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$ # $ $ & $ F L I G H T P A T H S S E T F O R B U D A P E S T '&"#' '"&!& $!"$ "'$' #'#!& "$! #&#' TIACA Board member Sanjeev S Gadhia on liberalization in Africa '&&' &$!& The ECS Group’s NextGen leaders seek ‘out of box’ ideas #!!& &$ Regional giants are moving quickly to exploit growth opportunities #''"$#"' The Cargo Service Quality tool launched to help air cargo stakeholders The magazine of The International Air Cargo Association USD12/EUR1 www.tiaca.org Spring 2019

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Page 1: FLIGHTPATHS SET FOR BUDAPEST · 2019-12-17 · Etihad Cargo has also been expanding capacity, to China, india, and Vietnam, in September. Abdulla Mohamed Shadid, Etihad Airways Managing

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

Page 2: FLIGHTPATHS SET FOR BUDAPEST · 2019-12-17 · Etihad Cargo has also been expanding capacity, to China, india, and Vietnam, in September. Abdulla Mohamed Shadid, Etihad Airways Managing

TIACA'S EXECUTIVE SUMMIT 2019

CROSS COMPANY INDUSTRY COLLABORATION

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TIACA'S EXECUTIVE SUMMIT 2019

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Page 3: FLIGHTPATHS SET FOR BUDAPEST · 2019-12-17 · Etihad Cargo has also been expanding capacity, to China, india, and Vietnam, in September. Abdulla Mohamed Shadid, Etihad Airways Managing

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.

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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

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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.

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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

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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

CROSS COMPANY INDUSTRY COLLABORATION

SAVE THE DATE

Save the Date:

www.tiacaevent.org

November 19th - 21st From 8amLocation Hosted By:Budapest, Hungary

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Page 9: FLIGHTPATHS SET FOR BUDAPEST · 2019-12-17 · Etihad Cargo has also been expanding capacity, to China, india, and Vietnam, in September. Abdulla Mohamed Shadid, Etihad Airways Managing

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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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