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The weekly newspaper for air cargo professionals No. 1,021

04 March 2019

air cargo Africa review IAG Cargo says olé to growth

ommercial revenue at IAG Cargo increased by 7.2% to €1.1 billion with a strong start to 2018, though growth slowed as the year progressed. Cargo increased by 0.2% to 702,000 tonnes with yields improving by 8.1%. Premium products performed well, with investments in a new Constant Climate Centre in Madrid, a Critical Service Centre in London and

improving customer experience on IAGCargo.com. Lynne Embleton, CEO of IAG Cargo says: “Revenues from our Constant Climate product have increased by 9%, and we have invested in a new multi-million-euro Good Distribution Practice certified Constant Climate Centre in Madrid to help meet growing demand for pharmaceutical shipments, in particular to the South American market. The importance

of our Constant Climate service was highlighted in August when we transported over 5.3 tonnes of the diphtheria vaccine to Venezuela to fight an outbreak of the disease.” The Madrid facility features two dedicated temperature-controlled chambers totalling 900 sq m. It is operated by an expert team, with shipments loaded onto dedicated airside docks and served by a fleet of refrigerated trucks to protect the pharmaceuticals from the cargo terminal to the aircraft. She adds: “In July we launched a new Critical Service Centre with a specialised customer service team dedicated to serving customers of our highest priority, non-off-loadable product. Our Critical consignment count grew by 35%, supporting mustfly shipments of products including aerospace and machinery parts, in-demand retail products, and technology components.” Looking to the future, Embleton says: “2019 looks set to be a more challenging year, with airfreight capacity growth outpacing growth in demand. Our focus on customer service, products and technology will allow us to continue developing our business as we seek to become the carrier of choice for customers worldwide.”

Amazon Air freighter crashes near Houston AN Amazon Air Boeing 767 Freighter being operated by Atlas Air has crashed near Anahuac, Texas with three people not surviving the crash on 23 February. Atlas Air Flight 3591 was flying from Miami to Houston when it crashed into Trinity Bay, approximately 30 miles southeast of Houston George Bush Intercontinental Airport

shortly before 12.45pm. CEO Bill Flynn is on site with a team from the airline, and he says: “This is a sad time for all of us. Our team continues to work closely with the NTSB, the FAA and local authorities on the ground in Houston.” In a statement following the crash, Captain Daniel Wells, an Atlas Air captain and president of the Airline

Professionals Association Teamsters Local 1224 says: “Our focus is on our friends and colleagues who were on that plane, and we are doing everything we can to support their families. Teamsters Local 1224 representatives are already on the ground supporting this investigation. We also thank the first responders who rushed to the scene to help.”

We were there so you didn’t have to be

British Airways is upgrading its fleet by committing to 42 Boeing 777Xs, including 18 orders and 24 options.

Pages 13-14

INSIDE DHL QUADRUPLES MADRID

DHL Express has invested €93 million in a hub at Barajas Adolfo Suarez Airport, quadrupling its capacity in Madrid. The 14,000m2 building, which ... PAGE 3

Willie Walsh, chief executive of IAG says: “The new 777-9 is the world’s most fuel efficient longhaul aircraft and will bring many benefits to British Airways’ fleet. It’s the ideal replacement for the 747 and its size and range will be an excellent fit for the airline’s existing network.”

As seen at OR Tambo airport ...

QUALITY TOOL TAKES FLIGHT

TIACA’S new Cargo Service Quality (CSQ) tool has officially launched, following a successful trial involving nearly 200 air cargo supply chain ... PAGE 4 SUCCESS FOR KUEHNE + NAGEL

NET profits at Kuehne + Nagel grew by 4.3% in 2018, helped by airfreight volumes and EBIT growing at double digit rates. Yearly net turnover was up ... PAGE 6

ANY passenger passing through OR Tambo International airport in Johannesburg is invited to have their photograph taken with a lifesize image of Nelson Mandela, first democratically elected president of South Africa. ACW editor James Graham was on his way back to London after air cargo Africa when he posed next to the famous statesman and father of the rainbow nation.

INNOVATION AWARD RETURNS

THE Cargo Innovation Awards will make a return this year, with three companies battling it out for a prize of $20,000. The awards aim to encourage ... PAGE 9

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DHL quadruples capacity in Madrid

HL Express has invested €93 million in a hub at Barajas Adolfo Suarez Airport, quadrupling its capacity in Madrid. The 14,000m2 building, which includes offices, will facilitate the sorting of 24,500 packages per hour and create 200 additional jobs. The 32,000m2 hub has a total of 176 loading docks enabling 160 road movements a day, as well as 10 daily flights operated by DHL’s own aircraft, and 30 daily commercial flights servicing 20 international destinations, mostly in Latin America. John Pearson, CEO of DHL Express says: “Customers from our traditional sectors as well as e-commerce customers in both private B2C as well as businesses who are driving their own B2B growth agendas through e-commerce will benefit from the investment. With this new hub in Madrid, we are connecting sellers and consumers around the world with even greater speed and efficiency.” Miguel Borras, managing director of DHL Express Spain and Portugal says: “This new hub is a critical nexus between Europe and the LATAM countries. Thanks to this, we could connect businesses from all industries and private consumers alike, and enable them to leverage from the increasingly growing e-commerce worldwide.”

B&H on the move in Miami

B&H Worldwide has moved its US East coast operation to a larger facility in Miami, tripling available warehouse capacity for customers. The larger facility features climate controlled and non-climate controlled areas to cater for the specialist aerospace shipments the company handles. In addition to more space, the Miami site also means larger structural parts can now be held within the building alongside long and short-term storage items requiring climate-controlled facilities. In combination with its FirstTrac software, the company is able to offer comprehensive warehouse and inventory solutions, including integration to other ERP and inventory systems. Stuart Allen, Group CEO of B&H Worldwide says Miami is not only one of the largest MRO markets in the US and world, but also one of the fastest growing. He says: “It represents one of the most connected gateways with its multiple flight connections and is thus the ideal location to have an expanded operation in order to cater for ongoing customer demand. The new operation’s close proximity to the airport cargo area will enable us to meet both existing and new customers’ needs.”

Trafficking training for Qatar Airways QATAR Airways has launched a training programme focused on preventing illegal wildlife trafficking to enhance employee awareness about the issue. The training programme aims to familiarise employees with the effects of wildlife crime, the common routes and methods used to smuggle wildlife, and how to report and respond to illegal activity. It will also be made available to customs and security staff at Hamad International Airport. His Excellency Akbar Al Baker, chief executive of Qatar Airways Group says: “The launch of this new training programme marks a significant milestone in our strategic approach to preventing wildlife crime across our network. Qatar Airways has a zero-tolerance policy towards the illegal trade of endangered wildlife, and is actively engaged in stopping illegal wildlife transportation in its tracks. We remain committed to providing our staff with the tools they need to combat this illegal activity.”

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TIACA Cargo Service Quality tool takes flight

IACA’s new online Cargo Service Quality (CSQ) tool has officially launched, following its successful trial involving nearly 200 air cargo supply chain companies. Oman Aviation Services, SATS at Singapore Changi Airport, and Asia Airfreight Terminal in Hong Kong are the most recent Cargo Terminal Operators to enlist in the programme, which aims to improve visibility and facilitate new air cargo global standards. Steven Polmans, TIACA vice chairman and Brussels Airport Company head of cargo and logistics says: “This is a prime example of airports leading the way for change in their communities, through embracing an environment of collaboration and visibility. Given the success of the pilot, we are very excited that this TIACA initiative is now being made accessible

to the wider industry, and we encourage interested parties to get in touch.” The online tool is a worldwide campaign by TIACA to set global benchmarking standards for the airfreight industry to adopt, and in turn enhance quality across the

chain. Sanjiv Edward, chief commercial officer of Delhi International Airport and TIACA board member says: “Momentum behind TIACA’s new CSQ tool is rapidly accelerating, and we are currently in advanced talks with dozens more air cargo supply chain companies, from Europe and Africa to Asia and North America, eager to sign up to the programme.” Following completion of the pilot, Kenya Airports Authority pledged to fully adopt CSQ by mid-2019 at all airports across the country. The tool is made up of four parts: benchmarking, assessment, improvement and excellence allows cargo terminals to provide ratings on several factors including process, technology, facilities, regulators and general airport infrastructure, amongst other variables.

Delta Cargo shifts to digital platforms THE re-launch of DeltaCargo.com has resulted in a significant shift from traditional booking platforms to digital platforms, improving visibility and e-AWB usage. The website’s improved customer experience and functionality allows for shipments to be booked, managed and tracked or checked-in from any device. There has been a substantial increase in the use of e-AWBs, shipment track-and-trace visits and online portal registrations. With a 15 percentage point increase in global online bookings compared to 2017, the website is now Delta Cargo’s number one global booking channel compared to other Delta booking channels. Lindsey Jalil, managing director – commercial for Delta Cargo says: “Our customers have welcomed the improved functionality of the website with the online booking volumes and registered user site visits reflecting that. We are focused on continuing to invest in technology and innovating the shipping process, making it easier to do business with Delta.”

Porta to run Kerry Logistics in Spain and Portugal

MARC Porta has been named Kerry Logistics managing director for Spain and Portugal, responsible for business development in the two countries. With 25 years of experience in the transport and logistics industry, Porta held top management positions at well known logistics service providers. Before joining Kerry Logistics, Porta held the position of managing director at Transcoma Global Logistics Worldwide.” With five locations in Madrid, Barcelona, Alicante, Valencia and Porto, Kerry Logistics’ key verticals are the fashion and lifestyle sector, electronics and technology, and fast moving consumer goods. The service portfolio encompasses a full suite of international freight forwarding solutions and a range of value-added services, offering integrated supply chain solutions from start to finish. Barcelona-based Porta says: “I look forward to working with such experienced teams, leveraged by a strong global network. We will strive to create additional benefits for our customers by providing them with a wider product portfolio. Focussing on outstanding customer service, the reputation of Kerry Logistics in Spain and Portugal is already excellent, and we will continuously improve it.”

Peli BioThermal goes to Dublin PELI BioThermal is continuing to expand globally with the opening of a network station and service centre in Dublin, Ireland. The Dublin facility is focused on Peli BioThermal’s Credo on Demand programme, which provides flexible rental options for temperature controlled containers such as Credo Cargo, Credo Xtreme and Credo Cube. The Credo on Demand rental programme allows organisations to choose the shipper application that best fits their requirements, logistics profile and budget. The Dublin network station and service centre is located in Harristown, next to Dublin Airport and is well placed to serve the pharma industry in Ireland.

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ACWBITES EGYPTAIR Cargo is increasing services from Cologne/Bonn Airport with weekly flights to Johannesburg on Sundays, and a second rotation on Thursdays in April 2019. Cologne will be linked with the three additional Egyptair Cargo destinations of Lagos, Nigeria; N’Djamena, Chad; and Khartoum, Sudan. VIETJET has ordered 100 additional 737 MAXs, with the $12.7 billion order being unveiled in a ceremony in Hanoi attended by US president Donald Trump and Vietnamese president Nguyen Phu Trong. The deal includes 20 MAX 8s and 80 MAX 10s. VietJet first ordered 100 737 MAXs in 2016. BAMBOO Airways has confirmed an order for 10 Boeing 787-9 Dreamliners, valued at $3 billion. The signing ceremony in Hanoi was witnessed by US president Donald Trump and Vietnamese president Nguyen Phu Trong. KEITH Collins, will retire from his role of president and CEO of St John’s International Airport Authority in June, after 15 years of service. His career spanned 46 years, with much of that time spent in senior level positions. ROBERT Coretz joined the Air Transport Services Group board of directors on 20 February. The 55-year-old is the former board chairman of Omni Air International, which ATSG acquired in November 2018.

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Another successful year for Kuehne + Nagel NET profits at Kuehne + Nagel grew by 4.3% in 2018, helped by airfreight volumes and EBIT growing at double digit rates. Yearly net turnover was up from 18.6 billion Swiss francs (CHF) in 2017 to CHF 20.7 billion in 2018, with earnings for the year growing from CHF740 million in 2017 to CHF772 million in 2018. The airfreight sector had a strong year with tonnage increasing by 11% to 1.7 million tonnes, with industry specific solutions for the pharma and healthcare and aviation industries playing an important role. Kuehne + Nagel acquired Quick International Courier, a company specialising in time-critical transport and logistics services.

Due to strong volume growth, consistent cost control and productivity gains, EBIT grew by 13.4% to CHF355 million. Dr Detlef Trefzger, CEO of Kuehne + Nagel

International says 2018 was “another successful year” with net turnover, gross profit and EBIT increasing despite the market weakening at the end of the year. He says: “By introducing additional digital platforms, with new highly specialised solutions and targeted acquisitions, we reached important milestones last year and will continue to pursue our journey. “Even though the growth momentum of the global economy slowed down at the end of 2018, we confirm our goals for the year ahead. In 2019, we aim at growing twice as fast as the market and improving our results further, complemented with selected acquisitions to our portfolio.”

One Share - One Vote proposed for Panalpina shareholders

PANALPINA shareholder, the Ernst Goehner Foundation has requested the implementation of One Share – One Vote at an extraordinary shareholders’ meeting. The foundation requests to amend the articles association of Panalpina by lifting the 5% registration restriction and 5% voting restriction. Since Panalpina’s initial public offering in 2005, the foundation was admitted with all its shares in shareholder meetings on the basis that the 5% voting restriction did not apply because it held the shares prior to the introduction of the restrictions. One Share – One Vote will render the 5% voting restriction obsolete and Panalpina says this will enhance corporate governance, while ad-

dressing concerns raised by certain shareholders. Minority shareholder Cevian Capital questioned the practice to fully admit the foundation with all its voting rights at the shareholders’ meetings. Cevian says that the 5% voting restriction must be applied to all shareholders and the voting power of the foundation must be reduced to 5%. DSV launched a bid to take over Panalpina, offering 170 Swiss francs (CHF) per share. The foundation, which owns 46% of the shares did not support the deal. The offer has been raised to CHF180 per share but Panalpina is looking at potential partnerships with Agility Logistics. Panalpina’s airfreight department broke the

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one million tonne barrier for the first time in its history, handling 1,038,678 tonnes, with volumes increasing every quarter. Gross profit per tonne increased 7% to CHF685 though reported airfreight EBIT was down slightly from CHF110.3 million to CHF108.2 million. Stefan Karlen, CEO of Panalpina says: “Air freight growth rates were strongest in the first quarter of the year, but markets slowed down in the following quarters. The softer than expected peak season meant that we could not pass on the higher procurement costs to our customers. For the first time in our history, we broke through the one-million tonne barrier, further strengthening our position as one of the world’s top air freight providers.”

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Welcome to Singapore

IATA WCS PREVIEW

aving departed the Americas following a successful 12th edition in Dallas, Texas, the IATA World Cargo Symposium will land in Asia with the 13th event taking place in Singapore from 12-14 March. Over 1,000 air cargo leaders and more than 40 exhibitors will descend on Singapore, an important logistics hub for two days of networking, business and conference sessions to discuss important industry issues. The 2019 edition of the show will take place at the Marina Bay Sands, offering the largest infinity pool on the roof of the world, 20 places to eat and an exclusive casino. From the rooftop pool and the Sands SkyPark viewpoint on the 57th floor, visitors can get spectacular views of the urban skyline

of the city. The bustling city-state is one of the most cosmopolitan cities in the world, and is considered to have one of the freest, innovative, competitive, dynamic and business friendly economies. It is the 14th largest exporter and 15th largest importer in the world. Colonial Singapore was founded in 1819 as a trading post of the British East India Company, and modern-day Singapore remains an important logistics hub with a major seaport and international airport. Changi Airport is home to more than 100 airlines flying to 400 cities, with an aircraft landing or departing about once every 80 seconds. In 2017, Changi broke the two million tonne barrier and continued to grow in 2018, when it handled 2.15 million.

Innovation Awards make a return

THE Cargo Innovation Awards will make a return this year, with three companies battling it out for a prize of $20,000. The awards aims to encourage new ideas to enrich customer experience and improve the competitiveness of air cargo. The finalists will introduce their ideas to the audience on 12 March before the winner is announced at the closing plenary on 14 March, selected jointly by the panel of judges and the audience. Three ideas have been shortlisted by an independent jury. The three finalists are Air New Zealand and Cargo Composites’ aeroTHERM ULD, SITA, Safran and CHAMP’s Smart ULD, and Unilode Aviation Solutions offering digital transformation. The aeroTHERM is a container fabric door that claims to insulate 25 times better than regular ULDs and curtains, allowing shipments to stay within desired temperature ranges for longer, reducing the use of thermal covers, wraps and

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heavier temperature controlled ULDs. The Smart ULD leverages event-driven blockchain by digitally tracking and monitoring ULDs during transport, providing geolocation, temperature/shock/vibration/pressure alerts, damage reports and reduce ULD loss or misplacement, as well as moving handling to digital formats. Unilode’s digital transformation says it allows for the fast and easy introduction of Internet of Things to ULD management and the air cargo supply chain. Bluetooth equipped ULD will allow customers to use the device as a proxy for tracking and status updates of their cargo while improving inventory control and damage reduction of their ULD fleet. The awards were launched at the 2015 WCS in Shanghai, China with CHEP Aerospace Solutions winning the inaugural award for its CanTrack solution (pictured). The second award at the 2017 WCS in Abu Dhabi was won by Astral Aerial with its UTM Concept for Africa.

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IATA WCS PREVIEW

Major issues to be discussed

he fun will start on 12 March at 9am with a Traditional Cultural Performance opening the show, followed by a welcome address by Goh Choon Phong, chief executive officer of Singapore Airlines. Goh will be followed on stage by Dr Lam Pin Min, senior minister of state for the ministry of health and ministry of transport to give a keynote speech. IATA director general and CEO Alexandre de Juniac will be next on stage to tell delegates about the state of the industry, followed by IATA’s chief economist Brian Pearce to deliver the economic outlook, looking back over the past 12 months and what to expect over the next 12 months. After a networking break, Glyn Hughes global head of cargo at IATA, and Carlos Tornero, deputy general counsel of IATA will deliver chairman opening remarks, then Hughes will

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deliver a year in review, where he will explain the successes and challenges of the last 12 months. Hughes will also cover the priorities for the coming year and present the results of the Shipper Survey 2019. Enabling global trade will be the next discussion, where James Hookham, managing director – membership and policy of the Freight Transport Association and Chin Yau Seng, senior vice president cargo at Singapore Airlines will discuss the advantages of air transport compared to other modes of transport. Nick Careen, senior vice president APCS for IATA will be on hand to moderate the session. After lunch, Marco Bloemen, managing director of Seabury Consulting will be first on stage to talk about e-commerce, how it will develop and what role Asia will play as a catalyst to air cargo growth. Having warmed up the audience, Sherine Teo, vice president digital and e-commerce

logistics for Singapore Airlines, Michael Steen, executive vice president and chief commercial officer for Atlas Air Worldwide, and Holger Winklbauer, chief executive officer of International Post Corporation will have a panel discussion about embracing market opportunities. Hughes will moderate the discussion. Next up will be Vivien Lau, executive director of HACTL, and Dan March, CEO of WCA who will discuss “Connecting the world through logistics”, talking about transparency, speed and predictability in global supply chains. Nicholas Ionides, divisional vice president of public affairs at Singapore Airlines will be on hand to moderate the session.

That’s all folks ...

The closing plenary will start at 2pm on 14 March with remarks from Glyn Hughes, then a discussion of the key outcomes with chair of the IATA Cargo Committee and Lufthansa Cargo CEO, Peter Gerber. The Innovation Award finalists will take to the stage then the audience will vote for the winner. Leveraging social media will be discussed, highlighting how it can be used personally and for business most effectively. Attracting young talent is a challenge for the industry, so recent graduates will present their thesis at the WCS as part of FACE-UP! With air cargo’s growth, the industry needs young talents and ideas to unlock potential. After all that fun, where next? Hughes will make his closing remarks and announce where the 2020 WCS will be held.

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Make sure you’re on the right track

THERE will be much to discuss, with tracks focusing on pharmaceuticals, dangerous goods, digital cargo, ULDs, live animals, cargo operations, Asia, cargo transformation, perishables, e-commerce, cargo security and freighters. From 9am to 12.30 on Wednesday, delegates will have the choice of joining the pharmaceuticals, dangerous goods, digital cargo or ULD track, while the afternoon will involve live animals, cargo operations, Asia or cargo transformation from 2pm to 5.30. Thursday 14 March will consist of tracks in the morning, focusing on perishables, e-commerce, cargo security and freighters. Delegates will be able to hear words of wisdom from industry leaders including Joachim von Winning, David Brennan, Henk Mulder, Benoit Dumont, Filip Vande Cappelle, Steve Townes, Ching Kiat Lim, Marcel de Nooijer, Gerton Hulsman, Bart Pouwels, Matt Fleming, and Tom Crabtree to name just a few respected speakers.

WORLD ROUTES

ABC adds Dhaka to Asian network LATAM Cargo connects Chicago and Campinas

irBridgeCargo Airlines (ABC) is extending its footprint in Asia with twice-weekly flights to Dhaka, Bangladesh to cater for westbound exports. The Bangladeshi capital is ABC’s 14th Asian destination and extends the airline’s ability to provide cargo deliveries to Europe, Russia and the USA. The flight will be operated in conjunction with ABC’s Shanghai, China service and give customers a vast choice of international connections over its Moscow hub. Sergey Lazarev, general director of ABC says the airline has been considering flights to Bangladesh “for the last couple of years” saying

LATAM Cargo has opened a direct link from Chicago to Campinas, Brazil cutting transit times to less than 17 hours. The Wednesday and Sunday Chicago-Campinas route will have the capacity to carry 100 tonnes per week using a Boeing 767-300 Freighter. Chicago is the 7th gateway to the US, together with Miami, Orlando, New York, Boston, Los Angeles and Huntsville using both passenger and freighter aircraft. Gabriel Oliva, commercial director for North America, Europe and Asia says the route will allow LATAM Cargo to provide a premium cargo service and provide connections to Asia. He says: “Many sectors will be benefited by this new route, which is confirmed by the interest the market has shown in being part of this

new destination. Our clients trust us because of our experience and commitment with a service of the highest of standards, assuring the quality of their cargo at all times.” Fish including salmon will be transported on the route, with Chilean exports to Asia increasing from an average of 37 tonnes a week in 2014 to 700 tonnes in 2018. Andres Bianchi, CEO of LATAM Cargo says: “Chicago is a key gateway in the United States and an ideal connecting point to Asia. Our new flights to and from the city provide our customers with access to key destinations and improved transit times. As the leading carrier in South America we are committed to improving connectivity between the region and the world while providing customers with more alternatives to reach their goals.”

exports are tipped to grow 25% as the number of manufacturers based in the country increase. He says: “This fact makes us feel confident that our operations will be appreciated by customers, especially by those with garments and apparel commodities, which constitute the major part of traffic from Bangladesh.” Lazarev adds: “With the lion’s share of cargo being Europe and USA bound, we will be able to leverage these flows, offering our customers solutions for various types of freight, including those with special handling requirements – including temperature-sensitive products, oversized and heavy shipments, live animals, e-commerce and others.”

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WORLD ROUTES

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Emirates navigates cargo into Kabul Saudia Cargo signs deal with ACS

mirates Flight Operations has developed a navigation technique to allow the airline to carry additional cargo into Kabul International Airport. The missed-approach procedure has replaced an older technique that required cargo bound for Kabul to be offloaded in Dubai during low-cloud or poor visibility weather conditions. The airline operates a daily flight to Kabul with a Boeing 777-300ER and within the first three months of implementation, the new solution allowed Emirates to carry an additional 250 tonnes of cargo into Kabul during low-cloud conditions. In addition to increased facilitation of trade to and from Afghanistan, the procedure has resulted in more streamlined cargo operations to Kabul, higher customer satisfaction and enhanced fuel efficiency. Kabul airport is situated in a wide valley at 5,800 feet and is surrounded by mountains that are over 11,000 feet tall. The airport has a number of constraints because of the challenging terrain, Air Traffic

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Control (ATC) and other security requirements. Kabul’s Runway 29 has two established missed-approach procedures with one of them requiring aircraft be able to climb at a steep angle when cloud cover is lower than 1,200 feet. Previously, when meterological reports predicted cloud cover below this level, cargo was offloaded in Dubai to make the aircraft lighter, but this often resulted in cargo not arriving on time. A new missed approach navigation procedure was developed with an easier climb gradient for Kabul’s Runway 29 taking advantage of the 777’s superior navigational accuracy. The team worked with flight design agency DFS Aviation Services, with regulatory credentials to analyse the terrain around the airport and develop a new procedure that could be implemented without delays in working with the local ATC. Once it was ready, it was coded into the Emirates Flight Management System and tested on simulators to confirm theoretical performance calculations and ensure that the aircraft would be able to clear obstacles in the case of a go around. Since implementation, Emirates has been able to carry significantly more cargo into Kabul leading to lower costs and more efficient operations, while optimised payloads and minimising chances of returning to Dubai has reduced fuel costs and carbon emissions. Emirates has in its capabilities, including pilot training technology and equipment to take advantage of the benefits of modern aviation without compromising safety.

SAUDIA Cargo signed a new business deal with Air Charter Service on the sidelines of the Air Cargo Africa conference in Johannesburg, South Africa.

The contract signing took place at the flower themed Saudia Cargo booth in the presence of CEO Omar Hariri, executive director commercial Amer Abu Obaid and director of charters Semih Kutlug. Air Charter Service was represented by assistant director of cargo sales Alex Ignatov and consultant from the Dubai office Nagib Kasbari. The business deal involves transporting rubber fenders for ship-docks by charter flights from DWC Al Maktoum International Airport in Dubai to Dhaka, Bangladesh. Hariri says: “We are very happy with this continuous business partnership between Saudia Cargo and Air Charter Service. We look forward to a successful long-term alliance between our companies.”

Liverpool-Leipzig Brexit alliance LIVERPOOL John Lennon Airport-based Wynne Aviation and Leipzig/Halle Airport have created an alliance along with Airport Park Leipzig Halle to establish formal contingency planning measures in case of a no-deal Brexit. The measures involve establishing a consortia of air cargo aircraft operators, warehousing operators, air cargo handling, customs clearance and trucking companies forming an alliance to support logistics requirements of the UK’s North West, North Midlands and North Wales automotive cluster and Germany’s eastern automotive cluster. Jota Aviation’s BAE 146-300F will be part of the alliance, and Volga-Dnepr Group is ready

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to provide support with its fleet of Boeing 737400SFs, Antonov AN 124-100s and Ilyushin IL-76s. 39,000 sq m of warehousing will be available adjacent to Leipzig/Halle, and both airports have 24 hour operations. UK and EU customs clearance will be available, along with airside door-to-door delivery and an air cargo transit warehouse in Liverpool. Tom Hughes, business development director at Wynne Aviation Services says: “Both Liverpool and Leipzig airports are located at the heart of two major automotive clusters and so the strengthening and marketing of our collective logistics facilities at this crucial time is an entirely sensible measure.”

AIR CARGO AFRICA REVIEW Liberalisation and modernisation on air cargo Africa’s radar A

AN enormous continent with 20% of the world’s surface area and 15% of global population, Africa certainly presents phenomenal opportunities. That is why African airfreight is standing on the edge of greatness. The signs are there, discovered attendees to air cargo Africa 2019.

he fifth biennial air cargo Africa event, the first under the management of Messe Muenchen, saw hundreds of airfreight executives head for the Casino Convention Resort, Emperor’s Palace in the City of Ekurhuleni, Johannesburg, buoyed by the opportunity to engage the global air cargo community by exploring and strengthening networking corridors with the African Continent. In its past four stagings, the show has seen major participation from world players plus key players from the African airfreight community. And this one was no different. A learned panel of eight industry experts, chaired by Glyn Hughes, global head of cargo at IATA, started the three-day event in Johannesburg with the most Africa-specific round table: ‘Liberalisation and modernisation – the way to push frontiers of excellence in the airfreight industry in Africa’. The general feeling of the panel was that, when the roadblocks to airfreight operations and wider aviation industry are removed, then the potential for the continent, both domestically and overseas, was enormous. Introducing the “very experienced panel,” Hughes reiterated that the panel would look at airfreight strategy towards Africa. The panel consisted of Omar Hariri, CEO, Saudia Cargo; Turhan Ozen, chief cargo officer, Turkish Airlines; Tewolde Gebre Mariam, CEO, Ethiopian Airlines; Jan de Vegt, chief operating officer, Kenya Airways; David Logan, CEO, South African Association of Freight Forwarders (SAAFF); Adrien Thominet, CEO, ECS Group; Steven Polmans, head of cargo and logistics, Brussels Airport Company; and, Sanjeev Gadhia, CEO and founder, Astral Aviation.

Industry thoughts

Starting the panel’s discussion, Hughes invited Mariam to give his thoughts on African airfreight liberalisation and modernisation. His ambition is to make it the leading airfreight carrier in Africa. His company had four pillars to their ambitions on the continent. They are: infrastructure development; investment in fleet, investment in IT; and bringing on board Africa-based professionals and HR specialists. “Africa is the last frontier for the airfreight industry,” said Mariam. “It is most important that the industry invests in professionals. It will then grow in all aspects.” He was followed by Ozen, who started by saying he was privileged to return to air cargo Africa after their last visit in 2017. He started his contribution by specifying the importance of one specific demographic. He said: “Young people are the future of the continent.” He added that he wanted his carrier, Turkish Airlines, to be the most significant serving the continent. At present, its importance is measured in the fact that 14 of the airline’s all-cargo freighter services serve Africa. For Saudia Cargo, its obvious proximity to Africa has led to a two-decade presence on the continent. Hariri says: “We are investing to allow us to develop a huband-spoke approach to Africa. We are perfectly situated to serve Africa.” He added that the key to much African traffic is perishable and flower traffic from many points. “This is key,” he said.

For de Vegt, the importance of airfreight to the Kenyan economy cannot be over-estimated. “Kenyan Airways is a cargo carrier not by accident but by choice.” He commented that he expected a 5% growth rate to continue in Kenya.

Gadhia said: “African aviation is about connectivity.” The allcargo carrier has been flying for around 20 years, during which time intra-African traffic has been growing at a glacial rate. “African countries do not buy from other African countries. Nigerians should eat South African beef, which is great, instead of flying it from North America.” One initiative that Astral is looking at is the use of cargo drones to penetrate those parts of Kenya and other countries otherwise inaccessible to modern supply chain vehicles. “We want to use drones to connect every village and every town in Africa to its own continent and abroad,” said Gadhia.

Start the discussion

The panel in deep discussion: from left: Hughes, Mariam, Ozen, Hariri, de Vegt, Logan, Thominet, Polmans and Gadhia Another positive factor that shapes his outlook is the fact that the first mention of Kenya airfreight exports immediately brings to mind the export of cut flowers to markets all around the world. A significant flower traffic is with New York. De Vegt comments: “Substantial international flower trade will create substantial traffic.” The East African country also has some of the highest penetration of mobile telephony, with only 2% of the population not connected to a mobile network. This has spurred an e-commerce growth in the country. David Logan then introduced his association for freight forwarders in the country. He described SAAFF as a “trade body with an interest in cultivating new talent into the industry.”

Through a glass

Popular Frenchman Thominet opened his remarks by stating that in his previous career in the wine industry, he had developed close links with South Africa. Paris-based GSSA ECS Group has great confidence in Africa, as witnessed by recent developments in Nigeria and other offices being opened elsewhere on the landmass. His opinion is that the continent is ripe for the expansion of GSA coverage. Touching on his company’s headline NexGen Leaders programme which is inviting young people with innovative ideas that might advance the logistics industry to enter them in a competion, he said: “We were completely surprised that there was such great interest from Africa. We expected interest from India and Asia but the response from Africa has been magnificent.” Polmans highlighted the importance of trade to and from the continent to the Belgian capital when he spelt out that over one in five tonnes of cargo leaving the airport is destined for Africa while one in five originated there. As an African-based carrier, Nairobi-based Astral Aviation has special reason to be interested in the growth and development of African cargo.

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Hughes concluded the opening session of the panel discussion by inviting audience members to provide questions and observations to the panellists. The discussion on the potential of e-commerce to grow in Africa sparked a lively discussion on its potential as well as the road-blocks that lie in the face of widening coverage. The speakers agreed that the continent offers great potential as its demographics create the largest cohorts of Millennials or young people in the world. While the demands cannot be denied, there are serious impediments to the successful satisfying of this growing demand. A lack of much vital infrastructure on the continent at the same time as the continent has “many borders” to cross, slows down the likely expansion of much of this traffic. Another unlikely issue facing door-to-door deliveries is the surprising lack of physical addresses for many citizens. Traditionally loose geographical descriptors or locations might have sufficed but nowadays collections points have to be established, which themselves may lack precise addresses. Lastly, only some two out of every ten people on the continent have bank accounts that would let them make purchases on-line. These accounts would also often be located in more industrialised and commercial countries leaving great swathes of the continent unattractive for e-commerce players.

Make us free

Liberalisation was the second theme of the audience participation. Hughes asked the African-based carriers to kick off this discussion. There are some 54 countries on the continent, of very many different levels of aviation industry practices. There may have been a 20-year push for an African ‘open skies’ arrangement but only 28 countries, just over half, have actually signed up to it. The Single African Air Transport Market (SAATM) is a deregulated airspace which allows aircraft to fly freely between the 23 African Union member states. The panel members and audience participants were all positive about what SAATM may bring to the party for airfreight but were warned that it had been an idea in development since 1998. The fact that many countries across Africa did not wish to or were not able to join was a disappointment to many in the hall. The lack of a major push from business was also a brake on the continued on page 14

ACW 4 MARCH 2019

AIR CARGO AFRICA REVIEW Liberalisation and modernisation on air cargo Africa’s radar

Continued from page 13 wider acceptance of the idea of open skies. Other bones of contention were the higher costs of aviation in Africa: something as basic as tyres saw one participant saying he spent 50% more on tyres serving Africa because of the rougher state of airfields. Another attendee pointed out that he paid around 9% more in overflight rights in Africa than elsewhere. The room was warned that it had taken the US and Europe 100 years for the same kind of open skies regimes as was being established in Africa. This caused some amusement from the participants. On a positive note, the backers of the SAATM were confident that it will only bring transformation and competition to the continent’s airfreight market when it is fully implemented throughout the landmass. The recent African Continental Free Trade Agreement (AfCFTA) is another key step towards the liberalisation of airfreight in Africa. One panellist described it as a game-changer, allowing Africa to trade with itself, somthing that in many cases is missing for African airfreight operations as many African consumers and businesses turn to imported products. One factor that some panellists pointed to as a brake on development of a 21st century aviation sector is the historic and political urge in much of the continent that to be a ‘proper’ state, a country must have a flag and a national airline. This will naturally lead to a multiplicity of airlines and operations and much duplication in an open skies enviroment.

ACW 4 MARCH 2019

TIACA’s ambitions revealed

TIACA (The International Air Cargo Association) is determined that it will become a proactive international association for all players in the global airfreight industry. Under the chairmanship of Sebastiaan Scholte and vice-chairmanship of Steven Polmans, the association is 18 months into a four-year plan to revitalise the association and make it the must-join body for all players in the industry. Talking to Air Cargo Week at air cargo Africa, Polmans says: “We wanted to transform TIACA so that it was relevant and important to our

members. To progress this ambition, the association met in 2016 to draw up a list of eight points for improvement.” However, Polmans is keen to point out that, in the spirit of ‘softly, softly, catchee monkey’, the association has not tried to implement all eight improvements at once. Instead, two were launched initially. Training and CSQ programme. Polmans says: “Training is very much about looking for the next generation and bringing on board young people.”

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One interesting development that TIACA is considering is its 21-year old TIACA Hall of Fame. “We have a Hall of Fame to mark those whose career is long and established. What about marking people during the middle of their career or even at the start of their lifetime?” Another development has been the move to create ‘clusters’ of members, say handlers, to come together and discuss common interests. “We plan to invite these clusters to come together to discuss common interests,” he says.

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