ACW 10 September 18 by Azura International

The weekly newspaper for air cargo professionals No. 998

10 September 2018

When DG is as simple as ABC

Air China sells off cargo arm in $350m deal

ir China Cargo is to be sold off by its parent Air China in a RMB2.4 billion ($350 million) deal, leaving the carrier as a passenger-only operation from this year. The main push for the disposal of the carrier’s 51 per cent holding in its cargo arm is financial - cargo and mail revenue accounted for approximately eight to nine per cent of the total air traffic revenue in the past three financial years. The new owner is China National Aviation Capital Holding, a wholly-owned subsidiary of the stateowned CNAHC (China National Aviation Holding Corporation). It is primarily engaged in managing its state-owned assets and its equity interest in investees, charter of aircraft and maintenance of aviation equipment. The cargo and mail revenue decreased by 1.7 per cent from RMB8,447 million in FY2015 to RMB8,305 in FY2016. The cargo and mail revenue of FY2017 was approximately RMB10,255 million, representing an increase of approximately 23.5 per cent from FY2016 due to the improvement of the air cargo businesses in overseas market. Air China Cargo provides airfreight services in the PRC, with its headquarters in Beijing. As at 31 December 2017, Air China Cargo operated 15 aircrafts with an average age of 10.54 years. As advised by the management of the Company, through the network of the group, Air China Cargo has connections to approximately 18 airfreight routes as at 31 December 2017. Air China Cargo’s other shareholders are Cathay Pacific China Cargo Holdings ,a subsidiary of Cathay Pacific, and Fine Star Enterprises Corporation, which hold 25 per cent and 24 per cent respectively. Each has first refusal rights if CNAHC disposes of any shares in the future. The Air China board of directors point to growing

consumer wealth in China a reason to divest itself of cargo operations. It says: “With the increase in the income of residents, the upgrade of consumption structure, and the increasingly close economic tie among regions, the air passenger transport business maintains stable growth while possessing huge market potential.” According to the board, in recent years capacity in air cargo has been oversupplied. “Market competition was fierce, the cargo transportation price was low, and the market was highly open. In the domestic market, the traditional air cargo businesses do not fully match the rapidly changing domestic logistics needs, and the competition in freight market has increased. “In the international market, despite the increase in international cargo transportation volume in 2017, the entire industry is faced with increasingly

complex international trade situation and exchange rate risks, leading to increased uncertainty in the prospect of the international cargo transportation market,” it said. “Although the profitability of Air China Cargo improved in 2017, improvement was mainly due to the recovery of international transportation volume, cyclical rise of freight rates, and substantial exchange rate gain from the appreciation of RMB against US dollar. “Given the international trade situation and the expected weakening of Renminbi, profitability has not been fundamentally improved. “Disposing of Air China Cargo is the concrete measure and reasonable choice for the company to address the uncertainties of the air cargo market, allowing the company to enhance the stability of its operation.”

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INSIDE K + N upgrades Europe

KUEHNE + Nagel will establish a single region for Europe, consolidating management for all countries under one roof with its head offices ... page 5

POWWWWWEEEEERRRR!!!!

IN the summer, Turkish Cargo moved the Devel Sixteen, which claims to be fastest car in the world. The vehicle, produced by Dubai-based ... page 7 compliance is assured

when involved in dangerous goods movemnets by airfreight, a top priority is always to minimise risks. This is to protect supply chain ... page 8

tarting at the s s e irs r o ceh Liege A Like ra an stop c es s g r o in h h ot 500 r, e b post, n m e t rse Inn his Sep the Ho h port. T g u o r nsit thr tates fo will tra nited S U es. e h m t a o t strian G e and fly u q E World the FEI

good start for volga-dnepr

A GLOBAL AOG service launched by Volga-Dnepr this year is satisfying customers as demand from aerospace customers soars ... page 10

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Panalpina fills Sao Paulo to Lisbon for LATAM

L TIACA and TSA Group to develop cargo training

THE International Air Cargo Association (TIACA) has been appointed a non-exclusive agent by UK-based aviation consultancy firm TSA Group, throwing its weight behind a training programme focusing on the transport of dangerous goods and aviation security. Courses to be developed in the coming months include topics such as ‘Air Transportation – A Manager’s Perspective’ and ‘Aviation Management’, and will provide insight on issues ranging from the history of aviation, to airline management and the international sector. TIACA secretary general, Vladimir Zubkov says training is essential for the success of the industry. He says: “Our partnership with TSA Group will complement the well-established courses structured and run by the Strategic Aviation Solutions International (SASI) and provide for a combination of different methods of training, thus offering TIACA members a comprehensive and modern training environment.” TSA Group’s courses, which are certified by the UK Department for Transport, are available both in classroom and online and involve a wide range of topics including lithium battery transport. TIACA will work with TSA Group on courses exploring soft skills such as communication and instructional techniques. TSA Group managing director, Patricia Setrakian says: “TSA Group’s partnership with TIACA will enable our training programs reach to a wider audience facilitating great quality and effective training.”

ACW 10 september 2018

ATAM Cargo’s service between Lisbon and Sao Paulo got off to a flying start with more than six tonnes of cargo from Panalpina. The Boeing 767 passenger service started on 3 September, providing five frequencies a week between Sao Paulo Guarulhos Airport and Lisbon’s Humberto Delgado Airport, providing a link between South America and the Iberian Peninsula. LATAM commercial director for Europe, Guido Henke says: “Brazil is a highly demanded and growing market for European exports as well as for passengers. Being able to offer capacity out of Europe from our seven and soon eight hubs including our Lisbon operation starting as from 3rd of September will ensure to all our customers a variety of options in order to guaranty speed, consistency and reliability within our

Honeywell Aerospace signs CEVA

Left to right: LATAM Cargo senior manager sales central Europe, Jorge Carretero, Panalpina country head of airfreight, Manuela Nogueira and Panalpina regional airfreight procurement and product manager Europe, David Wystrach network and product portfolio.” Panalpina global head of airfreight procurement and product management, Markus Muecke says: “This new, direct LATAM Cargo route will increase the connectivity between Europe and South America and improve speed and reliability

for our cargo customers on both sides of the Atlantic. “For Panalpina, Brazil as a country is one of the strongest growing air freight markets, so this new route is a great opportunity for us to expand our business even more.”

Etihad sticks with Trinity for LCK

CEVA Logistics has been appointed to operate the first distribution centre in Asia Pacific for Honeywell Aerospace Trading (HAT). Based in Kuala Lumpur, Malaysia, the new distribution centre provides supply chain solutions for HAT’s pre-owned certified parts to end users. Conveniently located within the Bukit Jelutong Industrial Park, CEVA Logistics will operate an ambient and air-conditioned, bonded facility for both raw materials and finished goods for export and local distribution. CEVA Logistics will also be one of the suppliers responsible for HAT’s global airfreight and import management, co-packing and Customs brokerage in Malaysia. This total solution will allow HAT to have a fast access to its inventory thus enabling it to focus on its core competencies in providing quality and timely support to end users. “We are pleased to be appointed as the first APAC distribution centre for Honeywell Aerospace Trading. CEVA Logistics has a good track record and long standing working relationship with Honeywell globally and regionally,” says Elaine Low, CEVA’s excutive vice president Southeast Asia.

ETIHAD Cargo and Trinity Logistics have renewed their partnership, which will see the airline continuing to operate three Boeing 777 Freighter flights a week to Rickenbacker International Airport. Signed in June 2016, the extended part-

nership allows Trinity to continue to serve the high fashion industry, forwarding apparel from Colombo, Sri Lanka and Hanoi, Vietnam to Columbus, Ohio. As well as three flights to Columbus, the partnership was further expanded to introduce an onward Etihad Cargo connection between Rickenbacker and East Midlands Airport in the UK. Etihad Airways managing director cargo and logistics services, Abdulla Mohamed Shadid says: “The long-term extension of our agreement with Trinity is an endorsement of the positive working relationship we enjoyed over the past years. It reaffirms Etihad’s commitment to fostering global logistics partnerships, and enhances our network by focusing on key successful trade lanes.”

ACW REWIND 500

Kuala Lumpur was the setting for the 24th TIACA Air Cargo Forum. As ever, ACW reported on the industry event, taking time out to enjoy the French food on WFS’s stand. They were not to be outdone by Infratil, owner of Glasgow Prestwick, who offered tots of Scotland’s finest single-malt whiskey.

Malaysia hosts ‘strategic industry’ Vol 11, Issue 47 24 November 2008 AT THE opening ceremony of this year’s Air Cargo Forum, organised by The International Air Cargo Association (TIACA), Malaysia’s international trade and industry minister Tian Sri Muhyiddan Yassin, observed that the logistics industry plays “a significant role” in facilitating Malaysia’s external trade with other countries. No longer can air cargo be considered just a supporting industry. It is in fact “a strategic industry,” he noted. “An important component of the logistics sector is the air cargo sector.

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As companies increasingly engage in just-intime delivery for goods, air freight (sic) will become an even more important aspect of the way business is done. The air cargo sector has assumed a significant role in our economy,” Yassin added. A statement from TIACA said: “Given the current challenging business and economic climate, the level of support for the event was once again extremely positive, with over 218 exhibitors and nearly 3,000 management attendees from all over the world.” 2010’s ACF was to be staged in Amsterdam.

Active tracking devices on AFKLMP flights

ith immediate effect, Air France KLM Martinair Cargo (AFKLMP) is now offering customers the option of using active tracking devices on its flights. This will enable them to track their shipments more precisely, whenever and however it suits

Finnair Cargo has appointed Air Logistics China as its general sales and service agent (GSSA) in Mainland China. The Air Logistics Group company started working with Finnair Cargo in Nanjing on 1 August, and the agreement in Guangzhou, Xi’an and Chongqing started on 1 September. The airline has also appointed Global Aviation Services as its GSSA in Bangladesh and Sri Lanka. The agreement is in place for Global Aviation Services to provide cargo sales, marketing, customer service, administration and operational support in the two countries.

them best. AFKLMP senior vice president sales and distribution Christophe Boucher (pictured) says: “Our aim is to support our customers in using end-to-end tracking solutions throughout the journey of their shipment. This forms part of our digital journey, expressed in the services we wish to offer our customers.” Customers place the tracking devices in their shipment before acceptance and take them out again after delivery at the final destination. The devices are capable of: sending data through telecom (or other) networks as well as providing GPS location and sensor data (temperature, humidity, shock/tilt and light). The use of active tracking devices on board flights is subject to specific conditions and the devices must be approved by officials of AFKLMP.

SF Airlines connects Changi Airport with Shenzhen

CHANGI Airport Group has welcomed the arrival of SF Airlines’ inaugural flight from Shenzhen, making it the first Chinese express airline to operate between Singapore and China. China is Changi’s largest air cargo market, with more than 270,000 tonnes of throughput for the 12 months ending June 2018, and SF Airlines’ weekly Boeing 767 Freighter service increasing main deck capacity to and from Shenzhen by about 16 per cent. The inaugural flight was welcomed by representatives from Chan-

gi and SF Airlines, with the airport’s managing director for air hub development, Lim Ching Kiat saying the service “will secure Singapore’s position as a premier regional cargo hub”. He adds: “There is also growing demand by the Chinese market for perishables and pharmaceutical products from the Southwest Pacific and Southeast Asian regions; both are among the top cargo segments passing through Changi Airport from these regions to China, with a robust year-on-year growth. “Singapore is a gateway for such flows between China and countries in the two regions. The added capacity by SF Airlines marks the start of expected growth of express flows on these routes.” SF Airlines vice president of maintenance and engineering, Liang Xi says: “The successful launch of direct flights to Singapore is a testament to SF Airlines’ ability in responding quickly to market demands, and showcases its commitment to its customers in providing competitive and reliable route options.” SF Airlines is a member of SF Group, and the Changi services will be an extension of its business in Singapore. SF Express has been operating in Singapore since February 2010 and established warehousing facilities in the Changi Airfreight Centre in September 2012.

Public gets new say on Menzies now ‘pure play’ Manston airport’s future aviation handlers THE representation period to examine the Development Consent Order of Manston Airport has opened, giving interested parties a chance to make their views on the proposals known. RiverOak Strategic Partners is proposing to reopen the airport as a cargo hub with a capacity for 12,000 movements per year, with some passenger and business aviation as well. The firm, which was established in March 2017 to manage RiverOak’s interest in the defunct airport had previously made a submission to the Planning Inspectorate in April this year, but withdrew it in May due to not providing enough information in areas including funding for the project, classing it as nationally significant and environmental matters. The updated application was submitted on 16 July and the Planning Inspectorate agreed to view the proposals on 14 August. An examining authority will now be appointed to examine the application, and all interested parties and other statutory bodies will be notified of the appointment after it has been made. Interested parties have until 8 October to register, then the Planning Inspectorate has three months to prepare for the examination, and during the pre-examination phase parties can register by making a Relevant Representation. Manston Airport closed on 15 May 2014.

WorldNews

UK-BASED Menzies has disposed of Menzies Distribution, its print media division, to investment funds managed by Endless, for £74.5 million on a cash and debt free basis. The disposal creates a pure play global aviation services business that is operating in a structural growth market and marks Menzies’ exit from the market for print media and retail logistics. Newly-appointed CEO, Forsyth Black, said: “I am delighted to have concluded our strategic realignment that will see the creation of John Menzies as a global pure play aviation services business. I believe we are well-placed to deliver our growth ambitions in the

structurally growing aviation services market and I am very proud to now lead the business forward as its CEO together with the support of my team.”

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united Airlines will fly to new destinations in the summer of 2019, with flights to the Netherlands, Italy and the Czech Republic. The airline will connect San Francisco with Amsterdam on 30 March with daily Boeing 787-9 flights, its fifth non-stop flight to the Dutch capital after Chicago, Houston, New York Newark and Washington Dulles. Between 22 May and 4 October, United will provide the only non-stop service between the USA and Naples, with daily Boeing 767-300 flights from New York Newark. From 6 June to 4 October, United will also offer daily Boeing 767-300 flights between Newark and Prague. korean Air celebrated its inaugural flight from Seoul, South Korea to Zagreb, Croatia on 1 September, the first regular service between the two countries. Flight EK919 from Seoul was welcomed with a water cannon salute upon landing at Zagreb’s Franjo Tudman International Airport. The airline is using an Airbus A330-200 on the thrice-weekly service, which leaves Seoul’s Incheon International Airport at 11.05 on Tuesdays, Thursdays and Saturdays. The return flight, number KE920 leaves Zagreb at 17.20 local time on Tuesdays, Thursdays and Saturdays, landing back in Seoul at 11.30 the next day. toshiaki Kobori has joined the board of Nippon Cargo Airlines as senior vice president for engineering and maintenance, replacing Kiyoji Matsuda who has resigned. The Japanese airline’s fleet was temporarily grounded on 16 June due to maintenance issues, with some aircraft resuming operations on 4 July. Independent freight forwarder network The WACO System has appointed DIMOTRANS Group as its member for France. The Lyon-based company provides the full suite of logistics services to the fashion, outdoors, wines and spirits, aerospace, industrial project, and e-commerce industries. DIMOTRANS offers logistics services and multichannel distribution tailored to various types of operations. karl Meiringer has taken over management of the Gebruder Weiss branch in Maria Lanzendorf near Vienna, succeeding Andreas Zwerger who will now the regional manager East for the company, a role he has been focusing on since 1 July. Meiringer, who started his new role on 3 September has been with the company since 1997 and worked at Maria Lanzendorf since 2008. Zwerger joined in 1990 and has held various key roles in Maria Lanzendorf. Maria Lanzendorf is the largest logistics centre in the Gebruder Weiss network, employing approximately 780 people, with services including land transport and air and sea freight. Former IATA director general and CEO, Tony Tyler will join the Qantas board as a non-executive director, subject to shareholder approval. Qantas chairman, Leigh Clifford announced the move, saying Tyler will bring significant experience in commercial aviation when he formally joins the board in October. Tyler served as director general and CEO of the International Air Transport Association from 2011 to 2016, before Alexandre de Juniac took over.

ACW 10 september 2018

Airbus is sailing with the first AirSeas automated kite

irbus has placed a firm order with AirSeas to purchase the first-ever automated kite for its cargo ships, in a deal signed at the SMM maritime trade fair in Hamburg, Germany. The automated kite, named SeaWing is based on parafoil technology used to tow commercial ships, and will offer Airbus a way to cut shipping fuel costs by 20 per cent and reduce its environmental footprint by 8,000 tonnes of CO2 per year. Airbus owns a fleet of four roll on roll off ships to transport aircraft parts around Europe and the USA, and it is focusing on improving productivity and delivering aircraft faster and more cost effectively for its customers. SeaWings combines aeronautical know-how with maritime technology to create a breakthrough in the maritime transpor-

Vincent Bernatets (left) with Airbus head of transport and logistics, Benoit Lemonnier

tation sector. A simple switch launches or recovers the kite which unfolds, operates and refolds autonomously. The system collects and analyses meteorological and oceanic data in real time, adapting this information to optimise its performance as well as improve safety. AirSeas chief executive officer, Vincent Bernatets says: “We are very proud that Airbus has confirmed its confidence in the SeaWing system after seeing our test results first-hand on their own ship. “This first RO-RO vessel installation opens the way for further pioneering deals on container ships, bulkers and ferries. We are glad we can start helping our customers to reduce ship emissions in order to preserve the environment.”

New appointments at SEKO Logistics...

as Hermes takes over SEKO Germany

SEKO Logistics has welcomed Mike Powell (pictured left) back to the company, giving him the role of chief technology officer. He previously spent four years with SEKO as vice president for information technology before leaving in 2010 to become a co-founder of a cloud-based logistics software company used by global and domestic third-party logistics companies, trucking companies and brokers. In 2014, he joined RIM Logistics as vice president for technology solutions where he was

Hermes Germany will be taking over SEKO Logistics’ German operations, with employees at both SEKO’s Bremen and Frankfurt offices being incorporated into the new structure. Hermes will become a key partner for the global SEKO network, which has more than 120 branches in over 40 countries, focusing on omni-channel logistics, white glove solutions, technology, international air and ocean freight, surface transport, combined transport, demand chain solutions, warehousing and logistics services. SEKO says this broadens the international growth potential for the Hermes Group, particularly for key e-commerce markets in the USA, Asia and Europe, while SEKO will profit from the extensive Hermes distribution network in Europe. Hermes Europe managing director, Stephan Schiller says: “With this acquisition, we will not only create synergy for the entire Hermes Group, the existing customer bases of both companies will also profit from the changes brought about by a broader product portfolio, e.g. in terms of access to fulfilment solutions in the USA, Asia

responsible for the company’s corporate technology strategy and streamlining operations to increase productivity. At SEKO, Powell has oversight and leadership of all matters relating to its technology strategy, products, solutions and operations as well as the development of the next generation of the MySEKO platform in coordination with board sponsor and global chief commercial officer, Mark White. Powell says: “Technology has always been a differentiator for SEKO in the eyes of its clients. SEKO has been providing technology solutions for many years that some newcomers to the market are only just starting to shout about. While they are doing that, we will continue to push the digital boundaries of the global supply chain process.” SEKO Logistics has also appointed Matthew Brown (pictured right) as chief financial officer, replacing Dan Sarna who is retiring. Prior to joining SEKO, Brown worked technology company SUZOHAPP, SAE Towers in the power industry, Latin American mobile phone distributor Brightpoint, and six years at Ernst and Young.

and Europe.” SEKO Logistics president and chief executive officer, James Gagne says: “We are extremely pleased to have gained a well-established partner in Hermes, one of the largest players on the European parcel and two-man-handling market and a highly efficient provider of supply chain solutions. “The partnership will blend together the heritage, experience and innovative services of two highly respected logistics companies whilst strengthening our respective global networks and local presence.”

Emirates SkyCargo flies first horses to FEI World Equestrian Games of water per horse. Greenville-Spartanburg International Airport senior vice president and chief operating officer, Kevin Howell says: “Today’s a little different, because this is four-legged cargo, we don’t move a lot of that. Actually our first equine charter was the test flight earlier this spring. The team is very focused on moving the horses safely, and keeping the horses in the best health and spirits for the competition.” After landing in Greenville, the first equine arrivals were transferred directly onto trucks for the 50 mile journey to Tryon, cross over the state line into North Carolina. The FEI World Equestrian Games will see human and equine athletes compete from 11 – 23 September for 29 medals in the Olympic disciplines of eventing, jumping and dressage, the Paralympic sport of para-dressage, alongside driving, endurance, reining and vaulting.

Emirates SkyCargo has transported the first group of 67 horses for the FEI World Equestrian Games Tryon 2018. The horses were flown from Liege, Belgium to Greenville-Spartanburg, South Carolina in an Emirates SkyCargo Boeing 777 Freighter. This is the first of 19 flights that Emirates SkyCargo will be operating as a special charter for one of the most important events in the global sporting calendar. With over 500 horses being flown for the games, this is the largest air horse charter that has been undertaken for a single sporting event, and Emirates SkyCargo worked with horse transportation specialist Peden Bloodstock to carry out the charter. Horses will travel on a number of flights on different airlines, and the freight carried from Europe, not including the horses themselves range from saddles, bridles, rugs and grooming kits, wheelbarrows and pitch forks, to horse shoes and all-terrain studs, as well as 51 tonnes of feed, in-flight snacks and 20 litres

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cargo-partner breaks ground in Ljubljana

K+N upgrades Europe

uehne + Nagel will establish a single region for Europe, consolidating management for all countries under one roof with its head office in Hamburg, Germany. Dr Hansjorg Rodi, who has been responsible for the Central and Eastern European region and managing director for Germany since October 2016, will lead the Europe region. Holger Ketz, head of airfreight in Central and Eastern Europe, will take over running the German organisation, and management for Germany will be located in Bremen from January 2019. Kuehne + Nagel chief executive officer, Dr Detlef Trefzger says: “The formation of a European region is an important step in the development of the whole Kuehne + Nagel Group, enabling us to manage our business even more efficiently and customer-oriented.” Kuehne + Nagel has also upgraded its European Pharma Fleet with 35 new trailers for its intermodal KN PharmaChain connection.

The new trailers are fully GxP compliant and offer state-of-the-art technology for temperature controlled transport, including dual temperature, double-deck equipment, Transport Asset Protection Association compliant integrated security locks to be opened remotely with a unique code, integrated control panel, printer for temperature report and GPS control for positioning, temperature, door sensors, coupling and technical status. Kuehne + Nagel senior vice president overland Europe, Uwe Hott says: “This investment is part of our commitment to provide comprehensive, GxP compliant transport solutions for the industry, which can be tailored to specific needs.” By enlarging its own dedicated trailer fleet of standardised Schmitz Cargobull Chassis with Thermoking cooling units, Kuehne + Nagel says it will facilitate seamless services for active temperature controlled FTL and LTL shipments across Europe.

GROUND was broken on cargo-partner’s iLogistics Center near Ljubljana Airport, which will provide 25,000 m2 of storage space when it opens in 2019. The ceremony was organised in cooperation with the Austrian Chamber of Commerce and held at the construction site at the L8 business complex on 30 August. The event was attended by Slovenia’s minister of economic development and technology, Zdravko Pocivalsek, along with director of Advantage Austria Ljubljana, Dr Peter Hasslacher; as well as representatives of the Austrian Chamber of Commerce in Slovenia and local politicians and the media. cargo-partner chief executive officer, Stefan Krauter and cargo-partner managing director in Slovenia, Viktor Kastelic also attended the event. Krauter says: “We are investing here in Slovenia because we believe that this special location near the ports of Koper and Trieste will remain an important gateway to Asia and the Mediterranean Sea as well as to former Yugoslavia,

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Transylvania, Hungary, Austria, Southern Germany and parts of Northern Italy.” Pocivalsek says that Slovenia is gaining importance for logistics, saying: “This is thanks in a large part to investments like the cargo-partner iLogistics Center, which bring higher added value and follow sustainable principles. cargo-partner has chosen Brnik, one of the most important entry points, and we sincerely wish for this location to continue to flourish in the future.” The iLogistics Center will contain over 20,000 pallet slots on more than 25,000 m2 of storage space and will also include a 6,000 m2 small parts and single pack area, 5,000 m2 of cross dock and block storage space and 4,000 m2 of office space. Located next to Ljubljana Airport, approximately 20 minutes from the city centre, it will offer direct connections to the A2 motorway. With 44 truck docks, the facility is equipped for daily pick-up and distribution from and to the surrounding area.

ACW 10 SEPTEMBER 2018

TURKEY

Turkish Cargo flies higher and higher

urkish Airlines continues to perform strongly, with profits increasing in the first half of 2018 and cargo volumes rising. Total revenue for the group was up 30 per cent to $6 billion due to growth in both the passenger and cargo divisions. Net operating profits rose by $17 million to $258 million due to increasing demand and unit revenues, despite fuel prices also rising. The cargo division made sure it helped out, with the amount of cargo carried rising by 28 per cent to 660,000 tons and revenue growing by 35 per cent to $784 million. Turkish Airlines operates flights to 49 domestic and 255 international domestic destinations and has a fleet of 325 aircraft, consisting of 215 narrow body, 92 wide body and 18 freighter

aircraft. Turkish Cargo continues to add new destinations to its network, most recently with flights to Kigali, Rwanda and Muscat, Oman. The airline says Kigali has great potential for imports and is very important for exports especially to Johannesburg. Airbus A330-200 Freighter flights to Rwanda’s capital city will be combined with services to Entebbe, Uganda. It says Muscat is an important import market for the USA, Europe, Far East and Turkey, and will be combined with South Asian flights. The A330-200F service will operate on an Istanbul-Muscat-Hanoi-Delhi-Istanbul circuit. In May, Turkish Cargo started weekly Airbus A310 Freighter services to Brussels, operating on Saturdays. Belgium is a major production centre for mechanical chemical products, min-

ing and automobile fixtures, and chocolate. Another highlight from this year is Turkish Cargo’s joint venture with Chinese cargo giant ZTO and Hong Kong based PAL Air, which is promised to be a game changer for the global express business. The deal was signed in June and the Hong Kong based company will cover door-to-door logistics activities, trucking, collection and dis-

tribution, freight transportation, cross docking and final mile delivery. ZTO is the world’s largest parcel distributer and has the widest express delivery coverage in China. PAL Air has launched a B2C wholesale postal express service including last mile fulfilment to retail express service providers in Hong Kong, China, Thailand, Vietnam, India and the USA.

Two and four-legged cargo welcome

TURKISH Cargo has transported five white rhinos to Shanghai, China from Johannesburg, South Africa via its hub in Istanbul, among various animal shipments this year. The five white rhinos each weigh one tonne and were once a common species in their natural habitat but are now endangered due to illegal hunting for their horns. Turkish Cargo says it only carries out live animal operations between qualified zoos, private institutions or acknowledged preservation and rehabilitation centres to prevent animal trafficking. The rhinos were accompanied by a specialist team and keepers. Turkish Cargo has transported numerous

ACW 10 SEPTEMBER 2018

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animals across its network including 16 threemonth old giraffes from Johannesburg to Tehran, Iran; 10 lions from Johannesburg to Pakistan; 10 giraffes to Bangladesh; four elephants to the United Arab Emirates; and three monkeys from the Democratic Republic of Congo to Ukraine. In January, Turkish Cargo transported penguins and lions to new homes in China. The 20 Humboldt Penguins, which had been living at Riga Zoo in Latvia where flown from Riga to Shanghai, via Istanbul on their way to the Public Oceanic Aquarium. Six lion cubs were also moved to Dhaka, Bangladesh and 14 adults also flew to China.

TURKEY

Ships to deliver fuel at Istanbul’s new airport

he first refuelling took place with 63,000 tonnes of oil in the fuel supply port of Istanbul New Airport on 10 August, which will be one of the few airports allowing fuel deliveries by ship. The new airport, which is scheduled to open at the end of October, will receive no fuel deliveries by land, with the airport management company, IGA saying transfer by sea being a low-cost operation instead of using 2,250 transport vehicles. The first test fuel shipment from Petrol Ofisi was received in the fuel tanks near the port, with vessel LR2 Pioneer docking at IGA Fuel Supply Port and transferring 63,000 tonnes of fuel through a 12 kilometre long pipeline to the fuel tanks located at the new airport. Tanks at the IGA Fuel Supply Port have an annual capacity of nearly six million cubic metres, and IGA says besides time and cost savings, safety will improve due to not having thousands of trucks driving around the area. The port will also perform refuelling on a 24/7 basis. Speaking after the test, IGA airport operations general manager and chief executive officer, Kadri Samsunlu said: “At Istanbul New Airport we are implementing new developments day by day. We are proud of implementing the first fuel delivery as a milestone of the project has been implemented. “We forecast that we will need to provide 13,200 cubic metres of fuel initially to deliver liquid fuel services to aircrafts following the commissioning of İstanbul New Airport project.” He said this quantity would require 315 land vehicles a day, but using the sea is more cost effective and reduces the burden placed on traffic in Istanbul. Samsunlu claims costs of transport to Istanbul New Airport will be reduced by 41 per cent. Explaining that unloading the fuel would have required 2,250 land vehicles, Samsunlu said: “Considering this significant figure, we are providing a much safer and much more important logistic infrastructure thanks to the fuel supply by sea. Time saving, cost advantage, and occupational safety ensured by maritime logistics will ensure the significant operational optimisation and serve your operational excellence understanding.”

DHL opens Izmir warehouse DHL Freight opened a new warehouse in the Manisa Organized Industrial Zone near Izmir, Turkey on 5 July. The 38,000 square metre warehouse represents an investment of “high single-digit million euros” and was built as a response to increasing customer demand with a growing economy and logistics industry in Turkey. When opening the facility, DHL Freight chief executive officer, Uwe Brinks said: “We’re thrilled to be opening our brand-new warehouse in Manisa. We’ve chosen to make a significant investment in our own network here in order to meet our customers’ growing needs and take advantage of Turkey’s essential geographic location for logistics routes.” DHL Freight Turkey managing director, Hasan Kavci was also present, who commented: “Manisa hosts Turkey’s first logistics park and is home to some of the country’s leading production and import/export companies. Our new warehouse provides a great opportunity to play a role in these global operations.”

POWWWWWEEEEERRRR!!!!!

IN the summer, Turkish Cargo moved the Devel Sixteen, which claims to be the fastest car in the world. The vehicle, produced by Dubai-based Devel has a 12.3 litre quad turbo V16 engine, which Devel claims produces over 5,000 bhp and giving it a top speed of well over 300 mph.

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ACW 10 SEPTEMBER 2018

dangerous goods

Compliance is assured as software supports safety

hen involved in dangerous goods movements by airfreight, a top priority is always to minimise risks. This is to protect supply chain personnel as much as the public. That is why authorities have developed many different regulations to keep the industry and its surroundings safe. In order to make sense of the multitude of regulations over the airfreighting of dangerous goods, DGOffice BV has created its DGOffice software package. The software house has offices located in the Netherlands, Denmark and Norway, while sales and support offices can be found throughout the world.

DGOffice is an online software solution, which can be accessed via any device with internet access, but it is mainly designed for and most practical to use on a PC. According to DGOffice BV marketing and communication manager Vivian Labrecque, dangerous goods can be transported via different transport modalities, of which each has its own regulation. She says: “These regulations are updated continuously and are strictly enforced by authorities. Exact details of dangerous goods rules must be looked up in books manually, which is also applicable for the creation of correct shipping documents and labels. It can be

extremely challenging and time-consuming to continuously comply with such standards, especially when different modes of transport are involved. No one is keen on risking a decline in acceptance, a fine because of incorrect labeling, the risks of accidentally combining non-compatible goods together in a shipment, or not to mention putting the corporate reputation at stake.” In the management of dangerous goods and hazardous materials, the online software solution DGOffice offers a complete set of tools to support shippers, ground handlers and forwarders. Compliance is ensured, at any point along the logistics chain where dangerous goods are involved, as well as at any place in the world at any moment. Most shipments can be considered to be multimodal, meaning that at least two types of transport are involved in one shipment. For a shipment by air, the products must get to the airport first, which most likely by road. Specifically, multimodal shipments can be complicated, as there are several regulations involved in each mode. Dangerous goods shipments must be packed and labeled correctly, accompanied by accurate and compliant documentation. DGOffice supports this; one continuously updated system that makes it easy to adapt regulations, languages and much more. She says: “According to research, it is very common to enter the exact same data several times at different places. Meanwhile, the online software DGOffice automatically reproduces this information and completes it at all relevant places in a document or label, which makes it a true time-saver and simultaneously prevents potential errors.”

Data copying

“Data copying for each party in a transportation chain can be part of the past. However, information must be shared with other parties that are involved in the shipping process as well. Exchange of hard-copy paperwork is not necessary anymore, as regulators allowed digital transferring of information.” She adds: “This led to new developments in the industry. One of such developments is

ACW 10 september 2018

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focused on streamlining data sharing in such a way that is convenient and beneficial for all parties involved in a shipment. A system that supports the exchange of information without the need for any party to re-copy data. This can be found in the DGOffice dangerous goods data sharing standard (DGXML) as well as in the E-Freight solution which was published in July this year.”

Resellers

DGOffice BV develops and maintains the online software DGOffice, web services and databases. The products are marketed via resellers, whom are located across the globe. They are all active in the dangerous goods market and provide different complimentary services or products, such as DG training, packing, consulting, or labels. The software is licensed on an annual base. It has a modular design, which means that only the software modules required are used. Each module has its own set of functions. Next to the core component that covers all basic tools, any other module can be added. When needs change, adjustments can be made at the click of a button.

Lithium batteries cost shippers $350k fines

IN THE first eight months of 2018, three of four haz-mat fines issued by the Federal Aviation Administration (FAA) involved shippers sending lithium batteries incorrectly. Fines for the lithium offences came to $350,250. The fourth fine was for a flammable paint shipment. Total fines imposed came to $404,250. The latest proposed fine of $126,000 was against RAE-I.T. Asset Management, of Ocala, Florida. The FAA alleges that in May 2017, the company offered a shipment containing 220 lithium ion cell phone batteries weighing approximately 36 pounds to UPS for shipment by air not packaged in a manner to prevent sparks or a dangerous evolution of heat. Workers at the UPS cargo facility at Louisville International Airport in Kentucky discovered the shipment.

DANGEROUS GOODS When dangerous goods are as simple as ABC I

AIRBRIDGECARGO Airlines (ABC) is one of the few carriers in the world to carry all nine classes of DG (including CAO cases) and is an acknowledged reliable expert when it comes to transportation of DG. This covers from simple consumer goods, such as aerosols, paints and perfumery products, up to highly radioactive materials used in manufacturing and medicine. It also covers acceptance of all types of lithium metal and lithium-ion batteries, both single and in/with equipment, including cases under special provisions A88 and A99, as well as the transportation of electric-powered vehicles (BEV, HEV and EV). According to AirBridgeCargo Airlines director general Sergey Lazarev in 2017 the carrier transported over 11,000 tonnes of dangerous goods, and a further 7,000 tonnes during the first six months of 2018, which is almost 50 per cent up compared to the same period of 2017. The upsurge is attributed to emerging volumes of DG cargoes, as well as the strengthening of ABC’s dedicated services – abcDG. He says: “On a monthly basis, we transport around 1,500 tonnes of DG cargo onboard our freighter services, with the main trade lane being that of Asia-Europe and the most common DG cargoes being high-tech products containing lithium batteries. We have also seen a strong increase in demand for automotive and aviation spare parts from Europe to Asia and from America to Europe, which we attribute to growing customer awareness of our dedicated abc DG and and DG/Li products as well as the realignment of internal procedures, reinforcement of the abc DG team, and introduction of the latest IT technologies.” ABC operates in full compliance with IATA Dangerous Goods Regulations and ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air, Doc 9284 AN/905. Apart from that, additionally, it follows its own internal safety procedures, which were developed to control and diminish the risks during DG transportation. This is mostly applicable to delivery of lithium batteries, as well as other classes of DG, falling within the CAO (cargo aircraft only) category. All ABC specialists dealing with DG transportation are regularly trained for IATA DGR compliance, either at special training centres

or in-house with ABC IATA DG trainers who organise trainings for ABC personnel. Apart from DG trainings, required by state regulators, ABC specialists also complete a separate course for lithium batteries transportation. Transportation of dangerous goods is strictly regulated by IATA Dangerous Goods Regulations and ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air, Doc 9284 AN/905, which are subject to compliance by all the supply chain stakeholders. Lazarev says: “Nowadays, the most problematic issue with DG is the transportation of lithium batteries, both separate and in equipment. The volumes are increasing every year, coupled with problems arising during the course of their transportation. To successfully transport lithium batteries is a multi-tiered process which requires precise and accurate actions and strict compliance with all industry-related regulations. “All the stakeholders should audit each step of the transportation in order to identify critical points and develop an action plan for further improvement and refinement.” AirBridgeCargo has been developing new solutions and adapting latest technologies to maintain safety and security for DG

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transportation. One suggestion was related to a safe and reliable ULD. That said, a prototype of a unique container for LB transportation, manufactured jointly by AirBridgeCargo and German company Gelkoh, has been designed to give ABC customers extra confidence in safety during transportation. Lazarev Lazarev says: “It features modified walls with a fireproof material to withstand fire of lithium batteries; decompression windows to let the smoke pass outside in case of fire to prevent bursting; and special protection on the floor, to prevent damage from pallets. “Being aware of the risks associated with lithium batteries transportation means reviewing cutting-edge technologies to guarantee safety and security. We have also initiated usage of fire containment covers (FFC) to protect shipments during the whole flight. Apart from minimisation of aviation accident and risk, it is lightweight, easy-to-handle, and durable.” The biggest problem with e-commerce shipments is that sometimes goods are identified/labelled wrongly as general cargo without specifying a DG class. With so many goods containing lithium batteries in e-commerce shipments (smart phones, power banks, kids toys, hoverboards, etc) mistakes and non-compliance are frequent cases which leads to emerging volumes of ‘hidden’ DG shipments. He says: “There have been some situations in the wider air cargo industry where inappropriate DG handling has led to major aviation emergency incidents. That said, in our practice, we take all necessary actions to minimise risks, make assessments and take preventative actions to avoid problematic situations with DG shipments. “This problem is mostly related to a lack of essential training and knowledge among supply chain stakeholders – something our industry should be addressing, “ says Lazarev.

ACW 10 SEPTEMBER 2018

AOG SERVICES

Third generation advances for B&H

erospace logistics company B&H Worldwide is moving to the third generation of its OnTrack IT system that provides 24/7 real-time tracking of every AOG (Aircraft on Ground) shipment it handles. Clients can track AOGs by part number, serial number, tail number or heavy maintenance event, allowing visibility of the precise location of the shipment at any time. London Heathrow-based group sales director and CIO, Seth Profit says: “We launched OnTrack in 2000. We are now launching the third generation, which is called FirstTrac. This brings together eight different functions of OnTrack that have developed separately.” Profit reveals the company, which has 10 offices in eight countries, including the UK, Germany, Singapore, New Zealand and the United States supports some 29,000 AOGs annually. These incidents divide into two types, “real” AOG and “maintenance” AOG. He says: “Of the 29,000 AOGs a year, a quarter to a third are what might be called ‘real’ AOGs. This is where a part is needed ‘yesterday’ to get an aircraft back in the air, earning revenue for the airline.” These incidents are more likely to occur in the sum-

mer months as airlines sweat their assets as passenger number rise. “Then there is the maintenance AOGs,” he says, explaining that these occur mainly in the winter months as airlines undertake C and D checks on aircraft. He says: “The engineers will start with a parts list and realise they are missing vital parts that we will ensure get to them.” Around a quarter of the company’s staff are involved in AOG Profit events, with the company having specialist AOG staff attached to each of its offices. The company’s FirstTrac will build on OnTrack and offer four key functions for clients: locating part and materials in the company’s warehousing; track and trace facilities for the part; order management and a dashboard for clients to oversee the supply

chain for the parts.

Deal with airBaltic

The latest signing by B&H Worldwide of an agreement to handle AOG as service cargo to and from London Gatwick has been with airBaltic. airBaltic operates a fleet of 34 aircraft offering direct flights from the Latvian capital, Riga, to more than 70 destinations. Under the contract, effective immediately, B&H will exclusively manage all AOG traffic, time-critical spares and routine shipments. B&H will take care of the entire shipping process providing a new level of shipment transparency to airBaltic through the use of its unique OnTrack system to provide track & trace and reporting with an option to include full inventory management in the future. The contract will be managed through the B&H London Heathrow Control Tower providing round-the-clock 24/7, 365 service to the customer globally.

Why SOAR works in the open air ...

alifornia-based SOAR undertakes most of its work for clients “in the open” or at locations where there are no airport hangars available. According to SOAR general manager Chris Merry, there is a surprising reason for this. He says: “Believe it or not, most of the airports in the world do not have hangars and those that do will most often not have availability. “Due to regulation [changes] over the last few years, very few repairs are allowed to be accomplished directly out in the open. So, almost all of our repairs occur in portable hangars, with the smaller percentage being performed in

leased hangars or even the customer hangars. The number of projects being accomplished in portable hangars at airports with and without hangars is increasing. Today it is probably a 60/40 split. By this time next year it may be 80/20.” The company has invested in multiple portable hangar units and through a partner company, has the ability to manufacture and deliver anywhere in the world in relatively short timing, often ahead of parts availability for aircraft repairs. Merry reveals that there has been an interesting industry trend he has noted since around

A GLOBAL AOG service launched by Volga-Dnepr this year is satisfying customers as demand from aerospace customers soars, says the Russian carrier. Its new AOG service offers “a ‘fast, trackable and managed solution’ for the delivery of urgent spare parts to aircraft stranded around the world,” says the carrier. Supported by a 24/7 team of aviation professionals, it offers the “fastest and most cost-efficient solution” using either air charter or scheduled cargo services, utilising the group’s fleet of Boeing 747, Boeing 737, An-124100 and IL-76TD-90VD freighters. AOG spares carried on the group’s scheduled services in Europe, North America and Asia Pacific will be confirmed on the first available flight. Volga-Dnepr Group vice president of sales

and marketing Robert van de Weg, says: “As aircraft operators ourselves and as a provider of transportation and logistics services to the aerospace industry for the last 28 years, we know only too well how important it is to have a fast, trackable and managed solution to deal with AOG situations. “For every airline, safety and security is their main priority but it is also important to get aircraft operational again quickly for both customer service and economic reasons when they suffer a technical fault. The new service was launched at July’s Farnborough International Airshow in the UK. Cargoes handled in 2018 classified as oversize and heavy shipments falling under the airline’s abcXL product category included engines, helicopters, and other aircraft spare parts headed for AOG incidents.

Good start for Volga-Dnepr’s AOG service

Van de Weg

ACW 10 SEPTEMBER 2018

Merry explains why the company has this breadth of activities. The company is built entirely around aircraft incident repair. However, as he says, that is not a predictable line of business that generates back-log. The same resources used to perform incident repair also

are useful for field modification, lease recovery, aircraft purchase, bridging and delivery to new operators. In total the combined repair services make up about 80 per cent of SOAR’s business. Logistics such as hangars and provision of support services to companies make up about 20 per cent of SOAR’s business. One aspect of the Newport Beach business is that it has a trademarked SOAR Network of eight aviation services companies that it collaborates with. Merry says: “The majority of SOAR Network partner companies are independent but under long term cooperative partnership agreements [with us].” These companies include LMI Aerospace, Aero Mechanical Industries, Mantomain, SR Technics and Sabena Technics. The privately-held company also deals with aircraft recovery, including centre of gravity management, structural integrity analysis, interim integrity restoration and coordination of local resources and authorities for lifting and movement. As well, SOAR has extensive sales, brokerage and bridging execution experience for most models of commercial aircraft.

HONG KONG-based freight forwarder and logistics company U-Freight reports that its initiative to boost its presence in the global aviation and aerospace supply chain management market is beginning to take shape. It has been working on a worldwide basis with SOAR, the US-based global provider of services for emergency repairs for large AOG events, as well as scheduled airframe repairs. Among these projects is the crating and shipping of full-size mobile aircraft hangars to various locations, with recent activity primarily in Asia. The hangars, which are used to protect an aircraft in situ whilst under repair, are based globally and have been used most recently in Indonesia, Netherlands, The Philippines and Portugal. The hangars are able to shield an aircraft as large as a Boeing 747 to protect it from the elements. The hangars are moved in a disassembled state in up to six 40 ft high-cube containers, depending upon size and mission. These containers will be transported by road or sea modes. U-Freight is also responsible for moving the tooling required for each of these projects from

the US to the different project locations and also for returning the equipment to the US for refurbishment. SOAR continues to expand its worldwide presence and with it, looks to U-Freight to provide logistics solutions as well as quick action for its AOG services, says the forwarder. “Operators know only too well that stationary aircraft on the apron prove conclusively that time really is money in the airline industry. “Whether it is a critical AOG shipment that needs to move from Munich to Montreal, or from Brussels to Beijing, our network of offices and collection services means that we can offer cost effective, reliable logistics solutions to the aviation and aerospace industry,” says U-Freight Group CEO Simon Wong. “When SOAR is called upon by an airline to provide AOG repair services, it knows that it can call upon U-Freight to provide the logistics support to expedite delivery of the spares and equipment to the project site - whether that is a mobile repair hangar or an aircraft engine - via its worldwide network.”

2015. He says: “More and more in the recent three years, our customers have requested complete privacy in regard to mentioning anything about the repair work we provide to their aircraft.” However, this enforced radio silence does not prevent him from detailing some of ROAR’s work. “This year we can say we have performed approximately 10 evaluations of aircraft with some becoming repair projects. Examples of additional current activities include recovery of a Boeing 787, oversight of the repair of a B747 with structural damage, a horizontal stabilizer replacement on an A330 aircraft, and we have supported OEM teams in their work. We also have several repair projects pending.”

Aircraft incident

... as U-Freight looks to AOG growth

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