ACW 25th september 17 by Azura International

GLOBAL A

MANAGEMENT

WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM

FREIGH

The weekly newspaper for air cargo professionals Volume: 20 Issue: 38

25 September 2017

Q1 cyber attack on TNT Express costs FedEx $300m

edEx has reported that the 27 June NotPetya virus cyber attack on TNT Express slashed $300 million from its quarterly profit, while Hurricane Harvey in the US also impacted its operations and figures. FedEx said that the worldwide operations of TNT Express were “significantly affected” during the first quarter (Q1) cyber attack, but most TNT services resumed during the quarter and all TNT Express critical operational systems have been restored since. However, the integrator added that TNT Express volume, revenue and profit still remain below previous levels. FedEx revealed the news in its Q1 financial figures, for the quarter ending on 31 August where it reported that net income for Q1 was $596 million, down more than 16 per cent from last year’s $715 million in the same quarter. Overall revenue rose to $15.3 billion from the $14.7 billion which was achieved in Q1 last year. FedEx chairman and chief executive officer, Frederick Smith (pictured left) says: “The first quarter posed significant

AID FLOWN TO GUADELOUPE BY CARGOLOGICAIR HURRICANE RELIEF FLIGHTS KEEPING ACS BUSY IN USA

operational challenges due to the TNT Express cyber attack and Hurricane Harvey, and I want to thank our team members for their extraordinary dedication and performance. “We are confident of our prospects for longterm profitable growth, and we reaffirm our commitment to improve operating income at the FedEx Express segment by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017.” FedEx also said higher shipping rates across its operating units were more than offset by the cyber attack, costs related to the integration of its TNT unit, higher costs at its FedEx ground, and a higher tax rate.

As for the future, the company is lowering its fiscal 2018 forecast due to the estimated full-year impacts of the TNT Express cyber attack. Executive vice president and chief financial officer, Alan Graf explains: “The impact of the cyber attack on TNT Express and lower-than-expected results at FedEx Ground reduced our first quarter earnings. “We are currently executing plans to mitigate the full-year impact of these issues.” FedEx also announced on Monday, 18 September that it will raise its Express, Ground, and Home Delivery shipping rates by an average of 4.9 per cent from 1 January next year.

Celebi Delhi Cargo and Astral Aviation CEOs join TIACA’s board The International Air Cargo Association (TIACA) is expanding its global reach by welcoming the chief executive officer’s (CEO) of Celebi Delhi Cargo and Astral Aviation to the board of directors. Ramesh Mamidala (pictured right) is CEO of Celebi Delhi Cargo Terminal Management, and has over 22 years of industry experience, having previously worked for Qatar Airways and Emirates SkyCargo. Astral Aviation CEO, Sanjeev Gadhia (left) founded the carrier in 2000, which has grown to become the largest private cargo airline in Eastern Africa, boasting an expansive fleet. He is vice chairman of

ACI: VOLUMES TO RISE 4.7% OVER THE NEXT 2 YEARS

the Cargo Task Force of the African Airlines Association (AFRAA). TIACA secretary general, Vladimir Zubkov says both will help to expand links with the regions, which are fast developing and important for the air cargo industry – Asia and Africa. Mamidala says the Indian air cargo market is seeing one of the fastest growth rates in the world and has significant potential. He hopes TIACA will be able to reach out to industry players in India and get them to join TIACA. He believes the role will give him an opportunity to integrate the Indian airfreight industry with the global market through TIACA. Gadhia says it is a privilege to join the board he has been a member of TIACA for the past 17 years, and he is the only member from Africa. He says: “My appointment will enable AFRAA members and especially the Cargo Task Force,

to embrace the opportunities that TIACA will bring aboard in areas such as networking, education and training, industry relations, and participation in TIACA cargo events as a group.” Gadhia adds that for TIACA, his appointment will enable the organization to reach out to the air cargo community of Africa and assist the AFRAA in its lobbying efforts to a global level. He plans to promote TIACA’s air cargo development program to African airlines and foster greater participation from carriers at TIACA events.

QATAR CHARTER LOADED WITH GARMENTS LANDS

New Pharma.Aero members added PHARMA.Aero has welcomed three new members in the shape of forwarder Expeditors, container specialist Envirotainer and Montevideo (MVD) Free Airport. This brings the membership to 18 to the organization, which was launched in May last year, and founded by Brussels Airport and Miami International Airport. MVD becomes the 7th gateway to become a member, joining Changi Airport, Mumbai International Airport, Sharjah International Airport and EuroAirport Basel. Other members are Singapore Airlines, Brussels Airlines Cargo, Brinks, Pfizer, Johnson and Johnson, Merck Sharp & Dohme, DHL Temperature Management Solutions, 4Advice and e-CARGOWARE. Pharma.Aero chairman, Nathan De Valck says: “This large scope allows us to tackle a broad range of improvement projects in the Pharma.Aero working groups. “Together with these air cargo stakeholders, we will develop global pharmaceutical trade lanes, implement best practices and share market knowledge and expertise.” Pharma.Aero was launched last year to create pharma trade lanes with standardised processes across the air cargo supply chain. Every member has to be IATA CEIV Pharma certified.

aircargoweek.com

NEWSWEEK ACI: volumes to rise 7.4% over the next two years

he Airports Council International (ACI) forecasts in its latest edition of the World Airport Traffic Report that air cargo volumes will rise at rates averaging 7.4 per cent worldwide for the rest of the year and into 2018. ACI says over a two-year period, this growth will add up to an estimated 16.9 million additional tonnes by December 2018, of which almost 50 per cent will be handled in Asia-Pacific, increasing the region’s total market share to above 39 per cent. The association notes notwithstanding, the industry must be “cognizant of the fact that there are several impediments that could curtail the continued rise in demand”. Specifically, it explains these are related to geo-political unrest, terrorism and threats to security in certain parts of the world. Physical capacity considerations and potential bottlenecks in air transport infrastructure also pose challenges in accommodating future air transport demand. Finally, protectionist policies that retreat from further economic integration and air transport liberalisation could have adverse contractionary effect on the air transport industry. ACI World director general, Angela Gittens (pictured right) says: “In this new era of geopolitical strife and terror, coupled with the

wave of protectionist rhetoric that has swept many major economies, clear downside risks have revealed themselves as we end 2017 and approach 2018. “Even with the prevailing strength in consumer confidence across major economies and relatively sound economic fundamentals as our backdrop, cautious optimism should be the prevailing sentiment in our industry.” In the World Airport Traffic Report, the association also says air cargo markets experienced a revival in the second half of 2016 to surpass 110 million tonnes by the end of the year and achieving growth of four per cent. And on a year-to-date basis, volumes, point to estimates of an increase of over eight per cent in volumes for the first half of 2017. The World Airport Traffic Report covers more than 2,400 airports in 175 countries across the globe.

ACMI 747F deal for Atlas

ATLAS Air Worldwide has announced the aircraft, crew, maintenance and insurance (ACMI) placement of a Boeing 747-400 Freighter with DHL Global Forwarding. The 747-400F will be operated by Atlas Air, and fly on behalf of DHL Global Forwarding through an ACMI agreement. The new service will commence this month and serve routes between the US, Europe, and Asia. Atlas Air Worldwide president and chief executive officer, William J. Flynn says: “DHL Global Forwarding is a leading service provider in the global airfreight industry, and we are delighted that they have chosen to partner with Atlas Air as they continue to innovate and develop new solutions for their customers. “This agreement is a further testament to our strong focus on service quality and value-added solutions for our customers.” DHL Global Forwarding executive vice president for global airfreight, Ingo-Alexander Rahn adds it will provide its customers with a “unique dedicated aircraft solution”. In June, Atlas Air also announced the ACMI placement of a B747-400F with Yangtze River Airlines while in May, it tiedup the placement of two B747-8Fs into ACMI service with Hong Kong carrier Cathay Pacific Cargo.

Intrepid leases 747F with ABC

INTREPID Aviation acquired a new Boeing 747-8 Freighter from the Boeing Company on 15 September, which has been placed on long-term lease with AirBridgeCargo Airlines (ABC). This is the second of two new 747-8F aircraft that the privately owned commercial aircraft lessor acquired from Boeing and leased to ABC this year. Intrepid says the delivery is in keeping with ABC’s plan to become an all 747-8F operator over the years to come. ABC has posted a strong growth trajectory in 2017, with year-on-year cargo volume up over 15 per cent through July.

ACW 25 SEPTEMBER 2017

aircargoweek.com

NEWS WEEK Volumes continue to soar into and out of Hong Kong

argo volumes at Hong Kong International Airport (HKIA) continue to grow at a double-digit rate, soaring 10.1 per cent in August. HKIA handled 412,000 tonnes of cargo in August, with exports increasing 12 per cent, the main driver of growth, while transhipments were also up 10 per cent. Amongst key trading regions Europe and Southeast Asia increased the most significantly. August was the fourth month in a row to register double-digit year-on-year growth, following a 12.9 per cent increase in May to 409,000 tonnes, 11.4 per cent in June to 410,000 tonnes, and 11 per cent in July to 422,000 tonnes. Cargo volumes increased 11.1 per cent in the first eight months of 2017 to 3.1 million tonnes and by 10.1 per cent to 4.8 million tonnes on a rolling 12-month basis. Hong Kong carrier, Cathay Pacific Airways carried 172,253 tonnes of cargo and mail in August, an increase of 12 per cent compared to the same month last year. This figure represents the combined traffic of Cathay Pacific and Cathay Dragon. The cargo and mail load factor rose 2.2 percentage points to 65.5 per cent. Capacity, measured in available cargo/mail tonne kilometres, was up 7.5 per cent while cargo and mail revenue

tonne kilometres (RTKs) increased by 11.3 per cent. In the first eight months of 2017, tonnage rose by 11.9 per cent to 1.3 million tonnes against a 3.3 per cent increase in capacity and a 9.5 per cent increase in RTKs. Cathay Pacific director for commercial and cargo, Ronald Lam says: “Demand out of our key markets remained strong; tonnage growth was well ahead of capacity growth, with both inbound and outbound sectors sustaining high levels. “Overall, our cargo yield sustained an improving trend. Looking ahead, we plan to operate our maximum freighter schedule in order to match the forecast surge in demand from various new product launches.”

WORLDNEWS SINGAPORE Changi Airport registered a 10.7 per cent increase in airfreight throughput to 180,590 tonnes in August, up on the 163,100 tonnes in the same month in 2016. In the first eight months of 2017, the gateway has handled 1.37 million tonnes, a 7.9 per cent rise on the same period last year. Changi has grown its freight volumes in every month this year and August is the fourth time this year it has posted a double-digit tonnage increase. PANALPINA has launched a new customer portal, which is says addresses many of the logistics industry’s “most pressing needs”. The freight forwarder says it is intent on steering industry into the ‘Digital Age’ by using the newest technologies to create an innovative, endto-end digital environment for its customers. The company believes the portal will shape and define tomorrow’s interactions and interfaces between customers and logistics service providers.

July surge of 6.7% at Incheon

FREIGHT at Incheon International Airport grew 6.7 per cent in July to 248,905 tonnes, with a large rise in inbound traffic. International inbound volumes were up 9.5 per cent to 121,455 tonnes while outbound traffic rose 3.9 per cent to 118,941 tonnes, with transhipments also rising 11.2 per cent to 95,056 tonnes. A major driver of growth was rising demand for semiconductor production equipment and IT industry parts on the back of the IT industry booming. Most regions of the world saw growth, with Northeast Asia leading the way at 11 per cent to 26,855 tonnes, followed by Southeast Asia, up 10.7 per cent to 39,725 tonnes. China dipped 2.2 per cent to 43,599 tonnes due to more stringent steps taken for customs clearance by Chinese authorities in connection with the deployment of THAAD in South Korea, and the Middle East was also down by 3.4 per cent to 5,900 tonnes.

Air and sea plan in Belgium

AIR Cargo Belgium and NxtPort are to work together on multimodal solutions to connect air and sea cargo transport. Companies transporting freight by sea frequently use airfreight as well, and much of the logistics including customs formalities are the same however the freight is transported, and the partnership is designed to make transporting cargo at the harbour and airport more efficient and less expensive. NxtPort brings the harbour community together around a data platform that stimulates logistics and technology innovation in Flemish ports, while Air Cargo Belgium sees BRUcargo pioneering with the digital platform BRUcloud. NxtPort chief executive officer, Daniel Lievens says: “Many of the logistics processes are largely the same, such as customs procedures for goods that must travel the airport and harbours for import and export. If we find ways to make the process more efficient and less time-intensive, everyone wins.” Air Cargo Belgium chairman, Steven Polmans says: “If we share our knowledge and expertise through an innovative platform, we create a bridge between the sea and air transport industries. Our collaboration will strengthen Flanders’ position as a regional leader in innovation and logistics. “We want to work towards offering more support and a larger market for digital solutions, and involve other links to the logistics chain.“ He adds NxtPort and Air Cargo Belgium have held constructive talks with customs authorities, who are likely to want to find ways to simplify their own procedures in cooperation with industry.

aircargoweek.com

ACW 25 SEPTEMBER 2017

NEWSWEEK Repair network expansion for Unilode

nilode Aviation Solutions has further expanded its global repair network by opening a new FAA Part 145 certified repair centre at Cincinnati/Northern Kentucky Airport. This new facility will primarily support and expand the ULD firm’s partnership with DHL, specifically for ULD repairs and assembly, in addition to supporting Unilode’s existing ULD management and repair customers. Unilode’s South American network will be further strengthened by the opening of a repair centre in São Paulo, Brazil, within the next couple of months. This new facility, along with Unilode’s recently opened FAA Part 145 certified service centre in Santiago de Chile, will mainly serve LATAM Airlines – Unilode’s ULD management customer. Unilode also plans to open a repair centre in Jeddah, Saudi Arabia, before the end of this year. This facility will mainly focus on supporting Saudia Airlines, Unilode’s ULD management customer, with its ULD management and repair needs. Chief executive officer, Benoît Dumont says: “The opening of our repair facility at CVG is an excellent example to demonstrate

the value of being a strategic partner for our customers as we have set up this facility on specific request of our long-established partner DHL who needed support for ULD repair services at their hub in Cincinnati. “Operating our own global repair and maintenance network at key airports helps our customers to reduce repair turnaround times as well as carbon footprint and fuel costs, and with expansion of our repair network in the Americas and in the Middle East we are able to serve our current and future ULD management and ULD and galley cart repair customers even better.” DHL Express global network equipment director, Frank Steinert explains: “The Cincinnati/Northern Kentucky Airport is a strategic place in the global DHL Express network. “After working with Unilode in different locations in the US and our global network, it was a logical step to ask them to support our rapidly growing business at Cincinnati Airport. “The added repair capacity helps us to concentrate ULD repair activities close to where our operations are and due to our reduced transportation needs we are able to save time, cut CO2 emissions and consequently, save cost.”

New ACCF members AIR Cargo Community Frankfurt (ACCF) has welcomed a further six new members. A. hartrodt, AF Logistik, Bolloré, and Hermes, BDA Logistics Innovation and University RheinMain in Wiesbaden have joined. They were all welcomed at the group’s general meeting on 13 September and executive director, Joachim von Winning says: “The newest additions to our community show that the close cooperation between all players in the airfreight supply chain at Frankfurt Airport has been recognised as attractive and important. “Within the community we push this cooperation forward on many levels, for example with regard to digitalisation, or to promote a mutual understanding for large parts of the supply chain at Frankfurt Airport. In doing so, we ensure the appeal of our location as Europe’s leading cargo hub.” Members want to shape the transportation processes at Frankfurt Airport. Chairman of the executive board of the community, Soeren Stark says: “We have a lot of intersections regarding the topics and challenges that concern us here at Frankfurt Airport. And in these areas we will work on pushing things forward.”

Indian job for Mondial

MONDIAL Airline Services – the Austrian office of the Global GSA Group – has been appointed as the new general sales agent (GSA) of Air India in Austria. Air India currently flies three times a week utilising a Boeing 787 Dreamliner from Vienna to Delhi. Mondial Airline Services managing director, Aytekin Saray says: “Air India is a fast growing airline with tremendous opportunities. “We are already familiar with the Air India product in Germany and look forward to expanding our success to the Austrian market.”

ACW 25 SEPTEMBER 2017

aircargoweek.com

NEWS WEEK

Aid flown to Guadeloupe by Antonov and CargoLogicAir

ntonov Airlines has delivered 32 portable generators to hurricane-stricken Guadeloupe for EDF Group using one of its seven AN-124-100s. The generators, which weighed a total of 105 tonnes, are needed to provide electricity to France’s Overseas Region of Guadeloupe and Overseas Collectivity of Saint Martin, both of which were severely affected by Hurricane Irma. The 32 generators came in three different sizes between 2.4 and four tonnes, and were moved from Chateauroux in France to Pointe-a-Pitre in Guadeloupe in under 24 hours. Antonov Airlines director, Paul Furlonger (pictured below) says the aircraft was in Cairns, Australia at the time of the charter, which meant having to respond promptly to move it halfway around the world. He says: “The AN-124-100s’ unique onboard crane system, which has a lift capacity of 30 tonnes, allowed for a safe loading and unloading process, without the need for a special ground infrastructure at the airport.” He adds: “This is the first in a series of

Antonov Airlines flights that will deliver humanitarian and relief cargo to the Caribbean from the governments of France, the Netherlands, and the United Kingdom.” CargoLogicAir has operated two flights carrying nearly 200 tonnes of humanitarian goods to hurricane-affected areas devas-

tated by Hurricane Irma. Both flights were operated using Boeing 747-400 Freighters on behalf of the French government, with the first flight on 13 September from Paris Vatry Airport to Pointe-a-Pitre Le Raizet Airport, followed by a second one on 16 September. The first flight from France departed within 48 hours of the initial enquiry being received. CargoLogicAir chief executive officer, Dmitry Grishin (pictured below) says: “We may still be a relatively new name in the world of aviation but our highly experienced team of air logistics professionals have many years’ expertise in the airline industry, including providing a fast response to such situations where humanitarian relief is urgently needed. We anticipate operating several more flights in the coming days.” Hurricane Irma was the second major hurricane of the 2017 Atlantic hurricane season and has caused widespread damage across a number of Caribbean islands and in Florida, and causing at least 84 deaths.

Irma airlift gets underway

OPERATION Airlift Irma has got underway bringing humanitarian aid to those in need across hurricane plagued Caribbean communities. Disaster relief charities Airlink, LIFT, Patient Airlift Services and Rescue Global have teamed up with commercial air carriers, general aviation aircraft and dozens of aid organisations to deliver food, medical supplies, emergency shelter and equipment providing access to clean water, sanitation, electricity and telecommunications. The two-stage ‘air bridge’ will transport emergency supplies between mainland US and staging areas in San Juan and St. Kitts, where smaller aircraft will carry the supplies to several islands. The operation is expected to run for between two and six weeks, with the first flight planned to leave Miami for San Juan soon after Hurricane Maria moves beyond the region. The operation’s needs-based model will use on-theground assessments to determine the final destinations of the cargo.

Cool service for Jettainer

JETTAINER is expanding its product portfolio and is now offering a special service for temperature-controlled unit load devices (ULD). This new service called ‘Cool Management’ includes the leasing, management and positioning as well as monitoring during the whole process and can be booked in a variety of models to suit differing needs. Jettainer says through the service it is facilitating this complex process, which includes the coordination of many parties, for their customers. The ULD management firm which is a subsidiary of Lufthansa, says it will increase efficiency between all involved parties of the supply chain. In addition, it reduces the costs that can arise, for example through positioning, or overcapacity. Jettainer head of marketing and PR, Martin Kraemer says: “We are transferring our long-standing know how of worldwide ULD management to our new Cool Management service in the area of temperature-sensitive transports. “This way, we are serving our customers’ need for an easy, reliable organization of these transports and are simultaneously closing the gap in the management of complete ULD fleets.” Jettainer managing director, Carsten Hernig launched the new service at the Air Cargo Handling Conference in Budapest on Wednesday, 20 September.

aircargoweek.com

ACW 25 SEPTEMBER 2017

FRANCE The Western Mediterranean’s express hub remains stable

argo volumes have remained stable at Marseille Provence Airport, cargo manager Jean-Marc Boutigny says. The airport handled 36,896 tonnes of flown airfreight between January and the end of August, an improvement of 0.6 per cent on 2016. This follows growth of 7.1 per cent in 2016, when it handled 55,900 tonnes. Express increased 7.8 per cent thanks to DHL and Chronopost reinforcing activities. In the airport’s 2016 annual results it said Marseille maintained its place as the top of the podium of French regional airports and the Western Mediterranean region for express freight. Boutigny expects perishable volumes to grow with new services, saying: “Thanks to the arrival of French airline Air Austral mid of October who

will operate two weekly B777 on a Marseille-La Réunion island-Marseille route, we expect to develop our perishable volume by importing more fruits and vegetables and exporting more oysters and seafood.” Express cargo continues to prove important, Boutigny explains: “In August 2017, DHL rented 1200 square metres more to be able to handle more quickly and easily its growing express volume.” The main imports at Marseille are drilling parts from Texas, garments from China and seafood from Northern Africa. Exports mainly consist of helicopter spare parts to the Americas and Asia, vaccines and medicines to Algeria and oil supplies to Algeria. The main markets continue to be Europe, Northern Africa, China and USA. The UK’s departure from the European

Union, dubbed ‘Brexit’, is an area of uncertainty, and could cause problems across Europe. Boutigny comments: “UK is an important

market for us (import and export), and customs clearance charges and delays will not contribute to facilitate the business.”

Bollore experiences shift to air

FRENCH supply chain management company, Bollore Logistics says the increase in freight volumes it has experienced so far this year was initially boosted in March by the shortage of Eastbound Europe to Asia ocean freight capacity. According to Bollore’s airfreight director, Claude Picciotto this caused volume to move over from sea to air particularly on high value shipments such as aerospace parts. Due to airlines not offering additional capacity this meant airfreight rates rose by as much as 30 per cent. “This has now quietened down and we had a much flatter April and May,” he states. However, it has improved in June and July this time helped by surging demand from Qatar as it coped with political and economic pressure from Saudi Arabia and other Gulf states. “We are seeing huge demand from Qatar for food, pharmaceuticals, raw materials and consumer goods. These are big ship-

ACW 25 SEPTEMBER 2017

aircargoweek.com

ments,” Picciotto explains. “Every year something happens, an exceptional phenomenon, which you had not expected or planned for at the beginning of the year. You never know what it might be.” Picciotto expects freight demand generally to keep increasing in the months ahead. He believes airlines will not add capacity in the third and fourth quarters and expects rates to increase as a result. Bollore has also been working on gaining International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) in Pharmaceutical Logistics at stations around the world. Bollore Logistics Melbourne in Australia gained certification this month at its 10,000 sqm facility located in the Melbourne Airport Business Park. Melbourne was the latest location to be awarded IATA CEIV, following sites including Singapore in March this year, and Paris Charles de Gaulle Airport in January. Bollore Logistics had already received IATA CEIV in Brussels, Frankfurt and Lisbon.

FRANCE

ADP increases international airport investments

eroports de Paris is increasing its international presence with investments in Turkey and in Africa. The parent company of Groupe ADP, which develops and manages airports including Paris Charles de Gaulle (pictured), Paris Orly and Paris Le Bourget, finalised the acquisition of a further 8.12 per cent in the share capital worth $160 million of TAV Airports in July, bringing Groupe ADP’s stake up to 46.12 per cent. Groupe ADP has created ADP International as an entity to manage international activities, and has opened two regional offices in New York and Hong Kong. The subsidiary’s ambition is to deploy Groupe ADP’s expertise and innovations to serve airports around the world. In July, Aeroports de Paris chairman and chief executive officer (CEO), Augustin de Romanet said: “Thanks to the bolstering of its partnership with TAV Airports Group, and its new international organisation, Groupe ADP is today better able to seize new opportunities for growth and to optimise the management of its portfolio of shareholdings abroad.” Aeroports de Paris also sold its 49 per cent stake in TAV Investment, parent company of TAV Construction to Sens Proje Gelistirme ve Yatirim and Tepe Insaat Sanayi for €9 million on 20 July.

that the development projects are completed and the airports are brought up to required standards. The concession company has been overseeing operations at Ivato and Fascene as part of a 28 year contract signed with the government of the Republic of Madagascar on 23 December 2016. Ravinala Airports was formed by Groupe ADP with a share-

holding of 35 per cent through its subsidiary ADP Management, Bouygues group (20 per cent) through Bouygues Batiment International, and Colas Madagascar and Meridiam at 45 per cent. Groupe ADP also renewed its cooperation agreement with Schiphol Group and Incheon International Airport Corporation in July for another four years. The first agreement was signed in July 2011 and renewed in 2014, and sought to improve the quality of customer service and provided for the exchange of good practices in numerous areas including cargo. Numerous meetings were held in Paris, Amsterdam and Seoul allowing the teams involved to discuss their respective challenges and each other’s best practices, and the partners agreed to renew the strategic partnership for another four years by extending it into new areas including innovation and digital technology. The agreement was signed at the headquarters of Incheon International Airport Corporation in the presence of Groupe ADP deputy CEO, Edward Arkwright, Schiphol Group president and CEO, Jos Nijhuis and Incheon International Airport Corporation president and CEO, Il-Young Chung.

Funding finalised in Africa

Over in Africa, Ravinala Airports, the concession company for Antananarivo and Nosy Be airports in Madagascar, formed by Groupe ADP, Bouygues Batiment International, Colas and Meridiam Africa have finalised funding arrangements to upgrade the airports. At Ivato Airport in Antananarivo a new terminal will be constructed and the existing one refurbished, while the runway will be strengthened and resurfaced, and technical and environmental compliance will be carried out. Fascane Airport in Nosy Be will benefit from a full refurbishment of the runway and the existing terminal, and the technical and environmental compliance of facilities. The construction work at the airports will be carried out by both Bouygues Batiment International, a company with vast experience in the design and construction of airport terminals, and Colas Madagascar, which will contribute expertise in airfield roadways. The two companies will join forces in a 50/50 design-construction joint venture. The financing of the fixed investment programme was finalised on 25 June with a consortium of five international development banks: the International Finance Corporation of the World Bank Group, Proparco, the Development Bank of Southern Africa, the Emerging Africa Infrastructure Fund and the OPEC Fund for International Development, along with the capital contributed by the shareholders of Ravinala Airports, ensure

FM Logistics opens up Asian base in Vietnam

FRENCH supply chain company FM Logistics is continuing to develop its presence in Asia with a base in Vietnam supporting its long-time customer, Auchan Retail. It has launched a 5,000 square metre tri-temperature logistics site in Bac Ninh, 20 kilometres from Hanoi, which will supply all Auchan stores in the northern half of the country. The local team is also preparing the setup of a new site in Ho Chi Minh City planned in 2018. The first FM-standard structure is planned for 2019 in Hanoi with up to 50,000m2 of warehousing space. Auchan Retail efficiency director in Vietnam, Christian Autie says: “Setting up a modern logistics system will allow us to have products more readily available in our stores and guarantee a high-quality cold chain.” FM Logistics director of operations in Asia, Stephane Descarpentries says: “In line with group strategy, our objective is to become one of the leading logistics providers on the Vietnamese market by 2020 and to develop collaborative solutions, creating added-value for our customers.” The move into Vietnam is part of FM’s strategy of long-term investment in emerging countries, following China in 2004, Brazil in 2013 and India in 2016. It says Vietnam has some of the strongest economic growth rates in Southeast Asia.

aircargoweek.com

ACW 25 SEPTEMBER 2017

AIR CHARTER USA

Hurricane relief flights keeping ACS busy in the US

ir Charter Service (ACS) has had a busy last few weeks arranging charters to hurricane affected islands in the Caribbean. Speaking to Air Cargo Week (ACW) on Tuesday, 19 September, ACS president for the Americas, Richard Thompson (pictured) says the charter broker has been involved with relief flights for Hurricane Irma charters. He explains: “We have been arranging lots of relief charter flights to San Juan in Puerto Rico. Florida was hit so hubs up the northeast coast of the US were used.

“We have also received enquiries to run charters with bottled water and medical equipment to Dominica after Hurricane Maria as well.” The challenge he says for ACS has been flying into locations where hurricanes have hit airport operations and it has had to look into whether they are functioning, is there fuel or a curfew, which has all proven challenging.

Strong domestic market

ACS now operates four US offices in Houston, Miami, Los Angeles and New York and has a fifth in North America in Toronto. Its Miami office was opened in 2015 and was affected during Hurricane Irma, as was much of the aviation community in the Florida area. Away from the relief flights, Thompson says ACS’ cargo business has picked up domestically in the US: “There was a little bit of a dip in the last few years, more so with the international charters as the O&G market has suffered, which had a knock-on effect, like the Houston to Africa route that died overnight. “What we have seen it is strong domestic market and is especially strong for charter providers. And we have slowly seen some of the international stuff picking up and are hoping the O&G now starts to come back.”

All offices contributing

As for each office’s performance, he explains: “Miami for cargo is doing really well with lots of domestic business and lots of charters into South America and Central America. Much of the shipments are machinery and perishables. “It has taken a few years to establish, but is doing nicely and we are adding a third person to the office this year.” Los Angeles cargo charters have been mainly to Asia, while its Houston office has been affected by the O&G slowdown, but despite that downturn Thompson says the Texas office has managed to get ahead of the prior year in the cargo department, driven by automotive and pharmaceutical cargo charters. “We are hoping O&G picks up and we are keeping close to our customers to let then know are ready once it does,” he says. Overall, he explains that cargo charter performance is up on last year and the US offices are well on track to keep on growing. I guess the question is, due to the good growth across its offices, is ACS looking to expand its footprint in the future? “The US is on an upward trend and the economy is going up and I do not see that going down and we are always looking at more offices,” Thompson says.

ACW 25 SEPTEMBER 2017

aircargoweek.com

He adds: “It has been discussed about having more offices here and having a presence in other US areas. “It is always better having a local office. There are plans to look into it in the future in the US, especially while it is a booming economy. “But we are well covered for now, but for a full office an area to look at might be the mid-west (Kansas etc) which is growing. We are always looking at any possible opportunities.” Thompson says ACS is positioning itself in the US as a consultancy company and customer service is so important, especially in the US. He explains: “You may be more expensive, but if the customer gets a good level of service they will go with you. We are always focused on providing high quality customer service.”

Increase US presence

Thompson says while it is a competitive air charter cargo marketplace in the US there are extensive opportunities in the years ahead. “If you take out the one-man bands I think we are top of the list of brokers offering both international and domestic business,” he says. He adds: “Over the next five years we are trying to increase our presence domestically in the US. We have increased that significantly over the last five years, but there is much we can achieve here.” And Thompson says no day is ever the same in the cargo charter world and every week is different and away from the important relief charters from the US, ACS has been arranging charter flights for all kinds of products. Earlier this year ACS was even commissioned to run a charter for two Incredible Hulk arms to Universal Studios in Orlando. That is certainly a new one for us at ACW. The future is certainly looking rosy in the US and ACS is gearing itself for further market expansion.

AIR CHARTER USA

Charter loaded with garments lands at Rickenbacker

atar Airways Cargo’s first charter freighter service loaded with garments has touched down at Rickenbacker International Airport in Columbus, Ohio. The cargo carrier is providing bespoke airfreight solutions to transport products for American fashion retailer, L Brands. The first flight earlier this month, saw over 100 tonnes of garments in collaboration with one of its major customers, Expo Freight (EFL), headquartered in Colombo, Sri Lanka. The garments were flown on a Boeing 777 Freighter from Colombo to Rickenbacker for L Brands. Qatar Airways chief officer for cargo, Ulrich Ogiermann says: “We appreciate the trust that EFL has placed in us to deliver this special air charter. “Our extensive cargo network, young and modern fleet of 20 freighters and our expertise in freight charters are the competitive advantages that enable us to customise our connectivity and services to most of the airports in the world. “With the current five times daily belly flights and twice weekly Airbus A330 Freighters to and from Colombo, Sri Lanka, apparel and local industries in the country are offered more capacity, including quick and efficient connections to key trade markets in Europe and the Americas via our Doha hub.” EFL founder and chairman, Hanif Yusoof adds: “As a customer centric company, we are honoured to have collaborated with Qatar Airways Cargo on this special charter service for L Brands.

“This serves as a great example of logistic providers and airlines working together to tailor solutions that benefit supply chain customers. We look forward to increasing our engagement with carriers and customers, developing more customised solutions that are both timely and effective.” The apparel industry is the most significant and dynamic contributor to Sri Lanka’s economy and is the primary foreign exchange earner, accounting for 40 per cent of the country’s total exports. Through its twice weekly Airbus A330Fs and five times daily flights out of Colombo, the carrier offers over 460 tonnes of cargo capacity from Sri Lanka each week, connecting local production companies to major import markets in Europe and the Americas, via the

state-of-the-art hub in Doha. Qatar Airways Cargo charter product saw a 150 per cent increase in 2016-17 results, over those achieved in 2015-16.

National Airlines places two 747Fs with BST Logistics

NATIONAL Airlines has expanded its cooperation with BST Logistics by operating the two B747-400F Freighters on behalf of BST Logistics through an aircraft, crew, maintenance, and insurance (ACMI) agreement from August. BST will begin cooperation with China Aerospace International Holdings based on BST Logistics’ ACMI operations. China Aerospace International Holdings is a subsidiary of the China Aerospace Science and Technology Corporation, a state approved and authorised investment institution supervised by the State Council. China Aerospace International Holdings deputy general manager, Wang Tong says: “Our plan is to develop charter business in civil aviation operating services. With BST’s vast experience in air chartering and ACMI operations, combined with National Airline’s extensive experience in air transportation, we are confident that this cooperation has a bright future ahead.” BST Logistics president, Shen Hong adds: “Committed to air charter and ACMI operations for almost 20 years, BST has gained extensive experience in this industry. “The cooperation with China Aerospace International Holdings and the great service provided by National Airlines will support BST’s growth and its continued expansion in air freight transport in civil aviation operating services.” National Airlines manager of charter sales, Rob Hotchkiss says with the strong business background and financial support of China Aerospace International Holdings, as well as BST’s experience and professional team, the carrier believes it can offer “greater and more versatile services to Chinese airfreight market”. BST and affiliated partner companies including Navitrans have been operating scheduled flights serving China, Europe and US since 2004. Now, BST operates weekly flights using B747-400F wet leases from National Airlines. BST also operates other scheduled flights to and from China on a weekly basis.

aircargoweek.com

ACW 25 SEPTEMBER 2017

MOSCOW

Air cargo market in Moscow primed for expansion

he last year or two has been turbulent in Moscow due to the impact of European Union sanctions and the Ukraine conflict hitting Russia, but the capital’s airfreight market is well and truly back on track. In the first seven months of the year, the Airport Council International Europe reports Moscow Sheremetyevo International Airport handled 122,281 tonnes, up 33.2 per cent on the same period in 2016 while fellow Moscow gateway Domodedovo International Airport handled 70,217 tonnes, up 11.6 per cent on the same seven months last year. Moscow is well positioned to keep growing with the construction of the largest air cargo terminal in Russia, which was completed in July this year at Sheremetyevo and went into

full operations this month. The city built the $80 million terminal, which is spread over 43,000 square metres and has a capacity of 380,000 tonnes, as it gets set to welcome the 2018 FIFA World Cup. The terminal was constructed in conjunction with Moscow Cargo LLC – Sheremetyevo’s cargo handling partner and has the capability of increasing this number to one million tonnes. This development is sure to further boost the activities of the Volga-Dnepr Group, which includes rapidly expanding all-cargo carrier AirBridgeCargo Airlines (ABC) and will also drive business for national carrier Aeroflot. The new terminal is equipped with automated seven-tier system of cargo shelf storage and handling designed for 3,198 house-pallets; a four-tier area of container storage equipped

with automated ULD (air container) processing system with a capacity of 576 storage bins, including 60 storage bins intended to store ULDs with temperature-sensitive cargo (temperature range of +2 to +8°С). It also features 13 conveyor lines reaching the aerodrome; 29 cargo acceptance/pick-up points equipped with dock levelers and shelters, two of which are intended to handle oversized cargo (including cars) and two are intended to accept express shipment items. ABC itself is rising and continues to post strong numbers achieving a 16 per cent increase in volumes in the first half of 2017 to 335,000 tonnes, with Asia Pacific driving demand.

Network development

The airline has doubled its online network in Asia Pacific in the last two years to 12 destinations, with flights to Tokyo, Seoul, Singapore, Hanoi, Phnom Penh, Hong Kong, Shanghai, Beijing, Chengdu, Chongqing, Zhengzhou and most recently Taipei. The Taipei route has seen strong demand, particularly for hi-tech products, and is now carrying 1,000 tonnes a month on the route, and ABC’s business to and from Asia Pacific rose by over 20 per cent in the six months ending 30 June 2017. Freight tonne kilometres rose 13 per cent and load factors were up by four percentage points to 71 per cent, while the airline welcomed its 10th Boeing 747-8 Freighter, bringing the fleet to 17 747s. ABC general director, Sergey Lazarev said when the results were announced it had a “very clear strategy that is all about listening to the

ACW 25 SEPTEMBER 2017

aircargoweek.com

needs of our customers in terms of the routes and products they want us to offer”. He added this was reflected in the move to expand the network in Asia Pacific as well as developing products to meet their use of special products for pharma and off-size cargoes. Meanwhile, cargo revenue at Aeroflot increased by 37.7 per cent in the first half of 2017 with volumes growing 44.3 per cent. It was up from 5.2 billion roubles ($88.6 million) in 2016 to 7.1 billion roubles this year as the group added widebody aircraft to its fleet, helping cargo and mail volumes grow 44.3 per cent to 122,349 tonnes.

Revenue growth

Total revenue grew 4.9 per cent to 234.8 billion roubles, and though operating profits were down 66.9 per cent to 7.7 billion roubles, net profits were up 17.1 per cent to 2.9 billion roubles. Aeroflot deputy chief executive officer for commerce and finance, Shamil Kurmashov said that despite the reduction in operating profitability, Aeroflot Group’s net income for the reporting period was on a par with last year’s result, at 2.9 billion roubles. He added: “We enter the third quarter – traditionally a high season for Russian civil aviation – with favourable conditions: the exchange rate and the fuel prices are at a ‘normalised’ level, and we continue our active demand-oriented revenue-management programme. “We are maintaining the pace of operational growth on both foreign and domestic markets, and this allows us to be optimistic about the second half of the year.”

ACW 25 SEPTEMBER 2017

Tabloid page trim.indd 1

11/07/2017 14:45