Shawn McWhorter, the Chicago O’Hare-based President of Nippon Cargo Airlines (NCA) North America has some big responsibilities.
     Shawn addresses The JFK Cargo Association (ACA) Monthly Luncheon on Thursday, May 23, 2013. It begins with cocktails at 11:45 AM and continues with lunch until 2:00 PM at the New York Hilton JFK Airport Hotel (all are welcome: members, $40.00; non members, $50.00).
     Mr. McWhorter will keynote “Managing Volatility in the Air Freight Industry,” and undoubtedly touch on his ongoing concern that industry people should know how big an air cargo factor NCA is in America, where the all-cargo carrier is top (non-integrator) in tonnage for international operations at Chicago’s O’Hare International Airport.
     Today, NCA has offices in New York, Chicago, Atlanta, San Francisco, and Los Angeles plus a flight operations office at Anchorage, and Hermes as GSA for its services in Mexico and GSA Platinum Air Cargo in Texas.
     “We operate line flights between Japan and San Francisco, Los Angeles, Chicago, and New York.
     “But we are also quite interested in connecting between Latin America (Mexico) and our Los Angeles all-cargo services.
     “Security is top priority, but understanding our customer’s requirements is also a constant at NCA as we continue to increase our flexibility to deliver.
     “That is what NCA is all about.”
     Be sure and ask for beloved host Willie Mercado, president of JFK ACA. He will make sure you are taken care of good and proper.
More Click here.
Geoffrey/Sabiha

     Somehow, Hiran Perera has kept his youthful good looks and easygoing manner, even managing to appear amused and not overwhelmed at the increased attention he has received lately as Emirates SkyCargo Vice President Cargo, Freighters.
     Maybe it’s the experience gained after nearly 19 years aboard Emirates SkyCargo.
     Or perhaps it’s something in the water at home in his native Sri Lanka.
     Whatever it is, as a key executive who has been with Emirates SkyCargo since it began its meteoric rise into the top 20 of world air cargo carriers (EK is now ranked in the top three), Hiran combines textbook knowledge and on-the-job experience with an even-handed, soft spoken style—no matter what whirlwind is sweeping through air cargo at the moment.
     Emirates SkyCargo's fleet includes nine freighters, two 747-400ERF, and eight 777Fs that now serve 132 destinations in 77 countries on six continents.
     In the 2010-11 financial year, Emirates SkyCargo carried 1.8 million tons of cargo, an improvement of 11.8 percent over the year's previous 1.7 million tons.
     Cargo revenue, at AED 8.8 billion (US$ 2.4 billion), including mail and courier, contributed 17.4 percent of the airline's total transport revenue.
     In December 2012 Emirates SkyCargo took delivery of its seventh Boeing 777F. Scheduled freighters now operate to 43 destinations.
     Over the next few years, the airline will welcome 200 aircraft to its fleet, including six Boeing 777Fs and 65 Boeing 777-300ERs.


     But when it comes to operating freighters, it is all good to Hiran.
     "Freighter operations growing the business of SkyCargo globally are a valued and increasingly important part of our cargo operation.
     “Everyone here from top to bottom is a team player, determined to get the job done.
     “The most important thing right now is the high cost of fuel and what it may do to the overall economy and the resultant impact it will have on airfreight.
     “While one cannot do much about the fuel prices, I believe trying to understand the impact is important to formalize short- and medium-term strategies to get through the road bumps (or air pockets).
     “Of course, one must not lose sight of long-term objectives either.
     “But in the meantime, we remain quite busy utilizing our entire fleet to our global destinations.
     “Full utilization did note a bit of a slowdown in regular traffic during Chinese New Year, as to be expected, but the action was picked up with some added charter work during that period.
     “But currently all ten freighter aircraft are fully deployed.
     “We added a B777F on March 28, returning an Atlas B747-400F.
     “We had thought to keep that lift but due to current market conditions have adjusted our capacity downward in the near term.
     “B777 is a great airplane and quite flexible.
     “It allows us to operate profitably on both short or long sectors and can easily combine markets as well.
     “Some time ago we operated A310Fs, but oil prices drove that aircraft out from our fleet.
     “Today people ask us: ‘don’t you need a small capacity aircraft?’
     “What I say is that you can easily combine two small markets and service both with a B777F and have better cost efficiencies than operating a sub-fleet.”


     Currently Emirates operates all its passenger and freighter schedules from DXB, although Hiran indicated the “eventually some time next year we will migrate our freighter operations to the new airport DWC.”
     As to the challenge of operating the cargo business at two gateways, Hiran says simply:
     “We have always been up to managing and benefitting from change, and all of us remain confident we can make DWC not only work, but at the end of the day be instrumental in developing SkyCargo further.
     “We carry about 30 percent of total cargo volume aboard our freighters.
     But there is a certain interconnectivity between the freighters and the passenger flights belly lift.
“Even though we will move all-cargo to DWC, we will operate trucks that will be given high-speed access here at DXB to connect with our belly fleet.
     “In any case, today our freighters are parked on the north side of DXB and to connect cargo across this busy airport can take as much if not more time than moving between DXB and DWC.
     “It is all about how we choreograph our airplanes and truck movements,” Hiran said.

     We asked Hiran about the A380 and its role in air cargo—would it ever be a freight-carrying airplane?
     “It remains to be seen whether the Airbus can offer service as a freighter, because that variant was scrapped. Now in 2011 things have changed; the A380 cargo offering will have to be completely different, because today the B777 does the job.
     “We have 31 A380s in the fleet with 59 on order, and it’s a great airplane.
     “The cargo capability of the airplane is much better than we expected it to be.
     “We did a lot at the time with Airbus in order to optimize the underbelly cargo capacity, and that’s paid off.
     “We had to push them to make some design changes; for example, we specified the ability to carry pallets in what we call the tunnel area, the area in between the gear.
     “The original specs only allowed for containers, and that volume is very beneficial when you have a full passenger load; when these are operating on roads like Heathrow, Paris, or Incheon, that freight capability is important.
     “With that volume, we are now able to achieve 13-15 tons and have even gone up to 18 tons depending on the density of the freight.”
     In terms of the evolutionary cycle of developing more capacity as new airplanes come online, Hiran Perera admits that he was involved in the early stages of the A380 development.
     “Ram (Menen) and I worked quite a bit in order to get that belly capacity. “We are happy to see that it’s actually benefitting us.
     “As we go along, we’ll do that with new aircraft that come in as well, working with manufacturers to ensure that belly capacity.
     “For an airline like us, the freight in the belly is extremely important—you cannot understate the importance of it.”


     Looking ahead Hiran pointed out everyone would be happier if the market were better:
     “That is no secret,” Hiran said.
     While the carrier continues to expand itself in some respects out of a downturn, posting continuously positive figures “having opened up several new markets,” Emirates most recently is adhering to continuing its program of “creating new opportunities with our services that in most cases discover and open up new business links.”
     “For example, before we opened up Brazil non-stops from Dubai, you would be hard pressed to find goods from South America in the Middle East.
     “Now our part of the world has a constant stream of goods from Brazil and also has expanded that traffic to include perishables from Chile.
     “One of our newer destinations, Algiers has brought many interesting commodities to this part of the world, including truffles.
     “So we see our services opening more than just city pair connections; in fact, we are an engine for developing new markets and trade possibilities, including the expansion beyond Dubai via our vast network worldwide.

     “What is unique about the Emirates organization is that it is a team, and we have a great team with great leadership, and that has set us apart from everyone else.
     “I don’t think you can replicate what we do here.
     “It’s the coming together of these different individuals as a team, and it has evolved over the last 25 years into something that is extremely special.
     “We are all saddened that Ram Menen will depart our leadership. He has been great and is a genuine pioneer not only for Dubai and the Middle East, but also for the global industry.
     “There is no doubt that leadership will move from strength to strength here at SkyCargo.
     “So the farewell is fond, but at the same time we look forward to the next chapter here as we continue to grow and build our brand.
     “I want to address an aspect of our business that may get less attention—air charters.
     “As mentioned earlier our charter business has been growing in importance.
     “Emirates developed the charter business over the years. It doesn’t run separately; it runs within the freighter unit.
     “We’ve found that it has proven to be absolutely invaluable to do that—it brings in a different stream and you can manage the cyclical nature of our business and take advantage of it.
     “Our unique global position helps as well, as we can take advantage of opportunities around us,” Hiran Perera said.
Geoffrey/Flossie

he pace of interest and investment potential gets yet another player, as one more well-heeled and determined Gulf State has decided to ambitiously drive itself into further development of world trade.
The Sultinate of Oman is at work creating multi-modal infrastructure whilst seeking investment in building greater inter-connectivity between rail, ship, and air.
For example, a new Muscat International Airport (under construction for completion in 2014) will add capacity and 21st century technologies to handle 12 million passengers and a cargo terminal throughput of 260,000 tons annually.
    Oman Airports Management Company (OAMC), at work in Muscat, is also expanding Salalah Airport, the main gateway to the Dhofar region in the south, enabling the airport to handle one million passengers and 100,000 tons of cargo annually.
    Construction is also underway at four new green field regional airports in Sohar, Adam, Ad Duqm, and Ras Al Hadd.
    Once these airports open for business (now slated for 2014), Oman will take a big step in further developing itself into a gateway, following a pattern well established by others in the region.
    As the airport in Sohar is building, developers of FreeZone Sohar, the largest free trade zone in Oman and one of the Gulf Cooperation Council’s (GCC) modern Free Trade Zones adjoining the port of Sohar, are leaving no stone unturned to ensure that the ambitious project is completed as quickly as possible.
    Located around 230 km northwest of Muscat, Sohar is the Sultanate’s third largest city and an emerging economic center. While the port of Sohar, a deep-water industrial seaport in operation since 2004, is a key component of Sohar’s expanding economy, the nearby Freezone Sohar is becoming increasingly vital as well.     Managed by the Sohar Industrial Port Company (SIPC)—which also operates the Port of Sohar—and owned by the Sohar International Development Company, a joint venture between the Port of Rotterdam in the Netherlands, India-based SKIL Infrastructure, and the Omani government, the FZS covers an area of 4,500 hectares.
    “Indeed, you could say we are the new kid around the block, but we are determined, serious developers,” stressed the Chief Operating Officer of Free Zone Sohar, Neelima Vyas.
    The FZS is quasi-government, which owns 50 percent, with the remaining 50 percent owned by the Netherlands government, represented by the Port of Rotterdam.


    In Mumbai recently to attract investors and ramp up trade interest in Oman, Neelima Vyas elaborated on the Sohar destination, saying:
    “India has emerged as a global economic superpower and Indian companies are increasingly looking to supply their products to all possible geographies.
    “Sohar, with its strategic location in the Upper Gulf just outside the Straits of Hormuz, overlooking the western part of the Indian Subcontinent, offers immediate access to the world’s major shipping lanes, helps avoid increased insurance premiums, and is an ideally located transshipment hub between the east and the west.
    “Coupled with the most modern warehousing and logistics handling facilities, with renowned globalcargo handlers Steinweg for general cargo, Odfjell/Oiltanking for liquid cargo, and Hutchison Whampoa OICT for containers, Sohar serves as an excellent base to distribute products to a customer base of nearly two billion consumers.”
    Commenting on the proposed airport, the COO said:
    “Air connectivity (with Sohar), is already in place via roadway infrastructure.
    “The airport under construction will be operational next year—Q4—and yes, it will be multi-modal.”
    As for the airport, Vyas said that the “infrastructure will compete for passengers as well as for trade.
    “We believe that because there is so much industrial base in that area, it will have a lot of cargo-related airport movement—especially when you look at ad valorem cargo.”
    But she was quick to point out:
    “We think that the passenger business will have more impact in the initial phase, including regional air travel.
    “I would say give it five or ten years before one can look at a Dubai hub concept here,” she emphasized.
    “FZS is being developed as a hub for Middle East, North Africa, and, of course, the Asian subcontinent as well.”
    She pointed out “we are also looking at railway development here.”
    “The GCC has not had great connectivity until today.
    “The plan for rail will be developed in two phases.
    “One rail line will connect all the GCC countries and eventually another will connect the different places in Oman with complete north-south rail connectivity.
    “The port area has three major industrial clusters already operational and we have 40 million tons per annum already moving out.
    “We have investments from practically all over the world.
    “You could say, it is like a mini United Nations, with a highly skilled and cost competitive labor force, freedom to hire people from anywhere, and years of incentives, including 100 percent foreign ownership and free repatriation of capital and profits.
    “There is also an offer for a corporate tax holiday for 10 years, with the possibility of extension and relaxation in the level of ‘Omanisation’ as means to attract big ticket investments.”
Geoffrey Arend/Flossie

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