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THE SOURCE FOR AIRFREIGHT LOGISTICS
                           International Edition • AirCargoWorld.com • March 2015

 CENTER
OF GRAVITY
ARE THE BIG 3 GULF CARRIERS THE NEW
 HUB OF GLOBAL FREIGHT LOGISTICS?
                p.24

                                                               CARGO SECURITY:
                                                           ARE WE SAFER NOW?
                                                                                    p.30

                                                              HIGHWAY FEVER:
                                                       AIRFREIGHT & TRUCKING
                                                                                    p.36
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Contents
                                                                                                                                                                     Volume 18 • Number 2 • March 2015

                                            CENTER
                                           OF GRAVITY
                                                  ARE THE BIG 3 GULF CARRIERS THE NEW
                                                   HUB OF GLOBAL FREIGHT LOGISTICS?
                                                                                     24
News Inside:
6 UpFront
	Virtual reality tech at DHL, petal to the metal for

                                                                                                                                                     EVER VIGILANT
  Valentine’s, drone-delivered tea in China and more

10 Asia
	A new era of bellyhold cargo begins at Taiwan’s EVA Air

14 Europe
                                                                                                                             30
                                                                                                                                                               Five years after Yemen, how pervasive are
          Who’s No. 1 in Euro-tonnage? Frankfurt or Paris?                                                                                                            advanced cargo security systems?
18 Africa & Middle East
                                                                                                                               HIGHWAY
	Kenya’s Astral Aviation prepares for a big year
  in perishables

20 Americas
          The latest expansions at Alaska’s Northern Air Cargo

Departments
                                                                                                                               FEVER
                                                                                                                               HOW AIRFREIGHT
4         Editorial
8         Cargo Chat: Hugh Flynn                                                                                               AND TRUCKING
                                                                                                                               ARE INCREASINGLY
                                                                                                                                                                                                                     36
22        People
40        Marketplace
42        Bottom Line                                                                                                          WORKING TOGETHER
44        Guest Column: Doug Brittin
45        Events / Advertiser’s Index
46        Forwarders’ Forum
Air Cargo World (USPS 364-590) (ISSN 1933-1614) is published monthly (except December and January are combined) and owned by Royal Media. Air Cargo World is located at 1080 Holcomb Bridge Rd., Suite 255, Roswell, GA
30076. Known office of publication is located at 80 Broad Street, Suite 1701, New York, NY 10004; telephone 212-564-8972. Air Cargo World is a registered trademark. Periodicals postage paid at New York, NY and at additional
mailing offices. Subscription rates: 1 year, $80; 2 year $128; outside USA surface mail/1 year $120; 2 year $216. Single copies $20. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Directory
single copies $14.95 domestic; $21.95 overseas. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written
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                                                                                                                                                                                                        ACW MARCH 2015         3
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Editor’s Note

                                                             Every link in the chain matters
                       THE SOURCE FOR AIRFREIGHT LOGISTICS      Have you seen the December issue of Inspire maga-
                     SENIOR EDITOR
                        David Harris                         zine? Let me save you the effort and urge you to avoid it
                  dharris@royalmedia.com                     altogether. Although the title sounds like something out of
                       EDITOR                                the Martha Stewart or Oprah Winfrey publishing empires,
                     Randy Woods                             Inspire is actually the official magazine of Al Qaeda.
       rwoods@aircargoworld.com • (206)-801-8478
                   ASSOCIATE EDITOR                             In Issue #13, released in December 2014, the English-
                        Linda Ball                           language propaganda screed focused on attacks on U.S.
         lball@aircargoworld.com • (206)-237-0799
                                                             airliners. One article included a “recipe” for building
               SPECIAL CORRESPONDENT
                    Martin Roebuck                           detection-proof explosives, calling them “another meal
                CONTRIBUTING EDITORS
                                                             prepared in the kitchen” that anyone can make. The arti-      Randy Woods
                 Roger Turney, Ian Putzger                   cles also discussed which seats would-be terrorists should
                       COLUMNIST                             purchase and where to place bombs strategically to inflict the most possible damage.
                       Brandon Fried                         Previous issues also provided tips on improvised bomb-making from common house-
                                                             hold objects, such as using modified pressure-cookers – the same technique used by
                        PUBLISHER                            the terrorists who struck at the 2013 Boston Marathon.
                        JJ Hornblass
                 hornblass@royalmedia.com
                                                               In the years since the 9/11 attacks, terrorist activity has declined in the aviation
                     VP OPERATIONS                           industry, thanks to increased security screening, better intelligence and closer surveil-
                      Molly Stewart
                                                             lance of known terrorist cells. But the Inspire magazine articles are a chilling remind-
                  EDITORIAL DIRECTOR
                       Phil Ryan                             er that active attempts are still being made to use the airfreight industry to carry out
                   CREATIVE DIRECTOR                         monstrous acts of terror. According to the Transportation Security Administration,
                      Alex Kwanten                           despite 13 years of ramped-up security warnings for passengers, a record-high 2,210
                 akwanten@royalmedia.com
                                                             guns – 70 percent of which were loaded – were confiscated at security checkpoints
                  ASSOCIATE DESIGNER                         across the United States in 2014. That’s a 20 percent spike over the 1,813 seized in 2013.
                     Adnan Jusupovic
                                                               Five years after the infamous 2010 Yemen bombing attempt involving the cargo
                       CIRCULATION                           holds of two airliners, our industry is still absorbing the shock waves of that wake
                circulation@royalmedia.com
                                                             up call. As we see in our security feature article on page 30, not a lot has changed
        AIR CARGO WORLD HEADQUARTERS                         technologically in the airfreight industry since 2010, but the awareness of the threat
        1080 Holcomb Bridge Rd., Roswell Summit
        Building 200, Suite 255, Roswell, GA 30076           has moved security to the top of everyone’s priority lists, from the shippers to the for-
           (770) 642-9170 • Fax: (770) 642-9982              warders to the ground handlers and airlines. When it comes to preventing terrorism,
                   WORLDWIDE SALES                           we’re only as strong as the weakest link in the supply chain.
             U.S. Sales & Emerging Markets
                       Sales Director                           Connections that have developed in recent years between forwarders and carriers
                         Tim Lord
         tlord@aircargoworld.com • +1 678 775-3565           have brought other rapid changes to the airfreight industry, notably the gradual shift
        Europe, United Kingdom, Middle East                  of logistics power away from Europe and North America and toward the Persian Gulf
                        David Collison                       region. In our cover story (page 24), we look at how the “Big 3” Gulf carriers – Emir-
       dci.collison@btinternet.com • +44 192-381-7731
                                                             ates, Qatar Airways and Etihad – have grown their market share to such a point that
           Hong Kong, Malaysia, Singapore                    their business decisions are having ripple effects throughout the industry. The recent
                        Joseph Yap
         jospeh@asianimedia.com • +65 6-337-6996             switch to “all-in” pricing and the removal of fuel surcharges, led by Emirates and Qa-
                         India                               tar, is just the latest example of their rising influence.
               Faredoon Kuka RMA Media
          kuka@rmamedia.com • +91 22 6570 3081                  We also take a deeper look into the increasingly intertwined relationship between
                          Japan                              air carriers and trucking companies (page 36). As road feeder services become more
                     Mr. Mikio Tsuchiya                      popular and economical for freight shippers, we discuss how transportation compa-
      mikio.tsuchiya@worldmedia.jp • +81 45-891-1852
                                                             nies around the world have merged their logistics systems to accommodate the differ-
                           Korea
                     Mr. Jung-Won Suh
                                                             ences between surface and air modes – some more successfully than others.
          sinsegi@igroupnet.co.kr • +82 2785-8222
                                                                As these articles demonstrate, we in the airfreight logistics business may play
                         Taiwan                              different roles, but we are all connected more closely than we may imagine. We at Air
                      Ms. Paula Liu
         paulaliu99@gmail.com • +886 2-2523-8268             Cargo World want to maintain that connection with our readers as well. Please write
                      Thailand                               in, let us know how we’re doing and share your stories with us.
                Ms. Anchana Nararidh
       anchana@worldmedia.co.th • +66 26-412-6938
                       Marketplace                           Randy Woods,
                      Alyssa Stebbins
        astebbins@royalmedia.com • +1 212 991-6735           Editor, Air Cargo World
                                                             rwoods@aircargoworld.com

    Special photo credits: Emirates A300-600 (p26): ©Aero
     Icarus/Flickr, Etihad 777-300ER (p26): ©Steve Walsh

4    MARCH 2015 ACW
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INTRODUCING SKYSTABLES
YOUR NEW EQUINE
TRANSPORT SERVICE

Etihad Cargo, winner of 2014 Air Cargo Industry Customer Care Award,
is proud to announce the launch of SkyStables, the brand new
bespoke service for your equine shipments.
Right from booking to arrival, SkyStables will guarantee a safe,
comfortable and convenient journey for your valuable horses, giving
you the peace of mind you require.
With dedicated Equine Managers who supervise the handling teams
both in the air and on the ground, you can now take advantage of
our global freighter network, and ship from Abu Dhabi to destinations
in Europe, Asia, Africa, Australia, and the Americas.
Visit etihadcargo.com for more information.
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UpFront                                                                                                                    Century mark for 777F

                                       Photo: ©Alex Kwanten
                                                                                                                           On January 15, China
                                                                                                                           Southern Airlines took
                                                                                                                           delivery of the ninth of
                                                                                                                           twelve 777 freighters it has
                                                                                                                           on order with Boeing – the
                                                                                                                           100th delivery of a 777F.
                                                                                                                           Boeing delivered the first
                                                                                                                           777F to launch customer
                                                                                                                           Air France in February

    Valentine’s Day                                                                                                        2009, and has since deliv-
                                                                                                                           ered 99 more to 11 carriers

    keeps UPS busy                                                                                                         and five lessors. Boeing
                                                                                                                           says it has 44 outstanding
                                                                                                                           orders for 777Fs.
    Love is a big business. To get
    flowers, sweets and gifts to
    consumers by February 14,
    Cupid needed help from global
                                                                                                Mangoes anyone?
    logistics networks. UPS said it                                     This past December,
    shipped more than 110 million                                            LAN Cargo set a
    flowers, or 10 million pounds,                                       new monthly record
    to florists around the United                                      for the transportation
    States in the weeks leading up                                  of mangoes from Peru to
    to this Valentine’s Day. Many                          Europe, shipping 525 tons of the
    of the flowers came from Latin              tropical fruit using two 767 freighters. The
    American countries, with more            mangoes were flown from Lima to São Paulo,
    than 90 percent of the imported    where operations teams at Guarulhos ensured that
    flowers traveling through Miami.   the cold chain was maintained before onward ship-
    UPS arranged for 40 additional      ment to Europe. LAN is responsible for transport-
                                       ing approximately 35 percent of Peruvian mangoes
    flights to make sure they came
    out smelling like a rose.             to Europe. Expect tropical salads to be a big hit
                                                                this year in Parisienne cafés.
                                                                                                                        DHL’s vision of the future
                                                                                                                        Glasses tend to make people

                                                                                      Lifting lions
                                                                                                                        look smarter. Logistics firm
                                                              Photo: Alibaba/Taobao

                                                                                                                        DHL wanted to find out if
                                                                                      Two rescued lionesses trav-       wearing high-tech “smart
                                                                                      eled from Belgium to their        glasses” could make their staff
                                                                                      new home in South Africa by       work smarter as well. In a pilot
                                                                                      way of Heathrow on January        test the company recently
                                                                                      20. The big cats, named Mag-      completed in the Netherlands,
                                                                                      gie and Sonja, made history       DHL asked 10 of its warehouse
                                                                                      by becoming the first lions to    staff to use various forms of
                                                                                      travel by Eurostar rail, before   “augmented reality” gear,
                                                                                      boarding the inaugural Kenya      such as Google Glass and
                                                                                      Airways 787 Dreamliner flight     VuzixM100, to guide them
                                                                                      to Johannesburg via Nairobi.      through the warehouse and

    Some drones with your tea?                                                        After landing in Johannesburg
                                                                                      Jan. 21, Maggie and Sonja were
                                                                                                                        identify items to be pulled – a
                                                                                                                        method called “vision picking.”
    While Amazon’s Jeff Bezos continues to fight the                                  taken by road to their new        The results? By the end of the
    FAA over his plan to launch an air force of deliv-                                home at the award-winning         three-week trial, the staff
    ery drones, his chief rivals in China began test-                                 Shamwari Game Reserve in          reduced errors and boosted
    ing the concept last month with five quadcopter                                   Port Elizabeth, South Africa.     efficiency by 25 percent.
    drones, fitted to deliver ginger tea packages to
    450 selected customers of Taobao.com, an online
    retail site operated by e-commerce giant, Alibaba.
    For a charge of 49-renminbi (US$7.84), custom-
    ers were allowed to order within a 6.2-mile radius
    of the three cities taking part: Beijing, Shanghai
    and Guangzhou. Could this be the future of “last
    mile” delivery?                                                                   Maggie the Lioness.

6   MARCH 2015 ACW
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CargoChat
                              ASL’s Hugh Flynn on the Farnair purchase
                              Late last year, Ireland-based ASL Aviation Group purchased the Farnair Group of companies.
                              Before the purchase, ASL already owned European carriers Air Contractors and Europe
                              Airpost; had partial ownership of South Africa-based Safair; and had ownership of supplier
                              ACLAS Global, and MRO ACLAS Technics. With the addition of Farnair, ASL now has some
                              level of control over four other airlines: Farnair Switzerland, Farnair Hungary, Quikjet
                              India, and K-Mile Air (45 percent).
                        All of these companies are now overseen by Hugh Flynn, CEO of ASL. After graduating from
a South African military academy in 1972, Flynn became an assistant transport procurement buyer for AECI Chemi-
cals and Technology before securing a role as marketing manager for a transport company called Tanker Services.
Later, he served in various aviation roles at Safair and Hunting Cargo Airlines before the ASL Aviation Group was
officially formed in 2008, following the acquisition of several companies. Air Cargo World caught up with Flynn to see
how all of these new moving parts are fitting together at ASL.
What was the main reason ASL Aviation Group                                                         Will the acquisition of Farnair have an impact on the
purchased Farnair?                                                                                  operation of your existing carriers?
Farnair’s business is very similar to the core activities of the                                    We are already seeing a very positive impact, with comple-
ASL Aviation Group, making it a perfect fit for us. We have                                         mentary capabilities providing an opportunity to develop
now combined the reach, assets and strengths of ASL and                                             synergies throughout the ASL Group’s operations, enabling
Farnair as we work to position ourselves as a competitive                                           us to build and focus on centers of excellence.
leader in the industry.                                                                             How do your cargo services and passenger businesses
With Farnair, ASL has gained greater access to cargo                                                work together?
markets in South Asia. What is your strategy for Asia                                               Our passenger business is an excellent match for our core
in general?                                                                                         business. We largely use the same type of aircraft – variants
As Asian markets expand, so our customers also expand                                               of the Boeing 737 – and we apply the capabilities in our cen-
their services, and we build our capability to meet the                                             ters of excellence that are common to the operations, such
requirements of the major integrators as they grow their                                            as flight operations, technical and maintenance.
Asian business. This includes providing a platform that is                                          As part of your fleet renewal strategy, you have said
equipped with aircraft, [air operator certificates], traffic                                        you plan to convert Europe Airpost’s six 737-300QCs
rights and bilateral agreements.                                                                    into freighters. Why?
Most of the airlines under Farnair operate for other                                                This is more of an aging aircraft program than anything else.
carriers. Do ASL’s carriers offer any scheduled or                                                  We have converted two QCs into pure freighters, mainly
charter service of their own?                                                                       because those particular aircraft were getting older. At the
At the moment we operate both scheduled and charter                                                 same, time we have brought 737-700 Next Generation air-
and ACMI passenger flights in Europe, South Africa and                                              craft into the fleet.
on trans-Atlantic routes. We would look at opportunities                                            How has the drop in oil prices affected ASL’s operations?
to introduce scheduled cargo operations, but only if they                                           Any drop in oil prices is good for the economy generally, for
complemented our operations and would not impinge on                                                business and of course for the aviation industry. However, at
our core business.                                                                                  this time we consider that the current price fall may only be
                                                                                                    a short- to medium-term occurrence.
                                                                        Photo: Aero Icarus/Flickr

                                                                                                    Now that the Farnair acquisition is completed, what
                                                                                                    are the greatest challenges that ASL Group faces?
                                                                                                    The significant challenges are those facing the aviation in-
                                                                                                    dustry generally, including the status of the eurozone and
                                                                                                    the value of the euro against the United States dollar and
                                                                                                    other major international currencies. Heavy regulation is
                                                                                                    also an issue, particularly in Western Europe, where a more
                                                                                                    light-touch approach to regulation would increase stability
                                                                                                    and promote growth.
                                                                                                    What is your economic outlook for the airfreight
                                                                                                    industry in 2015 and beyond?
ASL Group’s holdings include Air Contractors, Europe Airpost, and                                   I think the outlook is very different for different parts of
Farnair. In the case of the latter two carriers, both fly a single type –                           the world. Europe, unfortunately, will probably be flat for a
variants of the 737, with the associated benefits of reduced cost and                               while, and that is why we are looking beyond the continent
complexity. Europe Airpost has 737NGs in its fleet for passenger                                    to other accessible regions that will see growth, such as
operations, though this may presage cargo use.                                                      Asia, Africa and the sub-continent. 			                  ACW

8   MARCH 2015 ACW
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Around the world
                         ASIA                                                       EVA Air’s final 747-400M, registered B-16409, departs
                                                                                     from Taipei in 2009. The aircraft was retired to San
                                                                                                         Bernadino on January 26, 2015.

                                                                                                                                       Photo: © Michael Rehfeldt
A New Era for EVA
By Ian Putzger

J
   anuary 5 was a small watershed for              Clearly, maindeck capacity is going to    cargo accounted for 28.9 percent of
   EVA Air. It was also a day that could        play a lesser role in the Taiwanese car-     total revenues. Tonnage was down 4.1
   have meaningful implications on              rier’s strategy. But the question many       percent from the year before, but load
   how forwarders schedule cargo in             shippers and forwarders would like to        factors rose from 82.64 percent in 2013
the region.                                     ask is: Will this reduce the role of cargo   to 85.07 percent and the yield was up
   The 747-400 used for flight BR868,           in EVA’s overall strategy?                   2.6 percent.
which landed in Taipei that day, sub-              “The global cargo market landscape          “Our cargo business improved sig-
sequently exited EVA’s fleet, marking           has evolved over the last five years         nificantly in 2014, thanks to falling oil
the demise of combi aircraft from the           due to a number of factors,” Chai said.      prices and greater trade demand. Our
lineup. Its retirement leaves Asiana the        “More goods are transported intermod-        profits increased in Q4 2014,” Chai re-
lone operator of 747 combis in Asia.            ally. Bellyhold capacities have grown.       marked.
   The 747 is also on the wane in EVA’s         Electronic products have become                One target area is the e-commerce
freighter lineup – now down from ten            smaller and smaller. And demand for          sector, which offers opportunities for
to eight units – although the MD-11Fs           the kind of capacity provided by full-       express traffic solutions. EVA is beefing
are heading for the exit faster.                cargo freighters has fallen. We accom-       up its sales force to get a larger piece of
                                                modated these trends by adjusting our        this pie.
   “We will gradually take some MD-             freighter fleet and long-term plans.”
11 freighters out of service over the                                                           Temperature-controlled moves are
course of this year but that won’t have            Rather than chase volumes, the focus      another key focus. To that end, EVA
a significant effect on our freighter net-      at EVA appears to be shifting to ramp-       is initiating a master lease agreement
work or schedule. We will accommo-              ing up load factors and targeting pre-       with Envirotainer, Chai revealed. “With
date our air cargo customers’ consis-           mium traffic more than before.               this infrastructure in place, we will
tent space needs by making full use of             Indeed, the carrier’s monthly statis-     launch cold chain services to major
bellyholds on our passenger aircraft,”          tics show cargo revenues of US$987.3         cities worldwide, including Amster-
said Glenn Chai, executive vice presi-          million for last year, comprising 26.7       dam, London and Paris in Europe, Los
dent, corporate planning division.              percent of overall revenues. In 2013         Angeles, San Francisco and Chicago
                                                                                             in the USA, and Taipei, Singapore and
                                                                                             Bangkok in Asia,” he said. “We expect

     More goods are transported intermodally. Bellyhold                                      to commence our cold-chain initiative
                                                                                             around mid-2015.”

     capacities have grown. Electronic products have become
                                                                                               The mix of longhaul and intra-re-
                                                                                             gional traffic is not likely to change this
                                                                                             year, he indicated. The latter accounts

     smaller and smaller ... We accommodated these trends                                    for about 37 percent of EVA’s overall
                                                                                             tonnage.

     by adjusting our freighter fleet and long-term plans.                                     However, Chai is decidedly more
                                                                                             bullish on the trans-Pacific market than
                                                                                             the intra-Asian arena. “We expect cargo
                      —Glenn Chai, executive vice president, corporate planning, EVA Air                             Continued on page 12

10   MARCH 2015 ACW
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AsiaNews
Continued from page 10
volume to and from the USA to remain
strong but intra-Asia demand appears                               Japan charters rise with port crisis, air bag recall
to have less momentum because Chi-                                    A recent recall of automobile
na’s economy is not as robust as it was,                           air bags, paired with the ongoing
and Japan has not regained strength,”                              West Coast port crisis in the United
he added.                                                          States, has provided another boon
  EVA’s belly lift to the U.S. market is                           to airfreight charter flights from
set to go up in June with the launch of                            Japan, much like what happened to          Subaru has turned to a signficant amount
777-300ER service to Houston. On the                               eastbound traffic from Asia to North         of charter work to keep production run-
sectors to Vancouver, Toronto and Se-                              America during peak season.                       ning at its U.S. factory in Indiana.
attle, the carrier said it intends to step                            Air bags made by Takata Corp., a        shore and Warehouse Union (ILWU)
up its frequencies this year. Next year,                           major Tokyo-based auto part supplier,      labor dispute and the air bag recalls.
EVA plans to start passenger flights                               which were installed in automobiles        Japan Airlines, Atlas Air, All Nippon
to Chicago.                                                        from model year 2002 to 2008, could        Airways and Kalitta Air are all reaping
   For EVA management, the 777-300ER                               deploy explosively, and are being          the benefits.
certainly is the type to embrace. So far                           recalled in as many as 18 million ve-         Business Insider Australia reported
it has brought 18 into its fleet, replac-                          hicles.                                    that the chief labor negotiator for
ing most of the 747-400 contingent,                                   The problem is getting new air bags     the terminal operators warned that
which is now down to three aircraft in                             to the U.S. from Japan. A nine-month       the West Coast ports were days away
passenger configuration. EVA has four                              labor dispute has left U.S. West Coast     from complete gridlock in the first
more 777s on order, and has also been                              ports with weeks-long backlogs, and        week of February. Union officials, in
talking with Boeing about the 777X,                                Japanese automakers now have limit-        turn, played down the potential for
signaling further interest in the 777                              ed options, so they have begun work-       shutdowns, suggesting management
series.                                                            ing with forwarders to ship the parts      was exaggerating the situation as a
   The 777s bring ample belly capac-                               by air. Fuji Heavy Industries Ltd.,        negotiation tactic.
ity into the fleet as its maindeck space                           which makes Subaru cars, said in Feb-         But the airbags and other auto parts
continues to shrink. Last year the                                 ruary that it had moved to chartered       have got to move. Six people in the
reductions in its all-cargo fleet led to                           cargo flights to avoid U.S. production     U.S. to date have been killed by ex-
the suspension of freighter service to                             from coming to a halt.                     ploding Takata air bags, and 10 differ-
Tokyo and New York.                                                  About 42 airfreight charters from        ent automakers have recalled vehicles
                                                                   Japan to the U.S. were booked in           with the Takata air bags that are on
                                                                   February due to the port congestion        either the driver’s or passenger’s side
                                                                   caused by the International Long-          of the vehicle.             –Linda Ball
                                           Photo: ©Alex Kwanten

                                                                  Cathay Pacific Cargo Terminal has busy first year
                                                                     n its first full year handling cargo,    three hours for passenger flights and
    The capacious hold of the 777-300ER has                          Cathay Pacific Services Limited          five hours for freighters. In addition,
  largely eliminated the need for the 747-400                        (CPSL) reported that the new Ca-         airlines can make transshipment con-
 combi, and only KLM now operates that type.                         thay Pacific Cargo Terminal (CPCT),      nections at CPCT, within five hours, or
                                                                  at Hong Kong International Airport,         three hours with prior arrangement.
   At this point it is still unclear what                         handled 1.45 million tonnes of cargo.
the carrier’s future freighter lineup                                                                            The HK$5.9 billion CPCT opened in
                                                                     On Nov. 8, 2014, the terminal set its    February 2013 and was designed and
will look like when the 747 and MD-11
                                                                  highest daily tonnage record of 5,476       constructed by CPSL, a subsidiary of
cargo planes are all gone. Senior execu-
                                                                  tonnes of cargo processed. CPCT’s traf-     Cathay Pacific Airways, which also
tives have indicated over the past year
                                                                  fic was 54 percent transshipment. The       operates the facility under a 20-year
that the 777F as the likely future main-
                                                                  percentages of import and export cargo      lease agreement with HKIA. The new
stay of the freighter fleet. How many?
                                                                  tonnes throughout were 15 percent           terminal has an annual air cargo capac-
No announcement has been made, but
                                                                  and 31 percent, respectively.               ity of 2.6 million tonnes. CPSL started
a ten-unit fleet has been hinted at –
which would be down from 15 freight-                                 “2014 was Cathay Pacific Cargo           providing ramp-handling service for
ers two years ago.                                                Terminal’s first full-year of operations.   freighters since July 2014.
                                                                  With concerted efforts by our dedicat-         CPSL currently serves seven customer
  Chai labels the 777F “definitely a                              ed team, we were able to achieve the
contender to replace existing freight-                                                                        airlines, including AirAsia, Air Hong Kong,
                                                                  highest level of service performance        Cathay Pacific Airways, Dragonair
ers” but added that management is still                           that we promised our customers from
evaluating its aircraft options and has                                                                       (a Cathay subsidiary), EVA Airways,
                                                                  the beginning,” said CPSL chief execu-      Royal Brunei Airlines and Thai AirAsia.
not made a final decision.         ACW                            tive officer Kelvin Ko.                     CPSL employs more than 1,800 people
                                                                     At CPCT, consignees can collect          to support the round-the-clock opera-
                                                                  inbound cargo after its arrival within      tions at the terminal.         –Linda Ball
12   MARCH 2015 ACW
Around the world
                           EUROPE

Frankfurt top dog again? Well, maybe.
By Roger Turney

E
     urope’s top cargo airport? Well,       imposed on the airport, literally almost        As far as cargo is concerned, Fraport
     surely that would be Frankfurt. Or     overnight. Take-offs and landings were       has set itself the daunting task of hit-
     maybe Paris?                           banned between the hours of 11 p.m.          ting the 3 million tonne mark by the
     It’s a good question, because          and 5 a.m. The ban affected 17 night-        end of 2020. Given that last year’s 2.2
through last year both gateways were        time cargo flights, of which about 11        million tonnes represented an incre-
trumpeting the fact that their cargo        were operated by Lufthansa Cargo.            ment of only 1.7 percent; that is quite
figures for 2013 clearly showed they           The German carrier argued, in vain,       a challenge.
were each the busiest cargo gateways        that the ban would cost it US $45 mil-         But Frankfurt is definitely, and per-
in Europe.                                  lion a year. It threatened to move its       haps defiantly, on the move. Much of
   On paper, at least, Frankfurt ap-        operations to another German airport,        the airport’s cargo handing operations
peared to be the underdog with 2.1          or even (mein Gott) another Euro             have shifted to the south. It is here, on
million tonnes of cargo handled, while      hub, outside of Germany.                     what was an area largely covered by
Paris, combining the figures of Charles       Three years later and, remark-             the former U.S. Air Force base, that
de Gaulle and Orly airports, came in at     ably, Lufthansa Cargo is still fully         Frankfurt’s cargo future is being built.
2.18 million tonnes.                        entrenched at Frankfurt and even                That has manifested itself most re-
   Game over? Well, not quite. Both         committed to building a new cargo            cently with the decision by Fraport to
figures contained airmail traffic, which    terminal. It appears to have accommo-        finally move ahead with a major
put the French in front. But in terms       dated the imposition of the night flight     expansion of what is termed CargoCity
of pure cargo traffic, it was apparently    ban and even managed to provide for          South. A 27-hectare site has been
Frankfurt that won the day. So, yes both    the dispersal of five new 777Fs into its     cleared, and bids called in to develop
were able to claim victory – of a kind.     constrained schedules.                       the first phase, which will cover about
   Now, it seems, they are going to be        As a reward for quieter nights             half of the site area. Would-be bidders
sniping at one another again. Frankfurt,    around the neighborhood, Frankfurt           are expected to include a mix of air-
confident of gaining overall supremacy,     did at least gain the concession of an       lines, handlers and express operators.
has reported figures for 2014 of 2.2        extra runway, opening just a day after       The first tenants are projected to move
million tonnes. But wait, those Frenchies   the nighttime ban came in. But the is-       in around mid-2017.
are at it again. Curiously, posting its     sue of nighttime operations continues           Off the airport and adjacent to the
results a month later than its German       to stalk the airport. Calls have been        airport’s newest runway, Fraport has
rival, Paris says its 2014 total was        made for the ban to be extended to           a further 110-hectare area for devel-
2,201,726 tonnes, thereby just shading      what are described as the “shoulder          opment at its disposal. Known as the
its Teutonic neighbors … again.             hours” – one hour on either side of the      Monchof Logistics Park, this project is
   No doubt, the caveat of who handled      current curfew.                              already being implemented, with the
the more pure cargo will once again be         The issue is due to be resolved           aim of providing logistics companies
played to Frankfurt’s benefit.              in time for the start of the summer          and other airport-related businesses the
   But it is the German cargo hub           schedule. The likelihood is that some        opportunity to acquire plots of between
that appears to have regained its           kind of runway rotation could be intro-      5,000 and 100,000 square meters.
self-confidence and self-belief. That       duced, but airport owner and operator          So far, more than 400,000 square
confidence took a serious knock three       Fraport argues that this will be difficult   meters has been allocated, with the
years ago when a night flight ban was       to implement.                                goal of full site occupation by 2019.
14   MARCH 2015 ACW
EuropeNews
Typically, DHL Express Germany and
Expeditors International are among
the early tenants.                                                                                           Swiss WorldCargo, Cargologic,

                                                                                      Photo: ©Alex Kwanten
  Fraport, though, is also a major
cargo operator in its own right. Fraport                                                                     SATS form partnership
                                                                                                             T
Cargo Services (FCS) is the largest in-
                                                                                                                hree powerhouses of airfreight and
dependent cargo handler at the airport,
                                                                                                                airport services have joined to-
responsible for moving over 450,000
                                                   Lufthansa Cargo not only dealt with                          gether to improve their cool-chain
tonnes a year through its terminals,
                                               Frankfurt’s night ban, it added capacity                      handling abilities. Oliver Evans, Swiss
reflecting a 22 percent market share.
                                               with 777Fs and is looking to build a new                      World Cargo’s chief cargo officer;
   Those figures will be given a signifi-                 cargo terminal at the airport.                     Marco Gredig, managing director
cant boost with the recent news that                                                                         of Cargologic; and Alex Hungate,
the company has won over the con-           and promote the gateway, while at the                            president and CEO of SATS, signed a
tract from a rival operator to handle       same time aiming to improve its work-                            memorandum of understanding Jan.
the cargo business of China Southern        ing processes. Initially, 15 companies                           13, outlining the collaboration.
Cargo. Operating five weekly 777F           signed up for membership, among
                                                                                                                The three said they will focus on
flights between Frankfurt and Guang-        them Lufthansa Cargo.
                                                                                                             value-added services and improving
zhou, and six to Shanghai, plus ad-            Frankfurt has the advantage over                              performance at their facilities. They
ditional passenger services to Guang-       its French rival of being at the heart of                        have agreed to foster good distribu-
zhou, the airline is expected to gener-     Europe’s manufacturing base. But it is                           tion practices (GDP) at Cargologic’s
ate annual volumes of 70,000 tonnes         a noted curiosity that while 90 percent                          certified cool-chain facilities and SATS’
moving through FCS facilities.              of all French airfreight flies via the two                       facilities across Asia to promote phar-
  But Fraport is by no means going it       Paris airports, Frankfurt only attracts                          maceutical and other temperature-sen-
alone in plotting Frankfurt’s long-term     around 48 percent of all German air-                             sitive airfreight for Swiss World Cargo.
future as Europe’s leading air cargo        freight traffic.                                                 Specialized handling solutions will be
hub. Early last year, a new association,      For the time being then, Frankfurt                             implemented to ensure improved care
Air Cargo Community Frankfurt, was          and Paris will, presumably, continue                             of valuable freight for Swiss.
created with the intent of providing        to argue over the top-dog spot in Eu-                              With this new alliance, the trio will
representation for all the major cargo      rope… It must be one of them.      ACW                           share knowledge and best practices
players on the airport to help develop                                                                                              Continued on page 16

   To understand how the Maastricht Airport’s cargo product can
   give your supply chain a competitive edge in Europe, please contact
   Mr. Wiel Dohmen, Cargo Development Manager at +31-43-358-9999
   or by email: w.dohmen@maa.nl

                                                                                                                                       ACW MARCH 2015   15
EuropeNews
Continued from page 15

                                                                                                                              Photo: ©Alex Kwanten
in IT, facility development, joint train-
ing, staff/management enrichment and
joint innovation workshops.
   Cargologic is a specialist in airfreight
handling and has been a contractor
to airlines and forwarding companies
for more than 50 years. It operates
in Zurich, Basel, Bern and Lugano in
Switzerland, with a presence in Am-
sterdam and Brussels through its sister
company, Skylink.
  In business for over 60 years, Sin-
gapore-based SATS provides gateway
and food services in 42 airports and 12
countries in Asia and the Middle East.
                                              AirBridgeCargo completes record year
                                                In its tenth year of doing business,   er, ABC’s fleet now stands at thirteen
   Swiss World Cargo, the airfreight
                                              AirBridgeCargo (ABC), the sched-         747 freighters, which includes six -8Fs.
division of Swiss International Air
                                              uled-service subsidiary of the Volga-       ABC also added new routes to Dal-
Lines, with its headquarters in Zurich,
                                              Dnepr Group, carried a record 401,000    las/Ft. Worth, Leipzig, Munich, Basel
offers logistics services to approxi-
                                              tonnes of cargo in 2014, which is a      and Malmo, while adding frequencies
mately 120 destinations in over 80
                                              17.6 percent increase over 2013.         to Chicago, Milan, Amsterdam, Hong
countries. Part of the Lufthansa Group,
it is supplemented by daily truck con-          Investing in improvements at its       Kong, Shanghai, Tokyo and Seoul. ABC
nections between key business centers         main hub in Moscow, and reacting         offers 218 scheduled freighter flights
in Europe.                        		          quickly to market changes, ABC aver-     a week to 11 countries and more than
				 –Linda Ball                              aged a load factor of 72.6 percent,      400 connections, with a delivery time
                                              which is above the industry standard.    within 48 hours on most of its origin-
                                              By adding an additional 747-8 freight-   destination pairs via the Moscow hub.
                                                                                          “Thanks to this growing support,
                                                                                       ABC has been able to grow consistent-
                                                                                       ly with a compound growth rate of 11
                                                                                       percent over the last five years,” said
                                                                                       Denis Ilin, ABC’s executive president.
                                                                                       He said the company aims to further
                                                                                       increase its network with additional
                                                                                       destinations to support smaller, niche
                                                                                       or even short-term project business
                                                                                       opportunities.
                                                                                          “The geographic location of our hub
                                                                                       in Moscow positions us perfectly to
                                                                                       introduce services to literally any point
                                                                                       in Europe and beyond. The global
                                                                                       market will remain challenging in 2015
                                                                                       but I look forward with confidence that
                                                                                       we will keep pace with the demand
                                                                                       and opportunities that exist for us,”
                                                                                       Ilin added.
                                                                                          AirBridgeCargo also added Helsinki,
                                                                                       Finland, to its international network,
                                                                                       with twice-weekly 747F service. The
                                                                                       flights will operate from Moscow’s
                                                                                       Sheremetyevo Airport to Helsinki, re-
                                                                                       turning to Moscow via Frankfurt. The
                                                                                       new service offers 48-hour connec-
                                                                                       tion opportunities for ABC’s custom-
                                                                                       ers between Asia and Helsinki. In the
                                                                                       past five years, ABC has been one of
                                                                                       the world’s fastest growing interna-
                                                                                       tional cargo, airlines with a compound
                                                                                       growth rate of 11 percent. –Linda Ball

16   MARCH 2015 ACW
EuropeNews
Nordic countries quickly reach e-AWB milestone                                                       Qatar’s new Pharma Express
   In just five months, Scandinavia’s                                                                   Qatar Airways Cargo is introducing

                                                                              Photo: ©Alex Kwanten
air freight sector collectively hit                                                                  a new service this month, dubbed the
IATA’s global 22 percent target for                                                                  “Pharma Express,” that will expedite
adoption of electronic air waybill                                                                   pharmaceutical cargo from Brussels
(e-AWB) technology in their cargo                                                                    and Basel to Qatar’s network via the
operations. Alexander Kohnen, Luf-                                                                   carrier’s Doha hub.
thansa Cargo’s director for Nordic and                                                                  The two European cities are estab-
Baltic countries, made the announce-                                                                 lished pharmaceutical manufacturing
ment during his opening remarks at                                                                   centers, with Brussels Airport becom-
the Nordic Air Cargo Symposium in                                                                    ing the world’s first to be certified by
Stockholm last month.                                                                                the Center of Excellence for Indepen-
   Nine IATA member airlines – SAS       22 percent. The industry total was                          dent Validators (CEIV Pharma) last
Cargo, Lufthansa Cargo, Air France/      23.4 percent for December 2014,                             year. Brussels and the surrounding
KLM, Finnair, Korean Air, Cathay         which was 2.3 percent more, month                           area is home to 146 life sciences and
pacific, Qatar Airways and Emirates      over month.                                                 biotechnology companies.
– have taken the lead in the Nordic         Implementing electronic airway                              Pharma Express will be serviced by
market to implement the e-AWB for        bills involves the World Customs Or-                        A330Fs. In January 2014, Qatar Air-
their air freight shipment. IATA’s vi-   ganization (WCO), ground handlers,                          ways Cargo launched QR Pharma – an
sion is to see its members go 100 per-   freight forwarders and airlines. The                        airfreight service for pharmaceutical
cent paperless by the end of 2017.       implementation is performed locally                         and healthcare products. QR Pharma
   At the close of 2014, global e-AWB    in each country, and the nine lead air-                     offers temperature-controlled contain-
adoption stood at 24.9 percent.          lines have agreed to a single process                       ers, designed to maintain a constant
Denmark scored 23 percent, Finland       for the forwarders to deliver cargo to                      temperature throughout the entire
25 percent, Sweden 15 percent and        the cargo terminals and ground han-                         transportation chain, keeping the
Norway at 7 percent, which exceeded      dlers. This process completely elimi-                       product within a defined temperature
those countries’ combined goal of        nates the need for paper. –Linda Ball                       band at all stages of the journey.
                                                                                                     				–Linda Ball

                                                                                                        we turn cargo
                                                                                                      into an art form
© PMCE DESIGN

                                                                                                                          adpcargo@adp.fr
                                                                                                                        aeroportsdeparis.fr

                                                                                                                               ACW MARCH 2015   17
Around the worldAFRICA
                                                  &MIDDLE EAST

Kenya’s Astral Aviation to increase intra-Africa service
By Randy Woods

L
   ater this month, the fifth general       ing equipment into Tanzania, and gas        Jomo Kenyatta International Airport to
   election will be held in Nigeria since   equipment into Mozambique,” he said.        London Stansted on an ACMI-leased,
   the official end of military rule in       The only downside to 2014, Gadhia         Atlas-operated 747-400F. Last year, the
   1999. For Kenyan cargo airline           said, was an embargo on relief flights      carrier also acquired a 5-tonne-capaci-
Astral Aviation, the scheduled March        from Kenya into the Ebola-stricken          ty Fokker 27, which complimented As-
28 vote will be good news, not only for     countries of Sierra Leone, Guinea and       tral’s fleet of DC-9 and 727 freighters.
democracy in Africa, but also for the       Liberia in West Africa, which arose out        Plans are also being made to acquire
expected rise in charter shipments of       of regulatory restrictions. Now that the    a second 747-400F in the first quarter
election materials to Nigeria.              reports of Ebola cases appear to be on      of 2015 to keep up with demand for
  According to Astral’s CEO Sanjeev         the decline, he said he hopes to be able    increased intra-Africa service, Gadhia
Gadhia, such connections between            to resume flights to the region later       said. New markets being considered
Kenya and other African nations via         this year.                                  for scheduled service include Angola,
African-owned carriers are a welcome          In general, Gadhia said, oil, gas and     South Africa, Democratic Republic of
development in a region that has been       mining equipment – mostly shipped to        the Congo, Zambia, the Congo Repub-
dominated by larger European and            Nigeria and Angola – are the carrier’s      lic and Zimbabwe, “which will be done
Asian airlines. “African countries have     highest-yield businesses, but those         cautiously,” he added.
started to trade more with each other       shipments are being threatened by the         Despite this optimism for 2015,
than before, resulting in an increase of    dramatic drop in oil prices in the last     Gadhia says there are many obstacles
intra-African logistics,” he said.          nine months. The rise in the election-      facing African cargo carriers, such as
   Now entering its 15th year of opera-     materials charters to Nigeria this          the lack of airport and cargo infra-
tion, Astral uplifts various types of       month, he said, will help make up for       structure in certain airports in Africa.
cargo, including oil and gas equipment,     the expected lower volume of oil and        Inadequate facilities lead to “higher op-
telecommunication equipment, aid            gas exploration equipment shipments.        erating costs, hence there is a need of
and relief supplies, mining equipment,        Another sector of business that is        greater foreign and local investment to
and medicines and vaccines. Last year,      expected to fill the gaps left by oil and   upgrade or install modern equipment,”
Astral experienced higher demand            gas at Astral is the perishables market     he explained.
for intra-African scheduled service on      from East Africa to Europe. “This year,        Also, the current patchwork of over-
routes to destinations such as Juba in      we expect to see an increase in perish-     lapping airfreight regulations imposed
South Sudan, Pemba in Mozambique,           able exports into Europe and an in-         by the many countries has created a
Mwanza and Zanzibar in Tanzania, and        crease in intra-African transit cargoes     regulatory framework in which “certain
Mogadishu in Somalia. “There was also       from our Nairobi hub,” Gadhia said.         countries are over-regulated while oth-
a significant increase in aid and relief                                                ers are under-regulated.” As a result,
cargoes into South Sudan and Central          The all-cargo carrier currently of-
                                            fers twice-weekly flights from Nairobi’s    African governments have tended to
African Republic, in addition to min-                                                   favor foreign carriers by granting fifth
                                                                                        freedom rights. Today, about 90 percent
                                                                                        of the African air cargo market is now
     This year, we expect to see an increase in perishable                              dominated by these foreign carriers.
                                                                                          On a positive note, Gadhia added,
     exports into Europe and an increase in intra-African                               trade blocks in Africa are becoming
                                                                                        stronger. “The possibility of a single

     transit cargoes from our Nairobi hub.                                              trade block in Africa will soon be a
                                                                                        reality, which will encourage lower
                                                                                        tariffs, greater trade and movement of
                                              —Sanjeev Gadhia, CEO, Astral Aviation    cargoes within Africa.”             ACW
18   MARCH 2015 ACW
Africa & MiddleEastNews
Two Djibouti airports planned, with Chinese funding                                               Airlink responds to flooding
   The tiny African nation of Djibouti         for the Airbus 380. The second airport,              Airlink, a humanitarian response
measures just 23,200 square kilometers         to be named Ahmed Dini Ahmed Inter-                organization, and its partner airlines,
and is home to only about 800,000 peo-         national Airport, after one of the nation’s        have responded to a severe flooding
ple, but within a few years – and a little     former prime ministers, is expected to             crisis in Malawi, caused by above
help from the Chinese – it expects to          open in 2016, to the north of Djibouti             average rainfall in January. Airlink
have two brand-new airport hubs large          and will have an annual capacity of                brings pre-qualifed nonprofits to-
enough to handle 100,000 tonnes of             roughly 767,000 passengers per year.               gether with airlines.
cargo and 2 million passengers annually.          With the help of funding from China                The situation is dire, with 1.15 mil-
   Located in the Horn of Africa, where        Civil Engineering Construction Corpora-            lion people affected by the flooding
the Red Sea meets the Gulf of Aden, Dji-       tion, the Djibouti government said the             and 336,000 of them displaced. It’s
bouti is vying for a piece of the lucrative    cost to build both airports is estimated           been reported that 176 people have
long-haul international air traffic that       to be nearly US$600 million, as part of a          died and hundreds more are unac-
has been increasing across East Africa         larger US$5 billion investment in indus-           counted for. Crops have been de-
and the Middle East in the last decade.        trial and seaport infrastructure.                  stroyed and poor sanitation systems
At a January dedication ceremony in the           Other projects in the master plan in-           have been washed away.
town of Ali-Sabieh, the nation’s Presi-        clude a direct rail link to Addis Ababa in            All Hands, a 501(c)3, has already
dent, Ismaïl Omar Guelleh, kicked off          neighboring Ethiopia, a petroleum and              deployed six relief workers into the
construction of the first of the two hubs,     liquefied-natural-gas terminal, to open            country. Airlink is working with the
located about 25 kilometers south of the       later this year, plus four new ports that          International Red Cross to bring in
capital, Djibouti City.                        will quadruple seafreight capacity to              latrines to reduce waterborne ill-
   The proposed airport, to be called          nearly 80 million tonnes per year.                 ness while sanitation systems are
Hassan Gouled Aptidon International                                                               restored.
                                                 According to a recent forecast by
Airport, after Djibouti’s first president,
                                               the World Bank, Djibouti’s economy is                 For more information, please
is expected to open in 2018. It will be
                                               expected to grow by 6.5 percent                    visit airlink-info.org/severe-flooding-
capable of catering to 1.5 million passen-
                                               this year.		          –Randy Woods                 response.                 –Linda Ball
gers and will have runways long enough

    I am with You all the Way

     Halit Mimaroglu
     Sales Manager

     In a world growing more complex by the hour, we concentrate on being the perfect match for each of our clients. This is
     why we develop expertise in vertical industries like Precious Commodities, Healthcare or Postal Business and learn to see
     through our clients‘ eyes, in order to have the perfect solution ready whenever he needs them. It is yet another way that
     We care for your cargo.

    SWISSWORLDCARGO.COM

  150203_SWC Halit_EN_178x124.indd 1
                                                                                                                             ACW MARCH 2015   19
                                                                                                                                 03.02.15 14:59
Around the world
                AMERICAS

                                                                                                                                 Photo: ©Alex Kwanten
Northern Air Cargo assists in ‘The Last Great Race’
By Linda Ball

T
    he Iditarod Trail Sled Dog Race,        operating one flight a day, three or        expedited on-demand charters, mostly
    called “The Last Great Race,” has       four days a week, to drop supplies at       carrying auto parts between the U.S.
    been held every year in Alaska since    three hub locations along the trail –       and Mexico. Approximately 68 percent
1973. The race is the re-enactment of the   the towns of McGrath, Unalakleet and        of cargo on NAS carriers is freight and
dogsled freight route from Anchorage        Nome, where the race ends.                  32 percent is mail.
to Nome, Alaska, covering a distance of        No stranger to flying in sub-zero          In recent years, NAC has experienced
1,049 miles in harsh, cold winter condi-    conditions, NAC, founded in 1956, flies     a growth spurt. The addition of Aloha
tions. Before the advent of aircraft, dog   to 14 points in western and northern        and the L.A.-to-Honolulu route, ground
sled drivers, known as mushers, deliv-      Alaska. One of NAC’s largest customers      handling services for Shell Oil’s passen-
ered goods to isolated villages, and the    is the Red Dog Mine, a zinc-lead mine       ger terminal and a four-year contract
race follows their historic path.           in Northwest Alaska near Kotzebue,          with the U.S. Postal Service to carry
   Just like those early mushers, North-    which NAC has been servicing for 20         international mail are just a few of the
ern Air Cargo (NAC), Alaska’s largest       years. The oil companies that are ac-       new roles the company has taken on.
all-cargo airline, also delivers goods      tive in Prudhoe Bay, at the origination       “Every piece of the company is
in support of the race that celebrates      of the Trans-Alaska Pipeline, are also      growing,” Squier said. He said that
their arduous journey.                      frequent customers.                         MRO subsidiary Northern Air Mainte-
   This year the ceremonial start is           NAC also provides flights for the        nance Services (NAMS) has also taken
March 7 in downtown Anchorage, as           Alaska Bypass, a federal mail delivery      on maintenance support for Conoco
usual, but the actual race will start in    system for small, isolated villages. By     Phillips aircraft that service Anchor-
Fairbanks for only the second time          avoiding the U.S. Postal Service, the       age, Fairbanks and Prudhoe Bay.
in the history of the race, due to lack     bypass allows residents of those towns
                                                                                           Squier is new in his role, having
of snow. NAC will be there in its 33rd      to ship and receive goods for far less
                                                                                        previously served as vice president
year of ferrying about 75 tons of dog       than commercial rates. Squier said
                                                                                        of cargo services for NAC and, before
food, sleds, kennels, snow machines,        bypass mail is more than just letters;
                                                                                        that, as manager of ground operations
chainsaws, camera equipment, ply-           it must be a minimum of a thousand
                                                                                        in Anchorage for Alaska Airlines.
wood, heaters, propane tanks, perish-       pounds and is often supplies for gro-
ables and general gear to support the       cery stores and restaurants.                   This month, however, all eyes will
mushers and their dogs.                                                                 be on Alaska, which is the heart of the
                                               But NAC is also tied to freight routes
                                                                                        Northern Air Cargo operation. NAC
   Dave Squier, the chief operating of-     in much warmer – even tropical –
                                                                                        is one of the earliest sponsors of the
ficer of Northern Air Services, NAC’s       climes. When Hawaii’s Aloha Airlines
                                                                                        upcoming Iditarod, said Stan Hooley,
parent company, said weather and            went bankrupt in 2008, Saltchuk Re-
                                                                                        CEO of the Iditarod Trail Committee.
timing are the two main logistical chal-    sources, which bought NAC in 2006,
                                                                                        Each year, at the annual “musher’s
lenges in staging the Iditarod. The du-     bought the airfreight portion, Aloha Air
                                                                                        banquet,” the carrier gives away a
ration of the race, for example, is a big   Cargo, based in Honolulu. Squier said
                                                                                        brand-new ATV to one of the mushers
variable. Winners have arrived in Nome      it is predominantly inter-island service,
                                                                                        who completes the formidable jour-
after eight days, but the last musher       with one weekly frequency between
                                                                                        ney. NAC also awards the musher who
might not come in for a month after         Los Angeles and Hawaii.
                                                                                        displays the best sportsmanship and
starting, so it can be difficult to know       NAC in Alaska and Aloha Cargo in         spirit with the Herbie Nayopuk award,
how long NAC will have to have an air-      Hawaii make up the vast majority of         named after an Iditarod legend, in addition
craft ready to fly in new supplies.         Northern Air Service’s business, Squier     to $1,049 in one-dollar bills stuffed in
   The carrier uses a 737-200 freighter     said, but the company also keeps a          the pockets of a Carhartt jacket. ACW
and a 737-300 freighter for the race,       couple of aircraft in Laredo, Texas, for
20   MARCH 2015 ACW
AmericasNews
DHL Global Forwarding finishes Chicago facility
   DHL Global Forwarding, the for-           The DHL facility has also been vali-
warding arm of Deutsche Post DHL,         dated by the Customs-Trade Partner-
completed construction of its US$35       ship Against Terrorism and is certified
million, 491,000-square-foot container    by the U.S. Transportation Security
freight station in Chicago, which will    Administration as a cargo screening
be the company’s largest cargo facility   facility. By the second quarter of 2015,                   Opening DHL’s new ORD facility.
in the United States.                     the facility is expected to be designat-         In addition, the DHL facility is in the
  The three-story building, contain-      ed by the Transported Asset Protec-              process of obtaining a Leadership in
ing both office and warehouse space       tion Association-Americas, as meeting            Energy and Environmental Design
to hold 500 workers, is located in        federal security handling guidelines.            (LEED) certification, a third-party
Chicago O’Hare International Airport’s       The new facility includes two tempe-          verification program for energy-effi-
cargo zone and took about a year to       rature-controlled chambers, totaling             cient buildings. Some of its “green”
complete. Part of the building has        10,000 square feet, plus a 1,000-square-         aspects include high-efficient light and
been designated a Foreign Trade Zone,     foot ambient-temperature receiving area.         water fixtures, use of drought-resistant
which is a secure area under the su-      These areas are designed to handle               plants in the landscaping, spaces
pervision of U.S. Customs and Border      pharmaceutical, biotech or medical               for bicycle storage and fuel-efficient
Protection and considered outside the     products, and the new Chicago facility           vehicles, and use of materials with
customs territory of the U.S. for the     is one of eight certified Life Sciences          low-emitting indoor-air contaminants,
purpose of duty-payment.                  Stations that DHL has completed in the U.S.      among others.           –Randy Woods

 FedEx Trade Networks rolls into Latin America
    FedEx Trade Networks, the freight     area,” said John Gazitua, managing                  The U.S.-to-Mexico trade lane also
 forwarding and customs brokerage         director for FedEx Trade Networks,               includes moving cargo from FedEx
 segment of FedEx Corp., is adding to     Latin America-Caribbean region.                  Trade Networks in Dallas to Mexico
 its trade lanes with Mexico and South       The Germany-to-Mexico forwarding              City, Guadalajara and Monterrey air-
 America.                                 program bridges European businesses              ports by truck.
    There are two new routes origi-       to manufacturing and high-tech hubs in              In addition to airport-to-airport ser-
 nating in Frankfurt, Germany; one        Mexico. The service consolidates and             vice, FedEx trade networks provides
 goes to Mexico City and Guadalajara      moves cargo from Frankfurt Interna-              airport-to-door, door-to-airport and
 and the other flies to São Paulo and     tional Airport to Mexico City and Gua-           door-to-door pricing options.
 Campinas, Brazil. Other new trade        dalajara.                                           Commenting on the expansion of
 lanes are Hong Kong to Mexico City          Frankfurt to Brazil delivers goods to         services to and from Latin America,
 and Guadalajara; and Dallas to Mexico    both Guarulhos and Viracopos Airports            FedEx Trade Networks said that
 City, Guadalajara and Monterrey.         in São Paulo. The air consolidation              trade between the Asia-Pacific region
    “Mexico and Brazil are two strong     service also helps customers avoid               and Latin America has grown at an
 examples of key markets for the          delays by having consignees and their            average annual rate of 20 percent for
 automotive, aircraft and electronic      brokers verify shipping documents be-            more than a decade, while trade be-
 industries, and we are very focused      fore arrival.                                    tween the European Union and Latin
 on providing total end-to-end inter-        The Hong Kong flights go into                 America has doubled to approximate-
 national freight forwarding solutions    Mexico City and Guadalajara five days            ly US$280 billion in the past 10 years.
 and greater market access in the         a week.                                                  		                –Linda Ball

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                                          O‘ahu             Maui                             to the neighbor islands
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                                                                                                                       ACW MARCH 2015   21
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