The first and only pan-regional Magazine Middle East - Africa - South Asia

10
air
E x c l u s i v e r e p o rt s f r o m O m a n , I r a q a n d I n d i a

Vol. 10

Year Issue 8
No. 63

cargo
JAN - FEB 2011

update

Always Ahead
Abdul Muttalib Mustafa Al Jaidi,
CEO of Oman Insurance Company

World Middle East & Africa South Asia

Improved profitability Dubai airport sees growth Country Report - India
but margins still low in freight volume India Celebrates 100 Years of Aviation
www.7dimensionsmedia.com
 The first and only pan-regional Magazine Middle East - Africa - South Asia

Editorial
air
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10
air
E x c l u s i v e r e p o rt s f r o m O m a n , I r a q a n d I n d i a

Year
Vol. 10
Issue 8
No. 63
update
cargo
JAN - FEB 2011

update

Always Ahead
Abdul Muttalib Mustafa Al Jaidi,
CEO of Oman Insurance Company

Editor’s Opinion
World
Improved profitability
but margins still low
Middle East & Africa
Dubai airport sees growth
in freight volume
www.7dimensionsmedia.com
South Asia
Country Report - India
India Celebrates 100 Years of Aviation
Air Freight industry gaining lost ground
Early aviation promoters were always looking for practical uses for the airplane.
Air Cargo Update One idea was to use them as carriers of freight. Some say the first practical
Bi-monthly: Vol 10 | Issue 8 | No 63 demonstration of air freight occurred in November 1910 when a department store
Middle East, Africa and South Asia shipped a bolt of silk by air from Dayton to Columbus, Ohio.
Undeniably, the primitive stages of air freight business have made a remarkable
Air Cargo Update serves as a platform to share news and discuss critical growth since.
issues within the Air Cargo Industry from the Middle East, South Asia and But this has not come without challenges – the recent global slowdown in trade
African region. did affect the air cargo industry and the Middle East and other emerging markets
were no exception. However, things have started looking up now with reports of
• BAHRAIN • CYPRUS • IRAN • IRAQ • JORDAN • KUWAIT • LEBANON • OMAN • recovery.
QATAR • SAUDI ARABIA • SYRIA • UNITED ARAB EMIRATES • YEMEN • ALGERIA
• ANGOLA • BENIN • BOTSWANA • BURKINA FASO • BURUNDI • CAMEROON • In fact, 2010 was, at least not as bad as 2009. Fair enough. 2009 was, in many
CENTRAL AFRICAN REPUBLIC • CHAD • CONGO • COTE D’LVOIRE • DJIBOUTI • E. cases and instances, one to file and forget. If only it were that easy though.
GUINEA • EGYPT • ERITREA • ETHIOPIA • GABON • GHANA • GUINEA • GUINEA • 2010 was a year of peaks & troughs, and as many would say “good if not best”
BISSAU • KENYA • LESOTHO • LIBERIA • LIBYA • MADAGASCAR • MALAWI • MALI
• MAURITANIA • MAURITIUS • MOROCCO • MOZAMBIQUE • NAMIBIA • NIGER
at least. Though air freight recovery hit a peak in May 2010, in November last
• NIGERIA • RWANDA • SAO TOME & PRINCIPE • SENEGAL • SEYCHELLES • year volumes fell by 7%, compared to the peak. According to IATA, November’s
SIERRA LEONE • SOMALIA • SOUTH AFRICA • SUDAN • SWAZILAND • TANZANIA year-on-year growth of 5.4% is a significant shift from the 14.5% recorded in
• TOGO • TUNISIA • UGANDA • ZAIRE • ZAMBIA • ZIMBABWE • BANGLADESH • October. This was exaggerated by the exceptionally strong performance in
BHUTAN • INDIA • PAKISTAN • SRI LANKA • NEPAL
November 2009. In absolute terms, there was a 1.1% fall in freight volumes from
October to November. All regions, except Africa, showed dramatic drops in year-
on-year growth rates from October to November.
The Middle Eastern carriers on the contrary saw a 12.4% year-on-year growth
for November. The region’s carriers handled 14% more freight in November than
they did at the pre-recession peak in early 2008.
Secure Freight has taken on new relevance in the wake of the October 2010
security incidents.
PO Box: 9604, SAIF Zone, Sharjah - UAE Meanwhile, the UAE raced up the ladder to become one among the top
Tel: +971 6 557 9579, Fax: +971 6 579569, 25 countries worldwide as per the latest World Bank Group rankings (titled
info@7dimensionsmedia.com Connecting to Compete 2010) in trade logistics.
www.7dimensionsmedia.com The UAE did extremely well in terms of efficiency of customs clearance
processes, quality of trade and transport-related infrastructure, ease of arranging
Chief Editor competitively priced shipments, and competence and quality of logistics services.
Chandrima Dutta Gulf airlines and airport operators on the other hand are still investing for
chandrima@7dimensionsmedia.com growth and have every expectation of a return to healthy air cargo volumes.
Piggybacking on this, the air cargo insurance sector is also ready for takeoff
Creative Director after a quiet period. This edition’s cover story has Abdul Muttalib Mustafa Al
Yoosuf Hamid
Jaidi, CEO of Oman Insurance Company speak on what it takes to remain at the
yoosuf@7dimensionsmedia.com
forefront of its business.
Head - Sales & Marketing Of course as usual we have much more in the issue, including interviews
Israr Ahmad with Shashi Panicker, Head of Freight Centre at Sharjah Aviation Services, DHL
Israr@7dimensionsmedia.com UAE’s Country Head, Frank Ungerer and John Tansey, General Manager, UPS
UAE LLC.
Production Head Well, I could probably do this for hours, but I am capping it for now. I hope you
Zainul Abedeen had a good 2010 and wish you a great 2011. Thanks for reading Air Cargo Update.
zain@7dimensionsmedia.com

Research & Market Development (RMD)

Jamal Ahmad Chief Editor
jamal@7dimensionsmedia.com Chandrima Dutta
Chandrima@7dimensionsmedia.com
Photographer/s
Shanawaz
Madhushal jayanath
Capitalizing on growing editorial demand, circulation growth and advertising
momentum this year, Air Cargo Update, the first and only pan-regional publication
WORLDWIDE MEDIA REPRESENTATIVES from the stable of 7 Dimensions Media, is relaunching with its January-February
France, Belgium, Monaco, Spain:
Aidmedia, Gerard Lecoeur; Tel: +33 (0) 466 326 106; Fax: +33 (0) 466 327 073 2011 issue.
India: As markets recover and new opportunities unfold, the need for a magazine
RMA media, Faredoon Kuka; that covers it all with perspective and expertise has never been greater. With the
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position as the only magazine providing in-depth and authoritative stories on the
Tel: +66 (0) 2650 8690; Fax: +66 (0) 2650 8696 companies and people who move the industry.
UK, Ireland, Germany, Switzerland, We take this opportunity to say thank you to all our readers who have supported
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All rights reserved. The opinions and views expressed in this publication are not necessarily
those of the publishers. Readers are requested to seek specialist advice before acting on
information contained in this publication, which is provided for general use and may not be
appropriate for the reader’s particular circumstances. The publishers regret that they cannot
accept liability for any error or omissions contained in this publication.
3
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13 16

6 20

22 42

29 32 46

06. World News 20. E-Fright 32. News - Middle East & Africa
Improved profitability but margins Forwarders need to see greater benefit Dubai airport sees growth in freight
still low before they embrace E-commerce with air volume
carriers, says FIATA/TIACA survey
13. Cover Story 46. News - South Asia
Always Ahead 22. Interview Country Report - India
Right place, right time
16. Airport 50. News - Technology
Sharjah Aviation Services at 29. Security Etihad Crystal Cargo selects CHAMP
Sharjah Airport Vision for Intelligent Aviation Security - as its Advance Cargo Information filing
Coordinated Response on Cargo Security partner

4
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Improved profitability but margins still low
The International Air Transport
Association (IATA) revised its industry
outlook for 2010 to a net profit of $15.1
billion (up from the $8.9 billion forecast
in September). Similarly the Association
revised upwards its projections for 2011 to
a net industry profit of $9.1 billion (up from
the $5.3 billion forecast in September). Net
margins remain weak at 2.7% for 2010 and
falling to 1.5% in 2011.
“Our profit projections increased for both
2010 and 2011 based on an exceptionally
strong third quarter performance. But
despite higher profit projections, we still
see the recovery pausing next year after
a strong post-recession rebound. And
the two-speed nature of the recovery
is unchanged with European airlines
continuing to underperform other regions,”
said Giovanni Bisignani, IATA’s Director
General and CEO.
Bisignani also characterized the
improvements in terms of profit margins,
which continue to disappoint. “Margins
remain pathetic. With a 2.7% net margin
in 2010 shrinking to 1.5% in 2011, we are
nowhere near covering our cost of capital.
The industry is fragile and balancing on
a knife edge. Any shock could stunt the
recovery, as we are seeing with the results
of new or increased taxation on airlines and
travelers in Europe,” said Bisignani.
Shifts in the industry forecasts can appear
dramatic in absolute numbers. It is important
to relate them to the size of the industry to
understand their significance. The $6.2
billion increase in IATA’s projection for the
2010 net profit (compared to the September
forecast) is equal to just 1.1%
of the industry’s projected $565
WORLD NEWS
billion in revenues.
“Any increase in profits is a welcome
step in the right direction. But the fact
that we can increase our profit forecast by
70% and still be left with a net margin of
just 2.7% shows just how far this industry
has to go to achieve a normal level of
profitability,” said Bisignani.
2010 Forecast
Major drivers for the improved 2010
forecast are:
• Passenger traffic growth of 8.9%
(compared to 7.7% previously forecast)
• Strong passenger yield growth of 7.3%
(unchanged from the previous forecast)
• Revenue growth to $565 billion
(an improvement of $5 billion on the
previous forecast)
• An average annual oil price in line with
previously projected $79 per barrel (Brent)
“The third quarter of 2010 was
exceptionally positive in terms of passenger
traffic volume. Airlines met increased
demand by utilizing their fleets more
intensely. Fixed costs remained constant,
passenger yields firmed and the increased
revenues went almost directly to the bottom
line,” said Bisignani.
In sharp contrast to improved conditions
for air travel, the prospects for air cargo
deteriorated from the September forecast.
Demand is now expected to grow by
18.5% (compared to the previously forecast
19.8%), limiting yield growth to 7.0%
(below the previously forecast 7.9%).
“The post-recession rebound drove a rapid
expansion for cargo earlier in the year but it
ran out of steam by the third quarter. Since
May, overall volumes
fell by 5%. This will
6
only pick-up when consumers have bought
the products that are already on the shelves,”
said Bisignani.
2011 Forecast
“The recovery cycle will pause in 2011.
Although the $9.1 billion profit projection
for 2011 is better than we had previously
forecast, next year the industry will face
tougher conditions than what we are
experiencing today,” said Bisignani.
The improvement compared to the
previous forecast comes from:
• Stronger traffic growth: Passenger and
cargo demand is expected to grow by 5.2%
and 5.5% respectively. This is better than the
4.9% and 5.3% previously forecast.
• Yield improvements: Yields are
expected to grow by 0.5% for passenger
traffic, an improvement on the flat growth
previously forecast. Cargo yields are
expected to remain flat, unchanged from the
previous forecast.
The operating environment will become
more difficult because of:
• Increased Fuel Cost: For 2011, the
average oil price is expected to increase to
$84 per barrel, up from the $79 per barrel for
2010. This will increase fuel costs to 27% of
operating costs (up from 26% in 2010).
• Slower GDP Growth: The 3.5%
global GDP growth expected in 2010 will
slow to 2.6%.
• Taxation: Austerity measures,
particularly in Europe, are expected to
dampen demand. Significantly increased
taxation in some European countries
(Germany, Austria, and the UK) is
increasing the cost of travel by between 3%
and 5%--significant enough to discourage
travel and slow the industry recovery.
air
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update

Fact Sheet - Cargo Traffic

1. Overall volumes
Metric Number Source
Total industry freight tonnes, 36.9 million tonnes IATA estimate
2009
Domestic freight tonnes, 11.1 million tonnes IATA estimate
2009
International freight tonnes, 25.8 million tonnes IATA estimate
2009

2. Distribution of international freight tonnes by route area, 2009

Source: Airline Industry Forecast 2010-2014
International route area Share
Within Asia 21%
Europe-Asia 17%
North Atlantic 13%
North and Mid Pacific 13%
Within Europe 8%
Europe - Middle East 5%
Middle East – Asia 5%
North America - South America 3%
Europe – Northern Africa 3%
Far East - Southwest Pacific 2%
Within Middle East 2%
Other 8%
Total 100%
3. Distribution of international freight tonne kilometer traffic by region of airline registration
Source: IATA monthly traffic statistics, September 2010
Airline region Share
Asia/Pacific 44%
Europe 25%
North America 16%
Middle East 11%
Latin America 3%
Africa 1%
Industry 100%
4. Share of cargo traffic in dedicated freighters vs passenger flights
Source: Airbus Global Market Forecast 2007-2026
Aircraft category Share of total FTKs
Dedicated freighters 58%
Passenger aircraft (in cargo hold) 42%
5. Commercial cargo fleet composition, end September 2010
Source: Ascend
Category Number of aircraft in service
Wide body passenger fleet 3,230
Dedicated freighter fleet 3,079
November 2010

8

Robust growth to yield best year ever, finds ACI
Airport participants in the ACI
PaxFlash and FreightFlash monthly traffic
reporting exercise have indicated that
passenger and freight traffic continued to
rise in November 2010. Total passenger
traffic increased by 6.9 percent compared
to November 2009, with international
traffic up by 8.1 percent and domestic by
6 percent. For the first eleven months of
2010, world passenger traffic increased
by 6.5 percent, international traffic
growing by 7.7 percent and domestic
traffic by 5.5 percent.
Director General Angela Gittens
comments, “November reporting indicates
that 2010 will set a new record for global
airport industry traffic with total passenger
growth near 7 percent. Within that
overall increase there are marked regional
differences. While the Asia Pacific, Middle
East and Latin America-Caribbean regions
surged well beyond pre-crisis passenger
volumes, Europe and North America
lag behind previous peak performance.
Nonetheless, Europe appears to be on
track to becoming the largest traffic region
in 2010 for the first time ever, moving
ahead of the North America market. It
remains to be seen how significantly the
harsh winter weather will affect December
traffic results.”
Freight traffic growth is still slowing
relative to its rapid rebound in the first
half of 2010. Comparing November 2010
to November 2009, total freight increased
Airbus sees 1,000 freighters by 2029
By 2029, the skies will be filled with
1,000 new cargo planes valued at $3 billion,
according to a report by Airbus.
The company’s global market forecast
anticipates the need for about 26,000
passenger and cargo planes, with a total
price tag of more $3 trillion. Replacing old
WORLD NEWS
by 4.3 percent, international freight rose
by 5.3 percent and domestic freight by
1.3 percent. Year to date in 2010, global
freight growth reaches 18.2 percent,
with international freight at 23.4 percent
and domestic freight at 9 percent for the
11-month period.
Gittens comments, “Freight growth
YOY: Year over year same month
comparison; YTD: Year to date, starting
January 2010, compared to same period
previous year; YE: Year end, based on
rolling 12 month period, compared to
same prior 12 month period
Freight traffic
Freight growth has been slowing
down considerably since mid year. In
November total freight volumes grew
by 4.3 percent, the slowest growth
since October 2009. To put that figure
in perspective, however, it must be
noted that these results compare with
November 2009 which already saw a
planes in favor of more environmentally
friendly models accounts for some of the
demand, but the company also foresees
large growth in new markets. The
passenger plane growth breaks down to
10,000 replacements of outdated aircraft
and 15,000 additional craft to keep up with
expanding demand. According to Airbus,
there are currently more than 14,000
passenger aircraft in operation worldwide.
Discounting the replacement planes, this
means the market will balloon to 29,000
passenger craft by 2029.
“Airlines in Asia Pacific including
China and India will carry one third
(33%) of the passenger traffic by 2029,
9
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was exceptional in 2010 and despite a
marked slowdown in the second semester,
the overall increase of close to 18 percent
more than compensates for the 8 percent
drop in 2009. The divergence among the
regions is less pronounced than in the
passenger sector, as all regions enjoyed
double digit growth earlier in the year.”
healthy 11 percent post-crisis increase.
Overall growth was lifted by 8 percent
growth in Europe and 7.5 percent growth
in international freight in North America
making these two regions the fastest
growing in November. The hitherto
very robustly growing regions Middle
East, Latin America and Asia Pacific are
in consolidation mode as their freight
volumes surged during the reference
period at the end of 2009.
Growth stagnated in Singapore and
Dubai, while Shanghai Pudong (-2%)
and Incheon (-1%) registered negative
growth. A number of US and European
airports showed robust growth.
making it the largest region, overtaking
Europe (25%) and North America (20%),”
Chris Emerson, head of product strategy
and market forecast for Airbus, said in a
statement.
Though most of the aircraft boom will be
experienced in the passenger arena, Airbus
notes that cargo traffic has rebounded from
the economic slump with more vitality than
passenger travel. Cargo flights are growing
at a 5.9 percent rate, and passenger growth
has been reported at around 4.8 percent.
“The recovery is stronger than predicted
and reinforces both the resilience of the
sector to downturns and that people want
and need to fly,” Airbus’ John Leahy said.
air
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update

ICAO finds huge cargo growth in 2010

Cargo traffic year-over-year rose 18.9 percent in 2010, according to the UN International Civil
Aviation Organization’s (ICAO) freshly released annual trends report.
The cargo increase follows an 11 percent
decline in activity experienced between
2008 and 2009. The Middle East boasted
growth of 34.1 percent, and traffic in the
Asia-Pacific region rose 23.8 percent.
According to the report, every region
posted growth of more than 10 percent.
On the passenger side, international
traffic rose by 8.8 percent over 2009’s
totals because of travel in Brazil,
Russia, India and China. Middle Eastern
countries accounted for 21 percent
of this growth, while the Asia-Pacific
region registered a 12.9 percent bump.
Oil prices could stunt further
passenger growth, but the ICAO still
expects increases in the high 4 percent
range for 2011 and 2012.
The Middle East experienced a 34.1 percent cargo growth rate in 2010

UPS expands global pharma network

UPS is expanding its network of healthcare distribution centers for pharmaceutical, biotech
and medical device companies to 30 worldwide.

The new facilities are located in

Singapore; Venlo, the Netherlands;
Burlington, Canada; and Louisville,
Ky., and bring the total amount of UPS
dedicated healthcare distribution space
to more than four million square feet.
“We are seeing increased demand
from healthcare manufacturers wanting
more agile supply chains. This clear
industry trend is driving companies
to look for more global solutions and
deeper supply-chain partnerships,”
said Bill Hook, vice president, global
strategy, UPS Healthcare Logistics.
Opening in the first quarter of
2011, UPS’s new 43,000-square-foot
pharma facility in Singapore will
A new 245,000-square-foot facility in Venlo, the Netherlands — an hour away from UPS’s European hub
include cold chain capacity to support in Cologne, Germany (above) — is expected to open during the second quarter of 2011 after an existing
an increasing number of companies terminal in Roermond, the Netherlands, reached its capacity in less than nine months
locating manufacturing operations
in Asia. Also opening by June 2011 Finally, in the fourth quarter of 2011, new building will provide next-day delivery
is a 177,000-square-foot center in UPS will complete a 144,000-square-foot for orders received as late as 11 p.m. as well
Burlington. It is the 10th UPS healthcare extension to its existing healthcare terminal as ground deliveries within two days or less
facility in Canada. near its Louisville, Ky., global air hub. The to 70 percent of U.S. locations.

10

DHL sees revenue increase through 2015
Deutsche Post DHL has predicted its DHL divisions will experience an
annual growth of 13 to 15 percent through 2015. DHL’s year-end profit is
expected to be EUR1.3 billion.
The estimate is an amplification of
the company’s Strategy 2015 outlook,
which was announced last year. The plan
focuses on two defining segments of the
organization: mail and logistics. Though
the mail division will end 2010 with a
profit of EUR1.1 billion to EUR1.2 billion,
according to a press release; yearly profits
to 2015 will hover around EUR1 billion.
Of course, these growth predictions
assume the industry won’t experience
another major recession. If the economy
Lufthansa to need more freighter capacity
The Lufthansa Cargo Group (LH Cargo) expects to acquire an additional 540
tonnes of freighter capacity by 2015 to meet a 5 percent per annum growth forecast.
Lufthansa Cargo Group board member Andreas Otto
In the next three years, the airline
expects to increase its all-cargo capacity
to North Asia from 74 percent to 77
percent of total availability, while
bellyhold capacity to South America is
expected to increase from 28 percent to
30 percent.
The company said it will begin flying
an MD-11 freighter twice a week to the
WORLD NEWS
is relatively stable, the company is looking
forward to a 7 percent annual average
growth in its express division and an
average annual growth of 6 to 8 percent
in its air forwarding division. The supply
side will see the largest increase, with an
expected growth of 8 to 9 percent annually.
The company’s goals will be achieved
through product development, expansion
of its customer base and by establishing
a greater presence in the healthcare,
technology and energy fields.
free-trade zone of Manaus, Brazil, in
January next year in response to a high
demand for capacity from Asia.
With India and South Asia bellyhold
versus freighter capacity remaining
constant for the next three years,
LH Cargo is planning to develop a
major pharmaceutical products hub at
Hyderabad in partnership with GMR
Hyderabad International Airport, the
airport manager. At the same time,
the airline will open a new facility in
Frankfurt for temperature-controlled
shipments in late 2011 and introduce
its new fleet of Opticooler containers to
handle traffic between the two hubs.
Speaking in Frankfurt, LH Cargo board
member Andreas Otto said harmonization
of security procedures “is still far away”
11
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DHL Global Forwarding recently
partnered with Interstate Transport and
Trans World Forwarding to increase
its perishable handling offerings from
Latin America to North America. In the
partnership, DHL will handle air transport,
TWF will handle all air cargo at DHL’s hub
in Miami and Interstate will truck shipments
out across North America. The deal gives
DHL access to TWF’s 270,000-square-foot
cooler storage area in Miami.
“We are systematically adapting ourselves
to meet the needs of our customers and are
developing solutions in every business area
that will make their lives easier,” Deutsche
Post DHL CEO Frank Appel said in a
statement. “By taking this approach, we will
accomplish our goal of remaining the postal
service for Germany and becoming the
logistics service provider for the world as
well as completely unlock the full potential
of Deutsche Post DHL for the benefit of our
customers, employees and investors.”
and the pending court decision over night
bans at Frankfurt airport was delaying a
decision to build a new cargo terminal.
He added that a decision is now expected
by the autumn of 2011.
With a spectacular turnaround from a
loss of €171 million ($223 million) in
2009 to a profit of €229 million ($299
million) by the end of the third quarter
this year, LH Cargo said it expects to
continue to focus on growing its ground
and air-related operations in the next
three years.
In addition to its airline network,
group cargo brands include the cargo
community system Traxon; the Time
Matters courier operator; container lessor
Jettainer; and a specialist in temperature-
controlled transportation, LifeConEx.
 Cover story
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Abdul Muttalib Mustafa Al Jaidi, CEO of Oman Insurance Company

Always Ahead
In an exclusive interview with Chandrima Dutta,
Abdul Muttalib Mustafa Al Jaidi, CEO of Oman
Insurance Company talks on what it takes to
remain at the forefront of air cargo insurance
business.

Abdul Muttalib Mustafa Al Jaidi, CEO of Oman Insurance Co. (OIC), the UAE’s largest in terms
of gross premium written believes that ultimately, it is sheer consistency that wins the race. I can
certainly understand his point of view as he has always focused on maximising OIC’s business
opportunities and increasing efficiencies to remain higher on the growth curve.

For Al Jaidi, the thirst for challenges and quest for greater heights drew him to this industry.
Though he is the man who has been credited with the burgeoning growth of the insurance company
since he took over, he comes across as someone who has his feet firmly placed on the ground and
says humbly, “this industry still fascinates me.”

13
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update

In his 36 years tenure in the company Al Jaidi has taken OIC “While we haven’t changed our plans very much, in the short-
to great heights with his deft management and interpersonal term we had to modify our approach to ensure that we retain our
skills. And, this is indeed a proven fact as OIC has managed market share and also find ways to stimulate new business even
a 6 per cent increase in its overall revenue in 2010 over in these tough conditions,” said Al Jaidi.
the previous year. Considering the overall scenario in the “Before recession, we were experiencing fairly buoyant
insurance sector most would agree that this is no mean conditions. Much like everyone else in the industry I envisaged
achievement. that these conditions would continue for some time. It was
In a climate where transparency with regard to the media
when it comes to anything but good news has been traditionally
resisted, it was heartening to see a change when he disclosed
the figure.
This made me more inquisitive to know the inside story of
their air cargo business, as that was the whole purpose of my
visit. According to Al Jaidi, “Air cargo insurance is a specialised
line of business. It requires adequate industry knowledge &
experience, and we have it all. This makes us the market leader
once again (in the UAE).”
“OIC’s years of experience and wide knowledge of the cargo
industry will be tremendous assets as we continue to enhance
products and services in this market.”

Challenges
“The regional airfreight market in general is going through
some tough times now,” he said. “The Gulf’s airfreight market
is heavily influenced by re-exports. The global meltdown has
lead to the recent decline which again has affected the ancillary
industries of which we are one.”
“But, the air cargo business has always been very fluid and
we have had to deal with the ‘peaks and troughs’ over the years.
However, turn of events in the recent past has changed the way
we do business for the better, and has highlighted the need to
innovate.”
bit of a rude awakening when the market started tumbling and
our growth plans in the air cargo division which looked very
realistic at that time started looking very optimistic,” he said.
“Currently, our air cargo business contributes about 8 per cent
to our overall revenue,” he added.
But does this mean the current figures could not stand up to
your financial projections?
“Well, the market is down and we cannot expect anything

14
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update

better, so we gave “I think that is the time when a customer needs special
ourselves a more realistic care as he is already vexed with the problem on hand.
target and we’re happy And that is the differentiating factor for a company
we’ve successfully to market itself and to make a
achieved permanent mark.”
that,” “Besides, we have adopted
the approach of improving
said quality rather than
Al Jaidi. reducing cost for cost
‘But I’m optimistic that this sake,” stated Al Jaidi.
region will come out of recession “Plus, we
quicker than others. We are already conduct seminars
seeing signs of recovery here and I and conferences
think that will continue.” regularly to
“Having said that one must also keep our
realise that OIC is a hot performer,
our challenge will be staying
ahead of the game as we face new
competition, of both high and low
quality. We need to perform so we
can create opportunities rather than
waiting for opportunity to come,” he
remarked.

Strategies
The straight talking man is clear about his
mandate – maintain healthy margins, expand reach and keep
business as usual.
But what does it take to achieve all this? A major reason for
his company’s success, says Al Jaidi, is the belief ingrained in
the staff to be empathetic to customers. “We want our employees
to rise to the expectations of our clients. Your body language,
facial expression, everything count.”
We know that though it is important to get more new
customers each day, the majority of a company’s success is due
to repeat business.
A company captures a larger market share by understanding
its customers and providing them with a consistent positive
experience. Through a customer’s interaction with the company
a relationship can be formed which may develop into high
loyalty to a brand and its organization. The more uniquely a
company positions itself and its product offering the better
chance there is for the firm to make an impression on the
marketplace.
He explained that the company constantly endeavours
to orient young employees who later go on to represent the
organisation.
“When you train people, you teach and reinforce your
standards and values and processes and procedures so that
people are reminded about it and are enabled to deliver a better
experience to your customers,” he reflected.
existing
as well
as potential
customers well
informed of our
latest product/service
offerings. Actually, insurance
is a concept that everyone of this
region have started to leverage on recently,
but it will be a while before they realise the full potential,”
he explained.
Marching ahead
It is said that an organisation must constantly be on the
move to remain successful. History is replete with examples
of companies that struggled to stay apace with the market,
which made promises they could not deliver and which failed
to capitalise on opportunities available.
Amazon founder Jeff Bezos once said that a brand image for a
company is like a reputation for a person. You earn a reputation
by trying to do hard things well.
And much like some people, some companies start out with
good enough intentions, but run out of steam owing to many
reasons: they can’t stay faithful to their image, send confusing
or irrelevant messages to others, cannot reinvent themselves or
simply end up folding under pressure.
However, Al Jaidi understands the tricks of his trade too well
– he knows to sustain and manage a company’s reputation, one
has to manage the experience it offers. And the first element
of that experience is the product/(s) – after all, one cannot sell
bad products or services for long. To this add OIC’s unmatched
service levels.
Therefore, one cannot but agree that ultimately, it is sheer
consistency that wins the race.

15
air
cargo Airport
update

Sharjah Aviation Services at

Sharjah Airport
No stopping us now...
Sharjah Aviation Services at Sharjah Airport is going from strength to strength
and shows no sign of slowing down even during economic crisis.
Chandrima Dutta reports.
and on-time deliveries. Sharjah handled 360,094,718k of cargo,
up an impressive 46.51% compared to last year.
The UAE is traditionally a re-distribution hub and Sharjah
Airport finds itself well placed to capitalise on the various
opportunities and potential that exists. With its strategic
gateway location and clear and efficient regulations, the Airport
has positioned itself as ‘freighter friendly.’
One of the most unique features that distinguishes it from
the rest and wins new business is its adaptability and ability to
tailor its services to an airline’s specific needs. This has brought
in major cargo carriers and then one step follows the other.
2010 was also a year of continued growth with several new
passenger and cargo contracts being secured. Mach Air Cargo
now operates a new route from Sharjah to Kazakhstan while
Thai Airways began operating a cargo service in October last
year with a weekly freighter schedule from Suvarnabhumi to
Schipol via Sharjah. January 1, 2011 saw Sharjah welcome
UPS 1562. Plus, Saudi Airlines Cargo Company (Saudi Cargo)
has chosen Sharjah Airport as its hub for freighter flights to
West Africa. Saudi Cargo is expected to operate 3 weekly
flights to Lagos, Nigeria and to N’Djamena, Chad. The flights
will be operated with B747 freighters.
As Sharjah charts out its ambitious plans, Mr. Shashi
Panicker, Head of Freight Centre at Sharjah Aviation Services,
Shashi Panicker, Head of Freight Centre at Sharjah Aviation Services shares his thoughts on what made Sharjah emerge ahead of its
game. Here’s an excerpt.
While the northern Emirate was not untouched by the global A lot of things work in synergy to pick up cargo
financial crisis, it has been kept relatively stable by more volume. What according to you has worked in
prudent policies over the past years. By holding on to the Sharjah’s favour?
surpluses earned during the boom years and increased focus on
human capital development, Sharjah is on a steady growth path.
The Emirates’ air travel sector is clearly on a roll. The Airport
managed to grow significantly by demonstrating high levels of
flexibility and service excellence.
The Airport saw positive passenger development as numbers
reached 6.31 million passengers compared to 5.7 million in
2009, an increase of 9.41%. The statistics also show a growth
of 6.43% in aircraft movement from 61,451 flights in 2009 to
65,401 flights in 2010.
Air Arabia, the largest low cost airline in the region has
predicted an annual average passenger traffic growth of 14-15%
over the next four years and an increase in the number of routes
from 67 to 75 by the year end.
The Airport also has a strong-hold in the cargo sector and been
successful in maintaining its reputation for efficient handling

16
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air
cargo Airport
update
Odd size piece loading at Sharjah Airport
Sharjah’s productivity revolves around our flexibility to do
business, our approach to customers and more importantly
knowing our customer’s businesses well. This enables us to
tailor manage and offer them a smooth handling process at an
affordable cost without compromising on mandatory standards.
In addition, I feel competitive pricing, and the service that
goes along with use of modern and state of the art facility and
equipment are definite advantages to our customers who choose
to operate from Sharjah. Our connection and cut off timing for
connecting freight within the Airport and between Airports adds
to our strengths.
Besides, we are served with a home-based carrier Air Arabia
which is prominent and outstanding both at passenger and cargo
uplifts. We also have a unique and dedicated handling facility
for livestock, which forms a large part of our commodity
movements. Much to our customer’s advantage, we serve a
wider range of traffic flow to Europe, Africa, the Middle East
and the sub continent, which are important buoyant markets.
Overall, user friendly technologies, greater connectivity, and
our efficient and friendly approach to business have helped us
cope with rapid growth and stiff competition.
What infrastructure facilities are you providing to
airlines and cargo handlers operating at Sharjah?
At Sharjah, we offer bonded warehouse facility to agents
allowing them to independently handle cargo making it easy,
cost effective and user friendly. In addition, Sharjah Aviation
Services offers larger storage facilities for additional and
18
oversized cargo as well.
Our cargo centre comprises of 5 terminals serving our
customer demand. This extends to 45,000 Sq meters of
handling facility.
Sharjah accommodates almost all of the aircraft including An124.
We are also able to accommodate A380 should the need arise.
How has the Airport’s performance been in terms of
cargo traffic in 2010?
Against an international slowdown in airfreight volumes,
Sharjah has remained a solid performer in recent years.
In 2010, we have managed to handle 360,094,718k of cargo,
up an impressive 46.51% compared to last year. Cargo traffic
spiked to an incredible 33,595,971k in August, historically one
of the busiest months at the Airport.
Outstanding on-time performance was achieved, consistently
exceeding 96% throughout 2010. 97.75% on time performance
was achieved in August 2010.
Besides positioning yourself as a key stop-off location
for airfreight being transferred between Europe and
the Far East, what other marketing activities are you
carrying out to spread awareness?
Our marketing efforts are focussed and targeted to our in-
house operators and scheduled carriers who operate in and out
of Sharjah. We have positioned ourselves as a company that
emphasizes personalised and timely service and market best
pricing.
While our research shows that this is already a great strength
 Airport
of our organization, we seek to improve continuously in this area.
Plus, we operate relief cargo flights carrying medical
and humanitarian supplies to disaster-stricken areas
around the world.
Are you investing in technology/solutions to stay on
top of the game?
We have an in house smart cargo solution system, which
supports our auditable activities in every/all areas of our
operation. The solution is C2K and EDI compliant and includes
all industry improvements that are brought forward offering
total system solution to all our customers.
How do you defend your position with neighbours
who are market heavy-weights such as Dubai and Abu
Dhabi Airports?
The sheer number of Airports in close proximity offering
somewhat similar services and facilities is something we have
to deal with regularly.
However, we pursue and service a niche market and our
facilities and operational advantages are there for the industry
to recognise. We focus on value creation and not on costs.
Your assessment of the impact of the global
slowdown on the air cargo industry and how can its
effects be minimised?
Fact File
Jointly owned by Sharjah Airport Authority and Air
Arabia, Sharjah Aviation Services is the one-stop-shop
for all cargo, ramp and passenger needs. No matter how
big, small or specific the requirement – from transporting
perishable or hazardous goods to vulnerable cargo such
as equine or marine life, from warehousing to track and
trace – or ensuring the comfort and safety of passengers
with the dedicated Hala ‘Welcome’ Service and luxury
Lounges, Sharjah Aviation Services has it covered and is
working hard to propel its growth as a preferred destination
by airlines, cargo operators and investors worldwide.
To cope with increasing pressures of growing passenger
and freight volumes, Sharjah Aviation Services has made
substantial investments in purchasing new equipments
across all its operations including 35 tonne state-of-the-
art hi-loaders. New warehouse racking, increasing import
capacity by 35% and export capacity by 12% has been
installed, providing a dedicated dangerous goods storage
area in addition to a new customs delivery facility.
Sharjah Aviation Services has 1,950 highly competent
staff on hand 24/7/365 and the regions’ newest Ground
Support Equipment fleet of more than 200 specialised
vehicles.
Perfectly situated for easy access to Port Khor Fakkan
on the Gulf of Oman and Port Khalid on the Arabian Gulf,
Sharjah Aviation Services operates its own Cargo Trucking
business and provides a fully intermodal air, land and sea
service – globally.
Boasting the fastest turnarounds and shortest connection
19
air
cargo
update
Recession has hit us all. But we have adjusted to the market
trend in understanding today’s customer requirement both at
price and service. This has enabled us to sustain our position
and performance.
Are you reviewing security policies to avert the
recent incidents? Does this have massive financial
implications?
As a company we are conscious and very vigilant to all
security matters that come up and we follow instructions
given to us by the governing authorities that are very keen on
investments and improvements on security measures.
What are your plans for Sharjah Aviation Services
going forward?
Sharjah has been successful in maintaining its reputation for
efficient handling and on-time deliveries. The biggest challenge
this year would be to maintain and improve our service
commitment to existing customers.
Undoubtedly, infrastructure and resources will also need to
grow to cope with the continual increase in tonnage handled,
and we have a growth plan in place for that. Plus, this year would
see us investing more on our staff - our most important asset is
our employees – their knowledge and expertise contributes to
growth and success of our organization.
times in the region - for both passenger and cargo
operations – during 2010, Sharjah Aviation Services
handled 360,094,718k of cargo for major customers such
as Singapore Airlines, Martinair, Cargolux, Lufthansa,
Maximus and Egyptair Cargo.
Throughout 2010 Sharjah Aviation Services was an
active supporter of a number of relief efforts. Last year, it
waived the handling costs, including all landside and airside
charges, on two Martin air and one Atlas Air humanitarian
flights from Sharjah to Haiti and donations were also made
to the Red Crescent Society.
Work has commenced on a new AED 500 million CAT II
runway at Sharjah.
air
cargo
update
Forwarders need to see greater benefit
before they embrace E-commerce with air
carriers, says FIATA/TIACA survey
Freight forwarders need to see
realizable and significant value added
to the airport to airport portion of the
air cargo supply chain before making a
commitment to e-commerce such as the
IATA led e-freight program, according
to a global survey of some 450 freight
forwarders conducted jointly by FIATA,
the International Federation of Freight
Forwarders Associations and TIACA
The International Air Cargo Association.
Freight forwarders from 84 countries
responded to FIATA and TIACA’s poll
to ascertain their views on e-commerce
with the largest number of participants
from Australia, Canada, Egypt, India,
Netherlands, Pakistan, Singapore,
South Africa, Spain, Taiwan, United
Arab Emirates, United Kingdom,
United States, Vietnam and Zimbabwe.
According to the survey, some 55%
of respondents stated they were aware
of IATA’s e-freight project yet less than
20% said they were participating in the
initiative.
Bill Gottlieb, Immediate Past
President of FIATA, who helped
lead the research, said, “The initial
findings clearly show a positive shift
in forwarders’ attitudes to e-commerce
with forwarders willing to invest
only if airlines do likewise. They see
themselves evolving and becoming more
recognized as the carrier’s customer in
the air cargo supply chain and pursuing
modernization of the documentary
process to entice them towards
technology led industry initiatives.”
“Whilst many positive messages
came out of the survey, it is clear that as
an industry we have much more to do to
make forwarders embrace e-commerce
in the air mode, as they have already
done successfully with land and marine
transport. With nearly half of the
forwarders claiming not to have heard
of e-freight, we have to find ways to
reinforce the message. It is clear the
industry has to evolve to a new way of
doing business utilizing e-commerce but
we need to broaden the approach and
E-Freight
think outside of the box in terms of how
we embrace technology,” he said. “IATA
was successful in thinking outside the
box when it implemented paperless
ticketing, making life simpler for
passengers and less costly for carriers.
We have therefore asked IATA to
collaborate with FIATA to create a new
cargo documentary and data flow driven
by technology, to simplify the process
thereby eliminating an antiquated
process. This should also drive change
in the status of the forwarder and airline
relationship.”
Gottlieb added, “There is great
potential for companies to embrace
today’s e-commerce standards so they
benefit from the efficiency and enhanced
customer service capability but we have
to focus on value added if everyone is
going to win in the future. Air cargo
remains woefully behind other modes
of transport in terms of e-commerce. We
know that for every industry it takes time
and investment to build momentum, but
right now there clearly isn’t enough
value added to entice many airlines
and the wider international forwarding
community to ‘come to the table’.”
Daniel Fernandez, Secretary General
of TIACA, said, “The IATA led
e-freight program is clearly the most
significant e-commerce initiative in
our industry, as highlighted by the
latest announcement that DHL Global
Forwarding and Emirates SkyCargo
are pairing up in a new project to
sufficiently reduce errors and eliminate
20
tons of paper documents across their
networks by becoming the leading
implementers of e-freight. However,
the survey clearly shows that for other
forwarders around the world, we as
an industry still have a lot to do to
promote the full benefits of trading
electronically and eliminating paper
from the air cargo process.”
He added that the need to work
together with industry partners to
facilitate important new e-commerce
developments can also be supported
through the new global industry
advisory group being created TIACA,
FIATA, IATA and the Global Shippers’
Forum (GSF).
Daniel Fernandez said, “E-freight
is making some progress in terms of
moving the air cargo supply chain to
an electronic, paperless environment.
That is vital when you consider that
air cargo shipments can require as
many as 30 paper documents. This
unnecessarily slows the air cargo
process and is an undue strain on
resources. It is estimated that the
volume of paperwork that currently
accompanies airfreight shipments is
the equivalent of 7,800 tons, which
is sufficient to fill 80 747 freighters
annually. That isn’t sustainable in
modern day business, particularly for
an industry needing to optimize cost
efficiencies so as to remain competitive
and in profit.
“We strongly support automation and
paper-free transactions and, as such,
TIACA endorses e-freight as a viable
means for achieving these goals for the
air cargo supply chain. Nonetheless, we
cannot ignore the feedback from freight
forwarders that completed the survey
and we want to share the subsequent
analysis with our industry partners to
see how we can make e-commerce more
viable and an even bigger priority for all
players in the air cargo supply chain in
2011. Everyone needs to see how it is
going to lower their costs and improve
their efficiency.”
 E-Freight
air
cargo
update

Fact sheet – IATA e-freight

IATA e-freight is an industry-wide program that aims to reduce the use of
paper documents in the airfreight supply chain by moving to a simpler, paper-
free, electronic environment. It involves among others: airlines, shippers, freight
forwarders, ground handling agents, and customs authorities.

Target for 2011:

Focus is now on volume: 100% e-freight by 2015

Benefits:
• Industry cost savings of up to $4.9 billion annually
• Speed: reduction in transfer time by 24 hours
• Accuracy: Electronic documents eliminate manual entry errors
• Visibility: Electronic messages allow for online tracking and tracing
• Better for the environment: IATA e-freight will eliminate more than 7,800 tonnes of paper documents, the equivalent
of 80 Boeing 747 freighters filled with paper.

Status:
• The project is aligned with WCO’s and UN’s global e-customs initiatives
• IATA e-freight business process, standards, and documents developed
• 39 live IATA e-freight locations
• Austria, Australia, Belgium, Canada, Chile, China, Chinese Taipei, Czech Republic, Denmark, Dubai, Egypt,
Finland, France, Germany, Hong Kong, Hungary, Iceland, Japan, Luxembourg, Malaysia, Malta, Mauritius,
Netherlands, New Zealand, Norway,
Romania, Singapore, Slovakia, Slovenia, Spain, South Korea, Sweden, Switzerland, Thailand, UK and USA
• 894 live major airports
• A commercial vendor community has been established to support the IATA e-freight vision, pilots, and e-messaging
quality measurement
• IATA e-freight Handbook, the comprehensive guide to IATA e-freight, now published and available online
• 20 documents have been replaced by electronic messaging standards

Savings:
• Up to $4.9 billion per year when fully implemented

21
air
cargo
update
Right place, right time
Global heavyweight DHL continues its growth as a trade facilitator as
companies move to establish inventory and distribution hubs in the UAE.
Chandrima Dutta reports.
DHL UAE’s Country Head, Frank Ungerer
What if you need to send an important
package quickly to a recipient you may
have forgotten about?
And what if you are confronted with
a set of conditions or a particularly
intimidating set of logistical challenges?
Or, working under constraints of a tight
schedule that allows almost no room
for error? Well, the global leader in air
freight, DHL is the name which can get
onto its feet and get the impossible done.
The company, with all its innovative
initiatives has taken the air freight and
express service to a different level.
Interview
DHL can organize scheduled flights and
chartered planes from a wide range of
major carriers, as well as competitive
services on its own carrier, making it
flexible enough to help everyone from
first-time shippers to regular importers
and exporters of freight.
From serving only documents during
the 70s, DHL now caters to more
complex requirements involving heavier
weight shipments, real time track and
trace, customer automation, guaranteed
transit times and consignee-sold range of
services.
22
A global network composed of more
than 220 countries and territories and
300,000 employees worldwide, the
company offers customers superior
service quality and local knowledge to
satisfy their supply chain requirements.
Though a global name, ‘Think
globally, but act locally’ is what DHL
has always practised. And this has not
only enabled the company to spread
extensively across the region but also
reach the pinnacle of success in the UAE.
This is the sentiment that was reflected
in the statement made by DHL UAE’s
Country Head, Frank Ungerer, when he
said, “At DHL, we form partnerships that
respond to the unique needs of the UAE
customer - partnerships that can draw
from the global resources of DHL and
years of experience.”
The ‘No One Knows’ campaign
focuses on DHL’s expertise in combining
global leadership with local expertise to
help businesses across the region grow
and capitalize on the economic recovery.
Not that Ungerer is peddling any of
the usual clichés underlying the success
of the company – he was unravelling the
truth behind DHL’s local success.
Up until three decades ago, DHL was
little known in the UAE. However, the
company catapulted to success soon
after. Clearly, Y 2010 though not a good
one for UAE’s some business sectors due
to the global meltdown, was not that bad
for the express giant.
Robust performance
amidst gloom
“The impact of the economic downturn
reached the UAE later than other global
markets and we observed that the effects
were also less dramatic. In our industry,
we saw signs of a slowdown starting at
the end of the first quarter of 2009, and
picked up the first signs of a potential
recovery as early as the fourth quarter of
2009,” he said.
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we went underground.”

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Cavotec’s pop-up units can deliver any range of

services – from air and water, to fuel and power
– and then retract back into the tarmac when not
in use.
air
cargo
update
“Today, economic recovery is gaining
momentum in the UAE with the country
expecting to grow GDP between 3
to 3.5 percent in 2010. Despite these
encouraging statistics, the country
continues to be cautiously optimistic
about the outlook.”
Another key factor in the 2010 success
story was DHL’s focus on its strategic
role as a trade facilitator. The UAE has
a strategic position in the Middle East
and is set to cement a significant role as a
regional distribution hub.
Foreseeing growing demands from
businesses, DHL has already expanded
its air network with a new Aerologic
connection linking the UAE to China, the
fastest growing trade partner of the UAE.
“As far as the UAE is concerned,
companies are increasingly interested in
expanding market share in here. Going
by that, we are anticipating an uptake
in demand for logistics support as
companies move to establish inventory
and distribution hubs in the UAE.
For example, high tech multinational
companies are increasing their investment
in Dubai both as a distribution point
into the GCC as well as a hub linking
Europe/Asia supply chains. DHL has
long established capabilities to manage
the growing logistics demands from the
technology sector,” explained Ungerer.
“Plus, motivated people are key to
the success of our business and our
employees are all fully engaged and
driven to offer the best possible service
to our customers. This is particularly
Interview
evident when you look at the results of
our Employee Opinion survey which
continue to show marked improvements
in employee satisfaction levels year on
year,” he added.
Speaking on the fate of Middle East air
cargo industry, Ungerer said, “Although
2008 – 2009 was a difficult time for air
freight in all regions, Middle Eastern
airlines bucked the general industry trend
in 2009 with a freight growth of 3.9%.
It was also the first region to pull out of
contraction by exhibiting FTK* growth
in July 2009. By December, the region
had carried 7% more air freight than in
early 2008.”
“In the first quarter of 2010, Middle
Eastern airlines benefited from regional
economic growth and enjoyed robust
freight growth. By June, regional carriers
had grown at an annualized rate of more
than 30%. As 2010 came to a close,
they carried 14% more freight than pre-
recession levels. Even as some developed
economies continue to struggle in the
face of sluggish consumer demand, the
emerging markets continue on its uphill
trajectory which is likely to support end
demand, and therefore trade.”
“As the global financial crisis became
synonymous with a manufacturing
crisis, the Middle East, which is more
of a conduit for goods exchange and
re-exports rather than a manufacturing
centre, was somewhat cushioned from
the effects of the global recession. The
existence of the GCC Customs Union
which facilitates trade between GCC
24
states, coupled with an increasingly
bigger number of exporters in Dubai kept
exports buoyant in 2009.”
While the UAE continues to drive
growth and act as a regional logistics hub,
DHL has achieved significant milestones
across the region. This includes
the strengthening of infrastructure
capabilities in Oman and Lebanon,
and industry recognition of service
excellence and contribution to the region
as a partner of growth in Jordan, Turkey
and Morocco.
While remaining the undisputed
market leader in the Middle East,
DHL has strengthened capabilities
with investments and enhanced
service offerings for customers. As a
facilitator of trade, DHL’s position has
been bolstered by the global economic
recovery which is gradually spreading
throughout the region.
“The emerging markets are also
expected to continue on its uphill
trajectory which will support end
demand, and therefore trade,” he said.
Further challenges
Though 2010 was a good year for the
company, it has to deal with some obvious
problems to see itself permanently in
green.
Currently, security has been a primary
concern for all air cargo operators.
“Security is a top priority within DHL
and our in-house security measures
have always been very robust. As a
consequence we have not had to make any
major changes to our physical processes
to comply with the new rigorous freight
screening or reporting regulations issued
by the TSA in the US and various EU
countries. The majority of our airside
facilities around the globe are already
TAPA certified, which indicates our
existing investment in cargo security.
As such, DHL has not had to invest a
massive amount of capital to comply, due
to our previous and ongoing investment
in security, which has limited the cost
impact on our business,” said Ungerer.
“As a truly global and major
stakeholder in the airline and airfreight
market DP DHL is proactively working
with all stakeholders to see how our
experience can positively contribute

towards making airfreight movements
safer today and in the future. Suffice to
say, in this regard we are fully compliant
with all global screening and reporting
protocols with regards to moving freight
either on our own fleet of aircraft, or
when using commercial carriers to move
freight.”
Talent crisis remains to be a major
challenge even during the worst of economic
times. Though market conditions are such
where the jobs are almost not available,
attracting and retaining qualified personnel
remains to be a major issue. According
to Ungerer, “There may be fewer jobs
currently so employees are perhaps pleased
with the status quo, but not necessary loyal
and engaged. That will not last long and the
moment the economy sees a slight upturn
(which we are already seeing in the Asia
Pacific region), it is these employees that
will be in high demand. Employers that
are seeing positive growth indicators
are recruiting ahead of the curve and
using this opportunity of not having to
compete for talent to get key employees
into their business.”
“Organizations that have been complacent
and ignored retention strategies in tough
times will have a high cost to pay in the long
run. As leaders, we can’t be thinking only
of the current situation. If a company has
to come out of this recession stronger and
ready for the future – they will only be able
to do it with their best people. Therefore the
retention and recruitment talent challenges
should be top of mind for all managers.
You always hear of companies saying that
employees are their most important asset.
But how many companies actually ‘walk
the talk’ and more importantly value and
nurture the talent in their organizations. I am
very proud that one of the pillars of DHL’s
strategy focuses on ‘Motivated Employees’
which encompasses retention, attraction and
development of talent within the network.
This will give us the leverage and skills
needed to take us into the future.”
Customer service
at its best
On the other hand, customer needs have
become increasingly sophisticated over
the last three decades. DHL has invested
significantly in the development of wide
range of service offerings, facility expansions
Interview
and more presence in retail outlets.
“Listening and responding to the needs of
our customers is a critical success factor for
DHL in the UAE,” stated Ungerer.
In October 2010, DHL partnered
with Dubai Customs to launch a new
and improved programme aimed at
modernizing customs procedures in
Dubai. The new customs clearance
platform, called Mirsal 2, will create a
simplified and more transparent customs
clearance process for customers, and
will reduce costs as well as the time
spent processing shipments in and out of
Dubai.
DHL has also expanded its presence
in the UAE with the opening of a retail
service point in Mirdif City Centre. The
new service point ensures that DHL
continues to meet the growing logistics
needs in the UAE by offering increased
accessibility for its customers. DHL
currently operates 23 service points
across the UAE.
Going Forward
In 2011 we will offer more services
and solutions for the SME sector. We
have recently partnered with the Dubai
Government Export Council, which has
allowed us to communicate and build
more effective relationships with the
SME sector across the UAE. Our aim is
25
air
cargo
update
to not only inform them of our products
and services that will ultimately help
grow their businesses, but also make
them aware of important customs and
industry related news that may impact
their businesses.
In addition, we will also continue to
look at ways in which to improve our
service offering, offering our customers
with the choice and convenience they
expect, and deserve. DHL has been
a leader in the Middle East logistics
industry for the past 30 years through
our innovation, service excellence and
commitment to providing customers with
superior logistics solutions.
Middle East’s freight growth trends
have returned to pre-recession patterns
and the region is likely to enjoy freight
growth through 2011, albeit at levels
lower than at the initial stage of economic
recovery in 2010.
Additionally, the Middle East
and North Africa (MENA) region is
forecasted to grow 4.3% in 2011 while
GCC states are expected to grow nearly
5%. As more Middle Eastern countries
continue to focus on non-oil industries
and develop export-oriented economies,
we can expect air freight growth in the
region to remain strong.
*FTK – freight tonne kilometer
air
cargo Interview
update

Innovation and quality

pay off for UPS
by Chandrima Dutta
As the global freight business is poised
to continue its strong recovery UPS is
feeling pretty confident. The company is
upbeat about its performance last year,
as more companies in the UAE began
outsourcing their logistics to enhance
efficiency and enable them to focus on
their core competencies.
UPS got off to a strong start in 2010.
The company saw increased activity at
its brokerage/import operations in Abu
Dhabi Cargo Village and brought its
superior customs brokerage services to
customers in Abu Dhabi and Fujairah,
in addition to the Dubai gateway.
Abu Dhabi operations were equipped
with DIAD IV technology to ensure
maximum flexibility in field transmission
capabilities and connectivity options.
DIAD IV was the first such device
in the industry to incorporate Global
Positioning Satellite (GPS) technology.
“2010 also saw us introduce Import
Control – it enables customers to further
their reach in the global marketplace by
allowing one party to be in control of
inbound shipments, wherever they are
initiated. This minimises delays that can
be generated by communications, billing
or commercial invoice reasons and thus
reduces potential costs to the customer in
both time and money,” said John Tansey,
General Manager, UPS UAE LLC.
“We also signed a memorandum of
understanding with Dubai Customs in
October supporting Emersal 2, business
to government initiatives. The agreement
enables UPS to submit all customs
declarations through its internal IT
system, pre-clearing packages before
they physically arrive in the country. This
increases the speed of UPS shipments to
John Tansey, General Manager, UPS UAE LLC
market, by obtaining electronic clearance
from Dubai Customs whilst the package industrial production and international delivered an average of 14.4 million
is still en route, thereby streamlining the trade is increasing demand for UPS’ packages a day, a 3.8% increase in the
processing of the package once it has transportation services. Recent results first nine months of 2010 as compared
arrived in the UAE.” reflect an improving global freight with the same period in 2009.
“In addition, we launched a new global environment with demand across the “This is backed by more than a century
communications platform to demonstrate business segments improving. In the of experience as UPS continues to deliver
the full extent of its logistics capabilities. first nine months of 2010, UPS achieved logistics solutions that help businesses
The theme, “We g Logistics,” global revenue of $36.1 billion as get their products to market first, gain
reflects UPS’s passion for delivering compared to $32.9 billion in the same operational and cost efficiencies, and
transportation and supply chain solutions period of 2009 (an increase of 9.7%), improve customer loyalty,” said Tansey.
that can help businesses better compete while net income was up 69.8% globally
in the global marketplace.” as compared with the same period last Inventing ways to success
Globally, resumed growth in year. In volume terms, UPS globally UPS has more than 100 years’ experience

26

in this business. “We stared out in 1907 as
a messenger company in Seattle, and have
grown into the world’s largest package
delivery company and a global leader in
logistics services. We achieved this growth
precisely through a philosophy of service
excellence which remains a pillar of UPS
culture to this day.”
However, without constant nurturing
and reinventing, any company would fail
to strike a chord. So how has been able
to sustain itself over time? “Its nothing
but service excellence”, said Tansey. And
how do you achieve that?
“By using our integrated global
transportation network, unique in the
industry; by offering a broad portfolio
of products that ensure each and every
package or freight shipment gets the ideal
service level; by making the necessary
investments to ensure our fleet and assets
are up-to-the-minute, ready to respond to
the needs of our ever-growing customer
base around the world; by making use
of the most sophisticated technology
to power our services and to provide
our customers with complete visibility
of their shipments; and perhaps most
importantly, by investing in our workforce
of more than 400,000 committed UPS
employees who make delivering service
excellence their priority each and every
day,” explained Tansey.
“We also offer a range of products
for the transport of packages (up to 70
kg) and freight (more than 70 kg). This
flexibility means UPS customers can
always find the right service option for
their shipments, and we can adapt to our
customers’ changing requirements over
time. Global trade is here to stay, and as
world markets move closer together, UPS
Interview
will be there to facilitate that trade.”
Working its way through
recession
Just like everyone else, UPS’s business
was affected by the global economic
downturn in 2009, in the Middle East
and beyond. “We remained competitive
by continuing to do day-in and day-out
what we have always done: provide the
most reliable and most efficient service to
customers globally in the transportation
industry. We also made the necessary
investments to ensure we emerged from
the recession stronger than ever,” he said.
“One of the reasons why UPS has
weathered all the recessions in its 103-
year history is that we have always
focussed on the same key principles –
reliability, efficiency, speed, value and
customer service. In this respect we don’t
27
air
cargo
update
feel our industry has changed much in the
last century, let alone the last few years.”
“But now, as we enter 2011, we are
definitely looking forward rather than
behind. Our global financial results
for the first three quarters of 2010 (last
quarter earnings due February 1st) have
been very positive indeed, so we’re
optimistic about the future of our industry
everywhere we operate, including the
Middle East. Global trade is here to stay
and as the global economy recovers,
UPS will be there to help its customers
take advantage of new opportunities.”
Speaking on the Middle East as a
market Tansey said, “While we don’t
make public country-or region-specific
growth figures, the Middle East is an
important market for UPS, where we
see much potential. We are committed
to growing our business here, as we are
to growing the business globally, and
we are confident that UPS is in a great
position to achieve those goals.”
“We believe the industry has
bright prospects in the Middle East
and beyond. Economic growth will
resume, with global trade leading
the way, and UPS will be there to
benefit from and help promote this
growth. We have a diversified, global
product portfolio that’s helping us take
advantage of growth opportunities. And
UPS employees around the world are
working diligently to help our customers
compete in the global marketplace.”
“World markets are moving
inexorably closer together, and as
long as people wish to trade across
countries and continents, companies
like UPS will be there to provide
that service and help their customers
prosper,” Tansey concluded.

Vision for Intelligent Aviation Security -
Coordinated Response on Cargo Security
Giovanni Bisignani, IATA’s Director General and CEO
By close of last year, the International
Air Transport Association (IATA)
called on security regulators around
the world to work together to make
the skies more secure by addressing
the challenges related to cargo
security and data collection. IATA
also unveiled plans to lead a global
effort to build an airport checkpoint of
the future, which will tighten security
and ease passenger hassle.
“We are much more secure than
in 2001, but there is room for
improvement,” said Giovanni Bisignani,
IATA’s Director General and CEO.
Bisignani identified several areas where
more progress is needed to further
improve aviation security:
Cargo Security: “The events in
Security
Yemen have put cargo security at the
top of our agenda. Air freight drives
the world economy. The products that
we carry represent 35% of the total
value of goods traded internationally.
In 2009, airlines carried 26 million
tonnes of international cargo. By 2014,
that will increase to 38 million tonnes.
Transporting these goods safely, securely
and efficiently is critical,” said Bisignani
who commended all the governments
for their swift, coordinated and targeted
response. Bisignani noted four principles
to drive air cargo security programs.
Supply Chain Approach: “The
entire supply chain, from manufacturer
to airport, has a responsibility for secure
shipments. The supply chain approach
must be driven by government and
29
air
cargo
update
industry cooperation on investment,
processes, technology and risk
assessment. Many countries, including
the UK and the US, have advanced
supply chain solutions. The industry
is committed. IATA’s Secure Freight
program is helping to promote this
critical component of our cargo security
efforts,” said Bisignani.
Technology: “Airport screening
cannot be our first line of defense but it
is an effective complement to intelligence
and supply chain solutions. Currently, there
is no government certified technology to
screen standard size pallets and large items.
There is some promising technology but
it is taking far too long to move from the
laboratory to the airport. We must speed up
the process,” said Bisignani.
air
cargo
update
E-freight: IATA’s e-freight program
gives governments an important
information tool. “By converting some
20 freight documents to an electronic
format, we are improving efficiency and
providing the tool for accurate insight
into who is shipping what and where. As
the industry increases e-freight volumes,
governments must expand the use of
e-freight from inbound shipments to
outbound as well, and use this data to
intelligently manage freight security,”
said Bisignani.
Risk: Industry has cooperated with
governments to help mitigate risks
identified through their intelligence
operations. “But effective solutions
are not developed unilaterally or in
haste. We have seen many cases where
these have unintended consequences.
It is still early days. Industry is
cooperating with government
directives on targeted actions for
Yemen-origin cargo. If there are any
longer-term adjustments required,
we must do so with all the facts in
hand with measures targeted to meet
specific risks,” said Bisignani.
Checkpoint of the Future:
IATA called on regulators and
industry to collaborate to modernize
the 40 year old airport screening
process. IATA has a short and long-
term vision for the next generation
checkpoint. In the short-term, IATA
is already working on concepts and a
new process.
“Belts, shoes and
shampoos are not
the problem. We
must shift the
screening focus
from looking for
Security
bad objects to finding terrorists. To do
this effectively, we need intelligence
and technology at the checkpoint.
The enormous amount of data that
we collect on passengers can help
governments to identify risks. The
overall process must become much
quicker and more convenient. It is
not acceptable to treat passengers as
terrorists until they prove themselves
innocent,” said Bisignani.
“My long-term vision is for
passengers to be able to get from
the entrance of the airport to the
door of the aircraft in a seamless
and uninterrupted process,” said
Bisignani.
Standardize Data Collection:
Data is critical to aviation security as its
effective use helps governments to vet
travelers and identify threats. Through the
International Civil Aviation Organization
(ICAO), governments agreed to global
standards for data elements and a
process to collect that information. Not
all governments follow the standards
which are adding to the $5.9 billion that
airlines spend annually on security. It
takes about $1 million to build systems
for each country with a non-standard
data requirement. Adding just one non-
standard element to data collection
is a $50,000 system cost. Bisignani
highlighted concerns about new data
requirements in India, China, South
Korea and Mexico. “All these exceptions
consume money and resources but none
improve security or border control.
The challenge is to work with
governments
t o
implement harmonized standards,” said
Bisignani.
IATA presented five recommendations
based on these principles:
1. Implement formal consultation
with all airlines including non-US
carriers
2. Refine existing emergency orders
to address the international
environment
3. Streamline the data collection
process
4. Strengthen government to
government outreach for greater
harmonization and coordination
5. Start developing a next generation
checkpoint
“Defining coordinated security
responses with collaboration between
industry and government have made
more progress in the last one year than
at any time since the tragic events of
2001. Governments and industry are now
aligned with a common goal. We must
use this momentum to move from words
and agreements, to actions and results,”
said Bisignani.
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pages 1 - 13.indd 6 11/8/09 3:27:44 PM

air
cargo NEWS - MIDDLE EAST & africa
update

Dubai airport sees growth in

freight volume
Dubai International’s freight volumes
rose by 0.3 per cent to 192,405 tonnes in
November compared to 191,897 tonnes
recorded during the same period last
year.
The subdued growth rate in monthly
cargo volumes seen in recent months
can be partly attributed to the surge in
monthly freight volumes recorded during
the corresponding months of 2009 due
to improved global economic activity
and clearing of inventories worldwide.
Year to date, Dubai International has
maintained a healthy growth rate with
cargo volumes rising 19.3 per cent to
2,081,024 tonnes compared to 1,744,645
during the corresponding period in 2009.

Sharjah records 9.41% growth

Sharjah International airport said last and easy experience-a fact that is clearly it enjoys among the public, due to its
year was one of the best years for the demonstrated by airline and air cargo spectacular promotions and special offers,
airport as it recorded a double-digit growth companies’ tendency to choose it as their competitive fares, numerous destinations
in passenger traffic and another significant preferable airport, and Sharjah as their and modern aircraft fleet, and this is what
growth achieved in freight volume despite destination. encourages passengers to travel several
a tough year for the industry globally. Al Hajri said last year’s positive results times a year. The number of passengers is
The airport’s performance results for would further boost the airport’s growth, expected to increase in the coming years,
2010 show an increase of 9.41 per cent emphasising the success of the airport and this requires ongoing development and
in the number of passengers rising to management in facing challenges and expansion operations in the airport to keep
6.31 million passengers compared to 5.7 adopting the best procedures that would pace with this rapid growth. The results also
million arrivals in 2009. The statistics also solidify the airport’s position in the region. reflect the fact that the airport succeeded in
show a growth of 6.43 per cent in aircraft These results provide a concrete proof of attracting more airline companies, while
movement from 61,451 flights in 2009 to the airport’s ability to maintain high growth some companies have increases the number
65,401 flights in 2010. rates with regard to air traffic, as well as of of flights and open new routes.”
As for cargo handling, the volume of sea- the passenger’s growing interest in travelling The airport’s success can also be
air cargo handling increased significantly through Sharjah airport and the commitment attributed to the contribution of the airport’s
by 32.39 per cent from 50,355 to 66,665 of airline companies towards the airport. outstanding work team which always seeks
tonnes. These gains are also linked to the to achieve ongoing progress, and the
“The year 2010 was one of the best significant momentum and great success Department of Civil Aviation has notably
years for the airport during which record attained by Air Arabia, the UAE national played a great part in the airport’s march of
rates were registered, whether in terms of carrier, as well as the good reputation success and ensuring safety.
passenger traffic or freight volume, despite
the impact of the global financial crisis
in the past few years, with the aviation
industry being directly and indirectly
affected,” Dr. Ghanem Al Hajri, Director
General of Sharjah Airport Authority
(SAA), said.
These results reflect the airport’s
efficiency in dealing with the effects
of the global financial crisis which
affected the global aviation industry, as
well as its ability to continue to achieve
further accomplishments and provide
the best services and facilities that made
travelling via Sharjah Airport a special

32
 NEWS - MIDDLE EAST & africa
Abu Dhabi International Airport closes
2010 with 12.2% increase in passenger
traffic and 16% in cargo
Abu Dhabi Airports Company (ADAC)
revealed a 12.2% growth in passenger
traffic at the Capital’s international
Airport in 2010, compared with 2009,
with nearly 11 million passengers passing
through the airport.
The positive passenger development
during the year 2010 is also reflected
in the aircraft movement numbers that
reached 112,000 aircraft, a jump of 10%
in comparison to 2009.
Levels of air cargo demonstrated a
dynamic growth of 16% in 2010, registering
438,000 tonnes of cargo handled at Abu
Dhabi International Airport.
The double-digit increase of passenger,
aircraft and cargo figures are a strong
indicator of the healthy growth that the
Abu Dhabi economy is enjoying. Abu
Contract for aircraft hangars, cargo complexes
attracts strong interest
A number of international and
local firms are preparing to seek pre-
qualification to participate in a tender
linked to the establishment of aircraft
hangars and cargo complexes at Muscat
and Salalah international airports. Nearly
28 companies have so far collected pre-
qualification documents signalling their
desire to bid for the keenly awaited
contract -- the latest in a growing array
of projects that will support the multi-
billion rial modernisation of the nation’s
aeronautical infrastructure.
Importantly, the hangars will also help
attract new airline customers to consider
Dubai logistics company to run Mogadishu airport
Dhabi Airports Company has invested
heavily in attracting new airlines and
encouraging existing airlines to expand
their services to Abu Dhabi through new
routes and increased frequencies.
The report indicated that in 2010 Abu
Dhabi International Airport welcomed 5
new international airlines, added 6 new
destinations and serviced an average
of 41 additional frequencies from its
existing airlines – a 13% increase in the
total weekly outbound flights compared
with the previous year.
James E. Bennett, Chief Executive
Officer of ADAC commented: “2010
witnessed strong traffic development
at Abu Dhabi International Airport,
well above the world airports average
growth. Our developmental strategy,
the modernised Muscat gateway for their
hub operations and aircraft maintenance
services. Aircraft and passenger traffic
through Muscat International Airport
is projected to increase on the back
of strong economic, commercial and
tourism growth envisaged in the coming
years. Development of the aircraft
maintenance hangars will be pursued in
tandem with the establishment of cargo
facilities at both international gateways.
At Muscat, the new cargo complex will
consist of a cargo facility, a central
utility plant, a live animal centre, and
various ancillary buildings. Covering
Dubai-based SKA Air & Logistics
has signed a contract with Somalia’s
transitional government to take over
the running of Mogadishu international
airport.
“We have not formally taken over
at this stage but in few weeks’ time we
will be taking over management of the
airport,” a company manager told the
33
air
cargo
update
combined with Abu Dhabi’s increasing
awareness as an attractive business and
tourist destination, led us again to a very
positive end of year outcome. We would
like to express our warmest appreciation
to all our partners for their contribution
to one more year of dynamic growth
and smooth operation for Abu Dhabi
International Airport”.
London, Bangkok, Doha, Manila and
Cairo continue to be the top five routes,
collectively claiming 20% of the total
passenger traffic during 2010.
Southern Africa has demonstrated the
highest growth as a region served from
Abu Dhabi International Airport in 2010
with a 42% increase in traffic, followed
by North Africa and the Far East with an
increase of 24% and 14% respectively.
an area of 33,000 sq metres, the facility
will be designed for an annual capacity
of 260,000 tonnes of freight in the
first phase, with the option to ramp up
capacity to 500,000 tonnes in the second
phase. The facility will also feature
a state-of-the-art material handling
system for handling freight.
At Salalah, a similar cargo complex,
complete with a section catering to live
animals, is envisaged. The facility will
be equipped to handle 50,000 tonnes of
cargo in the first stage of its development,
with a doubling of capacity envisioned
in the next phase.
media.
The 10-year contract covers
“management of the terminals, security,
screening and also passenger security,”
he said, without disclosing any financial
details.
Several SKA staff members are already
present at Mogadishu airport where they
have started training Somali personnel.
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 NEWS - MIDDLE EAST & africa
Dubai Trade, Emirates Sky Cargo sign
MoU to open door to full-scale integration
of sea-air freight movement
Dubai World’s online trade facilitator says it is a stepping stone to further
strengthen Dubai’s competitive advantage
Jamal Majid Bin Thaniah, Ram Menen,
Mohammed Al Muallem, Senior Vice President
and Managing Director, DP World UAE Region,
Mahmood Al Bastaki and others.
Dubai Trade, the premier trade
facilitator under Dubai World, signed a
Memorandum of Understanding (MoU)
with Emirates SkyCargo to create a
partnership that will allow Dubai Trade
to cater air freight services through its
single window portal.
The MoU was signed by Jamal
Majid Bin Thaniah, Group CEO, Dubai
World & Chairman, Dubai Trade, and
Ram Menen, Emirates’ Divisional
Senior Vice President Cargo, at a brief
DHL completes
upgrade programme
in Lebanon
DHL has marked the 35th anniversary
of DHL Express in Lebanon with the
completion of a $4.2m infrastructure
upgrade programme. The drive involved
the establishment of a logistics facility at
the Beirut Free Zone and the expansion of
the DHL Express Beirut Airport Facility
at Rafik Hariri International Airport.
The program also bolstered DHL’s
network capabilities in Lebanon with the
addition of three new service points and
refurbishment of two locations.
ceremony in Jebel Ali.
The MoU proposes allowing users of
Dubai Trade’s portal, www.dubaitrade.
ae, to directly access the air freight
services of Emirates Sky Cargo through
the website, while payment for the
services is made directly to the cargo
service provider.
Jamal Majid Bin Thaniah, Group
CEO, Dubai World & Chairman, Dubai
Trade, said, “This MoU is a well-
targetted initiative that will serve as a
stepping stone towards the full-scale
integration of sea-air cargo movement
and, consequently, to further strengthen
the competitive advantage of Dubai as
the region’s leading trading hub. The
supply chain industry as a whole will
benefit immensely by this strategic move.
We congratulate Emirates Sky Cargo and
Dubai Trade on signing a far-reaching
MoU and wish them success.”
The MoU also opens the doors to future
Aramex net profit
surpasses forecast
The company posted higher than
expected net profits of Dhs55m, up
from Dhs49.5m in the corresponding
period of 2009, representing an increase
of 11%. In the fourth quarter of 2010,
Aramex’s revenues rose to Dhs580m, up
10% compared to Dhs525m in the fourth
quarter of 2009.
“We are pleased with our solid
financial results for the fourth quarter,
which fully meets our expectations and
are in line with growth rates during the
previous quarters,” said Fadi Ghandour,
Aramex founder and CEO. “During the
period, we recorded high net income
margins, an increased operating profit
and revenue growth in key services
across all the markets we serve.”
Aramex reported a cash balance of
Dhs555m as of December 31, 2010,
maintaining its very healthy balance
sheet. This strong cash position, coupled
with an extremely low debt-to-equity
ratio, will support the company’s
35
air
cargo
update
integration of the customer database of
Emirates Sky Cargo with Dubai Trade’s
user database to enable a more seamless
supply chain experience.
Ram Menen, Emirates’ Senior Vice
President Cargo, said, “With our network
of 109 destinations in 65 countries,
Emirates SkyCargo brings thousands
of international trade connections to
Dubai every year. Our partnership with
Dubai Trade will not only provide an
easy transport link between UAE based
businesses and their existing international
customers, but it will potentially create
new trade lanes for them.”
Dubai Trade Portal (www.dubaitrade.
ae) offers a remarkably seamless business
flow and has proven to be cost effective
for clients using it as the single window
that integrates the online services of DP
World, Economic Zones World, Dubai
Customs, and Dubai Multi Commodities
Center.
strategic development plans.
2010 was a year of significant
expansion for Aramex, which
strengthened its presence in emerging
markets such as Turkey, Malaysia,
Bangladesh and Vietnam through a series
of strategic acquisitions and partnerships.
Ghandour said that the company will
continue to execute its long-term growth
strategy in 2011, focusing on expansion
opportunities in key markets in Africa
and Southeast Asia, including anticipated
acquisitions in East Africa in the first
quarter of this year.
 NEWS - MIDDLE EAST & africa
Dnata Travel Services wins global
acclaim with leading industry award
Dnata has bagged the coveted award
for ‘World’s Leading Travel Management
Company’ at the World Travel Awards 2010.
Hailed as ‘The Oscars of the Travel
Industry’ by the Wall Street Journal,
the World Travel Awards is recognised
worldwide as the ultimate travel accolade.
WTA 2010 nominations featured 5,000
companies in 1,000 categories across 162
countries. The winners were selected by
thousands of industry professionals and
Dubai opens new logistics corridor
Dubai has opened a logistics corridor linking its Jebel Ali port
and free zone with the new Al Maktoum international airport.
Salma Hareb became head of the Jebel Ali free
zone in 2005
“The corridor bridges and leverages
the strengths of Dubai’s major logistics
enablers. What makes this initiative
truly ambitious is that it aligns various
organisations, people, processes,
services, standards and systems to create
the region’s largest and finest logistics
hub,” said Salma Hareb, chairman of the
board, Dubai Logistics Corridor.
CEVA to expand into Africa and Asia
CEVA Logistics will expand into
West Africa and Central Asia thanks
to the growing energy industry’s move
into the two regions. The new offices
will be based in Angola, Congo and
Nigeria. Gianfranco Sgro, president
of CEVA’s Southern Europe, Middle
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“One of the important outcomes of the GREATER MUUTTAH
launch of the corridor is the improvement Khimji Ramdas, Freight &
in the flow of sea-to-air cargo by Shipping Division 2478 6123
eliminating the processes of exit and entry
from one zone to another. Additionally,
there will be a potential elimination of MUSCAT
Assahil Freight LLC 2469 9855
double Customs inspection. This is just
one step forward, and our plan remains Ceva Logistics LLC 2449 5417
to further integrate, ultimately resulting 2466 0770 Toll free
in the greatest possible efficiency,” added
Ms. Hareb. DHL International 8007 7008
HH Sheikh Ahmed bin Saeed Al
Maktoum, chairman of Emirates and Middle East Shipping
president of the Dubai Civil aviation & Transport Co. LLC 2479 0024
Authority, said the opening was a
milestone event and further increased MUTTRAH
Dubai’s competitiveness. Al Manjaz Trading (AMCO) 2483 5411
Dubai Airports CEO Paul Griffiths
commented: “The only thing Dubai is Yusuf Bin Ahmed Kanoo & Co. 2456 0870
guilty of is providing an environment
that actually supports aviation. Most RUWI
governments around the world treat
Al Mutahidha Freight
aviation as a pariah, choking its growth & Transport Co. 2470 5028 /2470 4858
with costly, misdirected regulation,
instead of adopting policies that recognise Comet International Freight
its considerable socio-economic benefits Services LLC 2479 4100
and support its sustainable growth.
They then compound the problem with Gulf Agency Company
(Oman) LLC 2448 1000
parasitic forms of taxation that usually
flow straight out of the sector.” Inchcape Shipping
Services (ISS Cargo) 2451 0103
East and Africa region, said: “These
WADI ADAI
investments are a great opportunity for
Swift Connection LLC 24837713 /
us.” Marcelo Franceschetti, senior vice- 2483 2512
president, global energy sector, CEVA,
added it was “a personal pleasure to see
CEVA establish a firm presence in these
markets”. For inclusion in this column
info@7dimensionsmedia.com
37
air
cargo
update
New Emirates Skycargo trade route to
boost Iraq business
Emirates SkyCargo will transport 130 tonnes of freight per week between Dubai and Basra in the belly-hold
of an Airbus A330.
Emirates SkyCargo will be adding
further momentum to the surge in
trading through Iraq with the launch
of its new service to Basra from 2nd
February.
As the country’s recovery gathers
pace following a period of sustained
investment by major global
corporations, Emirates SkyCargo
will be transporting 130 tonnes of
freight per week between Dubai
and Iraq’s largest port, strategically
located close to key oil fields.
In addition to transporting
equipment for oil and petroleum
companies in the belly-hold of an
TNT Airways to introduce Boeing 777 to
its fleet in 2011
To address the increased demand
for freight and express services, TNT
SAB Express recently announced
that its customers in Saudi Arabia
will soon be served by three new
Boeing 777-200 Long Ranger
Freighters that will be added to its
fleet in 2011. TNT has revealed
that it has signed an agreement with
Guggenheim Aviation Partners,
LLC, for the delivery and lease of
the Boeing 777-200 Long Ranger
Freighters.
The first aircraft will be in service
by July 2011, while the two other
NEWS - MIDDLE EAST & africa
Airbus A330-200, it expects to
carry a diverse range of goods from
all corners of the globe, including
perishable foodstuffs, medical
products, car parts, garments,
textiles and various electronic items
such as mobile phones.
The passenger aircraft, operating
four times a week, will also serve the
Iraqi diaspora, while goods travelling
in the other direction – to the likes of
the United States, USA, China, India
and the UK - will include petroleum
products, grains, wool and dates.
“With many multinational
companies committed to the
aircrafts will be delivered by the end
of 2011. The B777 freighter offers
a maximum payload of 107 tons
compared to the 117 tons payload
of TNT’s current fleet of B747s.
However, the B777 has superior
range capability as it carries more
payload than a 747 over distances
greater than 13,000 kilometres.
The B777 freighters will operate
on long-haul routes from Europe to
Asia. On these routes, TNT currently
operates a fleet of two B747-
400ERFs and two B747-400ERFs
on short-term lease. The new B777
38
redevelopment of Iraq’s economy
and infrastructure, the trading
potential is very clear,” said Ram
Menen, Emirates’ Divisional Senior
Vice President, Cargo. “Iraq’s
recovery is already well under way
and this new trade route will create
further opportunity for growth, with
businesses now able to establish
trade links with the UAE and the
other 65 countries on our global
network.
“The US and Europe are key
trading partners with Iraq and we
expect to capitalise on this through
our 25 European destinations and
services to Houston, San Francisco,
LA and New York.
“In addition, with speedy delivery
guaranteed to hundreds of other
points through an extensive network
of interline and overland freighting
partners, Emirates SkyCargo looks
forward to connecting Iraq to
the world and contributing to its
continued growth.”
Basra will be the first route to be
added to the Emirates network in
2011, becoming the airline’s 110th
international destination. Geneva
and Copenhagen will follow on 1st
June and 1st August respectively and
as the airline’s fleet of 152 aircraft
grows after the delivery of several
of the 200 aircraft it has on order,
further route announcements are
expected.
freighters will reduce TNT’s reliance
on commercial line-haul and external
short-term contract capacity, while
providing the capacity required to
support the company’s growth in
Asia.
 NEWS - MIDDLE EAST & africa
UAE posts 11% increase in air
traffic movements
The UAE General Civil Aviation
Authority (GCAA) has reported an
11.09% rise in the total number of air
traffic movements in the UAE in 2010
to 644457, compared to the 580118 air
traffic movements in 2009. The daily
average number of air traffic movements
in 2010 also climbed 11.13% to 1,766
per day, compared to 1,589 air traffic
movements per day in the previous
year. Dubai ranked first with 292662
Queen Alia International
Airport announces 13.7% rise in
passenger traffic
Queen Alia International Airport
(QAIA) has reported a 13.7% rise
in passenger traffic to 5.43 million
passengers in 2010, compared to 4.77
million in 2009. Aircraft movements in
Qatar deal adds capacity and
competitive pressure
Dubai has opened a logistics corridor linking its Jebel Ali port
and free zone with the new Al Maktoum international airport.
Aleppo, Syria, will be Qatar Airways’ 100th destination when it begins service on April 6.
The deal includes three cargo flights a
week from Doha to Canada. Destinations
and a service start date have not been
disclosed.
A statement on behalf of Canada’s
transport minister Chuck Stahl said, “This
agreement responds to the needs of the
Canada-Qatar travel market and is a first
but important step in developing Canada-
air traffic movements, or almost 45.4%
of total UAE air traffic movements.
Over flights stood next at 140,821,
representing 21.85% of total air traffic
movements. Abu Dhabi ranked third
with 94,796 air traffic movements, or
14.7% of total air traffic movements,
while Sharjah came fourth with 64,189
air traffic movements, representing
9.96% of total air traffic movements in
the UAE in 2010.
2010 also saw a strong growth, closing
the year at 62,900 aircraft, 8.8% higher
than the 57,800 registered in 2009,
while cargo volumes rose 11.8% to 90,
200 tonnes.
Qatar air relations.” Commenting on the
need to increase bilateral trade between
the two countries, Qatar Airways’ chief
executive Akbar Al Baker reportedly
noted: “We have Canadian companies
trying to sell us equipment. But trade
is a two-way street. We will give them
trade; in return we want to access their
markets.”
39
air
cargo
update
Oman airport see
rise in passenger
traffic
Oman Airports Management Co has
said the total passenger traffic through
Muscat International Airport increased
by 26% to 5,751,516 passengers
in 2010 compared to 4,556,502
passengers in 2009. The increase in the
passenger traffic through the airport
was attributed to factors including the
increase in the economic and tourism
activity in Oman, the expansion of
Oman Air’s destinations and fleet,
the increase in the number of flights
by Air Arabia, Air-India Express and
Shaheen Air together with the increase
in aircraft capacity and frequency by
other existing airlines and new airlines
starting flights in 2010, such as,
Flydubai and Kenya Airways.
Airbus says Middle
East remains top
market
European plane maker Airbus has
said the Middle East remains the top
market for its corporate jets, accounting
for around half of more than 170 aircraft
ordered worldwide, Gulf Daily News
has reported. “This region has always
been a growth area but it is even more
so now,” Airbus Industrie executive
and private aviation marketing director
David Velupillai said at an event in
Bahrain. The region is more discerning
as far as the size and the room of aircraft
go. “We have a customer base here and
that is poised to go up,” he said.
Emirates to
launch service to
Copenhagen
Emirates Airline has said it is set to
launch new non-stop, daily flights to
Copenhagen, Denmark on August 1.
The new destination is the carrier’s
third new route for 2011, following
Basra on February 2, and Geneva on
June 1. Emirates will be operating an
Airbus A330-200 on the Copenhagen
route in a three-class configuration.
 NEWS - MIDDLE EAST & africa
EASY FINDER
Quick Reference Guide
Freight Forwarders in India
Calogi celebrated a
AHMEDABAD
Tulsidas Khimji Pvt Ltd.
Tel: +91-79- 754 0661
Air & Sea Cargo Systems
second successful year
Tel: ‑Tel: +91-80- 212 1164
AW Travel & Logistics Services Ltd.
Tel: +91-80- 526 2190
Exel India Pvt Ltd
Tel: +91-80- 5229715
Jayem Impex Pvt Ltd.
Tel: +91-80- 349 4746

CHENNAI
Air Connections Pvt Ltd,
Tel: +91-44- 243 514 88
Airogo Travel & Cargo (Pvt) Ltd
Tel: +91-44- 253 851 64
Forbes Gokak Ltd
Tel: +91-44- 253 825 21
International Clearing & Shipping Agency
Tel: +91-44- 252 675 67
Pro Kargo (India) Pvt. Ltd.
Tel: +91-44- 223 537 11

HYDERABAD The largest air-freight portal “The key to Calogi’s success

Balmer Lawrie & Co. Ltd.
Tel: +91-40- 234 025 90
KOLKATA
DHL Danzas Lemuir Pvt Ltd.
Tel: +91-33- 224 743 26
Exel India Pvt Ltd.
Tel: +91-33- 252 190 75
MUMBAI
AFL Pvt Limited
Tel: +91-22- 226 567 61
DHL Danzas Lemuir Pvt Ltd,
Tel: +91-22- 228 444 20
Eastern Cargo Carriers (I) Pvt. Ltd.
FREIGHT FORWARDERS  & CARGO
CONSULTANTS
Email: lseth@easterncargo.co.in
Tel: 91-22-2821 4227 / 28 / 29 / 30  number more than 400, forming a
Express Kargo Forwarders P Ltd,
Tel: +91-22- 283 442 91
Forbes Gokak Ltd.
Tel: +91-22- 220 080 81
Jeena & Company
Tel: +91-22- 220 420 32
New Globe Air Services Ltd.
Tel: +91-22- 226 62474
Skylark Travels Pvt Ltd.
Tel: +91-22- 221 842 37
Trade Wings Limited
Tel: +91-22- 285 925 99
Tulsidas Khimji Pvt. Ltd.
Tel: +91-22- 563 34 161
NEW DELHI
Bax Global India
Tel: +91-11- 678 5033
Continental Carriers Ltd.
Tel: +91-11- 233 222 29
Emery Worldwide (India) P.L..
Tel: +91-11- 556 9262
Indair Carriers Pvt. Ltd.
Tel: +91-11- 267 856 82
Skyways Air Services Pvt Ltd.
Tel: +91-11- 267 844 81-6
Skymates (India) Pvt Ltd.
Tel: +91-11- 261 041 61
TRIVANDRUM
Pro Kargo (India) Pvt Ltd
Tel: +91 - 471- 250 2945
For inclusion in this column
Email: info@7dimensionsmedia.com
solution in the Middle East, Calogi,
recently celebrated two successful
years of providing cutting-edge, cost
reducing, eco-friendly solutions to
the air cargo supply chain community.
The first of its kind in the air
cargo community worldwide, Calogi
was launched in 2008, and over the
past two years, has achieved many
significant milestones. During this
short period, Calogi has experienced
phenomenal growth - the companies
subscribing to the portal currently
user base in excess of 1,195 who
have together conducted more than
two million successful transactions
to date. The overall number of
users, transactions and customers is
expected to double year-on-year.
The overwhelming impact of the
state-of-the-art innovations and
services that Calogi has introduced,
has not only significantly improved
the efficiencies of the air cargo
industry, but has also changed the
way in which the community at
large conducts air cargo business. Its
pioneering paperless cargo systems
and ‘green’ operation can potentially
eliminate the need for over 3.5
million air waybill copies that
accompany export shipments every
year from Dubai alone. In Calogi’s
digital world, where the export
forwarder no longer has to distribute
paper copies of the air waybill to
his trading partners, significant
productivity gains are also expected.
Calogi’s on-line archiving and
retrieval system also removes the
need for printing a paper copy of the
air waybill for filing purposes.
is its immediate benefit to the air
cargo industry; we provide solutions
that are not only innovative and
lead to significant cost savings for
our customers, but also provide a
‘greener’ way of working,” said
Patrick Murray, Head of Calogi. “By
enabling the air cargo supply chain
to do business electronically, Calogi
has united the local community,
enabling each partner to exchange
digital information to form the basis
of a cost effective e-freight compliant
solution.”
To date, Calogi is processing
over 70 per cent of the Dnata CTO
shipments electronically. Enabling
the industry to remove the paper
air waybill and accompanying
documents from all shipments
processed via the Dnata terminals
will result in cost savings to the
industry. IATA estimates these costs
at around US$4.9 billion annually,
once e-freight is implemented across
the globe.
Since its launch, Calogi has been
at the forefront of many innovations
including its IATA electronic air
waybill (e-AWB) solution. Other
successes include the comprehensive
credit management engine, which
allows Calogi to act as a clearing
house between buyers and sellers of
services and the ad-hoc air waybill
release feature, which allows more
than 90 airlines represented on the
portal to do business with over 300
forwarder companies. These and
the many other ground-breaking
developments, culminated in Calogi
winning the prestigious top twenty
CIO award in November 2009.

40
air
cargo NEWS - MIDDLE EAST & africa
update
Dubai Customs signs B2G agreement with TNT
Indian low-cost
airline Indigo to
serve the Gulf
Indian low-cost airline, Indigo is
set to launch services to Dubai and
other cities across the Gulf region,
Wam has reported. Last week, Indigo
announced a record buy of 180 Airbus
A320 aircraft for about $16bn, saying
that the air travel potential in the region
was huge and travel between India and
the Gulf as well as South East Asia was
likely to rise.
ADAT inks
MRO deal with
International
Aero Engines
Abu Dhabi Aircraft Technologies
(ADAT) has signed a general terms of
agreement with the International Aero
Engines AG (IAE) under which IAE
will support ADAT in becoming an
IAE approved maintenance, repair and
operations shop capable of performing
overhaul of the V2500 aviation
engine series. The new capability will
exclusively support the overhaul and
repair requirements of Etihad Airways’
fleet of V2500 powered A320 aircraft,
ADAT said.
Unrest in Egypt
disrupts air travel
Mounting unrest in Egypt disrupted
air travel to and from Cairo and other
major Egyptian cities on Saturday as
carriers canceled or delayed flights.
Delta Airlines announced that it was
indefinitely suspending its flights from
the US to Cairo ‘as a result of civil
unrest’. British Airways said it had
Oman Air to take delivery of
Airbus, Embraer aircraft
Oman Air has announced it will take
delivery of the last A330-200 Airbus
aircraft on order, as well as the first
two Embraer 175 aircraft, within a few
months. In November 2009, the airline
42
Dubai Customs has signed a
memorandum of understanding with TNT
Express to use a Business to Government
(B2G) channel to process customs
declarations.TNT, a global logistics and
transportation solutions provider, will
be able to process the declarations and
complete transactions through the B2G
channel, once it has linked its internal IT
systems with Custom’s Mirsal 2 system.
Ahmed Mahboob Musabih, executive
director of the Dubai Customs Client
Management Division signed the MOU
alongside Iyad Moussa, TNT operations
director UAE.
Musabih said that the implementation
of the B2G system will cut processing
times and costs as well as preserve
confidentiality.
revised its flight schedule to land well
ahead of the start of the 4 p.m. to 8 a.m.
curfew imposed by the government in
response to widening unrest. Dutch-
based KLM, Italy’s Alitalia, EgyptAir
and Emirates said they would continue
to fly to Egypt but on schedules adjusted
to accommodate the curfew.
signed a contract with Embraer to buy
five Embraer 175 aircraft from the E-Jets
family at the Dubai airshow. The new jets
are part of ongoing plans by the carrier to
expand its destination network and fleet.
 NEWS - MIDDLE EAST & africa
Flydubai to launch service to Dhaka
Flydubai has announced that it will
add to its growing network of service
to Bangladesh. Dhaka will become the
airline’s 32nd destination when flights
Safi Airways poised for relaunch
A Safi Airways aircraft. The airline stopped Kabul- Frankfurt services after a EU ban on
Afghan-registered carriers.
After suspending its Frankfurt-
Kabul route on January 10 following
an EU ban, Dubai-based Safi Airways
undergone a change in management.
air
cargo
update
A flydubai aircraft
to the Bangladeshi capital begin on I am very pleased that the addition of
Monday, February 14. Ghaith Al Ghaith, Dhaka to our route network is our first
CEO, Flydubai, said, “2010 was a hugely announcement of 2011 - a year that is set
eventful and significant year for Flydubai. to be even busier than 2010.”
Roijen from the Netherlands as Chief
Financial Officer, and Jordanian
Mohammad Al Hayek as Deputy Chief
Operating Officer.
The EU ban preventing the entry
of Afghan registered aircraft into its
airspace was “particularly frustrating
for Safi Airways because the ban has
been evoked as a result of the Afghan
Ministry of Transport and Civil
Aviation,” the company said.
“It is totally outside the control
of the airline, which is fully ICAO
compliant and widely regarded as the
best airline in Afghanistan,” it said in
an earlier statement.
New COO McTighe added, “The
EU’s ban on Afghan airlines flying to
Europe has required that we effectively
need to relaunch the airline.
“We face a couple of months of
Led by Executive Director Hamid turbulence before we emerge into clear
Safi, the new appointments include air but we are very confident that our new
Michael McTighe from the UK strategic plan will soon bear fruit. Safi
as Chief Operating Officer, John Airways has a great future ahead.”
43
air
cargo NEWS - MIDDLE EAST & africa
update
Abu Dhabi’s Maximus Air Cargo
expands fleet size
Maximus Air Cargo, has decided
to add three additional Airbus A300-
600 regional freighters - each offering
48 tonnes of payload capacity -
purchased from Japan Airlines (JAL)
and representing a total investment of
Dhs350m - including conversion, will be
introduced to the fleet in July, September
Saudia Cargo adds Amsterdam
and Nairobi to network
Saudi Airlines Cargo Company
adds Amsterdam and Nairobi as new
destinations to its expanding freighter
network.
After a long absence Saudi Cargo
returns to Kenya with three weekly
MD-11 freighter flights to carry flowers
from Nairobi to Schiphol Airport.
Starting in Jeddah the flights will carry
cargo to Nairobi from Saudi Arabia and
Saudi cargo’s extensive network in the
Far East, Indian sub-continent and the
Middle East.
Flydubai adds new route to Saudi Arabia
Flydubai has announced its
inaugural flight to the carrier’s third
destination in Saudi Arabia. Flights
Air Arabia expands route network
Air Arabia, the largest low cost airline
in the region forecast on Monday an
annual average passenger traffic growth
of 14-15 per cent over the next four years
and said it would increase the number of
routes from 67 to 75 by the end of 2011.
Adel Ali, chief executive of Air
Arabia, said the airline would launch a
new hub in Jordan in June. At present the
Sharjah-based carrier has overseas bases
in Morocco and Egypt.
and November this year.
The introduction of these aircraft, which
brings the total number of aircraft operated
by the company to eleven are currently
undergoing conversion from passenger
to cargo configuration by EADS EWS,
a global centre of excellence for Airbus
passenger-to-freighter conversions.
The new service from Schiphol will
be in addition to the 15 weekly freighter
flights that the carrier operates from its
main hub in Brussels.
Fahad Hammad, chief operating officer,
said: “As part of our long term strategic
plan Saudi Cargo is investing heavily in
its main hubs in Jeddah and Riyadh to
bring the service levels up to world class
standards. We are expanding the network
by adding more destinations and growing
the freighter fleet to build a comprehensive
international network for our clients.”
from Dubai to the city of Gassim
operate on Tuesdays, Thursdays and
Saturdays.
Air Arabia, which took to the sky in
2003, has 40 A320 aircraft on order from
Airbus to drive its expansion plans, with
four aircraft delivered in 2010. A further
six are scheduled for delivery this year.
Its current fleet strength is 23 planes.
Ali said Arab air traffic grew by 12
percent in 2010 with passenger numbers
reaching around 228 million, while
carriers’ fleets also expanded by 12
percent to 856 aircraft.
Etihad reports
revenue
growth ahead
of capacity
Etihad Airways reported a 29.2%
rise in revenues in 2010 to $2,951m
(2009: $2,285m), significantly
outpacing its capacity growth, which
saw available seat kilometres (ASKs)
rise 19.5% to 45.1bn (2009: 37.8bn).
The result marked continued
progress towards the airline’s goal 44 of
break-even in 2011 and profitability
in 2012.
Passenger numbers topped seven
million for the first time, up 13.1
per cent to 7.099 million, while seat
factors increased by 0.5% points, to
74.0%.
Revenue passenger kilometres
(RPKs) rose 20.1% from 27.8bn to
33.4bn.
The airline confirmed that, as
previously forecast, it had reported a
positive EBITDAR (earnings before
interest, taxation, depreciation,
amortisation and rentals) for the full
year, the first time it had achieved this
since it was formed in 2003.
The airline’s cargo division
performed particularly strongly in
2010, with revenues up 57.4% over
2009. This was bolstered by the
airline’s developing route network
as well as investment in dedicated
freighters.
Etihad took delivery of two Airbus
A330-200 freighters during the year,
which joined its existing fleet of four
cargo-only aircraft.
Etihad launched services to
Alexandria, Baghdad, Colombo, Erbil,
Nagoya, Seoul and Tokyo in 2010, as
well as opening new premium lounges
in Dublin and Manchester.
air
cargo NEWS - SOUTH ASIA
update

Currency Chart
Country Report - India 1US$ - United States Dollar
Conversion to Major AFRICA Currencies

ALGERIA Dinars
1 USD = 73.0300 DZD

EGYPT Pounds
1 USD = 5.66000 EGP

ETHIOPIA Birr
1 USD = 13.4000 ETB

GHANA Cedis
1 USD = 1.42000 GHS

KENYA Shillings
1 USD = 79.7000 KES

NAMIBIA Dollars
1 USD = 7.62455 NAD

NIGERIA Nairas
1 USD = 151.500 NGN

Lack of infrastructure continues to be a Integrated approach SOUTH AFRICA Rand

roadblock for the Indian air cargo market,
slated by industry estimates to touch Rs
13,300 crore by 2011-12, a growth of 20
per cent.
Earlier last year, Air India had
announced its decision to hive off its cargo
business into a separate entity.
Kingfisher Airlines launched Kingfisher
Xpress – a door-to-door cargo delivery
service.
There were also reports of Jet Airways
being in talks with a foreign logistics
company to float a dedicated cargo
service.
Yet, the sector struggles for proper
cargo warehousing facilities and multi-
modal links for local distribution.
Passenger airlines in the country, till
recently, did not look at the cargo business
seriously. The cargo division contributes
only 5-10 per cent of their revenues.
According to Ms Anita Khurana, Director,
Air India’s air cargo division, the country
has only about 20 freighters.
Most cargoes are transported through
the belly of aircraft.
However, companies are now focusing
more on this space, according to industry
experts, as they are realising it has a good
margin business.
“Though the passenger traffic has started
picking up and the yields are improving,
the reality still remains that Indian airline
companies are sitting on huge losses.
“They need additional means to boost
their revenues and that is the reason they
are now looking at ground handling,
cargo and maintenance,” said Mr Sushi
Shyamal, Partner, Transaction Advisory
Services, Ernst and Young (E&Y).
On the recent cargo-related
announcements by airline companies, he
said these are very “peripheral changes”.
What India needs is “an integrated
logistics approach that covers the first
mile and last mile connectivity.”
In terms of capacity, experts say there is
enough in the country.
There is sufficient aircraft belly
capacity which if utilised efficiently can
make good business opportunity for the
airlines, said Mr Chethan Kambhi, Frost
and Sullivan’s Senior Research Analyst,
Aerospace and Defence.
Gestation period
“The Indian air cargo industry is still in
a gestation period. Entrants like Deccan
360 or players like Kingfisher are still
trying to understand the real dynamics of
the business,” said Mr Kambhi, adding it
will take at least three to four years before
it starts picking up.
Other Steps
Other efforts to develop air cargo
market in India include the increase of
foreign direct investment in cargo and
non-scheduled airlines to 74 per cent.
Plans are also on for developing
Nagpur as a cargo hub through large-scale
investments into MIHAN (Multimodal
International Hub Airport) project.
According to E&Y, investments of
more than Rs 900 crore have been planned
for development and upgrade of cargo
terminal facilities at the Mumbai and
Delhi international airports.
Similar investments would be required
for the facilities at Chennai, Kolkata,
Hyderabad, Bangalore and other airports,
the consultant said.
1 USD = 7.62455 ZAR
SUDAN Pounds
1 USD = 2.23100 SDG
TANZANIA Shillings
1 USD = 1,356.00 TZS
UGANDA Shillings
1 USD = 2,265.91UGX
ZIMBABWE Dollars
1 USD = 361.900 ZWD
Chennai
International’s
cargo operations
to go private
Chennai International Airport’s cargo
operations are to go to a private company
– Bhadra International – in a move that
many are calling a “scam”.
“We suspect a huge scam behind
this move, which is happening when a
major modernisation project at Chennai
air cargo, at a cost of US$32 million, is
nearing completion,” said an executive at
the airport unhappy with the decision.
“We have in fact achieved a 15 per cent
growth in import and 35 per cent growth
in export of cargo consignments in the last
10 months.”
He said it was highly suspicious that
the former commercial executive director
of Airports Authority of India (AAI), R
Narayanan, who approved the contract,
also happens to have become a vice-
president of Bhadra after his retirement.
Another executive, S Basu, said:
“Higher officials...are literally selling out
AAI for their personal benefits and better
prospects after retirement.”

46
 NEWS - SOUTH ASIA
ASSOCIATIONS

Information India Celebrates

100 Years of Aviation
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Associations Middle East
• NAFL (Dubai)-National Association of
Freight Logistics
• SCLG - Supply Chain Logistics Group
• International Transport Co. Association of
Iran
Associations Indian Sub Continent
• ACAAI - Air Cargo Agents Association of
India
• Air Cargo Club of Delhi
• Federation of Freight Forwarders
Association in India
• Freight Forwarders Association of Nepal
• ACAAP -Air Cargo Agents Association of
Pakistan
• Pakistan International Freight Forwarders
Council
• Association of Cargo Agents of Bangladesh
• SLFFA- Sri Lankan Freight Forwarders
Association
• FAPAA - Federation of Asia Pacific Air
Cargo Agents
Although the weather is
uncharacteristically cold now in New
Delhi, plans are heating up to celebrate
a century of aviation, as Indian Civil
Aviation will complete its first 100 years
on February 18, 2011.
The year 2011-12 has now been declared
as the India Civil Aviation Centenary Year.
The story of February 18, 1911 is one
of high adventure and aviation pioneering
that set a global record, an air cargo first.
Despite some claims to the contrary,
the first airplane (heavier than air) in the
world to carry a payload other than a
passenger (express cargo) moved above
India, not Ohio, USA.
As the story goes, a Wright-built
airplane piloted by Philip O. Parmelee
carried a bolt of silk cloth from Dayton to
Columbus, Ohio on November 7, 1911.
The fact is that Henri Pequet, a 23-year
old French pilot (he lived until 1974),
carried more than 6,000 letters between
Allahabad.
The point here is that we need to get this
history correct, because in 2011 all kinds
of claims will come forward as companies
and nations ramp up stories of their first
flights and the role they played during
this important Centennial Year in global
aviation.
In early December 1910, the SS
Persia arrived in Bombay with big cases
containing plane parts.

Associations Africa
• SAAFF- South African Association of
China Cargo Airlines Aims
Freight Forwarders
• SAICA -South Africa International Courier For Global Player Status
Association
• KIFWA- Kenya International Freight & Shanghai-based China Cargo Airlines
Warehousing Association is on its way to becoming a major
• Kenya Clearing Forwarding & global player. The road for reaching
Warehousing Association new heights was paved by a changed
• Egyptian Int’l Freight Forwarders ownership structure that enabled the
Association carrier to swallow the local competitors,
Great Wall Airlines and Shanghai Cargo
• Namibia Association of Freight Forwarders
Airlines, thus consolidating the market
and upping its influence substantially.
Associations International The new partners that bought into
• TIACA - The International Air cargo the carrier financed the costly double now signed in Shanghai, the stakeholders
Association acquisition with €236 million euros. seek approval by the authorities for
• CCA- Cool Chain Association Singapore Air and Concord Pacific, both China Cargo Airlines to be reorganized
affiliates of Taiwanese EVA Air, each into a limited liability Chinese-foreign
Name acquired 16 percent of China Cargo equity joint venture firm.
Designation Airlines. Currently, China Cargo Airlines
Organisation Now the new shareholder structure possesses a mixed fleet of 13 freighters
Primary Business Activity reads as follows: China Eastern Airlines, comprised of five MD-11Fs, three
51 percent; China Ocean Shipping B777Fs, three A300Fs, and two B747-
Company (COSCO), 17 percent; 400Fs. The air freight carrier is serving
Address Singapore Air, 16 percent; and Concord 26 different destinations in Asia, Europe,
Tel Pacific, 16 percent. Formerly, parent North America, and domestic China.
China Eastern Airlines held 70 percent According to aviation analysts
Fax
with COSCO owning the remaining 30 China Cargo Airlines is on the brink of
Email
percent. becoming a major national rival of the
Following the investment agreement newly formed Air China Cargo.
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air
cargo
update
Etihad Crystal Cargo selects CHAMP as its
Advance Cargo Information filing partner
Etihad Crystal Cargo, the cargo division
of Etihad Airways, today announced it
has appointed CHAMP Cargosystems
(CHAMP) as its global electronic
Advance Cargo Information (ACI) filing
partner.
CHAMP will supply Etihad Crystal
Cargo with its Global Customs Gateway
(GCG), to ensure the business meets all
necessary requirements for electronic
pre-arrival cargo screening information in
markets around the world, commencing
with the European Union Import Control
System (EU ICS) from January 2011.
FedEx Introduces Worldwide Technology
Enhancements for Critical Inventory Logistics Service
FedEx Critical Inventory Logistics
customers worldwide can now track
the status of orders, shipments and
inventory levels by simply logging
into a web application on fedex.com.
For added flexibility, order placement
and status messaging are also available
through electronic data interchange
(EDI) and delivered in a common global
message format.
These enhanced capabilities were
developed by FedEx using a flexible IT
framework designed to enable ongoing
global enhancements that will meet
changing customer needs. FedEx Critical
Inventory Logistics customers around
the globe can now track their inventory
levels, order and shipment status in real
time—no matter where the order was
placed or where it will be delivered.
FedEx SupplyChain has also deployed
a common warehouse management
system, enabling more consistency in
capabilities and experience around the
world.
“Our proven FedEx Critical Inventory
Logistics technology has been delivering
significant value to customers for the past
five years,” said Craig Simon, president
and CEO of FedEx SupplyChain.
“These latest global enhancements will
provide our customers with even more
efficient, simplified controls over their
mission-critical inventory. Our solution
does not require customers to navigate
multiple systems or applications
like many other global supply chain
management options available today.
NEWS - TECHNOLOGY
Roy Kinnear, Etihad Crystal Cargo’s
Senior Vice President, Cargo said, “There
is an increasing focus on global compliance
relating to ACI and as security regulations
are tightened, we are fully complying
with governments worldwide. Following
our long and successful partnership with
CHAMP, the company will now assist us
meet the January 1 deadline for EU ICS
and pave the way to meet other existing
and future ACI requirements.”
Etihad’s cargo business has been a
customer of CHAMP for over five years
and currently uses its cargo operating
It is truly a single, global access point
that can take the complexity and worry
out of the process of managing global
logistics. This enhanced IT platform,
coupled with our reliable execution, is
an unbeatable combination.”
Leveraging the Power of the
FedEx Portfolio of Companies
Offered by FedEx SupplyChain
since 2006, FedEx Critical Inventory
Logistics allows customers to centrally
locate their most important inventory
at stocking facilities throughout the
world, including 24-hour locations.
Many of these stocking facilities are
located near hospitals, business centers
and other strategic locations—enabling
customers’ field representatives to
pick up critical parts or devices on a
moment’s notice or ship them using
one of the many FedEx transportation
options available. The use of regional
and forward stocking locations for
this service also allows customers to
keep supplies accessible to support an
increasingly mobile workforce.
FedEx Critical Inventory Logistics
utilizes the services of FedEx Express,
the world’s largest express transportation
company; FedEx Office, which provides
forward stocking locations in select
cities across the U.S.; FedEx Trade
Networks, which simplifies international
shipping by providing flexible end-to-
end customs brokerage, global cargo
distribution and trade facilitation
solutions; FedEx Ground, which offers
100 percent coverage of every business
50
system, CRISTAL. The GCG provided by
CHAMP will offer a seamless interface
across both platforms for ACI.
James Fernandez, CHAMP
Cargosystem’s Vice President Sales and
Marketing, said, “We are delighted that
Etihad Crystal Cargo has chosen CHAMP
as its Global Partner for ACI filing. As
governments worldwide tighten controls
and demand advance notice of import
and export freight transiting their borders,
Etihad Crystal Cargo will benefit greatly
from GCG being a one-stop-shop for
multiple customs agencies.”
addresses in the U.S.; FedEx Freight, the
leading U.S. provider of next-day and
second-day regional, LTL (less-than-
truckload) freight services; and FedEx
Custom Critical, which provides the
fastest door-to-door service available,
with same-day delivery and next-day
delivery of urgent freight, valuable
items and hazardous goods, 24 hours a
day, seven days a week.
Just-in-Time Critical &
Just-in-Case Inventory
Management
FedEx SupplyChain personnel work
with customers to first determine how
to best position their critical inventories
throughout the FedEx distribution
network and then develop plans to
optimize their overall supply chain.
Once the inventory is in place, orders are
fulfilled by identifying the best sourcing
locations and transportation option that
meets the required delivery time, cost or
service level desired by the customer.
Other customer benefits of FedEx
Critical Inventory Logistics include:
• A dedicated web application on
fedex.com, allowing customers to
place orders, manage inventory and
obtain order and shipment status in
real time around the clock.
• Full customer support and single
point of contact through dedicated
FedEx Critical Inventory Logistics
customer centers.
• Same-day fulfillment and extended
order times from central stocking
locations.
Approved by:
Ministry of Environment and Water
Department of Plant Protection and Quarantine

Trading & Services Co. (L.L.C)