Vol. 8 No. 121                                                                 WE COVER THE WORLD                                              Friday November 13, 2009

Wrap Around Deccan 360

     Praful Patel and Capt. Gopi display a consignment of fresh oranges from Nagpur during the announcement of the launch of Deccan 360's operations from the Nagpur hub
     Praful Patel and Capt. Gopi pose for a photo in front of one of the eight Deccan 360 freighters sporting the company's distinctive red caps.

     November begins a new era for India express logistics.
     The first Indian company to create a hub and spoke distribution model also launched operations November 9.
     Capt. Gopinath and his Deccan 360 have taken off with 8 freighters that now are covering and connecting 15 leading India gateway airports.
     Deccan has a fleet of over 300 trucks and 850 vehicles nationwide, 8 major surface hubs, with a capacity of more than 300 tons per night by air and more than 60 warehousing hubs.
     The master plan delivers overnight services to 50 cities – achieved by more than 60 franchisees nationwide.
     At the core of Deccan 360’s hub and spoke model is the state-of-the-art hub being developed across a total area of 50 acres at Nagpur.
     Capt. Gopi has signed a MoU with the GMR group, for setting up express cargo operating facilities at Delhi and Hyderabad airports, which, together with the central hub in Nagpur will form an extensive multimodal (surface and air) storage, transportation and delivery network bringing connectivity to every corner of the country.
     He has also set up a central call center at Bangalore.
     Speaking at the launch, which also was attended by the country’s Civil Aviation Minister Praful Patel, Deccan 360 Chairman and Managing Director Capt. Gopinath said that his vision was that of an express cargo and logistics network which would not only make markets and consumers come closer in the metros and in the hinterlands but would also create opportunities for people in all parts of the country.
     Deccan 360, he said provides a network leveraging, with which a small auto parts manufacturer in Jaipur would be able to efficiently feed the supply line of Toyota near Chennai while a mango farmer from remote Maharashtra can ship fresh alphonso mangoes across the country.
     Capt. Gopi is a strong advocate of the yet-to-be-ready first hub of India at Nagpur but a recent study authored by three researchers – Dr. Arpita Mukherjee from the Indian Council for Research on International Economic Relations, Dr. Partha Pratim Pal and Dr. Subrata Mitra from one of the top business schools in the country, the Indian Institute of Management, Kolkata – points out that though the city and its airport in the centre of India has certain advantages, it would not be able to serve its purpose.
     The study says, “at the onset it looks like Nagpur has been the right choice. However, some recent reports have criticized the choice of the airport as a hub.”
     The researchers did a nationwide survey of 133 express companies, 90 clients and 25 freight forwarders to understand the feasibility of Nagpur as a hub for express delivery services and found that the industry preferred operating on a “hub and spoke” model.
     Their survey found out that the volume of traffic was the most important determinant for the location of a hub. Citing the case of UPS shifting its hub from Philippines to China with the increase in the volume of traffic, the professors claimed that the hub in Nagpur would not receive the volumes.
     The survey also found out that most express delivery companies did not have a major interest in setting up a hub at Nagpur.
     This was evident from the fact that while the Express Delivery Council of India had a common user terminal in Delhi and Mumbai, it had not taken up space in Nagpur since its member companies have not expressed any interest. Companies like Fedex and DHL, which have developed gateways in airports like Delhi, have also shown no interest in Nagpur.
     Major express companies even pointed out that though Nagpur was centrally located, express freight movement was currently between west-south, west-north and south-north in the country. The western part of India, mainly Mumbai, received the maximum volume of goods followed by the northern and southern parts of the country. Additionally, a very high percentage of the cargo flew in either from the U.S., Europe or Gulf countries to India.
     In such a scenario, flying the consignments to Nagpur and then sending them back to Mumbai would not make sense.
     Also, the flying time and the necessary fuel cost to Nagpur were more than to Delhi or Mumbai if the cargo was from western countries.
Tirthankar Ghosh

     It’s mid-November 2009 and global business this year has been as far down as can be imagined and maybe only now is managing to crawl back, all in the same 12-month period.
     So in a world that at times manages to measure success by asking, “what have you done for me lately?" maybe it is not too early to keep the good feeling of an emerging better climate for trade going by momentarily reliving a great story of this past year.
     Yes, 2009 did have its moments like when the biggest air cargo shipment in the glorious history of air cargo was handled at Frankfurt Hahn Airport.
     Air Way Bill “ADB – 005 2242” marked the air cargo world record, and the shipment was handled at Frankfurt Hahn International Airport.
     The heaviest single piece ever flown, a generator for a gas power station near Erewan, the capital of Armenia was manufactured by Swiss ALSTOM in their plant near Wrazlaw, Poland and weighed in close to 190 metric tons.
     Just like the axiomatic phrase—cargo always finds the best way to its destination – this one fulfilled that prophecy – but had to take a circuitous route.
     This time it was not the famous “last mile” that produces headaches in global logistics but the endless problems that were enroute almost everywhere which were solved by a close cooperation via a network of experts in several countries.      Bridges had to be torn down or reinforced, curbs had to be eased and electric cables had to be cut, lifted and put in place again to get the goods delivered. Fritz P. Mumenthaler, chairman of Swiss forwarder General Transport puts it this way:
     “Anybody can move a box from A to B; we like to solve real problems and our projects are mainly in exotic and difficult parts of the world.”
     The air portion in this multimodal transport task was probably one of the easier movements, but tough enough for the Guinness Book of Records.
     With its floor weight spreading rack, the single piece weighing 189.980 kg, a very dense load indeed, had to be positioned and tied down in the aircraft exactly in “the sweet spot”.
     A major superlative during this August 11, 2009 record shipment at Hahn Airport was the airplane itself.
     There is only one Antonov 225 in operation; span 88,4 m, body length 85.3 m, height 18,2 m, volume inside 1200 m_ and a payload of 250 tons on the main deck or 90 tons on top of the fuselage.
     Dedicated to carry the USSR spacecraft “Buran” in 1988, the AN-225 was mothballed for a number of years until more and more Ukrainian companies started to trade with the world—mainly in energy resources.
     AN 225 is self-sufficient meaning it accomplishes its mission carrying its own ground equipment etc.
     The AN 225 kneels down – for cargo like tanks or trucks that can load themselves by driving right on board themselves.
     For the record, the world heavyweight shipment was carried on several different flat-beds, by ocean vessels, Rhine, and Moselle river barge.
     Hahn Airport was selected for the airlift because of its ideal though not easy access to the Moselle river, its runway, its 24/7 possibilities and the many Russian speaking handling agents on the ground where Aeroflot has been a fixture here for years.
     The record flight departed at 22:37h local time and arrived at its destination as scheduled.
     “All in a days work,” says Udo Preissner, Hahn Director Marketing & Sales.
     “Plenty of “new” in our airport as we embark with our own management and destiny with a fond salute as we are now separate from our former association with Frankfurt Main,” Udo assures.
     “Shippers looking for the uncrowded central location in Germany and Europe will be amazed at how good and refined our approach is here.
     "We want and are willing to work for our service partners,” Udo Preissner said.

     On November 6, a ground breaking ceremony was hosted in Qingdao Aviation Logistics Park for a multiple-use building of Shandong Airlines, marking the last step before the completion of construction works of the logistics park, the largest logistics park in East China’s Shandong Province.
     Occupying an area of 121,000 square meters, Qingdao Aviation Logistics Park started construction early in 2001, and put into use part of its facilities at the end of 2002. The whole park is composed of a comprehensive logistics park coving around two thirds of the park’s area and a hangar which is capable of maintaining two Boeings 737s simultaneously.
     Owned by Shandong Airlines, the 10,000-square-meters hangar is expected to open this December.
     “After the completion of the multiple-use building, the Qingdao Aviation Logistics Park will integrate services of logistics, aircraft Maintenance and office, enabling all these completed within the park.” Mr. Gong Xin, Deputy General Manager of Comprehensive Maintenance Dept., Shandong Airlines told Air Cargo News FlyingTypers.
     As the largest airport in Shandong Province in passenger and cargo transportation, Qingdao International Airport reports 7.26 million passengers and 95,000 tons of mail and cargo in the first nine months of 2009.
     The upcoming completion of Qingdao Aviation Logistics Park will greatly promote air cargo business for the airport and the logistics industry in Qingdao city.

New perishables label debuts in IATA 10th Edition Perishable Cargo Regulations Manual. Eye catching label bright blue and red—a thermometer and stopwatch—a double arrow and text "Time & Temperature Sensitive."


Contact! Talk To Geoffrey

RE:  Americas Beautiful Venue Lags


   Thanks for your report, as always a refreshing and honest story about Air Cargo News.
   Agree, this venue is outdated, not to speak about the poor hotel and restaurant service – honestly it was worn-out 15 years ago when compared to other much better facilities here in South Florida.
   Last week the gap opened even more. Parking for visitors was also a disaster, simply not enough space for the amount of visitors.
   Unfortunately it is such events that often give South Florida a “bad reputation,” all for no reason as we do have great event locations and hotels available that truly reflect the beauty and quality of our region.
   I do hope that the organizers will move to a more appropriate venue next time, and better combining the air and sea forums.

Albert Saphir
abscon@wans.net or albert@abs-consulting.net


   With respect to your comments about Air Cargo Americas venue:
   I agree that it is good to see the show has a strong footing.
   This was my 5th or 6th visit, and I look forward to the 2011 event.
   As far as the actual venue, the hotel/convention center changed hands in August of this year.
   I will disclose here that I know and do business with the new owners, who also own a Doubletree here at BDL in Connecticut.
   That said, I would hope that the show's operators will give them a chance to address their concerns and your valid points.
   If their renovations here are any indication, I think the place will look a lot different by 2011.

Dan Carstens
Airport News BDL

Air Cargo Americas
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Trading Places At Lufthansa