ACW daily 9th May 17

A

I

R

C

A

R

G

O

W

E

E

K

DA ILY NEWS Tuesday • 9 May 2017

The daily newspaper published in Munich covering Air Cargo Europe 2017

Munich welcomes air cargo

D

ecision makers from across the air cargo supply chain will descend on air cargo europe at the Munich Trade Fair Centre today when the world’s largest industry show opens for

business.

More than 200 exhibitors will showcase their services and products at the biennial conference and exhibition in Hall B1.

Air cargo europe is part of the wider transport logistic event, which organiser Messe Muenchen expects to be attended by more than 55,000

Cargo aircraft crashes

A cargo aircraft crashed in the US on Friday morning killing two people after it veered off a runway into woodland and hitting trees near Yeager Airport in Charleston, West Virginia.

The aircraft was a Short SD-330 and operated

by Air Cargo Carriers as a subcontractor for UPS. The flight took-off from Louisville at 5.35am and was supposed to land at about 6.20am.

The aircraft was destroyed after it rolled to the left of the runway after landing at Yeager Airport and over a hillside into a wooded area at around 7am. Kanawha County Ambulance confirmed there were two fatalities who are believed to have been the pilot and co-pliot.

The US National Transportation Safety Board (NTSB) has launched an investigation

people from 9-12 May. A ribbon cutting ceremony today at 11am in Forum I, Hall A6 will signal the start of transport logistic and air cargo europe.

Messe Muenchen managing director Stefan Rummel and chairman of the transport logistic board, Dr Michael Kerkloh will then be interviewed by Silvia Laubenbacher, giving their views on the logistics industry.

German government federal minister for transport and digital infrastructure, Alexander Dobrindt MP will then make an opening address

before a panel discussion on e-mobility and e-commerce featuring senior chiefs from heavyweight industry players takes place.

Panelists will include Panalpina chief executive officer (CEO), Stefan Karlen, Flexport CEO, Ryan Petersen and Amazon Logistics general manager for transport in Germany, Bernd Schwenger. Events will be held throughout the first day of air cargo europe by exhibitors including press conferences by Cargolux, Qatar Airways, Antonov Airlines and Jettainer.

Lufthansa Cargo will also for the first time be running a series of events on a stage at their booth 101/202 including today at 4pm when Lufthansa Cargo CEO, Peter Gerber and United Cargo president Jan Krems welcome guests to celebrate their joint venture.

Gerber says the German carrier is “looking forward to an intensive and constructive dialog” with customers and partners, to provide them with the “best solutions” for their challenges.

The Frankfurt freight carrier will also have a flight simulator at their booth where visitors can make their own flight path under the watchful eye of an experienced pilot.

Frankfurt-Hahn Airport handed 23,700 tonnes of cargo in the first quarter (Q1) of this year - a rise of 41 per cent on Q1 last year.

The gateway was bought by the HNA Airport Group of China in March and says both existing costumers and clients contributed to the strong growth.

Sales director, John Kohlsaat says: “We had

a very good start to the year, but of course we are constantly willing to improve." His outlook for future growth is positive: "Our airport offers strong benefits for freight customers from all over the world."

The airport has recently trained staff to handled live animal transportation in accordance with the IATA Live Animals Regulation and the EC Council Regulation and is looking to grow this segment.

Senior vice president for cargo sales and business development, Roger Scheifele says: "The demand is strong, and we would like to offer our clients maximum quality."

Frankfurt-Hahn Airport is exhibiting at air cargo europe at booth 210.

Tonnage rises sharply at Frankfurt-Hahn

ACE BOOTHS COME TOGETHER FOR THE BIG DAY

3

YIELDS FLATTENING OUT Q&A WITH MARKUS HEINELT ASIA BACK ON AN UPWARD TRAGECTORY HIGH FLYING TIMES FOR BUDAPEST

5

12

17

22

Sharp traffic spike in Europe Cargo across the European airport network grew strongly in March and in the first quarter (Q1), according to the Airports Council International (ACI) Europe.

Tonnage grew eight per cent in Q1 on Q1 last year and ACI Europe says March was the best month since April 2011 with growth of 13.7 per cent.

In Q1, Heathrow Airport grew 7.3 per cent to 399,481 tonnes, Frankfurt Airport 6.8 per cent to 508,025 tonnes, Paris CDG Airport 0.4 per cent to 471,837 tonnes, Amsterdam Airport Schiphol eight per cent to 420,167 tonnes, and Brussels Airport 27.3 per cent to 130,068 tonnes.

aircargoweek.com

ACW DailyNews

ACE booths come together for the big day Finally, each booth was complete and the finishing touches were made including stocking up the bars, laying out business cards, company literature and freebies.

Exhibitor booths were constructed yesterday at Air Cargo Europe's Hall B1 and it was a hive of activity once again. Teams of professional stand builders speedily and efficiently put together company stands in time for the opening at the Munich Trade Fair Centre -as the world's largest air cargo industry show came together throughout the day. More than 200 supply chain firms are exhibiting this year.

Stand constructors get cracking at Virgin Atlantic Cargo's stand (right) as they create their masterpieces.

As the day wore on the exhibition hall gradually came together and was transformed.

A

I

R

C

A

R

G

O

W

E

E

Published in Munich 9, 10 and 11 May 2017

K

DAILY NEWS Editor:

Justin Burns

Staff Writer:

James Muir

Contributors:

Michael Mackey • Graham Newton David Craik • Mike Bryant

International Sales Director:

Rosa Bellanca

International Sales Manager:

Valeria Curzio

Commercial Director:

Anthony Smith

Development Director:

Michael Sales

Design and Production Manager:

Alex Brown

Operations Manager:

Kim Smith

Data and Accounts:

Sarah Archer

Directors:

Norman Bamford • William Carr • Dawn Jolley

PUBLISHED BY

AZURA I N T E R N AT I O N A L

T +44 (0)1737 645777 • F +44 (0)1737 645888 E sales@azurainternational.com

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

Printed in Munich by Peschke Druckerei GmbH

aircargoweek.com

9 May 2017

3

ACW DailyNews

Yields flattening out but investment continues

The Middle East was for many months air cargo’s top growth region, but not anymore. Mike Bryant looks at the challenges key players are facing and what they are doing to drive business.

A

bu Dhabi-based Etihad Cargo had a “strong finish” to 2016, and “We’ve seen a lot of that firmness in the market continue during the first quarter of this year,” explains senior vice-president, David Kerr (pictured right).

Yields, which have been a problem for quite

some time, have also started to “flatten out”, another encouraging sign – but Kerr says the Middle East is still a challenging air cargo market overall in which to operate.

The build-up to the comparatively early Chinese New Year (in January this year) saw good loads out of Northern Asia, but demand for

cargo capacity out of South-east Asia and out of Europe has also been strong, he informs.

Product-wise, there have been some notable shipments handled by Etihad Cargo this year.

A number of charters in February for moving horses to the Longines Masters show jumping event in Hong Kong was a particular highlight, for example, and reflects the investment that the freight carrier has made in its equine handling capabilities.

Etihad Cargo’s organic rate of growth has slowed somewhat in recent years – not surprising given its early exponential growth – but partnerships offer a way of adding significant capacity in new markets very quickly. Etihad Cargo has various capacity management agreements with other carriers within the Etihad Airways Partners group, which takes in seven carriers as well as Etihad itself. “These partnerships continue to go from strength to strength,” Kerr observes.

Perhaps most notably for cargo, Etihad Cargo is managing the network of Alitalia’s freight business, with the exception of its transatlantic operations. “This extensive network gives us a great platform” and “represents a milestone in our development”, Kerr says. And despite the challenges normally associated with Italy’s struggling national airline, the tie-up has

aircargoweek.com

been “a very positive development for us”, he adds, given Italy’s traditional role as the continent’s second-biggest air cargo market (after Germany).

As well as the domestic market, the regional market can be served by way of a trucking network while the country and its flag-carrier can also offer Etihad Cargo a stepping-stone to Latin America.

Organic growth is also continuing, however. A 10th Airbus A330 Freighter is going into operation, which will bring the freighter fleet to a total of 10 - five A330Fs and five Boeing 777Fs. The deepening of the fleet will allow new frequencies to be added to existing services and

DAVID KERR

9 May 2017

5

ACW DailyNews specialised products such as pharmaceuticals, live animals and e-commerce, Kerr confirms.

With regard to the latter, Abu Dhabi is particularly well positioned geographically to exploit opportunities relating to the current e-commerce boom, he explains.

FLEET AND NETWORK

new destinations to be served.

Investment is also continuing into cargo handling facilities at Etihad Cargo’s home hub of Abu Dhabi International Airport. As part of the gateway’s Midfield Terminal project, a cargo ter-

6

9 May 2017

minal in the east midfield area is currently in the design phase, and the freight carrier is considering a range of capability enhancements that it can make. Particular focus will be on further enhancing the handling capability in regard to

“Economists expect global GDP to double by 2030, driven by emerging markets, bilateral trade relationships as well as trade between developed and emerging economies,” observes Qatar Airways Cargo chief cargo officer, Ulrich Ogiermann. “This will definitely benefit the logistics industry and we will see a corresponding growth in air freight traffic, especially in the Gulf.

“The region benefits from overall international growth, in terms of market share, from its unique and strategic geographical position with just one-stop connectivity between Australasia, Asia, Africa and Europe. That is why transit cargo constitutes over 85 per cent of our total volume,” he points out.

“Riding on the region’s growth trajectory, in 2016 we witnessed 21 per cent year-on-year tonnage increase in the Middle East, with general cargo, perishables, pharmaceuticals and courier products being the major commodities transported on our 192 aircraft across 58 dedicated freighter and over 150 passenger destinations.”

Expansion of the Qatar Airways Cargo route network has continued this year. “[In February] we launched four new routes to the Americas, departing from Doha via Luxembourg, our European hub, before arriving into São Paulo, Buenos Aires and Quito,” Ogiermann says.

“The introduction of these new freighter services provides a huge impetus to the perishables and pharmaceutical exports out of these key markets, offering businesses on the continent a young and modern fleet and access to our global network of more than 150 destinations via Doha hub.”

He adds: “Besides the launch of four new destinations in the Americas, we also added an additional weekly frequency, operating on Fridays, from Basel to Doha; and two additional A330F services from Brussels to Doha on Wednesdays and Saturdays. These newly added frequencies take our total Pharma Express flights to nine per week.”

And that fleet and that network are going to get ever bigger. “We will be receiving two B777 F this year, in the months of March and September, taking our fleet count to 23 by end of the year. The delivery of new aircraft will increase our overall capacity significantly and, subsequently, we will be looking at enhancing our transit facilities, product offerings and service quality,” Ogiermann says.

“Our bellyhold operation and capacity will also magnify in months to come as the airline

aircargoweek.com

introduces 14 new passenger destinations for 2017 and 2018. It is our conscious strategy to divide our cargo capacity across our freighters and passenger aircraft to optimise capacity and adjust our services flexibly to meet customer needs, market demand as well as the dynamics of air freight business.”

Meanwhile development at the cargo carrier’s home hub of Hamad International Airport in Doha is also very much part of the corporate strategy. “Anticipating tremendous capacity growth in the near future, the plan to construct our second cargo terminal in Doha is currently underway,” Ogiermann explains.

General cargo, perishables, pharmaceuticals and courier products being the major commodities “Stretching across 110,000 square metres, the new facility, combined with the current terminal, will allow us to handle 4.4 million tonnes of cargo a year, complete with cutting-edge handling equipment to provide support and solutions for air transportation of perishables, pharmaceutical products, live animals and general cargo. The new Cargo Terminal 2 will also house the cargo carrier’s Doha-based Head Office, as well as its operations units.

“As an investment in the future, we will be commissioning an advanced Climate Control Centre in response to growing global demand in specialised airfreight solutions for temperature-sensitive products. The new 2,471 square metre facility will have two zones operating at 2-8 degrees Celsius or 15-25 degrees Celsius for 156 ULD storage positions. Six truck docks with blow-up curtains to seal around the truck will ensure temperature integrity. And segregated sections will hold pharmaceuticals in compliance with GDP regulations.”

POSITIVE YEAR AHEAD

“2016 was a fairly challenging year for the global air cargo market,” according to Emirates

ACW DailyNews

vice president for cargo commercial in the Americas, Middle East and GCC, Duncan Watson (pictured below). “However, towards the end of the year we saw a marked improvement in

tonnage volumes and the Middle Eastern freight market witnessed one of the fastest annual growth rates annually.

“We have seen a strong positive improve-

ment in tonnages, especially in the two key GCC markets of Saudi Arabia and the UAE, on both exports and imports,” he explained. “Some of the smaller markets are still finding the environment a little more challenging but even they have seen an upturn since the start of 2017. This all sets a positive tone and we envisage a good 2017 for the markets.”

As to the future, Watson points to an increasing trend in which customers are steadily moving away from transporting general cargo to instead look for specialised transportation solutions for different business verticals. Meeting this sort of need, “In September 2016 we launched ‘Emirates SkyPharma’ – our transportation solution for temperature-sensitive pharmaceutical cargo,” Watson recalls. “Our product is backed by state-of-the-art infrastructure, including a brand new, purpose-built GDP [Good Distribution Practice] certified facility at our SkyCentral hub in Dubai International Airport.

“Overall we offer over 8,000 square metres of dedicated GDP certified storage space for pharmaceuticals at our SkyCentral hubs at both Dubai International (DXB) and Dubai World Central (DWC) airports.

“We also launched Emirates SkyWheels, our

DUNCAN WATSON

8

9 May 2017

aircargoweek.com

specialised product for the movement of classic and luxury cars and other exclusive automobiles. We are seeing an increasing number of cars moving from the GCC region into Europe and have a strong product to offer to our customers.”

While Emirates SkyCargo currently has no plans to invest in additional freighter aircraft, it

is continuing to invest its handling facilities in Dubai as well as in its specialised product offerings. Emirates SkyCentral DWC, the carrier’s dedicated cargo terminal for freighter aircraft handling located at Dubai World Central, can now process over 700,000 tonnes of cargo per annum, including over 15,000 square metres of dedicated storage for temp-sensitive cargo.

Emirates SkyCargo has a system of dual operation for cargo, with freighters managed at SkyCentral DWC and bellyhold being managed at SkyCentral DXB. Cargo is transported 24/7 by 47 bonded trucks between the two airports and each truck is equipped with satellite tracking to ensure the safety and security of cargo and staff.

“The movement of cargo between the two airports is seamless and we have a transit time of just five hours or less between the arrival of goods to their departure from freighter to bellyhold cargo or vice versa,” Watson says.

The Middle East is still on the growth path, but it is facing new trends and challenges and competition is as fierce as it has ever been. Operators who are adapting to the new norms and expanding their offering are sure to be the winners.

ACW DailyNews

Asian region driving e-commerce E-commerce provides the industry with endless opportunities, but adjusting business processes to demands is proving complex. Michael Mackey takes a look at the sector.

A

s 2017 shapes up to be a better and hopefully busy year for air cargo - one of its sectors e-commerce is looking to create much of that busyness and business.

The industry is clear on one thing e-commerce is leading the key driver of the market at the moment with double-digit growth rates. Woven into this are two other things one broadly agreed upon the second less so.

The first is the importance of China in driving e-commerce the second is how this is leading to changes in the overall market. A large part of this is how business is done as the air cargo industry moves away from being business-to-business (B2B) and becomes much more business-to-consumer (B2C) oriented.

Transformation might be too grand a word but something like it is happening out there. Its not just growth and where it is happening but what it involves. Traditional air cargo used to be the movements lots of smaller loads now its becoming a fragmented market with lots of individuals deliveries.

“China is becoming a huge market for e-commerce from overseas suppliers, with exponential growth that shows no sign of abating,” explains, Hong Kong Air Cargo Terminal's (Hactl) chief executive, Mark Whitehead.

For companies the implications are clear startlingly so. “As for ANA’s e-commerce business, the most important task is how to gain the huge, growing demand to China,” and unnamed official with Japan’s All Nippon Airways (ANA), notes.

airport-to-airport segment of the logistics journey – to make delivery times quicker,” Cathay Pacific’s general manager for cargo sales and marketing, Mark Sutch says.

“We will expand our range of cooperation with UPS, FedEx, and SF-Express to manage this growth opportunity,” was China Air-

lines pithier take on it.

“We will strengthen our relationship with the main freight forwarders to develop the Cargo-Postal Bag shipment business and increase the cross-strait postal baggage volume,” it adds. That’s one to watch going forward given the sometimes fraught

As volumes of e-commerce grows, so does demand for quicker delivery Competition though could be fierce, fierce, fierce.

According to local media, China’s domestic airfreight will account for approximately 33 per cent of the global market, Malaysia Airlines (MAB) Kargo chief executive officer, Ahmad Luqman Mohd Azmi explains. Additionally, the B2C segment this year expected to hit over more than $2 trillion, he adds.

“Hence, MAB Kargo is determined to focus on the intra-Asean e-commerce industry and China, since there are many growth opportunities for a specialist cargo operator, with access to the belly space of Malaysia Airlines’ strong network,” Azmi says.

The Kuala Lumpur-headquartered company has a specific pitch here its 737-800 narrowbody fleet. This would it argues be able support loose cargo load (LCL) in the belly of passenger aircraft, typically associated with delivery of e-commerce products.

Whilst there is no-one vigorously disputing the idea China is where its all going to happen, what is clear is this is bringing with it the need for change, although there is some debate about what is actually needed which tends to vary from country to country.

“As volumes of e-commerce grows, so does demand for quicker delivery. We are doing a lot of work with our partners – including post offices, integrators or forwarders that use us for the

aircargoweek.com

9 May 2017

9

ACW DailyNews

MARK WHITEHEAD relations between Taiwan, where China Airlines is based, and the Chinese mainland its sometime political adversary.

For some by contrast its about the need for better internal cooperation. “Our challenge is to cultivate new demand by establishing our own business model by effectively cooperating with

our subsidiary international express company, OCS, together with ACD, who is managing the e-commerce site, system planning and development,” the ANA official acknowledges.

This need to work with partners, both internal and outside the company is a recurring theme across the region. The other one is the need to invest in more infrastructure both soft and hard.

“The industry needs to invest more in IT systems that foster collaboration between supply chain partners, and facilitate seamless information flows. If it does, there will be a handsome dividend but we all need to produce the products to capture the market,” Hactl’s Whitehead explains.

This is not just about the needs of companies to be able to move goods and packages promptly but also about the ability of the end users - consumers to be able to trust and plan around deliveries.

This was cited as problem in some parts of the region.

“Another crucial element is transparency in the supply chain.

We are investing in technology that enhances our online track and trace, enabling our partners and their customers know the status of their shipments,” says Cathay’s Sutch.

What is also striking is the number and amount of new physical

hardware required to deal with something that has the feel of a new sector. Also noteworthy is where it is as the traditional China hub of Hong Kong is joined by newer sites such as Tokyo and two alone in South East Asia.

This coming October, in order to establish more efficient, especially time efficient operations, and higher service quality, OCS is to centralise its offices and logistics centres at the same place, as “OCS Tokyo Logistics Center,” the ANA official says. Currently these are separated in different locations, the official added.

More illustrating is the situation down in South East Asia.

Malaysia’s Prime Minister Datuk Seri Najib Tun Razak has announced the government is to set up the first Digital Free Zone (DFZ) in the world. Razak according to MAB Kargo says the DFZ will “merge physical and virtual zones, with additional online and digital services to facilitate international e-commerce and invigorate Internet-based innovation”.

Prime Minister Razak says an incentive package would be worked out with Alibaba founder Jack Ma, his digital economy advisor. “We will discuss details of the incentives, regulations, etc.

So, it will be quite an attractive package and many people will be compelled to engage in digital activities at the Digital Free Trade Zone,” he explains according to a national news agency report.

Whatever transpires MAB Kargo is pushing for it. “We plan to focus on making Kuala Lumpur International Airport (KLIA) a major e-commerce hub in this region,” notes MAB Kargo’s Azmi.

MAB Kargo also hopes to attract some fulfillment centres to be located at this airport (KLIA), as well as capitalising on it to tap into the e-commerce industry. “This would draw in the booming

The industry needs to invest more in IT systems that foster collaboration between supply chain partners

10

9 May 2017

China market and possibly give MAB Kargo an edge,” Azmi adds.

More immediate still and opened in 13 April, Singapore’s response and bid for the market. This is SATS’ Commerce AirHub which will see the integration of both SATS’ and SingPost’s airmail consignment operations under one roof.

The new automated facility will improve efficiency and space utilisation, as well as enhance the consignment handling capabilities for both SATS and SingPost within the Changi Airfreight Centre. It will be a 6,000 square metre facility.

SingPost will be its anchor customer but, and this is a precedent rather than part of a trend it will make SATS the first ground handler in the world to own such an airside facility. More precedental still are the efficiency gains it brings. SATS has talked about expecting it to achieve a productivity gain of more than 30 per cent.

Currently Changi is working closely with Singapore’s economic agencies to develop a vibrant ecommerce ecosystem comprising of a pool of players in each part of the value chain, to anchor Singapore as the fulfillment centre for the region.

Beyond this Changi Airport is building capacity for the future and long-term needs of the logistics and aerospace industries.

To be completed in late 2020s, an industrial zone – the Changi East Industrial Zone (CEIZ) - will be developed for airfreight, air express and MRO activities, explains Air Hub Development managing director, Lim Ching Kiat.

Asia is certainly not the only region seeing e-commerce growth as Europe, and North America are on the same trajectory, but it is a sure bet to continue to be the principle driver of the sector due to a growing middle-class population and thirst for consumer goods across emerging markets.

Airfreight operators that adjust and adapt to the new needs and demands of e-commerce are set to reap the rewards on offer.

aircargoweek.com

QA ACW DailyNews

&

How was business in 2016 compared to 2015?

As in recent years, the airfreight segment again achieved even stronger growth than our passenger operations in 2016. The total cargo tonnage increased by 5.4 per cent to 334,000 tonnes.

Adding airmail, we handled 353,650 tonnes of cargo, or 5.2 per

questions answered by ...

MARKUS HEINELT MUNICH AIRPORT DIRECTOR TRAFFIC DEVELOPMENT CARGO

Munich Airport cargo volumes continue to grow with new and expanded services from a variety of airlines, and a third runway is awaiting shareholder approval. The hub is celebrating its 25th anniversary at its current site and James Muir spoke to director of traffic development for cargo, Markus Heinelt about what the next 25 years has in stall for Munich.

cent more than in the previous year. Incidentally: A comparison of airfreight statistics with the airport’s opening year (1992) is even more impressive than for passenger numbers. The current totals are approximately six times as high as in 1992. The strong increase in 2016 results from additional capacities which were

well received in the market. The two new Lufthansa destinations Tehran and Denver as well as Delta’s new Detroit operation added to the cargo volume. Further increase came from Emirates third daily frequency from and to Dubai. Qatar Airways increased capacities by switching from Boing 787 and Airbus A330 to Airbus 350, so did All Nippon Airways by switching to Boeing 787-900.

How is business going so far this year?

2017 has started-off promising for us. In January the cargo volume raised by 9%, February showed a slight slow-down to +1.7%

but the first two weeks of March it picked up again showing a five per cent growth. So, we are currently looking at plus six per cent for the first quarter of 2017.

What are your expectations for the rest of the year?

We expect further growth over the current year. Especially with an additional San Francisco route operated by United. ABC might go for expansion in Munich and we hope for more freighter business to the US.

How will the third runway affect cargo operations?

Munich Airport’s future cargo growth will depend on major expansion projects such as a third runway. This project is awaiting approval by the airport’s shareholders.

What expansion plans do you have while you are waiting for the third runway to be constructed?

The airport is currently negotiating the expansion of cargo infrastructures with various interested parties.

12

9 May 2017

What are the main imports and exports you handle? And how do they benefit from Munich Airport’s connectivity?

The main industries exporting via Munich Airport are: automotive, chemicals/pharmaceuticals, high-tech (optical/electronics), machinery. They make up 60 per cent of the cargo volumes.

Whereas imports mainly come from clothing, textiles, pharmaceuticals, high-tech (optical/electronics) industries. Munich

aircargoweek.com

ACW DailyNews Airport can score with 329 weekly long-haul connections which link major international industry centers and guarantee a fast and direct delivery. Further, Munich offers over 170 continental connections perfect for all express and e-commerce products.

What advantages and benefits can you offer cargo airlines and other supply chain companies?

We offer a wide catchment area, premium industries, a top consumer market which is excellent for e-commerce business. And, not to forget a world-wide unique cargo infrastructure: the supply chain under one roof and short ways. A ramp links the freight handling facilities of the forwarders with the airline’s cargo facilities located right next to the apron. Export and import processes turn out fast and highly efficient. The infrastructure is tailored to the logistic companies’ and airlines’ needs. The freight terminals (airlines, handling and logistics companies) are directly linked.

Overlapping flows of trucked freight are practically eliminated.

This safes time and costs for our clients and makes Munich Airport one of the world’s fastest and most attractive hub airports.

Our key account management cargo is also in permanent bilateral talks with the management of the top cargo airlines and forwarding agents in order to retain and provide customised solutions.

Another step is, we are going to provide a new web-based cargo service tool, so called “e-learning cargo”. That will be a dedicated proactive information system for the Munich Airport cargo community.

with this. Since Munich Airport already has a leading position for the consumer market, the increase in sufficient infrastructure capacities needs to be timely focused. In the future sustainability (green logistics) will gain more importance. MUC gets ready for this – aiming on becoming Germany’s first carbon-neutral airport by 2030.

As Munich celebrates its 25th anniversary, are you optimistic it will continue to grow strongly over the next 25 years?

By May 2017, the total number of passengers arriving, departing, or catching connecting flights at Munich Airport since it opened will top the 700 million mark. The annual traffic volume of more than 42 million passengers per year has more than tripled since the opening year of 1992, and the number of take-offs and landings has doubled to approximately 400,000. Over the past 25 years, Munich Airport has handled around 8.5 million flights. The once mainly regional airport has risen to take its place alongside Europe’s leading air transportation hubs and for the future, all of the indicators point to continuing growth. With respect to being a leading cargo hub Munich has just started to take-off.

The current totals are approximately six times as high as in 1992 How do you see the German airfreight market developing in the coming years? And how can Munich Airport strengthen its position?

Germany will continue to play a dominant role in foreign trades.

E-commerce tends to develop rapidly especially in the B2C segment due to the fact that Germany builds the largest European consumer market with a population of 81 million. I expect that trade by airfreight – import and export – will grow above average in the German market. Therefore, respective political conditions allowing airlines to fly direct to Germany will be even more crucial in future. I assume that airline alliances will also increase to cope

aircargoweek.com

9 May 2017

13

ACW DailyNews

E An irresistible force Air cargo’s digitalisation has progressed slowly to date, but the pace is picking up, writes Graham Newton.

-cargo, as an industry concept, has been around since 2006 when the International Air Transport Association (IATA) launched it as part of the Simplifying the Business programme.

The core remit hasn’t changed and involves airlines, freight forwarders, ground handlers, shippers, customs authorities and regulators. Starting with the air waybill, the aim is to transfer the industry’s myriad paper documents into an electronic format. It is expected that this end-to-end approach involving the entire air cargo value chain will result in a more efficient – and more competitive – sector.

More than a decade on from the launch, however, the latest figures from IATA reveal the implementation of the electronic air waybill (e-AWB) is hovering around the 50 per cent mark. The target for 2017 is a modest 62 per cent penetration. Beyond lies not only the more challenging aspects of achieving 100 per cent e-AWB but the complexities of digitising other cargo documents.

Such are the idiosyncrasies involved in each country that a methodical case-by-case basis seems the best way forward for the remaining documents – a time-consuming and resource-intensive process at a point when air cargo has precious little of either. Every development will be hard won.

“As we know e-Freight and e-AWB require a significant number of factors to be in place to facilitate successful implementation,” says IATA’s project manager for e-AWB, David Sauv. “Despite the complexities, e-AWB penetration moved significantly during 2016 and finished the year at 48.9 per cent penetration, which was below the industry target of 56 per cent, but still a great achievement. In December 2016, this translated into over 600,000 shipments transported without a paper AWB. “The use of e-AWB as a means to establish the contract of carriage is only recommended on feasible trade lanes,” he continues.

“In December 2016, the feasible trade lanes represented 62 per cent of the AWBs. A feasible trade lane is defined as such when the country of origin and country of destination have ratified the same treaty – either the Montreal Protocol No. 4 of 1975 (MP4) or the Montreal Convention of 1999 (MC99). Therefore, countries which have not signed these treaties do not offer a favourable legal environment for the e-AWB.” In other words, use of the e-AWB still has some way to go because it can’t even be implemented across the board until governments come on board to support the use of electronic documentation. To end February 2017, 124 countries had implemented MC99. But this does not include some important countries – Thailand and Vietnam are notable examples – that play a key role in global supply chains.

Governments need to support the adoption of revisions to the Kyoto Convention of the World Customs Organization to allow smart border solutions and the implementation of the World Trade Organization’s Trade Facilitation Agreement, which make global trade easier.

TARGETS WORTH REACHING

While it may not have been plain sailing, there is a belief that the digitalisation of cargo now has a following wind. Slowly, but surely, the benefits of moving to an electronic environment are becoming clear as more and more players jump aboard the e-cargo bandwagon. Finally, the project is on a roll.

Partly, this optimism is down to critical mass. A tipping point appears to have been reached that finally makes implementing the e-AWB less costly than not implementing it.

This should not be surprising as advantages of e-cargo, include: Lower costs Faster shipment times Improved data reliability and accuracy Real-time shipment visibility Fewer trade barriers

• • • • •

14

9 May 2017

Royal Jordanian (RJ) implemented the e-AWB in cooperation with CHAMP Cargosystems. Its president and chief executive officer, Captain Suleiman Obeidat says the airline’s cargo arm – which already does a strong trade in fresh fruit and vegetables, garments and pharmaceutical products – is keen to offer state-of-the-art services to its customers and agents to meet their demands.

Royal Jordanian’s e-AWB system is an online tool that enables the carrier’s cargo customers to perform essential booking and data capture procedures. It connects directly with the Jordanian Customs Department and other relevant parties, easing the clearance of goods and delivery to the consignee.

Obeidat believes implementation of the e-AWB will

aircargoweek.com

ACW DailyNews push cargo volumes higher as agents take advantage of the 24/7 availability. Wherever they are in the world, cargo agents can examine flight schedules, check capacity, create real-time bookings and manage bookings completely unassisted. RJ has even organised training courses to assist local agents with the new system and ensure its potential is maximised. “This e-AWB initiative further re-enforces the ongoing partnership between Royal Jordanian and CHAMP and provides real benefits to the community by increasing the digitisation of the air cargo process leading to increased efficiency,” notes CHAMP Cargosystems vice president, global sales and marketing, Nicholas Xenocostas. “We are delighted that RJ has taken this step in the region; this will

16

9 May 2017

significantly simplify the airfreight supply chain process, in addition to greater data accuracy.”

DRIVING FORWARD

Maintaining the momentum of e-cargo is essential. Any further periods in the doldrums will be hard for the industry to tolerate as new entrants with new ideas and new business models ride roughshod over traditional processes. Amazon, for example, has its own airline, Amazon Prime Air, and patents galore for innovative “last mile” delivery methods. Flying warehouses with drones dropping down for the skies and self-drive vans allow customers to unload their package through a unique pin code are among the company’s many ideas. They may seem far-fetched right now and may or may not bear fruit in the future. But the ideas alone are enough to suggest business as usual is not an option.

This means driving digitalisation beyond the e-AWB. There is a total of 12 XML message standards already developed to assist the industry in this effort. These are for the waybill; freight

aircargoweek.com

booked list; custom status notification; the invoice; house waybill; status message; shippers declaration for dangerous goods; the packing list; house manifest; certificate of origin; flight manifest; and shippers letter of instruction.

“IATA is currently facilitating the proof of concept for an electronic shipper’s declaration for dangerous goods (e-SDDG) and expects first shipment with electronic data in 2017,” Sauv notes.

Perhaps the biggest driver in pushing ahead with e-cargo will be fresh blood. Increasingly, air cargo CEOs and their counterparts along have grown up in a digital world. With this changing of the guard, the industry mindset is shifting. Technology is being seen as the heart of the business, and not merely a support element. No longer is the question, “how can we do this?” but “how can we not do this?”

The journey to 100 per cent e-cargo will be long. Much has to change, much investment is needed. But, as Sauv suggests, there is at last evidence e-cargo has become an irresistible force, banishing company and government immovability before it.

ACW DailyNews

Asia back on an upward tragectory

The world’s largest air cargo market Asia Pacific is growing strongly.

Michael Mackey looks at how it has got back on the growth path.

and services within mainland China which will funnel more cargo through Hong Kong.

“In addition to what Hactl and Hacis have already done, Hacis is expanding the frequency and reach of its express road feeder service (RFS) system into mainland China. It already has eight depots, and is planning to add more in the western Pearl River Delta. This will become more accessible when the Hong KongZhuhai-Macau Bridge opens, cutting transit times to just 40 minutes,” explains Hactl chief executive, Mark Whitehead.

The bridge opening is set for later in the year by which time some of the issues over hanging world trade might be if not resolved then at least clearer.

“It is still unclear to the impact of change in political administrations of United States, however, it seems the economic itself in the US will be growing steadily,” Japan Airlines’ department of cargo & mail administration member, Kensuke Tsuchida says.

References to US trade policy recurred, but Brexit, the other great potential disruptor, seems to have already been factored in.

This year the emphasis is building on what the industry already has as well as trying to find new markets for destinations

C

autious optimism prevails in the Asia Pacific air cargo industry as it moves to lock in the gains of last year whilst being watchful of the problems that might occur.

Leading the way here is Singapore where Changi Airport, last year achieved an all-time high of 1.97 million tonnes of airfreight throughput according to Air Hub Development managing director, Lim Ching Kiat. As part of that Changi also welcomed two new freighter airlines – Silk Way West and Neptune Air, and saw the return of K-Mile.

This in a way of symbolic of where the Asian air cargo industry is at the moment: incremental growth on top of an already strong sector.

Changi though like all those contacted is less bold in expressing its views about the future. “For the year ahead, the outlook remains uncertain due to the slow global economy and trade environment. As such, we maintain a cautiously positive outlook for 2017,” Lim says.

A more detailed version, but with more or less the same conclusion word-for-word, comes from Cathay Pacific, headquarted in Asia’s other great hub, Hong Kong.

“Riding on a good momentum from an extended peak season in 2016, we saw a solid start to the Asia Pacific cargo market in January. The demand pick-up post Chinese New Year has also been encouraging. March looks to be a strong month with the quarter end rush and some new product releases. All in all, we are cautiously optimistic of a better 2017,” Cathay Pacific general manager for cargo sales and marketing, Mark Sutch notes.

There are some very solid reasons for such optimism given other developments not just in Hong Kong but its immediate hinterland, China. Hacis - the value-added logistics business of Hong Kong Air Cargo Terminal (Hactl) is increasing its catchment area

MARK SUTCH

aircargoweek.com

9 May 2017

17

ACW DailyNews and lines of business.

“The Transpacific and India markets are the ones with good momentum, though we need to be cautious about the potential impact of the new US administration on trade-flows. For Europe, we are finally seeing a silver lining with some stabilisation on the demand side,” Cathay’s Sutch said.

“Some good growth has been observed on trade-lanes such as Europe into Asia and Australia into Asia, driven by increasing demand of quality food and consumer products by the growing Middle Class in Asia,” Sutch adds.

India is also being watched by other players in the sector. Taiwan’s China Airlines acknowledged it is “assessing the prospect of adding another flight per week in the second quarter of this year,” to tap the market there. This comes after it opened a cargo route to last year to capi-

18

9 May 2017

talise on business opportunities, largely textiles and electronic goods, emerging from India.

That said no one is forgetting China, especially Malaysia Airlines, whose path ambitious carriers could do well to follow.

New destinations (Nanjing, Wuhan and Fuzhou) and MAB Kargo’s additional freighter route (Chongqing and Guangzhou) to China, will

accelerate, the company believes, expansion of their network throughout the China region.

“The new flights to Chongqing, on the other hand, houses major electronic companies, including Apple, Asus and Hewlett-Packard.

This new route would allow for the facilitation of high value electronic goods to South and East Asia countries via Kuala Lumpur acting as a transit hub,” MAB Kargo chief executive officer, Ahmad Luqman Mohd Azmi says.

On the more established transpacific routes the mood is upbeat. Japan’s All Nippon Airways (ANA) is expecting strong demand on Asia Pacific routes for both passenger and cargo. This in turn will deepen ANA’s “dual hub” strategy.

Dual Hub is where Haneda becomes a transit point between domestic and international routes while Narita is a connection between Asia and the Americas.

Among sectors ANA, like others, is expecting to service more of are (in order) automotive, healthcare and e-commerce shipments. February this year saw ANA start a Narita-Mexico route to capture the value emerging in the Mexican car industry and the Tokyo-based carrier plans to move more of these cargoes.

A trend flagged by ANA is an inbound one, one more relevant to the carrier’s North East Asian base is an increasingly wealthy and aging populations which are expected to boost the inbound

be amongst the key drivers for Changi’s cargo throughput but its focus is on capturing more value from the pharmaceutical sector.

Global spending on pharmaceutical cold chain logistics is also projected to grow at 8-9 per cent a year, totaling $16.7 billion by 2020, Lim said reporting figures from pharmaceutical commerce.

Of this Asia is expected to account for the lion’s share with more than $1.2 billion of cold chain growth through 2019. In Singapore, pharmaceutical companies such as Novartis, GSK, and Amgen have been busy investing in projects, further boosting the pharmaceutical cargos over the next two years, Lim adds.

“With the abovementioned trends, coupled with its specialised temperature controlled facilities, Changi Airport is in a strategic position to serve the logistics players looking to transport pharmaceutical cargo into the region,” Lim says.

That is not saying other sectors being forgotten. Another one Singapore is watching is aerospace. The city-state’s own aerospace industry is expected to expand significantly with it having become a leading aviation hub in the Asia region contributing to over a quarter of the region’s maintenance, repair and overhaul (MRO) output.

The Asia Pacific’s plane fleet is expected to triple to about 13,500 aircraft by 2013, Lim pointed out. “These will drive cargo volumes intra-Asia, and along Asia-Europe and Asia-America routes,” Lim adds.

Despite the uncertainties and the unpredictable qualities of the year these signs are encouraging for the overall industry although there is still a way to go before full cargo planes are flying in clear blue skies. Yet hope is there.

“Competition will remain fierce,” warns Cathay’s Sutch, before adding “but we should

demand for pharmaceutical and medical equipment products.

ANA plans to “further enhance utilisation of our new fixed temperature product, “PRIO IB.” This uses an ice battery instead of dry ice and ANA hopes it will capture more pharma business because of it.

In South East Asia the view is similar albeit with a slightly different emphasis and ordering of priorities. Singapore’s Changi is also optimistic that sectors such as e-commerce, aerospace and pharmaceuticals will continue to grow and

expect more stable volumes from the major markets that we serve. We should also be seeing year-on-year improvement on yield, given a better balance in demand and supply; also as a result of operation costs increasing with the rise in fuel price.”

This is already happening. “MAB Kargo’s performance has improved in 2016, and is close to breaking even in 2017. Yield increased 6.9 per cent YOY in January of 2017, but down from 17 per cent growth in December 2016,” MAB’s Kargo Azmi explains.

aircargoweek.com

ACW DailyNews “From shippers to forwarding agents to airlines, improvements to common quality standards and the development of success milestones that are readily available and utilised by stakeholders is a core attribute that Cargo iQ brings to the industry,” Gessner suggests.

Cargo iQ transformation well on track and paying off for members

MASTER OPERATING PLAN

ARIAEN ZIMMERMAN

The revamp of Cargo iQ has generated greater confidence in the quality of air cargo processes, but there is still a lot of work to be done. Graham Newton reports.

Air cargo’s master operating plan (MOP) is at the centre of the quality control project. Cargo iQ acts as the custodian of this industry-endorsed, standard description of air cargo transportation.

Having a MOP means industry standards and best practices are easier to identify. This is turn facilitates discussions with regulators and other partners in the supply chain.

“The MOP describes the key processes involved in transporting air cargo from shipper to consignee in a systematic and harmonised manner,” Gessner explains. “The plan is integral to Cargo iQ as it provides the supply chain with the first, industry-endorsed, standard description of the end-to-end process of transporting cargo. This acts as the foundation for standard developments in markets and facilitates discussions with regulators

C

argo iQ is aiming high. The project plans to create and implement quality standards for the worldwide air cargo industry, monitoring, measuring and optimising the end-to-end process.

A quality management group forms the bedrock of this strategy. “It was developed to assist airlines and freight forwarders monitor and benchmark delivery performance against their service promise, define common processes and procedures and promote best practices,” notes Cargo iQ executive director, Ariaen Zimmerman.

“The IATA specialist interest group has close to 80 members, demonstrating the importance that that the cargo industry places on Cargo iQ,” he adds. “The group work together to define the processes behind the air transport of cargo to measure success and continuously improve the value of airfreight for customers.”

The Cargo iQ initiative places a measurable quality management system between freight forwarders and carriers, and contributes to further improve the service of the ground handlers FRANCO NANNA, CARGOLUX AIRLINES HEAD OF NETWORK SUPPORT

Unisys is one of those members. Unisys head of sales EMEA for transport and logistics, Christian Gessner notes the company has been involved since 1997. He believes the project allows the development of technological and IT solutions to be built with the industry at heart.

aircargoweek.com

9 May 2017

19

ACW DailyNews

Cargo iQ helps reaching operational excellence through agreed standardised means FRANCO NANNA, CARGOLUX AIRLINES HEAD OF NETWORK SUPPORT

involve in the supply chain to improve operational success.”

The MOP features 19 main processes and 78 sub-processes and essentially provides a unique route map for each shipment. And each

route map has milestones or targets to which all partners must adhere. Failure from one or all partners to reach a target initiates an alert, potentially allowing recovery. Or, at the very least, a detailed record facilitates an analysis of

the problem leading to future improvements.

Because there is a single version of the truth – the data is consistent for all partners and processes – everybody is singing from the same hymn sheet. In theory, this smooths progress. By speaking the same language, Cargo iQ members can follow best practices and define common processes with partners in the supply chain.

CHANGE PROJECT

The challenge for Cargo iQ is to build on what it is has achieved to date. The transformation began with its rebranding from the Cargo 2000 project, the end of the millennium finally being acknowledged in 2016. The switch was designed to reignite the project and better reflect the improved data quality and business intelligence.

Gessner describes the change as a “positive edition to the portfolio” at a much-needed time for the not-for-profit member group.

The rebrand was effectively part of a larger change project, focused around what has become known as the smart data project.

Smart data is monitoring over 150 million lines of performance data annually, according to Zimmerman, and is centred on the industry, allowing members to further improve their processes and adding more value to the air cargo industry. Cargo iQ is also embarking on a new audit and certification scheme.

The sophisticated reboot has already worked to diversify and expand the global Cargo iQ membership, with new members signing up.

Recent additions include such large industry players as Emirates SkyCargo, Brussels Airport and Vienna International Airport.

Emirates SkyCargo, for example, announced it had joined the organisation as a full member having been an observer on the board. Divisional senior vice president for cargo, Nabil Sultan admitted the airline had been following Cargo iQ’s development over the years. “We are impressed with the solid initiatives it has developed, including the master operating plan, which was conceptualised to support the implementation of quality management processes and metrics,” he says. “With the rebranding of Cargo iQ and the launch of their strategic transformation program, we felt that the time was right to become a member.”

Other members are equally enthused by the

impetus being generated. All Swiss WorldCargo stations in the carrier’s network have been certified in accordance with Cargo iQ and these stations always rank highly in terms of published Cargo iQ results.

The carrier notes on its website that it “is convinced that the project helps improving the whole industry. The new smart data project is very important. Smart data will make us more efficient, more economic and, in the long run, also more sustainable”. Swiss WorldCargo concludes, therefore, it is “excited about the future of Cargo iQ”.

SMART DATA

While maintaining the momentum will require plenty of hard work, Unisys’ Gessner is confident the project can go from strength to strength.

“To further raise Cargo iQ’s profile in the industry a distinct focus on solution development, quality assurance and compliance advisory must continue to be kept front of mind,” he says. “The introduction of the smart data portal, which can allow the industry to compare reliability and performance rates in the market, is a prime example of this. By focusing on developing unique solutions, that bring together industry players towards a common goal, it will allow Cargo iQ to continue to play a unique and increasingly integral role in the industry.”

Gessner hopes to see more and more industry stakeholders becoming members, all with a common goal of developing industry standards and insight. “I also hope to see the smart data project, and its supporting applications and portals, playing an integral and incentivising role in the rise in member additions in the coming years,” he continues. “The portal plans to be wholly unique and provide a service not available in the same capacity elsewhere.”

Cargo iQ finally gives the industry a tool to measure performance versus promise.

Importantly, it was designed specifically with paperless cargo in mind, so Cargo iQ will really come into its own as e-cargo gathers traction.

Globally recognised standards should be a win-win for the industry and its customers.

They will also feed into air cargo’s continued development, influencing the direction it takes through performance metrics.

Cargo iQ in numbers •

• • •

20

9 May 2017

aircargoweek.com

82 members worldwide including airlines, forwarders, ground handlers, IT companies and airports 10 million airport-to-airport shipments measured in 2015 5.5 million door-to-door shipments measured in 2015 900,000 airport-to-airport and 500,000 door-to-door shipments measured monthly

Make it easy for prospective customers to find you

Bring business to your company without effort

www.azfreight.com is the world’s leading website for the global air cargo community. Over the last 12 months www.azfreight.com attracted *572,155 unique users in 986,259 visits and viewed 8.5 pages per session - an impressive 6.9 million page views! Almost 45% of these were returning visitors with an average time on the site of 7 minutes 3 seconds. www.azfreight.com can deliver impressive traffic and the industry’s decision makers directly to YOU! Help users choose your company above others by upgrading your online presence. It is a proven fact that more than 89% of web users will select from the first 10 companies listed on a search result... make sure your company is one of those!

An azfreight.com “Featured Company Listing” will place your company’s details at the very top of the search result.

Visit www.azfreight.com/demo for a full demonstration

• • • • • • •

About Us Tab Colour company Logo Company personnel details with photos and biographies Company news Live links to your own company email/web address Google location map Rich media presentations including your corporate video

Spring Special Offer!

3 year listing for the price of 2

Just £720/€820/US$900 for 3 years (normal price £1080 / €1230 / US$1350 - offer expires 30 June 2017)

For further information contact our sales team on: telephone: +44 (0)1737 645777 or email: sales@azurainternational.com

ACW DailyNews

Yield fall but volumes up for IAG

I

AG Cargo’s revenue dipped by 2.1 per cent in the first quarter (Q1) of 2017, with volumes growing but capacity increasing at a higher rate.

Commercial revenue was €256 million ($279.6 million), a 2.1 per cent decrease at constant exchange, while cargo tonne kilometres (CTK) were up 3.6 per cent to 1.36 billion.

Capacity grew 12 per cent during the period and yield was down 5.5 per cent to 18.73 cents per CTK. Chief financial officer, Lewis Girdwood describes the Q1 performance as “an encouraging start to the year”, with strong demand on Asia Pacific and North American routes.

He says demand from Asia Pacific grew due to sea freight constraints, saying: “With over 150 flights per week to and from 15 Asian destinations, we are well placed to work closely with our freight forwarding partners to help alleviate this pressure and ensure shippers’ supply chains remain uninterrupted.”

“Through the first quarter of the year we saw a 34 per cent rise in volumes from Europe to Asia Pacific when compared to the same period in 2016, with fashion, spare parts, fresh fish and leather goods performing particularly well.”

Girdwood says UK and European markets performed well, with strong North American demand from the perishables and aerospace sectors while Latin America struggled.

He says IAG Cargo is working on developing products, saying: “We are pleased with the development of our newest product, Critical, which has now surpassed 1000 shipments since its launch helping meet the demands of the emergency shipment market.”

For the second quarter, IAG Cargo will introduce a new website, and Girdwood says: “The second quarter of the year will see us introduce a new website for our customers, which will greatly simplify the way forwarders book airfreight with IAG Cargo. This will be accompanied by an enhanced proposition specifically for our smaller and medium-sized forwarders.”

High flying times for Budapest

Budapest Airport keeps flying in 2017 - handling a record 30,060 tonnes of cargo in the first quarter (Q1) of 2017, up 32.3 per cent on 2016.

Of these 30,060 tonnes, 20,455 of them were air cargo, up 20.8 per cent on Q1 of 2016. In March, Budapest handled 11,536 tonnes, up 33.3 per cent year-on-year, including 7,864 tonnes of airfreight (+20 per cent).

Budapest has welcomed new freighter flights from Qatar Airways Cargo and increased services from Cargolux and Turkish Cargo and more belly capacity from Emirates Airlines and Air China.

Budapest Airport director of property and cargo, Rene Droese says the airport is embarking on a new phase for cargo, and has seen 40 months of continuous growth.

He adds: “We are pleased to support developing companies in Hungary across all sectors, including the automotive, electronic, communication, pharmaceutical, biotech, machinery, medical equipment, and live animal industries. The forwarders transporting this cargo are keen to find new cargo routes and access more direct transport options.”

The new warehouse and office complex for DHL Express and TNT Express nears completion as part of the HUF50 billion ($174.7 million) “BUD:2020 Development Programme”, which will see construction of a 'Cargo City'.

The warehouse and office complex, totalling more than 18,000 square metres will open this summer.

The Cargo City, due to be completed in 2019, will have a handling capacity of 150,000 tonnes a year and will not only expand handling capacity, but provide centralised cargo operations, customs clearance and certified storage for special cargo with a focus on cool chain goods.

22

9 May 2017

aircargoweek.com