The Lounge – The sweet smell of success

He ran away at 16 in search of a better future. Lost and hungry, he found himself chasing an extraordinary smell of a roast beef from a big hotel and found his niche—becoming an international chef

If you’re from North East England born in the ’50s, you’re cut out to work in a ship building, a coal mine or the steelindustry unless you dare to be different and change your destiny. Thomas Harker was among those who dared change his fate and is now reaping his rewards.

This British celebrity chef who currently works as the executive chef & operations manager at executive
gourmet of Gate Gourmet Catering Arabia in Al Bateen Executive Airport ran away at 16 because “I didn’t want to
work down the pit in a ship building, coal mine or the steel industry.”

With just a few clothes, Harker walked away from home and hitchhiked on a truck to reach London. “For three days, I lived rough on the streets. I was walking around stealing people’s milk on doorsteps to survive. And
then one day, I smell a fantastic roast beef. And if you’ve been really hungry, it’s the best thing you could ever smell,” Harker now 57 shared to Air Cargo Update. “It led me around the back of a big four-star hotel.”

The head chef whom he described as a “big, big, tall Scottish guy over 6-ft tall” took him to the kitchen and let
him eat in exchange for cleaning pots and pans.“I didn’t get paid but they fed me and I slept in a storeroom
inside the hotel kitchen,” recalled Harker. That stint lastedfor two months until he was offered an apprenticeship.
That kitchen became his home and the chef and the cooks his family.

He worked in that hotel for three years and eventually landed high-paying restaurant jobs enabling him to
finance his college education. After college, Harker landed even better jobs and was later hired by British Airways. He hopped from one airline to another, bringing him to even greater heights and new places to call home.
When he became a Michelin star, he even created menus and cooked for HRH Queen Elizabeth of England, the late
Princess Diana, Prince Charles and the British Prime Minister Margaret Thatcher.

He is also the only chef to have cooked while flying on Concord to New York. He had also worked alongside some of the best chefs in the world like Gordon Ramsay and even had a stint at BBC Food. Hollywood superstar and former California Governor
Arnold Schwarzenegger also had a taste of Harker’s good food. Harker also cooked for the late King Hussein I of Jordan during his royal flights and recalled how kind the ruler was. After spending many years in Bahrain and Qatar, Harker now calls Abu Dhabi his new home.

In his spare time, Harker cooks for friends and family, entertaining them with new recipes, food philosophies
and more. “I love cooking. Chef-ing now is the new rock and roll,” Harker said fondly. This father of four and grandfather to five children, also finds time going to the gym, do boxing and kickboxing. He also loves biking and driving his fast cars.

“I just love life. I love my bike and my fast cars,” he said. Though still far from retiring, Harker is now entertaining the idea of one day spending time teaching people the philosophy and the love of food.

“I’ve always wanted to do my own restaurant but probably I’d take up teaching philosophy of food and how
to love food,” he said. LOUNGE The The sweet smell of success He ran away at 16 in search of a better future.
Lost and hungry, he found himself chasing an extraordinary smell of a roast beef from a big
hotel and found his niche—becoming an international chef

“You got to love what
you’re doing. It’s a big world”

New 2018 ISUZU FTR has small but efficient engine

The isuzu Commercial Truck of America, Inc., is gearing up for the full production mid this year of the latest evolution of its F-Series Class 6 medium-duty truck which offers a 5.2 liter turbocharged fourcylinder diesel engine but with same efficiency as trucks with bigger engines.

The new 2018 Isuzu FTR is slated to go into production at a new facility in Charlotte, Michigan. It’s described as
best suited for customers who are looking for great maneuverability,cost-efficiency and the lowest cost of
ownership. Volume projections are initially set at 1,500 to 2,000 units.

When Isuzu announced the truck at
NTEA’s 2016 Work Truck Show in March, Shaun Skinner, president of Isuzu Commercial Truck of America,said, “This truck represents our vision of the future of the medium-duty truck industry. The overall concept of the FTR is to bring to our customers the next generation medium-duty lowcab-forward truck, one that features a clean, durable, highly-efficient fourcylinder engine and is the best Class 6 choice for urban pickup and delivery.

The letters ‘FTR’ don’t stand for ‘future,’however this truck represents the future, and it will be here—soon.”

Skinner explained all customers want is a truck that uses less fuel but still delivers the same efficiency as trucks with bigger engines.

New technology now allows car manufacturers to build vehicles with s m a l l e n g i n e s w i t h e n h a n c e d
horsepower and torque that use less fuel.

Isuzu believes the latest evolution of the FTR series will blaze a trail in the growing trend of smaller engines that provide efficiency in a world governed by tighter emissions regulations.

Highlights of the new Isuzu 2018 FTR:

Ø 25,950 pounds GVWR

Ø The FTR will be available in eight wheelbase lengths ranging from 152 to 248 inches, accommodating
bodies from 14 to 30 feet long

Ø The FTR is a dock height class 6 truck The turbocharged Isuzu 5.2-liter 4HK1-TC engine propelling the FTR will generate 215 horsepower and 520 lbs.-ft. of torque

Ø The engine will be mated to an Allison six-speed automatic transmission with power take-off (PTO) capability
Ø Dana axles will have capacities of 12,000 pounds up front and 19,000 pounds rear suspension

Ø Bridgestone or Continental 11R22.5 tires will be to 22.5″ × 8.25″ steel wheels

Genavco bullish over the future of trucking industry

Flagship showroom unveiled in Mussafah

ABU DHABI, UAE: General Navigation and Commerce Company (Genavco), a member of Juma Al Majid Group,opened its new flagship facility with a huge showroom in Mussafah, with high hopes for robust future demand in the trucking and general motoring industry.

The grand opening event coincided with the company’s 50th anniversary
in the industry.

Eng. Khaled Issa, Chief Operating Officer of Juma Al Majid Group, said the facility is geared to better serve the company’s growing customer base in the UAE and the Middle East.

Genavco expects robust demand for commercial vehicle, industrial and construction equipment in the coming years as the UAE hosts the much touted World Expo 2020 in Dubai.

Expo 2020 is projected to fuel growth in the market as various infrastructure a n d o t h e r re l a t e d p ro j e c t s a re undertaken for the major global event believed to bring in as much as 20 million tourists in the country.

Genavco’s expansion strategy is based
on offering comprehensive yet diverse product portfolio, competent human capital, exceptional service delivery
and state-of-the-art facilities.

Its new flagship facility in Musalah measures 30,376 sq. ft and includes a
state-of-the-art Isuzu and Heavy Eq u i pme n t S h owro om, S e r v i ce Facility, Spare Parts Sales Counter and
BP-Quick Lube Facility.

The showroom will display the extensive range of Isuzu fleet, along with selected heavy equipment products.

The 11,250 sq. feet service facility with 13 Service Bays and dedicated VIP waiting area will offer futuristic customer service experience.

The new facility is strategically located
in M9, Mussafah Industrial Area, between 6th and 8th Streets, adjacent to Bin Hamoudah – Chevrolet Body Shop.

The facility is open Saturday to Wednesday from 8am to 5pm PM. Open on Thursday until 1pm. For further information, you may call 971- 2-5544611

About GENAVCO

General Navigation and Commerce
Company (GENAVCO) L.L.C., a
member of the Juma Al Majid Group,
was established in 1967 by H.E. Juma
Al Majid. Headquartered in Dubai,
Genavco serves its customers
through its network locations
across Abu Dhabi, Al Ain, Dubai and
Sharjah.

Genavco deals with Commercial
Vehicles, Heavy Equipment and
Lubricants. A prominent market
player and major supplier for
Industrial, Construction, Mining,
and Material Handling equipment,
Genavco is powered by its long
standing relationship with 20+
renowned global brands such as
Isuzu, BP, Wirtgen Group, Liebherr,
Crown, JLG, CompAir, Terex, SDMO,
Shantui, MTU, John Deere and
Allison.

Lobster frenzy brings wealth to Halifax, Canada

With just over 400,000 residents ,Halifax in Nova Scotia, Canada is a small city compared to other places in the world. But thanks to its abundant supply of wild lobsters , this city in so-called Atlantic Canada made up of the maritime provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland, is enjoying prosperity and much popularity globally.

Collectively, the provinces hold grip to a $5 billion lobster industry, shipping the fresh crustaceans mainly to the EU, China, Japan, Korea and elsewhere in the world. Because they must be brought to their destinations fresh and alive, the lobsters have to be transported via air cargo instead of a ship.
They are neatly packed in containers with special gel packs that keep their temperature at 4 to 5 degrees centigrade to ensure that they arrive fresh for the next 48 hours from Canada to their final destinations.

A.M Lyall, air service cargo sales manager at Hali fax Stanfield International Airport, told Air Cargo Update in an interview in Paris during the sidelines of the Air Cargo Forum 2016, their airport handled 32,000 tons of cargo last year, mostly involving live lobsters.

“We did about 32,000 tons of cargo at the airport. It’s small in comparison to others but we have a tremendous commodity the fresh live caught lobster which is a $5 billion industry within Atlantic Canada, which is comprised of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland. We have a tremendous commodity that we export all over the world, the lobster,” Lyall said.
Lyall even hand-carried live lobsters
in Paris from Halifax, to be shared
with people who visited the booth of
South Korea’s Incheon International
Airport, Halifax airport’s business
partner in shipping the crustaceans all
over Asia.

“I carried 15 pound and a half of live
lobsters. Incheon International
Airport wanted to have a culinary
event and highlight Korean cuisine so
we really need to have lobsters on the
menu,” said Lyall who was picked up
by a limousine upon his arrival in Paris
en route to the chef’s restaurant
where the lobster sandwich with a
Korean twist was prepared.
“It was the least we could do. It’s an
honor for us,” he added.

Growing Demand

The demand for fresh lobsters is high
in Europe, especially in Belgium, but
Lyall said China’s new rich is also
clamoring for more, especially during
wedding season as the crustaceans
are regarded to bring Chinese good
luck.

Lyall said Alibaba is even taking
orders from Chinese to buy Halifax
lobsters which to Canadians is mindboggling
because of the freshness
issue.

“Four to five years ago, the growing
middle class in China has discovered
our lobsters and the demand is there.
As we speak, Alibaba got a 70,000 lbs
order for lobsters in Halifax,” he said.
A holding facility I n Shanghai capable
of storing 250,000 tons of seafood
and other perishables had since been
set-up.

Lyall said Korean Air flies a 777 or 747
once a week in Nova Scotia to meet the demand for lobsters in China and
elsewhere in Asia.

The airline has connecting flights to
nine different stations in Asia which
include Beijing, Shanghai, Guangzhou,
Singapore, Dalian and Osaka.

Economic boom

Back in Halifax, residents continue to
nurture the industry which had made
their place prosperous and famous.
The lobsters are free for all to be
caught. The government issues a
number tag to each harvester. The
tags are attached to the lobster
traps which are placed on the
ocean to harvest the crustaceans.

At least two Chinese-owned
packing and processing plants had
since been opened last year in
Halifax. And both ship their
products via the Halifax airport.

This year a new $5 million cargo
pad at Stanfield international
airport to accommodate new
cargo planes flying lobster by the
ton out of Halifax was opened.
The industry got a further boost with
the ratification of the Comprehensive
Economic and Trade Agreement
(CETA) that eliminates or cuts certain
tariffs for seafood products exported
to the EU.

The Canadian government also
reduced export tariffs to China to
further bolster trade between the
countries

The rise of 3PL providers to bridge logistics gaps

As manufacturers and retailers continue to focus on controlling costs, at the same time, increasing their agility and responsiveness, third-party logistics (3PL) providers have become a vital resource.

Seventy-two percent of shippers are planning to increase the use of 3PLs in the future, according to 2014’s 18th Annual Third Party Logistics Study published by Penn State and Capgemini’s Dr. John Langley.

While market volatility and the rise of the omni channel marketplace have created significant challenges for manufacturers and retailers, these trends are also creating tremendous opportunities for 3PLs that can bring the right method to help solve customers’ most pressing issues.

Air Cargo Update sat down with C o – f o u n d e r and Managing Director o f R S A L o g i s t i c s Abhishek Ajay Shah to discuss how RSA Logistics identify and bridge 3PL gaps.

Identifying 3PL gaps RSA Logisticsis recognizedfor identifying gaps in the market and providing niche logistics services that bridge these gaps to cater to the pressing needs of customers.

“We have used our strength in building strategic partnerships and in asset design and management to deliver,
for example, specific chemical logistics services to this region, under the banner RSA-TALKE. Recently we
inaugurated an integrated chemical logistics hub that provides comprehensive storage, handling and maintenance services to ISO tanks.”

Implementing IFMS Last year, RSA Logistics signed an agreement with Ramco Systems, a leading Enterprise Software provider through Cloud, Mobile and Tablets to implement its Integrated Freight Management System (IFMS), an endto-
end solution suite that addresses the complete process flow of the Shipping and Transportation Industry.

Asked why it was necessary to implement it for the smooth flow of shipping and transportation in the industry, Abhishek responded, “For us, effective process improvements, operational control and cost management is a priority. Tracking shipments status proactively, with precision, plays an important role for our customers, as well as providing the history of shipments and their costs and profitability. We offer our clients’ customized reports which meet periodic and monthly reporting requirements as per their needs. Integrated process esthat are
enabled across departments increase operational efficiency and ensures no human errors.

also provide instant reliability report
generation for effective performance
m o n i t o r i n g a l o n g w i t h 1 0 0 %
accuracy in invoicing and age
analysis”.

Smart transportation

R S A L o g i s t i c s b e l i e v e s S m a r t
Transportation is the way forward in
providing customers with reliable
data on the movement of their
products, to improve the operational
efficiency of the vehicles and to
achieve the shortest delivery times.

“We have already adopted vehicle
tracking technologies including
mo b i l e a p p s t h a t p ro v i d e o u r
customers with real-time data on our
s h i p m e n t s a s w e l l a s fl e e t
management metrics.”

Integrated Chemical Hub

L a s t ye a r, R S A ce l e b r a t e d t h e
completion of the first phase of its
integrated chemical hub at Dubai
South.

The chemical hub is a storage and
transhipment capacity for up to 1800
TEU (Twenty-foot Equivalent Unit) –
designed for empty or laden ISO tank
containers with class 3, 6, 8 and 9
hazardous chemicals.

“The hub is an integrated chemical
logistics facility which provides a
complete solution for liquid
chemical logistics. A laden ISO
tank container can be received in
the facility to be stored. Further,
the laden ISO tanks can be
c o n n e c t e d l a t e r o n t o t h e
drumming facility to refill the
liquid chemical from the tank into
drums or IBCs. These packed
liquids in drums and IBCs can then
be stored in the state of the art
chemical warehouse which is
d i r e c t l y c o n n e c t e d t o t h e
drumming station.

“The emptied ISO tank container can
be moved for cleaning afterwards
a n d i f r e q u i r e d r e p a i r a n d
m a i n t e n a n c e s e r v i c e s c a n b e
executed including testing. The
cleaned ISO tank can be stored in the
yard again until it will be dispatched
again to continue its journey in the
supply chain.

“ T h e i n t e g r a t e d c h emi c a l h u b
c o m p l e m e n t s o u r e x i s t i n g
warehouse facilities in regards to the
e x t e n s i o n o f o u r h a z a r d o u s
wa re h o u s i n g c a p a c i t i e s wh i c h
provides additional flexibility for our
customers. Further, all our facilities
are extending the service portfolio of
chemical logistics and raising the bar
regarding health and safety standards
within the UAE and beyond,” explains
Abhishek.

Abhishek chose Dubai South as it’s
i d e a l l y l o c a t e d b e t w e e n A l
Maktoum International Airport, one
o f t h e w o r l d ‘ s l a r g e s t c a r g o
terminals and Jebel Ali Port, one of the world’s busiest shipping ports.
“Moreover, our customers greatly
benefit from being able to store in a
free zone, coupled with the logistics
corridor connecting Sea and Air
cargo flows”.

Breaking grounds with RCC

With global temperatures hitting
high in the UAE, coupled with the
demand for food products due to a
rise in population, there is a critical
need for reliable cold storage
solutions. The newest venture of
RSA’s Cold Chain (RCC) broke
grounds recently in the presence of a
delegation headed by the Acting
CEO of Dubai South Mr.Ahmed Al
Ansari.

RCC will commence its operations
t h i s Ma r c h , o f f e r i n g a n i n i t i a l
capacity of 21000 pallets, coupled
with sophisticated end-to-end 3PL
services for packaged food, fresh
f r u i t s a n d v e g e t a b l e s , d a i r y
products and frozen food.

“ R C C h a s e i g h t i n d e p e n d e n t
chambers that can potentially house
2 1 , 0 0 0 p a l l e t p o s i t i o n s . E a c h
chamber’s temperature can be
customised to temperatures of as
low as -25ºC. The facility will have
strict adherence to the highest
HSSEQ standards, and our staff is
occupational-health-certified,” said
Abhisek.

“The loading bays accommodate
multiple plug-in points for reefer
trucks during loading & offloading to
maintain the temperature for the
products in transit. We also provide
value-added services like shrink
wrapping, re-bagging, labelling, repalletisation
& co-packing for the
ease of our customers,” he added.
T h e b r a n d n e w e n t i t y w a s
c o n c e i v e d t o m e e t d e m a n d s ,
particularly in the lead up for Expo
2020 when Dubai will be all set to
increase its residents and workforce
populations.

“Expo 2020 is going to create a surge
in demand for food products. More
specifically, the MENA region is
g o i n g t o s e e a n i n c r e a s e i n
processed food demand to the tune
of $175 billion. The RSA Cold Chain
(RCC) project was strategically
timed to meet this anticipated
volume. Moreover, we felt that the
market was in need for dedicated
cold chain services that put greater
f o c u s o n m a i n t a i n i n g t h e
t e m p e r a t u r e i n t e g r i t y o f t h e
products at every step of the way.
RCC is a dedicated solution which
includes a sophisticated warehousing
facility and smart transportation
to meet this requirement”.

‘Under-served’ industry

RSA’s mission to launch RCC is the
next step in integrity in the cold
chain supply chain with the use of
proprietary technology.

“We see tremendous breaks in the
cold chain from arrival in the reefer
to the distribution centre to the final
mile distribution, to the retailers’
shelves. Our mission is to solve that
by working with our customers and
integrating information not only of
s t o c k a n d m o v e m e n t b u t
t e m p e r a t u r e & q u a l i t y
management. This coupled with a
lack in capacity; we see this as an
exciting step in changing the Cold
Chain supply chain”.

GCC expansion and beyond

RSA is looking forward to expanding
geographically to better serve more
of the markets in the region as well as
in Asia and Africa. As they see “great
potential from Africa in particular”.
Europe is not a focus area for their
growth.

Recently, the 3PL logistics provider
expanded its operations in Dubai
Investments Park (DIP) with a new
warehousing facility strategically
located within the DIP complex to
s e r v e c u s t o m e r s w i t h f a s t e r
distribution in the local markets.
Adding to RSA’s existing contract
logistics capabilities, the warehouse
spreads across 2500sqm with a
total of 2500 pallets in capacity,
designed to store general cargo and
handle a diverse range of product
categories including fast moving
c o n s u m e r g o o d s ( F M C G ) a n d
b e a u t y p r o d u c t s , o f f e r i n g a n
extensive range of value added
services such as distribution, crossdocking
and ecommerce to meet
diverse customer requirements
with international standards.

“ O u r n e w f a c i l i t y i n D I P i s i n
proximity to the Expo 2020 site
making it a favoured location to
b e g i n o p e r a t i o n s g i v e n t h e
projected increase in economic
growth resulting from the mega
e v e n t . I t a l s o r e i n f o r c e s o u r
commitment to bridging gaps in the
market-based the market’s & our
c u s t ome r s ‘ n e e d s ,” c o n c l u d e s
Abhishek

India explores – cargo opportunities further

Year 2016 ended on a high note for the Airports Authority of India (AAI) as it begins its ambitious quest to fully explore opportunities in the country’saviation and air cargo industries.

Civil Aviation Minister Ashok Gajapathi Raju said thecountry is now a step closer to becoming a world-classdestination in cargo and logistics services with the launchof AAI Cargo and Logistics Allied Services Company Ltd(AAICLAS) and its online footprint— ttps://airportsecom.gov.in/new/index.aspx.

Its air cargo and logistics subsidiary is projected to rake in annual turnover of Rs 380 crore ($56 million) in two years. The government has appointed Neera Rawat as the Managing Director while B.K.Mehrotra would be the Chief Executive Officer of AAICLAS.

Civil Aviation Secretary R N Choubey said AAICLAS expects to have “an annual turnover of Rs 380 crore (about USD 56 million) in two years time” and stressed that the cargo sector has so much potential.

AAI Reforms

AAI Chairman Guru prasad Mohapatra said the agency’s cargo department has been demerged and corporatized into a functionally and administratively independent organisation. ” It is envision edto make this company as one of the foremost multi modal logistics company in India with primary focus on air cargo handling and allied services. It would be covering all the entire gamut of cargo and air cargo handling and related value added services including
g ro u n d h a n d l i n g s e r v i c e s a n d security services for securing of cargo,” he said.

He noted: “AAI’s cargo business is hitherto administered through a departmental structure within the overall AAI administration. Given several important priorities of providing air navigation services and airport management services, cargo has been accorded a lower priority than it deserves.

“The analysis of AAI’s business model
shows that there was limited focus on cargo business, lack of appropriate business strategy and marketing
strength. It is a strategic fact that the dynamics of air cargo business and management are different, since speed of decision making and quicker responses to evolving dynamic situations are key success mantra.”

The company would be entering into strategic partnerships based on business demand at airports within the country or abroad.

The new subsidiary has an equity base of Rs 20 crore ($3 million), with a vision tobecome the foremost integrated logistics network operator in India with primary focus on air cargo handling.

Focus on verticals The new subsidiary will be allowed to develop its own distinct culture, organisation structure and business model while at the same time draw upon the strength of its large parent origination, AAI.

All the activities currently being carried out by the cargo department of AAI will be merged into the new
company and the department will no longer be functioning with AAI. The company will be shortly initiating
comprehensive discussion with all the stakeholders to ensure smooth transition of all cargo activities to the
new company. AAICLAS will focus on three verticals (a) air cargo handling and allied services, (b) warehousing
and contract logistics and (c) air cargo road feeder and air freight stations.

Creating AAICLAS would bring multiple advantages as there is lot of activities on the cargo front.
Rawat said, “The AAI cargo subsidiary
is a dream come true. There are two
sides of the air transportation coin
and we cannot do without either. Air
passengers undoubtedly deserve
undivided attention, because the air
transportation is an effect of their
existence. Equally important though
is air cargo as underlined by all the
dignitaries on the dais. A fine balance
will now be achieved, through this
laudable initiative of the launching of
this separate vehicle for air cargo.”

T h e r e a l i s a t i o n a m o n g t h e
government officials that multimodal transportation and air cargo in
particular is one of the major drivers
for economic development, is good
news. That the government has put in place the National Civil Aviation
P o l i c y a n d a l s o t h e R e g i o n a l
Connectivity Scheme should ensure
that there is substantial movement of
cargo, not just passengers, on a pan-
India basis. The opportunities are
humongous.

International consultancy firm Frost &
Sullivan in its report on ‘Strategic
Analysis of Growth Opportunities in
Indian Air Cargo Market’ has said that
the total market opportunity for air
cargo services in the country is
estimated to reach 2.8 million tons by
FY 2018 at a compound annual
growth rate of 5.5 percent.

FDI norms relaxed

“The relaxation of the cap on foreign
direct investment (FDI) in the aviation
sector has given a strong thrust to the
air cargo market,” said Srinath Manda,
Program Manager, Transportation &
Logistics Practice, Frost & Sullivan.
“The Indian Government’s FDI
policies have been particularly
f a v o r a b l e t o w a r d s p r i v a t e
participants entering the market.
Major policies fuelling market growth
include the allowance for 100 percent
FDI in existing airports and under
automatic routes as well as 100
percent tax exemption for airport
projects for the next ten years.”

However, the lack of dedicated air
cargo warehousing facilities at India’s
major airports has slowed down
market development. Domestic air
cargo operations have been limited
as most warehousing facilities cater
to international cargo owing to the
dearth of space in Tier II and III cities.
Further, the restrictions imposed on
providing licenses to operate bonded
warehouses has been causing severe
capacity constraints and impeding
the air cargo market.

Domestic cargo terminals

Nonetheless, market momentum will
pick up soon as the Airport Authority
of India has identified 24 airports in
which unused cargo terminals can be
converted to common user domestic
cargo terminals.

A l o n g wi t h t h e A A I ‘ s p ro g r a m
dedicated to establishing centers of
perishable cargo to cope with the rise
of domestic air cargo movement
involving perishable goods, this will
keep market revenues on a steady
upward trajectory.

“Evidently, opportunities for market
participants lie in common user cargo
t e r m i n a l d e v e l o p m e n t a n d
management at airports, domestic air
cargo carrier services, commercial
and passenger cargo handling at
airports, and perishable cargo
storage facilities development and
operation,” concluded Manda.

Air cargo traffic is likely to grow by
nearly 14 per cent year on-year to
reach 9 million metric tonnes by
2020. Some of the industries driving
the growth of the industry include
retail, automotive goods, telecom
equipment, textile and pharma.
With trade activities of the nation
about to increase manifold, cargo to
be handled in India is set to skyrocket.

Challenges

But there are many challenges that
the air cargo community faces, with
the infrastructure as the most obvious
one. With airports giving preference
to passenger movement, air cargo
remains neglected.

Due to lapse in time travelling
between aircraft to terminal, huge
time gap is created as there is no
parking facility for vehicles that carry
cargo back and forth from airports.
Shipment delays are common due to
air traffic congestion.

It is only now that India is seeing some
development in infrastructure related
to airports, particularly roads which
are crucial to moving cargo from
warehouse to airports.

The average truck speed in India is
about 20 km/hr, with a daily run of
just 250–300 km, compared to about
700–800 km in developed countries.
With emphasis on automation and
digitisation, now India’s air cargo
industry is expected to speed up the
process of movement and this
perceptible change in some airports
has been acknowledged by the air
cargo community.

Air cargo industry– strives for digital transformation

e-AWB and e-freight remain elusive for now
he digital age has radically transformed the way we live and do business today and all indications point to a gradual Tprogressive change towards more paperless transactions in the near future for convenience and speed.

Globally, retail and a host of other industries have successfully transitioned from the traditional way of doing business to doing it online or electronically. The same goes for the governments of many developed or affluent nations across the globe.

But the air cargo industry, though directly linked to the multi-billion e-Commerce industry, however, remains struggling to become e-friendly.

There is no doubt that the electronic processing of cargo transactions has clear savings in terms of time and cost for both exporters and importers, but individual country regulations and resources come into play, officials and industry experts said.

Low penetration

According to an International Air
Transport Association (IATA) 2016
research covering 135 countries, the
electronic penetration in the global air
freight industry is just 35 percent
c o m p a r e d t o t h e m a s s i v e e –
Commerce industry.

The technology-driven UAE, with its
smart government initiative, topped
the list of e-freight friendliness index
(EFFI) at over 47 percent, closely
followed by Denmark, Singapore,
Hong Kong and Sweden. South
Korea, Canada, Netherlands, South
Africa and the United States ranked
6th to 10th, respectively.


“Electronic documentation and
processing can result in shorter
delays at borde r s , l o w e r
transaction costs, and enhanced
security and reliability—all of
which can be beneficial to firms
involved in GVCs (Global Value
Chains),” said Ben Shepherd and
his team in their report for IATA
titled “Value of Air Cargo: Air
Transport and Global Value
Chains.”

The research partly covers the e-Air
Waybill (eAWB) use, disaggregated
by bilateral country corridor and
information on eFreight transactions
relative to the total number of AWBs.

“This second indicator captures a
broader range of information than just
eAWB use, including the ability to run
the whole transaction electronically.
Data are again provided bilaterally,
and are aggregated by origin and
destination country. In addition to the
IATA data, the EFFI includes indicator
2 from the Customs Capability
Database above. Weights for the EFFI
a r e a s f o l l ow s : 1 . I ATA e AWB
Penetration (35%) and 2. IATA
eFreight Usage (35%),” the report
noted.

“eFreight Friendliness as measured by
the EFFI is also an important
determinant of trade performance
a n d G V C p a r t i c i p a t i o n . A o n e
percentage point increase in the EFFI
is associated with a 2.5 % increase in
the value of trade. Moreover, a one
percentage point increase in the EFFI
is associated with a 0.3 percentage
point increase in GVC participation as
measured by the proportion of
backward and forward linkages in
total exports,” it added.
Africa, some parts of South Asia,
Southeast Asia and the Middle East
are still struggling to be digitally
smart.

Analysts said the air cargo industry
must catch up with the trends in the
digital age or it stands to lose more. In the logistics industry alone at stake is
about $1.5 trillion and a further $2.4
trillion in related industries.

Industry experts said the digital world
has entered its third phase of
revolution with the Internet of Things
(IoT)—network of smart devices,
sensors and the cloud that allow the
physical world and computer
systems to interact directly—which
will practically impact more aspects on how we live and do business.

Modernization

Vladimir Zubkov, the new secretarygeneral
of The International Air Cargo
Association (TIACA), said it is about
time to modernize the industry to
speed up the process and enhance
business in the supply-chain.

“We must also continue to push for
the modernization of the industry,
championing e-commerce and efreight
penetration and talking
convincingly to the World Trade
Organization (WTO), the United
Nations Conference on Trade and
Development (UNCTAD), regional
development banks, and relevant
regional organizations to form new
alliances in order to drive faster
and more complete adoption of ef
reight , ” said Zubkovina
statement when he was installed
to lead TIACA.

In an interview in Johannesburg,
South Africa during the three-day Air
Cargo Africa 2017 show, Zubkov said
the first thing to do is for governments
of countries to ratify the Montreal
Convention also known as MC99.
This multilateral treaty adopted in
1999 essentially calls for uniformity
and predictability of rules relating to
the international carriage of
passengers, baggage and cargo. It
also amended specific provisions in
the Warsaw Convention to do away
with paper transactions in air cargo in
favor of the electronic system.

“ It lays the foundation for an
electronic system in the cargo
industry,” said Zubkov who spent
m o r e t h a n 2 0 y e a r s w i t h t h e
International Civil Aviation (ICAO)
w h e r e h e w a s D i r e c t o r o f A i r
Transport Bureau and later Director of
Planning and Global Coordination
before joining Volga-Dnepr in 2008.

TIACA said digitalization of the air
cargo industry will essentially reduce
manual data input error, speed up
shipment cycle time, reduce loss of
paper documents, as well as enhance
efficiency and cut on labor costs.

Multi-layered cooperation

Airlines and airports agree a digital
system works better to do away with
human errors and speed up the
process.

But at issue are each country’s
customs regulations, technical
read in ess and resources to
implement the changes.

Saudia Cargo VP for Commercial
Operations Rainer Mueller said
seamless electronic connectivity
among key players like airports,
airlines, warehouses, freight
forwarders and customs are
essential to the growth of the
industry.

“Cooperation is definitely needed
to link them,” said Mueller who has
been in the industry since 1978
before moving to Saudia about six
years ago.

He said some countries have to
catch up with the technology that
more affluent countries like the
UAE and the Kingdom of Saudi
Arabia are utilizing to enhance
cargo business transactions.
Saudia Cargo is one of the biggest in
the Middle East with plans for further
expansion. Known for its efficiency
and reliability, it is also leading in
terms of using technology to enhance
its services with e-booking options
for clients.

Emirates Divisional Senior Vice
President, Cargo Nabil Sultan, for his
part said, a joint effort from all
relevant stakeholders is necessary to
move the global air cargo industry
from paper-based to digital.

“As we move into a new era oimplement the changes.
Saudia Cargo VP for Commercial
Operations Rainer Mueller said
seamless electronic connectivity
among key players like airports,
airlines, warehouses, freight
forwarders and customs are
essential to the growth of the
industry.

“Cooperation is definitely needed
to link them,” said Mueller who has
been in the industry since 1978
before moving to Saudia about six
years ago.

He said some countries have to
catch up with the technology that
more affluent countries like the
UAE and the Kingdom of Saudi
Arabia are utilizing to enhance
cargo business transactions.

Saudia Cargo is one of the biggest in
the Middle East with plans for further
expansion. Known for its efficiency
and reliability, it is also leading in
terms of using technology to enhance
its services with e-booking options
for clients.

Emirates Divisional Senior Vice
President, Cargo Nabil Sultan, for his
part said, a joint effort from all
relevant stakeholders is necessary to
move the global air cargo industry
from paper-based to digital.

“As we move into a new era of
transporting goods and services, it is essential that the regulations that
govern transport of goods facilitate
rather than hinder the flow of goods
from one location to another and the
concept of e-freight and e-airway bill
is critical in this regard,” said Sultan in
an email to Air Cargo Update.

“Digitization has been evolving at a
slow pace and continues to be a
major challenge for the air cargo
industry. It is necessary that we have a
j o i n t e f f o r t f r o m a l l r e l e v a n t
s t a k e h o l d e r s t o e n c o u r a g e
digitization which will in turn ensure
that transportation of goods becomes
seamless and efficient delivering
more value to our customers,” he
added.

In an interview in Johannesburg,
South Africa on the sidelines of the
Air Cargo Africa 2017, Group CEO
Et h i o p i a n A i r l i n e s Te w o l d e
GebreMariam told Air Cargo
Update a political will to change
the system is necessary to reach
the level that other developed
nations are now enjoying.

The state-owned Ethiopian Airlines,
the largest cargo operator in Africa, is
leading in the use of new technology
in the region.

GebreMariam said the company is
run like a private corporation though
it is owned by the government.
“We need the cooperation of each
country to change their customs
system to make digitalization happen
in the industry. We’re trying to bring
on board all stakeholders to address
this issue,” he said.

Ethiopian Cargo is one of the fastest
growing companies in the region. It is
scheduled to open a new cargo
terminal soon to increase its capacity
to 1 million tons per annum from just
600,000 tons a year.

The new cargo hub costing $115
million is envisioned to be an
important point of connection
b e t w e e n A f r i c a , E u r o p e , t h e
Americas, the Middle East and Asia
and digital transactions also play a crucial role in its success.

Kuehne+Nagel combines its capabilities and services with value-added service offering

With the global contract packaging market growing at more than 12 percent annually, Kuehne + Nagel has developed an innovative one-stop-shop contract packaging solution combining enhanced capabilities and additional services. KN Packaging aims at meeting the customers’ complex service requirements.

This new value-added service offering is now being implemented in Kuehne + Nagel facilities worldwide focusing on three areas: the use of state-of-the art software, the deployment of the latest collaborative robots and the cooperation with local packaging providers.

With a cloud-based solution offered by Nulogy, the leading developer of contract packaging software worldwide, Kuehne + Nagel improves its customer service by adding instant connectivity and full transparency. The software provides customers with a targeted and traceable solution for their contract packaging needs.

Kuehne + Nagel has signed a strategic partnership with Universal Robots, one of the leading companies in the field of collaborative robots (cobots), to drive process automisation and increase productivity. Designed to assist warehouse workers in a variety of packaging tasks, the integration of cobots will lead to a significant reduction in turnaround times.

Kuehne + Nagel has also identified a number of selected packaging providers at country level. Global customers will benefit from the advantages of local material sourcing, design and engineering complying with local requirements and market preferences.

Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG responsible for Contract Logistics, says, ”At Kuehne + Nagel we aim at innovating systems and processes to seamlessly serve our customers and to make processes much faster, better and leaner, regardless of industries or geographies. With this strategic enhancement of our contract packaging services, we expect to see significant growth across a number of key markets and anticipate deploying hundreds of cobots in our operations in the next few years.”

XPO Logistics’ fourth quarter revenue up by 10%

XPO Logistics’ fourth quarter revenue headed up ten percent annually to $3.68 billion. And net income came in at $27.3 million, or $0.22 per share, which was well ahead of a net loss of $62.8 million, or a loss of $0.58 per share, for the same period a year ago. For 2016, XPO reported a 91.8 percent annual hike in revenue to $14.62 billion, with net income at $63.1 million, or $0.53 per diluted share, topping a 2015 net loss of $245.9 million, or a $2.65 loss per share. Full-year 2016 EBITDA was $1.25 billion, which far outpaced 2015’s $493.1 million.

Transportation total revenue up 9.9 percent annually at $2.33 billion, with the gain due in large part to its October 2015 acquisition of Con-way and organic growth in North America and Europe that was partially offset by the October 2016 divestiture of its North American truckload business, with organic revenue growth paced by its e-commerce driven last-mile business although revenue growth was somewhat impacted by soft North American intermodal volumes. Quarterly operating income rose to $84 million, compared to a loss of $6.1 million a year ago, and its less-than-truckload (LTL) operations in North America saw a 40 percent increase in fourth quarter adjusted operating income;

and
Logistics total gross revenue was up 8 percent annually at $1.38 billion, with growth mainly due to the Con-way acquisition and, like its transportation segment, organic growth in North America and Europe. Organic growth from new contracts with e-commerce and cold chain customers was offset by the adverse impact of foreign exchange rates, and in North America, growth was paced by e-commerce, food and beverage, and aerospace and offset by automotive
XPO Chairman and CEO Brad Jacobs said in a statement that XPO’s focus remains ion further enhancing customer service while also realizing the “significant profit opportunities embedded in our business,” with 2017 seeing the full 12-month benefit of various efficiencies implemented in 2016 in procurement real estate, back office operations, and workplace technologies.

“We’re continuing to execute our strategy for high growth and high returns. We have a concrete bridge to an EBITDA margin of more than 10% in 2018 – an increase of approximately 200 basis points over two years,” he said. “We expect to grow free cash flow at an even faster rate than EBITDA, with a cumulative, two-year target of approximately $900 million of free cash flow by year-end 2018, including at least $350 million in 2017.”
XPO COO Troy Cooper said in an interview that the company had a very strong finish to 2016 with record results for net income, cash flow from operations, EBITDA and free cash flow.

“The key drivers for the quarter were really around the strong organic growth, specifically for last-mile and contract logistics,” he said. “Driving that were e-commerce trends that we see not only in the industry but also elsewhere in retail. We crushed it with our North American LTL business, with annual margins up and fourth quarter adjustable operating income up 40 percent. A lot of the LTL operational synergies we have been after have really come through, and we are taking some of those best practices and doing the same thing in Europe now.”
XPO said in its earnings release that it has reaffirmed its full-year EBITDA targets of at least $1.350 billion for 2017 and $1.575 billion for 2018.

Connected logistics market to grow 32.7% by 2021

The connected logistics market size is estimated to grow from $10.04 billion in 2016 to $41.30 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 32.7%. The growth is attributed to the increasing adoption of connected/smart devices by consumers across the globe, which is increasing the demand for better network connectivity.

The growing number of internet users, the presence of emerging economies and increasing infrastructure needs are driving the growth of the market in APAC. Increasing spending in technology is contributing to the growth of the connected logistics market in North America and Europe.

However, lack of uniform standards in organizational bodies is restraining the growth of the logistics and transportation vertical.

Retail is expected to grow at the highest CAGR in the vertical segment during the forecast period. This vertical has witnessed significant growth over the years with improvements made in the logistics management solution that helps in addressing enterprise demands.

The IoT solutions will enhance the quality of shopping experience while improving available technology, economic structure, and environmental change in the interest of the retail industry.

As per the geographic analysis, North America is expected to have the largest market share. It is likely to benefit from its technological advancements and followed by robust internet infrastructure.

APAC is expected to be the fastest-growing region between 2016 and 2021in the global connected logistics market. With a huge investment in the sector, companies are facilitating the flow of goods with a highly skilled workforce and low regulatory burdens, as the region consists of the world’s largest consumer market.

Hence, the adoption of new technologies and the presence of a strong domestic solution provider have contributed to the shift towards automated logistics and transportation infrastructure from conventional infrastructure. The market expected to grow at a significant pace in the coming years.