Vol. 10 No. 65                       THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001                Friday July 8, 2011



     The multi-modal international hub airport at Nagpur (MIHAN), under the Maharashtra Airport Development Company (MADC), continues to attract attention even before it has started functioning. The project created a lot of bad blood among the local populace, who had been forced to sell off their land at prices they perhaps considered unthinkable. Today, while a number of cargo and logistics stakeholders are vocal about the Nagpur project being unviable, others maintain that the hub’s focus should be changed.
     The Nagpur hub may lie in the geographic center of India, but the location is not a guarantee that it will operate successfully as a transshipment hub. The U.S.-based Jones Lang LaSalle, a financial and professional services firm specializing in real estate services and investment management, believes that while Nagpur has the infrastructure for the establishment of a Special Economic Zone (SEZ), the cargo hub idea will not work out.      
      Nirav Kothary, (right) Senior Vice President, Jones Lang Lasalle, pointed out “as far as the SEZ is concerned, MIHAN has all the infrastructure ready, giving it an advantage over other areas. However, nobody is buying the cargo hub story.”
     Kothary, incidentally, was one of the professionals at a recent logistics conference on Nagpur, held under the aegis of the Confederation of Indian Industry (CII), and Jones Lang LaSalle had completed a report on the logistics sector in Nagpur. Others said that the proposed hub in the central Indian city would never be able to compete internationally with three preexisting hubs in the Middle East in close proximity. Why would aircraft land in Nagpur for the transshipment of cargo when it was possible to do it faster at Dubai and with better infrastructure, for example?
     To top it all, Nagpur does not boast any major industry. It is neither a center of production nor one of high consumption and therefore the question of high redistribution of cargo taking place does not arise. Kothary also said that until a carrier made Nagpur its hub—for which, of course, the government would have to take the initiative—the idea of redistributing cargo would not work.
     One of the country’s top cargo professionals, Tushar Jani, (left) was blunt. He said that the city of Nagpur did not figure on any cargo map of the country. In fact, the logistics corridors are all around Nagpur and reach out to destinations like Mumbai, Chennai, Delhi and the National Capital Region and Kolkata.
      “With long-haul aircraft (readily available),” said Jani, “the idea of getting down at a central location to redistribute loads no longer holds relevance." However, Nagpur could aspire to be a regional transport hub – but only after the authorities decided on a uniform tax structure (today, without a uniform goods and services tax in the country, each state or province has its own rate of taxes that result in undue holdups at state borders). Perhaps, what is important is that until now, the only sector that has shown interest in Nagur is IT and that has little to do directly with cargo.
     Aware of the lack of interest with the MIHAN project from logistics and cargo majors, the holding company, MADC, has chalked out an elaborate plan to ensure that the project takes off. The plan has also been prompted by a consultants’ report on the revamping of Nagpur airport. According to sources in the MIHAN project, the main obstacle was funds. Only time will tell if the Nagpur multimodal hub, initiated by former Indian Civil Aviation Minister and now Minister of Steel and Industries, takes off.
Tirthankar Ghosh

 

     Excellent reading in American Cargo Business Insight, which included this article dated June 27, 2011 and titled “A GACAG By Any Other Name”
     
      The sound of acronymic collaboration in air cargo has been likened to a choke, gibberish talk, and even that of “a baby eagle asking for more ground-up worm.”
     Enter the Global Air Cargo Advisory Group—GACAG—the joint effort of several air cargo industry organizations, including The International Air Cargo Association (TIACA), the International Air Transport Association (IATA), the International Federation of Freight Forwarders Associations (FIATA), and the Global Shippers’ Forum (GSF).
     And while GACAG may use a tongue-twisting acronym, its work promoting harmonization in air cargo is music to the industry’s collective ears.
     Michael Steen is chairman of The International Air Cargo Association (TIACA).
     He is also a principle executive of Atlas Worldwide Holdings, the biggest ACMI provider on the planet.
     The advisory group has taken on a broad, challenging mission, focused on identifying needs in the supply chain, finding ways to satisfy them and ensuring policy makers hear input from the air cargo community.
     In March, GACAG members agreed on basic principles for the group. Since that time, what progress has GACAG accomplished?
     Two key leaders in GACAG, Michael Steen (above right), Chairman of TIACA and Oliver Evans, (above left) Vice Chairman of TIACA, recently addressed this question with Air Cargo News FlyingTypers:
     “I think you will see some results in a very short period of time,” said Evans.
     “Why do I say that? Because right now, as the U.S. and other countries draw closer toward recognizing each other’s security requirements, GACAG is already playing a key role.”
     “I think we have seen positive results already,” said Steen. “For example, at the last CNS Partnership we heard a presentation mentioning GACAG as a road map toward the future.
     "I think that is a result in itself – recognizing GACAG as a template for the future whilst saying ‘let’s all get onboard and build our future together.’”
     The GACAG seeks answers to major industry challenges and initiatives, an effort that will take time to bear fruit. In the meantime, one question remains:
     Will GACAG continue to be the almost unpronounceable acronym used to identify this group, or will the name evolve?
     “Everything we do is evolutionary,” said Steen.
     “Now as the World Customs Organization and others are showing some interest in joining our effort, as the structure of GACAG changes, I think eventually that could have an effect on the name.”
     No matter what they call themselves, the industry will watch the GACAG closely for much-needed answers to air cargo’s biggest questions.
     What do you think?
     Is the GACAG acronym endearing and memorable, or due for an early makeover?

Air Cargo News FlyingTypers
Responds:
     GACAG (pronounced GAK-KAG) is the peanut-butter-stuck-to-the-roof-of-the-mouth name for a new idea air cargo group.
     For an old Vietnam War veteran, GACAG is vaguely reminiscent of the sound we used to describe enemy fire.
     In a sense, GACAG is perfect to describe something new, because in 2011 the word does not sound like anything else.
     With well-meaning air cargo leaders like Evans & Steen standing foursquare behind the idea, GACAG is also the most hoped for success in air cargo in a long time.
     If GACAG can get the big trade organizations, IATA and some others anywhere near being on the same page about issues confronting air cargo, that will be great.
     That GACAG has at least brought all the big players together is landmark.
     The last time something as exciting and promising as GACAC happened to air cargo was when Bob Arendal and some others figured out how to wrest the defunct IACA trade show from the SAE and form TIACA as an industry organization.
     Now TIACA has hitched it's star to GACAC and brought a "big idea" to air cargo that seems to be catching on everywhere.
     A better air cargo industry is what is on the table here and the time is perfect for everyone to speak up and come to the aid of this business that means so much to all of us.

Geoffrey


 

     It is always about business, goals or industry matters with Oliver Evans, Chief Cargo Officer at Swiss World Cargo.
     As Summer 2011 sweeps by, under a shady tree with a cool drink, Oliver talks about… well… Oliver!

ACN/FT:    About Oliver—If you were not in air cargo, what would you be doing? How many days do you travel a year? Where do you vacation? What is your favorite city? Describe your favorite meal? Name three restaurants in various cities that are favorites?
OE:   I am not in the air cargo business. I am in the global people business. I am driven by self-exploration and development, which of course includes my role as the leader of a community, and I am committed to helping all those around me in their own self-exploration and development.
     We need to make a living and in order to do that we must serve our customers and our stakeholders to the utmost of our abilities, but my motivation is the people and the global stage on which we operate. I therefore travel extensively (on average perhaps 1 intercontinental trip per month and 1 European trip per week).
     Although Paris (where I was born and grew up) and Zurich (where we have chosen to settle down) are wonderful cities, my favorite cities have to be Kyoto and Florence: they are both cradles of civilization and art that have managed to preserve in their buildings, hotels, restaurants, and in their people, the hallmarks of the highest quality.
     My favorite restaurant is in the outskirts of Kyoto; I don't know exactly where and I don't know its name: it is a tiny family-run place. My daughter Alison who has lived in Kyoto takes us there; we always dine in a private room upstairs with translucent paper walls, and we always end drinking sake while my daughter and the lady of the house discuss, in their fluent Japanese, subjects worthy of such a magnificent setting.
ACN/FT:    Would you encourage your children to go into air cargo?
OE:   Would it do any good?
     I do not see my role as a father to encourage or discourage my children from going in any particular direction: rather I must try to open up for them as many windows on the world as possible, and to guide them to make their own choices.
     I am married for nearly 30 years to Elizabeth, whose smile goes back to Irish roots, which also give me the opportunity every year to enjoy the wild and wonderful coast, my daughter Alison spent a year in Japan, and is now doing an internship with the European Commission in Brussels before returning to University in England (e.g. London School of Economics) or USA (e.g. Columbia University) to do a Masters in International Relations.
     When my son Luke was 16, I engaged him in a conversation to find out what he might want to do with his life. He had no idea, but he was very clear about what he did NOT want to do, namely get into air cargo (as I was of course the living embodiment of the dire consequences of living in the industry). Today (aged 22), he is working and thriving in the air cargo industry . . .
Geoffrey

 

 

Remembering Benchley

     As Summer 2011 rolls on, we reflect about from who we learned this craft, while wondering about what lies ahead.
     What started this particular train of thought are some writings of Robert Benchley.
     His short piece about the great depression of the 1930s here in America was not a laughing matter for the many people who suffered out of work, but in 2011 it serves to remind us that what goes around comes around.
     Robert Benchley was one of the great American humorists of the 1930s and 40s.
     Benchley wrote forThe New Yorker and Vanity Fair and the newspapers.
     He performed with the great English stage actress Gertrude Lawrence and many others.
     He was also a charter member of the famed Algonquin Roundtable, named for a hotel in Manhattan (still there) where many writers who went on to immortality used to gather during the 1930s, including Dorothy Parker, George Kaufman, Edna Ferber, Alexander Wolcott, Deems Taylor, Harpo Marx and others.
     Robert also did a wonderful short film in Hollywood titled “How To Sleep,” which won an Academy Award in 1936.
     But it was his sense of the absurd and what he said about the common state of things that give Benchley writings a life today.
     In fact, a great website celebrates Benchley (it is worth noting that his son, Peter Benchley, wrote the book “Jaws”) http://www.benchley.blogspot.com/
     Here is what Robert said about the financial crises mid-1930s . . .
     “Now what were the primary causes of the great depression?
     “Overproduction, mal-adjustment in gold distribution, overproduction, deflation, too little thyroid secretion-or Plats disease, too much vermouth, overproduction, and by the same token underproduction.
     “Then there was also the Gulf Stream.
     “All of this helped lead to inflation, deflation and overproduction with the consequent depression.”
Geoffrey

 

A Widebody Aircraft Becomes A Legend
     November 23, 1971, was definitely a historically significant day for Lufthansa. As the first and only airline in the world to date, it had placed an order for a “pure” 747 F Jumbo wide-body freighter, which finally rolled out of the assembly hanger of the Boeing works in Seattle, Washington late in autumn.
      The total price of this airplane amounted to 82 million DM and Lufthansa wanted to use this aircraft to fly six runs a week between New York and Frankfurt. Higher capacities, more flexibility and economic efficiency were expected because of its 100-ton freight volume. But, above all, it was expected to give Lufthansa the edge in order to keep abreast of the increasingly tough competition in the 1970s.
      In addition, this wide-bodied aircraft was to offer an alternative to sea transport: The new giant of the air offered freight capacities that were unknown to the air cargo industry. Up to this time, air transport could not for the most part compete with sea transport, especially over the North Atlantic; but this revolutionary aircraft was able to redefine the meaning of competition in this area. Unfortunately, the acquisition of this Jumbo-aircraft, which was without question the German carrier’s greatest, pioneering achievement, posed a great financial risk. Other investments, including handling- and loading equipment, were needed in order to provide smooth operations in the future and to do justice to this innovative means of transportation.
The 747F Takes Up Service
     On the April 19, 1972, the time had finally come. The largest load of commercial freight that had ever been carried in an airplane was flown in the Jumbo from Frankfurt to New York. The cargo, a manufacturing facility composed of a total of twenty-five electronically controlled, circular knitting machines, attained the impressive weight of 83 tons.
      The handling of this flight, including the spectacular onloading with the self-designed and developed loading equipment, demonstrated clearly the efficiency of Lufthansa and showed the importance of Germany in the international airfreight industry. The German airfreight handlers were also capable of mastering the follow-up overland transports with special vehicles, because the valuable freight had to be brought from New York to Spartanburg in the State of South Carolina.
      In this way, it became crystal clear that putting the 747F into operation was not only a challenge for the carrier and the airports, but also for the handling agents. Every single link in the handling chain, which was mandated to carry through similar assignments, had to be ready for the challenges that the new transport concept brought with it.
     Within a short year, Lufthansa was able to report positively overall about the wide body freighter. In its first year of operation, 29,691 tons of freight, including airmail, had been carried from Frankfurt to New York, or New York to Frankfurt.
      It is important to note that all flights had taken place without technical difficulties. The 630-cubic meter cargo-hold was indeed impressive: It matched the freight capacity of six 737-freighters. That allowed the length of the largest piece of freight to be 50 meters, its width to be 3 meters and its height to be 2.5 meters – and, just for the record, the air freighter itself was 71 long with a wingspan of 60 meters at least. With a Maximum Takeoff Weight of 363 tons, the jumbo was a real heavyweight. The tanks of the Jumbos held 197,000 liters of kerosene, whereas the average fuel consumption measured 15,500 liters per hour.
      Two of the Boeing 747 F’s real advantages have proven to be the bow loading hatch, jocularly known as the “nose door,” and the on-board roller system for the loading/unloading of containers and pallets. Even so, the loading of this “cargo giant” posed somewhat of a challenge for board- and ground personnel. Before take-off, precision work was required of the pilots: the nose of the Jumbo had to be brought into position inch by inch on the loading apparatus. No gaps were tolerated between the cabin of the aircraft and the elevating platform. After this maneuver, the pilots exited the plane’s cockpit via a 20-meter high mobile staircase and turned the Boeing 747 F -freighter over to the freight specialists.
      The loadmaster first activated the already mentioned bow loading hatch – this was then the Jumbo looked like it was starting to smile. Only when the front section of the cabin was completely open could the loading begin. With the help of some electronic equipment, (for example, the on-board roller system) the extremely heavy loads were effortlessly onloaded and stacked in the cargo hold of the freighter. In order to do this, little levers in the sidewalls of the cabin had to be activated so that the pieces of freight could be moved around in the belly of the aircraft completely automatically on rollers and switch-overs. In little more than an hour, it was possible to completely offload a jumbo-freighter and then, in the same time, on-load it once again.      Furthermore, Lufthansa utilized so-called “bungalow-containers,” which had been expressly developed for use in the Jumbo. These containers were sturdy enough and at the same time light enough to make the transport in the airplane even more economical. The main difference between these and any other containers—like the “Iglus,” which were still in service—was the rectangular construction, which allowed for the complete utilization of the entire interior volume of the unit. At the same time, the container could be used for on-going or follow-up road forwarding operations – thus ensuring the first genuine “house to house service” in the history of airfreight.
      No one can deny that the German carrier with the Jumbo-freighter set completely new standards for the industry, and no one is surprised to learn that very soon other airfreight companies, like British Airways and Seaboard, introduced a Boeing 747F into their fleets. The first year of operations was a complete success for Lufthansa, and consequently the head of the freight division, Siegfried Köhler, was pleased to sum up: “The technical perfection of the Boeing 747F’s flight operations has proven that we are dealing with a technically mature aircraft.”
Matthias Appinger - The University of Vienna

Please Note: Germany goes gala over air cargo with a week long celebration that commences on August 17th and begins with the unveiling of a new book commissioned by Lufthansa entitled “100 Years of Air Cargo.”
The landing page to keep up with the latest happenings and celebration of 100 Years of Air Cargo is http://www.100-years-air-cargo.com/


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