Vol. 9 No. 128                                                  WE COVER THE WORLD                               Wednesday November 24, 2010


India Pharma Sky High

     Rising pharma exports from India (the $12 billion pharmaceutical industry earns 40 percent of its revenue from exports of off-patent generic drugs) have prompted the government to take notice and move to enhance the facilities available at international airports in the country. Sources in the Ministry of Chemicals and Fertilizers, the department responsible for pharmaceuticals, pointed out to Air Cargo News FlyingTypers that there was urgent need to either establish new cold chain facilities for drug storage at airports or enhance the present ones. Another reason is the constant complaints about the lack of proper cold chain facilities at airports from pharma producers represented by the Organization of Pharmaceutical Producers of India (OPPI).
     During 2009-10, the revenues of the Indian pharmaceuticals industry went up despite the global recession and financial crises, from US$0.32 billion turnover in 1980 to approximately US$21.26 billion in 2009-10.The country now ranks third in terms of volume of production (10 percent of global share) and 14th largest by value, according to official sources. This has led the Pharmaceutical Exports Promotion Council (Pharmexcil) to plan offices and warehouses in the U.S., Europe, Latin America and Japan to help Indian drug exporters. Drug exports are likely to show above 15 percent growth for 2009-10.
     The concerned ministry is believed to have identified 21 airports around the country for enhancement of cold storage/chain facilities, but the first phase will see improvements at Delhi and Chennai. The work is scheduled for completion in a couple of years.
     While private operator GMR manages Delhi’s Indira Gandhi International Airport, the government-controlled Airports Authority of India (AAI) handles Chennai. Talks between ministry officials and the airports’ management have begun and it is believed that one of the demands placed by the airport operators is the levying of a user-development fee for the space the airports would lease out for these special facilities.
     The ministry, sources added, have impressed upon the management of the two airports the need to rush with the construction of the facilities and ensure that each one is of world-class standards. The government has also appointed a committee to take a look at the present capacity in the 21 airports and suggest the manner in which the enhancement can be done. The committee has stakeholders from the pharma community, the departments of health, civil aviation, the AAI and private airport operator.
     The OPPI, in fact, has taken up the Cold Chain Management issue at airports with the concerned government departments for over three years now. It has held discussions with major stakeholders, like the Mumbai and Delhi Airport operators, from where 80 to 90 percent of the export and import trade of pharmaceuticals take place.
     Among the demands of the OPPI in addition to providing cold chain facilities, were loading sheds and refrigerated vans for moving goods within the airports. The discussions were followed up with the establishment of four cold rooms at Mumbai.
     At Mumbai, where space is a major constraint, the four cold rooms for pharma products were created in the latter part of 2009. It has also gone a step further and trained staff to handle temperature-sensitive pharma products. In fact, the establishment of these rooms has sent freight forwarders sulking. Most of general freight is of the opinion that the cold chain rooms took away the prime space for general cargo.      However, MIAL officials pointed out that as far as cold storage for pharmaceutical products is concerned, it has to be realized that Mumbai is the capital for the pharmaceutical industry and the concerned ministry had been asking for the creation of such a facility at the Mumbai airport for some time.
     At the Chennai airport, work is on to add an additional 26,000 sq. meters with an automatic storage and retrieval system (ASRS). That would provide the cargo complex with 58,000 sq meters. In the expanded complex, there will be temperature-controlled cold storage rooms with special flooring, secure storage facility for dangerous and hazardous goods and a number of strong rooms for valuable cargo.
     Once the infrastructure is completed, the Drug Controller General of India (DCGI) will have control over the separate dedicated controlled environment, called a ‘Pharma zone,’ located within the cargo premises at airports.
Tirthankar Ghosh

Reprinted from Air Cargo News 35th Annoiversary Issue Part I. For More Click Here.

 

Printer Bomb India Fallout

     Just when the good news that aircargo was looking up came a shocker. That devices as innocuous as Hewlett Packard printer ink cartridges stuffed with a white powder-like pentaerythritol tetranitrate (PETN) and connected to circuit boards could be easily slipped into the bellyhold of commercial airliners without arousing any suspicion has prompted every stakeholder in the aircargo community to look at cargo security.
     The fallout of the printer bomb has had its fallout on India. British authorities, for example, have instituted measures to check cargo from some airports of India and Pakistan. Since one of the planes targeted by the printer bomber belonged to FedEx, ACNFT tried to find out if any major security changes in the India operations of FedEx had taken place.
     In an email interview, Taarek Hinedi, (right) Managing Director, Operations of FedEx Express pointed out that “FedEx security procedures are confidential and we do not disclose them publicly. We remain committed to security and take all appropriate measures to ensure the integrity of our security system.”
     He also said that “it’s important to note that the FedEx security system comprises interconnecting layers of processes and procedures, all of which are effective”.
     Indian airports, incidentally, have been on 100 per cent screening mode for a long time. The use of sniffer dogs that was discontinued sometime ago, according to reports, would be restarted. But as always, infrastructure – or rather the lack of it – has been the main obstacle – even for such a sensitive subject as security. Some of the major airports are short of X-ray machines for cargo screening.
     The Delhi airport, however, according to its CEO, P S Nair, has 20 X-ray machines. Though these are sufficient, moves are on to find out a less time-consuming screening technique that cuts out the use of X-ray machines. How effective that is. only time will tell but experts believe that the move is risky.
     It is reliably learnt that the civil aviation department is looking closely at RASCargO, a technique that is sold by a subsidiary of ICTS Europe and is used for cargo screening in Great Britain and France. The technique, according to experts, is the best way to clear outsize cargo, thereby over-riding the problem caused by items that cannot be x-rayed or hand-searched. The process entails taking an air sample from the item to be screened. This is done by drawing air from cargo trucks or pallets to specially designed filters. Trained dogs sniff each of the filters for even the minutest traces of explosives, drugs and other material. The samples are then analyzed and if any indications exist, the pallet is stopped.
     For a country like India, where each ton of cargo costs around Rs 6000 to X-ray, the RASCargO technique would certainly be cheaper. While it is almost impossible to check every item of freight moving because the volumes are high, there has been talk that like the express industry’s track and trace system, the whole freight industry could start using it to find out what it is receiving in the consignments.
      To that Hinedi mentioned that it would not be fair to “speculate on what should or shouldn’t be done”. FedEx’s security system, he said, “is effective and we continue to make security a priority”.
Tirthankar Ghosh

 

EADS Creates Courier Cargo Nest

     European Aviation Safety Agency EASA approved an innovative new courier unit that can be installed and extend capabilities of Airbus A300 and A310 freighter aircraft.
     According to Wolfgang Schmid, Vice President Marketing at EADS-EFW Dresden:
     “EFW's new courier unit underpins EADS EFW's engineering development capabilities in the field of freighter aircraft.
     Mr. Schmid explains:
     “To develop the courier unit, EADS EFW used state-of-the-art techniques to achieve the most lightweight courier stowage available on the market.
     “Implementation of new materials in our composite construction delivers maximum comfort for up to three couriers aboard our all-cargo freighter flights.
     “The courier unit itself comes with complete galley equipment such as coffee maker, fridge/freezer and an oven.
     “A pull-out table and a compartment for trays complete the galley functions. Three closed and two open compartments as well as a movable coat rod allow storage of the couriers’ personal belongings.”
     EADS has delivered more than 160 converted freighter aircraft to 30 customers worldwide.
     EADS EFW, headquartered in Dresden, (Germany) is the Center of Excellence for Airbus passenger-to-freighter conversions within EADS. Additionally, EFW develops and manufactures flat fiber-reinforced composite components for structures and interiors of the entire Airbus family.
More: wolfgang.schmid@efw.eads.net

 

ACG Goes South Africa

     Frankfurt Hahn based Air Cargo Germany opened twice-weekly service to Johannesburg Wednesday & Saturday offering full freighter B747-400F service with ACG’s CEO Michael Bock indicating the flights are here to stay.
     “Thanks to a number of binding blocked space agreements numerous logistics providers have signed the payload of our Johannesburg services will be significant over a foreseeable period of time.”
     The flights operate from Frankfurt Hahn to O R Tambo International Johannesburg South Africa.

 

Contact! Talk To Geoffrey

RE: US Senate In Cargo Area

Dear Geoffrey,

     I read with interest your article “U.S. Senate Stumbles Into Cargo Area”. I also saw on TV last night a Delta flight attendant complaining about the TSA. She mentioned that cargo is a concern.
     Years ago Bob Crandall made a very telling statement to me. He said most people basically understand the airline passenger business as many people fly as passengers. But very few understand the Air Cargo business as none of us are boxes.. He was right. The air cargo business is a very complex industry and is one of the foundations of world trade. Your statement that the belly cargo passenger business, all cargo business and the express business sre different is understood by very few people outside the industry.
     The Senators have good intentions and are trying to do their job but they are mainly guided by their staffers who have very little if no air cargo experience. I am continually impressed by the high caliber of the leaders we have in the air cargo business and if congress is truly intent in understanding this complex industry it should put together a panel of industry leaders with a to help guide them in these important decisions.

Bill Boesch

Dear Geoffrey,

     I loved Ted's article on the Stumblin' Senators, with the conclusion of the story hitting the nail on the head.      Unfortunately our government cares more about the public view the governments policies on security rather than the actual security itself.
     Back in 2009, a client had an issue on an original Certificate of Origin on a shipment to Israel.
     The only way to get the new COO to Tel Aviv before customs closed for several days was to hand carry.
     A new one was typed up, I booked a flight, and was flying from ATL to JFK 4 hours later to catch the late night JFK to TLV flight.
     Normally I would have stayed a few days and checked out some sights, but I had to get back to Atlanta immediately, so my return flight direct to ATL was 8 hours after I arrived.
     Upon arrival, explained to customs why I was there, met a courier from my agent in the parking lot, and went to the airport bar. Never left the airport.
     As soon as I can check in, I start the process. So the first security screener is walking up and down the security lines verifying names, tickets, and passports.
     This is where it gets interesting for me. Believe it or not, they thought it was odd a person would fly into the country and leave the same day. When they saw my entry stamp on my passport, a second screener was immediately summoned.
     I answered their questions, explained the reason for my trip.
     They held on to my passport and told me to wait in line, they would be back.
     Well, after explaining my story to 5 different people, having my carry on x-ray screened twice, and physically screened once, I end up in an office with another security person. Once again I explain everything and give him every answer he wants. He has me turn on my laptop, show him some company documents, before asking the name of the person I met with the COO.
     He picks up his phone, says the guy's name, and 2 minutes later is speaking with the guy I met, at home while he is eating dinner with his family. He confirmed my story and I was put in the front of the line for a final screening.
     Was it fun? No.
     Was I extremely annoyed at telling the same thing to six different people? Yes.
     Do I want to go through it again? No.
     However, do I completely understand why I was profiled and how I met that profile? Yes.
     I would love for the security at our airports to have the resources and training they need.
     I would love for the compensation to be such that a higher quality for screeners be in place.
     In the end, the majority of experiences would not be intrusive and most people would fly right through security. Although we have elected these representatives to create policies this country needs, once they get in office all they care about is making sure they have a good enough public opinion to be reelected.
     Thanks for the great articles, I read every one that comes through.

Best regards,
Josh McDowell
ETS, Inc. / Expedited Transportation
Services, Inc.
770-817-3041 - Direct Line
678-614-3810 – Cell

Dear Geoffrey,

     While I might agree that your Senators may be prone to knee jerk reaction in light of the recent security threats, we should give some credit to TSA and CBP who both have approached industry to discuss workable solutions.
     It may be a foregone conclusion that we will see something along the lines of risk assessment prior to loading at a foreign port in the air mode similar to ocean, but if done right, that might not be such a bad thing.
     The 4 hours vs. 8 hours is really a lame argument since we have the same requirements in Canada and send the information at wheels up. Generally that's in the 7+ hours range. No big deal. The problem is short haul flights under 2 hours.
     We don't even have the goods or the information sometimes at 4 hours out. Export reporting with risk assessment done by the importing country before it gets loaded would solve that problem. E-Freight is an initiative already undertaken to make all the possible data available electronically.
     Now, we just have to hold the owners of the data accountable for the accuracy and timeliness of the transmission.
     All that's required is the intestinal fortitude to make the right decisions to include the whole supply chain and not put all this exclusively on the backs of carriers.

Mike Morey
Director, Operational Strategy
Air Canada Cargo HQ
YUL


RE: Giving Thanks With Harold
Dear Geoffrey,

     As a result of the article you published on the Turkey Lunch for Atlanta Customs Brokers in Vol 9 No 125, we fried 351 pounds of Turkey and served 437 meals, by far the largest event ever.
     Now we are looking forward to 18 Nov 2011 for our annual feast to be bigger and better. Thanks to you.

Harold Hagans
ACBIFF@atlantacustomsbrokers.com

Dear Harold,

     No, my dear friend thanks to you.
     It is completely in the spirit of giving thanks that makes this U.S. holiday so great and welcome each year.
     We can all learn and benefit from your sense of charity and community.
     When I think of holidays that we celebrate during the year my favorite is Thanksgiving.
     No gifts , no expectations just people gathering together for a meal.
     This is a holiday where you bring folks and sometimes even strangers into your home and want to make sure that no one ends up on this day alone.
     Harold, you do that for people in Atlanta air cargo and that is just great.
     The other thing I always like about Thanksgiving is that no matter where you are from or what your religion or nationality or color or political persuasion—if you are an American, then Thanksgiving is your holiday. None of this “it isn’t my holiday” as response to universal greeting “Happy Thanksgiving.”
     We cannot be sure in 2010 that the first Thanksgiving celebrated by the Pilgrims in 1620 at Massachusetts became an event because of the landing on Plymouth Rock or because the rock didn’t land on them.
     What we can be sure of is that for many of us,our life in this blessed USA is still wonderful and privileged.
So good for you Harold, for passing Thanksgiving forward.
     Happy Thanksgiving.

Geoffrey


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