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WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
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Etihad New Sponsorship Page.indd 1
11/01/2018 16:51
The weekly newspaper for air cargo professionals Volume: 21
Issue: 2
15 January 2018
Phoenix set to be e-commerce boom town
hoenix-Mesa Gateway Airport will be the home of SkyBridge Arizona, the first international air cargo hub to be home to both Mexican and US customs, giving cross-border trade a major boost. The plan was announced by Arizona governor, Doug Ducey, and it will enable e-commerce companies, manufacturers and other commercial interests conducting business in Mexico and throughout Latin America to transport goods more efficiently and cost-effectively between
countries while ensuring proper inspections and safety controls. The project is expected to create 17,000 direct and indirect jobs while increasing cargo flights out of Phoenix-Mesa by 2,000 a year, eventually reaching 10,000 by 2036. Governor Ducey says: “Arizona has forged an incredible relationship with our friends and neighbours in Mexico, and we’re very proud of this latest collaboration to enhance international trade and create more jobs for Arizonans.”
The agreements were signed by United States Customs and Border Protection, Mexico’s Administracion General de Aduanas and Phoenix-Mesa Gateway Airport creating America’s first and only inland international air logistics and processing hub with Mexico. SkyBridge chief executive officer, Ariel Picker says: “SkyBridge will truly change the way we conduct cross-border business, slashing delivery times for companies and ensuring safe transit. This is true international cooperation and something we can all be proud of.” The new service will allow users to send products anywhere in Mexico without having to go through the international customs centre in Mexico City. Mesa mayor, John Giles says: “This project will transform Mesa into an international e-commerce hub, benefitting not only our city but also our state and the Arizona-Mexico region as a whole.” All required documents, inspections, tracking and other services will occur on-site in Phoenix, with Customs Processing status following packages and cargo electronically to their final destination in Mexico and eventually further into Central and South America.
A historic Bristol Freighter has returned home to the UK for restoration following 40 years in storage in New Zealand. The Type 170, known as the Freighter, was built by the Bristol Aerospace Company, was transported by sea from New Zealand to Bristol, before travelling by road on 4 January with the help of Kings Heavy Haulage to the Aerospace Bristol museum in Filton, where it will be stored in the Brabazon Hangar until it is restored. The aircraft, one of only 11 complete survivors out of the 214 produced, is now the only one in Europe, and had flown to New Zealand in 1954 where it served in the air force until 1977 before being stored at Ardmore Field, near Auckland. The body was transported on 4 January and the five-tonne wings completed the same journey overnight on 5 January. The aircraft will not be ready for public dis-
play until it has been reassembled and restored once funds have been raised for a new hangar. The Bristol Freighter was produced between 1945 and 1958 and featured clamshell doors allowing cargo including vehicles and large animals to be loaded via its nose.
An enlarged version known as the Superfreighter was designed for Silver City Airways, entering service in 1953. A passenger version of the Type 170 was also produced and was known as the Wayfarer. Picture credit, Kings Heavy Haulage.
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Bristol Freighter returns home after 40 years in New Zealand
WFS COMMITS TO NEW YORK WITH NEW JFK TERMINAL A TURNING POINT FOR THE LARGEST CARGO HUB? GROWTH REMAINS ON THE AGENDA FOR GERMANY PADERBORN AND MUNICH VOLUMES KEEP RISING
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Demand remains strong in November AIR cargo demand has remained strong in November with 8.8 per cent growth despite indicators suggesting the peak of cyclical growth the passed, the International Air Transport Association (IATA) says. The association says the uptick in freight growth coincides with the traditional period of strong demand seen in the fourth quarter, with November’s performance putting the air cargo industry back on track to achieve its strongest operational and financial performance since 2010. It says the Purchasing Managers Index for manufacturing and export orders, which has tracked sideways for much of 2017, reached a seven-year high in the fourth quarter signifying that growth is carrying momentum into 2018. IATA director general and CEO Alexandre de Juniac says: “Air freight demand remains robust. November showed 8.8 per cent year-on-year growth, keeping up the momentum that will make 2017 the strongest year for air cargo since 2010. “And there are several indicators that 2018 will be a good year as well. Buoyant consumer confidence, the growth of international e-commerce and the broad-based global economic upturn are cause for optimism as we head into the New Year.”
aircargoweek.com
NEWSWEEK
Turkish Cargo orders three more 777Fs
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urkish Airlines is continuing to expand its freighter fleet by ordering an additional three Boeing 777 Freighters, to join the two it took delivery of in December. The 777 Freighter is based on the 777-200LR passenger aircraft, and can fly 4,900 nautical miles with a full payload of 102 tonnes. Boeing says its range means significant cost savings for airlines, fewer stops and associated landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter cargo delivery times. Turkish Airlines chairman of the board and the executive committee, Ilker Ayci says: “These freighter orders will surely contribute to our significant target for establishing a young and efficient cargo fleet. The new aircraft will be delivered this year and will provide us with additional flexibility to serve more destinations while we continue to develop our global freight service.” Boeing Commercial Airplanes senior vice president of sales – Middle East, Turkey, Russia, Central Asia and Africa, Marty Bentrott says: “The 777 Freighter is the largest and most capable twin-engine freighter in the world today. We’re pleased worldclass customers like Turkish Airlines recognise the value of the 777 Freighter’s long range and large payload capability.”
Turkish Cargo took delivery of its first 777F on 7 December, and the second one joined at the end of the month. The airline had a busy year in 2017, launching a number of new freighter destinations across the world. In Europe it started freighter flights to Oslo, Norway; Paris, France; Prague, Czech Republic; and Riga, Latvia. In Asia there were extra flights to Shanghai, China, and in South America there was a new service to Sao Paulo Guaralhos via Dakar in Senegal in July. Turkish also expanded in Africa with flights to Kano, Nigeria via Dakar; Johannesburg, South Africa; and Antananarivo in Madagascar.
Ethiopian to lease two 737-800s
ETHIOPIAN Cargo and Logistics Services has committed to lease two Boeing 737-800 Freighters from GECAS, which will have joined the fleet by January 2019. The aircraft will be converted by Aeronautical Engineers (AEI) and leased from GE Capital Aviation Services (GECAS), with the first delivery expected in June 2018, and the second following in January 2019. The AEI converted freighter accommodates 11 full height containers plus one AEP/AEH, a main deck payload of up to 23.6 tonnes and has AEI’s hydraulically operated cargo door. Ethiopian Airlines Group chief executive officer, Tewolde Gebremariam says: “The aircraft will be a great complement to our existing fleet of B777 and B757 freighters. “In line with our Vision 2025 Ethiopian Cargo and Logistics strategic roadmap, we are expanding our cargo fleet and network to support trade within Africa and with the rest of the world by facilitating the export of perishables and the import of high value goods into the continent.”
ACW REWIND
IN THIS second visit to the archives, a famous aviation name of the time is recalled, while TNT spends millions of guilders
Old airline brings new name Vol 1, Issue 1 1 May 1998 US AIRWAYS, formerly known as USAir, is returning to trans-atlantic services between the UK and hubs in Philadelphia and Charlotte. The airline is led by one of the great names in US airfreight, Stephen Wolf, the American airline executive credited with returning all-cargo legend Flying Tigers to profitability before selling it on to FedEx. US Airways operates wide-body Boeing 767-200ER equipped with extra-large forward cargo doors - measuring 167cm x 340cm - fitted at a cost of $4 m per aircraft.
EXPRESS OPERATOR TNT has launched a new corporate identity and a new multi-million-guilder hub at Liege, Belgium. The new centre employs 700 people.
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SAA helps Toyota race to Dakar glory
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outh African Airways Cargo (SAA Cargo) has collaborated with the Toyota Gazoo Racing South Africa Team as the airfreight partner for the 2018 Dakar Rally. The partnership has been in place since 2012 and involves transporting the racing vehicles to Sao Paulo, Brazil, en route to Lima, Peru for the start. The shipment consists of three vehicles and spares weighing 7.9 tonnes, for the event that takes place between 6 and 20 January in Peru, Bolivia and Argentina, which is considered one of the toughest motorsports events in the world. The racing vehicles are designed in line with size restrictions for commercial cargo holds and take about three hours to disassemble and six hours to reassemble, and they weigh about two tonnes each. It took 16 hours for the shipment to reach its destination with 11 hours spent on the aircraft. SAA Cargo general manager, Tleli Makhetha says: “There is about two months’ preparation before the vehicles are transported to ensure that the vehicles get there without any hassles. Our priority is the needs of the client as without them we do not have a business. All of this is achieved through team effort and hard work.” Toyota Gazoo Racing team principal, Glyn Hall says: “In motor
racing, development of the race vehicle is critical. Development takes time, and our partnership with SAA Cargo means that we don’t have to rely on sea freight to send our cars to South America. This gives us a significant advantage in our development strategy.” The 40th edition of the Dakar Rally started in Lima on 6 January, before travelling to La Paz in Bolivia, ending in Cordoba, Argentina on 20 January with 450 cars, trucks, motorcycles and quad bikes covering 9,500 kilometres over 14 stages across 15 days.
NEWS WEEK WORLDNEWS
ATLAS Air has appointed a trio of executives with roles for Richard Broekman, Alvin Tay and Dr Joerg Andriof. Broekman is now senior vice president of global sales and commercial development overseeing activities for the ACMI and CMI business. Tay will be vice president of sales and marketing for the Asia Pacific region when he joins in March 2018, and Andriof is senior vice president for Titan Singapore Aviation Leasing. All three will report to Atlas chief commercial officer, Michael Steen. JIM Szczesniak has been chosen as manager of Ted Stevens Anchorage International Airport, starting his new job on 22 January. Szczesniak, who is taking over from John Parrott, has a BS in Aviation Management from Southern Illinois University and an MBA in Accounting and Finance from the University of Chicago. He is a certified professional pilot and aviation mechanic with over 20 years of supervisory and management experience, starting at O’Hare and Midway airports in Chicago.
FedEx opens Shanghai express and cargo hub
FEDEX Express has opened the FedEx Shanghai International Express and Cargo Hub, providing greater connectivity and convenience for customers in eastern China. The facility is located at Shanghai Pudong International Airport and FedEx says it applies cutting-edge technologies and innovation to enhance operational efficiency. It covers 134,000 square metres and is equipped with a dedicated Customer Care Centre as well as cold chain facilities. The Cold Chain Centre will support the healthcare industry, one of the fastest growing sectors in the Asia Pacific region, and is equipped with temperature controlled storage ranging from -22C to 25C. It offers a full suite of cold chain logistics solutions tailored to different healthcare products such as medicines, semi-finished medicines and pharmaceuticals. FedEx Express president and chief executive officer, David Cunningham says: “The Asia Pacific region remains the growth driver of the world. This new Hub adds yet another major facility to our already comprehensive regional and global network, giving our Asia Pacific customers reliable access to international markets.” The company has 66 weekly flights in and out of the hub, which has a fully automated sorting system, and the new facility can process up to 36,000 packages and documents per hour.
Voting opens for prestigious World Air Cargo Awards WE are delighted to announce that voting for the Air Cargo Week World Air Cargo Awards will open on Monday 15th January 2018! The presentation of the Awards will be held at a glittering Gala Dinner on the evening of Thursday 17th May 2018 (venue TBC). This highly successful gala occasion is the largest and most authoritative celebration of excellence in the global air cargo industry in the world. Awards are presented in ten categories ranging from Airfreight Forwarder of the Year to Cargo Airline of the Year and are voted upon by members of the air cargo community. The evening will commence with a superb Champagne Reception followed by a magnificent Chinese banquet with fine wines, live music and entertainment. Contact Kim Smith kim.smith@azurainternational.com for further details.
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NEWSWEEK
WFS commits to New York with lease for new JFK terminal
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orldwide Flight Services (WFS) has demonstrated its commitment to New York by signing a 15-year lease on a 346,000 square foot cargo terminal at John F. Kennedy International Airport. The handling agent is already one of the largest at JFK, handling over 650,000 tonnes of cargo a year for nearly 70 airlines at its nine facilities at the airport, spanning a footprint of over 760,000 square feet. The state-of-the-art terminal (artist impression pictured) is the first phase of the Port Authority of New York and New Jersey’s comprehensive Vision Plan to enhance JFK. The projected opening of the new building in the fourth quarter of 2020 will enable WFS to offer the airport’s first dedicated facilities for temperature-controlled pharmaceutical products and perishable cargo. The facility will have a throughput capacity of over 300 million kilos a year, and offer improved cargo flows and
reduced transfer times, shorter truck waiting times and incorporate the latest security and screening systems and procedures. New York Governor, Andrew M. Cuomo says: “We are transforming JFK into a world class, state-of-the-art airport and – with this new cargo facility – a major economic engine. With this much-needed modernisation of JFK’s cargo operations, we will help create jobs and support economic growth across the entire New York metropolitan area for years to come.”
WFS Americas chief executive officer, Michael A. Duffy (pictured) adds: “As a major supporter of the New York cargo community, WFS is delighted to witness the ambition for JFK’s cargo future, which will reinforce its position as one of the world’s leading freight airports and gateways. “With our own volumes at JFK growing some six per cent in 2017, the Aero JFK II facility will give us the capacity to grow and to fulfil our prime global commitment to safety, security and service quality.” Aeroterm has been awarded a contract by the Port Authority Board of Commissioners to build the new Aero JFK II facility, a $132 million investment that will see WFS operating from the airport’s most modern cargo location. The Port Authority Board has also approved a further $62.2 million project to upgrade taxiways CA and CB at JFK to accommodate today’s modern freighter aircraft. The Aero JFK II facility will be built on a 26-acre site following the demolition of two 40-year-old and vacant cargo buildings at the airport and will also provide ramp space for three wide-body aircraft.
Brussels Airport flies past 500,000 tonnes with 8.3% growth in 2017
CARGO volumes at Brussels Airport have soared by 8.3 per cent in 2017 to 535,634 tonnes, the highest volume in the past 10 years. The airport serving Belgium’s capital saw particularly strong growth in belly cargo, rising 13.8 per cent, helped by Hainan Airlines launching Boeing 787 flights to Shanghai and Emirates introducing a second daily Boeing 777 service to Dubai. This sector is expected to continue growing with Cathay Pacific starting Airbus A350 services to Hong Kong later this year. The full freighter segment saw lower growth of three per cent thanks to a strong first quarter and good volumes in November and December. Brussels Airport head of cargo and logistics, Steven Polmans says: “This three per cent growth follows an increase of almost 15 per cent last year compared to 2015. So despite some noise issues we had in Q2 resulting in a few airlines leaving the airport, we are very pleased to see that growth picked up again by the end of the year still resulting in an overall growth in this
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segment.” Export volumes drove the growth with an increase of almost 16 per cent, and Polmans says: “We have seen a remarkable increase in our volumes to especially the Far East and South America, supported by a strong performance of the European and Belgian economy.” Pharmaceuticals were also very strong, with Brussels recording an increase of 18 per cent in the transportation of flown products compared to 2016. Integrator services were up 9.7 per cent, and DHL Express moved to a new state-ofthe-art facility in August 2017, resulting in strong growth figures. The strong growth is expected to continue into 2018, with Amerijet having already announced a direct Miami to Brussels flight, twice weekly starting in the second quarter. Brussels says it will further strengthen its cargo team as well as making considerable investments in its cargo area, BRUcargo. It will introduce an additional handling agent later this year after the conclusion of the ongoing tender process.
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29/12/2017 13:24
HONG KONG
A turning point for the world’s largest cargo hub?
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an Hong Kong continue to flourish as not just the leading air cargo hub of the world, but perhaps more importantly, the air cargo gateway to China to which it owes its pre-eminent position? Donald Urquhart asks where next for Hong Kong. Hong Kong is the undisputed air cargo king of the world. But a number of developments promise both good and bad for the world’s largest cargo hub with the only unifying theme amongst these being a grab-bag of change – some potentially good news and some, clearly bad news. A new bridge
to China’s Pearl River Delta; changes in global consumption; an emergent China; skyrocketing land and labour costs; a desperately needed new runway at Hong Kong International Airport (HKIA); and the list goes on and on. For air carriers, the joy of Hong Kong is indisputable. Efficiency, connectivity, ease of doing business, a vibrant forwarding community and an abundance of cargo makes Hong Kong a no-brainer in route planning. Take for instance AirBridgeCargo (ABC) for which Hong Kong has become one of its most important gateways – so important in fact, that in 2014, the Group management team relocated to Hong Kong to oversee the carrier’s overall development in the region. From two weekly frequencies, Hong Kong is now served by 18 ABC flights weekly. Its not hard to see why as Hong Kong-based
managing director Middle East & Asia Pacific, for Air Logistics Group, Vikram Singh points out, Hong Kong benefits from its position next to mainland China. “It continues to enjoy a special preference as an export hub for the mainland,” Singh says.
Business friendly environment
AirBridgeCargo’s regional director for Asia and Pacific, Joanna Li agrees on Hong Kong’s geographic benefit, adding that its successful cargo hub operation also benefits from the territory’s “free port policy, supported by streamlined Customs, trade regulations and business-friendly environment that are the backbone of the airport’s development and the main growth drivers.” As Air Logistics Group’s business development manager for Asia Pacific, Sander Bras highlights, Hong Kong has leveraged its location with policies that have created huge capacity and connectivity and this has created substantial efficiencies throughout the logistics chain, he says. Li says: “The airport’s management has followed the path of effective investment management with the focus on automation of handling and warehouse cargo processes, implementation of special cargo facilities and wide application of IT technologies.” The number of carriers, frequencies and destinations served is unbeatable as Hong Kong Air Cargo Terminals Ltd (Hactl) chief executive, Mark Whitehead points out. “No other airport in this region comes close, and this acts as a magnet for new carriers as they are entering a readymade market which is close to the mainland. In addition, Hong Kong enjoys sophisticated Customs processes, and first class infrastructure.” The potential threat of ascendant mainland hubs has long been a worry in Hong Kong, something that, so far, has not had a dramatic
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impact.
Neighbouring competition
Bras underscores this long-discussed threat saying: “The main risk of increasing decline of volumes is linked to the economic trade development of China.” Singh also points to the shift of manufacturing north and westward; part of the Chinese government’s strategy to diversify production into the hinterland. He says: “As capacity grows towards more and more secondary cities, their closer proximity, more liberalisation of these airports, a more unified customs standard operating procedure, as well as attractive pricing, will divert volumes away from Hong Kong.” This is already well under way, what with Chengdu and Zhengzhou’s growth as key inland hubs. But perhaps more worrisome is the view from Hong Kong freight forwarders. The chairman of the Hong Kong Association of Freight Forwarding and Logistics (HAFFA), Brian Wu says the long-talked about threat from Chinese airports is likely to finally materialise within the coming decade. While Wu is staunch supporter of Hong Kong’s cargo sector and an active participant in discussions and planning with the Hong Kong government as the chief representative of his forwarding members, Wu is also a realist. “I have tried to diversify my own business from Hong Kong and China to Vietnam and other places in Southeast Asia,” he says. “HAFFA has 321 members and most of the members have offices in mainland China and some have offices elsewhere in Asia, but we are still a Hong Kong-based association. We discuss the issues with the government, but at the same time we still have to plan for own businesses, we have to put our eggs in different baskets.”
HONG KONG Third runway and new bridge proving a cause for concern
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he latest and probably most obvious issue is that of the much-delayed third runway which will increasingly dog the airport for the next six years until completion in 2024. Views are divergent on just how significant the impact will be. For many, including ABC’s Joanna Li, the lack of slots between now and 2024 will restrict expansion of carriers’ services at the airport and this will be the key hurdle in the short term. Li doesn’t mince her words despite being a supporter of all the efforts that made Hong Kong’s air freight sector what it is today. “In the past few years, logistics in Hong Kong also encountered problems with laggard public investment into the aviation sector, which slowed down the process of reconstruction of airport facilities and thwarted the progress.” “Due to airport congestion, many carriers are restricted by existing slots and are not able to introduce additional flights, thus being forced to look at other options, especially Chinese airports, in order to accommodate emerging export flows in the interests’ of their customers.
A shift to secondary gateways?
“With the third runway still under construction in the next few years, some airlines may shift much of their operation to other secondary gateways in the region, and may never return,” she warns ominously. Indeed, she is not alone in this concern. As HAFFA’s Brian Wu highlights, by the time the new runway is completed in 2024 substantial flights will have already been arranged out of Shenzhen, Guangzhou, Zhuhai and Macau. Wu is clear on the point that Hong Kong will face a stiff competition in the next decade, not only on the hardware side from airports in China, but the software side as well, in terms of people, “and that worries me a lot,” he says. Bras on the other hand, anticipates only a “slight” impact on the airfreight market. He holds out hope, saying the Hong Kong aviation authorities are looking at approving more flights at a time when the airport’s two runways are currently operating at 98.2 per cent of their annual capacity of 420,000 flights. This will likely have a spin-off effect says Vikram Singh: “After all direct routes are optimised it will start to provide an upward pressure on yields. This will result in short haul optimisation towards other regional hubs,” he says. On the ground handling side of the equation, Mark Whitehead says: “In the short term, we have to work around the slot constraints which are forcing freighter operations into a compressed night-time window that puts pressure on our manpower and resources. If overall capacity were to become a greater issue, we always have the option to use Hong Kong Air Cargo Industry Services (Hacis) to provide road feeder service links to other nearby airports.”
Bridge over troubled water?
Views differ on what the 55km Hong Kong–Zhuhai–Macau Bridge will mean for Hong Kong’s air cargo business. Sander Bras notes the development is likely a plus for the logistics sector in general as transit times from Zhuhai/Guangxi are cut by several hours. Whitehead agrees saying the bridge will impact many aspects of logistics operations and on all modes of transportation. “We cannot yet be certain how manufacturers and logistics companies will respond to the opportunities presented by faster and lower-cost transportation across the whole Pearl River Delta.” Wu doesn’t anticipate much new business, but more a case of, “the same dinner, but a different way of eating it.” Crucial to the equation is how the mainland Chinese authorities structure policies around it. “We’ve met them a few times already and they hope that we can support them in terms of the cargo from the factories in the Pearl River Delta Area.” While saying the bridge should increase cargo volumes to Hong Kong, Whitehead acknowledges that it will likely as a result add to the strain on capacity at HKIA. “But if that proves to be the case, then Hacis is ideally placed to act as a temporary balancing mechanism that can quickly and cost-effectively move cargo to other airports where there is capacity. We are used to facing and resolving challenges: We see problems as opportunities,” he says in what surely is the hallmark of Hong Kong’s success over the decades.
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GERMANY
Growth remains on the agenda after strong end to 2017
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he end of 2017 made welcome reading for the German airfreight sector, discovers David Craik. International Air Transport Association (IATA) figures showed European airlines posted a 10.3 per cent increase in freight demand in September and a 6.4 per cent rise in October. IATA said that one of the key drivers behind the figures – with both months coming in above the five-year average of 4.9 per cent growth – was a strong performance by European exporters, most notably in Germany. Latest figures from the German Federal Statistics Office reveal that industrial output in Germany grew by 3.4 per cent in November, the best performance since September 2009. Exports rose 4.1 per cent during the month with domestic demand pushing up imports by 2.3 per cent. The economic uplift has helped boost performance at both German airports and airlines. ADV, the German airports association, says there was an 8.2 per cent cargo volume increase in November. At Frankfurt Airport (pictured) cargo throughput climbed by 4.9 per cent in November to over 200,000 tonnes. It is up by 4.3 per cent in 2017 to date. Fraport hailed the “quite positive” economic situation in Germany and elsewhere with global production increasing at its fastest rate since 2010. “This speeds up the tempo of international trade,” it says. “The eurozone industrial sector is experiencing the fastest growth since the dotcom boom more than 17 years ago. German industry is expanding at record speed.” Traffic to and from the USA in November was up by 11.7 per cent with the weak euro compared to the US dollar having a positive effect on the flow of goods Stateside. Latin America was also boosted by the recovery in the Brazilian economy. Fraport noted continued growth to
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and from Moscow, though at a slower rate, and Middle East traffic aided by more freighter aircraft connections. Traffic to Africa was growing at double-digit with the Far East such as India and Japan also rising. The airport was also buoyed by the announcement in November that Lufthansa Cargo – its biggest freight user by volume - and Fraport Ground Services had signed an eight-year extension to its ground handling deal to 2025. Lufthansa Cargo has also had a strong 2017. As of the most recent figures to November the group achieved a 9.4 per cent year on year increase in cargo traffic. The airline says the biggest demand was driven by Mexico and Brazil as well as the USA, China and Japan. It had also been helped by innovations such as the use of new Va-Q-tainers which is helping grow its pharmaceuticals business. “These high-performance thermal containers can be rented and
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used for cool passive shipments,” explains Lufthansa. “Our customers can set these to three different temperature ranges and maintain these for up to 120 hours.” Lufthansa hopes that growth will continue in 2018 boosted by a digitisation drive to increase its “eBooking rate and the use of E-awb”. Cargolux is another major freight player at Frankfurt. It is its largest station in Germany outmuscling its other hubs such as Stuttgart. According to Cargolux Airlines International vice president of sales, Chris Nielen (pictured left), it outperformed the German market in terms of volumes. “We saw double-digit growth in Germany,” he explains. “It’s been a very strong and positive year with our biggest trade lanes into China, the US and South America. The global economy is very strong. In terms of products we have seen demand for machinery, automotive parts and cars as well as hi-tech goods out of Germany. The German economy is also booming and because unemployment there is low people are spending thus helping import volumes. E-commerce has been big for us this year.” Cargolux is the second biggest freight airline in Germany but has no flights out or into the country. It trucks all cargo coming into Germany to its home nation Luxembourg. Nielen believes this has been advantageous over the last couple of years as pilot and ground handling strikes impact German airlines and airports. “Our operations in Luxembourg are by contrast solid and strong and we can offer our customers a great service on the ground. It is a difference and gives us a clear advantage,” he states. Nielen says Cargolux has brought some extra capacity into the German freight market to meet the increasing demand and expects it to continue in 2018 “The market remains strong and more growth is projected. It might ease somewhat but it will still remain solid,” he says. “Private consumption in Germany is likely to continue and middle class spending in China is also growing. We also expect the economies of South America to continue recovering.”
GERMANY
Paderborn and Munich volumes keep rising
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aderborn-Lippstadt Airport, situated in one of Germany’s strongest economic regions at the border of North Rhine-Westphalia, Hesse and Lower Saxony, is also keen to strengthen its customer relationships from a lower base. “We see that more than in other industries air cargo business is a people business,” explains the airport. “So, for us, as a relatively new player in the market, it is still a long road to bring our airport and the benefits we offer onto the agenda of potential customers.” Paderborn says those benefits include unrestricted air traffic – so operations are not slot-oriented – quick turnaround times, no night flight restrictions and its own fuel supply. It is also a regulated agent for the transport of air freight by truck. Lufthansa Cargo has its own station at the airport where goods are processed and sealed and delivered by truck to Frankfurt.
Win business from bigger hubs
Paderborn is aiming to win business from bigger hubs in 2018. “In the past we registered an increase in air freight transport volumes which had previously been handled at other locations,” it says. “That is why two years ago we decided to strengthen our air freight sector as well as our service portfolio. As a result, today we have well trained staff and offer high-quality handling of various types of cargo. The near future will definitely see more air freight being transported from Paderborn via truck. “But we would also like to expand in freight movement by air and offer an attractive cargo service for our customers. Experience has taught us that charter airlines realise that urgent deliveries and special cargo projects can be realised a lot more smoothly via our airport than at the big hubs.” Munich Airport has had a stellar year. In the first nine months
“Infrastructure is the key to growth,” Heinelt says. “You have to keep investing in it and allow customers to grow with you.” In terms of challenges Heinelt says protectionism around international flight rights limits its and other airports cargo growth.
Are alliances the solution?
with the introduction of automated solutions for stacker systems and an extension of its road feeder services area. This will be fitted with intelligent slot and stock management systems to reduce waiting times. It is also intending to triple warehousing space for its customers such as B2C express carriers.
He believes airline alliances are a solution as are agreements with airports such as recently sealing closer ties with airport Moscow Domodedovo. The sister airport partnership will include knowledge transfer of employees and managers and an exchange of ideas on issues such as security, digitalisation and terminal planning. It is Munich’s seventh sister airport with others including Denver and Singapore. So, what of 2018? Can Munich achieve another record? “It is possible but it will certainly be another good year,” he says. Germany, it can be safely said, is soaring.
Stellar year for Munich
of 2017 freight volumes were up by ten per cent to 270,000 tonnes. “We have had a record year,” says director of traffic development, Markus Heinelt. “Our cargo performance has been outstanding and airlines and freight forwarders keep telling us that they haven’t seen demand like this ever before. “The world economy is booming, and Germany well known for its engineering and automotive industries is benefiting. Here in Munich we are especially doing well as BMW, Daimler and Audi play a big role in the city.”
High load factors
Volumes have also been boosted by Russian freighter operator AirBridgeCargo adding an extra Boeing 747-8F flight and belly cargo benefiting from high load factors and 330 weekly long-haul departures. Heinelt expects capacity to increase further in 2018. This will be boosted by Lufthansa carrying out more Munich to Chicago flights and moving more of its Airbus fleet to Munich, as well as re-starting its Munich to Singapore route. He adds: “We are also seeing more and more logistics companies locate in Munich as they realise that the automotive and hi-tech volumes, through Siemens, are moving through here.
Mix of belly and freighters
They appreciate our strong mix of belly and freighter capacity and our infrastructure with its very fast processes and customised services. We also don’t have any problems with truck jams here at Munich and that is important for our customers.” Munich is further improving its handling and storage services
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DRONES Workhorse gains FAA experiment certificate for SureFly
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orkhorse Group has received an Experimental Airworthiness Certificate from the Federal Aviation Administration (FAA) to conduct test flights of its SureFly electric hybrid helicopter. The SureFly is the world’s first electric hybrid helicopter, featuring a drone-like octocopter design, a two-person, 400-pound capacity and a range of approximately 70 miles. The technology company that created the SureFly says the hybrid design includes a battery pack, management systems and controls utilised in its commercialised range extended battery electric trucks. The SureFly’s combustion engine generates electricity and a parallel battery pack offers a backup power source, eliminating the need for larger batteries or long battery charging periods between flights. The aircraft is piloted by joystick in a similar fashion to flying a drone. It is expected to be capable of carrying a pilot and passenger or cargo up to 70 miles, and after a quick refuelling stop, will be ready for the next hop. Early models will be pilot-operated, and the intention is that later models will be capable of autonomous flight. Anticipated
markets include precision agriculture, surveillance, aerial inspection, emergency response tasks, urban commuting and various military applications. Workhorse is working towards full FAA certification in late 2019 and the expected price will be approximately $200,000.
Workhorse Group has been experimenting with cargo delivery drones, having carried out tests with UPS last year. In February 2017 the two companies successfully tested a drone that launches from the top of a UPS package car, autonomously delivers a package to a home and then returns to the vehicle while the delivery driver continues along the route to make a separate delivery. The test was conducted in Lithia, Florida and at the time, UPS said using drones could offer considerable fuel savings in rural areas where deliveries can be miles apart. During the test, the drone made one delivery while the driver continued down the road to make another, and UPS said this could be the role of drones in the future. The Workhorse HorseFly UAV Delivery system was used for the test. It docks on the roof of the delivery truck, and a cage suspended beneath the drone extends through a hatch into the truck. A UPS driver loaded a package into the cage and pressed a button on the touch screen, sending the drone on a preset autonomous route to an address. The battery-powered HorseFly drone recharges while it is docked, has a 30-minute flight time and can carry a package weighing up to 10 pounds.
DDC complies with conditions for testing
TRANSPORT Canada has accepted the Declaration of Compliance for Drone Delivery Canada (DDC) to use its X1000 Sparrow cargo delivery drone. The sparrow is the first cargo delivery drone of its kind to be accepted under the Transport Canada Compliant UAS [unmanned aircraft system] programme. This is the first of three regulatory components to the Transport Canada Compliant UAS Operator programme, and mandatory for a Compliant UAS Operator Special Flight Operations Certificate. The company says this allows it to move forward to becoming a Compliant UAS Operator with the intention of fulfilling the other two approvals in the first quarter of 2018. The required documentation has been submitted and DDC says it is confident of gaining approval for the remaining steps. DDC chief executive officer, Tony Di Benedetto says: “Achieving Compliant UAV Status is the first of three very critical steps in DDC achieving its Compliant Operator Status Certificate. We anticipate obtaining the balance of the approvals in early Q1 2018. We are very thankful to the efforts of the Canadian Government and Transport Canada in creating a favourable environment to grow innovative technology and position Canada as a leader in commercial drone delivery technology on a global scale.” Compliant UAS Operator status is the first requirement for being permitted to conduct Beyond Visual Line-of-Sight operations. DDC was granted permission by Transport Canada to test its drone delivery technology in northern regions of Canada in November 2017, and has completed a number of flights in the Moose Factory and Moosonee communities of Ontario. The flights have covered a distance of up to 2.1 kilometres all while maintaining visual contact. The flights achieved a 100 per cent success rate of flying in some of Canada’s most extreme weather conditions including strong winds, snow and cold temperatures. The drone transported mail, food, medical supplies and general cargo in the test flights in the Moose Cree area.
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