Payload Asia | April-May 2023

150 Orchard Road, #07-05 Orchard Plaza, Singapore 169206

EDITORIAL/PUBLISHER

Keen Whye Lee Publisher publisher@harvest-info.com

Giullian Navarra PLA Editor editor-pla@harvest-info.com

OPERATIONS

Mari Vergara Head of Operations manager-ph@harvest-info.com

MARKETING Lali Singson Marketing Manager mktg@harvest-info.com

SALES

Simon Lee Hong Kong, Europe and Middle East sales@harvest-info.com

Chua Chew Huat Asia Pacific sales-sg@harvest-info.com

Matt Weidner North America mtw@weidcom.com

TECHNICAL SUPPORT

MJ Magsalin tech@harvest-info.com

GRAPHIC LAYOUT

Tyrone De Los Santos ronds.creatives@gmail.com

EDITOR’S NOTE

Dear reader,

In this issue, we pay tribute to the hardwork and dedication that defines the companies and people involved in airport and ground handling operations. First we take a look at Dubai-headquartered dnata to find out how the company spent the last 12 months after it expanded its team and made strategic investments in advanced infrastructure and technologies. Turn to page 18 to find out more.

On page 22, we catch up with Changi Airport’s Lim Ching Kiat—fresh from the recently concluded World Cargo Symposium in Istanbul—to learn what the air hub’s top priorities are in its overall cargo direction.

With the rest of the air cargo supply chain taking off with digitalisation and automation efforts, the stage has been set for units on the ground to showcase their capabilities and take action towards a sustainable future. In our Insights section, we take a look at the technology behind the popular ChatGPT as Armin Haller, Head of Centre of Excellence for Data and AI at Crayon APAC runs us through the practical use cases of artificial intelligence and language learning models for the airline industry.

In separate interviews, we also talk to leading software and IT providers for airports and ground operations to know more about the importance of cargo community systems in the transport and logistics sector. Flip to page 26 as Nallian and Kale Logistics Solutions share their insights on this topic.

This issue also covers the latest industry news on carriers, airports, cargo handlers and forwarders, including a brief coverage of the World Cargo Symposium in Istanbul and the Ground Handling Conference in Dubai. There’s also a special feature on Hactl and an interview with jet biofuel supplier Neste. Enjoy digesting the pages with a cold brew, and look out for the issue on e-commerce and logistics in July.

Giullian Navarra Chief Editor

How dnata is reconnecting a better world

IATA Ground Handling Conference makes stop in Dubai

Silk Way West Airlines starts regular flights to Houston

Singapore Changi Airport outlines top priorities for cargo amidst soft demand

Soaring higher: How AI and LLMs are transforming the airline industry

Insights: What are air cargo community systems?

Hong Kong International Airport retains top cargo spot

Maastricht Aachen Airport begins €35.3m upgrade DB Schenker opens logistics centre

South Korea

cargo.one enters China with Hongyuan Group Challenge Group makes ground in e-commerce

How dnata is reconnecting a better world Hactl goes beyond the necessary steps towards sustainability

Hong Kong to host World Cargo Symposium in March 2024

Japan Airlines to introduce dedicated freighters

Singapore to establish SAF supply with Neste refinery expansion

Lufthansa Group sets Frankfurt’s e-commerce hub trajectory

that meets both the data protection and regulatory requirements of online trading.

The software solution makes it possible to clear large volumes of e-commerce shipments through automation. The solution is already capable of meeting the requirements of ICS risk analysis, including 1-to-1 referencing, and is currently being adapted to meet the requirements of ICS2.

Together with subsidiaries heyworld and CB Customs Broker, Lufthansa Cargo is actively driving forward the expansion of the e-commerce services

at Frankfurt Airport. CB Customs Broker, who has 90 percent digitised its customs clearance processes, has already developed its own software

Japan Airlines to introduce dedicated freighters

For the first time in 13 years JAL will operate its own freighter. Japan Airlines wants to further grow its cargo and mail business and has

announced that it will introduce three Boeing 767-300ER freighters for dedicated cargo operations by the end of this year.

CB Customs also formed a new joint venture with GEORGI Handling to expand the business at the new eCommerce terminal in Cargo City South, particularly to airlines from Asia. Lufthansa’s e-commerce logistics startup heyworld meanwhile is also expanding its capacity at Frankfurt’s Cargo City Nord.

JAL has been securing revenues reliably and efficiently in the air cargo business by using cargo space on passenger flights and chartering other companies’ freighters in response to demand. With the introduction of the freighter, the airline will operate under a new business model that will capture stable demand, improve aircraft utilization ratio and ensure profitability.

JAL said it will begin operating international flights mainly to East Asia from the end of this year. It will also operate domestic flights in the future to improve aircraft utilization and maximize cargo loading ratio, whilst flexibly offering charter and non-scheduled flights.

Etihad introduces fourth cargo gateway into China

Etihad Cargo has added a fourth gateway destination to its Chinese network with the introduction of weekly flights to Wuhan. The airline operated its inaugural flight to Wuhan Tianhe International Airport on 29 April 2023.

The airline currently offers five passenger flights to Shanghai, Beijing Daxing and Guangzhou each week. With the commencement

of two weekly freighter services between Abu Dhabi and Wuhan, Etihad Cargo will operate a total of 10 freighter services to China, offering an additional 100 tonnes of cargo capacity into the Hubei Province each week. This brings the carrier’s total cargo capacity for China to 1,000 tonnes per week, including 850 tonnes of cargo capacity for Shanghai offered via eight weekly freighter services and two passenger flights.

It’s ‘full steam ahead’ for Emirates SkyCargo

Emirates SkyCargo has added two Boeing 747-400 freighters on lease to its freighter fleet, showing its strong confidence in a global cargo market riddled with volatility. Secured on a long-term wet-lease basis, the two Boeing 747-Fs will complement the airline’s fleet of 11 B777 freighters, and are currently deployed to Chicago three times weekly, and to Hong Kong nine times each week.

The cargo division of Emirates, is expecting 15 more freighters to join its fleet from announced orders and its freighter conversion program, plus belly-hold capacity from new passenger aircraft deliveries starting in late summer 2024. The airline

Silk Way West Airlines starts regular flights to Houston

Silk Way West Airlines has announced the launch of new weekly flights to Houston from its home base in Baku, Azerbaijan, starting 12 April. The airline will operate the flights to George Bush Intercontinental Airport (IAH), one of the busiest airports in the United States. Silk Way West Airlines will also continue to operate regular flights to Chicago and Dallas, expanding its growing route network

announced record profits amounting to US$2.9 billion reversing the recorded loss in the previous year.

“The two new 747-Fs which we have leased will give us immediate capacity, while we wait for delivery of 5 new 777Fs in 2024 and 2025, and 10 777-

in the Americas.

“Our growing presence in the Americas demonstrates our commitment to providing reliable and efficient cargo solutions for our

300ERs to roll out of our conversion program over the next 5 years. We believe even these additional planes will not be sufficient. By then, we’ll have the MRO set-up to quickly and efficiently scale-up our freighter conversion program if we need to,” the airline noted.

customers in this region. This new route will also enhance our ability to connect customers to key markets in Central Asia and the Middle East,” said Fadi Nahas, Vice President Commercial of Silk Way West Airlines.

Cathay Cargo delivers enhanced mail solution

Cathay Cargo has enhanced its integrated mail platform with Cathay Mail, a refined digital solution that reenvisages the mail-shipment process, generating greater transparency for post offices like Hongkong Post and providing the visibility that customers expect.

The airline’s refreshed “mail as cargo” solution integrates mail-handling data with air cargo systems using the postal air waybill. This use of electronic data interchange (EDI) technology removes much of the previous paperwork and gives both

origin and destination post offices, and designated operators, more visibility of shipments down to mail bag (or receptacle) level.

This information also enables Cathay Cargo to manage capacity against actual volumes of mail on flights, so it can make allowances for

surges in ad hoc demand, or make unused space available for other cargo. Added benefit go to mail heading to Europe where, by making information available in advance, mail shipments will be compliant with the European Union’s new ICS2 customs requirements, which are being introduced this year.

Air freight at Changi slips as travel picks up in Q1

its top five markets were Australia, China, Hong Kong, India and the US.

On the passenger side, Changi handled 4.63 million passenger movements in March 2023, or over 82 percent of its pre-Covid traffic in March 2019, the first time since the pandemic that it has crossed the 80 percent mark. Aircraft movements, which include landings and takeoffs, totalled 26,000 or around 81 percent of the level seen in March 2019.

For the first quarter, air freight movements at Changi totalled 417,000 tonnes, sliding 9 percent year-on-year. The group said demand

remained soft, especially in the first two months of the year, no thanks to global economic uncertainty and inflationary pressures. For the period,

In Q1, Changi Airport clocked 13.0 million passenger movements, with 74,000 aircraft movements registered for the same period. The top five traffic markets for the quarter include Australia, India, Indonesia, Malaysia and Thailand.

Maastricht Aachen Airport begins €35.3m upgrade

Maastricht Aachen Airport (MST), considered the second largest cargo hub in the Netherlands, has started renovation work on its runway as part of an €100-million infrastructure investment plan over the next few years.

The regional airport is investing €35.3 million in its runway upgrade between May and June in anticipation of a project to extend its operational

ACI Asia-Pacific, China Civil Airports ink memo

length to 2,750 metres by January 2025.

MST is the European base for Turkish Cargo and Royal Jordanian, and the regional airport serves as an online station for Emirates, Qatar, and Saudia. The airport is free of slot restrictions, offers full Fifth Freedom of The Air rights, and has its own maintenance, repair, and overhaul facilities.

the two organisations to promote regular exchanges of information and economic data, assessment of airport service quality, customer service best practices and capacity building initiatives by establishing communication mechanisms.

Airports Council International (ACI) Asia-Pacific and the China Civil Airports Association (CCAA) have signed a memorandum of understanding to

strengthen cooperation and promote excellence in airport operations and management. The MoU is expected to enhance the synergy between

Within this framework, ACI AsiaPacific will work with CCAA to create awareness around environmental issues through the former’s Airport Carbon Accreditation and the latter’s Airport Carbon Evaluation programmes. The two groups have agreed to share know-how on several business areas, including best practices to protect the environment, technical guidelines or standards on passenger health, public safety and customer services in the industry.

Hong Kong International Airport retains top cargo spot in 2022

Hong Kong International Airport (HKG) retained the top position as the world’s busiest cargo airport in 2022, despite sliding 16.4 percent year on year in air cargo volumes with 4.2 million tonnes handled for the year.

Taking the second and third spots were Memphis Airport (MEM) and Anchorage Airport (ANC), which saw volumes slip as much as 9.8 percent and 4.3 percent, respectively. Shanghai Pudong Airport ended 2022 in 4th position, with volumes down 21.7 percent year on year.

Hong Kong airport is in the midst of expanding with a new third runway. Authorities said an array of projects are currently underway to enhance

Dallas Fort Worth airport to grow cargo operations

Dallas Fort Worth International has started a comprehensive redevelopment of the airport’s 19th Street cargo facility, which will enhance the air hub’s ability to process international e-commerce and increase overall cargo capacity. The 19th Street Cargo Redevelopment Project is slated for completion in late 2024 and will add approximately 350,000 square feet of new warehouse space and seven ADG VI (large cargo aircraft) parking positions.

The project will continue DFW’s growth in cargo operations whilst applying state-of-the-art technology to address staff shortages, airport congestion, and sustainability whilst increasing safety, efficiency, and security across the cargo ecosystem. DFW said cargo handlers Menzies Aviation and dnata have been tentatively selected to operate new cargo warehouses. The two will join the design building process, subject to approval from the board.

Bournemouth greets new air freight route from China

Bournemouth Airport’s Cargo First is celebrating the start of a new regular service between China and the United Kingdom as part of a strategic partnership to grow the airport’s cargo operations. The new service is operated by Bournemouth-based European Cargo using its fleet of all-cargo A-340 wide-bodied freighters, each with a capacity of 70 tonnes.

Shenzhen Sharing Express LogisticTech Ltd (SSELT) has launched the first all-cargo route between Chengdu Shuangliu International Airport (CTU) in China and

Bournemouth Airport (BOH) in the United Kingdom. The company will initially offer three flights per week, with plans to gradually increase the frequency to five flights per week.

its air cargo services, including the expansion of DHL’s Central Asia Hub, the development of a premium logistics centre with Alibaba logistics unit Cainiao Network, and the introduction of new sea-air intermodal cargo transshipment model between Dongguan and the airport.

The new route has received support from the China Council for the Promotion of National Trade and China Post, offering a solution for south west China’s e-commerce sellers to reach the UK market. SSELT is also targeting UK exporters on return legs, supporting the flow of goods to the Chinese market.

Online orders to drive demand for Hong Kong’s new cold storage zone

Hacis, the logistics arm of Hactl, has opened a new climate-controlled facility to cater for the increasing volumes of perishable and temperature-sensitive e-commerce shipments transiting Hong Kong. The new ‘cool zone’ is located within the company’s fulfilment centre and provides a climate-controlled

handling solution for goods such as fresh fruit and chocolates.

The company said cargo arriving in Hong Kong can easily be processed and delivered to local customers on the same day. Once cargo is transferred to the facility, staff perform all required processes such

as pick and pack and labeling, before loading the cargo onto temperaturecontrolled vehicles waiting at the dedicated truck docks. Individual orders can also be delivered direct from to the end-customer by courier.

The cool zone offers a handling area with temperatures down to 15°C and can integrate with agents’ own IT systems to feed direct status updates and stock information. It can also provide storage for chilled, fresh and frozen commodities ranging from +25°C to -25°C. Early users of the facility have been importers of fruit, yogurt, snowy mooncake and chocolates, with most traffic inbound from Asian countries. Typical shipments comprise 100 pieces weighing between 1 to 5 kilos each, Hacis shared.

Worldwide Flight Services welcomes DSV at Liege Airport

DSV has awarded Worldwide Flight Services (WFS) a long-term European Gateway cargo handling contract at Liege Airport, where WFS will provide warehouse handling for cargo carried onboard all-cargo charters and commercial freighter services.

Supported by direct airside access and ramp services, the DSV Liege Gateway will consolidate and deconsolidate cargo for all European DSV entities to and from the company’s 15 most used trade lanes,

including Hong Kong, Johannesburg, Dubai, and New York JFK. Aside from general cargo, the hub will be developed for special cargo, including pharmaceuticals and perishables.

The new operation is expected to complement the successful DSV Gateway hub in Luxembourg and will see WFS take responsibility for import and export cargo utilising capacity booked by DSV through Liege and on flights connecting through other surrounding airports.

dnata’s Air Dispatch achieved loadsheet milestone

Air Dispatch, part of dnata and supplier of centralized load control (CLC) services, celebrated the production of its seven millionth loadsheet in April. The milestone document was issued from the

Prague facility after it ensured the safe and efficient operations of a A330-300P2F cargo flight operated by Titan Airways on behalf of Geodis.

The dnata unit coordinates with

stakeholders at all stages of the operations and provides 24-hour support for weight and balance issues. It can also coordinate transit loads well before the aircraft arrives, allowing for efficient turnarounds and improved on-time performance.

Air Dispatch has been offering quality and reliable CLC services to both legacy and new-generation carriers since 2007. Every month, the company’s 170-strong team produces over 60,000 loadsheets for 19 airlines operating from 392 airports.

DB Schenker opens logistics centre in South Korea

DB Schenker has its crosshairs on Northeast Asia as the German transport and logistics operator opened a 40,000-sqm global distribution and logistics centre at the Incheon Free trade zone in South Korea.

The KLC 2 warehouse, as it is called, is said to be one of the largest investments for DB Schenker in the region. The facility offers more than 40,000 square meters of storage

space and features TAPA A, LEED GOLD certification, and adhered to NFPA standards.

The land area is 13,440 square meters, with one utility floor beneath the ground and seven floors above, including three mezzanine floors, which can be used for storage and logistics operations, including ancillary space for amenities and offices. Total gross floor area is 40,325 square metres.

Geodis boosts pharma offering in Asia, Middle East

Logistics operator GEODIS is strengthening its capabilities in transporting pharma and healthcare shipments by air in Asia Pacific and the Middle East with certifications across its network. The company received the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification for its locations in China (PVG), Indonesia (CGK), India (DEL and BOM), South Korea (ICN), Thailand (BKK), United Arab Emirates (DXB) and Singapore (SIN).

GEODIS said its customs brokerage and contract logistics services are of particular interest to pharma and healthcare decision-makers in

the region, citing its warehouses in Singapore, which are GDP, GMP, and ISO13485 compliant.

Yusen Logistics continues its industry commitment to sustainable aviation fuel

Yusen Logistics has started a new service to offer the use of sustainable aviation fuel for air cargo starting April. The logistics company has been actively developing sustainable initiatives including the use of SAF since last year, and the new “Yusen Book-and-Claim” service can now be an option for its customers.

Yusen Logistics in late-March signed a contract with Lufthansa Cargo for the use of SAF from the month of April. It also renewed its commitment with the Eco-Skies Alliance program to promote the use of SAF together with United Airlines. The company aims to achieve net-zero emissions for logistics materials, other waste, and greenhouse gasses by 2050.

cargo.one enters China with Hongyuan Group

The company is rapidly becoming an important operator for air cargo services between destinations in China and across Europe and South America. The move is expected to boost sales and rapidly accelerate the digitalization of its sales processes.

Hongyuan Group has partnered with cargo.one in a landmark deal to offer its available capacity for instant booking on the air cargo marketplace. With over 20 years of professional

cargo logistics service experience, the company is well known to freight forwarders for its high-frequency air cargo flights between China, Europe and the United States.

Hongyuan will offer self-owned capacity on B747-8F and A330-200F aircraft, including the option of booking up to 6 meter shipments, on cargo.one. The company has been building up its air cargo services since 2018 and is looking to cargo.one fast track its digital sales capabilities. The Chinese logistics operator will offer capacity to important destinations in China including Shanghai, Beijing and Chengdu.

Dachser announces joint venture in Japan

DACHSER has signed a joint venture agreement with Japanese logistics company Nishi-Nippon Railroad and will open its first office in Tokyo at the end of 2023. The joint venture, DACHSER Japan K.K., will offer air and sea transport and will be connected to the forwarder’s close-knit overland transport network in Europe. It will be led by Yves Larquemin, managing director of DACHSER for South Korea.

DHL Global Forwarding tops up with Turkish Cargo in Istanbul

DHL Global Forwarding is strengthening its air cargo partnerships in Istanbul and has signed a memorandum of understanding that will extend its operations at Turkish Airline’s modern SMARTIST cargo facility.

Turkish Cargo supports DHL forwarding unit’s global hub concept with its vast knowledge and advanced operational capabilities at Istanbul Airport. Based on the MoU, DHL Global Forwarding will leverage SMARTIST, the mega cargo facility of Turkish Cargo at Istanbul Airport, as one of its global hubs. DHL said the cooperation will not only further improve each other’s operational efficiency, but also enhance Istanbul’s potential to become a leading logistics hub for the world. The two inked the deal at the IATA World Cargo Symposium held in Istanbul in April.

CargoAi’s new feature to drive ‘paperless’ transition

CargoAi has launched a new feature to support its freight forwarder users towards paperless transition, which could potentially improve efficiencies in the procurement process. The company has rolled out an FWB/FHL feature on CargoMART that will allow users to send all information required for ISC2, to comply with the new European customs standards. The feature is available for airlines on the air cargo booking marketplace.

Maersk Air Cargo starts new USChina service

Maersk’s new ‘customer-backed’ air corridor between China and the US is expected to plug a connectivity gap between the world’s two largest markets for ocean customers, with solutions for time-sensitive and highvalue cargo via new air services.

Earlier in April, Maersk Air Cargo introduced two new air freight services with regular flights linking the United States with China. The company commenced with two weekly flights between Greenville-Spartanburg International Airport (GSP) and

The move comes as airlines and forwarders look to achieve the full use of electronic air waybills (eAWBs). IATA urged the industry to adopt 100% eAWB by the end of 2022, but this did not materialise. CargoAi aims to bridge the gap between paper and digital AWBs by facilitating the messaging for small- and mediumsized freight forwarders. Earlier this year, the company launched its own payments solution CargoWALLET, as well as emissions reporting

Shenyang Taoxian International Airport and two weekly flights between Chicago Rockford International Airport and Hangzhou Xiaoshan International Airport (HGH). Both services will be increased to three weekly flights from May 2023, the carrier noted.

The two new routes will see three newly acquired Boeing 767-300 freighters in Maersk Air Cargo’s fleet put to action,

tool Cargo2ZERO. These initiatives demonstrate CargoAi’s commitment to innovation in the air cargo industry.

operated by Miami-based cargo airline Amerijet International.

Maersk Air Cargo started operations on March 20 with three weekly scheduled flights between Billund (BLL) and HGH. It also recently launched a new air freight service with regular flights between GSP and Incheon in South Korea (ICN), also operated by Amerijet International.

Chinese master loaders join WebCargo by Freightos

WebCargo by Freightos has partnered with three of China’s leading master loaders to offer global forwarders real-time access to Chinese air cargo export capacity. This innovation allows forwarders on WebCargo across Europe and North America to compare prices, book and pay across Sinotrans Global E-commerce Logistics (Sinoair), CIMC Anda Shun International Logistics (CIMC Anda Shun) and Sinotech Logistics (Sinotech).

This master loader capacity complements capacity that is already

available on WebCargo directly from major airlines, giving freight forwarders maximum choice in the critical ex-China routes, and saving time and money. Unlike many airlines, these master loaders do not require forwarders to be IATA cargo agents.

Historically, China’s master loaders would offer services to local forwarders who would then resell capacity to overseas forwarders looking to import goods from China. All this will change with the new announcement, Freightos said.

JD Airlines widens its presence in Beijing

On April 26, JD Airlines officially launched a new air cargo route between Beijing and Shenzhen with

a fully loaded B737-800BCF aircraft landing at Beijing Daxing International Airport (PKX). The airline will be operating the route six days a week, with a daily transportation capacity of up to 20 tonnes, of high-end goods offering capacity for high-end goods like fresh produce, fashion and luxury products, medicine and medical products. The newly launched route will also offer charter capacity for seasonal cherries during summer

GEODIS reveals e-commerce logistics site in the United Kingdom

GEODIS has unveiled its newest eLogistics site in Coventry, United Kingdom. The 7,000-sqm site, which opened in April, has the capacity to store more than 500,000 SKUs and can process up to 5,000 orders per day.

GEODIS eLogistics, which was launched in 2020, supports retailers in outsourcing their logistics operations. It offers a complete logistics solution for order preparation and personalisation, inventory

JD Airlines plans to strengthen its collaboration with PKX and will continue to expand its air freight network and improve the supply chain efficiency for neighboring industry belts. Launched in August 2022, the carrier works closely with JD Logistics’ intelligent logistics parks, central warehouses, satellite warehouses, and sorting centers to form an integrated logistics warehousing and distribution network.

optimisation, transport organisation and returns management. The company’s logistics solution allows e-commerce companies to efficiently outsource their logistics without the need for a large financial investment, thanks to shared multi-client warehouses and a more flexible contractual commitment.

GEODIS has some 40,000 square metres of warehousing space dedicated to this offering. It now operates a total of six eLogistics platforms, scattered across the US, France and the United Kingdom, with space also available in Germany, The Netherlands and Italy.

Challenge Group makes ground in e-commerce

Challenge Group’s activity out of China is currently based on e-commerce demand which already makes up 30 percent of its business at Liège airport. ULDs from China’s leading e-commerce vendors, arriving from Zhengzhou and Hong Kong, are transferred to Challenge Handling’s dedicated second line warehouse, where they are broken down to house air waybill level and then built-

up according to their destination country.

Challenge Logistics can then provide the middle-mile service to the distribution center at destination, where the last-mile provider takes over domestic deliveries. It also offers customs clearance at Liege. When it comes to handling lithium batteries which can be found in

modern electronics, the group’s Challenge Airlines can transport items containing UN3480 and UN3090.

With all this in place, Yossi Shoukroun, CEO of Challenge Group, said the next logical step to develop an end-to-end solution is to expand in China. “Having noticed the change that is taking place in the supply chain business model in terms of stock management and delivery times, we are looking at new markets, China in particular. Our new, more agile fleet of four B767F could be deployed to link China and the Indian Subcontinent or Africa.” Shoukroun added that discussions are already underway with a major Chinese airport partner regarding a warehouse location. “A Chinese base will help us to further develop our end-to-end solution and reduce the delivery time to the final customer.”

DHL Express orders converted freighters from Mammoth

DHL is prioritizing the modernization of its long-haul fleet, including the replacement of older planes, and on 20 April, the company ordered nine Mammoth-converted B777200LR freighters from Jetran. The first cargo aircraft will be delivered in 2024, with the remaining aircraft to be supplied until early 2027.

The company said ordering converted freighters with a shorter useful life provides an efficient bridge between current and new

airframe technologies, like that of new generation wide-body freighters such as the B777-8F and A350F.

DHL cited similar characteristics between the Mammoth-converted

B777-200LR freighter and the production freighter in terms of payload capacity (102 tonnes) and range (9,200 kilometers). From 2018 to 2022, the express operator ordered 28 new B777-200F freighters from Boeing, of which 18 are currently in service. The remaining aircraft will be delivered from 2023 to 2025.

Cainiao plans air cargo centre at Shenzhen Airport

Cainiao Network has partnered with Shenzhen Bao’an International Airport to establish an air cargo centre to support growing crossborder e-commerce parcel volumes from China to Latin America. The new flights are launched in partnership with Atlas Air and will operate twice a week, with a loading capacity of over 220 tonnes per flight. The new service will accommodate various product categories ranging from electronics to automobiles, with plans to launch more international cargo routes originating from Shenzhen.

The facility will play a key role in streamlining and optimizing parcel sorting and customs clearance

processes for import and export goods at the airport. Goods shipped via air from Shenzhen and the Southern China region can enter the airport directly for loading onto cargo planes. Transit goods can also be seamlessly transferred to other

ports and airports via the air cargo centre. This news follows Cainiao’s announcement of a three-year development roadmap for Brazil, with plans to launch nine sorting centers and 1,000 smart lockers across key cities.

Etihad teams up with China’s largest cargo airline

Etihad Cargo has again reinforced its commitment to the Chinese market with the signing of a memorandum of understanding (MoU) with China’s largest all-cargo fleet operator SF Airlines.

The new partnership will provide Etihad Cargo’s customers with greater connectivity to 25 domestic destinations in China via SF Airlines’ road feeder service trucking network. Etihad will utiltise SF Airlines’ network to transport cargo to other

destinations in China via the Chinese carrier’s mega hub at Wuhan in Hubei Province. Etihad Cargo will operate the flights on a Boeing 777 freighter, with services commencing on 28 April 2023 in line with this partnership.

The memo is the latest step by Etihad in expanding its cargo operations in China. In February 2023, the carrier launched an additional direct freighter service to Shanghai, increasing the total number of freighter flights per week to eight.

Qantas to promote Vanessa Hudson as next chief

New Atlas Air chief to take the helm in June

Delphine Perridy Boile joins Envirotainer

Coming in the next issue: E-Commerce and Last-Mile Delivery

Payload Asia is set to release an issue on e-commerce and last-mile delivery to give an indepth look at the leading individuals and companies that are setting the bar in this fastgrowing vertical for air cargo professionals and logistics operators across the globe

We are calling on air cargo stakeholders, freight forwarders, valued-service providers, supply chain specialists, logistics software suppliers and cargo drone operators who are looking to make a global mark in the ever-evolving e-commerce and last-mile delivery landscape.

Leverage on the Payload Asia platform to enhance your messaging and branding, and get to promote and highlight your unique products and services through ad placements and advertorials, alongside editorial content on the following sections:

MATERIAL DEADLINE: 12 JUNE 2023

Singapore to establish SAF supply in Asia Pacific with Neste refinery expansion

Neste is strengthening its position as world’s leading producer of sustainable aviation fuel or SAF with the announced completion of its €1.6 billion refinery expansion in Singapore in May. The energy company has established a supply chain to Singapore Changi Airport to make neat SAF available to regional and international airlines. It also has other renewable energy products that can be used on the ground to support the wider industry’s sustainability targets. In this interview, the company gives us a rundown of its operations and plans in Asia Pacific as it looks to power the next generation of transport modes in the air and on ground.

How would you describe the current demand for SAF in Asia Pacific?

The demand for SAF is accelerating globally as well as in the Asia Pacific region. We see increasing demand for SAF from both Asia Pacificbased and global airlines, as well as corporates who are looking for opportunities to reduce the

emissions of their business travel or air freight by using SAF.

Our sustainable aviation fuel (SAF) has been used in the Asia Pacific region since October 2020. The first delivery of SAF was to ANA of Japan in collaboration with ITOCHU Corporation. In February 2022, Neste expanded the collaboration with ITOCHU, which became a branded distributor of Neste MY Sustainable Aviation Fuel in Japan, delivering SAF at the Haneda and Narita airports for both domestic and visiting carriers, serving since then carriers like Japan Airlines and Etihad.

In November 2022, Neste, ITOCHU and Fuji Oil collaborated together to establish a supply chain for local blending of SAF in Japan. Then, in April 2023, Neste, ITOCHU and Fuji Oil worked together to deliver locally blended SAF to Chubu Centrair International Airport as part of a demonstration project of the Civil Aviation Bureau of the Japanese Ministry of Land,

Infrastructure, Transport and Tourism. Chubu Centrair is the third airport in Japan where Neste MY SAF is available.

Other Neste customers include for example Singapore Airlines at the Singapore Changi airport, Nippon Cargo (supplied at Amsterdam Schiphol airport), Air New Zealand at the Auckland Airport, and Malaysia Airlines at the Kuala Lumpur International Airport. In February 2023, Neste made its first delivery of Neste MY SAF into Australia in collaboration with Airbus, Safran and Microflite for use at the Avalon Airshow.

With the expanded capacity, how many flights can be powered by SAF each year?

We are optimistic that with the expanded capacity, it’s also sending a strong signal to airlines in the Asia Pacific region and globally. In fact, SAF can be used safely in any type of aircraft and it actually has already been used on more than 450,000 flights since 2016 according to IATA.

Can you share more about where waste and residue raw materials will be sourced?

We source wastes and residues globally for our renewables refineries located in Finland, The Netherlands and Singapore. Neste has an extensive raw materials portfolio, which provides us flexibility to meet varying market and customer demands and requirements.

We use a wide variety of sustainablyproduced raw materials each year to produce our renewable products at our renewables refineries. Proportions of individual raw materials in Neste’s refining vary from year to year, depending on their availability, price, and specific market requirements, for example. Singapore is our regional hub for raw materials sourcing to support the increased production capacity.

We have established our first innovation center outside of Finland in Singapore. The new pre-treatment facility has a higher capacity and is capable of processing a wider range of more challenging raw materials.

How will Neste ensure stable supply once takeup picks up?

Asia Pacific is the world’s largest aviation market, and Neste SAF is already in use by airlines in Singapore, Japan, Malaysia and New Zealand. Our SAF production in Singapore and an integrated SAF supply chain into the Changi airport enables us to further grow the availability of our product for Asia Pacific and international airlines in Singapore, in the region itself as well as globally.

What other products are you actively promoting in the region?

Neste Renewable Diesel (NRD) has also made inroads into the Asia Pacific region since 2020. We are working with selected partners and industry leaders in Singapore on trials using Neste renewable diesel.

Neste is working with capable distributors like Itochu in Japan, Interion in Singapore and Refueling Solutions in Australia to reach end users. Seibu Bus is an example of an end customer using Neste MY branded renewable diesel in their bus fleet at its Tokorozawa office, supplied by ITOCHU. Leading Australian craneage solutions

provider-Marr Contracting is powering their complex heavy lifting equipment with Neste MY RD. Growing voluntary demands are fueling the usage and trials of NRD across various industry segments and applications such as mining, construction, rail, delivery fleets, data centers, F&B processing and marine.

We have started supplying renewable hydrocarbons for polymer and chemical productions from our Singapore refinery to customers in APAC, where more than 50 percent of the global petrochemical production takes place. Since 2020, our renewable feedstock for polymers and chemicals has been applied in partnerships across the region.

This has enabled industrial-scale production of renewable plastics and chemicals from 100 percent bio-based hydrocarbons in the region. Production partners include LG Chem, SK Geocentric, Mitsui Chemicals or Idemitsu Kosan. We also cooperate with brand owners such as FamilyMart/Itochu or partners like Covestro and CHIMEI.

Which other markets are you looking at?

SAF plays a key role in helping the aviation industry achieve its goal of net zero carbon emissions by 2050. We have been supplying SAF to customers globally: in the Americas, EMEA and in the Asia Pacific region and will continue to strengthen our leading position in the global SAF market.

How dnata is reconnecting a better world

Global air and travel services provider

dnata continues investment in people, green operations and innovation. dnata is one of the world’s largest air and travel services providers. A trusted partner of over 300 airline customers, it operates at over 120 airports across six continents. Over the past 12 months, the company has significantly expanded its ground handling operations and team, while consistently enhancing its offering through investment in advanced infrastructure and technologies.

Expanding team to meet growing demand

In line with the significant growth in its operations, the financial year 2022-23 saw a sharp rise of 17 percent in dnata’s employee numbers which reached a total strength of 46,000 globally by the end of the year (31 March).

“Our people are at the heart of our operations. We are committed to investing in our team, with highly competitive compensation packages and opportunities for personal and professional learning,

development and growth. We recognise and reward loyalty and those who go the extra mile,” says Charles Galloway, dnata’s regional CEO for Asia Pacific.

dnata is dedicated to the continued recovery of the aviation sector and is well-placed to meet the rapidly increasing demand for its services across Asia-Pacific. “We continue to plan and recruit for future volume recovery and are currently fully resourced to meet existing demands, delivering safe and secure services for our customers across the region,” adds Galloway.

The health and wellbeing of employees continue to be dnata’s top priority. Its programmes are designed to support its people’s physical, mental, emotional and social wellbeing, and promote a culture of health. In addition to providing employees with regular information and tips across multiple internal communications channels, in Singapore the company organised a unique wellness week engaging more than 1,400 team members across the organisation.

Investing in the latest technologies

dnata also consistently invests in the latest technologies to further improve efficiency, productivity and deliver the highest possible value for its customers. “We continue to drive digitalisation efforts across our cargo operations in both Australia and Singapore. This allows for improved oversight on a local and global level. It also supports enhanced customer engagement and service excellence, elevating data sharing with all our stakeholders in the air cargo ecosystem and provides enhanced transparency across the cargo handling processes,” adds Galloway.

In 2022, dnata started rolling out its ‘OneCargo’ system globally.

We continue to drive digitalisation efforts across our cargo operations in both Australia and Singapore. This allows for improved oversight on a local and global level.

OneCargo automates key business and operational functions, including safety and quality monitoring, reporting and ULD management, with an integrated, cloud-based platform. AI-driven tools and analytics provide enhanced visibility on sales and business performance, allowing customers to match real-time demand with available capacity for maximum profitability. In addition, OneCargo eliminates all redundancies and manual check sheets, substantially improving operational efficiency. dnata plans to gradually implement the advanced system across its operations worldwide.

Investing in green operations

In 2022, dnata committed US$100 million to implement green technology and initiatives across its businesses to achieve its strategic objective and reduce its carbon footprint globally by 50 percent by 2030.

“We remain committed to reducing our carbon footprint to ensure the highest possible level of environmental efficiency across our operations. We consistently invest in infrastructure, equipment and process improvement to optimise our operations” said Galloway.

Over the past year, dnata has installed solar power systems at its operating facilities in Singapore, the UK, Pakistan, and its SnapFresh facility in Australia. These generate approximately 5,500 MWh of

renewable electricity annually, saving over 2 million kilogrammes of carbon dioxide emissions. It also purchases renewable energy from local grids in the UK and Ireland for catering, and a part of its travel and airport operations. dnata also continues to invest in the electrification of its ground handling fleet, which now stands at 15% globally, and the use of biofuels where feasible to reduce emissions.

In December 2022, dnata signed up for the IATA Environmental Assessment (IEnvA) programme, based on globally recognised environmental and sustainability standards, as well as industry best practices. It is a commitment to continually improve environmental sustainability within the aviation field and is focused specifically on dnata’s core operations. These include cargo handling facilities, catering, freight forwarders, and ramp handlers. dnata is working towards full certification before the end of 2023.

dnata also joined the United Nations Global Compact (UNGC), a voluntary global initiative that promotes responsible business practices, and the advancement of the Sustainable Development Goals. dnata has committed to implementing the Ten Principles of the UNGC in the areas of

human rights, labour, environment, and anti-corruption. dnata will benefit from access to the UNGC’s extensive tools and resources to engage with its employees across the globe and improve their learning and training in Sustainability.

Giving back to the communities dnata is committed to enriching the communities it serves and investing in initiatives that help propel the industry’s future. It engages and mobilises its employees through its corporate social responsibility programme, dnata4good, to make a positive difference.

Over the past 12 months, dnata made a solid impact with its global initiatives. dnata4good’s Cleans the World campaign helped restore and regenerate habitats in the communities it serves, it supported Al Jalila Children’s Hospital in the UAE and it marked Breast Cancer Awareness Month with a highvisibility pushback tractor painted in eye-catching pink.

“We care about our people and the planet through our dnata4good employee-driven initiative which recognises the importance of being socially accountable and making an impact beyond our business goals,” concluded Galloway.

Charles Galloway, dnata’s regional CEO for Asia Pacific

Singapore Changi Airport outlines top priorities for cargo amidst soft demand

Singapore Changi Airport saw muted cargo volumes in March compared to the same period last year, as the Asia Pacific hub recorded 152,000 tonnes. For the first quarter, air freight movements at Changi totalled 417,000 tonnes, sliding 9 percent year-on-year. The group said demand remained soft, especially in the first two months of the year, no thanks to global economic uncertainty and inflationary pressures. Payload Asia talks to Lim Ching Kiat, executive vice president for air hub and cargo development, to find out more about the group’s top priorities for cargo.

What are Changi’s top priorities for cargo? What’s the group’s overall direction?

While global air cargo demand has weakened, Changi Airport remains optimistic on long-term growth, especially in Southeast Asia. Despite the recent economic headwinds, Southeast Asia’s air trades with the rest of the world continued to expand over the past four years. Given the expectation of strong long-term progress with urbanisation and industrialisation, Southeast Asia is primed for growth in manufacturing, trade and logistics. Singapore, being in

the heart of Southeast Asia, will have a critical role to play in global supply chains, contributing to the flow of international goods.

Towards this end, while cargo connectivity remains critical for Changi Airport to anchor its position as a leading air cargo hub, our other priorities are to raise service quality in cargo handling and unlock capacity for long-term sustainable cargo growth by leveraging automation and digitalisation. At the same time, we are also putting in place steps to reduce the carbon impact of cargo activities in order to strengthen our resilience and secure our competitiveness as an air cargo hub.

To raise service quality in cargo handling, we firmly believe in taking a collaborative approach by working closely with our partners in the air cargo community. One key development is Changi Airport Group’s introduction of a cloud-based community datasharing platform—the Changi Air Cargo Community System (ACCS). This is an open ecosystem of collaborative and community-based applications that aggregates data from all parties

involved in the cargo handling process. Within that system, we developed a truck dock slot booking (TDSB) application, which aims to even out cargo lodgement and collection at our cargo handler’s air freight terminals, thereby reducing waiting time, optimising resources, and providing greater insights to airport landside activities. This move to digitalise provides greater predictability for forwarders, trucking companies, and cargo handlers. It also supports Changi Airport’s sustainability efforts to reduce carbon and tailpipe emissions. We have since completed the pilot and plans are underway for communitywide implementation later this year.

In the area of automation, CAG, together with our partners, has been investing in resources to trial autonomous solutions like autonomous tractors to reduce the manpower resources required for pointto-point transportation of baggage and cargo. Ongoing trials are promising and we expect to trial fully driverless operations for baggage delivery by 2024. On the digital front, solutions such as the tracking of all motorised ground support equipment will help optimise equipment deployment, boosting productivity and improving the

quality of cargo handling capabilities. Additionally, we are working closely with our cargo handlers on warehouse automation and digitalisation projects to improve productivity and efficiency, as well as increase capacity.

Can you share more about the recent partnership on cargo with Brussels Airport? What are the opportunities in the Asia-Europe market?

In 2022, Europe remained Changi’s second largest region by air trades. Belgium-Singapore is a key air trade lane for high-value cargo such as biopharmaceuticals. Both countries place strong importance on international trades and advanced manufacturing, and have been established as key trusted pharmaceutical hubs in Asia and Europe respectively. Changi Airport and Brussels Airport share similar ambitions in shaping our air cargo hub and place strong priorities in areas such as cargo operations excellence and digitalisation.

Under the MOU signed on 2 March 2023, Changi Airport and Brussels Airport will jointly drive initiatives to enhance capabilities in pharmaceutical logistics, undertake studies and trials in the fields of digitalisation and sustainability, as well as exchange best practices in the handling of special cargo segments and community-wide cargo initiatives to transform the air cargo supply chain.

On the environmental sustainability front, under the ambit of Pharma. Aero, both airports will be actively participating in the Green Air Pharma Logistics project. Together with other Pharma.Aero members, we aim to define the parameters and framework for a green air pharma lane and develop a set of standards and measurements to quantify and qualify the lane.

How important is the refinery expansion by Neste for Changi and Singapore?

To enable the adoption of sustainable aviation fuel (SAF), CAG had been working closely with industry and regulatory partners on stakeholder engagement, as well as facilitating trials. Neste’s refinery expansion will provide for up to one million tonnes of annual SAF production capacity in Singapore. Having domestic SAF production will enable Changi Airport’s airline partners to achieve their sustainability objectives with lower carbon footprint compared to importing SAF from other production locations. In addition to building this production capability, Neste has established an SAF supply

chain to Changi Airport to offer blended SAF directly to airlines operating at Singapore Changi Airport.

Since July 2022, Singapore Airlines and Scoot flights out of Changi Airport have been using a blend of regular jet fuel and SAF as part of a year-long trial. With Neste’s refinery expansion, we look forward to working with more airline partners to promote the acceleration of SAF uplift in Changi Airport.

How has the concept of sustainability evolved from an airport perspective? Can ‘sustainable’ be ‘profitable’ in the long run?

Over the past years, sustainability has evolved into a license to grow for many businesses and industries. Although airports account for only about 2 percent of global aviation emissions, we form the common platform upon which a multitude of aviation partners operate. As such, it is a priority for us to work hand in hand with the airport community to achieve responsible and sustainable growth.

Over 99 percent of CAG’s Scope 1 and Scope 2 emissions come from the use of electricity in operating our passenger terminals. As such, we concentrate our efforts in raising building energy efficiencies through constant upgrading of our systems to the best-in-class energy efficient models. For example, past upgrading of our chiller plants has seen up to 30 percent savings in energy consumption, which achieves not only cost savings but also carbon emissions reduction. We are also expanding on-site generation of solar energy, which offers energy resilience against the backdrop of fluctuating energy prices and volatile macro-economic conditions.

Most of our efforts in reducing Scope 3 emissions centre around working with airline partners and ground handling agents at Changi Airport. Our recent development on SAF (detailed above) is one example. As an industry, more work has to be done to address the SAF price premium through balancing supply and demand. Different types of policy levers are being employed around the world, ranging from mandates to incentives. We are in close engagement with the Civil Aviation Authority of Singapore in its development of a Singapore Sustainable Air Hub Blueprint, which will set out tangible pathways to achieve sustainability goals for the Singapore aviation industry.

To decarbonise ground operations

including those pertaining to air cargo, we started working with our ground handling agents in 2017 to transition towards electric baggage tractors. Today, we have installed a network of more than 100 EV charging points to support a 100 percent electric baggage tractor fleet at Changi Airport. Moving forward, all new airside light vehicles, tractors and forklifts will have to be electric from 2025. This target was developed with cost parity and availability of viable electric variants in mind. In the longer term, we aim to have all airside vehicles running on cleaner energy by 2040. In tandem, we are working towards a community rollout of the TDSB initiative, which aims to reduce truck waiting time, hence reducing carbon and tailpipe emissions.

CAG is committed to zero carbon growth up to 2030, with absolute emissions to be capped at 2018 levels even as we continue to grow our business and strive for cost parity while stepping up our sustainability efforts. At the same time, we will aspire for net zero carbon emissions by 2050 as Singapore transitions towards renewable energy and through technological advancement.

What can you say about Singapore’s status as a major logistics hub? Do you see any opportunities with intermodal operations?

In today’s highly dynamic environment, intermodal transport has emerged as an alternative and risk mitigation transportation strategy. The utilisation of intermodal operations can provide companies with more transportation options. It provides a middle ground between cost, transit time and efficiency. It could also help overcome geographical challenges, enable cost efficiencies in transporting products to new markets, while also securing supply chain resilience.

Singapore is home to the world’s 2nd busiest container port and 10th busiest international air cargo airport. Changi Airport has been working closely with PSA Singapore to drive intermodal transportation cargo flows through Singapore. Singapore’s modern port infrastructure, state-of-the-art air cargo facilities and close proximity between the air and sea ports allow seamless intermodal transshipments. During the Covid-19 pandemic which saw different transportation disruptions, Singapore’s uninterrupted operations and ability to handle intermodal transportation was a source of helpline for global shippers and logistics players.

Hactl goes beyond the necessary steps towards sustainability

Air cargo ground handler Hong Kong Air Cargo Terminals Limited (Hactl) has a reputation for setting standards within its sector, most notably through the building of its ground-breaking, highly-automated SuperTerminal 1 in 1998, and its relentless pursuit of efficiency and excellence through technical innovation. The vast scale of its operations and large volumes of cargo and aircraft handled have set many records down the years.

But alongside such commercial success, Hactl also acknowledges its obligation to minimise its impact on the planet, and set examples that inspire others. “This is a fragile planet, we all owe it to our children to arrest and reverse the environmental damage mankind has done through its collective business activities, and the clock is ticking,” asserted chief executive Wilson Kwong.

This explains Hactl’s obsessive integration of sustainability into every decision and activity it undertakes. The company recently announced

the next steps in its sustainability journey, and reaffirmed its holistic commitment with the establishment of its sustainability strategy framework, which now guides all future sustainability policies.

The framework is based on four pillars: governance, planet, people and partners; these in turn encompass eight focus areas that set targets throughout all aspects of Hactl’s business, and guide the behaviour not only of staff, but of its contractors and partners, too.

Hactl’s commitment to sustainability is clearly seen through its increased use of renewable energy and reduction in carbon emissions. The company built a giant solar farm on its terminal roof, and now buys sustainable energy credits that support green power generation. “Transforming a business such as ours—with its unavoidable reliance on heavy machinery and a large ground services fleet—into a model for sustainable development, will never be easy,” continued Kwong.

“But the collective challenge of climate change demands a determined response and immediate action.”

Hactl’s long-standing green terminal programme has been highly effective in broadening its decarbonisation and resource optimisation measures, thanks to the enthusiastic support of all staff. Its many achievements to date include 99 percent plastics recycling, 96 percent paper/ cardboard recycling, 11 percent reduction in electricity consumption since 2018, and 30 percent reduction in absolute carbon emissions since 2018. The company also uses recycled materials such as discarded wooden

Transforming a business such as ours, with its unavoidable reliance on heavy machinery and a large ground services fleet, into a model for sustainable development, will never be easy

pallets to produce its business gifts, and furniture and art installations in its recently refurbished offices— earning it a Platinum rating, the highest level under the coveted BEAM Plus Interiors Version 1.0.

But sustainability is about much more than climate change mitigation; Hactl is also sharply focused on protecting its people from occupational hazards and external health issues such as the pandemic, as well as supporting their physical and mental health, career development and wellbeing. “Hactl’s staff policies are designed to create a safe, inclusive, fair and happy working environment in which all talent is nurtured, and compassion and empathy thrive,” continued Kwong.

Supporting its community is also key to Hactl’s sustainability policies, and mental health is a critical element of the overall approach. The company regularly joins with its parent Jardine Matheson to promote awareness of mental health issues, reinforce its pledge to support staff whenever needed, and raise funds for mental health causes. It also provides employment and financial support for the less fortunate in its community; a recent example was the recycling of unused old staff uniforms into useful bags and cute teddy bears, which provided new skills and employment opportunities for people with disabilities at Hong Kong’s St. James’ Settlement Jockey Club Upcycling Centre. “We will continue to aspire to business excellence, but we will also continue to grow our business with sustainability at the core of our strategy,” Kwong concluded. Staff training is an essential element of sustaining Hactl’s business and ensuring it continues to provide stable and rewarding employment. In the full employment environment that is Hong Kong, recruiting for airport jobs—often involving shift working, outside work in inclement weather, and long commutes from population areas—becomes ever more challenging. Recognition of this fact lies behind Hactl’s highlydeveloped training regime, which is designed to attract, nurture and retain staff.

Hactl recruits around 500 staff each year, through its dedicated career website and social media. Around 30 percent are school or university

leavers, up to 40 percent come from other airport and logistics related work, and the remainder join from other industries. “Recruitment is definitely becoming more challenging,” confirmed Jason Lee, Hactl’s executive director for human resources. “The aviation industry is facing severe manpower shortages and people have more worries in this industry after COVID. Youngsters tend to look for work-life balance and do not want to work shifts in a 24/7 operation like Hactl.” Hactl staff can look forward to 2325 training hours per year, mostly delivered in person at its dedicated training facilities, which occupy an entire floor of its office block. “The centre has 9 training rooms to cater for various needs, adaptable to classroom or group discussion formats as required. A newlycompleted ‘knowledge lab’ provides a suitable area for team building activities, brainstorming ideas, and collaboration. Meanwhile, online training—adopted during COVID restrictions—still accounts for approximately 5 percent of teaching. “E-learning through the learning management system (LMS) facilitates study at any time or location,” added Lee.

Hactl training is divided into two major areas: technical training and staff development training. Technical training helps to equip staff with the professional knowledge required in daily operations, covering topics such as dangerous goods, ULDs, special cargo, temperature-controlled cargo and ramp equipment training. Staff development training meanwhile focuses on soft skills, aiding career development, collaboration and exploring staff potential, by covering personal effectiveness, customer services, communications, team building, leadership and coaching, business language and so on.

VR was launched for operational training in 2017, with the first module being an aircraft loading course for B747 freighters. “This was seen as a safer way to train newcomers, away from the fast-paced and potentially hazardous live ramp environment,” continues Lee. A further module for the B777F was launched in 2019, and Hactl continues to explore other potential VR training topics to enhance training safety, efficiency and experience. “Staff are Hactl’s greatest asset,” concluded Lee. “That’s why we continue to invest so heavily in their training and welfare.”

Soaring higher: How AI and LLMs are transforming the airline industry for Crayon customers

Words by Armin Haller, Head of Centre of Excellence for Data and AI at Crayon APAC

Artificial intelligence, and in particular large language models (LLMs), have significant potential to revolutionise the airline industry. Whilst AI and neural networks, the models underlying LLMs, have been in existence for many years, it is in 2023 that they have reached mainstream prominence with the introduction of ChatGPT. This AI model, built upon LLM technology, has surprised even experts with its remarkable accuracy and, in certain scenarios, demonstrates capabilities close to what experts call general artificial intelligence.

The availability of LLMs in the cloud, such as those offered through Azure OpenAI, is bringing about a transformational shift. These models have the capacity to process and understand vast amounts of language-based data, enabling

any organisation, and in particular those dealing with many customers, such as airlines, to benefit from unprecedented productivity gains.

This period of accelerated productivity that we will witness in the next few years through AI can, in some way, be compared in impact to the industrial revolution. By harnessing LLMs, the airline industry can leverage AI capabilities for various applications. In fact, let’s ask a Large Language Model what it can do for the airline industry.

“First, it provides customer service and support. LLM-powered chatbots and virtual assistants provide 24/7 customer support, handle inquiries, offer personalised recommendations, and deliver realtime flight information. Second, it allows sentiment analysis and

social listening. LLMs analyse customer feedback and sentiment from social media, reviews, and surveys to understand preferences, monitor brand sentiment, and inform decision-making. Next, it enables personalised marketing and recommendations. LLMs process customer data to enable personalised marketing, targeted offers, promotions, and tailored travel recommendations, driving customer engagement and loyalty.

Then, it can generate operational efficiency and predictive maintenance. LLMs optimize operationsbyanalysingmaintenance logs, sensor data, weather forecasts, and flight schedules to predict and prevent disruptions, enhance crew scheduling, and improve maintenance processes. It also offers demand forecasting and

pricing optimisation. LLMs forecast demand accurately, helping airlines optimise pricing strategies, dynamic fare adjustments, and revenue management for maximising profitability. Finally, imagine natural language interfaces and voice assistants: LLM-powered natural language interfaces and voice assistants enable seamless interaction for passengers, facilitating flight searches, booking management, real-time updates, and access to travel information. Indeed, AI can provide significant ROI, improve customer safety or customer satisfaction, for all of these use cases.”

While any use case that involves text and spoken words is now best solved by LLMs, not all of these aforementioned use cases are necessarily best served by a Large Language Model. Demand forecasting, for example, can be solved best by regression models and other Deep Learning Models rather than LLMs, and operational efficiency and predictive maintenance is best solved through computer vision models. Crayon will help you to determine how a given problem can be solved with AI and which AI model best solves a use case.

For example, Crayon successfully collaborated with a major international airline on a project aimed at addressing the challenges associated with manually monitoring numerous video feeds that record the activities performed around an airplane at the gate. We developed an advanced AI solution that leverages computer vision and machine learning algorithms to effectively monitor security cameras’ video feeds and autonomously oversees various critical aspects, such as identifying catering supplies or specific aircraft-related objects, detecting unauthorized access or suspicious behaviours, tracking cabin crew status and location, monitoring aircraft door status to ensure it is not left unattended, and distinguishing different operational staff while maintaining a comprehensive register of entries and exits.

Our solution greatly assists the security team and on-site experts in making informed decisions, reducing the amount of time and staff required for surveillance without compromising performance. Additionally, the implementation of AI technology significantly enhances accuracy and objectivity in the monitoring process.

THE CONTRIBUTOR

Armin Haller is Head of Centre of Excellence for Data and AI at Crayon APAC. He is currently building up a team of data scientists, engineers and solution architects to solve challenging problems using AI and excellent data management. Armin describes himself as an ‘evangelist’ of using technology to improve knowledge sharing between humans. Apart from publishing articles in peer-reviewed conferences and journals, he has been passionately supporting the Australian Government in defining strategies for the use and the publishing of Open Data since 2012.

INSIGHTS

What are air cargo community systems?

Airports and ports, with some still stuck behind legacy systems, can be prone to unwanted downtime and outages that can have severe economic damages for operators. In a highly fragmented setup, logistics and transport service providers need a secure way to communicate and monitor shipments to operate with better efficiency. It also needs to be sustainable. Payload Asia talks to the bosses at Nallian and Kale Logistics Solutions to find out how air cargo community systems can address these pain points.

What would be the direct benefits of cargo community systems?

Working in an integrated, connected way generates benefits for the community as a whole and the individual actors. The benefits generated will depend on where the pain points for that specific hub are. We see a cargo community system not as a monolithic system but as a combination of functionality that addresses different business processes. For example, for an airport hub with a big issue in terms of congestion and wait times, we would recommend first focus on optimizing freight pickup and delivery, which can create massive benefits such as elimination of wait times up to 90 percent, reducing the number of trucks needed to transport the same volume by 30%, increase of capacity of the warehouse, etc. A hub that handles many perishables could benefit from a more coordinated approach to the inspection process and coordination with the food safety authority.

Our advice is to look at the biggest pain points and start from there, as the success of a community system will depend on the buy-in of and adoption by its users. When done well, it will allow the airport to attract more business with reliable, efficient, and transparent services and reduce carbon footprint as they operate more sustainably. And it will enable the individual logistics companies to better plan and coordinate in view of actual activity, so they make better use of staff and resources, can work in a proactive way, and deliver higher quality of service with real-time communication and visibility.

For such complex systems, can you state the estimated amount in damages for say a data breach? How does your company ensure that this risk can be prevented?

Our solutions are all cloud-based. They run on Microsoft Azure and, as such, adhere to the highest industry security standards. Data sharing is in the DNA of our company. All our solutions guarantee that the data owner always stays in control of their data. They can define in a granular way who sees which part of their data in which context.

In terms of adoption, where is Asia Pacific compared to the rest of the world? As everywhere in the world, we see a growing appetite in this region.

Is there a one-size-fits-all solution for countries that aspire to become logistics hubs? What would an ideal multimodal transport and logistics management system look like?

There is never a one-size-fits-all for these initiatives, as every hub should start from its own business ambitions and objectives. One should look at the specific local pain points and processes and see how digitalization can improve or address these. We believe a step-bystep approach is critical to success: start small with a limited number of ‘believers’ willing to change and move forward, demonstrate the benefits, and then gradually expand users and features. Getting all actors in a hub to work together on a common way of working not only requires selecting the right technology. As necessary are change management and adoption. We have been doing this with hubs worldwide, and it is the only way we have seen demonstrating success.

Geert Van Brempt, managing director for Asia Pacific at Nallian

INSIGHTS

ensure that this risk can be prevented?

First of all, cargo community systems are cyber-attack proof and are known for transparency. It is built with blockchain, IoT and artificial intelligence technologies that assure safety and security of data. There is a wrong notion worldwide that cargo community systems are vulnerable to cyber-attacks.

In terms of adoption, where is Asia Pacific compared to the rest of the world?

Asia Pacific is at the forefront of innovation as on date. Singapore as a country has been the pioneer in implementing single window and other tech solutions when the entire world was manual in nature. On the other hand, India leads with 100 percent adoption in several airports throughout the country. Philippines, Thailand, Indonesia and Malaysia are also gradually catching up by implementing digital frameworks to future-proof their growth prospects. Japan and South Korea are always the world leaders. Unlike other markets, there is a minuscule level of sluggishness among stakeholders. Governments and authorities are also forward thinking.

Can you give brief background of your company?

Kale Logistics Solutions was built on the platform of deep industry knowledge and technical expertise. Our grasp on domain knowledge has made us the harbinger for many pioneering technology-driven solutions that have changed the face of our clients’ businesses.

Our clients have experienced, first hand, modern, scalable applications that provide advanced end-to-end functionality, improved operational visibility, better financial control and tangible cost reduction. Some of our clients have reportedly improved their productivity by as much as 70 percent on data management.

Kale has developed the world’s first digital freight corridor, North America’s first airport cargo community system and is continuing to be a pioneer in the multi-modal logistics IT solutions space. Most importantly, Kale has facilitated lower truck dwell times for airports and ports in Asia Pacific, North America and Europe with its smart and intuitive community as well as enterprise platforms. Our air cargo IT solutions are currently engaging in 100+ airports worldwide.

Our innovative offerings have garnered us the pride of being cited in publications of KPMG as one of the top

10 innovations in the Indian logistics industry. We have also been featured as a case study in the book written by professors of Kellogg Business School for our innovations in the logistics industry.

What would be the direct benefits of Cargo Community Systems?

Cargo community systems offer a lot of benefits for the airport authority as well as individual stakeholders. The most essential aspect is elimination of physical documentation. From 124 copies needed to move cargo end-toend, a community platform can lower the number of documents to less than 20 and eventually 0. Added to this, a cargo community system can improve operational efficiency, facilitate reduction in delays and help overcome challenges in achieving sustainability.

It can also help all stakeholders to electronically communicate within themselves and with other stakeholders like airlines, customs house agents, customs, banks and GHAs. It can facilitate the movement of goods and information at the airport and aids in digital interactions, in conformance to initiatives around e-freight, e-AWB and e-CSD.

For complex systems such as ACSs, can you state the estimated amount in damages for say a data breach? How does your company

Is there a one-size-fits-all solution for countries that aspire to become logistics hubs? What would an ideal multimodal transport and logistics management system look like?

For a country or an airport/port that aspires to become a hub, a basic cargo community system is a must to facilitate multi-modal trade. But it is not only sufficient. They would also need some set of smart solutions such as freight corridors through which they can connect with nearby airports/ports. Most importantly, they would require a sea-air corridor to fast-track movement of cargo from one mode to the other, smartly.

Amar More, CEO and co-founder at Kale Logistics Solutions

IATA Ground Handling Conference makes stop in Dubai

The International Air Transport Association highlighted three priorities for the ground handling sector to build resilience and ensure long-term sustainability. These priorities, outlined at the 35th IATA Ground Handling Conference (IGHC) in Abu Dhabi on May 1618, are effective staff recruitment and retention, consistent implementation of global standard, and accelerating digitalisation and automation.

“Ground operations are complex, and delays are the bane of every turnaround coordinator’s existence. But with technology and communication advancements, we can avoid delays, make operations safer, more efficient and more environmentally sustainable, while providing a better working experience for staff on the ramp,” said Monika Mejstrikova, IATA’s Director of Ground Operations.

Hong Kong to host World Cargo Symposium in March 2024

Hong Kong will be the stage for next year’s annual World Cargo Symposium, IATA announced during the closing of the event’s 2023 edition, held in Istanbul. Hong Kong International Airport (HKG) will be the host airport, whilst Cathay Pacific will be the host airline for the 2024 edition of IATA’s WCS, which is scheduled for 12 to 14 March at AsiaWorld-Expo.

The annual IATA meeting is expected to attract over 1,000 attendees from around the world, including together airlines, freight forwarders, ground handlers, shippers and regulators to discuss the latest trends, challenges and opportunities. The event features plenary sessions, specialised streams, workshops and executive summits, tackling aspects related to technology and innovation, security

Talking about digitalisation and automation, IATA outlined three priorities for the ground handling sector: ramp digitalisation, load control digitalisation, and ground support equipment automation.

IATA’s Ground Operations

Digitalisation and Automation

Working Group has developed the timestamps turnaround (XTST) message to provide standardised communication and real-time network monitoring for airlines. Implementing the standard can reduce ground handling delays by up to 5 percent globally. The group is also pioneering load control automation by utilising the new 565 digital standard to reduce workload, costs, and errors while enabling real-time updates.

IATA is also pushing for the transition to enhanced ground support equipment. The trade group said trials on autonomous ground support equipment are already underway in over 15 countries. This industry move can potentially reduce ground damage costs by 42 percent, create a safe working environment and cut emissions by 1.8 million tonnes annually.

and customs, cargo operations, and sustainability.

At the recent World Cargo Symposium in Istanbul, IATA reiterated that the priorities for air cargo remain the same against the backdrop of a challenging operating environment. “As we navigate the current situation, air cargo’s priorities have not changed, we need to continue to focus on sustainability, digitalization, and safety,” said Brendan Sullivan, IATA’s Global Head of Cargo.

With supply chains relying on air cargo’s efficiency, the group highlighted the potential of digitalisation and outlined three goals. These include 100 percent airline capability of ONE Record by January 2026, which will replace the many data standards used for transport documents with a single record for every shipment; ensuring digital standards for tracking devices; and ensuring compliance and support for customs, trade facilitation and other government processes that are increasingly being digitalised.