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FLIGHTPATHSSET FOR
BUDAPEST
TIACA Board memberSanjeev S Gadhia onliberalization in Africa
The ECS Group’s NextGenleaders seek ‘out of box’ideas
Regional giants are movingquickly to exploit growthopportunities
The Cargo Service Qualitytool launched to help aircargo stakeholders
The magazine of The International Air Cargo Association USD12/EUR1 www.tiaca.orgSpring 2019
TIACA'S EXECUTIVE SUMMIT 2019
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TIACA'S EXECUTIVE SUMMIT 2019
CROSS COMPANY INDUSTRY COLLABORATION
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COMMENT 3
Before writing this introduction I just finishedparticipation and the panel at IATA WCS whichwas devoted to the Chinese “Belt and RoadInitiative”. This topic deserves special analysis inan article but today I just want to mention thepotential effect the project will have on the waycargo is transported between China and 62 othercountries in Asia, Europe, Middle East and Africa. With the investment of US$143 billion in theground infrastructure, the chances for diversionof air cargo to the modern, faster than presentand probably cheaper railroads are becomingquite real. The overall volume of the goods movedbetween China and other participating economieswill be steadily growing with the expansion andmodernization of ground infrastructure. Whatshould be our strategy?
As a minimum, we want to retain our relativelystable share of 35% in the overall trade whichshould allow for an overall proportional growthalong with the growth of other modes oftransport. It’s apparent that we will have tocompete with the modernized ground transportwhich is going to reduce by half the delivery timefrom China to almost any destination. And we willbe able to compete more successfully if we keepthe pace of modernization of the air cargoprocesses at least at the level of other transportmodes. IT solutions, Blockchains, Backboneprojects, faster expansion of the electronicdocumentation leading to a paperlessenvironment - all the topics of our numerousconference discussions should be transformedinto practical implementation.
Another issue related to the efficiency is the needfor continued efforts to improve conditions “at theborder” which is customs, tariffs, aviationsecurity, and other border control functions. One
notable development is the emergence of thirdparty providers of the canine services. Just takingone country as an example – the USA CBP CanineProgram is critical to the mission of theDepartment of Homeland Security: “To Protect theHomeland.” With the growing number ofproviders of the service the speed of cargomovement is likely not to be negatively affectedeven with the introduction of the stricterregulations and growing volume of air cargo.
There is one issue which is common to manydiscussions, articles and presentations. It is theresources, and more specifically the humanresources. Technology is rapidly changing andimproving the way we manage our facilities. It isairports, warehouses, sales offices and manyother units of the air cargo supply chain.However, with the increased efficiency oftencomes a need to reduce the workforce and alsoto adapt those who remain to the new workingenvironment. So comes the problem of relocation,hopefully not laying off, and training of those whochange the jobs and those who have to learn newtools and practices. A serious analysis is to bemade on the specialists’ requirements in theyears to come, and relevant training andrelocation programs are to be developed.
Tackling emergingissues
CONTENTSMAGAZINE
05 BOARD BRIEFINGLiberalization dawns in Africa.
06 REGIONAL FOCUSFortune favors the brave in theMiddle East.
09 BUDAPESTHungary is looking east towardsChina for e-commerce and business.
10 FUTURE THINKINGThe ECS Group’s NextGen leadersare seeking ‘out of box’ ideas.
12 MEMBERS NEWSTurkish cargo returns lions.
13 TIACA NEWSBudapest to host TIACA ExecutiveSummit.
16 INNOVATIONThe Cargo Service Quality tool hasbeen launched to help air cargostakeholders.
18 POINT OF VIEWJohn Manners Bell of TransportIntelligence on the factors drivingchange in air cargo.
B O A R D B R I E F I N G 5
Spring 2019 TIACA Times | www.tiaca.org
This will be an important year for Africa as it abolishes an era of protectionism and embraces
liberalization with the implementation of the Single African Air Transport Market (SAATM), whilst the
African Continental Free Trade Area will create the largest economic zone for African countries to trade
with each other, as never before, propelling aviation growth within the continent.
Foreign airlines, which control 80% of the air cargo volumes to and from Africa, will have to increase
their co-operation with African carriers, while a new era of co-operation amongst African airlines will
benefit the aviation sector, and will result in improved accessibility and connectivity to the most
fragmented continent in the world.
in February at the 5th Air Cargo Africa event in Johannesburg, South Africa, Vuyani Jarana, Chief
Executive officer (CEo)– South African Airlines, said that increasing air cargo traffic within Africa would
require airport infrastructure development. Moreover, air traffic charges and levies should be set to
promote air traffic – excessive charges and levies serve to discourage air traffic and could make some
routes uneconomic to operate.
Turkish Airlines has seen a 45% growth into and out of Africa, and hopes to be in the top five carriers in
Africa by 2020, and Saudia Cargo, meanwhile, is developing a hub and spoke network from Jeddah to
serve Africa.
on e-commerce, Fitsum Abadi, Managing Director of Ethiopian Cargo, said: “e-commerce will be the
future in Africa, the middle class is slowly growing. But integrated logistics services will definitely be a
challenge. Air connectivity is very important, but we need to connect land and sea too.”
Later in the month, the president of Rwanda, paul Kagame, told delegates at the 4th Aviation Africa
2019 Summit and Exhibition in Kigali that protectionism is a short-sighted policy that serves only to
keep the African market fragmented, inefficient, and expensive – thereby reducing opportunities for
African firms.
“Regional integration has seen some notable achievements over the past year, chief among which is
the SAATM,” said president Kagame. “However, the full promise of this pact only becomes apparent in
the wider context of the African Continental Free Trade Area and the protocol of the Free Movement of
persons, which were also signed last year.”
“now is the time to reconsider how Africa’s aviation market is positioned in order to maximize its full
potential. Governments should leave behind protectionist approaches to regulating aviation and
embrace liberalization, because when such policies are adopted, countries benefit from improved
connectivity and a positive impact on trade, tourism, and employment,” said Akbar Al Baker, Chairman
of the international Air Transport Association (iATA) Board of Governors and the CEo of Qatar Airways.
LIBERALIZATIONDAWNS IN AFRICA
TiACA Board member Sanjeev SGadhia, CEo, Astral AviationLimited, explains that these areexciting times in Africa’s air cargoindustry with creation of theSingle African Air TransportMarket and the AfricanContinental Free Trade Area.
opinion
R E G I O N6
FORTUNEFAVOURSTHE BRAVERegional giants move quickly toexploit growth opportunities inservices and destinations, addingcapacity in one of the world’smost dynamic air cargo markets,writes Anna newnham.
MiDDLE EAST
The Middle East has always punched above its
weight in air cargo terms, thanks to its location at
the crossroads between Europe, Africa, central
Asia, south-east Asia, and the indian-sub-
continent.
The Middle East is in third place in terms of
regional air cargo growth rates, according to the
international Air Transport Association (iATA), as a
result of its logical suitability as a hub for
transcontinental cargo and the proactivity of the
region’s main air cargo players.
The downside of its enviable location is its
vulnerability to shocks in international trade,
much of which passes through the oil-rich states
bordering the Arabian-persian Gulf. The region
has also suffered more than its fair share of wars,
with the Saudi-Yemen conflict and Syrian civil war
still raging, casting a shadow over the region.
iATA says that Middle Eastern carriers’ freight
volumes were up, by 1.7% year-on-year in
november 2018, revised to 0.1% year-on-year at
the end of 2018. Despite the December
slowdown in growth, the region recorded an
annual increase in demand of 3.9% in 2018.
Capacity is, however, outstripping demand, up
6.2% in 2018. iATA’s predictions for 2019 globally
were cautiously optimistic.
in January 2019, World ACD, the air cargo market
database, picked out two positive trends in a
mixed picture of results for last year – strong
growth in pharmaceuticals, plus cargo to and
from South America.
Extra capacity is an indication of bold ambitions
and the region’s air cargo players are not slow to
take up new opportunities. in January this year
Emirates SkyCargo began a new weekly B777
freighter service to Bogota, Columbia. The
service builds on a network of 160 cargo
destinations, all served from a dual hub in Dubai,
at Dubai international Airport and at Dubai World
Central.
The arrangement means that Emirates can switch
freight between passenger and freighter aircraft,
and in September 2018, the airline celebrated
transporting its millionth unit load device (ULD) on
the 24/7 trucking service used to connect the two
Emirates SkyCentral hubs.
Emirates SkyCargo’s multi-airporthub and trucking service hasbeen able to offer new ‘EmiratesPharma’ products, capturing newbusiness and gaining significantvolumes since launching inSeptember 2016.
R E G I O N 7
It is important thatwe leverage AbuDhabi’s strategicpositioning at thecenter of the world’s
busiest trade lanes to serve thesekey markets. Our freighters arecentral to this strategy, and the newnetwork plan will ensure wemaximise the cargo flows betweenmain deck cargo and belly-hold.
– Abdulla Mohamed Shadid Etihad Airways
The multi-airport hub and trucking service carries
all manner of cargoes – live, animals, perishables,
and pharmaceuticals – and with Good
Distribution practices (GDp certification) in
pharmaceuticals carriage, it has been able to
offer new ‘Emirates pharma’ products, capturing
new business and gaining significant volumes
since launching in September 2016.
Etihad Cargo has also been expanding capacity,
to China, india, and Vietnam, in September.
Abdulla Mohamed Shadid, Etihad Airways
Managing Director Cargo and Logistics, said: “it is
important that we leverage Abu Dhabi’s strategic
positioning at the center of the world’s busiest
trade lanes to serve these key markets. our
freighters are central to this strategy, and the new
network plan will ensure we maximise the cargo
flows between main deck cargo and belly-hold.”
in november, it also launched a new cargo route
to Barcelona, Spain, where it also serves Madrid,
bringing its cargo capacity to both cities to
23,000 tonnes.
in January this year the airline took a significant
step into the pharmaceuticals trade by obtaining
iATA’s Centre of Excellence for independent
Validators (CEiV) certification in pharmaceutical
Logistics. Coupled with this, it began a
refurbishment and expansion of its temperature-
controlled space in its pharma zone at Abu Dhabi
international Airport at the end of last year, to
take advantage of a rising market sector.
not to be outdone by its near neighbors, Bahrain
has begun construction of a new cargo terminal
at its airport, signing a deal in november 2018 to
build the 25,000 sq m Cargo Area, due to come
on-line, along with other airport modernizations,
towards the end of 2019.
The Bahrain Airport Company signed up FedEx
Express in February 2019 to take the first
9,000 sq m of the new terminal and says it is in
negotiations with two further companies.
Saudia Cargo is also planning major expansion,
launching its project for new terminals at King
Abdulaziz international Airport in Jeddah in
September 2018, part of an ambitious plan to
double freight capacity and position Saudi Arabia
as a global logistics hub to rival its neighbors. it
also launched a new express service between
mainly European centers and the Kingdom in
october last year.
Qatar Airways Cargo is another airline keen to
maximise opportunities to the burgeoning South
American market, and in January added
Guadalajara, Mexico, to its twice-weekly B777
freighter route of Macau-Los Angeles-Mexico
City-Liege-Doha. in the same month it
announced increases in capacity to destinations
in Asia – Kuala Lumpur and Bangalore – as well
as the European destinations paris, Copenhagen,
Geneva and Barcelona, intra-regional flights to
Muscat, and extra flights to Dar Es Salaam. The
carrier also began B777 freighter operations to
Almaty in Kazakhstan.
The carrier has been expanding rapidly, with
cargo volumes increasing by 10% in 2018. Future
plans include the completion of construction of
its Cargo Terminal 2, which will increase annual
cargo capacity at Qatar Airways’ hub in Doha to
3.2 million tonnes annually.
Spring 2019 TIACA Times | www.tiaca.org
TIACA’S new online training offers a range of high standard courses.
Catering for Management, Leadership and Communications quali� cations. Our legacy and specialisation is with the Technical Corps across Logistics and Telecoms.
These are just a few of the online training offered. To join visit tiaca.org
NEW ONLINE TRAINING AVAILABLE AT ATTIACA.ORG
5600 NW 36th St # 620 • Miami, FL 33166, USA • Telephone: +1 (0) 786 265 7011
TIACA'S EXECUTIVE SUMMIT 2019
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China, the sleeping dragon, is stirring, driving the
rise of e-commerce and connecting the world.
it is poised to become the world’s top retail
market in 2019, displacing the USA, and, despite
a slowing economy and the ongoing US-China
trade war, the popularity of e-commerce and
rising spending in lower tier cities is set to boost
China’s retail sector.
At the same time, Hungary, Budapest Airport’s
(BUD) domestic market, has seen the
e-commerce market grow at a rate of more than
27% in 2017. The record high employment rate in
Hungary certainly supports the higher e-
commerce consumer ratio. E-commerce has
changed the way we all do business and, with so
many opportunities, we have invested in new
facilities and are forging new relationships.
Hungary was the first European country to sign a
memorandum of understanding on the Belt and
Road initiative with China, and BUD is playing a
significant role in building and investing in the
relationship between China and Hungary by
becoming a centre for e-commerce.
BUD has recently been building partnerships and
cooperation between Chinese e-commerce
giants such as, YTo, STo, ZTo, SF Express and
the Cainiao Group.
in March, for the second time we hosted a one-
day forum with an investment and logistics
delegation from Shanghai, which included
representatives such as Li Jiupeng, CEo of
Eastern Air Logistics Co, Ltd (EAL), Chairman of
the Board of China Cargo Airlines, and Chairman
of the Shanghai Cross-border E-commerce
Association (SCEA). The third logistics forum is
already set for the beginning of April in Shanghai.
We have more direct and indirect (transfer) full
freighter flight connections to and from China, as
well as belly cargo connections such as the
Beijing to BUD route operated by Air China.
This June, we are opening a three-times-a-week
passenger route with belly cargo between
Shanghai pudong Airport (pVG) and BUD, and
more routes are to be announced.
As well as increasing Chinese imports to Hungary
and Europe, we are also seeing more and more
interest in Hungarian export-oriented sectors like
the automotive, pharmaceutical, and electronics
industries in the development of air cargo in
Hungary, and it is our mission to support this
drive with further developments.
As part of a EUR160 million (HUF50 billion) for the
BUD:2020 Development programme, we are
continuing to grow our infrastructure and expand
our freight handling capabilities.
Two new integrator buildings measuring over
16,000 sq m were opened to express companies
in the summer of 2017 and allowed DHL and TnT
to increase their cargo processing capacity
threefold.
BUD CARGo CiTYA significant part of the BUD:2020 program is the
dedicated air cargo processing centre, ‘BUD
Cargo City’, which is set to open in november
this year, only a year after construction began.
This state-of-the-art 35,000 sq m air cargo facility,
which includes office space as well, will handle
freighters operated by carriers including
AirBridgeCargo, Cargolux, Silk Way West, Turkish
Cargo, and Qatar Airways Cargo, as well as belly
cargo from other airlines, expanding the hub’s
cargo handling.
BUD has experienced record-breaking year-on-
year growth in air cargo volumes, which have
increased more than 60% since 2015.
BUD set another all-time record in 2018, with
146,113 tonnes of cargo arriving and departing at
BUD in a single year, a 14.9% increase on the
figures for 2017, when 127,145 tonnes of cargo
was processed at the airport and was also, at the
time, a new record.
Looking ahead, it is clear that the air cargo
community has played a central role in our
growth, successes, and partnerships, and this
november we hope to see you at the TiACA
Executive Summit, which we are honoured to be
hosting.
B U D A P E S T 9
Spring 2019 TIACA Times | www.tiaca.org
THE VIEW FROMBUDAPEST
LooKinG EAST
Budapest Airport is seeing increasingly strong links developing withChina as Hungary becomes a centre for e-commerce, writes RenéDroese, Executive Director property and Cargo at Budapest Airport.
F U T U R E T H I N K I N G10
www.tiaca.org | TIACA Times Spring 2019
Many people do not consider air cargo as a
career because they do not even know it exists –
they never think about how the flowers are
available all year round, or how the stage sets at
the concerts they attend are moved around the
world in such a short time.
of course, the growth of online shopping and the
rapid rise of companies like Amazon has helped
raise the profile of worldwide logistics and
delivery, so maybe the timing is right to build on
that? Especially as all the new technologies
create an environment where real step-change
can take place.
one company has taken that idea to a whole new
level. ECS Group launched its nextGen Leaders
project in January and had 637 participants in
300 teams registering, with more than 200
projects actually entered by the deadline at the
end of February.
it asked students and start-up companies to
submit innovative project ideas on one of four
subjects:
• people
• sustainability
• digital technologies or
• added value services.
it said the teams should come up with solutions
or tools to boost performance, moving towards
time-saving, efficiency gains and might, for
instance, include voice technology, augmented
reality, and/or collaborative work.
“But the whole idea is for people to come up with
‘out of the box’ ideas that will transform our
industry’s best practices,” said Audrey Serdjebi,
Head of Communications & Marketing, ECS
Group. “We see this project as the first step in a
longer-term ‘Weapons of Mass inclusion’ strategy.”
ECS personnel in each country, who could also
submit ideas themselves, promoted the idea in
local schools and universities and through social
media, and continue to be heavily involved in the
process.
“We were completely overwhelmed by the
response we had. We felt it was a really good
idea but we did not expect such a great reaction.
We have had 225 bids from 57 countries all
around the world,” said Serdjebi. “And the
interesting thing is that the bids are almost evenly
spread among the four categories.”
The projects will go through a selection process,
with those making the first cut being offered a
few hours of on-line mentoring by ECS people
and senior figures in the air cargo industry.
They will each spend 48 hours with the ECS
mentors (and invited customers and suppliers) in
their local country to work on the project before
making their five minute pitch to air cargo
industry leaders at ECS headquarters in France
via video conference. The best ten will then be
sent on to a grand jury who will select a final
three.
“Everyone we spoke to was really enthusiastic to
help,” said Serdjebi.
“We want to find new talent and great ideas for
the whole industry, not just for ECS. This project
is bringing in a whole lot of fresh ideas from
outside the industry.”
WEAPONS OFMASS INCLUSION
nExTGEn LEADERS
The ECS Group’s nextGenLeaders has had a big responsein its campaign to get studentsand start-up companies to comeup with ‘out of the box’ ideas thatwill transform the industry’s bestpractices. Yvonne Mulder reports.
The whole idea isfor people to comeup with ‘out of thebox’ ideas that willtransform ourindustry’s bestpractices.
– Audrey Serdjebi,ECS Group
F U T U R E T H I N K I N G 11
Spring 2019 TIACA Times | www.tiaca.org
Sebastiaan Scholte, Charmain of TiACA, has
been a supporter from the start and is a member
of the grand jury.
“it is important to attract young talent and
especially to promote innovation, which is
needed in this industry,” said Scholte.
“innovation and young talent are top priorities for
TiACA, and therefore we gladly endorse and
participate in the scheme.”
The three best projects will be announced at the
Air Cargo Europe Awards at the Transport
Logistic exhibition and conference in Munich in
June.
“And the important thing is that these ideas will
then be advanced,” said Serdjebi. “All the
solutions presented will be able to find business
angels to pursue their projects, find financing or
join prestigious companies.”
She believes the best outcome would be for
TiACA to take over the project as a second step
to gather more new ideas so that it continues to
help drive innovation in the industry.
“The nextGen project also means that we have
all these people all around the world suddenly
thinking of air cargo as an exciting place to work.
Most students probably never even considered it
before, so it has already been a success.
“For me it is a very challenging industry and i love
it, so i am delighted to see this idea turn into such
a good way of promoting the industry – and
hopefully nextGen Leaders will bring in brilliant
ideas which help transform the industry.”
BRINGING IN NEW IDEASOne of the main aims of the NextGen Leaders challenge is to bring in ideas
from outside the existing air cargo industry. This strategy is working well,
certainly at the initial stage, as evidenced by the teams entering.
Subjects students are studying include: law, medicine, architecture,
mathematics, history, communication, economic science, design,
computing, technology, business, and engineering. For the start-ups,
the industries they are involved in include: biotech, e-health, digital
media, geo-tracking, financial technology (fintech), Internet of Things
(IoT), and business support, as well as big data analytics and other
general IT.
People will find the air cargo industry a great place to
work because there is so much potential to make a
difference, according to Sara van Gelder, Cargo
Business Development Manager, Brussels Airport
Company.
“There are quite a lot of areas where the air cargo
industry has not changed for years, so there are lots
of opportunities to improve efficiency and quality,
especially with all the new technologies,” she
explained.
Sara joined the Brussels Airport Company about three
years ago and has been involved in the roll-out of the
BRUcloud data-sharing platform. “I was given good
guidelines and mentorship by Steven Polmans [Head
of Cargo and Logistics] but I also had the freedom to
have my own approach and input. Last year I also
got the opportunity to do a postgraduate degree in data
analytics. This is a really exciting industry to work in,
with lots of different ways to really influence the way
things are done.”
Sara suggested it is important that younger
people in the industry reach out to students
and others considering a career in logistics.
“We have set up YAN, Young Airfreight
Network, because we want to help young
people to create their own networks. It is often
easier to ask questions of other youngsters
than when, for instance, you talk to managers
in a more formal setting.”
AN INDUSTRY WITHOPPORTUNITIES
M E M B E R N E W S12
BREAK INTO NEW MARKETSwith the partnering power of WCA’s global network. of WCA’s global network.
www.wcaworld.com
Turkish Cargo has delivered three young
lionesses and a young lion to a wildlife park in
South Africa, after they were rescued from a
Ukrainian circus troop. The young lion, nathan,
and the three young lionesses – Luca, Charlie,
and Kai – had been used as circus animals and
had been placed in a concrete and steel cage of
35 sq m in Kiev, Ukraine, in harsh conditions
without direct sunlight and clean air.
The lions were transported in specially -designed
containers, accompanied by their keepers,
specially assigned veterinarians, an authorized
person from the Lawrence Anthony World
organization, and international Air Transport
Association Live Animals Regulations (iATA LAR)
certificated Turkish Cargo personnel during the
flight.
The lions were set free at Kragga Kamma natural
park, a natural habitat containing large animal
populations and offering all-green coastal forest
and meadows extending along 14,000 sq m.
Elsewhere, Turkish Airlines has signed a Master
Rental Agreement with DoKaSch Temperature
Solutions, the provider of climate-controlled
ULD’s, for its air cargo based in Frankfurt,
Germany.
The agreement started in February 2019.
TURKISH CARGORETURNS LIONS
T I A C A N E W S 13
Spring 2019 TIACA Times | www.tiaca.org
BUDAPEST TOHOST TIACA ES
Budapest Airport (BUD) will host The international
Air Cargo (TiACA)’s Executive Summit (ES) and
Annual General Meeting from november 19-21,
2019. TiACA is working with EVA international
Media to organise its ES, which brings together
decision-makers from across the globe for a
series of panel discussions, keynote speeches,
and round-table debates.
BUD will host an opening Ceremony for its new
dedicated freight centre, called BUD Cargo
City, during the event, inviting delegates,
customers, and suppliers to tour the facility,
followed by a Gala Dinner at its historic
Terminal one building.
“TiACA’s ES offers all sections of the air cargo
community a forum to meet and discuss the
challenges and opportunities in our dynamic
industry,” said Sebastiaan Scholte, Chief
Executive officer (CEo) Jan de Rijk, and
Chairman, TiACA.
TIACA training partner Transport Security
Associates Ltd has been under new
leadership since January 2019. Matt Pearce
was recruited to the role of Managing
Director of the Transport Security Associates
Ltd business. Matt joined the business from
the UK Department for Transport where he
worked as an Aviation Security expert in the
International Operations team.
TiACA is now accepting nominations for its
annual Hall of Fame, which recognizes individuals
who have made a huge difference to the global
air cargo community.
The winning candidate will be celebrated at a gala
event at the Association’s forthcoming Executive
Summit in november 2019, joining a long list of
industry stalwarts from around the world.
“Since launching our Hall of Fame in 1997, we
have recognized dozens of professionals who
have played a pivotal role in the progress of
aviation and helped to shape the industry as it is
today,” said Vladimir Zubkov, Secretary General,
TiACA. “We encourage our members, as well as
organizations and the press to put forward
individuals they believe are deserving for
consideration of this accolade.”
For more information, visit www.tiaca.org
AIR CARGO HALL OF FAME NOMINATIONS SOUGHT
PEARCE HEADS UP TIACATRAINING PARTNER
Join TIACA to increase your visibility in the air cargo industry,
“TIACA is the global voice bringing together all elements of air cargo and logistics trends, changes, updates relating to government, customs, trade and regulatory authorities’ policies
of being a member of TIACA lies in the ability to advocate on industry issues, networking and access to a reliable source of global air cargo information.”
- Wong Chee Meng, SATS
• Gain unique networking opportunities and a boost in business prospects
• your daily business
• development opportunities
• Network with air cargo leaders at the annual Executive Summit, free for TIACA members
• in the Air Cargo Forum
Apply for membership online at www.tiaca.org
Visit www.tiaca.org for details
JOIN TIACA
T I A C A N E W S 15
Spring 2019 TIACA Times | www.tiaca.org
Brussels has become the first European airport to
sign up to The international Air Cargo Association’s
(TiACA’s) Cargo Service Quality (CSQ) tool.
“Through CSQ, the forwarder opinion counts,”
said David Bellon, Airfreight product Station
Director, DHL Global Forwarding (Belgium), and
Vice Chairman of Air Cargo Belgium.
“it is the voice of the customer and potentially a
platform for discussion, which enhances the
engagement of all stakeholders in the air cargo
supply chain in Brussels to further improve, set
standards, and be an example of the cargo
community of the future.”
The online rating tool covers every aspect of air
cargo processing, including physical and
document handling, technology, facilities,
regulators, and general airport infrastructure,
amongst other variables.
performance assessment is undertaken by
forwarders who rate handlers at the participating
airport through a comprehensive questionnaire
developed by a TiACA taskforce.
TiACA’s CSQ was launched in February after a
successful pilot scheme involving 179 freight
forwarders and 18 cargo terminal operators
around the world, including india’s Delhi indira
Gandhi international Airport, AAiCLAS Chennai
Cargo Terminal, indonesia’s pT Jasa Angkasa
Semestra, Hong Kong’s Asia Airfreight Terminal
and Singapore Airport Terminal Services (SATS)
Ltd, amongst others.
Following completion of the pilot, Kenya Airports
Authority pledged to fully adopt CSQ by mid-
2019 at all airports across Kenya, which will be
the first nationwide implementation of the tool.
“Besides creating transparency at handler level,
you can also look at cross handling, and therefore
airport processes, and identify what is good and
where work needs to be done,” said Steven
polmans, Head of Cargo and Logistics Brussels
Airport and Vice Chairman of TiACA.
Trustee members
Flexport, Inc. –
Flexport provides
customs brokerage, freight forwarding, global
trade, logistics, software, data, analytics, cloud
software, and international shipping services.
Oman Aviation
Services – oman
Aviation Services is
a group of
companies providing services to airlines, the
cargo community and passengers at airports
across the Sultanate of oman.
Corporate members
Beijing Aviation Ground
Services Company – Beijing
Aviation Ground Service Co. Ltd.
provides ground handling
services in Beijing Airport. its
services includes air ticket sales, passage
transportation watching, special services, first
class services, business class services, and
baggage services.
Magaya Software – A
software development
company that provides
Logistics Software Solutions,
WMS Software, Cargo Software, Commerce
Software, eCommerce software, and
eCommerce Fulfillment Software
Affiliate members
Aero Africa (Air
Cargo Solutions
Ltd.) – Aero Africa is an air cargo
management group dedicated to providing
African logistic solutions and neutral value
added services to the international logistics
and aviation community.
SPOTLIGHTON NEW MEMBERSBRUSSELS SIGNS UP
TO TIACA’S CSQ TOOL
neel Jones Shah, Senior Vice president and
Global Head of Airfreight at Flexport, has been
appointed to the TiACA Board of Directors.
Shah, who previously served on the TiACA Board
from 2011 to 2012, joins with almost 20 years of
experience in the aviation and transport industry.
Since 2017 he has been responsible for building
up global air cargo delivery capabilities for freight
forwarder Flexport.
“The freight forwarding industry like much of the
supply chain, is going through a period of great
change, and improved collaboration and
transparency throughout our industry is
paramount to our future,” said Shah.
SHAH JOINSTIACA BOARD OF DIRECTORS
I N N O VAT I O N16
www.tiaca.org | TIACA Times Spring 2019
LIFTING HANDLERPERFORMANCE
QUALiTY iniTiATiVE
TiACA’s new Cargo Service Quality (CSQ) tool
turns the spotlight on an area that has been out
of reach for shippers and consignees, as well as
many forwarders. For them, airfreight handlers
have existed in a virtual black hole, removed from
their interaction with the airlines, with little or no
opportunity to provide feedback on their
performance.
Moreover, there are no global standards to
benchmark airfreight handlers’ performance, a
situation that impedes improvement and limits
customers’ ability to reach sound business
decisions.
“in my interactions with shippers, it has been
reaffirmed that the lack of visibility and absence
of uniform global standards results in airfreight
business deals being limited by cost
considerations, lack of product improvements,
and perceived lack of value for money,”
commented Sanjiv Edward, Chief Commercial
officer, Delhi international Airport.
in order to bring visibility and a framework of
universal standards to this sector of the industry,
a TiACA taskforce led by board members Edward
and Cheemeng Wong, Senior Vice president,
Cargo Services, SATS, spent a year researching
the issue and exploring solutions. The objective
was to create a tool that is simple, covers every
aspect of air cargo processing, and that can be
uniformly used by any stakeholder anywhere on
the planet.
performance assessment is done by forwarders
who rate a handler’s accomplishments through a
comprehensive questionnaire that looks at
facilities, processes, technology and other
aspects. Those questions were developed by
TiACA’s Cargo Quality Council.
The challenge was to develop a set of criteria that
would be as objective as possible and applicable
to all handling companies, regardless of the
differences in local conditions and regulations,
recalled Edward.
CSQ went live on February 21, following a
successful pilot program in which 18 terminal
operators and 179 forwarders participated.
According to Ramesh Mamidala, CEo of Celebi
Delhi Cargo Germinal Management india, his
company’s participation in the pilot yielded
immediate results.
“The assessment almost instantly brought forth
the elements that we need to work on to improve.
The improvement areas included some process
and facility-related changes,” he reported.
DYnAMiC pRoCESSimprovement is one of the key objectives of the
CSQ initiative. it is a dynamic process, with
assessments performed every six months to
allow updates and enable participating handling
companies to identify shortcomings and decide
on steps to address these. Upon the completion
of the pilot phase, all participants were equipped
with their individual survey results to analyse the
feedback.
The element of continuous improvement gives
cargo terminal operators an opportunity to strive
for excellence in all their processes – not only in
regard to quality but also in operational
efficiencies, Edward pointed out. indeed,
TiACA’s Cargo Service Quality(CSQ) tool has launched to helpair cargo stakeholders raise theirgame with handlers the firstsector to take part, explains ianputzger.
CSQ also aims toprovide industrystakeholders witha handle on thequality of theenvironment inwhich a cargoterminal operates.
– Steven Polmans, Brussels Airport
Company
I N N O VAT I O N 17
Spring 2019 TIACA Times | www.tiaca.org
excellence is one of the four main planks of the
CSQ program, alongside the elements of
assessment, benchmarking, and improvement.
CSQ also aims to provide industry stakeholders
with a handle on the quality of the environment in
which a cargo terminal operates, noted Steven
polmans, Head of Cargo at Brussels Airport
Company and TiACA Vice-Chairman. He pointed
out that one-quarter of the questions on the CSQ
list are airport-related.
in addition, some of the results may yield clues to
local factors. “Maybe all handlers at one airport
are under-performing on one aspect. This would
indicate that there is an airport issue, not only one
with the handling agent,” polmans said.
He added that the program is stronger if the entire
handling community at an airport embraces it.
not every terminal operator is eager to allow its
performance ratings to be put under the public
spotlight, but the overall response to the program
has been overwhelmingly positive, TiACA reports.
Among the operators that have come on board
are Brussels Airport, Asia Airfreight in Hong Kong,
SATS, and Beijing Aviation Ground Services.
After the completion of the pilot phase, the Kenya
Airports Authority adopted CSQ, pledging to
implement it across the country in mid-2019. it is
the first nationwide adoption of the scheme. in
March, Brussels Airport also joined the scheme
(see news story page 15).
polmans likened CSQ to TripAdvisor. “in the
beginning you have to be really good to be on it.
Later, if you are not on it, you will lose out
because people look on TripAdvisor when they
plan a trip. if you are not on, they will not bother
with you,” he said.
BETTER UnDERSTAnDinGFrom a handler’s perspective, Wong sees CSQ as
one avenue to achieve a better understanding of
the needs of forwarders and their clients.
“To help our customer win more business
volume, we need to find solutions for our
customers’ customers,” he commented. “in
developing the CSQ, we tried to see it from the
perspective of a forwarder and try to ask the
relevant questions.”
Edward remarked that CSQ can benefit all
stakeholders in the industry and ultimately the
industry itself by enabling it to raise its game and
relevance to shippers. “Across the globe, quality
has been among the most neglected parameters
in the entire air cargo fraternity,” he stated,
adding that lack of improvement, inconsistent
standards, and lack of visibility are undermining
the industry’s value to shippers.
CSQ is not going to end with the handling aspect
of the industry. What has been established so far
constitutes the first phase of a broader initiative,
Edwards noted.
“once this phase is matured, CSQ fill be
extended to other stakeholders of the air cargo
supply chain like airlines, shipper, consignee,
etc,” he revealed.
From left to right: Sanjiv Edward, Chief Commercial Officer, Delhi International Airport Pvt Ltd;Sanjeev Gadhia, CEO Astral Aviation Limited; Evans Michoma, KAA Commercial Manager-Cargo; Rvind Kavuru – Director for Prospecta Tech; Charles Mwaita – KAA MarketingOfficer-Cargo; and Vladimir Zubkov, Secretary General at TIACA
POINT OF V IEW18
www.tiaca.org | TIACA Times Spring 2019
WHAT DoES DiSRUpTion MEAn inTHE ConTExT oF THE LoGiSTiCSinDUSTRY?Disruption is occurring in every part of the
logistics industry as traditional business models
are being challenged by new thinking, often
emanating from outside the sector. E-commerce
has transformed fulfilment and last mile delivery;
digital freight platforms are having a major impact
on both road and freight forwarding markets, and
automation is transforming the warehousing
industry. new technologies are becoming more
affordable even to the smallest companies,
facilitating the growth of online platforms and
improving supply chain visibility, through the use
of low cost sensors, for example.
CoMpAniES LiKE To SAY THEY AREDiSRUpTiVE, BUT WHo ARE THETRUE DiSRUpToRS? There is a lot of confusion in the industry over the
difference between innovation and disruption.
True disruption will mean new business models
and processes, enabled by digitization, for
example, as opposed to improvements in
process efficiencies. Take the forwarding sector.
The many digital marketplaces being established
offer ways in which forwarders can improve the
quoting and booking process, reducing the time
and cost of this part of their operation as well as
improving customer service. However, digital
forwarders that have built their businesses from
scratch around new technologies and have the
potential to seize market share from the
incumbents are the real disruptors.
WHAT iS MoRE DiSRUpTiVE? nEWTECHnoLoGY oR nEW BUSinESS
MoDELS, oR MAYBE THE TWo GoHAnD in HAnD?presently it is the advent of new technology that
is largely responsible for the facilitation and
proliferation of new business models. Even
containerization in the 1950s was underpinned by
developments in shipping, crane, and container
technology, albeit mechanical rather than iT.
Many entrepreneurs are looking to apply
technologies developed in non-logistics sectors
(such as consumer electronics or even gaming) to
logistics problems. The use of smartphones, for
instance, has provided enormous processing
power, connecting SMEs and individuals to
logistics platforms.
WHY iS THE LoGiSTiCS inDUSTRYSo RELUCTAnT To EMBRACECoLLABoRATion AnD SHARE DATA?obviously, there are many commercial
sensitivities around the sharing of data and this is
one of the problems of a supply chain that
involves many parties – some collaborating,
some competing. Security and data protection
are also big issues. Supply chain visibility is
fantastic when the right parties have access to
the data, but if it falls into the wrong hands, there
is enormous potential for criminality or breach of
confidentiality.
BLoCKCHAin – iS iT JUST ABUZZWoRD?people are very excited about Blockchain as it
provides a way of ensuring supply chain integrity
and visibility. My personal view on this is that in a
few years’ time, the technology will have become
completely accepted. obviously Blockchain is
not a silver bullet for all problems found with
supply chain technology. However, it does have
great potential to resolve some practical
problems that have been around for years such
as supply chain visibility and provenance.
WHAT WiLL THE FUTURE LooKLiKE? WHo WiLL BE THE WinnERSAnD LoSERS?it is going to take a huge effort by the incumbent
logistics providers to fight off new market
entrants – legacy technology systems provide
stability but cannot meet the challenges of the
new market environment, especially customer
expectations. Amazon has already transformed
fulfilment and last mile. if freight forwarders are
not able to evolve in the new digital environment,
they will find that they will lose parts of the ‘first
mile’ market to aggressive e-commerce
platforms.
WHAT MADE YoU Join THELoGiSTiCS inDUSTRY AnD WHATKEpT YoU in iT?i had no choice really as logistics is in the blood!
My father established an international freight
company in the early 1970s and i have been
hooked ever since. The sector has always been
exciting, never more so than today.
HoW CAn WE EnCoURAGE THEnExT GEnERATion oF LoGiSTiCSLEADERS To Join oUR inDUSTRY?Very few young people make a conscious
decision to choose the logistics industry, which is
a shame. More has to be done to promote the
career in schools whilst at the same time
changing its perception as an unattractive option.
This will be essential as the industry becomes
more focused on technology, automation and
knowledge capital, rather than the fulfilment of
routine, manual and low value roles.
INDUSTRY’S REALDISRUPTORS
John Manners Bell, Chief Executive officer of Transport intelligence,gives his views on the factors driving change in the air cargo industry.
inTERViEW
Magazine produced byMeantime Communicationswww.meantime.global
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Editorial: Julian [email protected]
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Published by TIACATiACA Times is the quarterlymagazine of the Associationp.o. Box 661510, 5600 n.W. 36th Street, Suite 620, Miami, Florida 33266-1510. USATel: +1 786 265 7011
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