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DA ILY NEWS Thursday edition • 6 June 2019

The official daily newspaper of Air Cargo Europe 2019

CARGO’S CRÈME DE LA CRÈME

INSIDE GREEN LIGHT FOR LEJ'S ... The supervisory board of Mitteldeutsche Flughafen has unanimously cleared the way for investments including ... PAGE 4

ON THE STAGE

The winning touch: The winners of the ten catagories at the ACW World Cargo Awards gala dinner last night take to the stage. For full results, see page 3

A BIRTHDAY TRUNK CALL A fascinating story of a journey arranged to deliver a Myanmar government present to Moscow ... PAGE 6

BREXIT: FLYING IN THE ...

AZura signs MM ACF deal

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he next step in making Miami the permanent home of the Air Cargo Forum (ACF) was taken yesterday when directors of AZura International, publisher of the ACW Daily News, signed a contract with Messe Muenchen (MM) officials to develop a commercial relationship for the event. Building on the publisher’s long-standing relationship with MM, AZura directors Norman Bamford and William Carr joined Gerhard Gerritzen and Dr Robert Schoenberger to cement the relationship which sees AZura becoming the sole agent for stands sales in North America and Europe. Bamford says: “This is a great moment for Messe Muenchen and the future of the Air Cargo Forum. We will soon commence acquiring stand sales to ensure the first ACF in Miami is a great success.” ACW Daily News would like to thank staff on the WFS stand for keeping us supplied with coffee and pastries throughout air cargo Europe.

Virgin’s significant software investment revealed

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irgin Atlantic Cargo’s digital transformation which simplifies its business and give customers new self-service solutions will be powered by the implementation of the latest Accenture Freight & Logistics Software 8.0 (AFLS 8.0) platform. Suzy Wardle, Virgin Atlantic Cargo’s head of digital and distribution, said: “We are making this significant investment in a new cargo management system and digital infrastructure because the way customers want to interact with us, and their expectations, are changing as new technologies emerge in the cargo space. With Accenture’s full suite of AFLS modules, including cloud-enabled digital interactions with our customers and partners, we will evolve the way we do business and offer our products and services.”

Read more in our ACW ACE review issue June 17, 2019

THE aviation sector has been preparing for the UK’s withdrawal from the EU for some time; it is, after all, an ... PAGE 9

DRIVING TO THE FUTURE ... MANY industry outsiders consider that airfreight spends 100% of its time on an aircraft but few realise that it will ... PAGE 16

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ACW DAILY NEWS

The top guns of airfreight take the salute Here are all the well deserving winners of this year’s ACW World Air Cargo Awards 2019: Airfreight Forwarder of the Year Sponsored by: Air Asia Presented by: Mr Muhamad Hidayat - Head of Global Sales & Marketing at Air Asia. Finalists: DHL Global Forwarding, Dimerco, Expeditors, Kerry Logistics, Panalpina

Winner: Panalpina

Winner: Amsterdam Airport Schiphol

Winner: ECS Group

Air Cargo Industry Customer Care Award Presented by: Mr Stefan Rummel, Managing Director of Messe Muenchen. Finalists: Air Asia, Cargolux, ECS Group, Swiss WorldCargo, Webcargo

Winner: Cargolux

Air Cargo Industry Achievement Award Sponsored by: Dunleavy White Presented by: Ms Danita Waterfall-Brizzi, Partner at Dunleavy White Finalists: Air Asia, Air Charter Service, Air France/KLM/ Martinair, ECS Group, Turkish Cargo

Winner: Air France/KLM/ Martinair

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06 June 2019

Air Cargo General Sales Agent of the Year Sponsored by: Turkish Cargo Presented by: Mr Turhan Özen, Chief Cargo Officer at Turkish Airlines. Finalists: Air Logistics Group, ATC Aviation, ECS Group, Global GSA Group, Kales Airline Services

Winner: Air Charter Service

Air Cargo Charter Broker of the Year Sponsored by: SAVE Group – managing company of Venice, Verona and Brescia airports. Presented by: Mr Massimo Roccasecca, Cargo Director of Verona Brescia Airport and Mr Camillo Bozzolo, Director Of Aviation Development at Venice Marco Polo Airport. Finalists: Air Charter Service, Air Partner, Global Airlift Solutions, Hunt & Palmer

Air Cargo Europe 2019

Airport of the Year Sponsored by: Saudia Cargo Presented by: Mr Omar Hariri, CEO at Saudia Cargo. Finalists: Amsterdam Airport Schiphol, Changi Airport Singapore, London Heathrow Airport, Miami International Airport, Milan Malpensa Airport

Winner: Hong Kong Air Cargo Terminal (HACTL)

Air Cargo Handling Agent of the Year Sponsored by: Saudia Cargo Presented by: Mr Teddy Zebitz, Chief Air Cargo Officer at Saudia Cargo. Finalists: Alha Group, Asia Airfreight Terminal (AAT), dnata, Hong Kong Air Cargo Terminal (HACTL), Shanghai Pudong International Airport Cargo Terminal (PACTL)


ACW DAILY NEWS

(continues from page 3) Air Cargo Industry Marketing & Promotional Campaign Award Presented by: Mr William Carr, Chairman of AZura International. Finalists: Air Charter Service, Air France/KLM/Martinair, ECS Group, Ethiopian Cargo, Saudia Cargo

Information Technology for the Air Cargo Industry Award Presented by: Mr Vladimir Zubkov, Secretary General at TIACA Finalists: Accenture, BRUcloud, Cargoguide, Kale Logistics, Webcargo

Winner: Webcargo

Winner: Air France/KLM/ Martinair

Winner: ECS Group

Air Cargo Airline of the Year Sponsored by: ECS Group Presented by: Mr Adrien Thominet, CEO of ECS Group. Finalists: Air France/KLM/ Martinair, AirBridge Cargo, American Airlines Cargo, Avianca Cargo, Emirates SkyCargo, Etihad Cargo, Qatar Airways Cargo, Saudia Cargo, Swiss WorldCargo, Turkish Cargo

Air Cargo Europe 2019

Green light for LEJ's second cargo city

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he supervisory board of Mitteldeutsche Flughafen has unanimously cleared the way for investments including a second cargo city in the northern part of Leipzig/Halle Airport. The shareholders agreed to investments in apron areas, logistics and office buildings in the northern and southern parts of Leipzig/Halle as well as the cargo city, investing around €500 million over the coming years. Taken together with the expansion of the DHL hub, which was announced with DHL during the autumn of last year, this is the largest investment package for the airport since the 1990s. The airport company will bear the responsibility for the investments. Dr Matthias Hass, Saxony finance minster who

represents the Free State of Saxony as the main shareholder, says: “Leipzig/Halle Airport is developing very well. It and its surrounding area are the major job creator for the region. We’re continuing to invest in the future of the airport to continue growth in the long term.” Götz Ahmelmann, CEO of Mitteldeutsche Flughafen says: “I’m delighted that the shareholders are supporting our course with such commitment. We can now continue to expand our excellent market position for cargo. Leipzig/ Halle Airport is already the fifth-largest freight hub in Europe and the second-largest in Germany. And this growth is continuing: we were able to set a new record with freight volumes totalling 110,419 tonnes as recently as March 2019.”

Unilode signs TUI for a decade

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nilode Aviation Solutions, outsourced unit load device (ULD) management and repair provider, and the TUI Group airlines have renewed their agreement for the supply and management of containers and pallets for another 10-year term. Gunther Hofman, director of ground opera-

tions TUI Aviation, said: "TUI Group airlines have partnered with Unilode for 12 years for the supply and management of ULDs. During this time Unilode has successfully handled the specific challenges that come with our airline operation, including significant differences between summer and winter schedules and the operational needs triggered by our ad-hoc flights.

Check out all the Nexgen Leaders results in ACW ACE review issue June 17, 2019

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ACW DAILY NEWS

A birthday trunk call A fascinating story of a journey arranged to deliver a Myanmar government present to Moscow

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o celebrate the 70th anniversary of diplomatic relations between Burma and the USSR, the current government of Myanmar gifted to the Russian Federation three four-year-old elephants: Hsu, Swe and Nyein. It was determined that the famous Grandpa Durov’s Corner Theatre would provide accom-

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modation for the young creatures. Bolloré Logistics Myanmar in partnership with Major Cargo Service/Moscow Aviation Hub was awarded a contract to handle this project Negotiations revealed that a number of auxiliary services would have to be provided, such as to ensure fabricating cages to fit the elephants nicely in accordance with the aircraft’s cargo

door dimensions, to supply sufficient amounts of fodder and make sure absorbent bedding were all in place, procuring various permits (CITES, a certificate of origin, a vet certificate, and so on), synchronising with the airport teams for the necessary to receive the elephants, load the cages onto the chartered plane, taking care of the export and import customs clearance and veterinary control procedures and, finally, transferring the animals from the arrival airport to Grandpa Durov’s Corner Theatre, downtown Moscow. Bolloré Logistics drafted a list of service providers to find an animal cage manufacturer, a sawdust provider and an elephant fodder provider in Myanmar.

Unforeseen obstacles

The elephants’ journey was expected to take place in September. However this was delayed as the consignor had difficulties preparing the documents required for the veterinary control in Russia. Vet certificates issued in Myanmar had multiple deviations from the standard prescribed by the Russian veterinary regulator. The next surprise was that Bolloré Logistics had been given wrong information about the elephants’ dimensions. An animal’s height is usually measured at the withers; however, for freight purposes it is important to measure these animals at the highest point of their body, the hump. As the forwarder received updated details, it had to ask the cage manufacturer to

alter the cage sizes; we also had to discuss every extra inch with the air carrier to make sure that the exotic cargo would still fit into the aircraft hold.

A happy ending

By mid-November, everything was sorted out. A Bolloré Logistics spokesperson said: “We had purchased plenty of fruits for the time they’d spend within these cages, an entire 24 hours and had all the paperwork in place. Once the freight plane landed in Moscow Vnukovo Airport, handling operations started: the elephants were reloaded from the aircraft directly into warm road freight vehicles in which they remained until we completed all customs and vet control procedures. "A short while later the elephants had been cleared by the customs. Thus, all remaining formalities  were completed, and the animals were carried by road to their new home,” he said. Just like in the rest of South East Asia, elephants are considered sacred animals in Myanmar and their safety and well-being was the biggest concern. “Thanks to the dedication of the team that stayed with them every step of the way, this operation was a great achievement professionally, but more importantly humanely. We would also like to thank all the parties involved for their support to make this adventure a real success,” said the spokesperson.

Have they packed their trunks?

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SIXTY SECONDS with

GINGER EVANS ACW: If you were a Microsoft Office program, which one would you be? Evans: Definitely Microsoft Project. I love identifying the main tasks, trying to identify tasks that can be done concurrently rather than sequentially, establishing deadlines and then measuring progress against the baseline program. ACW: Tell me two truths and one lie about yourself? Evans: I am a people person; I am supremely confident; I have issues with work life balance. ACW: If you were a car, what kind of car would you be and why? Evans: A 1964 Ford Mustang with the original 289 V8 engine. No frills, moves fast in a pinch and a whole bunch of fun.

ACW: If you were on Death Row, what would be your last meal? Evans: Sausage gravy and biscuits.

ACW: What would your autobiography be called? Evans: I Had it All (My generation of women were told that you had to choose between career and family. Guess what! I have both. It wasn’t true then – and the younger generations of women have disproved it many times over.)

When you're finished, Old Sparky is ready for you

Air Cargo Europe 2019

. om n vro t of fu , om lo Vro hole Aw

Ginger Evans is CEO of Reach Airports, a US-based airport management joint venture between Munich Airport International and The Carlyle Group’s CAG Holdings

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ACW: If you had to be shipwrecked on a deserted island, but all your human needs — such as food and water — were taken care of, what two items would you want to have with you? Evans: Books and music. ACW: If you had a choice between two superpowers, being invisible or flying, which would you choose? Evans: Flying!

ACW: What motivates you in life? Evans: Tackling complex projects and providing opportunities for career advancement for the next generation.

ACW: What do you think about when you are alone in your car? Evans: Our daughters and our son-in-law; our last family time together and our next planned family gathering. ACW: What song best describes your work ethic? Evans: Standing Outside the Fire by Garth Brooks. ACW: What’s your favourite book? Evans: The Swerve.

ACW: What’s the most interesting thing about you that we wouldn’t learn from your resume alone? Evans: I am an accomplished pianist.

ACW: Beer or wine? Evans: Depends on the season – rose in early summer, beer in late summer – and the colder it gets, the darker the red wine gets.

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ACW: We finish the interview and you step outside the office and find a lottery ticket that ends up winning $10 million. What would you do?? Evans: Send every charity on our annual contribution list a big cheque. Then…


ACW DAILY NEWS

AIPUT secures additional £55 million credit facility from RBS

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berdeen Standard Investment’s AIPUT fund (Airport Industrial Property Unit Trust) has secured a £55million revolving credit facility with its long-term financial partner, RBS International. The facility will provide flexible access to capital available to finance AIPUT’s high quality industrial acquisitions and development projects at the London airports. Strategic opportunities are expected to surface in the months ahead as a result of the uncertainty engendered by Brexit and the perceived political risk of continuing friction in global trade policy. AIPUT, a specialist airport real estate fund managed by Aberdeen Standard Investments, holds a diverse portfolio of air cargo and other airport-related property assets serving the London airports of Heathrow, Gatwick and Stansted. The overall fund value currently stands at around £670 million. The three principal London airports dominate UK air-traffic activity, processing over two million tonnes of air freight in 2018. The new £55 million revolving credit facility supplements an existing £145 million debt facility made available in 2015. AIPUT has a successful ongoing relationship with RBSI stretching back to 2010. Commenting on the deal, Nick Smith, AIPUT fund manager, said: “The new credit facility adds to AIPUT’s considerable capital resources, enabling us to respond quickly to targeted

25,000 sq m air cargo facility that AIPUT is currently building for dnata, close to the Heathrow Airport Perimeter Road investment opportunities that meet our growth and diversification objectives. “As a market leader, we are driven to deliver greater choice, flexibility and value to our customers, positioning ourselves to capture an expected new wave of airport-related industrial demand. With a portfolio close to full occupancy, we are keen to secure the sites and develop the floorspace necessary to help London’s airports enhance their global competitive positions.” Alison Freshwater, of global private markets & real estate structuring at Aberdeen Standard Investments, commented: “We are very fortunate to have a long standing and strong relationship with RBSI, who work collaboratively with us to offer

pragmatic and tailored lending solutions which deliver the best value for our investors.” Jamie Bennie-Coulson, director of real estate at RBS International, added: “This is an award winning fund with high quality assets that is managed by a top tier investment manager so we’re delighted that we’ve been able to support AIPUT by increasing their debt facilities.” The fund had acted in recent months to further reinforce its financial war chest through the disposal of real estate holdings at Glasgow and East Midlands airports, further increasing the resources available for further investment relating to London’s airports.

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By Alex Veitch, Head of Multimodal Policy, FTA

Brexit: Flying in the face of uncertainty

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he aviation sector has been preparing for the UK’s withdrawal from the EU for some time; it is, after all, an industry reliant upon cooperative international agreements. FTA, the organisation representing the interests of the logistics sector, is hoping the UK and EU27 will reach an agreement on its trading relationship postBrexit before the UK’s new proposed departure date: 31 October 2019. So, how would the main choices on the table – the Withdrawal Agreement, a No-Deal exit, Canada Plus and Single Market 2.0 – impact the air freight sector?

Leaving without a deal

ARRANGEMENTS ALLOW AIR CONNECTIVITY BETWEEN THE UK AND EU

Approval of the Withdrawl Agreement

FTA hopes the UK Parliament will approve the Withdrawal Act and Political Declaration to prevent a No-Deal Brexit from occurring. If an agreement is reached, it would be ‘business as usual’ for aviation while the future political and economic relationship is finalised. The Political Declaration, which points towards the final deal, includes positive statements on aviation, committing both sides to “ensure passenger and cargo air connectivity through a Comprehensive Air Transport Agreement (CATA).”

Single market 2.0 or Canada+

If the UK decides to go for a softer, Norway-style Brexit or “Single Market 2.0”, then we might find little would change materially for air cargo. However, a harder, “Canada Plus” Brexit, or a Brexit that involves staying in a Customs Union, but not the Single Market, would likely require a future CATA. FTA, which speaks for the UK logistics industry, will keep

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IN NO-DEAL, TEMPORARY

Air Cargo Europe 2019

Leaving the EU without a deal in place would be the worse-case scenario, according to FTA. And while the risk of No-Deal has receded for now – thanks to the extension to the UK’s departure date – it remains the legal default in the absence of alternative arrangements. As such, FTA is advising its members to use this time wisely to advance their No-Deal preparations. In the event of a No-Deal, temporary arrangements have already been agreed to allow air connectivity between the UK and the EU territory, but there would be some restrictions on cabotage for UK cargo operators. Air freight security (ACC3) arrangements will enable direct cargo flights to continue, but the connectivity arrangements are for a 12-month period only from the date of the UK’s departure; contingency arrangements are also in place for safety authorisations and detailed sector-specific regulation. More broadly, in a No-Deal scenario the UK and the EU would need to put in place a long-term stable Air Services Agreement and permanent arrangements on technical and safety matters as soon as possible.

Veitch: FTA is grateful for the extra preparation time the agreed extension offers to its members

pushing for the best outcomes for the sector, while continuing to support its members in their preparations and remaining vigilant to respond quickly should the situation change. FTA is grateful for the extra preparation time the agreed extension offers to its members and advises them to use this time wisely to advance their No-Deal preparations. Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.


ACW DAILY NEWS

Success within Reach Reach Airports, the US-based airport management joint venture between Munich Airport International and The Carlyle Group’s CAG Holdings named industry veteran Ginger Evans as CEO last year.

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ver the past three decades, she has successfully served in key leadership positions of government agencies and private firms within the aviation and transportation industry. Her background is set to

provide leadership to the new company which offers training, consulting and management services to the aviation sector in the US, Canada, Mexico and other OECD countries. At Reach Airports she will be responsible for the overall management of the company, business devel-

opment serving the North American market and partnerships with airport-related services firms. Evans says: “I have completed several start-up endeavours; for instance opening new offices in New York and Washington – both highly competitive markets. Based on the sterling reputation of Carlyle and Munich Airport, I was expecting solid support from both companies. This expectation was not only met but also exceeded by far – the level of commitment and staff effort has been incredible.”

Build it and they will come

When she was with Stapleton International, the old Denver airport, the company built a cargo building “on spec” with a highly efficient ramp and good landside access. It was quickly fully leased so two more were built. “Those also quickly leased. At Carter Burgess, we had a standing relationship with Trammel Crow who was building cargo buildings in the 1990s. We would buy or lease the land, design and construct and hand the key to Trammel Crow,” she says. “One of our more interesting assignments was to assist with cargo operations for London when the new Heathrow automated shed had start-up issues. We added equipment to Gatwick (belts, refrigerator, storage racks) so that we could sort there, and then return the sorted cargo to LHR for pickup. “When we arrived at Gatwick, it was a simple shed with little interior equipment for moving and sorting cargo. My recollection of Gatwick was that everything came in very fast, and the need was to sort and truck it out quickly. Most of the cargo facilities we developed in the 1990s

had three levels of refrigeration for short to medium storage: cool, cold and frozen. In the initial retrofit, I believe we only had time and space to provide cold storage. One interesting observation from my time at Gatwick – most of the trucks had Dutch tags. Their long history of trading and transport continues into this new century.”

I’M A BIG BELIEVER IN MBWA – MANAGEMENT BY WALKING AROUND Evans is a “I’m a big believer in MBWA – Management By Walking Around. You see and hear things that you just do not notice in meetings or certainly not by sitting at your desk. Plus – there is nothing more inspiring as a leader than seeing an active aircraft ramp. The minute-to-minute Continued on page 21

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ACW DAILY NEWS

Etihad Cargo’s digital transformation hails new era of cargo management

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tihad Cargo migrated to a new technology platform just over six months ago, achieving a remarkable step change in the way it runs its operations and engages with its customers. Last year, the carrier embarked on a strategy that saw the introduction of several transformation programmes across its fleet and network, commercial and operational processes, and its physical and digital infrastructures. This culminated in the carrier’s successful front-end systems migration to the market leading IBS iCargo solution in October 2018, and celebrated the launch of its online booking portal. Almost eight months on, Etihad has managed a major distribution channel shift and proudly accepted 14.4% of its total bookings online since the October 2018 “go-live” milestone. Additionally, March 2019 has recorded the most successful performance yet with 16.4% of monthly bookings coming through the online portal, surpassing all records for similar portal launches for any other cargo carrier within the same period. Etihad Cargo now has over 6,000 unique registered users making online bookings every month, and the numbers are continuing to trend upwards as 18.2%

of the bookings were made online during the last week of March. Building on this initial digital investment, round the clock work within Etihad Cargo continues with the carrier successfully completing trials for another major distribution channel, using automated Freight Forwarder Messaging (FFR) to instantly allow bookings to be made and confirmed. These pilots were undertaken with DHL Express and DB Schenker and completed successfully in March 2019, and are in the process of being progressively rolled out across their global operations as well as to other key forwarder customers. Rory Fidler, head of technology and innovation, Etihad Cargo, said: “Etihad has made great strides in implementing the first phase of its digital ambitions over the past 18 months. "We placed investments in digital transformation and innovation at the core of our new strategy, underpinning a renewed customer-driven culture within the organisation. "The fruits of that investment and hard work are transforming the way we interact and do business with our customers, and are opening up a multitude of future opportunities.” Another innovation will soon make booking with Etihad Cargo even easier, with the

development of a new distribution channel featuring Application Programming Interface (API), which will provide customers with quoteto-booking functionality before the start of the third quarter. In addition to the real-time insights afforded by the IBS iCargo platform, the ongoing implementation of market-leading customer relationship management software Salesforce, and use of Enterprise Business Intelligence will provide visibility and insight into customer and market trends, allowing the business to remain agile and relevant to customers. “Within such a short period of time we have gone from being a very conventional air cargo operator, to being the most digitised air cargo carrier of our size globally,” added Fidler.

ETIHAD HAS MADE GREAT STRIDES IN IMPLEMENTING THE FIRST PHASE OF ITS DIGITAL AMBITIONS

Zencargo secures $20m in Series A funding

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igital freight forwarder Zencargo has completed its Series A funding round, bringing the total funds raised to $20m. The round is led by HV Holtzbrinck Ventures, with participation from Tom Stafford, Managing Partner at DST Global, Pentland Ventures, and previous investors Samos, LocalGlobe and Picus Capital. Zencargo approaches logistics differently from the traditionally paper-based industry, transforming supply chain management through software and automation, says the company. Established in 2017 by Alex Hersham, Richard Fattal and Jan Riethmayer, the company’s digital platform has already been adopted by many of Europe’s leading growth businesses, including some with billion-dollar supply chains. The speed at which the company can deploy solutions has seen the business grow incredibly quickly, with Zencargo growing sixfold in the last year. Hersham, co-founder and chief executive, said: “Failing to digitise the supply chain is holding back global businesses, with $1.1 trillion left on the table from stock-outs and inventory mistakes. Our mission is to change this.”

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Ghana latest to benefit from world’s largest vaccine drone delivery network

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“The ability of the government to supplement routine immunisation on demand will allow us to make sure that there will always be enough life-saving vaccines for every child in Ghana,” said Dr Seth Berkley, CEO of Gavi, the Vaccine Alliance. “This is ultimately going to ensure we leave no one behind and help us protect more children against vaccine preventable diseases.” Logistics will be managed through Zipline’s hardware and software systems in each of the distribution centres, and deliveries

will take place at hospitals and health clinics. The UPS Foundation will provide $3 million, including $2.4 million in funding and UPS will provide $600,000 of in-kind shipping services. Separately, UPS has begun an analysis of Ghana’s healthcare supply chain. “The programme’s success demonstrates that the collective effort of a public-private partnership focused on supply chain technologies can enhance access to life-saving medical commodities throughout Africa,” said Eduardo Martinez, president of The UPS Foundation and UPS chief diversity and inclusion officer. “We are inspired and honoured to be part of this collaboration. We acknowledge the visionary Ghana government, Gavi, for their dedication to helping improve the health of communities in Ghana and around the world, and Zipline, for their leading-edge technology and passion to advance community health systems.” UPS will provide technical guidance and consultancy services as needed, in consultation with Gavi and collaboratively with Zipline. Zipline drones now deliver more than 65% of Rwanda’s blood supply outside of the capital, Kigali.

Air Cargo Europe 2019

he UPS Foundation, which leads the global citizenship programmes for UPS, and Gavi, the Vaccine Alliance, have supported the expansion of a medical drone network into Ghana. Zipline, a California-based automated logistics company, will use drones to make on-demand, emergency deliveries of 148 high-priority products including emergency and routine vaccines, blood products and life-saving medications. The service will operate 24/7 from four distribution centres, each equipped with 30 drones, and deliver to over 2,000 health facilities serving 12 million people across the country.

With support from the UPS Foundation, Gavi, and other partners, Zipline drones will serve up to 2,000 health facilities and 12 million people in Ghana.

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AOG-247 signs with B&H Worldwide in UK and Germany

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erospace B&H Worldwide, the award-winning aerospace logistics provider, has signed a multi-year deal to provide fast-expanding aircraft and engine components supplier AOG-247 with warehouse and inventory management services at both London Heathrow and Frankfurt. Under the terms of the contact B&H will provide full inventory management at both locations including complete consignment handling and access to the B&H FirstTrac online portal. B&H will initially be responsible for managing the UK headquartered company’s commercial engine inventory (introducing CFM56-7 Life Limited Parts) which AOG-247 will base from B&H's Frankfurt warehouse.. David Bradley, managing director of AOG-247 says: "Over the past six months we have seen rapid growth in sales and taken advantage of opportunities to acquire multiple material packages and assets. The services offered by B&H will enable us to have a larger footprint in these markets both now and in the future through having our inventories located at these two strategic airports."

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The partnership between the Rwandan government and Zipline, supported by philanthropic grants and in-kind support from The UPS Foundation and Gavi, pioneered just-in-time drone delivery of blood products to hard-to-reach clinics in Rwanda. The Zipline drone network will be integrated into the national healthcare supply chain in Ghana and will help prevent vaccine stockouts in health facilities as well as during national immunisation campaigns.


ACW DAILY NEWS

Milestone for global carbon standard for airport operators This year marks 10 years since the launch of the Airport Carbon Accreditation programme. Some 264 airports now actively engaged in addressing their impact on climate change. Airport operators of 49 airports worldwide are carbon neutral

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t this year’s ACI Asia-Pacific & World Annual General Assembly (WAGA) which took place in Hong Kong, Airports Council International (ACI) provided an update on the latest developments among the commu-

nity of 264 airports currently in the global carbon management standard, Airport Carbon Accreditation. Initially launched in Europe in 2009, the independent annual certification programme has since gone on to become the global standard for airport operators seeking to

address their carbon footprint. Niclas Svenningsen, who heads the Climate Neutral Now initiative at the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat in Bonn, Germany commented “In terms of pure scale, Climate change is a daunting challenge – people’s reactions range from intense anxiety to jaded cynicism. The best response is to try to do something about it – starting by taking responsibility for what you control, for what you deal with. "For this reason, I congratulate ACI on a decade of Airport Carbon Accreditation. It is an inspiring example of an industry that proactively sought to make a positive Olivier Jankovec, director general ACI Europe; Angela change – and now with 264 airports Gittens, director general ACI World and Patti Chau, regional on board – it is succeeding in doing director, ACI Asia-Pacific holding a 10th anniversary prop. that. I invite people to find out more about their local airport’s involvement and ambitions – mobility is a fundamental part of life, so let’s try to make it as Level 2 ‘Reduction’ and five airports at Level efficient and ecological as possible.” 3 ‘Optimisation’, the highest level possible Angela Gittens, director general of ACI World without using carbon offsets. Airport Carbon said “The global airport industry is committed to Accreditation has been live in Asia-Pacific since reducing its carbon emissions and, in 2009, the November 2010 and the 54 accredited airports Airport Carbon Accreditation programme was in the region welcome 37.3% of annual passenlaunched in Europe to empower airport opera- ger traffic. tors with a detailed, multi-step path to carbon With four different levels of accreditation neutrality. We are delighted that the programme covering all stages of carbon management (Mapquickly gathered global momentum which is a ping, Reduction, Optimisation and Neutrality), reflection of how airport operators think local Airport Carbon Accreditation is independently and global. Running an airport is a complex administered, institutionally-endorsed and business and airport operators are one piece has the support of the United Nations Frameof this puzzle with many stakeholders on the work Convention on Climate Change (UNFCCC), airport site. Working relationships need to be the International Civil Aviation Organisation fostered and maintained and airport operators (ICAO), US Federal Aviation Administration and are addressing their direct carbon emissions, the European Commission (EC). but also engaging partners to address theirs.” To reduce their carbon emissions, airport operators need to consider the full extent of the emissions sources under their direct control. Accreditation On the occasion of the ACI Asia-Pacific and Investment in more energy efficient lighting, World Annual General Assembly, 18 of the 54 heating, switching to hybrid or electric ground accredited airports in the region were pre- vehicles, onsite renewables, energy managesented with their certificates, including eight ment tools and employee behavioural change airports at Level 1 ‘Mapping’, five airports at all have a part to play.

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ACW DAILY NEWS

NEW TECHNOLOGIES Oxford dons its hat for new ecargo bike

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Air Cargo Europe 2019

NEW technology-led, eCargo bike manufacturer from Oxford, Electric Assisted Vehicles Limited (EAV) has launched with Project 1 (P1) eCargo bike at the eBike summit in Oxford in April. EAV has assembled a team of highly qualified and experienced engineers from the automotive, motorsports and aerospace industries in order to produce a ‘culturally focused’ solution to sustainably disrupt the way products and

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services are moved. Their approach has been to conceptually ‘engineer down’ from current Light Commercial Vehicles rather than ‘engineer up’ from the humble bicycle to transform urban mobility for the better. In doing so, operators of the P1 will still find many of the elements of using a van they are used to but with the immense efficiencies and zero emissions of the eCargo bike, says the company.

Driving t M

any industry outsiders consider that airfreight spends 100% of its time on an aircraft but few realise that it will spend 100% of its time being moved to an from an airport, often by a road vehicle, on the ground. Trucks and commercial vehicles, such as vans, have been used since the start of aviation to transport freight intended for flight. What is very much in flux now is their control methods and means of propulsion. Car manufacturers may have stolen a march on truck makers by pioneering autonomous, driverless vehicles but the truck makers are catching up. Driverless trucks could very well be a regular presence on many roads within the next decade.

Electric avenue

In a recent blog, Gavin Borthwick MILT of Greencarrier Freight Services (UK), spelt

out his thoughts on how electricity could soon move the world’s truck and van fleet. He blogged: “Today, automated and connected vehicle technologies are among the most heavily researched automotive technologies. What we see now is only a fraction of what will be developed for the future. “The major global truck manufacturers are starting to invest in electric vehicle technology and preparing to put the first generation of electric trucks on the road. In late 2017, Tesla Inc. introduced its electric Tesla Semi with production planned for 2019 and Volvo Trucks recently delivered its first all-electric trucks in Sweden.” A recent report in the Financial Times from the Hannover truck and bus show “feels deceptive”. Everywhere the reporter walked, there were electric and hybrid trucks, “giving the impression that new technology is on the

ascendant.” However, in the real world, whatever green thoughts a company my espouse, ‘whole life costs’ (the lifetime costs of buying and then operating a vehicle) still matter. This is why 97% of heavy-duty trucks sold in Europe this year are diesel, largely down to costs. Buyers of trucks and buses are unwilling to pay more for electric vehicles that do little to boost profits. This creates a problem for manufacturers, who want to sell more electric vehicles. The chief executive of Daimler Truck, Martin Daum, was quoted by the newspaper: “If you have a truck that costs €100,000 and another that costs €150,000 but does the same job, which are you going to buy?” While battery prices are coming down, the prices for carbon burning engines are going up as manufacturers were reported by the FT to be switching to electric.

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road vehicles of the future

g to the future DHL Freight pilots first LNG truck with mega trailer in Germany

ROAD freight vehicles may lag behind passenger cars in terms of electric and driverless technology … but they are catching up fast

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Sustainable solution

“The combination of LNG truck and mega trailer is a promising sustainable solution for automotive logistics. We are able to meet the customer’s transport requirements in the best possible way, while also significantly reducing greenhouse gas emissions along the supply chain. “The increase in fuel efficiency and proven reduction of harmful emissions that comes with using natural gas help to make long-distance road transport more sustainable,” states Uwe Brinks, CEO DHL Freight. DHL Freight has gained initial experience with LNG trucks in Belgium. Since summer 2018, four of these heavy-duty, long-haul trucks have been part of a sustainable transport solution for one of the world’s largest developers and sellers of athletic footwear and sportswear. Now, for the first time, a natural gas-powered truck can be combined with a mega trailer, a feat previously not possible due to tank design.

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06 June 2019

At the same time electric power trains are being developed, liquefied natural gas (LNG) powertrains have taken centre stage. DHL Freight, one of the leading providers of road freight services in Europe, has deployed one of the very first liquefied natural gas (LNG)-powered Iveco Stralis long-haul trucks capable of towing a mega trailer. During a year-long trial period the truck will operate as a daily shuttle between DHL’s logistics center and a BMW Group production plant in southern Germany. Thanks to a higher loading height and increased fuel efficiency, mega trailers in road transport are particularly important for the automotive industry, making BMW Group the ideal partner for testing in Germany. Since last year’s contract renewal with the BMW Group, DHL has been managing the automotive manufacturer’s supply chain in seven additional areas, as well as all road transport between 17 countries.


ACW DAILY NEWS

NEW TECHNOLOGIES

road vehicles of the future

Four questions, one future WE asked companies that operate tractors and trailers to move airfreight on Europe’s road four simple questions: 1/ Would your company consider investing in driverless trucks for your road feeder services. If not, what are the reasons stopping you? In principle yes, but only in the future, not right now. There are still many regulatory and infrastructure hurdles before this type of technology can make effective headway. Audrey Weedon. Wallenborn Transports

Of course we would consider investing in driverless trucks. It would be safer, you could increase the truck utilisation and of course save labour costs. However the total cost of ownership should ideally be lower than now, meaning that the investment/ purchase price should not be cost prohibitive. Sebastiaan Scholte, CEO, Jan de Rijk Logistics

Driverless trucks is possibly something we will look at in the future but we have no short term plans to replace our fleet until it becomes not only economically viable but also legally and procedurally possible. I believe we are some years away from this yet. Gavin Borthwick MILT, Greencarrier Freight Services (UK)

2/ What effect do you think driverless trucks will have on the industry?

Air Cargo Europe 2019

Long-term we believe they are the future. A human element will always be necessary in some capacity, but driverless technology can go a long way in eliminating many of the costly human factors such as limited work hours, holidays, accidents from fatigue or human error, etc. Audrey Weedon. Wallenborn Transports

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Currently we are ageing (especially in Europe) and it is harder to find drivers. This would solve the problem of scarcity of labour as well. Regulations, infrastructure and insurance liability will have to be sorted out and be ready before driverless trucks can be rolled out massively. At Jan de Rijk we have already experimented some years ago with auto docking, meaning a driverless truck puts/pulls the trailer to/from the docks. Sebastiaan Scholte, CEO, Jan de Rijk Logistics I believe that as a whole, the transport industry is reducing the amount of human input required to operate. Driverless trucks is just one part of this process. As we see both warehouses/supply chains and logistics automated, it can only increase accuracy and transparency for both customer and carrier. Gavin Borthwick MILT, Greencarrier Freight Services (UK)

3/ What do you think can happen to all the drivers no longer needed in the future? We don’t believe this will be a big issue. Currently there is a significant driver shortage across Europe and the US, and no real plan to change this. A significant percentage of the driver workforce is also 50+, ie. part of an ageing population that will look to retire in a decade. We also believe that whilst driverless trucks will be a big part of the future, there will always be a need for drivers too. Audrey Weedon. Wallenborn Transports We already have problems finding drivers now. Having said that, I do not think we go in one bang to full driverless trucking. Sebastiaan Scholte, CEO, Jan de Rijk Logistics I believe their experience and knowledge will still be required and valued in the transport industry for planning and operational purposes. Gavin Borthwick MILT, Greencarrier Freight Services (UK)

4/ What will go first: truck drivers or diesel engines? Diesel engines. Audrey Weedon. Wallenborn Transports My guestimate would be that diesel engines will go first. Sebastiaan Scholte, CEO, Jan de Rijk Logistics Diesel engines. I believe we are far closer to the elimination of pollutants from vehicles than we are to trusting AI with a car, let alone a HGV. Road networks in general around the world have some way to go and are yet to be developed and maintained properly before automated and driverless trucking will be seen as a regular occurrence on our roads. Gavin Borthwick MILT, Greencarrier Freight Services (UK)

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Disrupters – a real thing? Stephen Dawkins, Chief Executive Officer, Air Logistics Group

Disrupters: The process of developing new products or services to replace existing technologies and gain a competitive advantage. Source: The Business Dictionary. warding community, and to provide accurate information and a high level of service quality to the forwarders based on the different services of the airlines that we represent. We have some very exciting developments in the coming 12 months; the speed at which we must turn a revenue quotation into a booking will ultimately drive the price. If you have the digital tools to quickly provide the full information to your forwarding clients, you will bring substantial revenues to your airline clients.

IS CONSTANT IS CHANGE Heraclitus

C. 535 BC – 475 BC

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06 June 2019

THE ONLY THING THAT

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hange is nothing new to the air cargo industry; however ‘Disrupters’ seems to be a popular term in the news today. The term has been used to highlight companies that are adapting to the ever changing industry in which we operate. Air Logistics Group has for the last 25 years constantly needed to adapt to technological advances, customer requirements and industry regulations, therefore we in the cargo industry are already ‘disrupters’. The industry has changed significantly since Air Logistics began in 1994. Looking only at communications, in 1994 telephone calls, telex and fax had already replaced the need for ‘snail mail’. This was soon followed by the introduction of emails that moved so many of our day to day communications online. And nowadays even emails are considered a slow process! Adapting to change is essential in today’s climate and digitalisation is key. Forwarders, because of the demand from their shippers, want information as quickly as possible, at a specific service level. In the same way that the high-street retail industry is changing and being overwhelmed by the consumer’s appetite for online shopping, so too the ‘high-street’ airline cargo industry is being overwhelmed by the demand from forwarders to speed up the quotation to booking process. We must strive to give the forwarders a variety of solutions and choice of service so that they can offer the same to their clients. Our role today, enabled by our global network, is to be a ‘portal’ for our airline partners available to all players in the cargo for-


ACW DAILY NEWS

Imperial Logistics’ digital warehouse platform adds new features

Air Cargo Europe 2019

Imperial Logistics is an integrated outsourced logistics service provider with a diversified presence across Africa and Europe It has over 30 000 staff at 340 locations in 38 countries

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hareHouse – the innovative digital warehouse platform launched by Imperial Logistics at the beginning of 2018 – has added two new functions to its portal, to make the process of finding or letting storage space even easier for users, says the company. Visitors to the ShareHouse site can now request offers direct from suitable warehouse providers, and message them with any additional questions. Warehouse providers can then respond to these questions and create a tailored offer through the platform.

“Our users told us that communication before committing to a storage space is really important for both parties, as warehousing is a complex matter,” says Jörg Klöpper, ShareHouse’s managing director. “The activity on our platform has increased dramatically since we launched this feature, proving its value to our users.” The Berlin-based startup has also launched an “Experts Service”: if a user cannot find a suitable warehouse on the platform database, he can advise his requirements to the expert team at ShareHouse via chat, e-mail or phone. Explains Jan Hepke, head of marketing and sales at ShareHouse: “We have a network of more than 4,000 logistics companies all over Germany that are additional to those already on the platform. From this pool, our experts can locate the right warehouse for even the most complex request.” ShareHouse can be used to provide or find temporary- or long-term storage - whether rack- or floor space in multi-user premises, or entire buildings. The ShareHouse searchable database currently lists more than 1.000.000 sq m of space in over 200 locations throughout Germany, with plans to expand internationally in the near future. Listing available space on ShareHouse is free of charge: owners only pay a commission when a letting contract is signed. Continues Klöpper: “ShareHouse is solving the biggest problems in warehousing: companies don't know how to find and book storage space quickly and easily, and warehouse space providers don't know who their target users are, or how much it will cost to secure a deal.” He concludes: “These new functions are our latest moves to streamline and speed up the business of matching warehouse supply and demand. Although ShareHouse is essentially a digital solution, we also acknowledge when human intervention can assist our process.”

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After managing the masterplan, environmental approvals, design and construction of Denver International Airport, she was promoted to director of aviation

Large hubs

SOME ASPECTS OF EUROPEAN HUBS PROVE THE BENEFITS OF ONGOING INVESTMENTS IN FACILITIES, TRAINING AND BUSINESS CONTINUITY PLANNING. aircargoweek.com

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What can Europe can teach the US in terms of airport practice? Evans Evans says: “As I think back over the years the major takeaway that US airport managers have, after they visit one of the main European hubs, is their ability to identify an improvement and immediately and steadily move toward adoption. "That is largely because of the different governance – but still – some aspects of the European large hubs prove the benefits of ongoing investments in facilities, training and business continuity planning. " In addition, Europe has been leading in the area of carbon emissions reduction. Though US airports have adopted many innovations in this area - DFW and DEN have very strong programs already - we are always looking for new technologies and procedures. “By the way, Denver International (DIA) – a long-time sister airport of Munich – as well as Munich Airport itself have been recognized by Skytrax in this year’s awards. The successful cooperation with DIA has been ongoing since 1991 and thus, Denver is the first of seven sister airports of Munich.” Dr Ralf Gaffal, managing director of Munich Airport International says: “We are very happy to welcome Ginger on board. Her decades of experience in leadership positions, her extensive knowledge and her excellent network in the aviation industry

make her the perfect fit for this important position. Together, we will drive our presence in the North American market and offer airports improvements in operations, management and customer service.” After managing the masterplan, environmental approvals, design and construction of Denver International Airport, she was promoted to director of aviation. Evans worked at CH2M HILL as chief aviation engineer before she became principal for transportation at Carter & Burgess. In this position, she established offices in New York and Washington, DC with clients such as the Metropolitan Transportation Authority, American Airlines and United Airlines.

Air Cargo Europe 2019

co-ordination, communication and professionalism required on a daily basis is at the highest level of team performance.” Munich Airport is a full service airport operator, delivering all airport related services in-house – ranging from ground handling, passenger and cargo handling, terminal management, aircraft de-icing and airport security services all the way to food & beverage, duty free, retail, medical and training services. Therefore, Munich can directly incorporate best practices from their worldwide consulting, management and training experience into their own operations and constantly improve their processes. So yes, sometimes directly and sometimes indirectly. In addition, Munich Airport International employs seasoned professionals from London, Spain, France, Doha and other major international hubs.


ACW DAILY NEWS

Airway Billy Jo's airfreight in numbers

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four-year old elephants sent from Myanmar to Russia

percent of Etihad Cargo booked on-line during last wek of March

high priority emergency products moved by drone to help programmes in China by Zipline

years since the launch of the Airport Carbon Accreditation programme

million pounds credit facility granted to AIPUT airport infrastructure projects

airports are now actively addressing their impact on climate change

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Old News

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Cry freedom!

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Delta Airlines passenger aircraft bound for Atlanta had to return to Cleveland Hopkins International airport shortly after an early morning take-off when it was discovered that a baggage handler had become locked in the cargo bin. "He was working in the cargo hold hold placing cargo on board and he was locked in the bin as they secured the aircraft for departure," said Delta Airlines spokesman Bill Berry. "He beat on the floorboards and that is how the flight attendants became aware that he was in the cargo bin. They say he had no problem making himself known!" The cargo bin is pressurised and heated and another airline spokesman, Todd Clay, said: "He appeared to be shaken up but he was not injured in any way." The flight left for Atlanta an hour after its return to Cleveland.

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DAILY NEWS

Published in Munich 4, 5 and 6 June 2019 James Graham

EDITOR: DEPUTY EDITOR:

James Muir

DIRECTOR OF OPERATIONS:

Kim Smith

COMMERCIAL DIRECTOR:

Jason Vencatasen

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Alex Brown

DATA AND ACCOUNTS:

Sarah Archer

DIRECTORS:

Norman Bamford • William Carr • Dawn Jolley

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The views and opinions expressed in this publication are not necessarily those of the publishers. Whilst every care is taken, the publishers cannot be held legally responsible for any errors in articles or advertisements. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by electronic, mechanical, photographic or other means without the prior consent of the publishers. USA: The publishers shall not be liable for losses, claims, damages or expenses arising out of or attributed to the contents of ACW Daily News, insofar as they are based on information, presentations, reports or data that have been publicly disseminated, furnished or otherwise communicated to ACW Daily News.

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Profile for Azura International

ACW Daily News 6th June 19  

ACW Daily News 6th June 19