Magazine of the International Federation of Freight Forwarders Associations

No. 123 | July 2018

KENYAWhere cargopicks up speed

IN TURKMENISTANFIATA asked to set upa national association

EXPERT’S ADVICEWorking Group Seaand TIA cooperate

BUILDING BRIDGESFIATA VP Nadia AbdulAziz on networking

document3164831266432773832.indd 1 29.06.2018 16:47:28

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No. 123 | July 2018 FIATA REVIEW 3

CONTENTS

Editorial5 From the President’s Desk

Exchange of Experiences6 The Sea Working Group

and TIA in a joint sessionin Alexandria, VA, USA

Country Report8 Kenya –

improving the connection betweenMombasa and Nairobi, to speed upthe flow of goods

A State Visit10 FIATA President Babar Badat

met Turkmenistan’s PresidentGurbanguly Berdimuhamedov,who wants FIATA to build up aFreight Forwarder’s associationin his country

Personally12 Meet Nadia Abdul Aziz –

Vice President of FIATA and Presi-dent of the National Association ofFreight and Logistics in the UnitedArab Emirates (NAFL)

14 Meet our new colleagueDominic Betz

Here & There / Agenda15 Happy Birthday!15 Forthcoming Events15 Masthead

FIATA SecretariatSchaffhauserstrasse 104CH-8152 Glattbrugg/SwitzerlandPhone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 65info@fiata.com, www.fiata.com

Cover:In Kenya, thetable is richlystocked with food.

Photo: iStock /master2

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Delegate Kit SponsorGala Dinner SponsorRaMe BusinessSession Sponsor

lanyard sponsor

Professional ConferenceManagement Company

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ContaCtFederation of Freight Forwarders’ associations in india311 - 313, 3rd Floor, Mahinder Chambers, Opp. Dukes Factory,w.T. Patil Marg, Chembur, Mumbai 400 071Tel: +91-22-6710 7495 / 67107496 Fax: +91-22-67107500email: info@fffai.org

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No. 123 | July 2018 FIATA REVIEW 5

FROM the pResident’s desk

stan government to establish a nationalfreight forwarding and logistics associa-tion and will gladly help to facilitate theapplication of this new association tojoin FIATA as an Association Member.

You will then find an introduction toKenya in this edition, a country thatembodies enormous passion for boost-ing economic development. The KenyanInternational Freight and WarehousingAssociation (KIFWA) has been an activeplayer in FIATA, bringing a substantialamount of Kenya freight forwarders toFIATA Headquarters Session and Con-gress every year. This effort is really goodand will help to connect the Kenyan lo-gistics and freight forwarding industryto the global market.

An interview was also conducted withnewly elected Vice President, Ms NadiaAbdul Aziz, President of the NationalAssociation of Freight and Logistics(NAFL), Dubai. I admire Nadia’s pas-sion for the freight forwarding industry.In the interview you can find Nadia’sview of the state of the industry todayand tomorrow. Coming from a countrywith leading logistics infrastructure andtechnology, her view will be interestingto learn from.

Moreover reports can be found regard-ing the Working Group Sea Transportmeeting, held in Alexandria VA, UnitedStates. My thanks to TIA for hostingthis event.

Hope you enjoy this edition.

Babar BadatPresident of FIATA

Iwas invited by the government ofTurkmenistan to attend the Inter­

national Forum on the Great Silk Roadon 2nd May, and the opening ceremonyof its new port in Turkmenbashi, onthe eastern shores of the Caspian Sea.As the FIATA President I received VIPtreatment upon arrival in Turkmen­bashi, and a bilateral meeting was ar­ranged with the President of Turkmeni­stan. His Excellency, Mr GurbangulyBerdimuhamedov, spoke about his planfor the country to revive the Great SilkRoad, and also asked if FIATA wouldhelp his country to set up a national lo­gistics and freight forwarder’s associa­tion. I confirmed with great honour thatFIATA would be happy to support thisinspiring initiative.

In my speech at the opening of the Fo-rum I mentioned that FIATA alwaysheld the belief that national govern-ments should support the importanceof transport connectivity, includingboth transport infrastructure and poli-cies. We are encouraged to note thatthe country's new port will greatly en-hance Turkmenistan’s connectivity onthe Caspian Sea with the neighbouringcountries Azerbaijan, Russia, Kazakh-stan and Iran, enhancing its linkageswith markets. FIATA also believes thata well-functioning national professionalassociation, headed by recognised indi-viduals, is essential to promote its inter-ests in national, sub-regional and inter-national meetings related to trade andtransport. In this regard, we stronglysupport the initiative of the Turkmeni-

Dear friends and colleagues,Welcome to this edition of FIATA Review.

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6 FIATA REVIEW No. 123 | June 2018

ExchangE of ExpEriEncEs

For its 2nd meeting in 2018, the FIATA Working Group Sea was hosted by Transport Intermediaries Association TIA in Alexandria, VA.

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WIll SeheSTedT oN The curreNT FMc rule-MAkING

Lively exchange platformto create new solutions

The FIATA Working Group SeaTransport, together with the Trans-

port Intermediaries Association (TIA),successfully held its second WorkingGroup Sea meeting in 2018.

The meeting was opened by theChairman, Mr Jens Roemer, Belgium.He said in his introductory message thatthe United States remain an importantplayer in international trade and also im-portant for the transport industry. Theagenda of this meeting was co-organisedby TIA, in order to better understand and

work together for the satisfaction of ourcustomers. The key aim of this meetingwas to provide a lively exchange platformfor freight forwarders, and to create anopportunity to talk about different trans-port solutions.

Mr Will Sehestedt explained that theauthorities planned to improve and ex-tend the C-TPAT programme. In 2017the FMC changed its proposal, and in-cluded burdensome licensing/financial se-curity requirements. Companies must belicensed and have adequate financial secu-

rity. There are some exceptions for agentsacting on behalf of disclosed principals.

The FMC rule-making removed therequirements for filing and publishingNSAs, and for permit NRAs to be modi-fied at any time. The FMC wanted toprovide more flexibility, in particular tosmaller NVOCCs.

In addition, the Working Group Seadiscussed the issue of demurrage and de-tention in detail and will draft some advicefor members. Also, the subject of containerpositioning and repositioning was debated;it seems that shipping lines do not improvea lot in new equipment.

Furthermore, the topic of Service Taxin India, the status of the FIATA e-FBL,as well as the application of the CTUcode were discussed.

The FIATA Working Group Sea discussed various topics during

its second meeting of 2018, which was held together with TIA.

Besides new requirements for NVOCCs, the Group will also draft

some advice for members about demurrage and detention.

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No. 123 | June 2018 FIATA REVIEW 7

ExchangE of ExpEriEncEs

The United States (Alexandria VA) were the venue of the meeting – with the significance of this trading nation once again underlined.

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COUNTRY REPORT

8 FIATA REVIEW No. 123 | July 2018

THE LEGAL FRAMEWORK FOR LOGISTICS IN KENYA IS ON THE MOVE

Progress on the speedof cargo clearing

Kenya has made significant stridesin the realm of enhancing trade

facilitation through efficient systems,to make sure that various stakeholders,both state and non-state intervenors,

are able to go about their business acti-vities smoothly.

The logistics sector has recently seen anumber of important policy framework de-cisions taken, to ensure the various players

It was just a year ago that a

standard-gauge railway con-

nection between the port of

Mombasa and an inland con-

tainer terminal in the capital

Nairobi became operational.

Now, a smart gates system as

well as workshops and train-

ing for clearing agents tend to

make cargo clearing easier.

Cargo movement between Mombasa and Nairobi now takes six instead of 15 hours.

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Kenya’s economyremains resilient due

to its diversity.Experts expect GDPto grow by around

5.5% in 2018.

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COUNTRY REPORT

No. 123 | July 2018 FIATA REVIEW 9

have it easy when it comes to cargo-clearanceprocesses. Whereas there is still a lot morethat remains to be done, the terrain today ismuch better than it was a few years ago.

The government has invested heavily inthe right infrastructure and technologies torealise its great ambitions, with the privatesector players also doing its bit, through dif-ferent sectoral formations. Customs agentsissues are championed by the Kenya Inter-national Freight and Warehousing Associ-ation (KIFWA), which is currently also goingthrough a reform phase to make it responsiveto the realities of 21st century business tenetsand align its operational model to the bestpractices and international standards.

SMART GATE SOLUTIONSJust over a year ago, Kenya launched astandard-gauge railway, with a view to

barcodes at the gates, with truck driversusing pre-printed barcodes to swipe atthe gates. The container details are en-tered online by the clearing agent, and abarcode slip is generated for every con-tainer and truck picking up cargo fromthe ICD-N.

For its part KIFWA, which recentlyheld its elections, has embarked on a capa-city-building programme through thetraining of clearing agents and staff, with aview to ensuring that the agents structuretheir operations in line with the standardsof the World Trade Organisation.

MANDATORY WORKSHOPSNewly-elected KIFWA chairman WilliamOjonyo explains that the monthly work-shops will be mandatory and there will bea minimum number of modules that anagent is required to complete in order toqualify for the clearance certificate issuedby KIFWA.

This certificate is the basis uponwhich the Kenya Revenue Authority(KRA) renews a customs agent’s licence.A number of bottlenecks still continueto hamper trade, especially from the per-spective of KRA, which is considerablyslow in its processes, due to duplicatedprotocols and unnecessary requirementsin the clearing process.

However, a more consultative ap-proach is being put in place, wherein stake-holder engagement should ultimately seethe removal of those bottlenecks, to im-prove the business environment.

easing the cost of transporting cargo fromthe port of Mombasa to the Inland Con-tainer Depot (ICD) in Nairobi, which hasseen great improvements, as the KenyaPorts Authority (KPA) bids to make cargoclearance much faster, through efficientprocesses. Cargo movement is now muchfaster on the Mombasa–Nairobi Standard-Gauge Railway (SGR), as it takes onlysix hours, compared to the more than15 hours it previously took on the road.This has not only decongested the port butsignificantly increased the number of con-tainers shifted out of the hub too.

Recently, KPA also launched a smartgates system, in a bid to ease truck con-gestion due to human intervention atthe ICD, a significant technological ad-vancement that has been hailed by allstakeholders. The new system deploys

Every clearing agent has to pass a test to qualify for a clearance certificate.

KENYA – FACTS & FIGURES

Official name Republic of Kenya

Capital Nairobi

Form of government Unitary presidential constitutional republic

Area 580,367 square kilometres

Coastline Indian Ocean 536 kilometres

Population More than 49,125,000

Ethnic groups Kikuyu, Luhya, Luo, Kalenjin, Kamba, Kisii, Meru and others

Languages English, Kiswahili

Administrative units 7 provinces and 1 area

Major trading partners Uganda, UK, EU, Tanzania, Rwanda, Burundi, Egypt, South Africa,Saudi Arabia, United Arab Emirates, USA, Japan, Pakistan and India

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10 FIATA REVIEW No. 123 | June 2018

A StAte ViSit

FIATA presIdeNT meeTs presIdeNT oF TurkmeNIsTAN

Turkmenistan’s predestinationand FIATA’s support

On invitation of the government ofTurkmenistan, FIATA President

Mr Babar Badat visited the country on2nd May for the inauguration of the Turk-menbashi port on the shores of the Cas-pian Sea, and to attend an InternationalForum on the Great Silk Road. There heheld a bilateral meeting with His Excel-lency Mr Gurbanguly Berdimuhamedov,President of Turkmenistan.

To the great honour of FIATA, MrBadat received VIP treatment from

the foreign ministry upon his arrival inTurkmenbashi. In the bilateral meetingheld between His Excellency PresidentBerdimuhamedov and Mr Badat, Presi-dent Berdimuhamedov asked if FIATAwould help his country to set up a na-tional logistics and freight forwarders as-sociation, as he was aware of the fact thatMr Badat had also played a pivotal rolein establishing a freight forwarders asso-ciation in Pakistan, namely the PakistanInternational Freight Forwarders Asso-

ciation. The FIATA President confirmedthat FIATA would be happy to work withhis government to help establish such anorganisation and also provide other sup-port if needed, such as advising on trans-port rules and regulations, vocationaltraining, and the like.

Opening a new pOrtAfter the meeting Mr Badat attended theInternational Forum on the Great SilkRoad, where he was declared the guest ofhonour and was asked to give a speech onbehalf of FIATA. In his address, Mr Badatfully recognised the efforts of the govern-ment ofTurkmenistan to enhance transportinfrastructure in the country, especially theopening of the new International port inTurkmenbashi, which he said will greatlyimprove Turkmenistan’s connectivity via

the opening of a new international port in turkmenbashi, which

took place in conjunction with an international Forum on the

great Silk road, was the background for Mr Babar Badat, Fiata

president, to meet the president of turkmenistan, His excellency

Mr gurbanguly Berdimuhamedov.

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No. 123 | June 2018 FIATA REVIEW 11

A StAte ViSit

the Caspian Sea to countries such as Azer­baijan, Russia, Kazakhstan and Iran.

“As the premier international organi­sation for the global freight forwardingand logistics industry, FIATA has alwaysbeen convinced that national govern­ments should pay attention to the keyimportance of transport connectivity,including both transport infrastructureand transport policies. Connectivity will

der the initiative of reviving the GreatSilk Road, which in its essence foreseesstrengthened economic and social coop­eration among countries along the SilkRoad, it is a great time for Turkmenistanto integrate more into the regional andglobal economy. “Our aim is to revivethis historic predestination of CentralAsia under new conditions and realities”,President Berdimuhamedov said.

Transport Ministers from Turkey,Iran, Uzbekistan, Tajikistan, Azerbaijan,Kyrgyzstan, Georgia, Russia and Afghani­stan, as well as other high­ranking digni­taries, were present for the internationalforum and opening ceremony.

Switzerland re-viSitedAs a follow­up to his visit to Turkmeni­stan on 2nd May, President Badat re­ceived a visit from Mr Atageldi Hal­janov, Ambassador for Turkmenistan inthe Swiss Confederation and PermanentRepresentative of Turkmenistan to theUN office in Geneva, on 17th May. Onthis occasion he was also interviewed byTurkmenistan’s national television stationin FIATA’s Zurich office. The interviewfocused mainly on FIATA’s view of thenewly­opened port in Turkmenbashi andon Turkmenistan’s efforts to participate inthe Great Silk Road activities.

Further discussions were held be­tween President Badat, Ambassador Hal­janov and FIATA DG Hans GüntherKersten concerning the establishment ofa national logistics and freight forwardersassociation in Turkmenistan.

increase national logistics and transportcapacity, and reduce transport costs, thusreducing the cost of trade for all stake­holders,” Mr Badat said.

Turkmenistan embodies the majorgeographical advantages entailed in bor­dering on the Caspian Sea, connectingCentral Asia, West Asia, Transcaucasiaand Russia, with a good location on theGreat Silk Road too. Especially now, un­

Shaking hands: a warm welcome for Babar Badat from Gurbanguly Berdimuhamedov.

An International Forum on the New Silk Road attracted many prominent visitors.Full attendance in Turkmenbashi.

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Personally

12 FIATA REVIEW No. 123 | July 2018

Nadia abdul aziz has beeN FiaTa vice presideNT siNce OcTOber 2017

“Thinking outside of the box”

The Emirati businesswoman gradu-ated from the American Univer-

sity in Dubai for both her BA and MBAdegrees. Nadia has also taken coursesat the University of Edinburgh and atOxford IT college in London, and hasmore than 20 years’ work experiencein the UAE, as she started working inthe family business, encouraged by herfather, prior to her graduation. Nadiahas been elected to be a board memberin the international chamber of com-merce commission, and is now the Vicepresident of the ICC customs and TradeFacilitation Commission-UAE region.She was also elected to be the President ofthe National Association of Freight andLogistics (NAFL) – UAE. Recently shewas also elected as Vice President of theExtended Board of FIATA.Nadia also believes in giving back. Sheworked for many years as the executiveboard member for the Al Noor Center forChildren with Special Needs in the UAE.This activity is very close to her heart andsoul and one of the most motivating areasfor Nadia.

If you had not joined the trans-portation business, which pro-fession would you perhaps havechosen (and why)?I would have chosen international tradeor international marketing as a field ofactivity. I have received training in thatfield and enjoyed it a lot, due to the crea-tive ideas generated, diversity at workand the international and cross-cultureexposure gained from such a job. In addi-tion to that I think I would have chosenthese fields because I like to travel, meetpeople, and engage with and understanddifferent cultures. I like to be stimulatedwith new ideas, and I enjoy thinking out-side of the box and sharing ideas.

So what fascinates you about thefreight forwarding industry?What many people do not realise is thatit’s the very backbone and base of inter-national trade. It involves travelling andhaving international contacts as well asagency agreements, which is also excel-lent, due to the fact that you interact anddeal with many diverse nationalities. As aresult, you create long-term business rela-tions built on sincere trust with personsfrom more than 150 countries. I find thata unique enriching experience. You gaindeep knowledge about many countriesand their trade and import rules, regula-tions and business activities.

And what was the motivation toaccept your post with FIATA?My motivation to accept the post withFIATA started with many board mem-

bers supporting this idea and telling me Ishould try to nominate myself. This reallygives me immense motivation and cour-age to do so. It is also rewarding becauseI can truly further represent my region interms of freight / logistics and the latestdevelopments in relation to that. Anotherreason was that it will enable me to bringinternational freight quality and train-ing standards to the UAE and the GCCregion. I will be able to further promotethe FIATA network and make positivechanges that benefit all FIATA members.I am also motivated to further engage thevarious board members and build bridgesbetween all the regions that we representand further engage our members acrossthe globe to enhance trade and logistics.

How do you view the state of theindustry today?The industry is going through a transfor-mation and is in a disruptive phase. Wewill see immense use of technology, in or-der to provide the best services to clientsinstantly. There will be IO and block-chain technology introduced, drones,unmanned cars and unmanned flyingvehicles, hyperloop to move persons andgoods. We need to be prepared and incor-porate the new technologies in what wedo in the freight industry. Innovations willtake over the traditional way of doing busi-ness as a forwarder. Air cargo will grow,due to e-commerce, and greater SMEgrowth will create increasing demand forair cargo. Through FIATA training cour-ses we can prepare the new generation tokeep up with technology and always be astep ahead, in order to lead our industryand not become obsolete.

What are the changes that youwould like to see?Honestly, I want to see more funding forSME forwarders, affordable technologyplatforms to connect and exchange data

Nadia Abdul Aziz, President of the National Association of Freight

and Logistics (NAFL) in the United Arab Emirates, is the first

Emirati woman to be elected as Vice President of the Extended

Board of FIATA. One of her aims is to bring international freight

quality and training standards to the UAE and the GCC region.

“Freight forward­ing is the back­bone and thebase of inter­national trade.”

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Personally

No. 123 | July 2018 FIATA REVIEW 13

My main advice would be start fromscratch, get training from the industryand apply for internships before youwork in this field. I highly recommendgetting training from large and reputednational organisations, or even betterfrom multinational ones, as they are ex-cellent platforms to learn from and investimmensely in interns.

What, in your opinion, has gene­rally speaking been mankind'sbest invention (and why)?The internet is one of the best inventions,as it keeps everything at your fingertips.Information, bookings, training courses,

knowledge, connecting people, familiesand much more. It saved us a lot of timeand money and simultaneously it en-riched our lives, as we can work anytimeof the day from any part of the world...mainly due to the internet.

Which famous person would youlike to have met (and why)?I would have loved to have met princessDiana. I feel she was very feminine andsmart. She did some outstanding workin terms of charity and also worked toend the deployment of landmines. I feelshe was very natural and that’s why shecaptured many people’s hearts across theworld. Even after her death, people al-ways remember her and her legacy. Shewas a great mother who raised her boysvery well and instilled the right behaviourin them, so that even after her death theyare also heavily involved in CSR workglobally and continue her legacy.

Do you have any unfulfilled wishes(professional or personal)?Yes, I do. I would love to work with orestablish my own NGO for orphans,children and women, where I would loveto empower them through education,which will enable them to stand on theirfeet respectfully.

What plans do you have for thefuture or for your retirement?I have not planned it yet. I will want toretire and then fully work in CSR pro-jects that will give inner happiness, con-tent and great motivation to me. Thefeelings associated with CSR work haveno price tag, it is highly rewarding workand makes your life feel worthwhile andgives it true meaning. I would also loveto travel and relax more with my closefriends and family.

“We need toincorporate newtechnologies.”

for forwarders, airlines, shipping linesand clients. Furthermore, we need moreyoung professionals in the freight for-warding industry. In the UAE especiallywe have a lack in this sector and I amwilling to take the challenge to really pro-mote it through FIATA training courses.I am eager to work with more studentsand get involved with schools to speakabout our industry and encourage young-sters to take it up as a professional andrewarding career.

Looking at the future, what advicewould you give a young personjoining the industry today?

Wants to encourage youngsters to start a career in our industry: Nadia Abdul Aziz.

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AFL

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Personally

A warm welcome to FIATA´S new colleague in Zurich.

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IATA

DomInIc BeTZ SuPPorTS FIATA'S SecreTArIAT In ZurIch

From Business English to real business

Dominic Betz was born on 6th De-cember 1994 and joined FIATA in

June this year. Dominic is working as atemporary employee for FIATA in Zu-rich until the end of 2018.

After compulsory school time andtwo further years at Waldorf School inZurich, he started his apprenticeshipin a telecommunications company andcompleted successfully in business andadministration after three years. Domi-nic completed also the Business EnglishExam successfully. In his spare time,

Dominic likes to travel and go for a hikein the mountains to enjoy the beauty ofthe nature. He speaks English and Ger-man fluently. Dominic thoroughly enjoys

working in the international environ-ment which FIATA offers and is lookingforward to meeting you at the FIATAWorld Congress in New Delhi.

For six months, also during the

period of the FWC 2018, the

temporary employee is on.

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No. 123 | July 2018 FIATA REVIEW 15

HERE & THERE / AGENDA

July 11–12 2018

Istanbul, Turkey

Meeting of OSJD / FIATA

September 26–29 2018

New Delhi, India

FIATA World Congress

Forthcoming EventsBi-monthly magazine of FIATA, the InternationalFederation of Freight Forwarders Associations

Circulation 6500 copies

Published by FIATA, the International Federationof Freight Forwarders Associations

Articles written by outside contributors do notnecessarily reflect the views or policies of FIATA.Intellectual property rights for contributedmaterial must be met by the contributors.

EditorFIATA, the International Federationof Freight Forwarders AssociationsSchaffhauserstrasse 104CH-8152 Glattbrugg/SwitzerlandTelephone +41 43 211 65 00Fax +41 43 211 65 65info@fiata.comwww.fiata.com

Advertising salesFIATA Secretariat, telephone +41 43 211 65 00info@fiata.com

ProductionDesign and printing:Swiss Professional Media AG, Basel

CopyrightNo article may be reproduced by any means in wholeor in part without the written permission of FIATA.

NEXT EDITION

SEPTEMBER 2018

Happy Birthday!FIATA congratulates two well-known delegates on their birthdays. We wish themmany more years of good health and happiness.

Dr Erich Mihokovic (Austria) is celebrating his 70thbirthday on 17 August 2018. He became a FIATA Dele-gate for the first time in 1983 and was FIATA SecretaryGeneral in 1993. Since 1999 he has been an HonoraryBoard Member.

Mr Babar Badat (Pakistan) is celebrating his 60th birth-day on 11 August 2018. He became a FIATA Delegatein 2002, and was a Vice President from 2007–2011,a Senior Vice President from 2011–2017, and becameFIATA President in 2017.

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save

datethe

New Delhi, iNDiaSePTeMBeR 2018

Pullman/Novotel hotel, aerocity, New Delhi, india

DeleGaTeS

1200+

COUNTRieS

150+DeleGaTeS

MiNiSTeRial DeleGaTeS

50+iNDUSTRY leaDeRS

24

SeSSiONS wiTh iNDUSTRY leaDeRS

For any query related to registration kindlyemail us at fiata2018@thekonnect.in

To register please visitwww.fiata2018.org/delegate/

in association with hosted by Official Freight Forwarder Social Media Partner

Delegate Kit SponsorGala Dinner SponsorRaMe BusinessSession Sponsor

lanyard sponsor

Professional ConferenceManagement Company

HurryNow!

ContaCtFederation of Freight Forwarders’ associations in india311 - 313, 3rd Floor, Mahinder Chambers, Opp. Dukes Factory,w.T. Patil Marg, Chembur, Mumbai 400 071Tel: +91-22-6710 7495 / 67107496 Fax: +91-22-67107500email: info@fffai.org

w w w . f i a t a 2 0 1 8 . o r g

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