and fulfilment services including final delivery to customers. The Penang facility is equipped with hardware for storing and order processing, and software required for system integration and

MAB is halal certified

MAB Kargo’s halal logistics service was launched on 20 September after receiving the MS2400-Halal Certification from JAKIM on 1 May. The launch was held at the Malaysia Airlines Academy in Kelana Jaya with minister in the prime minister’s department, YB Datuk Seri Dr Mujahid bin Yusof in attendance. MAB Kargo signed an agreement with the first customers, Sejung Group of Korea, Nippon Express (Malaysia), Labuan Halal Hub and Serunai Commerce for their services. Speaking at the event, Ibrahim Mohamed Salleh, chief executive officer of MAB Kargo says: “After more than two years working towards acquiring the halal certification, we finally received the MS2400-Certification from

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end-to-end data transparency. Value-added or customised services are also available. Customers will benefit from data transparency with real-time inventory updates, web and mobile app access for immediate management and status updates of order instructions, plus live reporting of delivery tracking. Simon Wong, chief executive officer of U-Freight Group says: “We are confident that the roll out of e+Solutions to Malaysia will be as successful as the operation in Hong Kong where it is now a proven example of how we are utilising technology and infrastructure to help deliver bespoke logistics solutions.” JAKIM for halal logistics service under warehousing activities. The MABkargo halal logistics is tailored to the needs of the halal industry for reliable, safe and secure air cargo handling.” He adds: “We are now able to provide the logistics by maintaining the halal integrity of the shipment throughout the supply chain. MAB Kargo also aims at creating a competitive advantage for the country as the main halal corridor that would enhance trade network linking halal business worldwide.” The MS2400 certificate is applicable for MAB Kargo’s warehousing and related activities at its designated area. Facilities are also available to segregate halal and non-halal shipments. MAB Kargo is also listed on the Verify Halal app developed by Serunai Commerce, allowing customers and suppliers to verify the Halal status of a product or premises.

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