Global Supply Chain February 2014

Enhancing thE businEss of logistics

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46

February 2014 Issue 01

AIr CArgo UpdAte LogIst ICs Ins Ight sUppLy ChAIn segmentAtIon

Intelligent, sturdy, economic growth propellers

Air CArgo EmpirEs

IATAReview and forecast

Dubai AirportsPrepped for 2020 and beyond

The AerosFuturistic cargo air ships

February 2014_Cover.indd 1 2/1/14 11:55:59 AM

THE WORLD IS OUR BUSINESSLET US TAKE CARE OF YOURS

Paul Owen,Freight Forwarder,London, UKLondon to Abu Dhabi, daily

When Paul Owen needed to get machine parts to Abu Dhabi, he called Etihad Cargo. With 35 passenger fl ights we o� er a total weekly capacity of 642 tons from London to Abu Dhabi and beyond.

So whether it’s machine-parts or computers, visit www.etihadcargo.com for more information, or contact your local Etihad Cargo representative and we’ll take it from there.

Job No: 228222 Client: Etihad Campaign: Cargo Proof No: 01 Publication: Global Supply Chain MagazineInsertion Date: 01/02/2013 Approver:

THE WORLD IS OUR BUSINESSLET US TAKE CARE OF YOURS

Paul Owen,Freight Forwarder,London, UKLondon to Abu Dhabi, daily

When Paul Owen needed to get machine parts to Abu Dhabi, he called Etihad Cargo. With 35 passenger fl ights we o� er a total weekly capacity of 642 tons from London to Abu Dhabi and beyond.

So whether it’s machine-parts or computers, visit www.etihadcargo.com for more information, or contact your local Etihad Cargo representative and we’ll take it from there.

Job No: 228222 Client: Etihad Campaign: Cargo Proof No: 01 Publication: Global Supply Chain MagazineInsertion Date: 01/02/2013 Approver:

February 2014 1

Welcome to the inaugural issue

Global Supply Chain is your definitive guide to all things logistics for the region. We are a driven team who will bring to you the latest trends, technology, innovation, challenges and news happenings in our close-knit and highly successful industry.

Speaking to members of the air cargo industry when putting together this issue, the overall buzz was extremely energetic as businesses quietly prepare for the improvements in the overall global economic climate plus for changes the country will go through to accomodate all that the Expo 2020 hopes to do for the UAE and the region around it. There is a lot of trade to go around and immense more to come in the near future, being realistically prepared is the only way forward.

So whether it is air cargo or any other related cog in the logistics wheel, we are here to work together with you, our industry partners, in order to highlight achievements, benchmarks, come together to identify issues and find solutions and be a big part of this progressive industry.

This issue brings to you dialogue from the who’s who of the regional air cargo industry. We would love to hear your feedback, feel free to email me and do drop by our website www.globalsupplychainme.com.

Munawar ShariffManaging [email protected]

SIGNATURE MEDIA FZ LLEP. O. Box 49784, Dubai, UAETel: 04 3978847/3795678Email: [email protected] Sales AgentSignature Media LLCP.O. Box 49784, Dubai, UAE

Publisher: Jason [email protected]

Director: Deepak [email protected]

Managing Editor: Munawar [email protected]

Art Director: Raveendran

Production Manager: Roy [email protected]

Printed by United Printing Press (UPP) – Abu Dhabi

Distributed by Tawseel Distribution & Logistics – Dubai

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

1_Editor Letter.indd 1 2/1/14 11:59:47 AM

2 February 2014

News

Bahrain’s Vision 2030Steady growth plans, diversification and infrastructural enhancements will ensure future success for the kingdom

World class resultsIATA outlines the future of air cargo growth in the Middle East region - everything points to mega growth

Contents

04 2410

3316

40


Cargo Empires – built to lastRegional air cargo carriers have built their businesses with im-mense foresight and extremely high standards

All set for 2020 and beyondDubai Airports are steadily building the framework to meet and exceed cargo expectations for the next few decades

Guest ColumnLean and green?

42

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February 2014 3

42

46

52

60

Enhancing thE businEss of logistics

The TransportersFreighter fleets are the backbones of carriers and operators earning them their daily bread

Future of air cargoThe Aeroscraft is a huge project aiming to become a part of air cargo’s future

SC SegmentationDesigning a perfectly profitable supply chain requires compre-hensive study and reinvention

UnwindThe roadmap to e-freight

24

10

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4 February 2014

New CEO at Air Seychelles

Air Seychelles recently announced the appointment of Manoj Papa as its new Chief Executive Officer. He succeeds Cramer Ball, who resigned recently.

Papa joins from South African Airways, where he held the position of Acting General Manager: Commercial, overseeing the entire commercial portfolio for the airline. As part of this, he was also instrumental in developing the Long Term Turnaround Strategy for SAA.

Joel Morgan, the Seychelles Minister for Home Affairs and Transport and Chairman of Air Seychelles, welcomed the appointment of Papa to run the national airline. He said, “Manoj Papa is an experienced airline professional and strategist with the credentials to lead Air Seychelles in the next phase of its development. With our new routes, new aircraft on order and new service offer now across the network, we are in a stronger position than we have ever been.

“I put on record our grateful thanks to Cramer Ball, who has been instrumental in revitalising our national carrier. Cramer was seconded to Air Seychelles in January 2012 as part of a partnership in which Etihad Airways acquired 40 per cent of our airline and secured a five year management contract. He took us into profitability in his first year of leadership and has rebuilt the foundations of our airline.”

Ball will stay on to ensure a seamless transition until Papa officially assumes the position of CEO on March 1.

International Energy Services firm Crowley Carbon has signed an AED 100 million deal with facilities management company Emrill to deploy its Carbon Control Centre technology in 800 buildings under Emrill management. The company will monitor the energy usage in each from its Irish headquarters in Enniskerry. The announcement was made during the Enterprise Ireland Trade and Investment Mission to the

Kingdom of Saudi Arabia, Qatar and UAE. Crowley Carbon, headquartered in Ireland and with offices in London and Sydney will also improve energy efficiency in the Emrill buildings using its 80-strong range of products for energy, lighting, heating, ventilation and air-conditioning.

Crowley Carbon – established in 2009 by entrepreneur Norman Crowley - expects to open a Dubai office this year.

Northrop Grumman Corporation was awarded a contract by Dubai Airports for the delivery of the Analytics module of its Airport Realtime Collaboration (ARC) suite to Dubai Air Navigation Services (DANS).

Northrop Grumman’s Airport Systems group in the UK provides ARC, a software solution that delivers accurate and timely information aiding airport stakeholders to work together more effectively.

ARC is a scalable solution covering both terminal and airfield operations. It enhances passenger flow movements, optimises resource allocation and improves predictability and efficiency by supporting Airport Collaborative Decision Making (A-CDM). It’s a flexible analysis and reporting tool which allows users to perform historical analysis and also presents an accurate and clear picture of real-time airport performance.

Crowley Carbon and Emrill to deploy new technology

Dubai International Airports enhances operational efficiency

Manoj Papa

4-9_News.indd 4 2/1/14 12:07:11 PM

February 2014 5

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai with HE Sultan Ahmed Bin Sulayem, Chairman, DP World, and Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region during a visit to Jebel Ali Port.

DP World’s Jebel Ali Container Terminal 3 (T3), which was recently inaugurated by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, is set to be the world’s largest semi-automated facility.

With 19 sophisticated automated quay cranes and 50 automated rail mounted gantry (RMG) yard cranes, T3 will be at least 30 per cent more carbon efficient than a conventional terminal operation. Importantly, automation will transform the workplace at the port, creating around 1,000 skilled jobs. And with the cranes operated from a purpose built operations building set apart from the quayside using remote control technology, the work has attracted highly skilled – and diverse – people. Thirty per cent of the new quay crane operators recruited are Emiratis, and of those, a third are women. The figure is even higher for RMG operators, with 70 per cent of those recruited Emiratis and 70 per cent of that group being Emirati women.

During his visit, His Highness Sheikh Mohammed talked with some of the new female recruits about their new roles and viewed construction of the pioneering Terminal 3, which will add four million

DP World’s pioneers largest semi-automated facility

TEU (twenty foot equivalent container units) capacity to the port this year, taking total capacity to 19 million TEU.

Photo Caption: His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and Sheikh Hamdan

bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai with HE Sultan Ahmed Bin Sulayem, Chairman, DP World, and Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region during a visit to Jebel Ali Port

Manchester United and DHL bring its trophy tour to the UAE Manchester United, the world’s most

popular football team, and DHL, express and logistics provider, brought the Barclays Premier League trophy to Dubai recently as part of a worldwide tour. The famous silverware was accompanied by football legend and former Manchester United player Dwight Yorke.

To celebrate the Club’s historic 20th league title, Manchester United has teamed up with its Official Logistics Partner, DHL, to launch the United Trophy Tour. DHL will be transporting the Premier League trophy to 31 destinations in 25 countries across the globe this year. Manchester United

artifacts are also being directly transported from the Old Trafford Museum to global locations to give fans the chance to experience special moments in the Club’s history.

Frank-Uwe Ungerer, Country Manager for DHL Express UAE said, “Manchester United has 659 million followers across the world and this tour provides a unique opportunity for many of these fans to directly engage with the Club in an exciting new format.”

For the latest information on the United Trophy Tour and details of activity in each destination, visit manutd.com/unitedtrophytour.Frank-Uwe Ungerer and Dwight Yorke

4-9_News.indd 5 2/1/14 12:07:13 PM

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Small parts storage solutions boltless shelving, plastic storage bins, totes

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February 2014 7

New Bangladesh GM for Etihad

Etihad Airways, the national airline of the United Arab Emirates, has appointed Hanif Zakaria as its General Manager for Bangladesh.

Hanif joins Etihad Airways from Safi Airways, where he held a number of senior sales positions in the Gulf region. Hanif started his career with British Airways in the airline’s Saudi offices. He then went on to become the Branch Manager of Saudi Tourist and Travel Bureau before moving on to Emirates Airlines where he spent 20 years of his career working mainly in the field of airline trade management. Hanif has an excellent track record of working in the commercial aviation environment. His key responsibilities will be to increase awareness of the Etihad Airways brand and develop and further grow the airline’s relationships with the key travel trade and corporate customers across Bangladesh.

Hanif will report to Amer Khan, Etihad Airways’ Area General Manager Area General Manager- Pakistan, Bangladesh, Nepal, Sri Lanka and the Maldives.

Etihad Airways launched daily flights to Dhaka in May 2006 and has carried more than one million passengers on this route to date.

Glenbeigh Records Management (GRM) recently opened its facility at Dubai World Central (DWC). Present for the opening were H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Aviation City Corporation, and the Irish Prime Minister Enda Kenny, who was visiting the UAE as part of a trade mission to the Middle East. The event took place during the Enterprise Ireland Trade and Investment Mission to the Kingdom of Saudi Arabia, Qatar and the UAE.

The firm has invested AED 25 million in a 70,000 sq feet, purpose-built facility, designed and built by its sister company Glenbeigh Construction. The site offers state-of-the-art storage solutions and advanced security systems guaranteed to protect corporate information assets.

Philip Earle, Founder and Chairman,

Glenbeigh Group, said, “We expect to see significant growth in revenue over the next few years, enabling the company to create jobs for the local Emirati population, as well as generate an anticipated 25 jobs in Ireland as a result of our Middle East expansion. We have already been able to hire a number of new Irish employees across the wider Glenbeigh Group who have been involved in the design and construction of the DWC facility and we look forward to further developing ties between the two countries.”

GRM specialises in offsite document storage, scanning and imaging solutions, offsite media storage, vault storage, document destruction, and consultancy, all designed to support businesses in managing and safeguarding their data.

Glenbeigh’s AED25 million UAE facility opens in DWC

4-9_News.indd 7 2/1/14 12:07:14 PM

Call us today on 800 ACME or email us [email protected] and start growing your businessTel (+971-4) 323 2628 Fax (+971-4) 323 2608 customised warehousing solutions that work

We at Acme Group supply solutions and services to help you manage your in-house materials handling requirements. Whether you are an industrial enterprise, wholesaler, retailer or government institution, Acme Group has has a solution that shall help you manage material flow along the entire supply chain.

INTRALOGISTICS

www.acme-world.com

Acme provides the following solutions

Palletised goods storage solutions pallet racking, drive in, VNA

Small parts storage solutions boltless shelving, plastic storage bins, totes

Multi-tier storage solutions Platforms, mezzanine, 2/3 tier shelving

Supply chain automation solutionsAS/RS, Conveying systems

Order fulfilment solutionspick by voice, pick by light, sorters

Warehouse equipment forklifts, reach trucks, stackers

Industrial cleaning equipment

scrubbers, dryers

IT solutions Warehouse Management Systems

8 February 2014

UAE flag carrier Etihad Airways and Spanish airline Air Europa have signed a codeshare agreement which will see both carriers significantly enhance access to and from Spain, the UAE and to destinations across the globe.

Under the terms of the agreement and subject to regulatory approvals, Air Europa plans to commence a three times a week direct service between Madrid and

air europa chooses the Gulf for international expansion

Abu Dhabi in late 2014. Etihad Airways will be offering direct access to Madrid for the very first time through its global Abu Dhabi hub.

Photograph caption: (Seated from left) Alvaro Middelmann, Advisor to the Chairman of Air Europa, and Kevin Knight, Etihad Airways Chief Strategy and Planning Officer, sign the codeshare agreement between the two airlines.

(Behind from left) Mario Hidalgo, Vice President Globalia, Abdul Qader Hussein Ahmed, Etihad Airways Vice President Government and International Affairs, Khaled Al Mehairbi, Etihad Airways Senior Vice President Government and Aeropolitical Affairs, Imanol Pérez, Air Europa Director of Alliances, and John Shepley, Etihad Airways Senior Vice President Network Management.

CHEP, pallet and container pooling solutions provider recently announced that it has signed a two-year, new-business contract with Oman Refreshments Company SAOG (ORC). The agreement is for more than 10,000 pallet movements annually, replacing

white exchange pallets.ORC General Manager,

Youssef Ezzikhe, said, “The pallet side of our business has been a significant part of our logistics operations for many years. Our heavy usage of pallets and their frequent movements across our business

locations required a huge annual investment. Buying new pallets, repairing them, plus tracking their movements and accounting for losses shifted our management focus away from our core business operations, to eliminate those aspects, we decided to make the transition

to CHEP managed pallets. CHEP has a proven business model in the timely supply of pallets and their tracking. Plus, the conversion gives us the opportunity to realise logistics efficiencies, while achieving a significant reduction in overall pallet costs.”

CHEP wins Oman refreshments pallets contract

4-9_News.indd 8 2/1/14 12:07:26 PM

February 2014 9

Boeing, Etihad Airways, Takreer, Total and the Masdar Institute of Science and Technology recently announced their agreement to collaborate on a new initiative to support a sustainable aviation biofuel industry in the United Arab Emirates.

BIOjet Abu Dhabi: Flight Path to Sustainability will engage a broad range of stakeholders to develop a comprehensive framework for a U.A.E. biofuel supply chain. This initiative will focus on research and development and investments in feedstock production and refining capability in the U.A.E. and globally.

Etihad Airways showed the promise of this homegrown effort recently with a 45-minute demonstration flight in a Boeing 777 powered in part by UAE-produced sustainable aviation biofuel. The biofuel was partially converted from plants by Total and refined into jet fuel by Takreer, a wholly-owned subsidiary of Abu Dhabi National Oil Co. (ADNOC). UAE is now among a handful of countries that have produced and flown on their own aviation biofuel, which emits at least 50 per cent less carbon dioxide than fossil fuel over its lifecycle.

“In collaboration with our key partners, our goal is to support and help drive the commercialisation of sustainable aviation fuel in Abu Dhabi, the region and also globally,” said

Etihad Airways President and CEO James Hogan. “We have made some important first steps in this process and our continued focus will be to develop further initiatives such as this which will facilitate the availability of sustainable aviation biofuels for Etihad Airways in the coming years.”

Boeing and Etihad Airways are also among the founding partners of the Sustainable Bioenergy Research Consortium, hosted by the Masdar Institute in Abu Dhabi. The consortium has been researching and developing salt-tolerant plants that would be raw material for the same refining processes used to produce renewable fuel for the Etihad Airways flight.

Etihad Airways is an airline industry leader in supporting the development of lower-carbon renewable fuels. A member of the Sustainable Aviation Fuel Users Group (SAFUG), the airline operated the Gulf region’s first biofuel flight in January 2011 with a Boeing 777 delivery from Seattle to Abu Dhabi powered by a blend of petroleum-based and certified plant oil-based jet fuel.

Boeing collaborates with airlines, research institutions, governments and other stakeholders to develop sustainable biofuel supply chains around the world, including the United States, Middle East, China, Brazil, Europe and Australia.

Top backing for sustainable biofuel industry in UAE

Dubai foreign trade hits AED1.009 trillion

Dubai’s non-oil foreign trade managed to cross the AED1 trillion threshold within nine months in 2013, to reach a volume of AED1.009 trillion by the end of Q3, compared to AED918 billion for the same period in 2012.

Dubai Customs statistics show that Dubai’s non-oil foreign trade growth was the result of the increase in imports till Q3 of 2013; reaching AED610 billion, as compared to AED546 billion in the same period last year. In addition, exports and re-exports rose to AED399 billion, compared to AED372 billion.

Moreover, direct trade accounted for 64 per cent of Dubai foreign trade, as it reached AED649

billion by the end of Q3 2013, up from AED595 billion for the same period in 2012. While free zones trade share stood for 35 per cent, that is, AED348 billion, compared to AED316 billion; customs warehouse trade hit AED12 billion, up from AED six billion last year.

It is this diversity in foreign trade elements that boosts Dubai’s opportunities to secure higher positions in global trade rankings, enhanced by expansions of new markets, owing to its pivotal role in connecting the world’s different zones, and need of traders and investors to benefit from its trade advantages in improving returns of their business transactions.

Further, India ranked first on Dubai’s total non-oil foreign trade partner list; as trade volumes between them reached AED111 billion, followed by China with AED99 billion, then the USA with AED65 billion.

Speaking of exports, India came at the forefront of Dubai’s trade partners with a share that accounted for 21 per cent; that is equal to AED24 billion, followed by Turkey with 13 per cent and AED15 billion and Switzerland with seven per cent that is equal to AED eight billion.

As for re-exports; Saudi Arabia comes first with a share of 12 per cent amounting to AED33 billion, followed by India with 11 per cent that is equal to AED32 billion, then Iraq with a share of seven per cent and AED20 billion.

4-9_News.indd 9 2/1/14 12:07:28 PM

10 February 2014

Bahrain’s vision

2030

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February 2014 11

Bahrain

Trends and Challenges for Logistics in Bahrain

Infrastructure Investment Outlook

GDP and Federal Finances Real GDP recorded at around 2.0% in 2012 The petroleum and minerals sector is expected to

constitute 86% of total treasury income in 2013 and 2014 while it has accounted for around 76% of budgetary sources in 2009 and 2010 Bahrain is projecting a budget deficit of $1.76 billion for 2013 In 2011, the GCC decided to give $10 billion of financial

aid to Bahrain and Oman each over a span of 10 years to help them overcome socio-economic and socio-political issues

FDI Confidence and Competitiveness FDI inflows in Bahrain have rebounded in 2011 from

relatively low values in 2010, rising to a level of $781 million with an increase of around 400% Bahrain is ranked 35thin the World Economic Forum’s

2012-2013 Global Competitiveness Index

Development Outlook Bahrain’s GDP is expected to stabilizearound 3.7%

between 2013-15 and then to increase to around 4.7% in 2016-17 However, port and other infrastructure capacity continue

to make Bahrain an attractive logistics hub given its drive to diversify its economy and the likeliness of Khalifa bin Salman Port becoming a transshipment hub in the near future Bahrain has emerged from the crisis experienced in 2011,

and the same has been reflected in improved ratings, yet the same is constrained by fiscal dependency on sustained high oil prices and international donor support Oil price volatility remains a source of risk as exports and

services are vulnerable to changes in demand Regional political instability has the potential to adversely

impact foreign investments, development

“Vision 2030” is an action plan to fast track development projects in the infrastructure sectorthroughout the country Around ~$600 million has been allocated for infrastructure

facilities in the 2013budget and the same was dedicated for 2014 Bahrain is seeking to reduce government financing in

infrastructure projects through Public Private Partnership (PPP)

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12 February 2014

Logistics Projects and Outlook

Overview Forecasts predict that the country’s shipping sector

will experience steady growth in the medium term due to Khalifa bin Salman Port, which may become a major transshipment hub

Khalifa bin Salman Port APM Terminals Bahrainis slated to operate both Mina

Salman and Khalifa bin Salman Port for 25 years Khalifa bin Salman Port’s initial capacity is 1.1 million TEU

per year with a possible expansion of up to 2.5 million TEU The port wasopened in 2009, and has been designed to

allow for future expansion

Mina Salman Port In response to the growing demand for building materials

in Bahrain, the former main container and general cargo terminal, Mina Salman Port has been converted to a dedicated import and export building materials terminal. It has been re-commissioned and is in operation since January 2012 In addition, the US Navy is also expanding the port.

A $580 million project is scheduled to be completed in 2015, and will include utilities infrastructure, a consolidated port operations and harbor patrol facility, personnel barracks, administrative buildings, dining facility and a flyover bridge connecting Naval Support Activity (NSA) Bahrain to the new port facilities

Overview The GCC is set to invest around $90 billion in the next few

years in order to meet the growing need and Bahrain is likely to receive some of these funds

Bahrain International Airport The expansion of Bahrain International Airport is expected

tohit a passenger capacity of around 13.5 million per year with an expected budget of ~$4.7 billion The original timeline for the expansion project suggested

completion of Terminal 1A by 2013, and demolition of the existing terminal to commence construction of Terminal 1B in 2014. Formal launch of the Bahrain international Airport expansion project was made in June 2011 The project also features nearly five additional contact gates,

nine remote gates, 40 additional check-in counters, and a large transfer facility and other capacity enhancements and value added facilities Bahrain’s Sakhir Air Base A ~$15.4million project to upgrade the infrastructure at Bahrain’s

Sakhir Air Base was completed on schedule in early 2010

SEA

AIR

10-14_Bahrain.indd 12 2/1/14 12:09:19 PM

February 2014 13

Bahrain

Overview Bahrain is well situated, only 40-kilometres

from Saudi Arabia. In case theBahrain-Qatar Causeway is constructed, Bahrain could further strengthen its regional economic and logistics position

Bahrain-Qatar Causeway The recently redesigned causeway is

expected to connect the western costal region of Qatar with eastern Bahrain (the so-called 40-kilometre ‘Friend-ship Bridge’) It will carry four vehicle lanes and two railway

tracks between the two countries It is planned to be finished before the World

Cup in 2022 with an expected budget of ~$2.9 billion King Fahad Causeway The 25km-long King Fahd causeway links the

Kingdom of Bahrain with the Eastern region of the Kingdom of Saudi Arabia Expansion work on the King Fahad Causeway,

connecting Bahrain with Saudi Arabia will be developed over a period of 20 years and is supposed to cost around $5 million Workshall include construction of additional

lanes for incoming and outgoing traffic and a waiting yard on each side of the causeway. King Fahd Causeway Authority received bids from firms for the Project Management

contract for the first part of the expansion project in Feb 2013

North Manama causeway The project includes building:

- Anupgrade of the two junctions and the improvement of the at-grade movements of Al Fateh / King Faisal Highway, and Al Fateh / Shaikh Hamad Causeway - The construction of a new signalized traffic junction for entry / exit into the Manama Lagoon area halfway - The construction of new 2.42 km of roads along Al Fateh Highway and the eastern and northern sides of the Bahrain Bay - The construction of a new 238 m long curved left turn flyover to provide a two-lane single carriageway access to the Bahrain Bay - The construction of a new 51.4 m long single span bridge to provide three-lane dual carriageway across an architectural canal along the northern side of the Bahrain Bay This~$265million contract is nearing

completion, with major portions now open to the public (as of February 2013) Mina Salman Interchange Ongoing tunnel project worth~$123 million

and expected to be completed in November 2013

Overview The GCC region is united in a push

towards developing rail transportation in the region, Bahrain stands to gain from GCC interconnectedness

Bahrain Rail Network Bahrain envisions the construction of a

~110-kilometre network in three phases by 2030; and is awaiting approvals to begin initial studies for the $8 billion rail plan 90 km rail will link Bahrain and Saudi Arabia,

which is estimated to cost $4.5billion

Bahrain monorail The project calls for the construction of

the Bahrain Monorail that will link the various regions of Bahrain to ease traffic (it is part of a whole public transport network project including Light Rail

Transport (LRT), a monorail, trams and a Bus Rapid Transport (BRT)) The first phase i.e. the Green Line is a

23-kilometre long section which will extend from Juffair through Manama to Seef district The entire project, measuring around

103-kilometres, is planned to be completed by 2030 Phase 1 budget is ~$1 billion, complete

project budget is ~$8 billion Saudi Arabia-Bahrain Rail Link Discussions are taking place to develop a

rail link between Bahrain and Saudi Arabia, linking Al-Khobar with Manama The project will cost around $4.2 billion.

The proposed construction will take place in parallel to the King Fahd Causeway The feasibility report is expected to be

available by the end of 2014 with the aim of the project being operational in 2017

RAIL

ROAD

10-14_Bahrain.indd 13 2/1/14 12:09:25 PM

14 February 2014

Bahrain

Bahrain – Key Economic Drivers

International airport

Other airport

Other seaports

Major seaports

Shaikh Isa Air Base (military airport)

Muharraq Port (small port located in the Island of Muharraq accommodates mainly dhows with draught of five meters)

10-14_Bahrain.indd 14 2/1/14 12:09:25 PM

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productcatalogue

IATA

established a lot of new routes across Africa and into Asia. This has helped to generate more capacity and more demand that is very positive.

Although the Middle East market is still relatively small when compared internationally, the growth is significant making an overall impact. Also, there are a number of successful carriers such as Emirates and Qatar Airways which have a clear priority to service the region. There are more investments happening here leading to more growth.

It is very important to give credit to the governments that have aviation at the heart of their strategy and have created that infrastructure. Additionally, the carriers have gone ahead and matched capacity too. It is a combination of good management and making optimum use of location which bodes well for the future in terms of continued growth of the sector.

What are IATA’s forecasted 2014 figures for cargo growth in Middle East?It’s a very promising 14 per cent as compared to 13 per cent last year and 14.4 per cent in 2012. Traffic growth is very strong. This region is doing very well as compared to other regions, which is good news because globally air cargo is going to have a flat year in 2014. The overall freight tonnes is about 1,000,000 for air cargo.

What challenges are top most for carriers from the Middle East?The challenges that we are facing right now are to do with airspace capacity. There is lots of capacity at airports, but airspace capacity is not so strong. That leads to some delays in both passenger and cargo.

Secondly there is security. There is a particular piece of legislation coming into effect from July 1, which

World class resultsWhile IATA’s international air cargo forecast for 2014 is flat, the Middle East is poised to be the only promising air cargo trade region. IATA’s Chris Goater speaks to Munawar Shariff about it

is called the ACC 3. This is applicable for all cargo entering the EU from any country outside of the EU, with a few exceptions. All the cargo will have to be subject to a verified audit that they have a secure supply chain and it is up to the air carriers to approve that their cargo is safe and secure.

This is a very big job validating the secure supply chain at all the entry points. It’s a significant piece of work and there isn’t a lot of time left to finish that. So that is something on top of the regular security challenges carriers face.

How do you think the Middle East is coping with these challenges?In the Gulf, there are many positive aspects. Firstly, its natural geographical location makes it the centre of all of these new economies that are taking advantage of the cargo networks that the region helps provide. For example, the Gulf has

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World class resultsHow have political and economic factors in some countries here affected numbers?That’s correct, the Middle East and the Gulf is not homogenous. There are stable, growing economies and then there are not so stable economies. The key point about the cargo numbers (and passenger as well) is, to a large extent, all of it is still in transit. Much of the Gulf is not the final destination as their economies and populations are quite small.

This is changing in case of the UAE, for example, which has developed itself in terms of tourism and business opportunities, hence more and more people are coming to visit.

Talking about not-so-stable economies, they were anyway not so strategically key in terms of the cargo figures in the market to

have an overall impact on regional growth figures. For example, Syria contributed to six per cent of the total Middle East aviation market

before the trouble began. So even though traffic has declined dramatically, its overall impact on the wider economy of the Middle East for cargo and aviation is quite limited.

What preps are being made to further increase demand?There’s been a lot of forward thinking in terms of the infrastructure facilities. Also, carriers

such as Emirates are working hard to implement the e-AWB indicating huge investments in new technologies, which assists in furthering air cargo.

How technically advanced in terms of air cargo is this region?It’s very strong. The infrastructure is very new and world-class in many areas. Certainly the UAE needs to be mentioned here, it has just built the enormous airport to assist cargo shipments. Emirates is very up-to-date with the e-AWB implementation.

Carriers are showing good signs of being highly adaptable to new technology and willing to take a lead. The region is definitely up there with the best. Of course, there are carriers and parts of the world which are also very well invested in cargo forms such as Singapore etc. There are certain carriers and airport partnerships which are very strong and there’s no doubt that the UAE is putting up a very good show as is Qatar. Certainly the Gulf has a few very strong players.

It is very important to give credit to the governments that have aviation at the heart of their strategy and have created that infrastructure.

IATA

February 2014 17

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18 February 2014

Speed,reliability,efficiencyThe industry is focused on developing partnerships to strengthen air cargo

Air cargo transported goods valued at $6.4 trillion in 2012. That impressive figure masks two years of declining volu.mes resulting from a sluggish global economy and a modal shift from air to sea transport.

The Global Air Cargo Advisory Group (GACAG) comprises the International Federation of Freight Forwarders Associations (FIATA); The International Air Cargo Association (TIACA); the Global Shippers Forum (GSF); and IATA. Their work is focused on the priority areas of e-commerce, customs and trade facilitation, security and sustainability.

Since its inception in March 2011, GACAG has firmly established itself as the air cargo industry’s primary stakeholder voice in dealing with governments and international organisations on unified industry positions. Its major

IATA

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Almajdouie De Rijke Logistics Co. (MdR) provides supply chain services to the petrochemical industries including receiving the products from the production plant, packing, drumming, internal operations, warehousing and shipping of the finished products to the end user including administration and maintenance.

Almajdouie Head Office, 2nd floor, P.O. Box 336, Dammam 31411 Tel +966 3 819 8192, Fax +966 3 811 4192, Email [email protected]

smart solutions in supply chain

IATA

20 February 2014

accomplishment is the e-freight roadmap. But it also plays an important role in helping to drive the implementation of industry standards.

Reflecting the need for cross-industry collaboration, the World Cargo Symposium (WCS), hosted by IATA, has evolved to become a major industry decision-making event. The event also serves to raise the profile of air cargo with governments as a strategic partner, helping to ensure that cargo has the

regulatory environment and infrastructure needed to successfully drive growth.

Air freight’s value proposition of speed, reliability, and efficiency is being reinforced through e-commerce and digital data transfer technologies – known as e-freight.

In 2012, GACAG endorsed an e-freight roadmap based on three key initiatives. IATA is leading the first two: expanding the global e-freight network and eliminating paper-based core transport documents.

Air freight’s value proposition of speed, reliability, and efficiency is being reinforced through e-commerce and digital data transfer technologies – known as e-freight.

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IATA

February 2014 21

FIATA and the GSF are jointly leading the third initiative, which is to digitise commercial documents.

To expand the global e-freight network, it is necessary for more countries to ratify Montreal Convention 1999 (MC99). MC99 supports the removal of paper documents accompanying shipments. The industry is focused on persuading governments in such cargo markets as Bangladesh, Indonesia, the Philippines, Russia, Sri Lanka, Thailand, and

Vietnam to ratify this treaty. In addition, to help demonstrate the benefits of e-freight IATA will support e-freight proof-of-concept pilot projects in two of the BRICS countries, China being most critical.

Modernising the Cargo Agency ProgrammeSafety is being enhanced through strict compliance with enhanced dangerous goods regulations.

Airlines are taking the lead in eliminating the paper core transport documents by moving toward the 100 per cent adoption of the e-Air Waybill (e-AWB). In 2012, Cathay Pacific, Emirates and Singapore Airlines reached more than 75 per cent e-AWB penetration out of their main hub airports. Many other airlines reached more than 20 per cent e-AWB penetration. Case studies based on those successes reveal an average 20 per cent efficiency gain for airlines,

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IATA

22 February 2014

freight forwarders and ground handlers when moving to a paperless environment. In some cases, the efficiency gains exceeded 44 per cent.

To facilitate the adoption of the e-AWB, FIATA and IATA jointly developed a multilateral e-AWB agreement that in March 2013 was adopted by the Cargo Services Conference as Resolution 672. The multilateral agreement will enable parties to utilise e-AWBs under a common and internationally recognised legal framework, removing the burden of signing multiple bilateral e-AWB agreements. Recognising that the necessary standards were in place for the e-AWB, the IATA Board of Governors in 2012 endorsed a target of 20 per cent e-AWB penetration worldwide where legally feasible for 2013.

The challenge of adhering to the Dangerous Goods Regulations (DGR) is growing. This is particularly so amid the growth in manufacturing from emerging economies, the changing nature of business with the exponential growth of e-commerce, and the technological changes that have seen lithium batteries become the power source of choice in a vast array of consumer and industrial devices.

In 2012, there were a number of incidents where dangerous goods were either not packaged correctly or not identified as dangerous goods and instead offered as items of general cargo or as standard air-mail parcels. Some of these shipments resulted in fires and in mercury leakages in aircraft.

IATA is working to ensure that continued strict compliance with the DGR is widespread within the industry and embedded in the standard operational

practices of airlines. The development of the DGR over several decades has enabled almost every type of potentially hazardous material to be shipped safely. The challenge is for the whole air cargo supply chain to adhere strictly to the requirements of the DGR.

To address the mail issue, IATA worked with ICAO and the Universal Postal Union (UPU) to establish requirements for postal administrations to develop and implement appropriate dangerous goods training and controls to prevent such products from entering the

air mail stream. The training and the control procedures are subject to review and approval by national civil aviation authorities.

IATA also sought to address undeclared dangerous goods incidents and to promote

industry engagement on the carriage of lithium batteries. IATA conducted a series of informational events and in 2013 issued a lithium battery guidance manual that provides practical detail on regulations for transporting lithium batteries.

In 2013, IATA continued to work with ICAO to identify possible improvements to the DGR to further enhance safety. Additional workshops on dangerous goods and lithium batteries were held to facilitate the industry’s outreach to educate shippers and manufacturers on lithium batteries. And again IATA worked closely with the UPU to heighten safety regulations for air mail.

In collaboration with FIATA, IATA is evolving the Cargo Agency Programme to better address contemporary issues of accreditation, governance, training and supplier and buyer collaboration. The programme will respond to industry customer demands; preserve the Cargo Accounts Settlement System (CASS); protect member funds and create a collaborative environment where cargo service standards and solutions can be universally implemented to improve safety, security and operational efficiency.

Other benefits of the modernised programme include a simplified governance structure that enables shared accountability and reduces the global administrative workload. Given that 80 per cent of freight transactions are performed under a principal-to-principal relationship, the proposed Cargo Agency and Air Cargo Programmes aim to better administer an industry involving a buyer and seller relationship.

In 2012, the Cargo Agency Programme obtained the support of the Cargo Committee and of the IATA Board. In 2013, the goal was to draft new resolutions and rules for the Cargo Agency Programme and for the IATA-FIATA Air Cargo Programme (IFACP). Final approval for those resolutions and rules will be sought from the Cargo Agency Conference (CAC) in early 2014. Assuming approval is obtained from the CAC, regional implementation of the programmes will begin this year.

Reprinted with permission from the IATA 2013 Annual Review.

In collaboration with FIATA, IATA is evolving the Cargo Agency Programme to better address contemporary issues of accreditation, governance, training and supplier and buyer collaboration.

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Cover Story

24 February 2014

Cargoempires – built to lastTo say that the Middle East is setting impossibly high standards in air cargo operations would be an understatement. Carriers are financially secure, well-connected with razor sharp reflexes and grand visions. Munawar Shariff spoke to the top players - Emirates, Etihad, Saudia, Qatar and Cathay

EmiratesPradeep Kumar, Emirates Senior Vice President Cargo Revenue Optimisation and Systems

How was business last year?From 2011, the air cargo market was stagnant because of the global economic downturn. How it works is, if the world economy is growing by two per cent, cargo growth will be double – four per cent.

Europe was in its debt crisis resulting in huge reductions in imports coming in and Asia – being the world’s factory – most of the business comes through there, when that stopped all airlines were impacted.

An economic cycle has downturns followed by upturns but this one was the longest lasting from 2008/9 to 2010 (when things started to slightly improve) only to fall deeper.

From mid 2013, there are signs of moderate improvements. I won’t call it

a rebound in the market, however small improvements can be seen in markets that were not performing at all.

So at Emirates, we’re excited about our performance from mid of last year. Being the ”only airline” operating an all wide body fleet from a cargo perspective, it is a huge benefit as it provides seamless movements without having to reprocess loads enabling faster connectivity. This give us an edge over the competition. Additionally, we are inducting two new freighters to our fleet (taking the total up to 14 freighters) and look forward to a better year.

Tell us more about your fleet - number, capacity, fuel efficiency.Our wide body fleet consists of 10 777 Boeing freighters, we’ve leased two 747-400 planes and none are conversions. The two new freighters which will come later this year are also 777s. The age of the fleet is not that much, we bought six to seven of our planes just over two years ago.

In terms of fuel efficiency, the new generation 777s are very fuel efficient.

What is the agenda for 2014?We are investing in our fleet for both cargo and passenger, we are investing in assets, we are looking at handling capability. Operational

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February 2014 25

efficiency is only visible when an operator can take control of the place where the rubber meets the tarmac. Today we are handling over 10,000 shipments in a day meaning 7,500-7,800 tonnes of cargo in 24 hours at our DXB facility. The intensity is extremely high and despite that our service failure ratio does not even come up to .01 per cent. That is our strength.

The main agenda is the movingof the entire freighter fleet operations to DWC from May 1, 2014. Here currently the terminal is handling 1.9 million tonnes of cargo and in order to expand we need more floor space.

Give us a brief over of the GCC and Middle East region.Internationally, growth is flat. However, the Middle East is very strong. The reason being, governments are creating opportunities for trade and development to be a means of expanding their economies instead of continuing to rely on oil.

Cover Story

This is propelling consumer confidence, the geocentric advantage helps us to grow beyond the region as Dubai is gateway to all of Africa among other emerging surrounding economies. Plus the new well-connected sea port and airport is the perfect backdrop to enhance our distribution network and reach.

What are current challenges?Oil prices are not at sustainable levels leading to inflation in some countries. The other big issue is currency. It plays a big role in cargo traffic flow, for eg. currency depreciation impacts production which hits at every level.

Which is the most promising market?Africa.

Pradeep Kumar


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26 February 2014

EtihadDavid Kerr, Etihad Cargo Vice President

Give us an overview of your air cargo business.We’ve seen 32 per cent growth in volumes. 2013 was a record year for us. We were able to greatly expand our network, improve capability, improve freighter capacity, add new products, establish successful customer relationships and deliver impressive results.

What is on the agenda for 2014?More of the same really. In addition to all we achieved last year, we want to continue double digit growth, expand our team, look for new product offerings during the year. On the route development side, we have a number of new routes launching to the USA, we are going to Los Angeles from July and commence thrice weekly flights to Dallas and a second service to JFK from the 1st of March.

Tell us about your freighter fleet - number, age, fuel efficiency.We have nine freighters six of which are operated ourselves, three are on various wet lease agreements. We have three Boeing B777F, one Boeing 747-8F, one Boeing 747-400ERF, one Boeing 747-400F, and three Airbus A330-200F. Three more freighters are currently on firm order including two Airbus A330-200F and one Boeing 777. The average age of Etihad Cargo’s fleet is 3.3 years, and 1.3 years for Etihad Cargo’s six owned freighters. The airline’s three Boeing 747 freighters are leased from Atlas Air (two) and KLM (one) respectively.

In terms of fuel efficiency, we have an aggressive waste reduction programme. Once we acquire our new freighters and replace the current wet leased planes, we expect to reduce our emissions by 20 to 25

per cent across our fleet. We’re investing in bio-diversity projects and are actively engaged in bio-fuel testing.

Give us an overview of the air cargo business.There are a large number of growth opportunities in Abu Dhabi both in and out bound in the air cargo business. Since air cargo is an integral part of Etihad and the airline is an integral part of the development of the Abu Dhabi emirate, there’s a clear plan being executed to grow and to facilitate tourism and trade.

By virtue of our geographic location, we sit in the middle of major trade lanes on all sides, so we choose to compete carefully in some of the larger trade lanes and also focus on some of the narrow but more growth oriented trade lanes around the region and beyond. In terms of investments, we intend to grow a cargo base here in Abu Dhabi and develop a new cargo facility here in the near future.

Industry data suggests air cargo to be flat internationally and looking at Etihad’s performance last year, we are very happy. We are the fastest growing airline globally and we intend to maintain that.

What are your current challenges?Our first priority as an airline is to run safe and secure service. We adhere to all the rules and regulations and safety requirements. Our customers provide us with daily opportunities to ensure to them that we meet and exceed requirements. Our customers are our focus so we prioritise to bring more relevant solutions for them on a global platform. They are the indicators which tell us where to grow and where to compete.

David Kerr


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What about market share? What about your competition?Market share is not explicitly our target, we’re looking to grow based on our growth curve and capacity deployment of our own internal target. Market share is a result of that growth and is a function of what happens in the global market. Today global market statistics say we are in the top 10 or 15 airlines, so we don’t have explicit targets as to where we want to be. So market share would be a result of what we do.

We are competing on a global scale, we monitor and compete in markets where we need to compete which is a based on what our customers needs are and where their growth areas are and we bring solutions and choices for them as we grow and compete on a global level. Our service reflects the needs of our customers.

Which is the most promising market?Two of our largest markets are China and India. There were massive expansions in these two countries last year. Then USA and the Netherlands. We are looking beyond existing growth to establish partnerships as we develop our fleet and network connections for the future. It is important to be evolving we need to stay very close to our cust to understand where the opportunities are.

Cathay PacificBrian Yuen, Cathay Pacific Country Manager UAE & Qatar

Give us an overview of business last year. It was a challenging year for the air cargo industry as a whole. The demand was soft for the first half of 2013 but we saw an increase in volumes starting from October and November, mainly driven by high-tech goods from China and other major manufacturing activities in Asia. Demand was particularly strong on the Transpacific routes and we managed to match our capacity with the demand on these key routes. In particular we launched our new freighter service to Guadalajara, Mexico last year and it has been well received by the customers so far.

Looking forward we remain cautiously optimistic on the outlook for 2014. While demand was stronger in the second half of 2013, the high fuel price, patchy global economy and the generally weak demand still

contribute to the uncertainty of the business. Cathay Pacific will continue to focus on product and service offerings in serving our shippers and forwarders. Last year, our new Cathay Pacific Cargo Terminal became fully operational, setting new standards in operational efficiency and environmental design.

How important is the Middle East region?The region is an important transit point, being at the heart of the fast-growing gulf carriers, there is tremendous competition in this market. We continue to differentiate ourselves by focusing on special products and other priority products – which can best leverage on our expertise. We have also recently announced our move

of freighter service from Dubai International (DXB) to Dubai World Central (DWC), which we believe will better serve our customers and bring our service level to a new high.

Tell us about Cathay’s freighter fleet. Our freighter fleet consists mainly of B747. Half of our existing freighters are B747-8Fs, which are one of the most fuel-efficient aircrafts.

Cathay Pacific has 41 cargo only destinations including the latest addition Guadalajara (where we have no passenger services).

Brian Yuen

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28 February 2014

Qatar AirwaysUlrich Ogiermann, Qatar Airways Chief Officer Cargo

What is the status of the air cargo industry in the GCC region today?As one of the fastest growing economies in the world, Qatar is in a solid position to become a major international commercial gateway. A modern, state-of-the-art cargo infrastructure is the key to achieving this objective. Qatar’s strategic location within the Gulf region combined with efficient hub connections have enabled Qatar Airways and Doha to become the ideal choice for airfreight between manufacturing centres in Asia and consumers in US, Europe and Africa and vice versa.

According to IATA, Middle Eastern carriers reported the strongest air cargo growth performance in November 2013, with a 16.5 per cent year-on-year growth compared to the same period in the previous year. Carriers in the Middle East, including Qatar Airways Cargo, have benefited from improvements in advanced economies, including increased demand in Europe, as well as solid economic and trade growth within the Gulf. Industries that contribute to the growth in this region, including its cargo sector range from oil and oil-related products, to agriculture, cattle, dairy, pharma, textiles, leather products, medical instruments, defense equipment.

This growth is likely to continue as the region’s trade volumes continue to rise year on year.

How does it compare to the international air cargo business?Air freight in the Middle East is on an upward growth trajectory, despite setbacks in the global economy. December 1, 2013 marked a key milestone in our business development as the first Qatar Airways Cargo shipment was received at the new cargo facility at Hamad International Airport. The new cargo terminal, which is one of the largest in the world, has the capacity to move 5,700 shipments simultaneously and to handle 1.4 million tonnes of cargo per annum by 2015, representing a 75 per cent increase from the current airport.

We can forecast with confidence that the new cargo facility and its expanded capacity will further spur growth and put Qatar in a strong position to become one of the world’s top five global commercial cargo hubs. HIA will play a significant role in expanding our

global cargo business and will propel Doha as the preferred cargo hub in the region.

What are your current challenges?Qatar Airways Cargo recently launched two new premium services that will optimise the transportation of time and temperature sensitive goods, including high-value pharmaceutical products and perishables. The new services, Q Pharma and Q Fresh, will add to our substantial range of cargo services and further enhance our capacity and flexibility to effectively move sensitive commodities in line with the highest world-class standards in line with IATA requirements. Additionally. our new fleet of climate controlled vehicles eliminates temperature exclusions and provides seamless and rapid transfer at our Doha hub.

What about market share? Who is your competition? Which is the most promising market?A constant dialogue with our customers enables us to understand their expectations and demands and helps offer them reliable services that optimise cost and operational efficiencies across the supply chain spectrum.

If we look at the current trends and increased cargo traffic between Africa and Asia, we can categorise Africa as one of the most promising markets in the upcoming period. Our strong hub position will enable us to leverage the strengthening trade ties between these two markets. In addition to Africa we can expect to see increased cargo traffic to/from South America and CIS region. Overall imports into the Middle East from Europe will continue playing an important part in airfreight.

What kind of freighter fleet does Qatar Cargo own? What is its most fuel efficient cargo carrier?We currently have three A330 freighters and

Ulrich Ogiermann


Cover Story

five 777 freighters. At the Dubai Air Show, we ordered five new Airbus A330-200 freighters. These new aircraft will complement the airline’s rapidly growing network, which includes more than 40 routes that have dedicated freighter services. Included in the order are eight additional A330-200F options. These aircraft on order will complement the existing fleet operating from early 2013. Two 777s are going to join our fleet by this summer.

How is Qatar Cargo gearing up for future growth in the region?We fully understand that diversification, supported with innovative technologies, service and products is the key for the sustainable growth of our business. With large-scale events such as Qatar 2022 World Cup on the horizon, the State of Qatar is seeing substantial growth across a wide range of infrastructure and industry-related projects that are increasing the demand for cargo-related services. In addition, Qatar’s rapidly growing economy and corresponding population growth is witnessing increased demand for perishables/food imports. For Qatar Airways Cargo, one of our key goals is to ensure we are able to continuously meet this growing demand and to further enhance the supply chain of perishables regionally. With new freighters joining the fleet, Qatar Airways Cargo will be able to serve new and emerging freight markets and meet the increasing demand for cargo where it occurs.

An important part of air cargo service quality occurs on the ground. Managing the export acceptance, the import delivery, and timely transport of shipments each year is an operational challenge. Therefore, we are constantly on the watch for ways to improve our service and operational capabilities. For example, Qatar Airways Cargo offers the fastest airline transfer at Doha through its Quick Ramp Transfer (QRT) solution. We are the only carrier in the Middle East to offer refrigerated or ‘reefer’ truck services for ramp transfers at its home hub. Sensitive commodities are collected from and delivered directly to the aircraft by specialised temperature controlled vehicles, in an effort to ensure that the cool chain process is seamless, thereby eliminating risk to temperature exposure.

We have also signed the e-AWB agreement with IATA.

Saudia CargoPeter Scholten, VP Commercial at Saudia Cargo

What is the status of the air cargo industry in the GCC region today?The air cargo business in the GCC region is booming. It is currently one of the fastest growing markets on the air cargo scene.

How does it compare to the international air cargo business?According to IATA figures, a 16.4 per cent growth in air freight revenues (outbound) was forecast for the Middle East in the third quarter of 2013. This compares with a global air cargo market forecast of -3.2 per cent growth in revenue for 2013 and zero per cent growth in revenue for 2014, with tonnage forecast to increase by one per cent and 2.1 per cent, respectively. The global air cargo market, therefore, is showing signs of improvement – particularly in the form of increased demand – although increases in capacity have resulted in greater pressure on yields and revenues.

What are current challenges?Import of dangerous goods into Saudi Arabia is not possible without prior approval from the authorities. In order to facilitate this procedure,

we recently launched OK2GO, a new online tool aimed at assisting customers to obtain the necessary approvals for the import of automotives, dangerous goods, high value goods, human remains and live animals into the Kingdom.

What about market share? Who is your competition? Which is the most promising market?KSA is the largest economy within the GCC. As the country’s national carrier we naturally have a large market share to and from the Kingdom within the GCC region. In terms of our competitors, these are the other major airlines in the region. Our promising markets vary from region to region depending on business opportunities.

What kind of freighter fleet does Saudia Cargo own? What is its most fuel efficient cargo carrier?

Saudia Cargo operates a fleet of 15 aircraft composed of four MD11s, two B747-8Fs, seven B747-400s and two B747-200s. The B747-8Fs, introduced in 2013, are the most fuel efficient aircraft in the fleet.

How is Saudia Cargo gearing up for future growth in the region? Although the GCC region is very important to us, it represents just a proportion of our activity. We are essentially a global player bridging different continents and the Middle East is a crucial part of that. In addition to operating our 15-strong fleet, we also sell the belly capacity on 145 passenger aircraft for Saudi Arabia’s flag carrier Saudia, spanning a rapidly expanding global network of 225 destinations. This is a growing market and we anticipate a further increase in our belly activity, both within the GCC and beyond.

Peter Scholten

February 2014 29


COVER STORY

30 FEBRUARY 201430 FEBRUARY 2014

ما جدول أع�لكم لعام ٢٠١٤؟باإلضافة إىل كل ما حققناه يف العام املايض، نريد االستمرار يف

تحقيق معدل �و من رقم�، وزيادة فريق العمل لدينا، وتقديم منتجات جديدة. من حيث تطوير مسارات الشحن، سنطلق

عددا من الطرق الجديدة إىل الواليات املتحدة األمريكية، حيث سنذهب إىل لوس أنجلوس يف يوليو املقبل، وسنبدأ رحالت

أسبوعية ثالث مرات إىل داالس، وخدمة ثانية ملطار جون كنيدي من أول مارس .

أخربنا املزيد عن أسطولكم، العدد، القدرة، والكفاءة يف استهالك الوقود.

لدينا ٩ طائرات شحن، ندير ٦ منها بأنفسنا، ونستأجر ثالثة. لدينا ثالث طائرات طراز بوينجB٧٧٧F ، واحدة من طراز بوينج ٧٤٧-

٨F، واحدة من طراز بوينج ٧٤٧-٤٠٠ERF، واحدة من طراز بوينج ٧٤٧-٤٠٠F، وثالث طائرات إيرباص ٢٠٠F-A٣٣٠. لدينا ٢٠٠F -Aأيضا ثالث طائرات قيد التصنيع؛ اثنان إيرباص ٣٣٠وواحدة طراز بوينج ٧٧٧. متوسط عمر أسطول شحن االتحاد

للطÆان هو ٣٫٣ سنوات، و ١٫٣ سنوات لطائرات الشحن الستة اململوكة لنا. من حيث كفاءة استهالك الوقود، لدينا برنامج

طموح للحد من النفايات. Éجرد أن نستلم طائراتنا الجديدة، ونستبدل تلك املستأجرة، فإننا نتوقع الحد من االنبعاثات بنسبة

٢٠ إىل ٢٥٪. كذلك نستثمر يف مشاريع التنوع الحيوي ونخترب الوقود الحيوي .

أعطنا ملحة عامة عن أع�ل الشحن الجوي.

هناك فرص �و كبÆة يف أبوظبي يف مجال الشحن الجوي الصادر والوارد. الشحن

الجوي جزء ال يتجزأ من االتحاد للطÆان، وهي بدورها جزء ال يتجزأ من فعاليات

تطوير إمارة أبوظبي، وهناك خطة واضحة قيد التنفيذ لتنمية وتسهيل التجارة

والسياحة .بحكم موقعنا الجغرايف، نقف يف وسط ممرات تجارية رئيسية عىل كل

جانب، ولذلك اخرتنا التنافس يف بعض

إمبراطوريات الشحن اجلوي، هنا لتبقى

املمرات التجارية الكبÆة والرتكيز عىل النمو يف املمرات التجارية الضيقة. نحن عازمون أيضا عىل توسيع قاعدة شحن البضائع يف أبوظبي وتطوير مرافق الشحن الجديدة هنا يف املستقبل

القريب. نحن ضمن أرسع رشكات الطÆان �وا يف العاÜ، وننوي الحفاظ عىل ذلك.

ما التحديات التي تواجهكم حاليا؟أولويتنا األوىل كرشكة طÆان هي تقديم خدمة آمنة ومضمونة.

نحن نتمسك بجميع القواعد واللوائح ومتطلبات السالمة. عمالؤنا وزبائننا هم محط تركيزنا ونعطي األولوية إليجاد حلول مالçة أكæ لهم، فهم املؤرشات التي تقول لنا أين يجب أن ننمو

وننافس .

ما هي حصتكم يف السوق؟ ماذا عن املنافس�؟نحن ال نستهدف حصة السوق بقدر ما نبحث عن فرص النمو

والتوسع والتطوير. تشÆ إحصاءات السوق العاملية إىل أننا ضمن أكرب ١٠ أو ١٥ رشكة طÆان، لذلك ليس لدينا هدف رصيح أين نريد أن نكون ضمن هذه القاçة. نحن نتنافس عىل مستوى

عاملي، ونراقب األسواق وننافس فيها، بناء عىل احتياجات عمالئنا واألماكن التي تنمو فيها أعëلهم.

ما السوق الواعدة لكم؟الص� والهند، ثم الواليات املتحدة األمريكية وهولندا.

الخطوط الجوية السعودية للشحنبيرت شولì، نائب الرئيس التجاري، السعودية للشحن

ما وضع صناعة الشحن الجوي يف دول مجلس التعاون الخليجي اليوم؟

أعëل الشحن الجوي مزدهرة يف منطقة الخليج العرí، وهو حاليا أحد أرسع أسواق الشحن الجوي �وا.

وكيف تقارنها بأع�ل الشحن الجوي الدويل؟وفقا ألرقام منظمة النقل الجوي الدويل (إياتا)، فمن املتوقع

تحقيق معدل �و قدره ١٦٫٥٪ يف إيرادات الشحن الجوي (الصادرة) ملنطقة الرشق األوسط يف الربع الثالث من عام ٢٠١٣.

باملقارنة، توقعات �و سوق الشحن الجوي العاملية هي ٣٫٢٪ لعام ٢٠١٣.

ما التحديات التي تواجهكم حاليا؟ال òكن استÆاد البضائع الخطرة إىل السعودية بدون الحصول عىل موافقة مسبقة من السلطات. لتسهيل مثل هذا اإلجراء، أطلقنا مؤخرا خدمة OK٢GO عىل انرتنت بهدف مساعدة العمالء للحصول عىل املوافقات الالزمة الستÆاد السيارات،

البضائع الخطرة، البضائع ذات القيمة العالية، والحيوانات الحية.

ما هي حصتكم يف السوق؟ ماذا عن املنافس�؟ وما السوق الواعدة لكم؟

اململكة العربية السعودية هي أكرب اقتصاد يف دول مجلس التعاون الخليجي، وألننا الناقل الوطني يف اململكة فبطبيعة

الحال لدينا حصة كبÆة من السوق. منافسونا هم رشكات الطÆان الكربى األخرى يف املنطقة. أسواقنا الواعدة تختلف من منطقة

إىل أخرى اعتëدا عىل الفرص التجارية.

ما الطرازات العاملة يف أسطول السعودية للشحن؟ ما األك» كفاءة يف استهالك الوقود منها؟

، MDلدينا أسطول مكون من ١٥ طائرة شحن، ٤ من طراز١١٢ طراز٨F-B٧٤٧ ، ٧ طرازB٧٤٧-٤٠٠، ٢ طرازB٧٤٧-٢٠٠. طراز ٨F-B٧٤٧ املعلن عنه يف عام ٢٠١٣ هو األكæ كفاءة يف استهالك

الوقود.

كيف تستعد السعودية للشحن للنمو يف املستقبل؟رغم أهمية دول مجلس التعاون الخليجي إال أنها úثل نسبة من

نشاطنا. نحن العب عاملي نربط قارات مختلفة معا، والرشق األوسط جزء مهم من ذلك. باإلضافة إىل أسطولنا للشحن املكون من ١٥ طائرة، لدينا ١٤٥ طائرة ركاب òكن الشحن عليها أيضا،

ولدينا شبكة عاملية متنامية تصل إىل ٢٢٥ وجهة.

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FEBRUARY 2014 31FEBRUARY 2014 31

إمبراطوريات الشحن اجلوي، هنا لتبقىالقول بأن الرشق األوسط يضع معاي� عالية جدا لعمليات الشحن الجوي سيكون تقليال من شأنه، ذلك أن رشكات الشحن الجوي العاملة يف املنطقة راسخة ماليا، تعمل عىل مسارات تجارية متصلة جيدا، ولديها رؤية مستقبلية عظيمة. تحدث منور رشيف إىل

كبار رشكات الشحن: ط�ان اإلمارات، االتحاد للط�ان، السعودية للشحن، الخطوط الجوية القطرية للشحن و كا£ باسيفيك.

ط�ان اإلماراتبراديب كومار، نائب أول رئيس قسم تحس� عوائد الشحن

واألنظمة، ط�ان اإلمارات

كيف كانت األع¯ل يف العام املايض؟منذ ٢٠١١ وسوق الشحن الجوي راكدة بسبب االنك�ش

االقتصادي العاملي. من املعلوم أنه إذا كان االقتصاد العاملي ينمو بنسبة ٢٪، فستنمو سوق البضائع بالضعف أو ٤٪. أزمة الدين يف أوروبا أدت النخفاض كب� يف وارداتها، وألن آسيا هي مصنع

العا³ وأك² الشحنات تنبع منها، فح� توقفت صادراتها تبعا لذلك، تأثرت جميع رشكات الط�ان .بداية من منتصف ٢٠١٣

ودالئل التحسن املعتدل تظهر واضحة. نحن سعداء جدا يف ط�ان اإلمارات بأدائنا منذ منتصف العام املايض. باإلضافة إىل

ذلك، انضمت ألسطولنا طائرتا شحن جديدتان ( ليصل اإلج�يل إىل ١٤ طائرة شحن) ونتطلع إىل عام أفضل.

أخربنا املزيد عن أسطولكم، العدد، القدرة، والكفاءة يف استهالك الوقود.

لدينا عرش طائرات شحن ذات بدن عريض طراز بوينج ٧٧٧، ونستأجر طائرÉ شحن ٧٤٧-٤٠٠، وستنضم إلينا طائرتا شحن

بوينج ٧٧٧ هذا العام . عمر األسطول ليس

بطويل، فلقد اشرتينا ستا إىل سبعة من طائراتنا منذ ما يزيد قليال عن عام�. من حيث الكفاءة يف استهالك الوقود، الجيل

الجديد من طراز ٧٧٧ فعال جدا.

ما جدول أع¯لكم يف عام ٢٠١٤؟نستثمر حاليا يف أسطولنا لنقل كال من البضائع والركاب،

ونستثمر كذلك يف األصول ونبحث يف زيادة قدراتنا. اليوم نتعامل مع أك² من ١٠ آالف شحنة يف يوم واحد وهي نسبة كب�ة للغاية، ورغم ذلك نسبة فشل خدمتنا أقل من ٠٫٠١٪

وهذا مصدر قوتنا. أهم عنرص يف جدول أع�لنا هو نقل كامل عمليات أسطول الشحن إىل دÙ ورلد سنرتال بداية من أول مايو

.٢٠١٤

أعطنا نظرة موجزة ألع¯ل الشحن يف دول مجلس التعاون الخليجي و منطقة الرشق األوسط.

تعمل الحكومات يف منطقة الرشق األوسط عىل خلق فرص للتجارة والتنمية لتوسيع اقتصادها بدال من االستمرار يف االعت�د

عىل النفط، وذلك يدفع مؤرش ثقة املستهلك لالرتفاع. نعمل يف ط�ان االمارات عىل االستفادة من موقعنا الجغرايف املركزي

والذي يساعدنا عىل النمو خارج املنطقة، ك� أن دÙ هي بوابة

دول افريقيا واألسواق الناشئة املحيطة بها. أضف إىل ذلك امليناء البحري واملطار الجوي املتصل� معا بشكل ممتاز م� يعطينا

دفعة قوية لتعزيز شبكتنا للتوزيع والتوصيل.

ما التحديات الراهنة التي تواجهكم؟أسعار النفط يف مستويات غ� مستدامة، م� سيؤدي إىل

التضخم يف بعض البلدان. التحدي اآلخر الكب� هو العملة والتي تلعب دورا كب�ا يف تدفق البضائع وحركة مرورها.

ما السوق الواعدة لكم؟أفريقيا.

االتحاد للط�انديفيد ك�، نائب رئيس قسم الشحن، االتحاد للط�ان

أعطنا ملحة عامة عن أع¯ل الشحن الجوي.حققنا äوا قدره ٣٢٪ يف حجم األع�ل، ما جعل ٢٠١٣ عاما

قياسيا لنا، حيث åكنا من توسيع حجم شبكتنا إىل حد كب�، وتحس� القدرة، وتحس� السعة، وإضافة منتجات جديدة،

وإقامة عالقات عمل ناجحة مع العمالء، وتحقيق نتائج مث�ة لإلعجاب.

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February 2014 33

All set for

2020and beyond

Dubai Airports have ensured their capability of handling the size of the city’s future as it grows everyday into the ever important hub of connectivity. Ali Angizeh, Vice President Cargo and Logistics, Dubai Airports outlines the growth chart to Munawar Shariff

Dubai airports

33-37_DUbai Airport.indd 33 2/1/14 12:16:10 PM

Dubai airports

34 February 2014

What were the learning processes that Dubai Airports undertook in order to be what it is today in terms of a hub for all cargo activity? What is the future outlook to meet projected growth estimates?In July 2011, Dubai Airports announced its US$7.8 billion Strategic Plan 2020, which among other mega projects, includes plans for a major modernisation and expansion programme for Dubai International’s cargo facilities that will see cargo capacity increased from 2.5 million tonnes annually to 3.1 million tonnes by 2018. The project includes the construction of a new transshipment facility with capacity for 400,000 tonnes of freight a year for freight transferred between Dubai International and DWC, a 30,000-square-metre addition to Dubai International’s 1.2-million-tonne Cargo Mega Terminal – increasing the CMT’s capacity by 25 per cent, as well as a full reconstruction of the airport’s original freight facilities Hall A and Freight Gate 1. Together these facilities will be dedicated for the sole use of Emirates airline.

The new infrastructure responds to growing volumes of freight being transported through Dubai. Total

achieved an unparalleled position among global hubs.

What have been operational challenges in this initial stage?Every challenge we come across we like to see it as an opportunity to improve our processes and services. For example, one of the challenges we faced was establishing a link for the freight coming in from daily flights that needed to be moved from DWC to the ports. We had to find a location where all the trucks could be accepted from DWC. This location was called the East Cross Dock. The Dubai Economic Department as well

annual cargo volumes across both airports are projected to surge from the estimated 2.5 million tonnes recorded last year to 4.4 million tonnes by 2020. While the greater flexibility at Dubai World Central is attracting an increasing number of dedicated cargo operators, Dubai International will remain an important cargo hub with growth in belly cargo driven by Emirates airline’s ongoing network expansion.

How is Al Maktoum International at Dubai World Central adding value to air cargo companies, operators, airlines, charters?Al Maktoum International at Dubai World Central is the only international hub in the world that is connected to a major seaport, the Jebel Ali Port, as well as the Jebel Ali Free Zone, via a bonded logistics corridor. This connectivity makes movement of sea-air freight simpler, faster and more efficient than ever before – a major benefit for cargo operators. As the hub expands to its full capacity of 12 million tonnes per annum over the next few years, with the Aerotropolis of six clustered zones around it kicking into full operation, the scale and scope of freight and logistics operations at DWC will have

Ali Angizeh, Vice President Cargo and Logistics, Dubai Airports


Dubai airports

Dubai International handled 223,195 tonnes of cargo in November, •an increase of 11.6 per cent compared to 200,060 tonnes recorded during November 2012. The year to date freight volume reached 2,217,429 tonnes compared to 2,077,676 tonnes handled during the corresponding period last year, an increase of 6.7 per cent.Total freight volumes for 2012 reached 2,279,624 tonnes, an •increase of 3.9 per cent from 2,194,264 tonnes recorded in 2011.According to Airport Council International’s (ACI) latest figures the •Dubai International ranks third worldwide in terms of international freight traffic.Dubai Airports launched cargo operations at Al Maktoum •International on June 27, 2010 as part of the first phase of the project. The airport has a total of 36 freight operators (scheduled and chartered) signed up and operating.Emirates SkyCargo has confirmed that all dedicated freight flights •will be operated from its new base at DWC when it opens in May 2014 while Air France-KLM will relocate its regional hub to the airport from August this year.Freight volumes totalled 146,181 tonnes in the first nine months of •2013, down 11.3 per cent from 164,757 tonnes recorded in the same period in 2012. For the third quarter volumes came in at 43,252 tonnes, down 26 per cent from 58,423 tonnes handled during the same period in 2012. The fall comes as freight volumes stabilise after the rapid growth in the first few years of cargo operations at the airport. DWC opened for freight operations in June 2010.DWC handled 219,092 tonnes of air freight during 2012 – its •second full calendar year of operations, an increase of 144 per cent over 89,729 tonnes recorded in 2011.During the first three quarters of the year aircraft movements rose •46.3 per cent to 16,923, up from 11,571 movements during the same period in 2012. For the third quarter of 2013 air movements rose 63 per cent to 6,686, up from 4,097 in the third quarter of 2012 due to a surge in general aviation and training flights.Upon completion, DWC will become the world’s largest airport with •an ultimate capacity of 160 million passengers and 12 million tonnes of cargo per annum. The airport forms the heart of a greater project also called Dubai World Central, a 140 sq kilimetre multiphase development of six clustered zones that includes the Dubai Logistics City (DLC), Commercial City, Residential City, Aviation City and the Golf City. The development is the region’s first integrated, multi-modal transportation platform connecting air, sea, and land.Phase 1 of DWC includes a single A380 compatible runway; a •passenger terminal with capacity of five million passengers per annum (expandable to seven mppa); a cargo terminal building with a capacity of 250,000 tonnes per annum (expandable to 600,000) and a 92-metre air traffic control tower.DWC will have a final cargo capacity of 12 million tonnes per annum •(compared to Dubai’s 2012 traffic volume of 2.27 million tonnes.Located in the vicinity of the Jebel Ali Port and Free Zone, DWC will •make air-sea connectivity achievable in four hours.DWC is designed to support aviation, tourism, and logistics well into •the future.Costs for the entire DWC development (including all clusters) has •been estimated in excess of US$ 32 billion (approx. AED 120 billion).

as the RTA collaborated with us to come up with a direct route for the trucks. Through this route the trucks completed the journey within 45 minutes which would take them between four and five hours earlier. This was done after a lot of feedback from our customers of the long delays. We also eliminated the need for these trucks to go through customs more than once.

How many air cargo companies are operational out of Al Maktoum International? How many do you foresee signing up in the near future? What are the benefits being offered to companies to be based out of Al Maktoum?As of the moment, there are over 30 cargo operators that use Al Maktoum International, as forecasted we are expecting all the cargo schedule operators to relocate from DXB to DWC by end of March this year.

DWC published charges are 10 per cent cheaper when compared to DXB, in addition to that we have offered parking incentive to airlines looking for longer ground time at the airport. Airlines that started operations at DWC from day 1 (starting from the inauguration of the airport which

is 27th of June 2010) were offered additional value besides the rebate on aeronautical charges.

What are benchmarks you are setting up for airports worldwide when it comes to the top air cargo priorities – modernising processes, securing the supply chain, ensuring regulations are followed and environmental sustainability?We are being benchmarked by many airports around the globe. We will be doing a lot of benchmarking with peer hubs such as those in Hong Kong, Singapore, Korea and North America to ensure we stay abreast of technological trends and breakthroughs in the industry. As for the securing of the entire supply chain we are now engaged in a IATA backed programme – Secure Freight, which enables us to have unilateral or multilateral agreements with countries to ensure cargo movements are seamless. The other programme we are working on is the e-Freight and EAWB to make sure that we move to the next level of air cargo. This is an initiative that is utilised by Emirates, but we are working to have other airlines engaged.

February 2014 35


36 February 2014

What the customers have to say

HellMAnn CAlIper

When was Hellmann Caliper’s DWC facility set up? When did construction begin? How big is it?Our building was constructed in 2009. We converted it from a general waregouse to a pharmaceutical warehouse. The size of our plot is 10,000 sq feet of which we can build 52 per cent. We’ve just acquired the neighnbouring plot of the same size and the new expansion will be ready by March this year. We started with nine and a half thousand pallet positions and I can safely say that we will be full before the facility is open.

Why was DWC the chosen location?It was the long term vision of the Dubai government which got

Inl logIStICS

When was Inl’s DWC facility set up? When did construction begin? How big is it?We have a 90,000 sq metre plot and our facility is built up over 45,000 sq metres. Construction began in 2007 and 2013 was our first year of commercial operation.

Our facility is unique in its design and requirements which meant that DWC gave us all the flexibility to build as per our needs. We have a state-of-the-art DUNBAR crane system which is unique in its height and size. Very few places in Dubai could offer us the ability to construct it.

Why was DWC the chosen location? What were the deciding factors? Why not any other free zone in the UAe?

We offer food service solutions with 42,000 fully automated pallet positions that offer a range of frozen temperatures. Since we’re a 3PL we clear and handle our customers’ material from the port and then store for them and either we deliver to market or they do a bulk hold of say 10,000 pallet positions where 5,000 are used for distribution in the local market and the rest in the GCC. So location is integral to our business we have the airport, the sea port, Dubai and Abu Dhabi within our reach.

list the facilities provided by DWC.It was a strategic business decision to be here one of the bigger airports of the region. Operationally, getting stock in and out of DWC is very efficient, customs procedures are simple, documentation and website

Hellman Caliper to invest in their potential. We did not want to give up the opportunity of being in the closest vicinity of this hub. It has immense potential which is visible today and we were wise to make that decision.

Cost-wise DWC was cheaper then and remains to be so today. Other than that we have the flexibility of doing business as per our convenience. The officials have given us the freedom to learn as we go on a day to day basis. We have a very collaborative relationship with the DWC officials, they are extremely approachable, hands on and learning with us. They truly want to make this a success for us - their customers. With this kind of service and flexibility, why would we be anywhere else?Eric Ten-Kate, General Manager, Healthcare,

Hellmann Caliper


Dubai airports

February 2014 37

pAnAlpInA

When was panalpina’s DWC facility set up? When did construction begin? How big is it?When the initial plans for DWC were announced we decided to build our area distribution hub. We fully support the vision behind the mega project to combine one of the world’s’ largest ports with one of the world’s largest future airports in a free zone environment. Panalpina was one of the pioneers at DWC with our facility 500 metres from the main cargo terminal. The contraction began in 2008 and we officially moved in as of March 2010 and our freighters (own controlled network) were among the first freighters to land at DWC with the new B747-400. This has enabled us to deliver state of the art hub solutions linking major trade lanes via DXB such as sea-air, consolidation and distribution services to the UAE, ME, Africa and CIS.

Why was DWC the chosen location?We established our presence in the Middle East in 1990. We operate in seven regional locations - UAE, Saudi Arabia, Bahrain, Iraq, Turkey, Qatar, Kuwait. The exponential growth of the Middle Eastern carriers offered a platform and access to a consumer market of four billion people within a seven hour flight time at a maximum. The setup of our head office here reflects the strategic importance of the Middle East for Panalpina.

We also have an full-fledged airfreight office at DAFZA and at Sharjah airport as well.

How is doing business with DWC officials? What cost advantages does DWC offer as compared to Jafza or any other free zone?The DWC management has been instrumental in helping us with the initial set up and continue to do so today. The open door policy provides us with a

direct access to the management and full understanding of our business needs. The decision to have the facility in DWC is more strategic due to the proximity of the airport and the space to develop not due to the costs involved at other locations.

list the facilities provided by DWC.A master plan divides DWC into eight districts: Al Maktoum International Airport, logistics, aviation, humanitarian, residential, commercial, leisure, exhibition and commercial. Al Maktoum International Airport is the centerpiece of this master plan. The industry-focused districts as well as JAFZA are located in close proximity to the airport which benefit from efficiency and cost savings. The increased number of commercial and charter airlines now operating has a positive overspill on the cargo we now route through DWC with more and more options from all corners of the world.

list the facilities provided by DWC.DWC officials have regular meetings with us where in they want to show us their progress and to know from us what the status of business is today and what are the plans for the future. There is a regular system of compliance where in we are audited for operational procedures, HSE (Health, Safety and Environment) officials regularly liase with us on all the processes, it is a very systematic and organised set up. Other freezones, such as JAFZA are established entities with their own set of rules and regulations, because of the big pharmaceutical clients that have signed up with us DWC has given us the lee-way to do our custom paperwork out of JAFZA and not have to do that again here at DWC, making it a faster process to get our products out to our customers. This is just one example.

is very clear, the access gates are plenty. DWC’s operational blueprint has been communicated to all its customers coming in very directly.

It was cost-effective then and remains to be so. The officials are very engaged with the customer.

What we would like to see in the future is a link with rail both passenger and cargo. There is still some sewage connection which needs to be completed as well as storm water system isn’t complete, but that must be on the radar and will be finished soon. As it gets more busy there will be other challenges which will appear.

We’ve shared very good relations with the DWC officials as we have gone through the learning curve with them being the biggest stakeholders till date until Emirates Sky Cargo comes in.

Slavey Djahov, Regional Head of Airfreight, Middle East, Africa and CIS (MEAC)


استعداد تام لعام 2020 وما بعدهتنمو مطارات ديب وتتطور بشكل يومي لتكون نقطة اتصال حيوية للرحالت الجوية العاملية، وهي بذلك تضمن قدرتها

عىل التعامل بكفاءة مع النمو املستقبيل لديب. يف مقابلة معه، تحدث عيل انكيزة، نائب الرئيس للشحن والخدمات اللوجستية يف مطارات ديب، مع منور رشيف عن أهم مالمح هذا النمو والتطور.

س: ما العمليات التي نفذتها مطارات ديب لتكون اليوم مركزا

عامليا لكافة أنشطة شحن البضائع؟ وما هي التوقعات لتلبية

متطلبات النمو املستقبيل؟

يف يوليو 2011، أعلنت مؤسسة مطارات ديب عن خطتها

االسرتاتيجية لعام 2020 بقيمة إجاملية 7.8 مليار دوالر أمرييك،

والتي تضم برنامجا لتطوير وتوسعة مرافق شحن البضائع يف

مطار ديب لزيادة طاقة الشحن من 2.5 مليون طن سنويا إىل 3.1

مليون طن بحلول عام 2018. كام يشمل املرشوع بناء مرفق

جديد للشحن العابر سعته 400 ألف طن سنويا لنقل البضائع

بني مطار ديب و ورلد سنرتال، وإضافة 30 ألف م2 لصالة شحن

البضائع يف مطار ديب والتي تبلغ قدرتها 1.2 مليون طن بضائع،

وإعادة بناء مرافق الشحن األصلية يف املطار والتي ستكون

مخصصة الستعامل طريان اإلمارات فقط.

البنية التحتية الجديدة تأيت استجابة لتزايد البضائع املنقولة

عرب ديب. من املتوقع زيادة إجاميل حجم البضائع املشحونة عرب

املطارين سنويا من 2.5 مليون طن يف 2013 إىل 4.4 مليون طن

يف عام 2020. تجذب املرونة الكبرية يف ديب ورلد سنرتال عددا

متزايدا من مشغيل خدمات الشحن، إال أن مطار ديب يبقى

محورا هاما لنقل البضائع بفضل توسع طريان اإلمارات املستمر.

س: كيف يضيف مطار آل مكتوم الدويل يف ديب ورلد سنرتال

القيمة إىل رشكات الشحن الجوي ورشكات الطريان؟

مطار آل مكتوم الدويل هو املحور الوحيد عامليا املوصول مبيناء

بحري رئييس )ميناء جبل عيل( ومبنطقة حرة )منطقة جبل

عيل( عرب ممرات للخدمات اللوجستية متصلة معا. هذا الربط

يجعل الشحن البحر-جو أبسط وأرسع وأكرث كفاءة من قبل،

ويوفر فائدة كبرية لرشكات شحن البضائع. مع توسع املركز ليبلغ

كامل طاقته )12 مليون طن سنويا( عىل مدى السنوات املقبلة،

ومع توفر 6 تجمعات عمرانية محيطة آخذة يف النمو والتوسع،

سيحقق حجم عمليات الشحن والخدمات اللوجستية يف ديب

ورلد سنرتال مكانة ال مثيل لها عامليا.

س: ما التحديات التشغيلية التي واجهتكم يف هذه املرحلة

األولية؟

ننظر إىل كل تحٍد صادفنا عىل أنه فرصة لتحسني العمليات

والخدمات التي نقدمها. إحدى التحديات التي واجهتنا كانت إنشاء

ممر للشحنات القادمة يوميا وتحتاج لنقلها من ديب ورلد سنرتال إىل

املوانئ. كان علينا العثور عىل موقع يسمح مبرور جميع الشاحنات،

وتعاونت معنا دائرة التنمية االقتصادية يف ديب وهيئة الطرق

واملواصالت من أجل توفري طريق مبارش للشاحنات. باستخدام هذا

املمر املبارش، ميكن للشاحنات إنهاء رحلتها خالل 45 دقيقة فقط.

سابقا، هذه الرحلة كانت تستغرق 4 إىل 5 ساعات. كذلك قضينا عىل

حاجة هذه الشاحنات للمرور عرب الجامرك أكرث من مرة.

س: كم رشكة شحن جوي تعمل يف مطار آل مكتوم الدويل؟ وكم

رشكة تتوقع لها االنتقال للعمل فيه قريبا؟ وما الفوائد املقدمة

للرشكات للعمل فيه؟

حاليا لدينا أكرث من 30 رشكة شحن بضائع تستخدم مطار آل

مكتوم، ونتوقع – وفقا للجدول الزمني املعلن - انتقال جميع

رشكات شحن البضائع من مطار ديب إىل آل مكتوم بنهاية مارس

الجاري. رسوم العمل يف مطار آل مكتوم أقل بـ 10% من مثيلتها

يف مطار ديب، باإلضافة لحوافز التخزين لرشكات الطريان التي

تحتاج لقضاء وقت عىل األرض يف املطار. كام تحصل رشكات

الطريان التي بدأت عملياتها يف ديب ورلد سنرتال من أول يوم

)عند افتتاح املطار يف 27 يونيو 2010 ( عىل قيمة إضافية إىل

جانب رسوم طريان مخفضة.

س: ما هي املعايري التي تضعوها للمطارات األخرى عندما

يتعلق األمر بأولويات الشحن الجوي، عمليات التطوير، تأمني

سالسل التوريد، ضامن اتباع اللوائح واالستدامة البيئية؟

تنظر املطارات العاملية إلينا وتقيم خطواتنا وإجراءاتنا، كام نفعل

اليشء ذاته مع املطارات األخرى مثل تلك يف هونج كونج وسنغافورة

وكوريا وأمريكا الشاملية للتأكد من أننا نواكب أحدث االتجاهات

وآخر التقنيات يف هذه الصناعة. بخصوص تأمني سالسل التوريد

فنحن نتعاون حاليا مع منظمة النقل الجوي الدويل )اإلياتا( يف

برنامجها الشحن اآلمن، مام ميكننا من الحصول عىل اتفاقيات فردية

ومتعددة مع دول العامل لضامن تحركات البضائع بسالسة. كام نعمل

أيضا عىل برنامج الشحن االلكرتوين وهي مبادرة تستخدمها طريان

اإلمارات، و نعمل حاليا لتوفريها لرشكات الطريان األخرى.

33-37_DUbai Airport.indd 38 2/2/14 12:36 PM

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Untitled-2 1 1/30/14 4:35 PM

40 February 2014

Southern Oman will provide many more inter-modal options for customers, at different speeds and different transport rates.

How mature are supply chains here? What is lacking? What can be learnt from local businesses?The UAE is not far behind the ‘best of the best’. It simply needs to go the next step, beyond its current focus on ‘operations’ to one of ‘customer integration’. By that I mean, future supply chains should be designed from the ‘outside-in’, rather than the current ‘inside-out’. This requires much more effort in segmenting markets and using the resultant interpretation of ‘customer preferences’ to inform the design of the supply chain footprint. For this to be achieved, leading 3PLs in the region have to lead the way, and discard their low cost/efficiency/lowest rate philosophy of the last few decades.

What are the main components of a successful supply chain operation?You have to start with a new concept or ‘theory of the firm’, going from the top down, rather than simply trying to improve operations, from the bottom up. There is a finite limit to the latter approach. 3PLs and corporates have to recognise what they are dealing with here, i.e. logistics networks and their wider supply chain networks of which they are a part, taken in aggregate, are in effect the essence of business itself, not some appendage or neutral facilitator. Start with a deep understanding of customers, segment along buying behaviour lines and let this inform as you reverse engineer back inside the firm, e.g., processes, organisation design, technology, etc. What is currently missing is such a scheme, which is the exact same thing I’ve been working on for the last 25 years. I call my model, dynamic alignment. Several global FMCG, EHT and industrial companies are applying this model with significant operational and financial success.

How does the logistics and supply chain industry here in the Middle East compare to international businesses?I think that logistics/supply chain ideas and practices in the UAE are generally behind those observed in the Nordic countries, the UK and parts of Asia Pacific and the US. This is so because change comes

ean and green?“Supply Chains run through enterprises and the economy like the central nervous system in the human body.” John Gattorna gives valuable insights into making yours successful

very slowly to countries with long traditions. However, that said, the country’s government and companies throughout the UAE are moving quickly to close any discernible gaps.

In the wider Middle East what with Dubai having its air-based strategy; Oman with its ports and rail strategies and Abu Dhabi and Qatar, with their development plans, are all moving in the right direction. But in all cases it is more ‘logistics’ rather than the more enlightened view of ‘supply chain/value networks’. The latter involves a much deeper integration of customers and suppliers, and their respective expectations, as distinct from pure ‘operations’ so evident in the logistics model.

What is your take on the modus operandi of governments in this region to put the respective countries’ on the global logistics map?As implied in my previous response, governments are doing a lot to put their countries and the region on the map, and there are likely to be some clear shifts in influence over the next decade as these plans are realised. Afterall, there is a huge market to be served within a 1,000 kilometres radius. For example, the East Coast ports of Oman are likely to become much bigger hubs for destinations in East Africa and Yemen and Saudi Arabia. Similarly, for trade with India. In particular, Port of Salalah is well placed, just off the main East-West trade-lanes, as history repeats itself.

In conjunction with this port development, new rail infrastructure projects from Kuwait through to

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GUEST COLUMN

February 2014 41

What modern techniques can help in resolving supply chain complexities? How can disruptions be managed?Complexity is the big enemy of our time, and the paradox is that the conventional wisdom being applied in many companies is making things worse. Blind application of ‘common processes’, ERP systems, lean principles, six sigma, market research surveys (especially NPS) etc., just makes things worse, because they are largely guesswork. The only way to systematically reduce complexity is to start from the outside, reinterpret the market, use common metrics, understand exactly where the mis-alignments are and focus on these as a matter of priority.

6. How can sustainability be incorporated in today’s operations?Once we get away from a ‘one-size-fits-all’ mindset, and embrace a multiple supply chain mindset, it becomes very clear exactly where and how to implement ‘sustainability’ initiatives, e.g., where relationships are important to customers, sustainable operations are required, and customers are prepared to pay any premiums necessary. In straight ‘transactional’ operations where customers are looking for lowest cost every time, sustainability is a bit more tricky. And in supply chains where there is a sudden unplanned interruption, we are looking for a fast recovery, so sustainability is not necessarily top of mind, e.g., in an earthquake or tsunami.

What is more efficient the 3PL or the 4PL?It all depends on scale, and how far you can drive unit costs down the ‘experience curve’. 3PLs can aggregate volume to a certain extent, and this is reflected in their rate structure. But shippers don’t always get much of a share of these economies for the business they tip into the pool.

The idea of a 4PL is to aggregate the volume from the combined business of three or four equity partners, build a ‘control tower’, and then closely manage selected 3PLS, benefiting from the economies of scale while using the 3PLs’ assets to do all the hard work. But the theory seldom becomes a reality, mostly because of the design of the 4PLs. For example, if you design a 4PL and tie all parties together in a contractual (rather than consortium) sense, what you have in effect is a ‘super’ 3PL. And the scenario that ensues is just more of the same. We have seen examples of this in the UAE Oil and Gas industry. Companies have not been prepared to ‘fully innovate’, and yet that is exactly what the UAE

needs to do to close perceived gaps in performance, and go to the next level on the performance curve.

How much of a contribution does training, academia and intellect provide in the foresight and design of effective supply chain operations?Academia has an important contribution to make, but teachers must foster research among students and keep up-to-date syllabi. Even then, their disadvantage is that teachers seldom have access

to real world cases. I think consultants have a better chance to observe what is going on first hand, and to translate the lessons learned into new and advanced practices.

All my learnings over the last 25 years have come from using companies as my laboratory, observing empirical behaviour, looking for patterns and then forming theories in reverse, from ‘practice to theory’. My latest book, Dynamic Supply Chains (FT Prentice Hall, Harlow, 2010) is a good example of this process, and my next book out in 2015 will take this process to a new level.

Are BRIC countries the future in terms of new developments in design and operations? Why?The BRIC countries will certainly be at the centre of future developments in the supply chain, but on different time-lines. For example, Brazil is struggling right now; similarly Russia; India is very slow to make decisions but its IT has progressed well ahead of its physical infrastructure. China is the opposite of India. South East Asia is very promising because countries like Singapore, Indonesia, Malaysia and Thailand are much more used to embracing innovation and the change it brings. And, of course, they are powered by growth and progressive governments, and will do well despite local political issues.

What is the future of the supply chain?In order for countries to develop rapidly in the future, they have to embrace a ‘supply chain mindset’, which means understanding that supply chains run through enterprises and the economy like the central nervous system in the human body. Everything is connected, so we are really talking about embracing the idea of networks of supply chains, and beyond that, networks of networks. A great example of this type of foresight is the 2013 agreement between Emirates and Qantas. Each now has the ability to tap into each other’s network, for mutual benefit. Learning to work this way with competitors, when it is necessary, is a sign of the future things to come, despite the efforts of competition authorities in various countries. The world will become borderless, supply chains in networks will dominate, and we are seeing the birth of a new republic; ‘the Independent Republic of the Supply Chain’.

Dr John Gattorna, Global Supply Chain ‘thought leader’, Author and Adjunct Professor, UTS (Sydney) and SP Jain Business School SIngapore, Dubai and Sydney.

A great example of this type of foresight is the 2013 agreement between Emirates and Qantas. Each now has the abil-ity to tap into each other’s network, for mutual benefit

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Freighter Fleet

42 February 2014

5.And how many of these are in the Middle East region?The A330-200F has excellent market presence in the Middle East region and has been ordered by: Etihad five on order (three in operation), Qatar Airways five on order (three in operation), Turkish Cargo five on order (five in operation), another Turkey-based carrier MNG has four on order (one in operation).

With its range capability of up to 4,000 nautical miles, the A330-200F is the ideal complement for Middle East-based airlines to their larger 100 tonne freighters. It can cover routes to Europe, Africa, India and Asia, where the large freighters cannot be filled economically or where shippers require a higher frequency of three or more flights a week.

The A330-200F is ideally suited to adapt to the changing manufacturing industry in China and Asia. So far the manufacturing centres in China have been concentrated around

What is the typical lifespan of a freighter?For a production freighter (F) the life span typically is 30 to 35 years. A converted freighter (P2F) is based on a passenger aircraft that is converted to a freighter after around 15 to 18 years of age. The life as a converted freighter typically adds another 15 to 20 years to the life of these aircraft.

2.What percentage of Airbus planes are freighters?At the end of 2013, Airbus had 1,927 widebody aircrafts (A300/A310/A330/340/380) in service. Fourteen per cent or 263 of these are freighter aircraft of the A300/A310 and A330 models.

3.Why is demand for freighters increasing steadily?With the US and Europe slowly getting out of the economic slump and the economic growth in emerging countries, the world GDP and

world trade is forecasted to double over the next 20 years. Air freight is an enabler of world trade representing one per cent in tonnage of world trade but 35 per cent in value. The Airbus Global Market Forecast predicts air freight, expressed in FTKs, to grow at 4.8 per cent over the next 20 years.

4.What is the capacity of Airbus’ largest freighter?Airbus currently offers freighter products in the mid-size freighter segment with the A330-200F and the A330P2F, the later currently under development with ST Aerospace and EFW (Airbus’s sister company).

Our largest freighter is the A330-200F with 70 tonnes of payload capability. To-date there are 25 aircraft in service with eight operators and 39 have been ordered by 10 customers. In addition there are also the venerable A300/A310Fs and P2Fs of which there were 220 aircraft in service at end of 2013.

Cargo planes are built to last. New fleets with almost zero-maintenance costs for up to a decade earn huge revenues for their operators. Andreas Hermann, Airbus’s Vice President – Head of Freighters tells Munawar Shariff more about the lifespan of a freighter plane

The Transporters

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February 2014 43

the Eastern seaboard area. We currently see the trend of these centres fragmenting into western China and other parts of Asia like Vietnam, Malaysia, Indonesia and others. While large 100 tonne freighters will continue serving the old manufacturing centres, the A330-200F with its medium capacity is ideally suited to serve the many new and smaller manufacturing centres all over Asia.

There are many more prospects for the A330-200F and we are talking to a number of interested airlines in both the Middle East and Asia region.

6.What kind of fuel economies are achieved on a freighter as compared to a modified/converted aircraft?You typically see up to a five per cent difference in fuel burn between a new production freighter and a used converted freighter of the same type. On a typical 3,000 nautical mile sector with 500 flights per year

you will see a saving of about US$720,000 in annual fuel cost for the production freighter.

You also need to consider the maintenance cost side as converted freighter aircraft are more impacted by ageing factors than new production freighters. While new freighters benefit from a ‘honeymoon period’ of low maintenance cost for the first decade, the used converted aircraft are impacted by higher maintenance cost due to the ageing effect starting at around 15 years.

7.What happens to retired freighters?Airbus has a life cycle approach from design and raw materials up to the end-of-life recycling for its products. Airbus is an eco-efficient company creating value with less environmental impact following the ISO14001 approach. It has implemented an EMS (Environmental Management System) to assure compliance of sites and organisation towards its environmental goals.

With more than 14,000 commercial aircraft to retire over the next 20 years Airbus was the first company in 2005 to pioneer the end-of life topic with a demonstrator project called PAMELA. An A300B4 underwent a full scale break up to develop methodology and handling to recycle close to 100 per cent of the aircraft. Based on this experience Airbus and Partners have set up a joint venture called TARMAC Aerosave in order to decommission, dismantle and recycle Airbus and non-Airbus aircraft, in safe and environmentally responsible conditions.

There are many more prospects for the A330-200F and we are talking to a number of interested airlines in both the Middle East and Asia region

Freighter Fleet

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January 2014 Issue 01

Picture perfectHangzhou draws hotels and hi-tech

Expo successDubai prepares for hotel boom

Flora and faunaEscape to Sir Bani Yas Island

Emirates leads Gulf carries’ orders charge

SKY-HIGHAMBITIONS +

Essential reading for hotel operators, owners, developers and investors

Top.indd 1 1/21/14 3:02 PM

Coming this marCh 2014

Top hotel.indd 60 2/1/14 2:04:37 PM

FEBRUARY 2014 45

الشاحنات اجلويةطائرات الشحن يجري تصنيعها لتدوم طويال، خاصة األساطيل الحديثة التي تتميز بتكاليف صيانة تقرتب من الصفر

يف أول عرش سنوات من الخدمة، م� يحقق عائدات ضخمة ملشغليها. نائب الرئيس – رئيس قسم الشاحنات يف رشكة إيرباص، اندرياس ه®مان، تحدث مع رشيف منور وأخربه املزيد عن العمر االفرتايض لطائرات الشحن.

ما هو العمر االفرتايض النموذجي لطائرة الشحن؟

العمر االفرتايض للطائرة املصنوعة لتكون شاحنة عادة من ٣٠

إىل ٣٥ سنة، أما طائرة الركاب املحولة إىل شاحنة بعد حوايل ١٥

إىل ١٨ سنة من الخدمة فعادة تضيف ١٥ إىل ٢٠ عاما أخرى إىل

العمر االفرتايض لها.

ما نسبة الشاحنات من إج�يل الطائرات التي تنتجها ايرباص؟

بنهاية عام ٢٠١٣ كان لدى ايرباص ١٩٢٧ طائرة ذات هيكل

عريض (A٣٠٠/A٣١٠/A٣٣٠/٣٨٠/٣٤٠ ) يف الخدمة. ١٤٪ أو ٢٦٣

.Aو٣٣٠ A٣١٠/Aمن هذه الطائرات كانت من طرازات ٣٠٠

ملاذا يتزايد الطلب عىل طائرات الشحن باستمرار؟

مع خروج الواليات املتحدة وأوروبا من الركود االقتصادي، ومع

النمو االقتصادي الذي تشهده البلدان الناشئة، فمن املتوقع

للناتج املحيل اإلجºيل العاملي والتجارة العاملية أن تتضاعف

خالل السنوات العرشين املقبلة. الشحن الجوي هو وسيلة Àك¿

التجارة العاملية ولذا تتوقع ايرباص لسوق الشحن الجوي أن

ينمو Éعدل ٤٫٨٪ عىل مدى السنوات العرشين املقبلة .

ما سعة أكرب طائرة شحن تصنعها ايرباص؟

يف قطاع املدى املتوسط من الشاحنات تقدم ايرباص طرازي

٢٠٠F-A٣٣٠ وA٣٣٠P٢F، بينº أكرب طائرة شحن لدينا هي

٢٠٠F -A٣٣٠ ذات حمولة ٧٠ طنا. حتى اآلن هناك ٢٥ طائرة

منها يف الخدمة لدى ×اÖ رشكات طÔان، باإلضافة إىل ٣٩ طلبها

١٠ من العمالء.

كم منها تخدم يف منطقة الرشق األوسط؟

لدى الطراز ٢٠٠F-A٣٣٠ سجال ناصعا، حيث طلبت طÔان

االتحاد و الخطوط الجوية القطرية خمس طائرات (ثالثة منها قيد

التصنيع) لكل منها، وطلبت خطوط الشحن الرتكية خمس طائرات

كلها قيد التصنيع، بينº طلبت رشكة تركية أخرى أربًعا واحدة

منها قيد التصنيع. مع مدى طÔان يصل إىل ٤ آالف ميل جوي،

يقف الطراز ٢٠٠F-A٣٣٠ Éثابة املكمل املثايل لرشكات الطÔان

يف منطقة الرشق األوسط التي تعتمد عىل طائرات الشحن ذات

حمولة ١٠٠ طن. äكن لهذا الطراز تغطية املسارات الجوية إىل

أوروبا وأفريقيا والهند وآسيا، حيث ال äكن شغل كل سعات تلك

الشاحنات الكبÔة، أو تحقيق الفعالية االقتصادية ح¿ يتطلب األمر

إرسال شحنات Éعدل ثالثة أو أكé مرات أسبوعيا.

ما مقدار االقتصاد يف الوقود الذي تحققه طائرة شحن مقارنة

بطائرة محولة؟

نرى عادة انخفاضا قدره ٥٪ يف استهالك الوقود ب¿ طائرة شحن

جديدة وطائرة محولة من ركاب إىل شحن من ذات الطراز. إذا

حسبنا عىل أساس مجال خدمة طوله ٣ آالف ميل جوي، مع

٥٠٠ رحلة شحن سنويا، فسرتى وفرا قدره حوايل ٧٢٠ ألف دوالر

يف تكلفة الوقود السنوية. يجب أيضا النظر إىل جانب تكاليف

الصيانة لطائرات الشحن املحولة، والتي تتأثر بشكل أكرب بعوامل

مرور الوقت عليها مقارنة بطائرات الشحن، بينº تستفيد طائرة

الشحن الجديدة من فرتة ‘شهر العسل’ أو انخفاض شديد

لتكاليف الصيانة يف أول ١٠ سنوات من تشغيلها.

ماذا يحدث لطائرات الشحن عند خروجها من الخدمة؟

رشكة ايرباص لديها برنامجها الخاص الصديق للبيئة إلعادة تدوير

مكونات طائراتها، مع تحقيق أقل أثر بيئي وفقا ملعيار آيزو

١٤٠٠١. كº لديها أيضا نظام إدارة بيئية قيد التطبيق لضºن

امتثال مواقع التصنيع بتحقيق األهداف البيئية. مع توقع خروج

أكé من ١٤ ألف طائرة تجارية للتقاعد عىل مدى السنوات

العرشين املقبلة، كانت ايرباص يف عام ٢٠٠٥ أول رشكة رائدة يف

مجال إعادة التدوير مع مرشوع حمل اسم باميال. كذلك خضع

طراز A٣٠٠B٤ إلعادة تصميم بشكل يضمن إعادة تدوير ما

يقرب من ١٠٠٪ من مكوناته. بناء عىل هذه التجربة وضعت

ايرباص مع رشكاء لها مرشوعا مشرتكا من أجل تفكيك وإعادة

تدوير طائرات ايرباص وغÔها يف ظروف آمنة ومضمونة بيئيا.

ما أكرب سوق اليرباص من حيث أساطيل الشحن؟

يف حالة طراز ٢٠٠F-A٣٣٠ فإن منطقة الرشق األوسط هي أكرب

سوق له اليوم، مع أربعة عمالء إذا اعتربت تركيا ضمن الرشق

األوسط. يستفيد املشغلون يف املنطقة (مثل الخطوط الجوية

القطرية واالتحاد للطÔان) من طراز ٢٠٠F-A٣٣٠ يف إكºل عمل

طائرات الشحن الكبÔة ذات حمولة ١٠٠ طن مثل ٧٧٧F و

٧٤٧Fs. هذا الطراز مفيد يف حالة رحالت الشحن التي ال تشغل

كل حمولة املائة طن للشاحنات الكبÔة، مº يجعل مطارات

الرشق أوسطية مراكز شحن حقيقية تخدم مناطق أوروبا

وأفريقيا وآسيا.

حدثنا عن التكنولوجيا املستخدمة يف طائرات ايرباص للشحن

وكيف تفيد رشكات الط®ان؟

يستفيد الطراز ٢٠٠F-A٣٣٠ من تقنيات حديثة كثÔة، مثل نظام

تحكم إلكرتوÖ عرب األسالك يخفض تكلفة الصيانة، بدن مصنوع

من ١٠ طن من املواد الكربونية أيضا يخفض تكاليف الصيانة،

جناح عايل الكفاءة يقلل استهالك الوقود، أنظمة تحكم جوي

متقدمة، كل هذا يضمن تشغيل عائلة طرازات A٣٣٠ لسنوات

عديدة بعد مقدم الجيل الجديد من مراقبة الحركة الجوية.

Ôكذلك يعمل برنامج الرتقيات املستمرة لدى ايرباص عىل توف

التكنولوجيا الحديثة للمشغل¿، مثل نظام الحºية من االنقالب،

األداء املالحي واالقتصاد يف استهالك الوقود وغÔه.

42-43 Freighter fleet.indd 45 2/2/14 11:34 AM

Aeros

46 February 2014

Future of air cargo?You’ve probably seen one of these at an aerospace exhibition and all indications point to it being a part of the air freight future. Munawar Shariff spoke to Igor Pasternak, CEO Aeros, about the details of this air cargo carrier

What was the need or inspiration that started off the concept of this Aeroscraft? The inspiration came after understanding the existing logistic and distributional system limitations as they exist today, and how they cannot overcome traditional transportation systems, as well as the desire for point-to-point delivery that could enable flexible routing and surpass the hub-and-spoke intermodal model for customers.

We’ve been working with the Pentagon and NASA for the past few years to develop the

Aeroscraft in order to expand military mobility and disaster relief response capabilities, as well as to achieve fuel cost savings for the U.S. taxpayer. Those are some of the needs we’re trying to address. However, the vehicle will be most transformative for commercial industries around the world when introducing new point-to-point air delivery solutions, even to areas with damaged infrastructure or those lacking it altogether.

The Aeroscraft vehicle is being developed initially for commercial clients as a flexible and efficient solution to overcome logistical and

46-51_aircargo blimp.indd 46 2/1/14 12:22:32 PM

Aeros

February 2014 47

infrastructure challenges, especially while handling over-sized cargo in a variety of usage scenarios. The vehicle will help side-step infrastructure development costs and delays for numerous projects of global economic benefit, impacting future logistics strategically. Within many industries the Aeroscraft will bring strategic competitive advantages, accelerated project milestones, or the ability to expand existing business models; it will also help balance economic development and environmental conservation.

Please give us all the details – what is it made of?The rigid internal structure is comprised of ultra-light aluminum and carbon fiber trusses that impart needed strength. The Aeroscraft’s rigid shell works in concert with an internal ballast control system (COSH) that enables vertical take-off and landing. This in turn allows for runway-independent ways of moving large project cargo.

The Aeroshell is composed of a custom made, honeycomb aluminum material

Aeros

that is light enough to fulfill all of the Aeroscraft’s functionality, while rigid enough to main the vehicle’s aerodynamic structure.

How do the materials contribute in its flight and landing?The lightweight materials impart needed strength and contribute significantly in both flight and cargo operations. The Aeroshell maintains the Aeroscraft’s shape in flight, unlike blimps that maintain their shape


Aeros

48 February 2014

through internal pressure, helping transfer the aerodynamic forces through to the rigid internal structural truss system while enabling higher speeds. The Aeroshell also helps generate aerodynamic lift in forward flight, generated from a combination of the fuselage and flight control surfaces (empennages and canards).

Replacing the more familiar landing gear found on airplanes, the Aeroscraft is equipped with landing cushions that aid the vehicle’s unique functionality. They aid landing on unimproved surfaces, even water, performing like a hovercraft during taxi by pushing air through them. In addition, the landing cushions are equipped with very powerful gripping/suction capabilities. This reversible airflow helps hold the vehicle to the ground, such as when the Aeroscraft arrives at destination for cargo offloading, allowing it to operate in heavier wind conditions.

How much is the capacity?The max payload and payload bay size vary according to the configuration. (See below for specifics on the ML866 - 66-tonne capacity and the ML868 250-tonne capacity).

What are the terrains it can land on?The Aeroscraft can land on any terrain – from unimproved surfaces to water – without the

need for extra ground support, equipment, or infrastructure. But what makes this aircraft more impressive is its ability to load and off-load cargo from a hover.

How much is its fuel consumption?Much less than other aircraft because the Aeroscraft’s helium is generating lift, not the engine. The Aeroscraft’s fuel consumption is estimated to average a third of traditional fixed wing and rotary air cargo solutions available today. It depends on which aircraft type is being compared, but the Aeroscraft is estimated to operate on a less than $0.20 per tonne/mile basis. This can be compared to a semi truck.

On a related subject, the Aeroscraft fleet will be equipped with diesel/electric power generators, which help side-step the AV gas distribution limitations, along with LCS. Vectored thrust engines rotate and allow for advanced manoeuverability, propelling the vehicle in forward flight and aiding the vehicle with any ground-based taxiing manoeuvres. When in forward flight, the Aeroscraft is controlled by the aerodynamic control surfaces (vertical stabilisers, empennages and canards); however, the low-speed-control system (LSC) aids the pilot in lower wind conditions. The LSC system acts as a rear thruster to propel the vehicle in forward flight, and permits the thrust to be

directed while in hover to help the vehicle maintain desired positioning and orientation.

How does this compare to the same distances on regular freight planes?

In comparing the Aeroscraft to other freight planes, the Aeroscraft will have a range of 6,000 nautical miles - giving it a 20 per cent longer range than the world’s newest jumbo freighter (747-8F) on the market today. The ML868 Aeroscraft will carry twice the weight and more than 40 times the volume of cargo that can be transported by the 747-8F freighter.

Why is this the future?The Aeroscraft will introduce new vertical airlift logistics through VTOL flight operations. The Aeroscraft will introduce a new paradigm in logistics and help to bridge higher capacity, lower speed sealift and lower capacity, higher speed airlift. The Aeroscraft fleet will introduce global point-to-point air cargo delivery services for oversized and overweight project cargos, as well as general cargo, with capability to deliver to virtually any topographical location in under 72 hours.

What are the current projects on which this Aeroscraft is being used?There are none yet. However, Aeros has begun production and these will take three years to produce; there are many customers who will utilise the capability. Commercial industries currently interested in utilising the Aeroscraft include: ISO intermodal containers, Wind and Energy, Construction and Engineering, Oil and Gas, Mining, Agriculture, Environmental, Disaster Relief, Aerospace, General Cargo, among others.

The Aeroscraft will introduce air cargo options for value payloads with a time of delivery and cost per tonne mile in between current airlift and sealift, while introducing new point-to-point delivery opportunities that side-step intermodal transfers and delay as well as infrastructure development costs, delivering cargo faster than is now possible by boat, rail, and truck. Aeroscraft will help address lengthened Gantt charts, modularised construction techniques, and help several industries access ‘stranded resources’ among other areas of value creation.

Inside the cockpit


Aeros

February 2014 49

How well does the Aeroscraft work in different types of climates? Are there any limitations in certain weather conditions?The Aeroscraft has been designed and built for global use in climates as varied as the Arctic to the Sahara.

Is this going to be an effective replacement for air cargo or road cargo?Yes and no. The Aeroscraft will introduce a new paradigm in logistics and help to bridge higher capacity, lower speed sealift and lower capacity, higher speed airlift. Aeroscraft won’t replace all the airplanes, helicopters, or trucks. However, it will establish an entirely new market and logistics business model.

How effective a replacement does the Aeroscraft aim to be in terms of costs?The Aeroscraft is projected to have not only have lower acquisition costs, but also lower operational fuel costs and lower sustaining costs - about one third in each category.

How much would it cost annually?For the 66-tonne vehicle (ML866) approximately US$25 million on a fleet access basis. For the 250-tonne vehicle (ML868) approximately US$55 million on a fleet access basis.

What considerations are being put in place to be ahead of the competition? Is there any?Aeros doesn’t currently have competition because there is currently no one else who has a product or a plan that calls for self-ballasting vessels that can take off vertically at max payload.

The demonstration of technological maturity now leads Aeros into fleet development for two configurations of the innovative aircraft this decade, a smaller 66-tonne capacity vehicle (ML866), and a larger 250-tonne capacity vehicle (ML868).

In terms of the material used to construct this how are they sustainable?Many of the materials used in construction

are recyclable at end of life (carbon fibre, aluminum, textiles). We don’t have current plans for integration of solar power, but this is something that is exciting and will be explored.

What are the skeptics saying?While there are fewer every day, some won’t believe it until the vehicles are in the air and in operation.

Have you received any interest from the Middle East region?Yes, we have received interest from a number of parties but we are welcome to more partnerships with the Middle East. We believe that the Aeroscraft will be perfect in solving many of the regions infrastructure and logistical limitations.

Who would fly the Aeroscraft?Flight operations will be spearheaded by ACA, a newly formed subsidiary of Aeroscraft Corporation responsible for providing ACMI or other wet leased services to customers worldwide. Aeros Cargo Airline LLC (ACA) will be the corporation’s operating subsidiary responsible for global flight operations as well as providing qualified air crews, maintenance and insurance services supporting operations. ACMI services are one of the traditional ways that leasing companies deliver a full service, operationally-focused, leasing product to its customers. As such, ACA will be a certified airline.


Aeros

50 February 2014

PAyloAd

MAX. sPEEd

cruIsE sPEEd

rAngE

AltItudE cEIlIng

cArgo dIMEnsIons

ML 86666 tons

What kind of additional training would a pilot need to fly an Aeroscraft?Additional training will be needed even for qualified pilots, and it is likely pilots will need training beyond the minimum requirements. Aeros recently signed a MOU with CAE for partnership on the comprehensive pilot training programme.

Any additional information you would like to add which would give us a complete picture?Aeros expects to soon deliver an aircraft that will carry twice the weight and 40 times the volume of cargo that can be carried by the largest fixed-wing aircraft operating in the world today. Enabled by an internal buoyancy management system, this game-changing technology will introduce new VTOL capabilities in air cargo while offering independence from significant ground support and infrastructure development. Aeros is confident that we can offer investors a rewarding opportunity to participate in our future development and growth, as we build an initial fleet and seek to employ the Aeroscraft in a fashion that could generate multiple returns for investors. As such, Aeroscraft Corporation is now speaking publicly about the private placement of securities permitted under the JOBS Act. Execution of our plans is not without risks, and our offering can only be made to accredited investors at this time.

Aeros Cargo Airline LLC (ACA) will be the corporation’s operating subsidiary responsible for global flight operations as well as providing qualified air crews, maintenance and insurance services supporting operations.

Igor Pasternak, CEO Aeros, with his dream machine


February 2014 51

IATA

Ml 868250 tons

120 knots

100 knots

5,100 nm

12,000 ft

380 ft X 74 X 45

Ml 86666 tons

120 knots

100 knots

5,100 nm

12,000 ft

220 ft X 40 X 30

Ml 86X500 tons

120 knots

100 knots

5,100 nm

12,000 ft

455 ft X 74 X 54

ML 868250 tons

ML 86X500 tons


segmentation

52 February 2014

52-59_segmentation.indd 52 2/1/14 12:24:48 PM

February 2014 53

segmentation

Supply chainsegmentationA comprehensive guide to creating value, countering the monolithic supply chain and redesigning by Tom Craig

Supply chain management is an ongoing challenge. Companies’ supply chains, no matter how defined, touch every part

of their businesses, both external and internal. They extend from suppliers’ factories to customers’ warehouses or to company shelves. As a result, they deal with demands from inside and outside the company - many of which create distracting and sometimes conflicting demands with regards to service and costs. The noise created can be situational or repetitive; it may be on topics that

have no profit or growth benefit. It can even become a cacophony, create an underlying chaos, and be marked with much fire-fighting.

For many firms, a supply chain is a supply chain, regardless of channels, customers, markets, products, regions, or other delineators. These firms view their supply chain and its infrastructure - assets, people and technology - as providing a monolithic service that is defined by costs. There is little or no differentiation as to end uses or users beyond any specificity in customers’ instructions on handling their orders and shipments. It is a


segmentation

54 February 2014

singular method with its undifferentiated customers that has much noise and that weakens overall performance results. What is SegmentationSupply chain segmentation is dividing business into discrete segments or groups based on similar characteristics. It is a superior best practice and presents a methodology to address important company issues, including: Differing markets, product portfolios, customer portfolios, inventory yield, omnichannel sales, global operations, channel partners, customer attrition, suppliers, supply chain risk.

The basics are to identify the segments; understand the supply chain services required for the segments; analyse the company’s supply chain capabilities and performance for the sectors; understand any competitor challenges; select the segments; and, implement and align the services to the respective sectors. There should be recognition of the cost to service a segment and the return to the company for each sector. Because of the importance of benefit to the company, not all subdivisions may be used, often because of size and return. This also means that segmentation, and applicable services, may exclude customers.

Tom Craig


February 2014 55

Segmenting is not about tailoring to each customer. That is unrealistic and is another version of stretching resources.

Segmentation should serve a strategic purpose. It should reflect what is important to company growth and profitability, to senior executives and, in turn, to overall supply chain performance. This approach also gains needed internal support to change operations. Sectoring the supply chain is using it in a targeted way to best support company strategy and maximise return and growth. It can also be viewed as a multi-segment supply chain programme with different services for each target sector. Segmenting can be done

for existing businesses and for new or potential business.

Companies often sell products into multiple market segments. This method stretches supply chain resources and can lessen the overall effectiveness. Supply chain segmentation is determining how to best service each sector, given the available capabilities and resources. Logistics management is taking a different analysis for segmenting and then designing and aligning the supply chain operations for each.

Segmenting presents a way to view and understand the complexity that is an integral part of supply chains. Focus is placed and resources are aligned where important. This filters much of the background noise. The need is to know where to put the emphasis and why. Each segment has and is served by the same or similar supply chain activity. Segmentation creates a hierarchy of those groupings. It can be a de facto value proposition for the sector and the

“Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

segmentation


segmentation

56 February 2014

customers in it.The project takes time; it cannot

be oversimplified. Identifying and profiling sectors, customers that belong in them, evaluating services - both provided and how good those services are, and developing targeted services is not a quick-fix effort.

This use of supply chain segmentation and the strategic view is consistent with accounting guidelines. The Financial Accounting Standards Board (FASB), in Statement of Financial Standards (SFAS) Accounting 131, defines operating segments as “Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments.”

Segmentation ApproachesThere are different approaches for supply chain segmentation. The methodology can vary depending upon the purpose. These include:

Cost-based. Some use cost-based. Costs (and profits) cannot be ignored. However cost-based analyses only do so much - and leave much unanswered. The cost approach has shortcomings in being able to truly track costs directly to key parts of the business. Estimating, allocating and assigning costs have flaws and do not adequately address critical topics. Costs also infer there is an underlying conotation of dealing with problems, not opportunities.

Value-based. This segments customers by economic value, such as total revenue which eliminates the somewhat arbitrary assigning of costs to customers and segments to determine profitability. Companies


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segmentation

58 February 2014

can develop a hypothesis - medium size companies are the best supply chain customers. The segments should be large enough to complement the strategic importance. It is not segmenting for the sake of segmenting. You are looking for characteristics in each segment. Where do customers in each segment differ from the other segments with regards to supply chain service; are there may be obvious characteristics or drivers to analyse? Some of this can be intuitive, but not all of it.

Needs-based. This matches well with supply chain management. Segmenting is done on differentiated drivers that customers have for a specific supply chain service. Customers are grouped based on a common set of needs. Internal resources, such as sales, can help with defining or validating the need, including any that are unmet, of each customer. The purpose is to match sector needs with the correct supply chain service. If the service in the sector is delivered better than the competition, then competitive advantage can be gained.

For some companies, segmenting should not be a one-cut, standalone view. A multi-step segmentation may be best to give deeper insights. This is especially true when a high degree of shared needs, complexity or uncertainty exists with the business, or when there is significant interrelationship among the company’s segments.

No matter the approach, include key customers / accounts if the segmentation is “sales” focused. Customers are often the primary way for segmentation since much emphasis is placed on them. Size of buying and long-term relationship for good size buyers can be recognised. There are exceptions depending on purpose and type of segmentation. Segmenting can be at a macro and micro level. The inability to recognise a segment can happen. Also, the analysis may have to assess existing segments and new ones the company is developing. The segments should be large enough to be relevant for matching or to tailoring services to customers’ needs.

There is a cautionary note. Segmenting can be incorrectly used. One firm used it to drive their agenda. They divided products as to manufacturing costs and sourcing costs. Based on the review, they decided to

build certain volume, low-cost products in their factories. The remaining

products were produced overseas. Everything looked good for

manufacturing. However, they did not consider

shortcomings with their supply chain operations and forecasting. The company overlooked the extended lead times and delivery dependability for the offshore items. As a result, their ability to deliver complete orders on

time was compromised and created customer service problems.

Using Segmentation resultsThe analysis has identified and given understandings of various segments. This is actionable information. The issue then is designing, aligning, and implementing programmes to serve and even exploit these sectors to the benefit of the corporation.Points for this step should include:

Prioritise segments Be specific. It is not eno ugh to say the

service for a segment is agile. Specificity results in better sector solutions for the respective customers.

Evaluate the quality of the company’s supply chain service to the key segments. The honesty can be challenging.

Implement services for each segment. Develop metrics for each segment’s

service and measure.For example, the initial analysis, in the two x two matrix, shows the results of segmenting customer orders.

This is a good way, for this company, to look at the segmentation results from a supply chain view - segment customers and their order demands broken down by order size and annual volume. More should be done. Customers in a segment do not have homogeneous orders. Not recognising this can create programmes that do not achieve the intended results for customers and for the company. Three sectors have special requirements and size. The fourth does not. Therefore three sectors will get attention and possible redesign.


segmentation

February 2014 59

Special Handling – Make New

SKUs & Small Orders

Geography/Location – For

Demanding Delivery & Store

Direct

New Approach for Positioning

Inventory – Location and In

ConclusionMany supply chains are focused on getting orders prepared and shipped. The strategic role can be lost in all the activity. Segmentation is a very effective way to understand a company’s supply chain. It can be applied for different needs. It enables firms to focus resources and attention where they can provide strategic support and create value. The analysis and operational redesign and realignment take time and effort. But it is worth it for the firm and for its customers.

Deeper analysis was done of customers in each of the three. Highlights are shown below.

The study also examined how well the firm did at meeting customer requirements and found issues. Combined with looking

business and the supply chain as more than filling a series of orders, improvements can arise, especially where there are common areas for the segments.

The supply chain and operation were redesigned. An inventory positioning change

SEGMENT – CUSTOMERS WITH SMALL ORDERS DIRECT TO STORE DELIVERY

SEGMENT – CUSTOMERS WITH MEDIUM-SIZED ORDERS THAT HAVE SPECIAL PREPARATION

SEGMENT – CUSTOMERS WITH LARGE ORDERS THAT HAVE DEMANDING DELIVERY REQUIREMENTS

was made, including select satellite facilities that were established to improve service for the three segments. Capabilities were aligned with needs. Customer service improved significantly and became a strength and value proposition.


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60 February 2014

The roadmap to e-freight

Some 50 million tonnes of cargo are transported annually. It doesn’t need

another 7,800 tonnes of paperwork to make it happen.

To ensure the success of e-freight, the Global Air Cargo Advisory Group (GACAG) - consisting of IATA, the International Air Cargo Association, the Global Shippers’ Forum, and the International Federation of Freight Forwarders Associations – developed a roadmap to 100 per cent e-freight that defined the approach, structure and targets for the e-freight programme.

The first element of the e-freight roadmap was engaging regulators and governments to ensure a legal framework that supported paperless cargo. The goal was to achieve 80

per cent network coverage by volume. As of May 1, 2013, penetration stood at 37 per cent.

The focus is on China and IndiaBoth countries have ratified Montreal Convention 1999, a key enabler of paperless transactions, but this agreement hasn’t yet been embedded in their regulatory frameworks. In China, for example, customs regulations do not recognise electronic documentation. It is a similar situation in India. The goal was to work with government and industry players to pilot e-freight in both countries by the end of 2013.

The second element of e-freight is digitising the air waybill document. At the end of 2012, the electronic air waybill (e-AWB) had achieved 7.2 per cent penetration. The aim was to achieve 20 per cent by the end of 2013 and 100 per cent penetration by the end of 2015. These are ambitious targets, but the industry has taken

E-freight will put an end to paper-based processes in air cargo

“E-freight is the single most important project in improving air cargo’s competitiveness. The roadmap provides the targets that will help us realiSe the e-freight vision.”

Des Vertannes, Global Head of Cargo, IATA

an enormous step forward with the introduction of the IATA Multilateral e-AWB Agreement.

Previously, penetration was held back by the need for individual agreements between airlines, freight forwarders, and airports. The IATA Multilateral e-AWB Agreement clears this blockage by providing a single standard agreement that airlines and freight forwarders can sign once with IATA to enter into e-AWB agreements with all parties.

With the e-AWB in place, the third element of the roadmap calls for the entire cargo pouch of documentation - up to 30 documents - to go electronic. This includes individual documents for each area of cargo, such as flowers or dangerous goods. Converting all documents to an electronic form is a huge undertaking, involving tens of thousands of freight forwarders and millions of shippers. But once e-AWBs are in universal use and the benefits of digitisation is clear, progress is expected to be swift.

Once 100 per cent e-freight has been achieved, governments and industry partners will benefit from increased levels of information, reliability and security. Freight

forwarders could get savings of around US$2 per shipment if e-freight is combined with an e-archiving system. And customer service will be transformed too. Total productivity gains for the overall document handling process once everything is implemented, including airline and ground handling activities, is estimated at 48 per cent.

Reprinted with permission from the IATA 2013 Annual Review.

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Global Supply Chain February 2014

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