QUARTERLY MAGAZINE AIR FRANCE CARGO-KLM CARGO VOLUME 21 ˆ NUMBER 26 ˆ SEPTEMBER 2006

cargovision

Emir of EMAIR
Loose threads
Unique-Voice Portal

CASPIAN CURRENTS
 cargovision editorial cargovision contents

© Antoine Gyori/AGP/Corbis
TOGETHERNESS Kazakhstan, Desert Dyke, page 4

We cannot learn too much about mergers, it seems. At AF-KL Cargo, we have been joining forces
for almost a year. Of course, we encounter difficulties but our step-by-step approach is the
backbone of our success. This exercise is also showing us that learning to work internally with our
partner carrier helps us work better externally with our customers.
4 CASPIAN CURRENTS
The Caspian Air Cargo Summit 2006 was held in Baku, Azerbaijan, in May. The event cracked open a win-
dow to Central Asia, giving many Western cargo executives their first comprehensive look at the potential of
this little-known region.

Evidently, we are able to address complex and difficult issues as an integrated team, solve them 14 EMIR OF EMAIR
and start implementing solutions. We are encouraged that our customers seem to trust the road Global logistics giant Expeditors merged its two administrative regions, the Middle East-India and Europe-
we have taken. Our systematic approach is gradually leading to a better offer of our products and South Africa, in 2001. How does Rommel Saber oversee this vast EMAIR region, spanning Europe, the
services. Middle East, Africa, and India?

Other large companies in our business face equally daunting mergers. In this issue, we look at two
of the biggest, Danzas-DHL and Schenker-BAX, to try examine their successes as well as any Romel Saber, 16 LOOSE THREADS
unforeseen consequences. page 14 Fashion retailers rely on airfreight to stock their shelves on time. Effective infrastructure has been in place
for a long time, but changes in retailing are forcing carriers, forwarders and manufacturers to rethink their
We also want you to know about one of the results of our own cooperation. As you know we have logistics. Karen Theurmer reports.
brought our customer service staff under one roof in many stations. At the end of October, your
customer service representative will start using our Unique-Voice Portal system to offer you more
choices on routing, scheduling and booking for your shipments. 19 PEOPLE MAKE A DIFFERENCE
Jean Claude Toth knows time zones. That’s a necessity for the Liaison Manager in a global organization like
Your customers in the garment business are changing logistics strategies to better replenish their SkyTeam Cargo.
retail turnover. These changes and the SkyTeam Cargo products that can help these customers are
the subject of our feature, Loose Threads.
20 MATCHING STROKES
We also write about business prospects in Central Asia. The region is not well known but is a big Mergers are not for the faint of heart, especially when they involve multinational corporations and thousands
place with a lot of activity and could offer an exciting opportunity for the near future. We were of employees and customers. Ian Putzger reports on two of the industry’s active mergers: DHL-Exel and
fortunate to be able to talk with experts in the region for this report. Schenker-BAX.
Claude Sereno,
In the airfreight business, you acquire friends from all over the world. Our forwarder interview in this page 25
issue features Rommel Saber, EMAIR president based in Beirut. We spoke with him in July just 24 UNIQUE-VOICE PORTAL
after he arrived in Expeditors’ London office. Like most companies there, his had a backup office Forwarders will begin to taste the fruits of integration of the Air France and KLM cargo automation systems
and an evacuation plan that involved moving people to Europe and Egypt. Mr. Saber said most of in October. Their Unique-Voice Portal will expand schedule and routing options and speed up bookings.
his people did not want to leave Lebanon. We wish them well and offer our hopes that things
return to normal soon.
08 news & datelines
Sincerely, 22 Ali Khalfan Al Jallaf
26 country file

© Picture Press/Hollandse Hoogte

28 market monitor
GILLES ROCHE 30 postscript
Vice President Area France, Dom-Tom, 31 information and colophon
North & West Africa, Air France Cargo-KLM Cargo

COVER IMAGE

Boy leading a camel caravan

© Keren Su/Corbis Turkeys, page 30

2 cargovision | SEPTEMBER 06 cargovision 3

 Euroavia International held the Caspian Air Cargo Summit 2006 in Baku,
Azerbaijan, in May. By organizing the event, Lars-Gunnar Comén,
cracked open a window to this little-known region, giving many Western
cargo executives their first comprehensive look at its potential.

BY MARK W. LYON

CASPIAN CURRENTS
■ Few outside investors know Central Asia. A blank
spot on most people’s mental maps, this land mass is
larger than Western Europe. About 73 million hardy
people live on the windswept plains, mountains and
deserts that stretch from the Caspian Sea eastward to
China, and from Russia southward to Iran and Pakistan.
Its five nations, Kazakhstan, Kyrgyzstan, Tajikistan,
Turkmenistan and Uzbekistan, lie along the Silk Road,
Central Asia has 15% of the world’s oil and 46% of its
gas reserves. Asia has one-quarter of the world’s
domestic production, Europe has one-third and if you
add Turkey and the Caspian region, you have over half
of the world’s GDP. “Central Asia sits in the middle of all
this production,” says Mr. Çizmeci. “Remember, logis-
tics hubs, not capital cities will govern our future.”
The region’s airports would all like to be logistic hubs,

© Jeremy Nicholl/Hollandse Hoogte

the ancient trading route between Asia and Europe.
Their oil, gas, minerals, agriculture, and hydroelectric
energy have always attracted traders from the neigh-
boring countries. Now, some Western firms are begin-
ning to see in the region a supply of cheap labor, as
well as an untapped market for manufactured goods.
Although Central Asia has great promise, it takes an
adventurous and determined spirit to unlock it, says
Dinesh Prakash, general manager of sales for Swift
Freight International, Dubai.
“Logistics in Central Asia is not as sophisticated as in
Europe or Asia,” Mr. Prakash says. “Air cargo is impor-
tant to these landlocked countries and we think vol-
umes will double in 10 years. But the infrastructure will
© Erik-Jan Ouwerkerk/Hollandse Hoogte
and eye the growing air trade with anticipation. Europe
currently flies about 35,000 tonnes a year to Central
Asia; China, 15,000 tonnes; America, 6,000 tonnes;
and Russia, 4,000 tonnes, says Marco Bloemen, part-
ner in YDL, a Dutch consultancy. “But the growth is lop-
sided. It’s an import market today by about 6:1 for both
Europe and America. Oil and gas traffic is the main car-
go flying to Central Asia from Europe and America,
while fashion goods predominate from China.”
The region’s airfreight traffic shows the seasonality typi-
cal of most markets, Mr. Bloemen says, adding, “While
Iraq and Afghanistan show regular and growing air
imports, Kazakhstan doubled its air imports from
Europe in 2005, to become Central Asia’s largest and

come under pressure because the region needs open
skies as well as modern physical and technical infra-
structures.”
For centuries, if you said “Silk Road,” people thought of
the Italian explorer Marco Polo. Today, they are more
likely to associate Big Oil with the route, which is more
suitably named “The Energy Corridor,” says Yavuz
Çizmeci, president of the Turkish carrier, ACT Airlines.
fastest growing airfreight market.”
LEARNING FROM DUBAI
Central Asia can restore its historic role as an entrepot,
says Igor Smirnov, CEO and president of SRX
Transcontinental, Inc. based in Hallandale, Florida.

4 cargovision | SEPTEMBER 06 cargovision 5

 cargovision caspian currents
R U S S I A N F E D E R AT I O N
Astana

(cont. from p. 5)

Aral
Sea
K A Z A K H S TA N

Bishkek
Lake
Balqash

Almaty
Capt. Smirnov grew up in Uzbekistan and now advises
Western firms seeking access to the region.
“We see opportunity,” Capt. Smirnov says. “We look at
the development in Dubai, another crossroads, and
IN THE PIPELINE
Caspian Shymkent
K Y R G Y Z S TA N
see ourselves evolving into a trade and logistics center ■ Baku is an oil city for the ages. Producer of half of with a single AN-12. It was the first commercial airline
GEORGIA
Sea
Tbilisi Tashkent
CHINA
for this region.” Central Asia’s fast growing private sec- the world’s oil at the beginning of the 20th century, to fly into Afghanistan that year. “A Western airline
ARMENIA
AZERBAIJAN U Z B E K I S TA N
Yerevan Baku
tor, ample energy, and relative political and economic the city’s flame subsequently flickered as the flow of would have paid 20 times more than we did for insur-
TA J I K I S TA N

© Richard Ottema
T U R K M E N I S TA N
Dushanbe stability should lead it towards new production and oil to Western markets dwindled from the landlocked ance coverage,” says Kamran Gasimov, Silk Way’s TRANS-SIBERIAN BAHN
Ashgabat more exports. It has widespread commercial centers, Caspian Sea. However, it began to soar again in July, managing director. “Besides, we know the territory.
IRAN A F G H A N I S TA N PA K I S TA N
no efficient surface connections, and only a few major when the Baku-Tbilisi-Ceyhan pipeline opened. At full We have Afghan pilots who flew for Ariana Afghan
airlines operating to the region. capacity, the BTC, as it is known, will carry a million Airlines and, before that, for the mujahadeen during Germany’s enviable and deserved
Moreover, airfreight offers the potential to turn the barrels a day, about 1% of global demand. A second their war with Russia. reputation for running railroads is
region’s weaknesses into strength, adds Capt. pipeline for Caspian natural gas is due to open by “But our specialty is distributing cargo,” Mr. Gasimov stimulating a round of partner-
WHERE WOULD YOU LOCATE A LOGISTICS HUB? Smirnov. “Our predominance of import traffic, slow year end along the same route. Western oil and gas continues: “We take freight arriving in Baku on 747s, ships that bear watching as mid-
pace of industrial production, and varied customs pro- companies started planning these 1,760-km-long re-palletize it, load it onto IL-76s or trucks, and trans- dle and long-term competitors to
■ Bishkek The airport in the Tajikistan capital has cedures can all be offset by developing strong trade. All pipes in the early 1990s, as Soviet influence in the port it throughout the region. Door-to-door transit the Central Asian airfreight busi-
ICAO Category I been a launch point for military and of the airports are expanding their infrastructure, air region began to wane. By 1999, when the projects time is less than 72 hours.” ness. These agreements look to
Runway: 4,200 x 55 m humanitarian sorties into Afghanistan. traffic control, security, and training. They all offer cargo finally began, many firms were transporting a steady Fifteen offices, called the Euroasian Group of improve service over the Trans-
Cargo terminal: 3,360 m2 Although air services meet ICAO facilities and the authorities understand the importance flow of equipment into Baku on maindeck freighter Companies, represent Silk Air around the world. The Siberian railroad and could even-
Ramp: 242,000 m2 requirements, the airport equipment of the air cargo business.” flights from Europe and America. A regional air cargo Azeri cargo airline operates on all continents and has tually offer a cheaper alternative
Planners regard Mana airport, 35 km needs to be updated. infrastructure emerged to distribute freight throughout interline agreements with most Western carriers flying for some Asia-Europe cargo.
north of the Kyrgyzstan capital, more FREE TRADE PROTOCOL the region. When conflicts flared in Afghanistan and to Baku. It operates 500 flights a year to Afghanistan,
highly now than they did just two years ■ Tashkent Iraq, Baku was the obvious transit point to provide about one-third of its total activity. Its fleet averages In April, the chairmen of Deutsche
ago. Civilian and military logistics ICAO Category II-d Airlines and forwarders see the central Asian republics Western logistics support for both nations. 1,000 flight-hours a month. Two years ago, it flew Bahn and the Russian rail compa-
experts have invested in the ground Runway: 4,000 x 60 m as individual markets. But none of the countries pro- However, runway conditions aside, no airline could 200 tons of freight a month. In 2005, it flew 300 tons, ny RDZ met in Tomsk and agreed
operations and the fuel depot. The Runway: 3,905 x 45 m duces enough traffic to support a thriving venture, says afford the insurance to fly a B747 freighter into either and this year it is averaging 400 tons. to establish a joint logistics sub-
facility is gaining a strong reputation for Cargo terminal: 4,500 m2 Capt. Smirnov. “When the Soviets were in charge, Kabul or Baghdad. For a few canny businessmen in Silk Air now owns three AN-12s and five IL-76s, sidiary that would link Russia with
effective logistics, unburdened customs Ramp: 100 ha there was one set of rules. After they left, it was like a 2001, this smelled like opportunity. including three delivered new from the TAPO factory Deutsche Bahn’s global logistics
procedures and free-trade zone. Uzbekistan is home to a highly skilled revolution, with a new generation managing each gov- in Tashkent. Two more IL-76s, equipped with network. Presumably, this would
However, Bishkek is situated far to the scientific labor force and is the manu- ernment according to its own short-term priorities. If Aviadvigatel PS-90 engines and the latest avionics, give Deutsche Bahn subsidiary
east, and the surrounding mountains facturing hub of Central Asia. The air- the governments would listen to each other, then we INTO KABUL AND BAGHDAD go into operation this year. These aircraft are ICAO Schenker a boost in Russia, even
could be an obstacle for surface trans- port has plenty of cargo capacity, would have success. Stage-4 compliant and can land in any country. though it has been active there for
portation. straightforward procedures, and cen- A group called the Eurasian Economic Community is Zaur Akhundov was director of Azal Avia Cargo, a Meanwhile, the existing Silk Air IL-76s continue to many years with its own national
tralized fueling. It has the region’s best working to bring about changes in the transport sector, subsidiary of state-owned Azerbaijan Airlines. He had have their documents, engines, avionics and airwor- corporations. The agreement
■ Almaty infrastructure, but there is too much Capt. Smirnov says. Their work involves creating a sin- spent 15 years moving freight between Baku and thiness inspected upon arrival in Europe every three could also produce joint logistics
Runway: 4,400 x 60 m government influence for good busi- gle agency to oversee customs, integrating customs Dubai. Mr. Akhundov thought a private company months.Silk Air’s home base, Baku, is planning for centers with rail access in Russia.
Runway: 4,500 x 45 m ness. procedures and preparing a free trade protocol could be more reliable and flexible using private facili- more cargo. When the airport freight terminal One month later, in May,
Cargo terminal: 28,000 m2 between the states. “These countries are young. They ties, and besides, it could get a license free from the expands next year, it will include a facility for export- Deutsche Bahn struck a second
Temporary storage: 5,500 m2 ■ Ashgabat must absorb 10 years of change. It could take time. government. With money from European investors, ing the profusion of perishables grown in the coun- agreement with Chinese Rail that
Ramp: 8,560 m2 Runway: 3,800 x 46 m But it is another opportunity for air cargo to grow in Silk Way Airlines began operations in October 2001, try’s Mediterranean climate. is intended to increase rail traffic
Kazakhstan is the most business-friend- Runway: 2,989 x 60 m Central Asia.” between China and Germany by
ly of the five republics. Its new govern- Ramp: 16 spaces for Boeing- 747 way of the Trans-Siberian railroad.
ment consulted with businessmen The capital of Turkmenistan lies almost
before changing laws and tax codes. on the Iranian border. The country does The route by rail is faster than
The positive climate has improved the well because of its natural gas, but it Cargo Turnover at Selected Central Asian Airports the route by sea. As part of the
infrastructure and given people a sense has a closed economy and its 3 million agreement, Deutsche Bahn will
44 000
of economic success. But Almaty is people are not a big consumer market. support China’s development and
even farther from the region’s geograph- operation of high-speed rail,
ic center than Bishkek. ■ Shymkent Kazakhstan including operations, passenger
About 100 km north of Tashkent, the air- Tajikistan information and reservation sys-
Kyrgyzstan
■ Dushanbe port is the center of business-friendly Uzbekistan tems, safety management, and

© Jeremy Nicoll/Alamy
Runway: 3,112 x 45 m Kazakhstan in its most populated marketing.
Transit zone: 800 m2 province. The area is rich in agriculture 11 000
Cargo terminal: 7,500 m2 and the private airport has room to grow. 3 000
14 000

6 cargovision | SEPTEMBER 06 cargovision 7

 cargovision news around the world
Our quarterly review of
industry news keeps you
abreast of developments
in key sectors around
the world.
INTERMEDIARIES World
PARIS
Tat Express became the 150th company to join The Technology Asset
Protection Association (TAPA), an association of security professionals
formed in 1997 to address security threats to the supply chain. Other
French members include Air France Cargo, La Poste, Geodis and ST
Microelectronics. TAPA’s Freight Security Requirement is the only global
standard for supply chain security. It has certified over 300 facilities world-
wide.
MEMPHIS — ATLANTA
FedEx and UPS both received subpoenas in the ongoing probe by the US
and European authorities into possible antitrust violations in the air cargo
industry. The Integrators join Air France-KLM, American Airlines, British
Airways, Cathay Pacific Airways, Japan Airlines, Korean Air Lines,
Lufthansa, Scandinavian Airlines, Singapore Airlines and United Airlines in
the dock as investigators search for evidence of collusion in the surcharges
for fuel and security.
TOKYO
NYK Group has been busy. It signed a memorandum of understanding in
July for a 50:50 joint venture with India’s Tata Group. In May, NYK said it
would form a strategic alliance with Japan’s Yamato Group to provide inte-
grated logistics to customers in Japan and China. The two Japanese firms
said they would discuss further collaboration of their airfreight forwarding
business in order to expand their customer base.
RANCHO DOMINGUEZ
California-based UTi Worldwide Inc. is talking about acquiring controlling
interests in Newlog Ltd. and Transclal Trade Ltd., two providers of freight
forwarding services in Israel, the West Bank, and Gaza.
8 cargovision | SEPTEMBER 06
TAPA, an association of security professionals
CARRIERS Asia
China
The frenetic pace of change in the Chinese airfreight
market is sometimes difficult to follow. But that is hardly
a surprise when you consider its 17% annual growth
over the past decade. Chinese aviation authorities are
encouraging foreign and private investors to create
additional cargo capacity, but China’s major trade
cargovision news around the world
China Southern Airlines
imbalance with Europe and America mean freighters fly full outbound and
nearly empty homebound. “It’s hard to make a living when cargo rates are
lower than the fuel surcharge,” said one air cargo executive.
Even the specter of short-term overcapacity has not cooled a rapacious
desire to bring home more of the cargo business. Non-Chinese airlines cur-
rently fly two-thirds of China’s international cargo shipments.
China Southern Airlines operates the country’s largest passenger fleet, but
has no cargo business and thus trails its two largest rivals. Shanghai-based
China Cargo Airlines was set up in 1998 by China Eastern Airlines and
China Ocean Shipping Group. It currently operates six MD-11 freighters.
Beijing-based Air China Cargo was formed by Air China and Beijing
International Capital in 2003. It now flies four B747-200 freighters.
These two cargo operators have themselves been a source of speculation.
Shanghai Securities News reported in July that Air China Cargo and China
Cargo Airlines would merge their fleets and crews while maintaining sepa-
rate ownership of their ground facilities. A 50:50 joint venture formed in
Shanghai by year end would compete better than the individual airlines
against foreign carriers. No final decision had been reached by press time,
according to a China Cargo Airlines official.
Meanwhile, back at the Pearl River Delta, Guangzhou-based China
Southern Airlines was talking about starting a cargo venture with Korean Air,
which is seeking access to Mainland China and recently halted its yearlong
talks with China’s Okay Airways. Korean is a SkyTeam member and China
Southern is on track to join the alliance in 2007.
Some of the other cargo players joining
the market include:
■ Shanghai Airlines Cargo, 45%-owned by subsidiaries
of Taiwan’s Evergreen Group, was established in June,
with intent to launch cargo flights in October between
Shanghai and Frankfurt.
■ Great Wall Airlines, 25%-owned by Singapore Air-
lines Cargo started service in June.
■ Yangtze River Express, the cargo unit of Hainan Air-
lines, has attracted investment from Taiwan’s largest
carrier, China Airlines.
■ Jade Cargo, a joint venture between Shenzhen Air-
lines and Lufthansa Cargo, takes off in the fall.
Let’s not overlook Cathay Pacific’s deal to take over
Dragonair. Cathay is intent on increasing its cargo
capacity in China. And the latest air services agree-
ment between Hong Kong and China includes a provi-
sion for each side to name one more airline to operate
freighter services between Hong Kong and 56 cities in
China beginning next March.
INFRASTRUCTURE Europe
BRUSSELS
The European Commission wants to adopt a logistics
action plan in 2007, in order to integrate various trans-
port modes. It hopes this will give the industry a com-
petitive edge as well as diminish the environmental
impact per unit of freight. Transport accounts for 30%
of total energy consumption and 71% of total oil con-
sumption in the EU.
Commission Vice President in charge of transport,
Jacques Barrot said in July: “The EU will continue to
boost rail and waterways for long-distance connec-
tions. We also need to step up our efforts to make road
transport and aviation more efficient and greener. I want
to focus on logistics, green propulsion, and intelligent
transport systems that use the latest technologies.”
cargovision 9
 cargovision news around the world
ONLINE Europe
Bedfordshire
Tired of stuffing promo rate faxes into that binder?
Fuming because this week’s deals weren’t entered into
the system? Hey, 2 million tariffs can’t be that hard to
manage.
Forwarders are ignoring published rates, because air-
lines are trying harder to fill planes with promotional
rates: discounts to specific destinations, time-limited
offers and special weight breaks. Promos are so hot
they constitute 80% of the available tariffs in some
markets. But they prompt forwarders to call airlines
and negotiate every shipment not covered by contract.
Telephone traffic has become unmanageable.
OAGCargo.com has an effective two-part solution. The
first is Inforwarding, an announcement and distribution
service. Airlines pay to send out announcements to for-
warders, who register for free to receive them. The sec-
ond is AFRA, a rate management application for air-
lines to upload rates at no cost and distribute them by
email with PDF attachments in any language.
Forwarders can receive the emails for free, but pay an
annual license fee to query the rates online.
This online system has grown rapidly to 27,000 users
in 22 markets. Italy and Western Canada go online in
September. Currently, 512 airline offices and 164 GSAs
have uploaded rates. These are accessible to 416 for-
warders in 714 remote and 67 headquarters offices. In
some countries, 99% of the airlines have published
rates on Inforwarding.com.
An export manager accessing the AFRA system will
see both contract and promotional rates and preferred
carriers listings in bold face. He sees the latest rates
published by the airlines. If he is a GFX member, he can
view those rates and AFRA will transmit shipment
details entered during a query to GFX for booking. A
similar system is in the works for CPS members. The
system identifies the names of the various airlines’ car-
go products and lets the agent click through directly
into some of their systems. He can create queries for
multiple destinations and departures, generate quotes
10 cargovision | SEPTEMBER 06
for his customers or decide which city to open a new gateway.
An airline would use these two programs to publish rates for specific mar-
kets in any combination. It can quickly upload rates to AFRA by copying
them from an excel spreadsheet and they will expire automatically at the
correct time. The carrier can set effective dates and, with Inforwarding, see
which agents received its offers and in which offices. It can target promo
rates to specific forwarders that book specific lane segments.
OAGCargo.com eliminates the binder and reduces phone traffic. From their
experience with these frustrations, Bart Jan Haasbeek and Dirk de Rooij,
both Panalpina managers, formed Inforwarding BV in 2001. They sold it to
OAG Worldwide in January 2005. http://www.oagcargo.com
To convert A320 jets into freighters
INDUSTRY World
RUSSIA - UKRAINE
Volga-Dnepr Airlines and Antonov Airlines are forming
Ruslan International. The new joint venture follows the
cessation of Antonov’s marketing agreement with Air
Foyle HeavyLift. Ruslan International will provide the
ad-hoc charter clients of Antonov and Volga-Dnepr
with aircraft from either fleet, depending on demand
and with efficient pricing based on aircraft location. The
two airlines will fulfill their existing long-term contracts
UPS Louisville expansion
individually. Ruslan will manage both fleets, with staff
drawn from experienced executives at both airlines.
TOULOUSE
Airbus intends to pay Russian aircraft companies
US$900 million over the next 10 years to convert A320
and A321 passenger jets into freighters. Airbus, along
with EFW (Elbe Flugzeugwerke GmbH), the EADS
freighter conversion center based in Dresden, signed a
letter of intent in May with the Russian aircraft makers
MIG and Irkut. The major Airbus shareholder EADS has
a cooperation agreement with the Russian Aviation and
Space Agency Rosaviakosmos, involving US$800 mil-
lion and dating from 2001. The new agreement takes
that pact to a new level, according to executives from
Airbus. “The Russians certainly have the engineering
capability,” says aviation consultant Johannes
Einarsson. “Boeing had them do all of the engineering
for their Large Cargo Freighters that are being modi-
fied in Taiwan to transport the B787 fuselage sections.”
COTONOU
Last December, Benin Airlines paid US$5 million for
the final assembly and exclusive distribution rights in
Africa and certain Middle East markets of the Utilicraft
FF-1080-300 ER cargo feeder aircraft. The FF-1080
is designed as a high-wing turboprop with a payload
of 10 LD-3s (10 tons) over a 2,000-nmi range and
short takeoff and landing capability. Benin intends to
assemble the aircraft from kits supplied by Utilicraft
once the FAA certifies the aircraft, hopefully sometime
in 2007. Meanwhile in May, Bahrain said it would hap-
pily host the US$25-million base and 250 jobs the
project will create.
cargovision news around the world
GATEWAYS World
LOUISVILLE
UPS will spend US$1 billion during the next five years to expand its main
sorting hub by 60% to 487,000 packages per hour. The project will enable
the terminal to accommodate the A380 and B747-400 freighters the com-
pany has on order.
KRASNOYARSK
Work began in July on a new 4,000-m2 cargo terminal at Yemelyanovo
Airport. Airbridge Cargo has been flying B747-400 freighters into the airport
for two years. It will now base an IL-76 freighter at its regional headquarters
to forward equipment and project cargo to the oil and gas industry on
Sakhalin Island. Krasnoyarsk lies roughly 3,500 km east of Sakhalin, about
half the distance to Moscow.
JEBEL ALI
Dubai is spending US$8 billion on a second airport to handle 120 million
passengers and 13 million tons of cargo annually. When the first of six run-
ways opens in 2007, JXB and Dubai Logistics City together will be the
largest freight and cargo hub in the world, says Sheikh Ahamed bin Saeed
Al Maktoum, chairman of Dubai Aviation Corp. A customs-bonded road
and rail corridor will connect Dubai’s two airports and speed up transfers
with Jebel Ali port and free-trade zone.
PARIS
The French government intends to sell 30-40% of Aeroports de Paris in
order to raise approximately €500 million for the airport operator and €800
million for itself.
cargovision 11
 cargovision news around the world cargovision datelines

OPEN SKIES World
NORTH ATLANTIC
Two steps back, one step forward. Who dances the waltz of the air services
agreement better: China and Taiwan, or Europe and America?
In July, the US Senate Appropriations Committee blocked a proposal that
would have given foreign investors more say in US airline operations,
threatening the completion of an open skies agreement with the European
Union. The EU wants the US to ease foreign ownership restrictions before it
consents to the agreement. The committee blocked the rule in part
because of concerns that foreign investors might try to prevent the trans-
portation of US troops on commercial carriers. The regulation also has
drawn opposition from labor unions, which worry that the influence of for-
eign investors would lead to job cuts.
TAIWAN STRAIT
Also in July, a China Airlines B747-400 freighter carried a load of electronics
equipment from Taipei to Shanghai. It was the first direct cargo flight
between the island and China since 1949. The flight detoured through
Hong Kong’s airspace rather than traveling directly across the 160-km
strait, yet still managed a flying time of 90 minutes. China and Taiwan
reached an agreement in June to allow their carriers to operate 168
roundtrip passenger flights per year and to enable carriers to apply for spe-
cial cargo charters to transport equipment used in Taiwan-funded plants on
the mainland.
TRADE World
This summer showed industry observers some early
signs of diminishing trade and lower profit expectations
for the transportation industry. Technology Partner
International Inc. of Texas said that income from out-
sourcing among US firms in 2006 would fall short of
the US$75 billion figure for 2005. Businesses seemed
to want greater flexibility. Although they signed 92 con-
tracts during the first half of the year, compared to 58 in
2005, the new agreements covered shorter periods
and produced less revenue.
When HACL reported 3% growth in exports for June,
analysts thought they spotted the first signs of a slow-
down in Chinese exports. They pointed to a statement
by Lillian Chan, HACTL’s GM of marketing and cus-
tomer services, who said that the company anticipates
export growth rate for 2006 to be below 5%. Exports
during 2005 grew over 8%. The rising costs of fuel,
interest rates, and Chinese labor are all contributing to
the slowdown.
Two of the largest ocean shipping companies, AP
Moller-Maersk and Evergreen say they expect lower
profits this year. Shipping capacity is forecast to grow
17% this year, and demand less than half of that.
These Cassandras all received a boost from the failure
of the Doha talks. Much of the growth reported by
shipping and airfreight companies is based on 20 years
of trade liberalization -something best not taken for
granted.
OCTOBER 10-11
Fourth Annual Air Transport Trade Conference:
Wings of Russia, Renaissance Hotel, Moscow.
Fax: +7-495-245-4946.
Tel: +7-495-926-5329
gordenko@infomost.co.ur.
MOVING ON World
OCTOBER 10-11
Sixth Air Cargo Economics Conference, Hotel
AMSTERDAM Intercontinental, Madrid.
Arend de Jong, currently SVP Network for KLM, becomes SVP Contact: Euroavia
Marketing and Network for AF-KL Cargo in September, replacing Tel: +46 33 129 841
Bram Gräber, who moves to the Passenger Business and becomes www.euroavia.com.
SVP KLM Benelux.
Mr. Gräber was a member of the AF-KL Cargo Joint Cargo OCTOBER 15-18
Management Committee and played a central role in the integration Council of Supply Chain Management and
of the two airlines’ cargo commercial teams and activities. Professionals (CSCMP) Annual Conference,
Henry B. Gonzales Convention Center, San
Antonio, Texas.
STAMFORD Tel: +1 630 574-0985
Giorgio Laccona, a 30-year logistics industry veteran, became membership@cscmp.org
Chairman and CEO of IJS Global, Inc, a US forwarder based in www.cscmp.org.
Stamford, Connecticut, in July. Cargovision interviewed Mr.
Laccona for the December issue last year, while he was president of OCTOBER 25-27
Italian-based forwarder Savino Del Bene USA, Inc. Cargo Facts 2006, Loews Miami Beach Hotel,
Miami, FL.
Contact: Air Cargo Management Group
BASEL Fax: 206-587-6540
Monika Ribar becomes the new Chief Executive of Panalpina in Tel: 206-587-6537
October. Ms. Ribar is a 15-year veteran of the Basel-based for- kwheeler@cargofacts.com.
warder, serving most recently as its Chief Financial Officer. She
takes over from Board President Gerhard Fischer who has been NOVEMBER 7-10
acting as Interim CEO since January. At that time, Bruno Sidler Airports Council International Annual World
resigned after a veteran manager in the airfreight division was General Assembly Conference & Exhibition,
caught manipulating funds to hide losses. The incident cost Cape Town International Convention Centre,
Panalpina SRF22 million (€14 million). Cape Town.
www.aciworld.aero.
SHANGHAI NOVEMBER 8-9
David Dai was promoted to VP of Corporate Accounts for U- IATA Cargo Revenue Management & Pricing
Freight China. Mr. Dai will also remain assistant general manager of Conference 2006, Ritz-Carlton, Kuala Lumpur.
the U-Freight China Express subsidiary based in Shanghai. Fax: +1-514-874-2654
An expert in freight forwarding, Mr. Dai has extensive experience Tel: +1-514-874-0202
and understanding of the market throughout China. His other sessenweij@iata.org.
responsibilities will include training, information handling, network
establishment, and procuring new business. NOVEMBER 16-18
Air Cargo India 2006, World Trade Center,
Mumbai.
SINGAPORE Contact: STAT Times
Huang Cheng Eng was appointed Chairman and Director of Tel: +91 22 2757 0550
Singapore Airlines Cargo. He succeeded Fock Siew Wah, who was www.stattimes.com/ACI2006.
at the helm of Singapore Airlines Cargo since January 2004.
Mr. Huang managed Singapore Airlines’ cargo organization before it DECEMBER 5-6
became a subsidiary, and was most recently SIA’s EVP of marketing IATA Cargo in Emerging Markets: India 2006,
and the regions. Taj Mahal Hotel, New Delhi.
Fax: +1-514-874-2654
Tel: +1-514-874-0202
sessenweij@iata.org.

12 cargovision | APRIL 06 cargovision 13

EMIR OF EMAIR
BY ANDY WESTON
Rommel C. Saber is president
of Expeditors International’s
EMAIR region (Europe, Africa,
Middle and Near East and
Indian Subcontinent). His previ-
ous positions with Expeditors
included svp of global air cargo
and svp of sales and market-
ing. Mr. Rommel established
Expeditor’s first offices in the
Middle and Near East when he
joined the firm in 1990. EMAIR
now includes 64 offices with
over 2,600 staff.
Mr. Rommel was born in
Lebanon and is a US Citizen
with a degree in finance and
economics from the University
of San Francisco. He enjoys
tennis, volleyball and hunting.
14 cargovision | SEPTEMBER 06
In 2001, Expeditors merged its two administrative
regions, the Middle East-India and Europe-South
Africa. Rommel Saber, president of renamed EMAIR
(Europe, Middle East, Africa and India Region), over-
sees the operation’s 2,800 staff members from his
offices in London and Beirut.
How do you manage such a large
territory?
We subdivided the area into five regions, with a regional
VP in charge of each one. Our man in Dubai manages
the Indian subcontinent and Gulf region. A Regional VP
in Beirut manages the Near East and North Africa,
including Turkey, Greece, and Egypt. The UK, South
Africa, Mauritius and Madagascar are managed from
London. We have an RVP in Frankfurt, who is in charge
of Germany, Benelux, and Central and Northern
Europe, and another RVP in Paris, who oversees
Southern Europe. In the African States, we have an
agency network that is managed from Johannesburg.
The garment trade is a major part of your
business. What are the latest
developments?
We are seeing a shift in the sourcing of garment produc-
tion. This business closely follows costs, and labor is the
biggest cost. In general, retailing is odd because the
vendors move so quickly. We have seen them fold a fac-
tory and relocate the entire operation to another country
six weeks later. They can do this because their capital
exposure is small. They just pack up their sewing
machines, put them into a sea container and disappear.
They simply go wherever labor costs, visas, quotas and
duties are most favorable. We saw 500 people lose jobs
when garment factories folded in Madagascar and
moved elsewhere. I guess the positive side is that 500
people elsewhere got new jobs. More specifically, we
have seen a trend among garment customers to use
replenishment programs. Instead of manufacturing
500,000 pieces, they make a few test articles in limited
colors and sizes. If those sell well, then they start manu-
facturing more of them. Therefore, they move manufac-
turing closer to the sites, to save on stocking, inventory
and management costs. In the case of Europe, you see
more of this production going to Turkey and Egypt,
because they are closer than India and China.
How do you capitalize on these trends?
Replenishment involves greater strategic planning than
just deciding to go manufacture in Asia. I think that
retailers are becoming more efficient and professional.
They have tight selling windows and seasons, and that
involves a lot of planning. We help them organize their
airfreight to match their selling window. Of course, most
of these goods travel by ocean and we help plan their
sea freight, but their tight selling windows or late pro-
duction drive the demand for airfreight.
What do you discuss when you are
planning with retail customers?
Usually, some customers give us hints. They say: “We
expect a strong quarter” or “We expect a middle growth
quarter.” We help them translate that into a percentage of
change relative to the previous quarter. Other customers
give us very precise estimates for their trends. Then we
talk with the carriers, book the space, and find alternative
solutions if demand exceeds supply or vice versa.
© Steve Vidler/ANP
COMPANY PROFILE
Founded as a single-office ocean
forwarder in Seattle, Washington,
in 1979, Expeditors is currently
© Wolfgang Kaehler/Corbis
one of the world’s leading global
logistics companies.
Operating through 226 locations
worldwide, Expeditor’s services
include vendor consolidation, air
Westminster Bridge near London Eye (above) and Lionstatue in the Great Court, British and ocean freight forwarding,
Museum (right). customs brokerage, insurance,
ocean consolidation, distribution,
and value-added services.
That’s difficult, when manufacturers don’t How is the garment traffic doing in other regions?
know how much capacity they will need. Egypt and Turkey have been doing well over the past With a global workforce in excess
Yes. We try to encourage customers and vendors to 18 months, for the reasons I mentioned. India is boom- of 10,000, the company earned
specify exact demand, but it is hard to look ahead in ing. It’s the next competitor to China. We opened 17 revenue to the sum of US$3.9
retail. We have three to five months of productivity offices there, because you have to be in many places to billion in 2005.
planned, and the space is booked. But if the vendor support local vendors, who like to deal with local con-
does not deliver, the airlines don’t like it. Especially tacts. Madagascar, Mauritius and Lesotho have all seen Last year, Expeditors was named
when there is so much demand from areas like India big slowdowns, particularly with their North American Best Managed Transportation
and Pakistan. customers, in spite of their duty advantage with AGOA. Company by Forbes, and received
When the quotas were lifted in January 2005, it hurt two Quest for Quality awards from
them. In addition, logistics is not easy from those coun- Logistics Management magazine.
Do you have to pay the carrier anyway? tries, so people shifted production to places with better
We do have block space agreements, where you pay uplift. We have not yet seen a trend for manufacturing The Wall Street Journal lists
whether you use the space or not. We prefer confirmed to return, or for new competition in other areas. And I’m Expeditors as No. 1 in their share-
space, because a block space agreement is an asset not sure we will. holder scorecard for Delivery
at risk. But there is always more demand than supply in Jordan is another place that has witnessed a major Services.
the peak season. However, we really avoid charters. boom. It has a duty-free exemption to the US. The only
They are expensive and the last thing customers want. problem I see for Jordan is poor logistics. They have For further information,
Unfortunately, they are sometimes necessary. insufficient lift from Amman. visit www.expeditors.com.
cargovision 15
 Fashion retailers rely on airfreight to stock their shelves at the right
time with the most desirable garments. An effective infrastructure
for the garment business has been in place for a long time.
However, changes in retailing are forcing carriers, forwarders and
manufacturers to rethink their logistics.
NO LOOSE BY KAREN E. THUERMER
THREADS ■ In the movie “The Devil Wears Prada,” Miranda
Priestly, the cynical editor of a top fashion magazine,
decides whether a collection succeeds or fails by
simply pursing her lips. In real life, however, time-to-
market more often makes or breaks a garment’s suc-
cess in the highly competitive fashion industry.
If a fashion item arrives in stores just several days too
late, sales are lost and it never achieves its full poten-
tial, say industry participants. Reliable air transport is
therefore crucial for the garment trade. Yet air cargo
requirements can be as complicated and dissimilar as
the two types of retailers the industry serves: high-
end and mid-end fashion brands.
FLEXIBLE BUT SECURE
High-end retailers, like Gucci, Prada, Chanel, and
Hugo Boss, ship new collections each season.
“When they ship, they move new ranges from their
production centers into their stores during several
weeks for each season,” says Cedric Millet, Director
Cohesion and Fashion Industry at for AF-KL Cargo.
These retailers gauge the day of the week when the
shipments must move, and then ship in up to 10-ton
lots. “Replenishment is not so important,” Mr. Millet
says. “They do not have as many changes of season
or style as we see with the mid-end fashion brands.”
High-end retailers can also be more flexible on ship-
ping dates and so look for leeway on rates. Most of
them produce 80% of their collections in their country
of origin or surrounding countries, i.e. Europe and the
United States, and only 20% in Asia. Therefore, they
do not encounter the capacity limitations that often
© Yves Gellie/Corbis
trouble the mid-end fashion brands.
Shipments generally move from distribution centers
located close to production sites. For example, Gucci
Group’s Luxury Goods International manufactures
leather accessories, handbags, belts, shoes, ties,
< Chinese employees on the factory floor.
16 cargovision | SEPTEMBER 06
scarves, ladies wear, and men’s wear in Italy. Gucci
warehouses them nearby, at its Bioggio Logistic
Centre in Lugano.
“From here it is shipped all over the world,” says Luca
Mavaro, Luxury Goods International’s General
Manager.
This segment of the retail trade is very demanding
when it comes to handling quality and security. These
companies invest heavily in the design, materials and
craftsmanship needed to make their top-name
brands. They are likely to select their airfreight suppli-
ers based on their ability to protect them from theft
and pilferage.
For these shippers, the SkyTeam Cargo partners air-
lines, including AF-KL Cargo, offer Variation Safe 2, a
service that provides additional security measures
during acceptance, transit and delivery, including
added security during aircraft loading and unloading,
and dedicated storage in a SkyTeam Cargo partner
airlines warehouse.
EVENT CONTROL
Cedric Millet:
Meanwhile, mid-end fashion brand retailers, like “Replenishment is
H&M, the Gap, and Inditex (Zara), focus on improving not so important,They
their supply-chain management by using airfreight to do not have as many
increase product visibility, to lower costs by reducing changes of season.”
inventory, and to secure better margins.
Good supply-chain management is important to
these retailers, because they source garments from
low-cost producers in China, Bangladesh, India, Sri
Lanka, and Vietnam.
Inditex, the Spanish clothing retailer, originally pro-
duced all of its garments in Portugal and Spain (or
surrounding countries), in a style that closely follows
the trends of the Milan fashion industry. By 2004, the
company had outsourced more than 20% of this pro-
duction to China, Bangladesh, Vietnam, and India,
cargovision 17
cargovision NO LOOSE THREADS cargovision interview

and by 2005 had increased outsourcing to over
30% in Asia.
Even after shifting one-third of its production to
Asia, Zara still ships all its goods to its three
Spanish distribution centers in Spain (Arteizo,
and Zaragoza for example) from where it is
shipped to close to 3,000 stores worldwide
twice a week.
service performance is one of the company’s
top priorities.
“If that service fails, it means a one-day loss in
sales,” Mr. Magalhaes says. “And the next
round of production will also suffer, owing to
reduced supply levels. Our success is based
on fast distribution service. High airfreight costs
must be compensated with high performance.”
Jean Claude Toth knows time zones. That’s a necessity for the Liaison
Manager in a global organization like SkyTeam Cargo. His workday
ments flown out of Asia were originally sup-
spans all continents covered by SkyTeam Cargo members Aeroméxico
posed to be shipped by sea.”
Cargo, Air France Cargo-KLM Cargo, Alitalia Cargo, CSA Cargo, Delta
Air Logistics, Korean Air Cargo, and Northwest Airlines Cargo.
TO CHINA AND BACK
BY MARCIA JEDD
When the World Trade Organization lifted textile
quotas on January 1, 2005, fashion retailers
“MANAGING my agenda to attend all
the various SkyTeam Cargo meetings is one of the most
challenging parts of my job,” says Jean Claude Toth,
“We have so many meetings.” As the only fully dedicated
staff members on the payroll of SkyTeam Cargo having his
office at Paris-Roissy Airport, his main task is to liaise
among members on all the initiatives and progress made
within the cargo alliance. He acts as the General Secretary
to the Cargo Excutive Board, organizes the various execu-

Zara store managers are responsible for re-

ordering the clothes. If a garment is selling well,
it must be available within 48 hours. Carlos
Magalhaes, the Managing Director of Zara’s
forwarder, Van Esch Iberica Transitarios, Ida,
explains how the company uses a just-in-time
logistics system.
Requests from stores arrive by 14:30 on
Monday afternoon. The distribution center
processes them by 16:00, and ships them out
at 03:00 Tuesday morning. The freight arrives
and clears customs on Wednesday morning,
and is delivered to the stores the same after-
noon.
Customers can buy most of Zara’s garments in
six colors and seven sizes. The Zara stock-
keeping system handles about 300,000 new
items each year. Not surprisingly, airfreight
“HALF OF THE SHIPMENTS FLOWN OUT OF ASIA WERE
ORIGINALLY SUPPOSED TO BE SHIPPED BY SEA.”
SkyTeam Cargo’s Cohesion product offers tai-
lored logistics solutions to companies making
regular, just-in-time shipments. Customized
100% for specific traffic, Cohesion comes with
a three-way contract linking the shipper, the
forwarder and the airline.
“In Europe, we have dedicated teams at
Charles de Gaulle and Schiphol to monitor
each shipment and accommodate specific
requirements,” says Mr. Millet.
Standards are high for Cohesion’s solutions,
because they are tailor-made for the for-
warder’s customer. “We have a quality ratio of
98% flown as booked,” Mr. Millet says.
For traffic coming from Asia, schedules can be
uncertain and quota issues may interfere with
movements. In this case, the airline needs to
be flexible in terms of capacity. “There is always
a bottleneck,” Mr. Millet says. “Half of the ship-
© Jerry Arcieri/Corbis
smelled a windfall. So did nations that could
produce garments at low-cost and in high vol-
ume.
SKYTEAM CARGO tive meetings, is the central point of communication and
maintains the library of files necessary to acces and run
the alliance effectively by the members. Mr. Toth supports
Previously, quotas placed on low-cost produc-
er nations prevented them from exporting too
many garments to developed countries. Near
SKIPPER the SkyTeam Cargo executives in the coordination of the
alliances three major working groups: 1. Operations &
Purchasing, 2. Sales & Distribution, and 3. Marketing &
the end of the fashion season, this situation Communications. He monitors progress and performs
would often cause a retailer to search the globe intra-airline communications among the working groups’
for a new low-cost producer in a nation with an goals and achievements as set by the executives. Offering
unfilled quota and the ability to export goods to the full SkyTeam Cargo product range with special focus
its customers. on promoting the prime product Equation and newly
“Even though China had a lot of capacity for introduced Variation “Pharma” product.
fashion goods, they were restricted by the quo-
tas,” says Mr. Millet. The SkyTeam Cargo carriers are working on expanding
Many countries found ways to get around quo- the Equation network and enhancing electronic booking
tas. Some shipped garments to countries in and tracking for their entire product portfolio. This
the Indian Ocean region, where they could be demands close coordination. “My job involves working
labeled or re-labeled as the country of origin. with many different cultures, people, and working styles,”
This loophole disappeared in 2005, however, Mr. Toth explains. “I find it enriching.” The Liaison Manager
and countries in and around the Indian Ocean is an expert at connecting people, whether by phone or in
suffered as China, with its boundless supply of person, from Seoul to Prague. Meetings are essential for
cheap labor, cornered the bulk of the garment moving projects forward, so when Mr. Toth joined
business. SkyTeam Cargo last year, he and his colleagues began
“The growth rate for garment production in scheduling more sessions to improve their effectiveness.
China was around 50% in 2005; and India
stood at 25%,” Mr. Millet recalls. Apart from their monthly teleconferences, the working
However, as China flooded the market, groups will meet in person at least 10 times this year. Add
restraints were introduced again. Garment pro- to this the meetings between the Liaison Manager and the
duction and export appears to be swinging Cargo Executive Board, and you get a total of nearly 25,
back to Bangladesh, Sri Lanka, Pakistan, and Mr. Toth says. Apart from the Cargo Executive Board and
Thailand. Revaluation of China’s currency has the three working groups there are also two project teams
raised prices and is contributing to the shift. active, meaning a total of 50 people are somehow
“So far this year, India’s exports have risen involved or connected with Mr. Toth as the Liaison
about 50%, and China’s about 25%,” says Mr. Manager of which quite a number of them on almost a
Millet. “Bangladesh is particularly attractive daily basis. Another component of Mr. Toth’s role is moni-
because companies do not pay taxes there.” toring overall alliance performance and providing statistics
But garment shippers should be wary. There is to the executives. He collects and summarizes the main
little airline capacity from places like indicators during the monthly SkyTeam Cargo
Bangladesh, unlike China, which is well served. Coordinators teleconferences and in the quarterly Cargo
Many companies operating to these new pro- Executives Board meetings.
ducing nations are facing bottlenecks and pay- Mr. Toth has held various cargo positions since he began
ing high prices to fly out their products. working for Air France Cargo in 1970, most recently as

Manager Sales Support for the Variation product.

His family springs from French, Hungarian, Romanian,
and Lebanese lineage, and he was born in Brazzaville,
Congo. He speaks his native African dialect, along with
French, English and Spanish.

18 cargovision | SEPTEMBER 06 cargovision 19

 MATCHING STROKES Mergers are not for the faint of heart, especially when
they involve multinational corporations and thousands of
employees and customers. A colorful blending of two
logos on a dinner napkin has, in reality, far-reaching and
often unforeseen consequences for customers, staff,
and management. Ian Putzger looks at progress in two
of our industry’s active mergers.
BY IAN PUTZGER

Thomas Lieb:
“Forwarders do not
normally plan a strategy
in the middle of an
integration.”
■ Combining Exel and DHL Danzas involves 950
separate integration projects. Schenker and BAX set
up no less than 14 integration teams for cross-func-
tional and administrative areas.
Nearly all of the board members in these companies
are involved in the steering committees for their glob-
al integration, reflecting the need for top management
to lead in process, says Dr. Thomas Lieb, head of
Schenker’s global air and sea freight, and a member
of its management board.
Mindful that a focus on integration invites competitors
to poach customers, the wedding parties in these
two marriages all want to complete their unions
quickly. It’s not always possible. Besides the planning
and execution of a merger, DHL must also develop a
long-term strategy based on discussions with parent
Deutsche Post.
“Forwarders do not normally plan a strategy in the
middle of an integration,” says Chris Fahy, Chief
Executive and President of the DHL forwarding
organization.
Still, after mapping out basic integration strategies,
both the DHL-Exel and Schenker-BAX began with a
similar route: they allocated senior management
responsibilities first. DHL had determined all manage-
ment positions by February, while Schenker had allo-
cated responsibilities for the regions by March and
the first-level country organizations by July.
CULTURE CLASH
In both mergers, the companies involved must
absorb differences in business cultures and philoso-
phies. While Exel’s focus was on supply-chain solu-
tions, forwarding was center stage at DHL Danzas.
This not only produced different customer profiles,
concentrating the large clients at Exel, but also affect-
ed accounting and performance metrics. Exel meas-
ured profitability on the country level, while DHL
measured it on products and branches. “Exel has a
more integrated sales approach, whereas DHL has
been more product-focused,” Mr. Fahy says.
The Schenker-BAX union has little overlap in trade
lanes and customers, which could make for an easier
integration in theory, but it still faces a challenge
merging corporate cultures. Schenker has fostered
an entrepreneurial style by empowering its employees
over the years. BAX has exerted central control, due
perhaps to the structure of its air and ground network
in North America, Dr. Lieb suggests.
Mr. Fahy sees room for different philosophies to co-
exist, but not in terms of process. The merger with
Exel follows the processes of DHL, rather than mixing
the two companies’ approaches and portfolios. The
DHL Danzas organization and processes form the
matrix for DHL Global Forwarding, the name of the
combined DHL-Exel entity. But some decisions are
unresolved in Asia, says Mr. Fahy. “Exel was powerful
in Asia. In some countries there, where we were simi-
lar in size and strength, we must still define our
approach.”
IMERGE
On the IT side, the migration is straightforward: Exel is
shifting to DHL’s Logis system. This has improved the
productivity of Excel employees by 8%, Mr. Fahy
says. Exel will also adopt its partner’s service portfo-
lio.The Schenker-BAX axis is also moving towards a
common platform. “There will always be specific
brands in North American or European LTL,” says Dr.
Lieb. “However, ‘BAX goes Schenker,’ as the adver-
tising slogan says. There will be only one air and one
sea freight brand in the end.”
Both Schenker-BAX and DHL Global Forwarding
have the muscle to use dedicated freighters. They
see opportunities, but both Dr. Lieb and Mr. Fahy
stress that working with commercial carriers remain
their first choice.Both men contemplate closer ties
with preferred carriers. Some adjustments will tran-
spire in the months ahead, but they expect their basic
strategies to remain intact, including tie-ins at the cor-
porate level. Gateway strategies will also endure, but
with some adjustments over time. “It will take 18 to
24 months before we have resolved the gateway set-
up,” Mr. Fahy says. Chris Fahy:
Airlines view mega mergers with apprehension: new “Exel has a more integrated
buying power may mean adjustment in capacity and sales approach, whereas
rates. Mr. Lieb dismisses such concerns, pointing out DHL has been more
that the Deutsche Post World Net is the only for- product-focused.”
warder commanding a double-digit share of airfreight
spending.
“Both DHL and Exel believed that they didn’t need to
be aggressive on rates,” Mr. Fahy says. “We were
and will continue to be aggressive about perform-
ance, security, reliability, and standards.”
Senior executives at DHL Danzas and Exel advocat-
ed Cargo 2000. Mr. Fahy does not intend to present
carriers with an ultimatum to meet those standards.
Instead, he is looking outside the airline-forwarder
axis for solutions. Being married to an integrated
express carrier offers him insights into advancing
technologies like RFID. “If we can’t move ahead with
the industry, we may move ahead by ourselves.”

20 cargovision | SEPTEMBER 06 cargovision 21

 cargovision a week in the life of
ALI KHALFAN AL JALLAF Ali Khalfan Al Jallaf has been the Director of the Dubai Cargo Village in the United Arab Emirates
since 1995. Last year, throughput at this airport facility, which falls under the auspices of the Department
of Civil Aviation of the Government of Dubai, totaled 1.3 million tons of cargo; 18% more than in 2004.
by PHILLIP HASTINGS
Saturday
DUBAI
Saturday is the start of the working week in
Dubai. It usually takes me 10 minutes to
drive from my home to the office at the air-
port, although it can take half an hour in
heavy traffic. I arrive at 07:30, but before
I go into the office, I check around the cargo
village just to see what is going on. Once in
the office, my secretary lists my meetings
for that day, so I can prepare for them. Then
I check my email, before opening my office
for staff to come in and discuss their needs,
whatever approvals they require, and so on.
Government sector working hours are
07:30 to 14:30 so I normally do not take a
lunch break. When I leave the office, I go
home. I check my email again in the after-
noon and evening. Dubai Cargo Village
operates 24 hours a day.
Sunday
DUBAI
My first task today is to give instructions to
my staff. I have an offsite meeting with the
Police Department, one of our regular meet-
ings with partners at the airport, like the
customs and immigration departments.
Then it is back to the office to receive a del-
egation of 20 people from Singapore. They
are representatives of logistics companies
who have come to see how they can do
business in Dubai. Afterwards, it is back to
the office to be interviewed by a journalist
© Celia Peterson
writing a feature about air cargo. Finally, I
have a meeting in my capacity as Chairman
of the FIATA (International Federation of
Freight Forwarders Associations) 2007
22 cargovision | SEPTEMBER 06
World Congress in Dubai. I meet with the
management of that event, to discuss the
promotional items we are going to present
to the 2006 World Congress in Shanghai
this September. Then I head home, and lat-
er catch up with my email.
Monday
DUBAI/ISTANBUL/TUNIS
Following my normal workday routine, I
have a weekly meeting in the office with all
the other Department of Civil Aviation direc-
tors. We discuss business at the airport and
future developments. Typically, I would
spend the rest of this day receiving visitors
and dealing with routine business matters.
However, today I fly to Tunis for a two-day
FIATA Region Africa Middle East Field
Meeting. I take the four-and-a-half hour
flight to Istanbul, where I transfer to the two-
and-a-half-hour flight to Tunis.
Tuesday
TUNIS
I spend the day in the RAME meeting with
60 delegates from 15 countries. If I were in
Dubai, I would usually meet with other car-
go village managers to keep them informed
about the items discussed at the Monday
directors’ meeting. They also report to me
about the day-to-day activities under their
responsibility.
Wednesday
TUNIS
This is the second day of the RAME meet-
ing. Back in Dubai, this would be a normal
working day in the office, although I would
also try to find time to visit colleagues
around the airport, to keep up with what
is going on.
Thursday
TUNIS
I spend the day talking informally with other
FIATA delegates in Tunis, to keep up the
personal contacts that are so important in
our business. In Dubai, Thursday is the first
day of the weekend, so when I am there I
like to spend time on personal and family
matters. I have a wife and six children, rang-
ing in ages from 6 to 21. I sometimes take
my family out to my small farm in Dubai for
the weekend. Other times, we go swimming
at a club of which I am a member. In the
past, I used to be very busy with work.
Then I realized that I needed to change
and spend more time with my family.
Friday
ISTANBUL/DUBAI
On the way back from Tunis, I have to
change planes in Istanbul, so I spend the
day there, looking round the city and the air-
port cargo village. I take an evening flight
back to Dubai and return home. On a nor-
mal weekend in Dubai, I would usually
spend the first part of the morning at home
before going to the mosque with my chil-
dren for Friday prayers. Most of the rest of
the day would be spent with other members
of my family. Normally, we meet for lunch at
the homes of various family members
around Dubai, and stay there until sunset,
when everyone heads home.
cargovision 23
 UNIQUE Forwarders will begin to taste the fruits of
the integration of the Air France Cargo and

VOICE
KLM Cargo automation systems in
October. The Unique-Voice Portal will,
during a single phone call, give information
on schedules, routing options and rates
from the reservation systems of both
© Google earth

PORTAL airlines. This marks the first milestone in

© Google earth
the evolution of the joint future cargo reser-
vation system for AF-KL Cargo.
Airport Charles de Gaulle, Paris Airport Schiphol, Amsterdam
BY MARK W. LYON

Jean-Charles Foucault:
“It gives our people
better information so
they can give customers
better answers.”
■ On October 24, your booking options will double
with AF-KL Cargo. On that day, your AF-KL Cargo
customer service representative will begin using the
Unique-Voice Portal (UVP) to offer you the best
routes, schedules and prices for your shipment. This
new software will offer a combined overview of all
choices available in both the Air France Cargo and
KLM Cargo networks.
“The first and most important thing our customers will
notice about UVP is improved efficiency,” says Jean-
Charles Foucault, SVP of Sales & Distribution at AF-
KL Cargo. “It gives our people better information so
they can give customers better answers. It helps
speed up our handling of their requests or, if that
request cannot be fulfilled with one carrier, to immedi-
ately offer alternative solutions with the other.”
With UVP, your representative can also review
account information, contracts and allocations with
you. In addition, with the aid of new pricing software,
he or she can book your shipments in either the Air
France Cargo or the KLM Cargo reservations system.
“Another benefit for customers is that UVP gives the
service representative information on all flights and
capacity,” says Mr. Foucault. “Having access to this
data during the last few days before departure, will
allow him to contact his customers and offer them
options he knows they want. This is especially useful
for customers who need to access our capacity and
frequencies during the high season.”
“We have a proactive relationship with our customers
and use the phone for this kind of selling,”
Mr. Foucault adds. “But that doesn’t mean we won’t
continue to develop e-tools and continue using CPS
and GFX, giving our customers a choice. E-booking
is still part of our strategy.”
TWO FOR ONE
“UVP is the first result of the AF-KL Cargo integration
that customers can actually experience,” says Claude
Sereno, SVP of Strategy & Development at AF-KL
Cargo. “The name signifies our unique voice to each
customer, about the way we respond to the request
for capacity. Still, it is only the tip of the iceberg, the
first visible part of the AF-KL Cargo integration that
began in 2005, and the first result designed and
implemented by our program management organiza-
tion.”
“UVP will use core modules of the joint future cargo
reservation system,” Mr. Sereno continues. “We had
to complete two of these modules first - the rating
and pricing database and the customer database -
before we could implement UVP.”
“The new application, called a web portal, is supplied
by Unisys on contract,” explains Mr. Sereno. Portals
use web technology to gather data from many
sources and display them in a single workspace on
screen. When an AF-KL Cargo customer service rep-
resentative enters a capacity request, UVP relays it to
databases in both the Air France Cargo and KLM
Cargo systems. UVP integrates the responses and
sorts them into a single schedule. When the repre-
sentative enters the customer’s name, UVP adds rat-
ing and pricing information from the airline systems
onto the display. Then, after selecting a service, the
representative uses the UVP screen to access the
reservation system of both airlines and book the
shipment.
EXPRESS LANE
“UVP is an application that will be used in remote
locations, in any market, offering access to the legacy
systems of both carriers,” says Mr. Sereno. “It was a
major challenge to achieve response and perform-
ance levels that will satisfy end users wherever they
may be.”
Data traveling between the end user and the legacy
systems takes a longer path when it goes through
LIVE
UVP than when it travels over a direct link. Also, some ■ The Air France-KLM Cargo
of the data needs translation between formats using Internet site went live recently,
web technology called XML. Therefore, the airlines combining information about
gave considerable attention to avoiding Internet con- both airline networks and
gestion and reducing translation time. services in one place and
making online searches
The result for your AF-KL Cargo customer service easier and faster. Merging the
representative is a responsive system that simplifies two airline websites was seen
his business with you. It is also an important step for- as a milestone in the AF-KL
ward in merging the former Air France Cargo and Cargo integration.
KLM Cargo organizations into a single team, present- Site access for customers in
ing one face to the customer. the US is redirected automati-
cally to a KLM Cargo USA site
or a US Joint Venture site for
Air France Cargo.
www.afklcargo.com
Claude Sereno:
“UVP will use core
modules of the joint
future cargo
reservation system.”

24 cargovision | SEPTEMBER 06 cargovision 25

 cargovision country file

TURKEY
BY GERRY BROWN

NEED TO KNOW TRAVEL TIPS

■ ■
Turkey: Secular Republic Personal relationships are
since 1923. highly rated, and no visitor
■ should come straight to the
Population: ± 70 million. A reflection extends the minarets on Istanbul’s Blue Mosque. business in hand without
■ exchanging a few friendly

©Lynsey Addario/Corbis
Economy: On October 3, words first.
2005, accession talks formally ■
began to join the EU. US dollars to euros. The move was inflationary and car- Turks prefer to communicate

© Richard Hamilton Smith/Corbis

■ Ms. Aysecan Hakverdioglu
The path to membership is
expected to be long and
bumpy. Strong activity in the
private sector continues to
boost the economy and GDP
growth is expected to remain
above 6% in 2006 and 2007.
But recent problems see the
return of high inflation.
To sustain growth the govern-
ment has to ensure domestic
and international confidence
with credible macro-econom-
ic policy and a regulatory
framework that can cope with
potential financial risks.
Sources:
OECD and Oxford Business Group
SEA FREIGHT BENEFITS
Turkey Operations Manager
Eagle Global Logistics/Turkey
Istanbul
“Some 80% of our airfreight is bound for America,
with increasing exports of aero, automotive and com-
puter products, compensating for the decline in tex-
tiles and garments. Pharmaceuticals, computers and
general supplies are the main imports. More of our
clients look for the sea freight cost advantage where
possible, unwilling to pay ever-increasing air sur-
charges. If the trend continues, clients will soon focus
on airfreight for long-haul flights and time-sensitive
and domestic deliveries only. I believe, however, that
Turkey’s stability will enable it to be an excellent logis-
tics gateway, rivaling Dubai and the Gulf States. I can
even see Istanbul taking over Holland’s present role
as an IT logistics hub.”
INDUSTRY CONCERNS
Sinan Mutlu, Country Manager
Balship Hava Ve Deniz Tasimacilik Tic. A.S.
Istanbul
“Many industry concerns date back to early 2005,
when airfreight rates changed from being quoted in
go uplift declined, causing airlines to slash rates and directly, so you are advised to
chase after each other’s market share. This is the phone rather than write to
Turkish airfreight market today, where yield margins are contacts.
barely sustainable. A return to stable rates is needed, Daily life in modern turkey (above & below) ■
and we need to stem the loss of production output to In the cities, both men and
countries like China, which offer incentives to export women should dress as they
manufacturers. We should do the same by encouraging tantly, long-standing ties with shippers and forwarders. change the dogfight mentality. Above all, standards would under similar condi-
local businessmen to stay at home and invest in east- I am optimistic that Istanbul will meet the conditions to need to match Europe.” tions (social situation, climate)
ern Turkey, where the operating cost base is much low- become a regional transit and logistics center.” elsewhere in Europe.
er than around Istanbul.” ■
ORDERS DELAYED Punctuality is expected and
DOGFIGHT MENTALITY Suleyman R. Ture appreciated in Turkey.
TURBULENT TIMES Ufuk (Frank) Sumerler Managing Director - Turkey ■
Mehmet Eraltan Regional Director Airfreight - Middle East, Expeditors International Always allow enough time
Local Manager Turkey, Israel, Bulgaria and Central Asia & Turkey Istanbul between meetings - 2 to 3
Romania, Air France Cargo-KLM Cargo Kuehne + Nagel Nakliyat Ltd. Sti. hours minimum.
Istanbul Istanbul “This summer’s lira devaluation and the return of 12% ■
interest rates are noticeably affecting imports. Local Hours are likely to vary during
“Airfreight in Turkey is facing turbulent times. Air exports “I am hopeful that the catastrophic airport fire will be a buyers are delaying orders and adopting a ‘wait-and- the month of Ramadan.
have bled due to the loss of manufacturing capacity to catalyst for much needed change. Already, the previ- see’ attitude. Such market sentiments cut deeply in this ■
China and other low-cost countries, a strong lira, and ously on-hold ‘Cargo Village’ proposal for Istanbul’s crowded expeditor marketplace with poor margins. Friday is the Muslim holy day.
local exporter production problems. More recently, the Ataturk International Airport has been revived. We con- Textiles and garments, a staple Turkish air export to ■
situation has been compounded by working in tempo- tinue to serve global customers pragmatically, but we North and Central America, is declining. To sustain Government office hours are
rary cargo buildings, the return of inflation, and sudden want to reach out more, particularly in vertically inte- organic business growth, we are successfully promot- generally between
lira devaluation. Yet out of adversity opportunities are grated sectors such as pharmaceuticals and high-tech. ing Balkan exports to North America via Istanbul. We 08:30/09:00 and 17:30/18:00
born. Both Air France Cargo and KLM Cargo have But local industry practices are often restrictive, out- are applying a similar strategy for freight movements to Monday to Friday.
been able to stay on a steady course in Turkey through moded, and some are exorbitantly expensive. and from the Turkish speaking markets of Uzbekistan,
Source:
trusted service standards, reliability, and, most impor- Progressive industry players are lobbying hard to Turkmenistan and Kazakhstan.” www.a-zoftourism.com

26 cargovision | SEPTEMBER 06 cargovision 27

 cargovision market monitor

Sea vs Air Freight - Forecast Growth Air Freight (FTK)

Sea vs Air: Growth of teu’s and FTK Sea Freight (teu) Sources: IATA (FTK) and BRS (teu) Sea capacity (teu)

Indexed - 1992 = 100 Air Freight (FTK)

Sources: ICAO and John Monroe Consulting 18%

Growth in container shipping has been well over 10% since 2000. However, in airfreight, it was below 6%. Many 16%

products use both modes. As air transport gets more expensive, forwarders often shift to sea freight to keep cost 400
14%
under control. How will these two modes compete in the near future?
350 12%

BY DICK VAN DEN BERG AND MARK W. LYON 10%

300

Opening up of China 8%
250
6%

200

AIRFREIGHT AND SEA FREIGHT -

4%

150
2%

0%

COMPETING MODES?
100
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Figure 3 Figure 4

Airlines and Shipping Lines - Top 10 in FTK and teu (20%) Sea Container Ports and Airports - Top-10 in 2005
■ The first half-year of this year saw slower growth in
Major Scheduled Airlines - Global Freight Traffic Growth
airfreight Figure 1, although it was still higher than the 25,000 4,000
Japan Airlines (JP)
same period in 2005. The world’s economy and trade 20% Growth - Quarter vs Quarter previous Year
British Airways (UK) Sea Container Ports - teu Airports - International tons
Cargolux (LU) 3,500
Average Growth of Last 3 Years = 6.9%
are feeling higher oil prices and rising interest rates. Growth - Month vs Month Previous Year
EVA Air (TW)
Top 10 airlines in International FTK 20,000
FedEx (USA)
Most analysts expect growth to lag during the next 18 China Airlines (TW) Top 10 have 49 % market share 3,000
15% Cathay Pacific (HK)
months, especially for the US economy. Lufthansa (DE)
2,500
Korean Air (KR) 15,000
AF-KL (FR-NL)

■ Airfreight industry growth this year, 4-6%, is concen- 10% NYK (JP)
2,000

COSCO (CN)
trated among airlines Figure 2. Emirates is still the Hanjin-Senator (KR) Top 10 container shipping lines in teu
10,000
1,500
Annual Growth

NOL-APL (SC-USA) Top 10 have 65 % market share

fastest growing airline in the industry, and another air- 5% CSCL (CN) 1,000
Hapag Lloyg-CP (DE)
line from the Middle East, Qatar Airways, is now also in Evergreen (TW)
5,000
0,500
the top-10. The other airlines that contributed most to CMA-CGM (FR)

teu (1000)
MSC (CH)
0%
growth are the majors from the top-5, plus FedEx, Maersk (DK)
0 -

tons x 1000
e

ng

Sh hai

en

Ka san

am

rg

ng

ris

on

ei

m
ba

ou

Am gha
ur
le
or

or
un

ky
UPS, and Air China. China still drives airfreight growth,

ip
0% 5% 10% 15% 20%

da
bu

Pa
zh
ko

Ko

nd
kf
ge
g

Du

Se
rd
ap

ap

Ta
Bu

To
si
an

an

er
an
am
en

Lo
tte

An
oh
g
ng

ng
g

st
Sh

Sh
World Market Share

on

Fr
on
H
Ro
Si

Si
s
H

Lo

H
although the Middle East and Africa are now contribu- -5%
Apr ‘03 Jul ‘03 Oct ‘03 Jan ‘04 Apr ‘04 Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ë06
tors, because of their rising incomes due to oil exports.

■ However, the rapid growth of ocean container ship-
ping is also affecting the airfreight business Figure 3.
Airfreight grew faster than sea freight until 2000, when
the situation changed dramatically. Suddenly, Chinese
production created an enormous demand for ocean
containers to move its export goods to Europe, the
USA, and Japan.
■ The ship-building industry was not slow to respond.
Many ocean lines placed large orders for super-sized
container ships. Builders will deliver most of these
10,000 twenty-foot-equivalent-unit behemoths during
the next four years, potentially increasing ocean capac-
ity by 50%. The much lower buildup in airfreight capac-
ity Figure 4 will expand the gap between sea and air-
freight availability, and bring greater pressure on rates
for both modes.
Figure 1 Figure 5 Figure 6
10 Airlines with Largest Increase in FTK
■ Ocean shipping is highly concentrated Figure 5 and ■ There are similarities in traffic patterns when you com-
1st half 2006 vs 2005
at the same time more liberalized than airfreight. There pare the world’s largest ocean and airports. Figure 6.
are no state-owned shipping lines. Mergers are not Asia dominates ports in both top-10 categories. This
Emirates
subject to bilateral treaties and their number is increas- results from a large export flow from China and from a
Korean Air
ing. Today, 10 shipping companies hold 66% of large flow of transfer traffic through the ports of Busan
Singapore AL
capacity, but this is likely to concentrate even more in in Korea, Kaohsiung in Taiwan, and Singapore. Similar
Cathay Pacific
the future. Amazingly, the largest companies are from trends are taking place at airports like Singapore and
FedEx
countries with no ports, like Switzerland, or few ports, Seoul, but the impact on the total figure may be lower.
AF-KL
like Denmark. In Dubai, transfer traffic is a major flow, even between
Lufthansa
European companies are more dominant than in the sea and air. Although Dubai airport was not in the top-
Air China
airfreight industry, and the US, the world’s largest 10 of 2005, it will be in the future. The inferior position
Quatar Airway
importer, clearly lags behind in both modes. Two of the USA is noteworthy in both modes: only one
UPS
ocean companies also have airfreight interests: Ever- ocean port, Los Angeles at number 10, and no air-
0 100,000 200,000 300,000 400,000 500,000 green International Corp. of Taiwan, with EVA Air, and ports. The USA’s largest airport for international traffic
FTK (000) Hanjin Group of Korea, with Korean Air. is Miami, which is its gateway to Latin America.

Figure 2
28 cargovision | SEPTEMBER 06 cargovision 29
 cargovision postscript cargovision information

Cargovision is the management magazine of AF-KL Cargo. Its function is

to disseminate information on transport, distribution, logistics, informa-
tion services, and general business developments. The editorial opinions
expressed in the magazine are not necessarily those of AF-KLM.
Reproduction in whole or in part without written permission is prohibited.
TURKEYS SHOULD NOT FLY H2 OR C2H6O?

■ ‘T was a hot day in July when a commercial turkey breeder in Canada ■ A tiny hydrogen fuel-cell car, complete with its own
delivered 144 boxes of turkey chicks to Northwest Airlines Cargo for ship- miniature solar-powered refueling station, went on sale SUBSCRIBER SERVICES Published by
ment to another breeder in California. In spite of instructions to split the this summer in China. Horizon Fuel Cell Technologies AF-KL Cargo Communication

© Panos Pictures/Hollandse Hoogte

shipment between two aircraft, cargo handlers put all of the fowl on a single of Shanghai wants your children to see that hydrogen Cargovision is published P.O. Box 7700
flight to San Francisco. Only 1,900 of the 11,500 chicks did not succumb to fuel cells are a promising technology that can eventual- quarterly by AF-KL Cargo 1117 ZL Schiphol
heat stroke or suffocation during the four-and-a-half hour flight. ly replace gasoline guzzlers. and mailed to subscribers in almost The Netherlands
every country. Christelle Dufour Theuws
To make up for the loss, the Canadian breeder sent another 9,000 chicks Full-scale hydrogen cars exist as prototypes, but no dufourtheuws@cargovision.org
the following week. This time, he ordered them sent on three Air Canada one yet knows how to make them affordable or practi- Please visit Kirsten Hemmer
fights. One of those planes had to land in Las Vegas, and the birds spent cal. However, US$ 80 buys you a scale model of www.cargovision.org hemmer@cargovision.org
the afternoon on the tarmac in the 108F heat. Eventually, they took an Horizon’s H-Racer and fueling station. The car’s fuel and click on the Subscribe icon.
America West flight to San Francisco, but by then 2,200 were either dead cell uses an electrochemical reaction to produce cur- You will be able to: Concept & Realization
or dying, and wound up in a trash compactor. rent and power the toy’s electric motor. vdBJ Communicatie Groep,
HERO OR GOAT? The cell produces electricity, heat, and water. Solar ■ Sign up for a free subscription Bloemendaal
The consignee filed a $107,000 claim against Northwest. Northwest apolo- cells in the refueling station produce the electricity to The Netherlands
gized to the shipper and said it was taking steps to educate its handlers extract hydrogen from water. A small balloon in the car ■ Change your address vdbj@cargovision.org
■ Nearly 200 firms in Sialkot, in the Jammu-Kashmir and avoid similar mishaps in the future. The local branch of the Society for holds the fuel. No word on its speed yet, but the manu- www.vdbj.nl
of Pakistan, sewed 63 million footballs for the 2006 the Prevention of Cruelty to Animals is pondering whether to file animal cru- facturer plans to scale up into something you can actu- ■ Cancel your subscription
FIFA World Cup. Most of them traveled to Germany by elty charges against Northwest. Meanwhile, 40 confused turkey chicks are ally drive. Editor in Chief
sea, but 10%, about 3,000 tons, deflated and returned looking for homes in the San Francisco area. ■ ■ Review recent editions Mark W. Lyon
by truck to Lahore and by Lufthansa Cargo flight to the Meanwhile, in southwest France this summer, a team lyon@cargovision.org
host country. of engineering students from the Lycee La Joliverie You can also change your
Did the event really use that many balls? Who has them used an ethanol-powered, home-built vehicle to out- address by sending a fax with Project Manager
now? We know that Argentine president Nestor distance a hydrogen-powered vehicle, along with 250 the subscription number found Urtha Ririhatuela
Kirchner has the red card that sent Zidane off the field other entrants, in this year’s Shell Eco-marathon. The on the Cargovision mailing ririhatuela@vdbj.nl
in the final. It was an autographed gift from the match’s ethanol-powered winner achieved 6,786 mpg, while label to: +32 27 51 77 59.
Argentine referee Horacio Elizondo. the hydrogen-powered runner-up achieved 6,548 Art Direction
It’s possible that Marco Materazzi received a trophy ball mpg. Sok Visueel Management
as part of the new four-year contract he signed with Since both these technologies are more likely to show Amsterdam, the Netherlands
Inter Milan. More likely, Zidane was given some to hand up in forklifts and airport tugs than they are in aircraft
out during his three hours of humanitarian work for during our lifetimes, let us propose an airport ground- Editorial Office
FIFA. service vehicle race. We could nominate Dubai to host Vijverweg 18
Okay, I was dumbfounded, like everyone else, watch- the AGSV event, maybe in conjunction with a golf tour- 2016 GX Bloemendaal
ing the blow on TV. But decided after a while that a nament or camel race. Teams from any airport would The Netherlands
man’s gotta do what a man’s gotta do - one billion be eligible, provided they consist entirely of nationals Tel: +31(0) 23 541 17 01
© Picture Press/Hollandse Hoogte

viewers and French victory be damned. A fine display and vehicles employed in day-to-day work. It would Fax: +31(0) 23 541 18 01
of personal honor, dontcha think? ■ give the manufacturers of this equipment a venue to
show off their wares. But what odds can we get on the Circulation Manager
camel? ■ Herman Brijssinck
Tel: +32 2752 90 51
Fax: +32 2751 77 59
brijssinck@cargovision.org

AF-KL Cargo © SEPT 2006

Volume 21 Number 26

30 cargovision | SEPTEMBER 06 cargovision 31

32 cargovision | SEPTEMBER 06