Payload Asia | February-March 2023

Page 22

MCI (P) 002/07/2016 ISSN 2010-4227 THE TRADE MAGAZINE FOR THE ASIA-PACIFIC AND MIDDLE EAST REGION VOL. 39 NO. 1 FEB/MAR 2023 Industry Responds to EARTHQUAKE CRISIS

EDITOR’S NOTE

Dear reader,

This issue of Payload Asia takes a look at the remarkable role that airlines and air cargo professionals play when events fall under force de majeure and crises ensue. On 2023 February 6, a devastating seismic event would put things in motion unlike ever before in southern Turkey and northern Syria. That would be the stage for aviation’s global crisis response as shown in our cover story on page 22.

In our C-Suite section, we got a chance to talk to Asia Airfreight Terminal, together with its new chief, Mike Chew, as he shared his prospects on what lies ahead for the Hong Kong-based air cargo terminal operator.

We also reached out to Eric Tan, Managing Director, FedEx Singapore, who discussed his insights on the MRO sector, outlining the intricacies of a unique vertical for the express logistics business.

This magazine won’t be complete without the latest insights from our newsmakers, including the likes of Qatar Airways, Dimerco, Silk Way West and more. Enjoy this bimonthly issue and watch out for more stories on airport and ground handling for April and May. Cheers!

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

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

Harvest Information Pte. Ltd.

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1 www.payloadasia.com | DECEMBER - JANUARY 2023

COVER STORY

Airlines and industry partners respond to Turkiye-Syria earthquake crisis

C-SUITE Looking back at 2022 and forging the future with Asia Airfreight Terminal’s new chief

Qatar partners with Korean cargo platform iNOMAD

Ethiopian Airlines adds Xiamen and Shenzhen to cargo network

New Goa airport gets boost with Kale Logistics Solutions

Hong Kong shares expertise with Thai airport

WFS wins China Eastern contract in Liege

SEKO Logistics ended 2022 with Vietnam expansion

Dimerco secures certifications in Singapore

EVENTS

Airport stakeholders converge at 8th interairport Southeast Asia

C-SUITE

Scan Global Logistics has a new owner Silk Way West eyes Japan with Nippon Express

e-commerce giant JD.com opens third warehouse in California DHL Supply Chain names new Southeast Asia chief

INSIGHTS

How FedEx is helping the MRO industry take-off in the post-pandemic era

18

20

COVER STORY EVENTS

24

Looking back at 2022 and forging the future with Asia Airfreight Terminal’s new chief Airlines and industry partners respond to Turkiye-Syria earthquake crisis Airport stakeholders converge at 8th inter-airport Southeast Asia

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CONTENT PAGE
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Subscribe to the leading source of high-quality coverage on the latest information and news on the global air cargo sector, with a focus on Asia-Pacific and India-Middle East air cargo markets For inquiries and more information email us at: editor-pla@harvest-info com @payloadasia @payloadasia Payload Asia Connect with us on our social media channels:

Qatar partners with Korean cargo platform iNOMAD

Qatar Airways Cargo has unlocked a new partner in South Korea with iNOMAD, a ‘cutting-edge’ air cargo platform that allows enhanced visibility of rates and capacity when booking shipments for air transport. The partnership will enable better connectivity for one of the airline’s major customers in South Korea, Woojung Air, a prominent consolidator in South Korea and one of Qatar’s top customers.

Joon-suk Yim, CEO of iNOMAD, said the company aims to become a search engine for the air logistics field. Created by its own software development team and air logistics

experts, the platform is designed to transmit and receive information from logistics-related service providers and master loaders including airlines. It operates as an online all-in-one portal that provides air cargo booking, rates, schedule, tracking, etc.

“Its strength is to promote the accessibility of air cargo service by optimizing extensive logistics data for clients and providing boundless service and information to both IATA/ CASS members and non-members in real-time,” Yim noted. iNOMAD is slated to open a 20,000-sqm logistics center in September at Incheon International Airport, which will be equipped with smart devices and a security X-ray inspection system as part of a plan to develop a safe and smart logistics system.

Lufthansa to add B777F services to China in March

Lufthansa is adjusting its freighter route network in response to corresponding demand for the 2023 summer flight schedule, which starts on 26 March. The German airline said

weekly frequencies to destinations in China served by Boeing 777F aircraft will be both increased and combined in routing. Lufthansa Cargo plans to offer 10 freighter flights per week to

Shanghai (PVG) in the future. On two of these Shanghai connections, the airline will also fly to Chengdu (CTU), doubling its capacity there.

It also plans to increase weekly flights to Hong Kong from five to six, with one reinstated stop in Almaty in Kazakhstan. Lufthansa Cargo’s current 2023 summer flight schedule includes a total of 79 weekly intercontinental connections. All longhaul destinations will be served from the international hub in Frankfurt by its fleet of 16 B777F aircraft.

TAM Group expands in Vietnam with China Cargo

Hong Kong-based cargo sales agent, TAM Group, has opened three new offices in Southeast Asia and has embarked on joint ventures with Thailand’s GP Group and Vietnam’s TP Cargo Transport Services to

launch offices in Bangkok, Ho Chi Minh and Hanoi.

TAM Group was selected by China Cargo Airlines as representative in Vietnam effective early 2023. The

Chinese airline will operate four flights each week between Hanoi and Shanghai and one weekly flight between Ho Chi Minh City and Kunming.

In Vietnam, the company is teaming up with TP Cargo Transport Services, a leading cargo GSA/GSSA operator, whilst in Thailand, the company has partnered with GP Group, a strategic investment group with companies in different sectors, from logistics and pharmaceuticals to aviation and technology.

4 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - CARRIERS

Cathay Pacific pilots sea-air cargo service from GBA

A new pilot scheme in Hong Kong is expected to streamline the transport of outbound air freight coming from China’s Greater Bay Area, and Cathay Pacific is the first airline to be in the mix.

The carrier together with Cathay Pacific Cargo Terminal, operated by Cathay Pacific Services Ltd, are working with stakeholders to trial a sea-air link from Dongguan to Hong Kong airport. As part of the scheme, CPSL has signed an agreement with the Hong Kong airport authority

Ethiopian Airlines adds Xiamen and Shenzhen to cargo network

Ethiopian Airlines is marking its 50th anniversary in China this year and opening new air freight routes to the mainland. Ethiopian Cargo & Logistics Services started operating two weekly freighter flights connecting Xiamen to South America and two weekly

to operate in the pilot scheme and has established its own upstream bonded facility, named Cathay Cargo Terminal Dongguan.

Cathay said the new facility, located at the Bestar Logistics Centre in Dongguan, is fully compliant with Hong Kong’s air cargo security regulations, and export cargo can be screened, palletised and accepted

freighter flights between Shenzhen and Liege in February.

The airline has deployed its B777 freighter on the new cargo routes and will link Xiamen with São Paulo and Santiago via Addis Ababa. Ethiopian started its passenger service to China

for shipment by cargo terminal operators in Dongguan, before being transported by ship to a secured pier area at HKIA for international transshipment via its passenger and freighter network. Cathay said the sea-air transshipment pilot will migrate to a permanent facility from 2025 and will include inbound freight or imports into the GBA over the coming months.

back in 1973. The addition of Xiamen and Shenzhen increases the airline’s Chinese cargo destinations to eight, including Guangzhou, Shanghai, Zhengzhou, Changsha, Wuhan and Chengdu. It also operates passenger services to Beijing, Chengdu, Guangzhou and Shanghai.

IAG Cargo sets fees for paper air waybills in April

Starting 3 April, IAG Cargo will introduce a charging fee of £10 for paper air waybills (AWB) to encourage adoption of the electronic version or eAWB. The cargo division of the International Airlines Group introduced the eAWB as part of a strategy to transform the business digitally. So far, nearly 50 percent of customers already use eAWB, and IAG Cargo is targeting an adoption rate of 100 percent by the end of 2023.

IAG said the industry has relied on paper transactions for years, adding up more than 7,800 tonnes of paper documents processed per year: this

is equivalent to 80 Boeing 747s full of paper.

“The eAWB not only offers a more sustainable alternative but also provides a seamless end-to-end service for its customers that eliminates the risk of human error,” the company noted. David Rose, transformation chief at IAG Cargo said: “eAWB is the first step of many steps in our ambitious destination digital journey, and we are excited to use the data provided to roll out future digital initiatives that will see us become more sustainable and reliable.”

5 www.payloadasia.com | FEBRUARY - MARCH 2023 NEWS - CARRIERS

Freight stumbles at Liege Airport in 2022

Covid and Ukraine conflict. Around 1.14 million tonnes of freight transited through the Belgian air hub, a 19 percent drop compared to figures seen in 2021. Passenger numbers at the airport meanwhile soared 118 percent to 166,898, compared to 2021.

For Liege Airport chief, Laurent Jossart, the decrease in freight transport was ‘predictable,’ given the geopolitical instability created by the war in Ukraine, the current global tensions and the Covid zero strategy in China. There was also the case of having ample supply over the

last 2 years, backed by pax aircraft conversion for cargo use, reactivation of older freighters and strong growth in e-commerce.

“After two years of strong growth in air cargo capacity and supply, Liege Airport, like all cargo airports, is experiencing a decrease in comparison with 2021. For us more specifically, we have to add the restructuring of Fedex and the stop of AirBridgeCargo activities. The doubledigit inflation had also a significant negative impact on consumption, e-commerce and therefore on the overall flow of goods,” added Jossart.

Changi teams up with Brussels Airport on cargo

Liege Airport saw a ‘contrasted’ 2022 as the cargo airport saw freight demand fall whilst passenger numbers increased no thanks to the double whammy brought about by Brussels Airport Company and Changi Airport Group have signed a memorandum of understanding on 2 March 2023 to augment the strategic partnership between the two airports in the area of air cargo development.

Both airports will drive initiatives to enhance capabilities in pharmaceutical logistics, undertake studies and trials in the fields of digitalisation and sustainability and exchange information and best practices. The two airport groups have collaborated on various projects since 2016, and one of

their first joint initiatives was the cofounding of Pharma.Aero with Miami International Airport.

Under the MOU, the two airport companies will jointly explore and undertake trials and initiatives in areas of growing importance like sustainability. One of the projects is a Green Air Pharma Corridor study to establish a green lane with a set of sustainability standards throughout the end-to-end supply chain. The two will also work together to strengthen passenger and cargo connectivity between Singapore and Brussels.

New Goa airport gets boost with Kale Logistics Solutions

system is used by several hub airports and cargo terminals all over the world and is currently operating at more than 100 air cargo stations globally. Alongside inbound and outbound cargo, the solution also covers processing for transshipment and direct delivery.

India’s newly opened Goa airport has rolled out a cargo management system as it looks to become a hub for cargo movement alongside Mumbai and Bengaluru in Western India. Kale Logistics Solutions has gone live with its state-of-the-art

cargo management system at GMR Goa Air Cargo and will now enable digital processing for all domestic inbound and outbound cargo at Goa Airport.

The GALAXY cargo management

GMR Goa International Airport Limited, a subsidiary of GMR Airports Limited, was inaugurated in December 2022 by the Indian prime minister. Domestic air cargo operations went live from an interim facility at the airport with Kale’s solution in January.

6 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - AIRPORTS

Amsterdam airside turns to renewable diesel

Starting this year all diesel-powered ground handling vehicles and machinery at Amsterdam Airport Schiphol in the Netherlands will be using Neste MY Renewable Diesel, also known as HVO100, which is produced from 100 percent renewable raw materials.

KLM Equipment Services or KES, fuel supplier for all vehicles and machinery at Schiphol, will be supplied by Neste’s distribution partner EG Group. KES has a fuel station at the airport as well as three fuel trucks operating seven days a week.

There are around 1,900 ground handling vehicles with a diesel engine at Schiphol airport, varying from standard cars, vans, pushback tractors and trucks to more specialized ground support like conveyor belt loaders, pallet or

container loaders, catering highlifts, aircraft fuel dispensers, passenger steps and ground power units. As part of the group’s sustainability targets, the airport also plans to expand the number of electric vehicles and charging stations.

Hong Kong shares expertise with Thai airport

An airport in Thailand has signed a memorandum of understanding with airport advisor HKIA Consultancy as it looks to become a major international hub. Under the MoU’s framework, HKIA Consultancy will advise U-Tapao International Aviation or UTA on matters related to airport planning, operations, smart technology and commercial development.

The move is part of the development project of U-Tapao International Airport and Eastern Airport City near Bangkok, which is positioned to become a logistics hub and

strategically located in a free-trade zone with multimodal transport connections.

Hong Kong airport will share knowledge and experience in management and technology with UTA, and service

Cargo at Munich Airport grew 55 percent in 2022

Air cargo reaped the benefits from the boom in traffic at Munich Airport in 2022 as air freight volume increased by 55 percent from 2021 to around 259,000 metric tonnes. Munich Airport saw massive growth in all traffic figures in 2022 thanks to a busy summer, with passenger numbers jumping more than twoand-a-half-fold from a year ago to a total of 31.6 million. This represents two-thirds of the airport’s record performance in 2019, pre-pandemic. The number of aircraft movements nearly doubled compared with 2021 to more than 285,000 take-offs and

landings. The seat load factor of aircraft in Munich saw the same record figure of 77.5 percent from 2018.

The airport said that traffic between Munich and US destinations has already been higher than the 2019 level since July. Traffic to destinations in India, South Korea, Singapore and Thailand, meanwhile, saw the same trend at the start of the 2022/2023 winter flight schedule. Munich saw the most action during the third quarter after it logged 10 million passengers. It now links to 210 destinations in 63 countries.

in the capacity of a consultant for various projects under the MoU. Top delegates from UTA visited Hong Kong airport in late-December last year to observe the current development of the air hub, including a site visit at cargo terminal Hactl.

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NEWS - AIRPORTS

SATS Indian subsidiary to build cargo hub at new airport near Delhi

India’s ambitions to become a major logistics hub could steer in a positive direction with the planned construction of a cargo facility at Noida International Airport, which is scheduled to be completed at the end of 2024.

Singapore-based cargo handler SATS announced on Monday last week, 13 February, that its Indian subsidiary AISATS, a joint venture with Tataowned Air India, has been selected to design, build, finance and operate a multimodal cargo hub by Yamuna

International Airport Private Limited or YIAPL, the airport developer fully owned by Zurich Airport AG that has been tasked to operate the future airport in Jewar, Uttar Pradesh, near the Indian capital of Delhi.

The future cargo facility will comprise an integrated cargo terminal and an integrated warehousing and logistics zone to be built over 87 acres of land. SATS said the cargo hub will be the first of its kind in the country, positioning it to become the gateway for northern India. The group expects the infrastructure to strengthen the supply chain for industrial clusters in Western Uttar Pradesh and National Capital Region, which include textiles, electronics, e-commerce, pharmaceuticals and perishables.

Lödige Industries grabs cargo deal in Hong Kong

centre, which is scheduled to open in the third quarter of 2023.

Lödige Industries has won a contract to deliver an automated material handling system for Alibaba’s logistics arm Cainiao Network at Hong Kong

International Airport. The installation will be used at Caniao Smart Gateway, a ‘smart’ logistics hub considered to be Hong Kong’s third largest logistics

WFS wins China Eastern contract in Liege

China Eastern Airlines has extended its partnership with Worldwide Flight Services (WFS) with a new

contract to handle Boeing 777 cargoonly flights at Liege Airport. The new 3-year agreement will see WFS

Lödige will provide Cainiao with an innovative handling system for the receipt, delivery, storage, retrieval, transhipment and sorting of air cargo. Cainiao’s Hong Kong logistics facility will provide warehousing and distribution services under the Alibaba electronic World Trade Platform (eWTP), a private sector-led and multi-stakeholder initiative that was set up to lower trade barriers and provide more equitable access through global trade facilitation for businesses and consumers around the world.

handling around 32,000 tonnes of cargo each year for the carrier.

China Eastern operates up to nine B777 flights a week into the Belgian airport from Yantai Penglai International Airport (YNT) in China’s Shandong Province. Alongside warehouse operations, WFS also provides ramp handling for the airline’s 777 services. It also handles CHina Eastern’s cargo operations and growth in Paris CDG, Frankfurt, Stockholm, and New York JFK.

8 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - GROUND HANDLING

CEVA forms new org to drive auto logistics

CEVA Logistics is eyeing to finish within the top three in global logistics as the company continued its integration with GEFCO, which specializes in finished vehicle logistics (FVL).

The transport and logistics player, backed by parent company CMA CGM Group who bought GEFCO in July 2022, has formed a dedicated

WiseTech brings in rail game with $414m acquisition

Software developer WiseTech Global is making a strategic step in integrating rail into its landside logistics business in North America as it announced the purchase of US-based Blume Global, for US$414 million.

WiseTech is buying the rail solutions company from funds managed by Apollo, EQT and other minority shareholders. Blume’s platform enables complete asset management and reservation processing for

organisation as it plans to become a global leader in automotive logistics.

GEFCO, created by French automaker Peugeot in 1949, has been transporting around 4 million vehicles a year using its fleet of 1,600 trucks, nearly 3,000 vehicle transport wagons and more than 100 vehicle compounds. CEVA to replace the GEFCO brand worldwide in 2023, including its existing operations in contract logistics and ground transportation. Former director and COO, Emmanuel Cheremetinski, will lead the team of around 4,000 employees following the integration.

intermodal railroad operations.

The platform helps manage intermodal containers for six of the seven Class-1 US railroads in the US, ocean carriers and other intermodal equipment providers. These include freight forwarders and beneficial cargo

SEKO Logistics ended 2022 with Vietnam expansion

SEKO Logistics officially established its presence in Vietnam’s largest city as it opened its newest headquarters in Ho Chi Minh City in late December of 2022. The logistics company looks to prioritize investments in the region and has set up facilities and staff in key markets across the country, which include two locations in Vietnam’s capital Hanoi and the coastal city of Da Nang.

SEKO started expanding in Vietnam after it took over Bansard International’s operations in 2021. The company now offers over 300,000 square meters of

multifunctional warehouses, such as CFS, bonded and general cargo facilities, in eight locations in Vietnam, including the biggest manufacturing areas of Hai Phong, Da Nang and Binh Duong, the company noted.

The company also has a fleet of over 350 trucks that provide daily linehaul services; strong presence at the Yen Vien Rail Terminal in Hanoi and at port and inland container depots; weekly LCL/MCC and domestic ocean freight as well as air cargo opportunities with over 20 airlines; and a dedicated customs brokerage team.

owners. With Blume, railroads can manage and track crucial assets across the complete supply chain lifecycle.

Blume is projected to generate revenues in the range of US$65-$70 million in FY24 and expects to cashflow breakeven by the end of FY24.

9 www.payloadasia.com | FEBRUARY - MARCH 2023 NEWS - LOGISTICS

Apex Logistics welcomes last Queen freighter

Apex Logistics International is set to offer air cargo capacity on the last ‘Queen of the Sky’ to come out of a Boeing production facility as part of a long-term charter agreement with Atlas Air. The event marks the end of an era for the ‘Queen of the Skies,’ which has helped catapult the global air logistics industry with its unique

nose-loading capability, payload capacity and fuel efficiency.

Parent company Kuehne+Nagel said the last Boeing 747-8F, under the name ‘Empower’, will be deployed on transpacific routes to strengthen intra-Asia connectivity. Atlas Air, the world’s largest operator of 747 freighters, will operate the aircraft on behalf of Apex Logistics. This is the second delivery as part of a long-term strategic partnership with Kuehne+Nagel.

Teleport sets eyes on Australian exports with Wexco

Wexco is now in charge of filling a total of 43 flights per week out of Sydney (SYD), Perth (PER), and Melbourne (MEL), with an average weekly uplift of 120 tonnes.

The GSSA is confident in capitalizing for both companies, citing the strong movements of perishable cargo, health food supplements, electrical goods, general cargo (consolidations), and mail within the region. The company said its goal for 2023 is developing yearround perishable shipment flows, whilst increasing its agent and commodity mix throughout the AirAsia network.

Dimerco secures certifications in Singapore

Dimerco Singapore recently got two certifications for best practices in handling customers’ sensitive cargo between the city state and other countries. It is now certified under the Good Distribution Practice for

Medical Devices (GDPMDS) and Secure Trade Partnership (STP).

“GDPMDS shows that Dimerco Singapore is qualified to handle medical devices by protecting them

against contamination and ensuring the quality and integrity of the cargo during every point of the transit.”

“Dimerco Singapore is also certified with the highest level of security STP-Plus (Premium Band) under the TradeFIRST assessment and the Regulated Air Cargo Agent Regime. This certification demonstrates Dimerco’s robust capabilities in security and visibility of goods, which reduce the risk of cargo theft and ensure efficient and safe supply chain management for all customers.”

The Taiwanese freight company said the STP-Plus certification is equivalent to the AEO (Authorized Economic Operator) certification, which it holds across China, Taiwan, Indonesia, Thailand, Germany and The Netherlands. Dimerco is also certified in similar AEO programmes in the US and Canada.

10 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - FREIGHT FORWARDERS
ECS Group’s Australian subsidiary Wexco Group has closed a contract with Teleport, the logistics venture of Capital A, to sell the belly capacity originating from Australia and New Zealand for three airlines under the AirAsia Group.

CargoAi unveils new payments solution for air freight

Air cargo digital enabler CargoAi has made another first move for the industry as the tech company has introduced its integrated payment solution CargoWALLET. The project, which started 2 years ago and accelerated with the CargoTech partnership, went through months of successful testing. CargoAi said it worked with a ‘large and proven finance provider’ but CEO Matt Petot shared in an interview that the company made banking connections with multiple providers to enable an end-to-end finance payment solution with the same cost as bank transfers in more than 30 currencies.

The new feature will allow freight

Scan Global Logistics has a new owner

Danish logistics provider Scan Global Logistics (SGL) announced in February that its newest owner, CVC Capital Partners Fund VIII or CVC, has agreed to acquire a majority shareholding in the company from an investor group led by AEA Investors Small Business Private Equity.

AEA took over Scan Global Logistics in 2016, after which SGL saw

forwarders to make payments for their air cargo shipments directly within the CargoMART booking flow. What’s revolutionary with the payment solution is that it will enable freight forwarders to book space for their shipments—and pay for them— even without an IATA CASS number, AWB stock, or any bank guarantee.

The CEO added that CargoAi also partnered with financial providers to offer financing solutions to facilitate up to 60-day payment terms for freight forwarders in the form of PayLater. German forwarder network Gross Fuchs in a separate announcement said that it will grant its members access to the new payments solution.

revenue grow by 33 percent percent each year since 2017. Over the last 5 years, the company has made over 30 acquisitions, including that of Hong Kong-based Sea-Air Logistics in July 2022.

Both AEA and SGL’s management will become minority stakeholders and co-invest alongside CVC. Financial terms of the transaction were not disclosed, but the deal is expected to close in the second quarter. In Asia, CVC also owns Fast Logistics in the Philippines, which operates an extensive network of transport, warehousing, distribution, and logistics solutions covering inland, air, and sea forwarding and courier services.

CMA CGM extends air cargo service to Shanghai

CMA CGM AIR CARGO is stepping up its commercial development with the introduction of scheduled services to Shanghai using its Airbus A330-200F. The French cargo airline will fly the widebody freighter to Shanghai Pudong International Airport (PVG) from its hub at Paris Charles de Gaulle Airport (CDG) four times a week, equivalent to 240 tonnes of weekly capacity. Flights depart from CDG on Tuesdays, Thursdays, Fridays and Sundays

starting 17 February.

The addition of Shanghai brings a total of 15 scheduled flights per week to Asia and the US for CMA CGM Air Cargo. The company also

operates five flights a week to Hong Kong (HKG) using a Boeing 777F with 450 tonnes of weekly capacity. Flights depart from CDG to HKG on Mondays, Tuesdays, Thursdays, Fridays, and Saturdays.

11 www.payloadasia.com | FEBRUARY - MARCH 2023 NEWS - FREIGHT
FORWARDERS

Cainiao teams up with DHL in Poland on e-commerce

Alibaba logistics arm Cainiao Network signed an agreement with DHL eCommerce Solutions as the two companies look to capitalise on Poland’s fast-growing e-commerce market, with plans to improve the country’s out-ofhome delivery services.

DHL will purchase part of Cainiao’s subsidiary in Poland, and the two companies plan to invest 60 million euros to build one of the country’s largest networks of parcel lockers with user-friendly interfaces to cover the

e-commerce giant JD.com opens third warehouse in California

JD Logistics United States opened its third self-operating warehouse and distribution center in California, bringing its total warehouse space in the state to over 1.3 million square feet. The company is looking to utilize cutting-edge technology to provide omnichannel fulfillment services for online and offline orders and has already deployed a container transport unit (CTU) robot system in one of its warehouses in California.

This system allows warehouse

first and last

mile.

Cainiao has been setting up its European hub in Liege and launching sorting centers in major markets in Europe over the last few years. The company operates parcel lockers in Poland, Spain, and France, whilst DHL has an extensive network in Europe, counting over 90,000 access points. The transaction is subject to merger control clearance in jurisdictions of certain countries, with approvals expected in the coming months.

employees to wait in designated working stations while the CTUs pick up and drop off goods. Image scanners check the packages in microseconds, whilst JD’s smart logistics system calculates where the packages should be dropped off. The packages are then grouped by region into larger bins, which are picked up by forklifts and brought to the corresponding trucks for delivery to their final destination.

This helped JD.com increase the number of storage units from 10,000 to 35,000 by making full use of the height of the warehouse and improved operating efficiency by 300 percent.

Aramex takes next mile in cargo drone and bot deliveries

Aramex has turned another chapter in its ambitions to become digitally sustainable as the transport and logistics provider announced the successful testing of its drone and roadside bot deliveries in Dubai, a press release confirmed.

The initial tests were conducted at the Rochester Institute of Technology in partnership with BARQ EV, a commercial drone delivery service provider in the UAE, and Kiwibot, a Colombia-based company specializing in delivery robotics.

Aramex plans to expand its drone and robot delivery testing across the Middle East and Africa region, as well as other core markets where it operates. The company has also rolled out mobile outlet trucks that allow the company to operate drones and bots, as well as offer pickup and drop-off points at strategic locations.

The tests were performed with the support of the Dubai Civil Aviation Authority, Roads and Transport Authority, Dubai Silicon Oasis Authority, Dubai Future Foundation and Dubai Smart City. Aramex plans to transition its fleet to emissionfree vehicles and achieve carbon neutrality by 2030.

12 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - E-COMMERCE

Silk Way West eyes Japan with Nippon Express

Silk Way West Airlines and Nippon Express Holdings have signed a memorandum of understanding to offer enhanced air freight solutions between Baku and Japan and across the carrier’s network amidst changing supply chains.

The carrier expects to play an increasingly important role in the region’s freight network, with the conditions of the memorandum aligning perfectly with SWW’s growth strategy in Japan. The airline said the

agreement strengthens its presence in the Japanese market whilst helping Nippon Express to expand globally by providing cargo capacity across a worldwide network.

Silk Way West Airlines has been serving the Japanese air cargo market since 2018 with weekly flights connecting Baku with Kansai International Airport. The cargo airline started offering regular flights to Narita International Airport in 2021.

UPS Singapore widens capacity at Changi

UPS has expanded its operations hub at Changi Airport in a move that will almost double the amount of packages the facility can process each day. UPS said the expansion, which sees the overall size of its hub extended by 25 percent, will allow the company to process 40 percent more import packages, whilst speeding up delivery times to almost 5,000 additional postal codes across the country

Export processing capacity meanwhile is up 45 percent, with extended pickup cut-off times for all export services. Chika Imakita, managing director at UPS Singapore, predicts the demand for e-commerce and complex healthcare

shipments to continue for some time, and to support the sector, the company has installed cold storage solutions at the Changi airport hub, including refrigerators and freezers that can maintain critical temperatures to facilitate the temporary storage of shipments being transported via the cold chain

“Moving forward, Singapore will continue its role as a key part of our Asia Pacific operations. It connects our customers across Southeast Asia and Australasia with our global network, allowing for as soon as next-day delivery to destinations worldwide, including across Asia, Europe and the US,” Imakita noted.

AirAsia resumes cargo flights to China

AirAsia is excited about China’s reopening as the airline is resuming flights to the mainland and along with its belly cargo space through logistics venture Teleport. A total of 18 cargo routes into China are expected to resume in March, with plans to increase to 40 routes by the third quarter this year from Malaysia, Thailand and the Philippines.

The digital freight forwarder has gone a long way since 2018 when AirAsia consolidated its belly capacity under a single comprehensive network. Today, Teleport is an air logistics solutions provider with an extensive intra-Asia network. It uses full

freighters and the belly space of 205 aircraft to transport shipments.

Teleport moved 1.24 million tonnes of cargo out of China through on AirAsia passenger flights back in 2019, and it anticipates doubling its growth in

the Chinese market. The company is bolstering its fleet with one of three A321 freighters expected to arrive this year. It plans to deploy a dedicated freighter to be assigned for China–Kuala Lumpur in 2023, which will allow it to transport specialised, palletised cargo, and dangerous cargo that are restricted on the plane belly.

13 www.payloadasia.com | FEBRUARY - MARCH 2023 NEWS - EXPRESS

CSafe elects new sales director in Singapore

Chervee Ho has joined air freight container supplier CSafe as senior sales director for Asia Pacific. In her new role, Ms. Ho will be responsible for further developing CSafe’s active and passive cold chain packaging business in the Asia Pacific market and identifying opportunities to expand into new markets throughout the region. She will also lead the APAC commercial team with local representation in Singapore, South Korea, Japan and India.

Chervee’s last post was with European

drug manufacturer Vetter Pharma, as head of Asia Pacific. She started her career 20 years ago with Roche and later at Lonza and Vela Diagnostics with various posts in product and account management.

The new director, who speaks fluent Mandarin, Cantonese, Bahasa Melayu and English, will be based in Singapore and bring her expertise in business development, marketing and product management in the pharmaceutical, biotech and contract manufacturing sectors.

New series talks about air freight consolidation

Netherlands-based air freight consolidator Wholesale By Vels has launched a series of instructional videos covering basic airfreight processes, aiming to plug a so-called ‘information void.’ In the series, founder Rinaldo Vels explains the basic steps in making an airfreight booking and arranging the pick-up of freight. The 90-second videos, which can be viewed free of charge, are backed up by explanatory notes which can be downloaded from the Wholesale By Vels website.

Vels, an air freight veteran for over 20 years, including roles as a trainer, described ‘surprising gaps

in basic knowledge’ that can cause problems and misunderstandings, and ultimately more time and money. “Digitisation is great for our industry, but in simplifying and automating processes, it is also depriving many younger airfreight staff of a real understanding of how airfreight actually works. We decided that we needed to fill this information void, and that videos would deliver the necessary information in a way that is both easily digested and memorable…. We believe this kind of information and guidance should be freely and openly shared for the benefit of all – so that’s exactly what we are doing,”

DHL Supply Chain names new Southeast Asia chief

DHL Supply Chain has appointed Andries Retief as chief executive for its Southeast Asia cluster, which covers Singapore, Malaysia, Philippines and Indonesia.

Retief was most recently CEO of DHL Supply Chain Central & Eastern Europe. He began his career at DHL Supply Chain in 2009 as financial manager in South Africa and later became the managing director of

DHL Supply Chain East Africa in 2016. He assumed his position as chief for central and eastern Europe in 2019.

According to DHL, he delivered accelerated growth in Poland, Czech Republic, Hungary and Slovakia, where his leadership saw double-digit growth for three consecutive years in revenue and profitability, having won new business in transport, e-commerce and automotive sectors.

14 FEBRUARY - MARCH 2023 | www.payloadasia.com NEWS - PEOPLE
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How FedEx is helping the MRO industry take-off in the post-pandemic era

After more than two years of pandemic-wrought turbulence, the global aviation industry—including the critical maintenance, repair and overhaul (MRO) sector—has reason for good cheer, with travellers all around the world planning their dream vacations.

Countries have begun to open their borders once again, as we move towards a post-pandemic world with global MRO spend forecasted to grow annually by 4.4 percent between 2022 and 2032 as skies are filled with the roar of jet engines.

The Asia-Pacific region, in particular, is anticipated to register a compound annual growth rate (CAGR) of over 5 percent during the forecast period of 2022 to 2027. Over the next two decades, global demand for new technicians will increase by approximately 50 percent. In Asia, a

projected 249,000 more maintenance technicians will be required by 2040, from the estimated 410,000 in 2020.

The MRO sector is transitioning to a new phase in the post-pandemic era. To meet the growing maintenance demand, operators must establish and implement new strategies. Ensuring that critical aircraft parts are delivered to them in the quickest time possible has never been more imperative.

New generation of aircraft

There is a growing percentage of new-generation, long-haul narrowbody aircraft, replacing older widebody types. Growth in aviation will be concentrated in Asia, particularly China, as it becomes the largest global market for air travel and the new centre of global aviation activity.

The bulk of the fleet expansion,

Organisations and regulators are now looking at ways to implement technologies that improve efficiency, reduce aircraft downtime, and support remote working norms

comprising narrow-body aircraft such as Boeing’s 737 MAX and Airbus’ A320neo, will represent over twothirds of the entire global fleet by 2029.

These new generation jets are 15–20 percent more fuel-efficient and are often engineered with advanced technologies that could potentially improve profitability. In the short term, there will be a decrease in MRO spending as newer and

16 FEBRUARY - MARCH 2023 | www.payloadasia.com
INSIGHTS

more efficient aircraft require less servicing as opposed to older ones. In the medium to long term, MRO spending will be higher as it is costlier to maintain, replace and repair the newer technology and limited parts.

Boost in MRO outsourcing

Due to the current economic climate and rising operating costs, airline operators are looking at ways to move from high fixed costs to a more variable cost base. One approach, for example, would be to reduce in-house MRO services and to outsource them instead. Airline operators could save costs by only engaging maintenance companies when needed as opposed to maintaining in-house technicians every month.

However, MRO players have limited space or warehouse slots and may not be able to meet the influx of demand as more airlines choose to outsource them. Moreover, there is a shortage of technicians in the industry which may present some delays.

That said, the industry presents opportunities for growth, and MRO operators should bear in mind several short and long-term goals that tap into these opportunities.

In the short term, as countries open up their borders and demand for airtravel picks up, airline operators will haul their aircraft out of storage and restart cabin upgrade projects that were put on hold over the past few years. MRO operators should ensure there are sufficient spare parts and mechanics available to meet the surge in demand and avoid delays.

The Covid-19 pandemic continues to generate uncertainty, and some countries may still be subject to lockdowns and border restrictions. In the long term, MRO operators need to have prompt measures in place to be able to adapt and react swiftly to resulting supply chain disruptions. One way of doing that is by upgrading inflexible legacy MRO systems to newer and more efficient technologies, such as cloud, to streamline processes and improve inventory management.

In terms of digital transformation, MROs and maintenance departments have lagged compared to other players like aircraft and engine OEMs (original equipment manufacturers) due to strict regulations, lack of priority and traditional work processes. However, organisations and regulators are now looking at ways to implement technologies that improve efficiency, reduce aircraft downtime, and support remote working norms.

Implementing a good MRO strategy directly affects the bottom line as it eliminates inefficiencies and reduces costs. Transport providers need to be nimble in delivering the OEMs and aftermarket spare parts as required, so that airline operators can instantaneously service their fleets. In addition, MRO operators would also need to plan and mitigate any supply chain constraints in the event of unforeseeable disruptions.

The MRO industry faced significant challenges for the past couple of years and appears to be on the path to recovery and growth. Although industry players will face new challenges that will test their resilience, they should also prepare to tap into opportunities given the

expected rise in demand for such services.

Without doubt, the MRO sector plays a critical role in post-pandemic recovery by ensuring aircrafts are properly serviced to meet passenger and freight demand. Whether we will finally be able to go on that dream holiday abroad or have our goods delivered on the dot is, to a certain extent, in their hands.

17 www.payloadasia.com | FEBRUARY - MARCH 2023
INSIGHTS
Eric Tan, Managing Director, FedEx Express Singapore

Looking back at 2022 and forging the future with Asia Airfreight Terminal’s new chief

In an interview, Payload Asia talks to Asia Airfreight Terminal’s Mike Chew, who took the reins at AAT in December last year, as he looks back on the year that was, as well as his prospects on what lies ahead for the Hong Kong-based air cargo terminal operator.

Can you give us a background on how the company performed in 2022?

Compared to 2021, the cargo performance in 2022 worldwide is weaker. We had a good year in 2021 with many cargo charter operations which we have not seen in 2022. More so, same as the industry, the traditional peak season is quite muted.

But throughout, we look back on a fruitful 2022 with great achievements. We continue to improve our cold chain offerings by launching the firstof-its-kind facility AAT COOLPORT in July, and keep up with the best industry practice in dangerous goods solutions by getting to be the first air cargo terminal in Hong Kong to

obtain IATA CEIV Li-batt Certification in September.

Against constant changes and uncertainties, we remain focused on the safety of the cargo we handle, and delivering consistently high service quality to our customers. We maintain a great team spirit at AAT and have been proudly recognized by many of our customers for being one of their best service providers and partners.

With the opening of COOLPORT last year, what’s AAT’s plan when it comes to positioning itself in the cold chain market? We focus to support pharma and perishables shipments in a complete temperature-controlled environment for the entire cargo handling process. For Hong Kong specifically, it is hugely beneficial to have added capacity, not just for status but to meet the needs of its own citizens. While some regions are able to sustain themselves without outside support, Hong Kong doesn’t grow its own food and so it relies on

importing perishables. Similarly, highvalue pharmaceuticals are needed in a metropolis like Hong Kong.

The COOLPORT stands out in the cargo space, not just because it’s Hong Kong’s first on-airport cold-chain facility but because it continues to represent AAT’s ongoing commitment to offer unique solutions to the growing demand for safe transportation of time and temperature-sensitive air cargo. In a strategic location at the airport, the facility allows for the seamless movement of cargo through the facility in a speedy and effective manner that prevents potential disruptions to the cold chain.

From the moment cargo is accepted at the air-conditioned truck docks,

Against constant changes and uncertainties, we remain focused on the safety of the cargo we handle.

18 FEBRUARY - MARCH 2023 | www.payloadasia.com
C-SUITE

we have special shelters that allow the cargo to come right off the truck into a temperature-controlled environment. There is no exposure to outside temperatures and once it comes into our facilities, it can be broken down, weighed, X-rayed, palletized and stored, with the entire process worked under the specific temperature-controlled environment.

What can you say about the recent certification for Libattery shipments, and how important is this validation based on your customer conversations?

Air cargo shipments containing lithium batteries that could endanger passengers and aircraft remain an issue of concern despite continued increases in volumes, ensuring correct handling has therefore never been more important. To mitigate the risks and address the concern of customers, AAT is one of the first ground handling companies to achieve the IATA CEIV Li-batt Certification as well as the IATA Competency-Based Training and Assessment (CBTA) Center Certification for Dangerous Goods handling.

These certifications are vital for us to further validate and refine handling procedures in compliance with the requirements and regulations of international best practice standards. With the growing demand for air cargo containing lithium batteries, the new additions are welcomed by our customers and industries as it has no doubt given them even more confidence that their consignments containing lithium batteries are being transported efficiently and reliably by us. This also further strengthens the status of Hong Kong International Airport as the world’s hub for all types of cargo.

With Hong Kong and China opening up for travel, what’s the company’s overall outlook?

Since December, China and Hong Kong have started relaxing the crossborder logistics arrangement. It is an encouraging sign of recovery for the Hong Kong aviation industry. While we expect the market to go through the transition period to readjust after the pandemic, we will continue to improve our offerings and focus on our areas of expertise, which include handling

of special cargo shipments, as well as e-commerce cargo and other time- and temperature-sensitive shipments.

AAT runs, via its logistic arm Asia Airfreight Services (AAS), AAS SecurePlus with the only Regulated Air Cargo Screening Facilities (RACSF) located within an airport cargo terminal. The strategic location enables AAT to offer a one-stop onairport integrated cargo screening and logistics solution that covers the export logistics chain between southern China and Hong Kong for the expedited handling of timecritical e-commerce shipments.

With the market opening up, we are also planning for various events engaging our customers and the industry partners, as well as looking to be at industry forums and conferences, reaching out to those that we haven’t been able to meet over the past few challenging years!

Do you forecast air cargo demand to remain strong this year?

Many of our airline customers are resuming and restoring flight capacities to Hong Kong as Hong Kong is a leading aviation hub in the world. Yet, there are still challenges to be faced, such as global economic uncertainties and ongoing geopolitical tensions. We will remain focused while staying cautiously optimistic for the cargo demand to pick up.

Where does the company stand when it comes to digitalisation and sustainability, and what are the trends that you think will play an important role in realising such plans?

While expanding and increasing cargo volumes, AAT is determined to do so in a way that has a minimal impact on the environment. AAT has successfully achieved a 50 percent reduction in its carbon footprint since 2008 with green measures such as switching 95 percent of work vehicles to run on electricity with onsite charging stations for AAT and customer vehicles, retrofitting the warehouse with LED lighting, and applying solar-powered LED lights in outdoor areas. The recent launch, AAT COOLPORT, is also built with sustainability in mind. COOLPORT features non-ozone depleting refrigerants offering a low global

warming potential (GWP), double doors, air curtains, speed doors, and thermal insulation panels. All are designed and built to minimize heat loss to achieve energy savings.

We are pleased that the green efforts are recognised by winning the “Sustainable Warehouse Operator of the Year 2022” in the Freightweek Sustainability Awards, as well as receiving the “Wastewi$e” Certification (Excellent Level) and “Energywi$e” Certification (Excellent Level) from the Hong Kong Green Organization Certification for the ninth consecutive year. AAT continuously implements innovative, eco-friendly initiatives and we believe that green is indeed the colour of the future.

With regards to digitalisation, AAT steps into 2023 with ongoing digital efforts by introducing the advanced “Customs Queuing and Clearance Appointment” functionality in January 2023. The virtual queuing solution facilitates terminal users including truckers and freight forwarders to queue remotely while monitoring the status in real-time for custom clearance process.

Moving forward, technological innovation will remain at the top of the mind of AAT’s development. We have numerous digital transformation projects in the pipeline dedicated to serving our customers better with greater shipment visibility and improved work processes with higher efficiency and effectiveness.

19 www.payloadasia.com | FEBRUARY - MARCH 2023
C-SUITE
Mike Chew, who stepped in as AAT chief last December, is ‘cautiously optimistic’ but with good reason

Airlines and industry partners respond to Turkiye-Syria earthquake crisis

On 6 February 2023, a devastating 7.8-magnitude earthquake hit the Turkish city of Gaziantep in Kahramanmaras province, near the border of southern Turkiye and northern Syria. This was followed by a second tremor, measuring 7.5, just a few hours later some 80 miles north of the first. This would be the catalyst for the series of aftershocks over the next few days that would leave serious fatalities, massive infrastructure damage and huge economic ramifications.

With Turkiye sitting in the middle of the east and west, it wasn’t too long before the aviation and air cargo community, together with their respective crisis relief and logistics partners, sprung into action

to provide urgent airlift for relief supplies. Over the next 10 days after the first shock, numerous airlines and stakeholders deployed their assets and resources to carry out transport for rescue equipment and disaster relief supplies bound for Turkiye.

Global response

On 10 February, a Lufthansa Cargo Boeing 777 freighter, with flight number LH8332, departed Frankfurt (FRA) at 08:01 CET bound for Antalya Airport (AYT), where the aircraft is expected to arrive around 13:30 local time. The freighter took off fully loaded with relief supplies urgently needed on the ground, mainly winter clothing, blankets, food and hygiene items. The in-kind donations came from Turkish communities in Hesse and Baden-Württemberg, from companies in the region and from airline employees.

time:matters, a Lufthansa unit that specializes in emergency logistics, and customs service provider CB

customs broker, which also belongs to the airline, organized the extensive relief operation. The Lufthansa Cargo team in Istanbul worked with Türkiye’s Disaster and Emergency Management Authority (AFAD), who brought the relief supplies to the crisis area.

IATA or the International Air Transport Association, a trade body that represents some 300 airlines that make up 83 percent of global air traffic, highlighted the important contributions from the aviation industry to the relief efforts. On social media, IATA member airlines from Europe, the Middle East and Asia posted videos of their ground operations, including the likes of Qatar AIrways, Mongolian Airlines, and Wamos Air.

In Dubai, Emirates had started setting up an air bridge together with the International Humanitarian City (IHC), to transport urgent relief supplies, medical items and equipment to support on-ground efforts and search

20 OCTOBER - NOVEMBER 2022 | www.payloadasia.com COVER STORY
It is times like these that we feel we can really help to make a difference in people’s lives.

and rescue activities in Turkiye and Syria. The first shipments consisted of high thermal blankets and family tents and relief cargo of medical kits and shelter items, which had been coordinated by the IHC together with the world’s top humanitarian organizations. The critical emergency supplies were loaded onto flights EK121 and EK-117, which were then delivered to local organisations for distribution to affected areas.

Charters and express deliver

Halfway across the world, global express providers FedEx and UPS came to support the ongoing efforts. United Postal Service operated an airbridge to Istanbul from its European hub in Cologne, Germany and pledged more than US$1 million in global logistics services. It also transported food, healthcare and shelter supplies to Türkiye from its main air hub in Louisville, Kentucky. On the ground, the company offered transport capacity on UPS lorries for the Istanbul city government, Turkish Red Crescent and a local nonprofit.

Over the next few weeks after the first tremor, charter operators took on the mission of providing airlift for the rescue party and transporting essential humanitarian aid from all over the globe. By the following month, UK-based Air Charter Service had arranged more than 40 charter flights, flying in search and rescue teams and delivering more than 2,000 tonnes of humanitarian cargo on behalf of governments and nonprofit organisations.

“We started receiving calls for help early on Monday, before the second earthquake had struck,” said Ben Dinsdale, Director of Government and Humanitarian Service. “For the search and rescue personnel ready to go, Gaziantep Airport— nearest the epicentre—was still fully operational. By the following day we had flown German and British teams there, as well as someone from our Frankfurt office to oversee the smooth operation of the following charters.”

“Later in the week we started flying in relief cargo, with our first flight

being an entire field hospital on a Boeing 747 from Spain. We have now transported more than 2,000 tonnes of relief cargo on a wide variety of aircraft… The cargo flights have come from all around the globe, including Asia, the US, the Middle East, Northern Europe and even the Canary Islands. We still have several charters booked that will fly in the next couple of weeks.”

Not without roadblocks

Whilst airlines and the air cargo industry as a whole quickly demonstrated its role on the front line of humanitarian response, there were still some roadblocks that required much needed political attention. Syria being a war-torn area presented an obstacle for those who were flying over the country.

On 15 February, The International Air Cargo Association (TIACA) acknowledged the supporting efforts of the US Department of the Treasury’s Office of Foreign Assets Control which issued Syria General License 23. This blanket license would authorize all transactions related to earthquake relief that would be otherwise prohibited by the Syrian Sanctions Regulations (SySR) for 180 days, allowing aid to flow much quicker to the affected area.

With this obstacle removed, TIACA called upon the insurance markets to relax some of the stringent procedures and financial penalties in place when flying to Syria as a sanctioned state considered as a war zone.

“Flights need to get as close as possible to where the aid is needed, therefore flying to Damascus or Aleppo is vital to support Syrian relief efforts but with current Hull war risk premiums in place the financial impact is often too much for humanitarian agencies to bear.

We urge the insurance markets to follow the lead of the US Treasury department and remove the current penalty for a limited time period to support relief efforts.”

Air charter specialist Chapman

Freeborn also had to gain the necessary land permits, flyover rights and approvals from the Syria’ Civilian Aviation Authority and Ministry of Foreign Affairs so that thousands of tonnes of aid could reach the affected population.

The company is no stranger to emergency response, having supported humanitarian efforts for every major global crisis over the past 50 years. Despite dwindling capacities, it successfully chartered aid flights to the affected regions from the US, United Arab Emirates, Germany, Spain, Belgium, India, Saudi Arabia, Denmark, Singapore and the Philippines.

“The worldwide compassion expressed following this disaster just underlines all that is good amongst the human race,” expressed David Tasker, group director for government & humanitarian, Chapman Freeborn.

“The whole aviation industry and associated industries were quick to react, with Chapman Freeborn proud to be at the forefront with their support. The whole industry must be commended.”

In a statement, Ben Dinsdale, director of government and humanitarian services at ACS, commented: “it is times like these that we feel we can really help to make a difference in thousands of people’s lives. Hopefully we can, in some small way, make their lives slightly more bearable for now.”

21 COVER STORY www.payloadasia.com | OCTOBER - NOVEMBER 2022
The worldwide compassion expressed following this disaster just underlines all that is good amongst the human race.
Photo credit: Lufthansa Group

Sustainable aviation fuel in Asia Pacific

SAF takes off in Asia as stakeholders march forth towards net zero

The term sustainability aviation fuel has certainly got the attention of people in the boardroom of air transport and logistics companies and is now becoming a driving force towards the industry’s decarbonisation agenda. In recent updates, several airlines and industry stakeholders have announced their respective initiatives on this. In this special feature, we’ll take a look at ongoing developments in terms of SAF takeup and supply plans across Asia Pacific, Europe and the Middle East. First stop: Asia Pacific

Asia Pacific

In Japan, all cargo airline Nippon Airways used sustainable aviation fuel for several cargo flights in November and December in 2022. The sustainable aviation fuel is supplied by Neste at Amsterdam Airport Schiphol. NCA plans to source SAF at all of its destinations, according to a top executive. In January, ANA, which has set a goal of replacing at least 10 percent of its jet fuel with SAF by 2030, signed a memorandum of understanding with local supplier

ITOCHU Corporation and Raven SR who will begin production of SAF in California by 2025. The latter owns patented technology for converting various types of local waste into hydrogen and clean fuel, including green waste, municipal solid waste, organic waste, and methane from municipal solid waste.

In China, airlines and aircraft manufacturers have joined the cause after Airbus opened a new sustainable aviation chapter in October last year. Airbus powered an A320neo from its Tianjin delivery centre with five percent SAF fuel blend for delivery to China Eastern Airlines. The SAF was produced locally from used cooking oil by SINOPEC Zhenhai Refining & Chemical Company, a state-owned manufacturer in China. It is the first batch of China-made SAF from a certified Chinese facility.

In Taiwan, China Airlines set a new benchmark for sustainability among local carriers after it was recognised as the top performer in ESG (Environmental Protection, Social Responsibility, Corporate

Governance) in the airline industry by S&P Global’s Sustainability Yearbook. The Taiwanese airline, which has committed to “net zero by 2050”, became the first airline in Taiwan to demonstrate the use of SAF when ferrying new aircraft back to Taiwan in 2017. The airline said every A321neo next-generation passenger aircraft has used 10 percent SAF for ferry flights since 2021.

In Singapore, Neste has established an APAC innovation centre to strengthen its innovation and R&D capabilities in the Asian market. The company said the new centre with state-of-the-art laboratory equipment and advanced analytical and raw material research capabilities focuses on research around raw materials and the pretreatment processes. Plans are underway for expanding its renewable products refinery in Singapore, slated to begin by the end of the first quarter in 2023.

In the next special feature on SAF, we will feature ongoing developments in Europe led by airports and freight forwarders.

23 www.payloadasia.com | FEBRUARY - MARCH 2023 SPECIAL FEATURE

Airport stakeholders converge at Marina Bay Sands for 8th inter-airport Southeast Asia

inter-airport Southeast Asia once again welcomed speakers and exhibitors after a 4-year hiatus, finishing on a positive note after 3 days of conferences and exhibition at the Marina Bay Sands in Singapore on 1-3 March.

The conference saw high-level representations from airports, business partners including architects, designers and consultants as well as the aviation ecosystem, including airlines and ground handlers. Joining the lineup of industry heavyweights during the conference were Jean Roche, head of international engineering services at ADP International; Piyush Chawla, APAC managing director at Cirium; and Angela Ng, director at the Civil Aviation Authority of Singapore.

Industry players took the opportunity to launch new offerings at the exhibition space, which include a battery-powered ground power unit that can reduce carbon footprint developed by ITW GSE, remote-controlled aircraft tug by Sanxing; as well as improved face recognition technology by Cognitec.

The exhibition also gathered representatives from Germany and Italy with the German representation growing 27 percent compared to the last IASEA held in 2019. The biennial event will return to Singapore for the 9th edition in 2025.

Singapore brings back aviation safety conference in Asia Pacific

Singapore hosted the inaugural Asia Pacific Summit for Aviation Safety on 22-24 March at the Marina Bay Sands. Jointly organised by nonprofit Flight Safety Foundation and the Civil Aviation Authority of Singapore, the conference gathered senior leaders and aviation professionals, including regulators, airlines, aircraft manufacturers, maintenance organisations, air navigation service providers and aerodrome operators, from across the Asia Pacific region to discuss aviation safety challenges and initiatives.

One of the highlights of the conference was the announcement of a new Asia Pacific Centre for Aviation Safety in Singapore. Flight Safety Foundation will set up the new centre to help aviation stakeholders in the region raise safety standards and capabilities to restart and ramp up operations safely as air travel recovers to pre-pandemic levels.

Supported by the Civil Aviation Authority of Singapore, the centre will develop an annual work programme to meet the needs of regulators and industry in the region and undertake projects and studies and adopt a data-driven approach to provide a deeper understanding of safety challenges and build capabilities in technology, data analytics and safety management processes. It will work on three key projects in 2023, focusing on regional safety assessment, safety culture leadership, and pilot competency and training capabilities. CAAS will help fund the centre to support the initial set-up and its activities for the first five years. Mitchell A. Fox, a former airline pilot and long-time executive with the International Civil Aviation Organization, was appointed to serve as the centre director.

Asia Pacific Summit for Aviation Safety represents the relaunch of the annual Singapore Aviation Safety Seminar, which had been organised since 2015. The event was renamed to reflect its greater scale and reach.

24 FEBRUARY - MARCH 2023 | www.payloadasia.com
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