Vol. 10 No. 63                       THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001                Friday July 1, 2011



     Surrounded by jungle and located in one of the least accessible highland regions in the world, a new airport is being built that will be able to handle aircraft up to and including Antonov 124 freighters. Its construction is a testament to the huge global surge in demand for energy.
     From new mining projects in the Asia Pacific, to oil exploration and new plant builds in Africa, the Middle East and South America, the energy sector is an increasingly lucrative niche for many carriers as shippers expedite cargo to help in the construction of new infrastructure or to service existing plants.
     The new airport in question is located in Komo in the tribal Highlands of Papua, New Guinea. A joint venture between McConnell Dowell and Consolidated Contractors is building the air facilities, linked bridges and rail track, which are scheduled for completion in 2012.
     The key reason for its construction is the Exxon Mobil-led PNG LNG $19 billion project. The integrated LNG development includes gas production, liquefaction, processing and storage facilities in the Southern Highlands and Western Provinces and has a target capacity of 6.6 million tonnes per year. Production is due to commence in 2014 and even in its first year of output when it will not be at full capacity, the project is expected to account for 30 percent of total national exports.
     But its construction requires the delivery of huge volumes of heavy plant equipment, which are unsuitable for PNG’s dilapidated roads. So, with any delay in output set to cost billions, the developers concluded an airport for some of the largest airplanes in the world was a ‘must have.’
     The rush to get energy to market is not only apparent in the highlands of PNG. The global financial crisis saw many new energy projects put on hold, but many have now been ‘green-lighted’ and the race is on to cash in on high prices for fuel.
     “Due to the diversity of cargo moved in the oil and energy industry, cargo can vary from items as small as nuts and bolts to huge ones like pipes or platforms,” said Sam Ang, CEO, Southeast Asia, DHL Global Forwarding.
     The spike in demand from the energy sector often favors airlines with suitable capacity for the sort of heavy, outsized and other types of project cargos such major infrastructure projects require, either during construction or delivered as parts.
     A spokesperson for Lufthansa Cargo Charter, a 100 percent subsidiary of Lufthansa Cargo, said charter demand had spiraled in recent months with energy projects in Africa and South America to the fore.
     “Other project cargo is strong as well with quite a few developing countries like India and also some of the former Soviet Republics. We had a huge project to Uzbekistan last year,” she added.
     Michael Goodisman, Business Development Manager for Ruslan International, which markets the combined fleet of 17 Antonov An124-100 aircraft operated by Antonov Airlines and Volga-Dnepr Airlines, said defense charter demand had fallen away in the last two years, but demand from the oil and gas sector had helped ease the decline.
     “Since the beginning of 2011, we have noticed a jump in the level of enquiries and fixtures for the energy sector,” he added.
     “Energy sector flights into West Africa have been significant and we have already seen significant growth in the amount of project cargo into and out of Brazil.
     “We would expect this trend to continue as Brazil has relevant project cargo industries such as oil and gas and heavy and outsize machinery manufacturing.”
     DHL handles heavylift and project uplift for the sector using its own aircraft, commercial flights and chartered aircraft depending on the specific needs of customers. Ang said the outlook was bright for air forwarders and carriers with strong links to the oil and gas industry.
     “Demand for air cargo transportation [from the energy sector] is increasing as customers need to optimize their use of assets in their operations globally to reduce high levels of asset inventory, which can be very costly,” he added.
Sky King

 

     India’s Ministry of Defense has finally signed an agreement with the U.S. government to acquire 10 Boeing C-17 Globemaster III airlifters. The Foreign Military Sale—approved by the U.S. Congress in May 2010—establishes India as the C-17s’ largest international customer. According to the agreement, India will take delivery of its C-17s in 2013 and 2014.
     “The C-17 will elevate India's leadership in the region,” said Dinesh Keskar, President, Boeing India.
     “With its tactical and strategic capabilities, the C-17 fulfills India's needs for military and humanitarian airlift. The important transaction reaffirms our close relationship of several decades with India and also highlights our commitment to the strategic partnership between the two countries,” Keskar said.
     The agreement is a reflection of the outstanding partnership India’s Ministry of Defense has with the U.S. Air Force. The USAF worked hard to help India strengthen its airlift capabilities with the C-17, Jean Chamberlin, Vice President and General Manager, Boeing Mobility, pointed out. He went on to mention that the “aircraft's ability to transport large payloads across vast ranges, land on short, austere runways, and operate in extremely hot and cold climates makes it ideal for the region.”
     Boeing will support India's C-17 fleet through the C-17 Globemaster III Sustainment Partnership, a proven multinational Performance-Based Logistics program. The GSP "virtual fleet" arrangement ensures mission readiness by providing all C-17 customers—with varied fleet sizes—access to an extensive support network for worldwide parts availability and economies of scale when purchasing materials.
     "Boeing is pleased that the Indian Air Force (IAF) has selected the C-17 to support its airlift mission," said Mark Kronenberg, Vice President of International Business Development for Boeing Defense, Space & Security. "We look forward to partnering with India as we move forward with the agreement's 30 percent offset program, which will help strengthen India's aerospace and defense capabilities." During rigorous field evaluation trials in India in June, the C-17 met all of the IAF's airlift requirements.
     A tactical and strategic airlifter, the C-17 can land combat-ready troops in remote locations or airdrop them directly where needed. The C-17's ability to back up allows it to operate on narrow taxiways and congested ramps. With a maximum payload of 164,900 pounds (74,797 kg), the C-17 can take off and land in 3,000 feet (914.4 m) or less.
Boeing has delivered 232 C-17s worldwide, including 22 with international customers.      The U.S. Air Force—including active National Guard and Reserve units—has taken delivery of 210 C-17s. Other customers include the United Kingdom's Royal Air Force, the Qatar Emiri Air Force, the Canadian Forces, the Royal Australian Air Force, the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations, and the United Arab Emirates Air Force and Air Defense.
Tirthankar Ghosh

 

 

Will Cargo Profiling Take Hold?

     Aviation and terror are two topics historically related, and not only since 9/11/2001. One hundred eighty security experts were gathered in Potsdam near Berlin, Germany to discuss the topic.
     “Think of the sixties last century and the frequent hijacking of commercial aircraft by Cuban dissidents and Castro opponents,” reminded Matthias Seeger (right). The September 11 attacks by al-Qaeda, however, which resulted in nearly 3,000 victims in New York, Pennsylvania and Washington, spelled an unprecedented new level of brutality.
     “It was the very first time in the long existence of civil aviation that planes were misused as deadly weapons to destroy buildings, hit ground targets, and kill the highest possible number of people,” emphasized the helm of the German Federal Police in his presentation. Ever since, security issues have increasingly become important around the globe.
      “With our countermeasures we always intend to be one or two steps ahead of our enemies, but they follow suit by trying to detect possible leaks within the tightly knit security framework established to protect the aviation sector and consequently human lives,” Herr Seeger said.
     Despite all efforts, nobody can guarantee one hundred percent safety, emphasized Germany’s top cop.      This was tragically demonstrated in Moscow with a suicide bomber claiming 35 lives and leaving more than 130 others injured in a blast at Domodedovo International Airport.
     To better protect the air cargo sector, Seeger advocates a profiling approach that includes the entire supply chain of goods from beginning to end.
     “What we need are specific risk profiles that provide detailed information about the origin and flow of shipments, the airports involved, as well as insights concerning shippers, forwarders, and recipients of the goods.”
      Customs authorities at German and other European airports would receive all the data for a shipment four hours prior to the arrival of the aircraft at the latest. Should something look suspicious, a 60-member squad of skilled security experts would be alerted to take a closer look at the goods after the aircraft has landed. This encompasses not only imports but transits to destinations beyond the EU as well.
     The approach is complemented by an official governmental black list containing all insecure classified international airports that offer flight connections to Germany or beyond.
     “Experts of different ministries are sitting together to compile the scroll. That’s why it’s too early at this stage of preparation to reveal any ‘unclean’ airport,” stated Undersecretary Ralf Goebel (left) of Berlin’s Internal Affairs Ministry when asked by ACNFT. He added that Germany intends to send security experts to places identified as insecure in order to advise the local ground handling staff and physically inspect Germany-bound air freight shipments as well. The whole program is dependent upon support by the local authorities.
      In the event that they don’t collaborate “we must embargo their airport for cargo consignments to be flown to or via Germany,” Goebel announced. He outlined that the entire program will be implemented in accord with the European Union since single-handed attempts by only one member state do more harm than good.
     The security concept will complement the existing framework; its implementation is in full swing.      However, its launch might take some months since different departments of the Berlin government are involved, like the Transport, Interior, and Foreign Affairs Ministry. The open question that remains is the financing of the program. Goebel indicated the Merkel administration might demand an additional security fee from the cargo industry. The vast majority of the 180 participants in Potsdam fiercely opposed this idea.      “Enough is enough,” exclaimed Lufthansa Cargo’s head of security Harald Zielinski. “Our industry has already spent huge amounts to enhance air freight security. Since safety supervision is mainly a sovereign function we therefore strongly object to any plans that would impose additional charges.”
Heiner Siegmund

 

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