ACW 07 November 16

The weekly newspaper for air cargo professionals Volume: 19

Issue: 44

7 November 2016

Revenue falls for both Lufthansa Cargo and IAG Cargo

L

ufthansa Cargo and IAG Cargo have both announced revenue falls as they continue to be impacted by volatile market conditions and falling yields.

Business continues to be tough for the legacy European air cargo carriers who operate different models with IAG having exiting freighter operations and Lufthansa still running freighter and bellyhold operations.

Revenues fell 15.9 per cent to €1.5 billion ($1.6 billion) in the first nine months of 2016 at Lufthansa, while losses rose, but it is “hopeful” things will improve by the end of the year.

In Q3, the Lufthansa Logistics segment, which includes Lufthansa Cargo, posted an earnings before interest and tax (EBIT) loss of €69 million compared to a profit of €35 million last year. In Q3, EBIT was down 60 per cent to a loss of €24 million.

The carrier notes there is some good news from the cargo division, as September was the best month of 2016, meaning business could pick up in the end of the year.

From January to Sep-

tember, revenue tonne kilometres were down 1.3 per cent to 6.1 billion, and available tonne kilometres dipping 0.6 per cent to 9.4 billion.

The load factor was down 0.4 percentage points to 65.6 per cent.

Lufthansa chief executive officer and chairman of the executive board, Carsten Spohr (pictured below left) says: “Despite the volatility of our business and the difficult market environment, we are looking ahead with confidence to 2017. We are moving forward; we are making things happen; we are delivering.”

Meanwhile, IAG Cargo posted commercial revenue of €240 million over the period from 1 July to 30 September in Q3 of 2016 – a fall of seven per cent on the same quarter last year.

The airfreight arm of British Airways, Iberia, Vueling and Aer Lingus, says adjusting the prior year’s figures to reflect a directly comparable operation, commercial revenue

ABC starts Heathrow freighter

AirBridgeCargo Airlines (ABC) has started twice-weekly Boeing 747 Freighter services to connect Heathrow Airport via its Moscow hub from 3 November.

ABC has become the hub’s second all-cargo carrier and is using slots that are not in high demand with passenger carriers. Heathrow was given backing last month to build a third runway by the UK Government and is aiming to grow its cargo tonnage.

The new flights every Thursday and Saturday have more than 100 tonnes of cargo capac-

ity. Last year, 29 per cent of the UK’s non-EU exports by value went through Heathrow.

Volga-Dnepr Group senior vice president of sales and marketing, Robert van de Weg says: “The introduction of London Heathrow services is an important step for us and extends the number of delivery solutions we can offer our worldwide customers.

“Europe, together with China, has been our prime market since the very first day of our operations 12 years ago and it continues to support our strong growth performance. In the first nine months of 2016, we have achieved a 22 per cent increase in tonnage ex-Europe.”

Having received UK Government backing for expansion, Heathrow is set to add 40 destinations and double cargo capacity. The hub is investing £180 million over 15 years to improve its cargo infrastructure and processes.

decreased 6.5 per cent versus last year at constant exchange.

On a positive note, IAG Cargo says despite challenging market conditions, on a like for like basis volumes were up 4.5 per cent, while yields decreased 10.5 per cent at constant exchange.

For the first nine months until the end of September, cargo revenues fell 6.9 per cent to €743 million, a fall of 9.4 per cent, excluding Aer Lingus and currency effects. Total freight carried in the period fell by 15 per cent to 543,00 tonnes, while volumes measured in cargo tonne kilometres were up by three per cent.

IAG Cargo chief executive officer, Drew Crawley (pictured below) is upbeat about the future and says the focus is premium products, and partnerships, adding: “It is this that has enabled us to offset some of the yield pressures and grow our revenue share in these challenging market conditions.

“The IAG Cargo platform, alongside partnerships and premium focus, place us in a strong position to compete in the current market.”

6.1% uplift in Sept Air cargo shot up 6.1 per cent in September helped by unique factors such as the collapse of Hanjin marine shipping, the International Air Transport Association (IATA) says.

Volumes grew at the fastest pace since the US West Coast seaports strike in February 2015, and that September was helped by new export orders, as well as unique factors including the rush to replace Samsung Galaxy Note 7s and the collapse of Hanjin marine shipping at the end of August.

Load factors remain under pressure, at 43.7 per cent in September, but it was a year-onyear improvement of 0.6 percentage points.

IATA director general and chief executive officer, Alexandre de Juniac says though air cargo grew in September, world trade is at a standstill, but there is encouraging news out there such as the EU-Canada FTA.

expansion on the cards for etihad

6

networking to growth

7 more contracts for jettainer envirotainer gives access to right solutions

8

9

FedEx MD-10 landing gear fails on landing A FedEx freighter’s left side landing gear collapsed shortly after touching down at Fort Lauderdale International Airport in Florida on 28 October causing the left wing to catch fire.

Two pilots on the aircraft escaped using a rope ladder on the side of the FedEx 910 MD-10, which had just flown in from Memphis International Airport - the express carrier’s main hub.

A runway at Fort Lauderdale was closed for three days after the incident, which also caused 29 flights to be diverted to other gateways on 28 October.

There was reportedly carrying onboard 46,000 pounds of mail from the U.S. Postal Service.

The National Transportation Safety Board (NTSB) tweeted from its Twitter account: “The left engine and left wing scraped the runway following the left main gear collapse.

“The two crewmembers on board both evacuated through cockpit window and did not report any injuries.”

The NTSB says a preliminary report will be out within 30 days. The Federal Aviation Administration is also investigating the incident.

aircargoweek.com

Tabloid page trim.indd 1

01/11/2016 12:44

NEWS WEEK Mathews appointed 1st CCO at Chapman Freeborn

C

hapman Freeborn Airchartering has appointed Philip Mathews (above) as chief commercial officer (CCO) – a newly created role at the air charter firm.

Mathews took up the position on 1 November and joins Chapman Freeborn’s three existing executive directors on the board – chief executive, Russi Batliwala; chief operating officer, Shahe Ouzounian; and chief financial officer, Peter Joarder.

Mathews’ experience includes 14 years with Air Partner who he joined in 2002. He was appointed president of its US business Air Partner Inc. in 2003 and also served as a director on the operating board for the company in both the UK and the US. He will oversee all commercial activities for the company’s specialist cargo and passenger charter divisions, as well as driving the growth strategies for subsidiary companies including Chapman Freeborn OBC, Intradco Global, Logik Logistics International, and Wings 24.

Chapman Freeborn chief executive officer, Russi Batliwala says: “We are thrilled to announce the appointment of Phil Mathews as chief commercial officer.

“Phil has an extraordinary amount of experience in the charter industry, with an impressive record of delivering results in diverse markets.

“He will play a central role in managing the ongoing commercial performance of Chapman Freeborn and its subsidiary companies.”

Mathews explains after he was appointed into the key position of CCO: “I am delighted to be joining Chapman Freeborn – a company which has been at the forefront of the charter industry for over four decades.”

Freighter call in Oslo for Cargolux NY flight

Swissport swoops on Skylink Handling

CARGOLUX International Airlines started a weekly freighter call on 1 November to Oslo Airport on its New York service, which finishes at Luxembourg Airport.

The first flight carried a payload of salmon and Cargolux also expects to carry shipments for the oil and gas industry on the US – Norway – Luxembourg service.

It will run a Boeing 747-8 Freighter, and will cater to the airfreight needs of Norwegian shippers who will benefit from Cargolux’s CV Fresh product offering.

Cargolux executive vice president, Niek van der Weide says: “The response from our customers has been phenomenal and we appreciate the way they welcome us in Norway.”

Avinor manager of cargo development, Martin Langaas says: “The seafood industry requires more direct capacity to the important markets in Asia and the US. We are .....working to facilitate more direct capacity from Oslo and through Cargolux, the seafood industry will have access to another desirable network to the most important overseas markets.”

SWISSPORT Cargo Services The Netherlands will increase its presence at Amsterdam Airport Schiphol by acquiring cargo handling company, Skylink Handling Services.

The acquisition will increase Swissport’s warehouse capabilities by 10,000 square metres and it will drive potential new business volume for current customers and the aim is to attract new ones. Skylink was acquired from logistics company. Rhenus - but it is unknown how much it paid for the acquisition.

Swissport Netherlands chief executive officer, Menno Biersma says: “Skylink is a successfully established provider of air cargo handling and consistently delivers high quality services.”

Swissport is now active at more than 280 stations in 48 countries across five continents.

It handles about 4.1 million tonnes of cargo annually for its 835 client companies in the aviation sector.

aircargoweek.com

ACW 7 NOVEMBER 2016

3

NEWSWEEK

Rising demand leads to UPS ordering 14 Boeing 747F

U

PS has ordered 14 Boeing 747-8 Freighters with the agreement also including an option to purchase an additional 14 of the cargo aircraft providing a boost to Boeing’s 747 freighter programme.

UPS Airlines president, Brendan Canavan says: “These aircraft are a strategic investment for increased capacity for UPS customers around the globe. The 747-8 will allow UPS to upsize our network in both new and existing markets.”

Boeing says the 747-8F is the world’s most efficient freighter, providing cargo operators the lowest operating costs and best economics of any large freighter on the market.

It says due to the iconic nose door, the aircraft has 16 per cent more revenue cargo volume than the 747-400F while also reducing the noise footprint around an airport by 30 per cent compared to its predecessor.

Boeing Commercial Airplanes vice president for sales North America and leasing, Brad McMullen says: “UPS could not have selected a better aircraft to meet its growing business needs.

“We’ve continued to make the 747-8 Freighter even better, and we look forward to seeing UPS introduce it to its fleet.”

UPS has also announced in the third quarter (Q3) of 2016 its earnings went up year-on-year (YOY) by 3.6 per cent. International operating profit rose YOY by 14 per cent to $576 million, and total revenue was $14.9 billion, up YOY by 4.9 per cent.

US domestic revenue increased YOY by 4.8 per cent over Q3 of 2015, to $9.3 billion. Aver-

age daily package volume increased YOY by 5.7 per cent, with deferred air products up YOY by 10 per cent, next day air up YOY 5.9 per cent and ground products up YOY by 5.2 per cent.

UPS says strong business-to-consumer (B2C) growth trends continued in Q3, while business-to-business (B2B) growth was positive primarily due to online retail returns.

Supply chain and freight revenue increased YOY by 8.1 per cent, to $2.6 billion and UPS says revenue growth was due mainly to the Coyote Logistics acquisition midway through Q3 last year.

The express freight firm also says weak market conditions in airfreight forwarding weighed on top-line growth.

Chairman and chief executive, David Abney, explains: “The investments we are making in technology and capacity will ensure UPS continues to deliver well into the future.”

Chongqing added to MAB freighter network

MAB Kargo has expanded its Chinese network with two freighter flights to Chongqing from 30 October - as says Chongqing Jiangbei International Airport is becoming an important freighter hub - notably for exports of high-value electronic goods.

MAB Kargo will be able to facilitate the transportation of electronic goods of major companies such as Apple, Asus and Hewlett Packard to South and East Asia via its Kuala Lumpur hub.

MAB Kargo chief executive officer, Ahmad Luqman Ahmad Azmi says: “With the 330 operations it puts us within a seven to eight hour radius from Kuala Lumpur radius, which makes China an important market for us.”

MAB Kargo is restructuring its freighter fleet exiting use of the Boeing 747 Freighter and is concentrating solely on operating the Airbus A330 Freighter. Alongside Chongqing, its freighter network also includes Hong Kong International Airport, Shanghai Pudong International Airport and Zhengzhou XinZheng International Airport.

DSV continues to benefit from UTi acquisition DANISH freight forwarder DSV continues to see growth across the business since the acquisition of UTi, it reports in its interim report for the third quarter (Q3).

The company completed the takeover of UTi at the start of 2016 and says airfreight volumes, revenues and gross profits were all up in Q3. Air volumes in Q3 rose year-on-year (YOY) by 84.5 per cent to 147,744 tonnes while overall air revenues for Q3 increased YOY to four billion Danish Kroner ($147 million) and air gross profits were up YOY by 74 per cent.

For the air and sea divisions overall for DSV – net revenue was up YOY by 53.9 per cent to 8.3 billion Danish Kroner and gross profits were up 55.3 per cent to 2.1 billion Danish Kroner. However, DSV says revenues were impacted by low freight rates and exchange rates.

The US, due to the UTi acquisition, Europe, Asia Pacific and Africa all performed strongly.

DSV chief executive officer, Jens Bjørn Andersen says: “We are keeping momentum in the UTi integration process, and all three divisions have delivered solid growth. With aggregate earnings growth of 18 per cent for the quarter, we are once again very pleased with DSV’s performance.”

4

ACW 7 november 2016

aircargoweek.com

Tabloid page trim.indd 1

31/10/2016 15:18

MIDDLE EAST

Products and innovation Expansion for Etihad

E

mirates SkyCargo launched its specialist pharma facility at Dubai International Airport in September and is looking to grow its premium cargo and for further innovation.

The carrier’s vice president for commercial in the Americas, Middle East and GCC countries, Duncan Watson feels the region’s air cargo operators are growing their reputation.

He notes: “The increased reach and service offering of the Gulf carriers has just further enhanced the region’s reputation as the leading edge of where to seek out the very best in service offering and network capability.”

In the Middle East, Watson believes cargo carriers’ service standards continue to improve, driven by healthy competition and feels Emirates is at the forefront of this process.

He explains: “Emirates SkyCargo is a very customer-focused organisation. We put our customers and their requirements at the centre of all that we do. This means that we work closely with them, understand their business and be agile and flexible in coming up with innovative solutions. Ultimately, our aim is to be able to add value to our customers’ business, which allows them to further add value to their stakeholders.

“Another factor that sets us apart from our competition is our constant focus on product and service innovation. We have recently launched a number of innovative products that reinforce our cool-chain portfolio, for example. These include White Cover Advanced – a next-generation version of our innovative protection product for valuable temperature-sensitive cargo; white container – a temperature-con-

6

ACW 7 NOVEMBER 2016

trolled container with thermal insulators to counteract high external temperatures; and the Emirates SkyCargo Cool Dolly – a special piece of equipment that transports cargo from the aircraft to cool storage areas, while maintaining temperatures of as a low as -20 degrees Celsius.”

The Emirates SkyPharma facility at Dubai features the latest pharma facilities, and Watson notes that process of innovation and development is to continue: “Businesses are evolving rapidly and business processes are witnessing unprecedented changes. Working closely with our customers helps us get a pulse of the market and this helps us position ourselves to take advantage of developing trends.

“In the global air cargo market the recent trend has been a movement away from general cargo to expertise in cargo handling for specific verticals.”

Watson concludes: “We’re also seeing paradigm shifts in the global retail model, with more people moving away from traditional retail to e-commerce. This will have a considerable impact on how the air cargo industry will evolve over the next few years.”

ETIHAD Cargo continues to expand its operations and develop the quality of its product.

Senior vice president, David Kerr (pictured), explains how it is matching up to the other growing Middle East cargo carriers: “There is obviously competition in the Middle East region, but there is also a very high calibre of products and services as a result.

“We have the advantage of our geographic location – right in the centre of the globe.

Roughly a third of the world’s population lives within four hours’ flying time of the UAE, and more than two-thirds within eight hours’ flying time, so we are ideally located to serve massive production and consumption markets. This is a huge advantage for Middle Eastern carriers and something on which we all capitalise.

“In general, competition is healthy for any industry – air cargo included. It pushes us to continually strive to deliver the best products and services possible.”

Etihad Cargo is putting a strong focus on product development. “For Etihad Airways, ‘innovation’ is more than a buzz word to be bandied around on corporate brochures.

We take the concept very seriously. To that end, Etihad Cargo is collaborating with the Masdar Institute to develop a series of sustainable solutions for the industry, specifically on the handling side.”

Etihad has introduced a new product that will secure the integrity of its cool-chain, Kerr explains: “Last year we launched our Temp Check product to safeguard the

aircargoweek.com

integrity of our temperature-sensitive pharma and healthcare cargo throughout their journey with Etihad Cargo. This involved installing purpose-built facilities and upgrading our temperature-controlled storage facilities at our hub.

“We continue to work with major industry providers – Envirotainer, C-Safe and va-Qtec – and have become a QEP (Qualified Envirotainer Provider) accredited in several of our locations around the world.”

There is much more to come, Kerr feels: “We are investing in a brand new cargo terminal in Abu Dhabi as part of the Midfield Terminal project. This represents a significant investment for us and ensure Etihad Cargo is able to continue to grow its business from a state-of-the art hub operation.

“We will continue to work closely with Masdar Institute to develop new, sustainable products and will be launching a new product in the coming months.”

MIDDLE EAST

Networking to growth

Q

atar Airways Cargo chief cargo officer, Ulrich Ogiermann (pictured) says the carrier’s expanding fleet and network is the “primary driver” of its recent success.

He explains Qatar has experienced encouraging growth in sectors where its operates both freighter and passenger flights such as India, Europe and the Americas, while bellyhold cargo has been well-received across its growing network “simply because it is very cost-efficient in an industry where yields are always under pressure”.

Ogiermann adds: “The smart combination of efficient belly space plus freighters allows us to adjust our services flexibly, meeting the needs of our customers, market demand as well as the dynamics of the airfreight business.“ The Doha-based cargo carrier is expanding fast and this year launched multiple freighter services to Dallas, Budapest, Prague, Ho Chi Minh City, New York and Halifax (Canada).

Ogiermann says Qatar has also strategically deployed additional freighter frequencies and aircraft upgrades into high-demand markets such as Europe (Budapest, Prague, Brussels) and Africa (Johannesburg, Nairobi) to capture (demand during) the air cargo peak season between October to December.

He explains: “As long as we are conscious of the market trends and able to respond quickly and strategically to place capacity in the right areas, plus offer the right combination of cargo products to the right destinations, we will

outperform the market.”

And in his view, the carrier’s best prospect is continued investment and expansion of its fleet.

Qatar expects to receive its 12th Boeing 777 Freighter aircraft early next year and to expand to a total of 22 freighters by 2017, which Ogiermann says demonstrates “our unwavering commitment” to developing one of the strongest air cargo fleets in the skies.

He adds: “Plus, we have consistently gone against the trend in terms of growth in recent years; while other airlines have been reducing their cargo capability, we have grown from position 16 to number three in IATA’s international FTK rankings in just five years.”

As well as fleet and network growth, there has also been a focus on quality. “We believe that service excellence is key to sustainable growth,” Ogiermann explains. “We constantly remind ourselves to focus on customer experience, innovation and tailor our service offerings to enhance and deliver our customer value propositions.

“Another contributing factor is our commitment to offer best-in-class airfreight products and innovative technology. There are some opportunities with manufacturing, pharmaceuticals and e-commerce demand on the rise.

“Pharmaceutical products are of great importance for us; we have been working hard to get trade lanes certified by the big shippers.

“QR Pharma is now available in over 65 destinations worldwide and we have received overwhelmingly positive feedback from our customers.

“Besides QR Pharma - namely QR Fresh, QR Live, QR Express and QR Charter - capitalise on customer needs and market demand. And we are positive that more new and enhanced products will be introduced to our customers in the near future.”

More belly routes to Muscat

MUSCAT International Airport in Oman has welcomed new carriers in the shape of British Airways (BA) and SriLankan Airlines.

On 31 October BA’s direct Boeing 777 bellyhold route from London’s Heathrow Airport touched down. It will operate five times a week.

Oman Airports Management Company explains that the flight is part of its strategic goal of placing Oman’s airports among the top 20 gateways in the world by 2020 and it

brings the number of international carriers to 33.

SriLankan Airlines has also returned to Muscat after a brief break, as part of its enhanced focus on the Middle East, starting with five flights per week from Colombo on 30 October, but it is set to increase the frequency in December and again in March.

The carrier will operate to Muscat five days a week using its fleet of Airbus A320 and A321 aircraft.

aircargoweek.com

ACW 7 novemBER 2016

7

ULDs

More contracts for Jettainer EQT to acquire CHEP

J

ettainer has signed a deal with Brussels Airlines to control and maintain its fleet of unit load devices (ULD) from the spring of 2017, as it continues its consistent growth.

Jettainer will look after a fleet of about 1,000 ULDs over the next five years and it will set up a ULD controller at Brussels Airport. The deal was signed on 28 October, on the final day of The International Air Cargo Association Air Cargo Forum in Paris.

Jettainer sales director, Thorsten Riekert (pictured left, with Brussels Airlines vice president global cargo, Alban Francois) says: “We’re continuing to expand our customer portfolio with Brussels Airlines and are therefore pressing ahead with our growth course. Our excellent customer services and unique innovative solutions in ULD management are clearly making themselves felt in the market place.”

Speaking after the signing in Paris, Riekert, joined by head of marketing and PR, Martin Kraemer, explains Jettainer’s success to Air Cargo Week. Kraemer says he is amazed how consistent growth has been, and the strategy is to double in size by 2020.

“It is amazing how consistently we are growing, not in big steps, it’s not hectic. It is a really stable line up, which on the one thing is really good for us and on the other hand it is really good for the team as a healthy and steady growth can be taken up by the team,” he adds.

For 2017, Riekert tells ACW that Jettainer is looking into Asia, saying: “Asia is a different mentality and it will take some more time to acquire new customers there but we are in very

8

ACW 7 noveMBER 2016

promising discussions with quite a number of airlines.”

Jettainer has been introducing innovations such as intelligent containers it is developing with Lufthansa Industry Solutions, which it says will accelerate maintenance and control procedures while the increased transparency will make it easier to determine who was responsible for damaging ULDs. Riekert adds that the intelligent containers will have GPS, which he believes will significantly reduce the rate of missing units, while sensors know if the unit has been mistreated.

“This will get transferred to our data warehouse and this will allow the customer to talk to the ground handler who mistreated equipment.”

Kraemer says the aim is not finger pointing, but having the ability to show who it was should make them be more careful should make people be more careful as they know they are being watched.

Riekert says this was the idea of the JettCare programme too, which creates awareness of the value of ULDs, to benefit the whole industry, not just the customer and Jettainer: “If we are able to generate a change in behaviour it is not only good for us but it is good for everybody.”

CHEP Aerospace Solutions is to be sold to infrastructure fund company, EQT Infrastructure II, in a transaction due to be completed during November 2016.

CHEP was formed by Brambles in 2011 following the acquisition and integration of a number of unit load device (ULD) companies. The existing CHEP leadership team will remain in place and EQT Infrastructure says it will continue to strengthen the company’s capabilities.

CHEP Aerospace Solutions president, Dr Ludwig Bertsch says: “We are excited to join EQT Infrastructure, one of the world’s most respected infrastructure funds, which combines the very best people with the industry expertise in infrastructure management that will allow us to continue to grow and provide smarter solutions and unparalleled customer service to the aviation industry.”

EQT Partners director and investment advisor to EQT Infrastructure, Ulrich Kollensperger adds: “The Company has a proven business model, an impressive customer base and a promising pipeline of prospective airline clients. The industrial board of directors including senior leaders with avia-

aircargoweek.com

tion expertise will support CHEP Aerospace Solutions in growing its asset base and offer pooling, management, maintenance and repair to more airlines globally.”

Brambles chief executive officer, Tom Gorman says: “Over the past five years, we have built a highly successful global business that now partners many of the world’s leading airlines.”

“We are confident that the future growth of the Aerospace business will be well served under the ownership of EQT Infrastructure which has a dedicated focus on infrastructure and related services, with a proven track record of success.”

CHEP manages approximately 100,000 ULDs and serves more than 90 airlines across a network of 48 global services centres and 420 airports. It will retain its headquarters in Switzerland, along with regional operations centres in the UK, Thailand and the USA, and global service centres in Europe, Middle East and Africa, Asia Pacific and the Americas.

CHEP will be rebranded to have its own unique identity following the completion of the EQT acquisition.

ULDs

Envirotainer aiming to give access to solutions

A

s pharmaceutical companies experience significant transition, Envirotainer is working closely with customers to ensure they have access to the right solutions across the supply chain, deputy chief executive officer, Mattias Almgren (pictured) tells Air Cargo Week (ACW).

He says Envirotainer’s global network provides the consistency the market requires, which along with significant investments, means it can “adopt an innovative strategy to be ready for the challenges of servicing newly defined markets”.

Almgren adds: “In collaboration with our airline and forwarding partners, we are designing new systems and methodology to increase transparency, accountability, and quality within the entire cold chain.”

He says the aim for the immediate future is for further digitalisation by building an even stronger collaborative relationship with business partners.

“We are creating an open dialogue with our pharmaceutical customers to enhance services that will ultimately bring value in

Communication for ULDs

the increasingly competitive environment.”

Envirotainer’s core service is leasing specialised containers for transporting temperature sensitive products, with the RAP e2 proving particularly popular.

Almgren explains: “The RAP e2 showcases the next generation

of the well proven e-technology platform for heating and cooling invented by Envirotainer. This advanced technology paired with the composite material shell and the forkliftable base, makes the RAP e2 the leading innovation in container design and performance.”

Envirotainer has been increasing its global presence, including a service station in Delhi and a RAP e2 station in Los Angeles.

Almgren adds: “In addition, our commitment to increase production and container fleet size is designed to satisfy market demand and customer requirements.”

As well as this, Envirotainer has renewed its partnership with CHEP Aerospace Solutions, which Almgren says means it can meet customer’s needs in terms of reliability and availability.

He tells ACW: “CHEP’s repair excellence, IT capabilities and global network play an important part in enabling us to strengthen our leading position in the market. Our companies also share the same business values and invest in developing and offering innovative solutions, such as container tracking devices, to our respective customers.”

ULD Care hopes it can improve unit load device (ULD) safety by communicating, communicating and communicating some more, president Urs Wiesendanger and vice president Bob Rogers tell Air Cargo Week (ACW).

The organisation has the vision of making sure ULDs are handled, stored, transported and used correctly. It is communicating through a number of means such as publications, industry meetings and its website. ULD Care will be publishing an industry guide to ULDs, “ULD Explained”, launch a ULD Code of Conduct, and develop on-line “job aids” for ULD operations.

Rogers and Wiesendanger say: “The Mission of ULD Care is to use the collective resources, skills and grass roots experience of the ULD Care membership to provide direction and deliver appropriate change in ULD operations throughout the global air cargo operating environment.”

ULD Care launched its SOS ULD Campaign in 2015, as it felt that it needed a better communications tool, as a website and newsletter was not enough.

Wiesendanger and Rogers say: “Our PR adviser proposed a video and we jumped at the idea. Given that we have very limited resources (most of our members have demanding ‘day jobs’) being able to leverage our message has been a huge step forward. It has also ‘professionalised’ ULD Care.”

ULD Care’s aim is to drive better understanding and treatment of ULDs, and they say they are making progress though comment: “We still have a long way to go but there is an ever greater awareness of consequences, both safety and economic of substandard ULD handling and operations.”

ULDs are more than a box, they are a piece of aircraft equipment. Wiesendanger and Rogers say: “When you build up a ULD in a cargo terminal or baggage hall you are in fact ‘advance loading the aircraft’ so the condition of the equipment and manner in which the build-up is carried out is not only regulated but also a component of flight safety.”

They say in the aftermath of Fine Air Flight 101 in 1997 and National Air Cargo Flight 202 in 2012, both caused by improperly loaded cargo, “the FAA in particular is more than aware that air cargo operations are not meeting regulatory expectations and that it needs a great deal of attention if more such accidents, caused by sub-standard cargo loading, are to be prevented”.

About $300 million a year is spent on repairing ULDs, with at least 90 per cent of this caused by unnecessary damage, with unknown amounts of damage to aircraft holds and cargo loading systems. ULD Care chiefs ask: “The airline industry needs to be able to operate fleets of lightweight ULD in a damage free environment. Is this too much to ask?”

aircargoweek.com

ACW 7 november 2016

9

CARGO TERMINALS

New cargo centre opened in Accra - West Africa

T

he Ghana Airport Cargo Centre (GACC) has been opened at Kotoka International Airport (KIA) – another step to developing Accra as a major freight hub in West Africa.

Spread over 10,000 square metres, GACC is part of a joint venture between Air Ghana Limited and the Ghana Airports Company Limited (GACL) and is set to address the infrastructural, capacity and operational challenges of air cargo handling at the KIA. The state-of-the-art centre at KIA will mean it will be able to increase its cargo handling capacity from 50,000 tonnes annually to more than 70,000 tonnes.

The facility has a transit area where large aircraft can unload freight for division into smaller batches and onward shipment to smaller freight centres in West and Central Africa.

Among the other facilities are two large cold stores, a bullion store, X-ray scanners and 24-hour CCTV cameras.

The new facility is especially good news for Ghanaian exporters, especially for those exporting perishables such as mangoes and pineapples. The increase in airfreight capacity and faster cargo services will give a boost to their businesses.

Swissport Ghana, a joint venture company between Swissport International, and GACC will manage the centre (pictured right, next to the runway at KIA).

Managing director of GACC, Christian Zweifel, said the new facility made the GACC not just the best cargo facility in West Africa “but definitely the best in Africa and arguably one of the best in the world”.

He also urged local farmers to expand their

export capacity, as he says the centre is ready to provide reliable air cargo transport for their perishable cargo to various European markets wanting fresh goods.

Meanwhile, over in India the Airports Authority of India (AAI) has reportedly only received one financial and technical bid for a global air cargo terminal in Visakhapatnam, according to local media reports.

Vizag Airport in Chennai is finding it hard to get bidders for an operator to handle the international air cargo operations at the Indian gateway.

Media reports in India claim even after inviting bids for the second time this year, only one company has shown interest and it has posed a big question mark over international cargo handling.

If the airport gets clearance from the AAI for the only bid, it is set to be operational by December this year.

It is part of AAI’s efforts to create infrastructure for international freight.

Local media reports claim that companies are reluctant to bid for the tender to handle international air cargo at the airport as it is not seen as being potentially profitable to run.

At the beginning of 2016, one firm, which had secured the tender, failed to start operations and withdrew, saying international cargo operations were not feasible at Vizag Airport.

Once the cargo facility opens at Vizaq Airport, cargo can be handled on flights to major markets including those in Asia such as Singapore and Kuala Lumpur and Dubai in the United Arab Emirates.

SATS to invest in terminal at KFIA

SINGAPORE’s ground handler at Changi Airport - SATS - is investing about 108 million Singapore dollars ($77 million) to build new air cargo facilities at King Fahd International Airport (KFIA) in Dammam - Saudi Arabia.

The move is part of an ambitious plan to expand SATS reach in the Asia Pacific and Middle East and the growing relations between Singapore and Saudi Arabia.

The KFIA cargo project will be SATS’ biggest airfreight investment project and it has been granted to its subsidiary SATS Saudi Arabia, the cargo handling concession is valid for 22.5 years. SATS will build a new 20,000 square metres cargo terminal in the gateway’s cargo village. Construction of the new facility is expected to be completed by the first quarter of 2019.

The facility will be able to handle 150,000 tonnes of cargo annually. It will also incorporate a dedicated cold chain facility to

10

ACW 7 november 2016

aircargoweek.com

meet the growing needs of the pharmaceutical and food industries to ship high-value, temperature-sensitive goods.

More than 30 carriers to 65 cities operate from KFIA and Singaporean companies are prominent in the transport and logistics industry in Saudi Arabia.

Singapore’s trade with the Middle East was $32.3 billion in 2015 with most of the trade with Gulf Cooperation Council (GCC) countries ($29.3 billion) and the top three trading partners were United Arab Emirates ($13.1 billion), Saudi Arabia ($8.8 billion) and Qatar ($3.8 billion). The Singapore-GCC Free Trade Agreement also entered into force in 2013.

The terminal contract at KFIA was awarded by the General Authority of Civil Aviation of Saudi Arabia and is the first step to introduce a second player into the cargo handling market at KFIA and in Saudi Arabia.

PHARMA NEWS ROUND-UP

Brexit a cause for concern in the UK pharma industry

T

he UK’s pharmaceutical industry is ramping up the pressure on the UK Government for assurance about their long-term future after Brexit.

Pharma is a major export market in the UK and drug company powerhouses are reportedly demanding £1 billion ($1.2 billion) to fill the Brexit funding gap for scientific research and development.

Since Brexit, the pharma sector has been in dialogue with ministers, as it has concerns about trade barriers once the UK exits the European Union (EU) - likely to be in two to three years.

They are also reported to be worried about regulation of the industry, how Brexit will affect recruiting foreign staff and the loss of EU science and research funding.

The pharma and biotech industry will explain its priorities on 23 November when ministers attend a life sciences steering group, which will be co-chaired by GlaxoSmithKline (GSK) chief executive, Andrew Witty and AstraZeneca chief executive officer, Pascal Soriot.

Brexit has created uncertainty in the business world, and the UK Government is no doubt keen to protect the success story that

the pharma industry has become in the UK. Pharma firms have previously announced plans to invest in the UK and AstraZeneca is building a $500 million headquarters and research centre in Cambridge.

Fellow drug giant GSK said in July it is ploughing $360 million into an investment in British manufacturing, only a month after the UK voted to leave the EU and go it alone.

Another big concern for drug companies after Brexit is that the UK will leave the regulatory body the European Medicines Agency (EMA), which allows firms to sell products across Europe and in other markets and endorses product quality.

Drugmakers warn loss of access to the EMA would have a major impact on healthcare and the availability of drugs in the UK, and with increasing strain on the National Health Service (NHS), some fear the UK could lose its pull as a place for investment.

AstraZeneca’s head of innovative medicines and early development unit, Mene Pangalos reportedly told a meeting in parliament last week that companies will not come to the UK to invest in R&D, experimental medicine or clinical trials if the healthcare system is not adopting the most important innovations.

Miami gets free trade boost

PHARMACEUTICAL cargo through Miami International Airport (MIA) are set to grow further after the US gateway was given government approval to be designated as a Foreign Trade Zone (FTZ) magnet site.

This allows manufacturers to lease available property space and have tariffs deferred, reduced or eliminated.

The Miami-Dade Board of County Commissioners approved the application to the US Department of Commerce, expanding Miami-Dade County’s FTZ281 to include the airport, allowing firms to receive and process materials and merchandise as soon as it enters the country at MIA, all with reduced or eliminated Customs duties.

Site users will include pharmaceutical companies and Miami-Dade Aviation director, Emilio Gonzalez says: “Combined with our recent designation by the International Air Transport Association as the first pharmaceutical freight hub in the US, a magnet site designation has vast potential for opening new doors at MIA within the trade and logistics industries, in addition to being a major job creator.”

Parma plans to boost pharma ITALIAN pharmaceutical firms are set to benefit from Etihad Cargo’s investment in Parma Airport and a networking event has discussed opportunities it presents.

Etihad Global Cargo Management Company (Etihad GCMC) and the Abu Dhabi Chamber of Commerce hosted the event for 20 industrial powerhouses from Parma, who collectively represent 3.7 per cent of Italian GDP, along with 75 representatives from Emirati businesses.

Etihad GCMC and Parma Airport recently signed an agreement to develop cargo volumes at the airport. As part of the agreement daily road feeder services will be operated to Italy’s air cargo hub, Milan’s Malpensa Airport - 180 km away.

The project, being developed in conjunction with Etihad GCMC partner airline Alitalia, provides regional businesses with rapid delivery of their products to a global market.

Parma is the centre of one of the largest exporting regions in Italy for high value commodities – including pharma products.

The Italian pharma market is the seventh largest in the world and sales reached more than $27 billion in 2015. It only ranks behind the likes of the US, Japan, China, Germany, France and Brazil.

Italy is also home to many of the world’s leading pharma companies, and ranks highly for exports and is reported to have 174 manufacturing production units in operation.

aircargoweek.com

ACW 7 november 2016

11

TRADEFINDER Airlines

Airports

Cargo Handling

Turkey

Lithuania

United Kingdom

Freight Forwarders Caribbean

Spain

Freight Forwarders India

Hong Kong

United Arab Emirates

Industry Events

Freight Forwarders USA

12

ACW 7 NOVEMBER 2016

aircargoweek.com

Tabloid page bled.indd 1

14/09/2016 15:39