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   Vol. 14  No. 38
Tuesday May 5, 2015

Delta Cargo In The Race Ad

New Landmark For Air Shippers
Ribbon cutting for CTF

(Dateline Istanbul)—Our first impression upon walking into the building was that we had just landed at Google Headquarters.
     The space was so big, bright, and airy, and filled with young, smart looking, purpose-driven people.
     In this business, the opening of air cargo handling terminals occurs on a regular schedule, and each is undoubtedly filled with the hopes and dreams of everyone involved in its creation.
     Over the years we have had the pleasure and honor of seeing some imaginative facilities debut, both at home in the U.S. and around the world in places like Singapore, the UK, and Dubai.
     But a few weeks ago we travelled to Istanbul to see the new Cargo Transfer Facility (CTF) that Turkish Airways Cargo opened January 1, 2015.
     The new Turkish Cargo CTF is not only big, broad-shouldered, beautiful and situated on a tract of land at Ataturk International Airport that will allow for certain expansion in the future, it is a place of expanded capabilities and great promise. It touches every aspect of the transportation art, punctuated by a light and airy openness that lends itself to the business of air cargo and lifts the spirit and imagination of everybody that comes into contact.
     Turkish CTF Istanbul is the right place at the right time, and even for an old cargo hand it’s nothing short of amazing.
     No, it is not about bells and whistles or razzle-dazzle; what is going on here is smart cargo operations at the hub level, with the potential and benefits to rise up and meet any challenge both today and during the upcoming seasons.
     Put simply, Turkish Cargo has now moved further center stage to claim its rightful leadership position on the world cargo air lanes.


Systems & People

     Rather than rush to judgment by slapping a building full of systems and then hoping everything will work all at once (a mistake that has been made time and again by others), Turkish planners and builders opted to take a patient, measured approach, fully fitting out the new CTF whilst measuring some long term decisions about next generation systems.

Halit Anlatan quotes
     But what just knocks us out about the Turkish Cargo IST CTF is how the building deals with the people who work there: the human dimension. It’s the engine that drives everything.
     CTF is a space that allows for everybody inside to view operations and vital activity, offering an unobstructed view of the cargo workspace through giant floor-to-ceiling window walls.
     The view imparts a sense of motion and interaction, a ballet that can only help encourage ideas, sharing, cooperation, and other efficiencies.
     Inside, the Turkish Airlines Istanbul Cargo Transfer Facility staff meeting rooms—where the strategies are planned—are situated facing the air cargo action.
Al Farabi Mural
     There is also a sense of history as interior wall spaces tell the story of great Arab philosophers, poets, scientists and mathematicians, including Abu Nasar Al Farabi and Jallaludin Rumi, whose messages spread to impact people all over the world.
     A bright, busy cafeteria that seats 600 people faces the pallet build up area so that meals (there are no special classes here, meaning both white and blue collar employees dine in the same space) at CTF include an overview of the build up process.
Turkish CTF lunchroom
     Looking a bit further into the Turkish CTF, we also noted only three private offices in the entire place.
     The main gallery where all the people sit on the top floor includes 300 meters of open plan offices under high ceilings with exposed heating and cooling. Everything is painted white, elevating the open Bauhaus feel of the place in an upward sweep of understated functional elegance.

Turkish CTF offices Turkish CTF Office


     “I get a very good daily workout walking back and forth here, before I go to work each day, and also sometimes to work off lunch,” smiles Turkish Cargo Vice President Sales Halit Anlatan.
     “Our new cargo facility offers streamlined operational processes that have been redesigned, and service quality has been maximized.
     “Our network of more than 260 destinations in 108 countries, currently served by 9 freighters with 48 destinations and 253 passenger airplanes, has a center port for a growing business in air cargo.
     “The CTF includes a larger cargo acceptance area, accelerating cargo processes.
     “We have also optimized space for specialty cargo with dedicated areas to handle every consignment from bulk to refrigerated to high value to express—you name it.
     “Whether Live Animals (AVI), Dangerous Goods (DG), Vulnerable Cargo (VUN), Valuable Cargo (VAL), or anything else.
     “If it can be shipped by air, our CTF has a place for the cargo via Istanbul,” Halit insists.
     The cargo admission and delivery space includes 53 bays, with several gates dedicated to TK Plus and special cargo.
     Also vehicle admission areas are 42 m. wide, allowing vehicle traffic and maneuvering to be managed smoothly.
     Accommodation of many different types of vehicles will be facilitated by means of movable level adjusters.


Room To Grow

     Technical Specifications of the New Cargo Facility put future annual throughput tonnage capacity at 1.2 million tons, but Halit points out there is room to grow.


First He Helped Build It

Mustafa Kemal Ozahi     Mustafa Kemal Ozahi is project engineer for Turkish Cargo.
     As part of the team that planned and built CTF, today Mustafa Kemal helps operate while keeping a weathered eye out for the facility.
     Mustafa Kemal studied industrial engineering in school but then worked in logistics for the fashion industry.
     Having spent time on the customer side of the equation he notes a keen awareness of their needs, which gives him knowledge that has served him well both in the design stage and today in the ongoing implementation of operations for the new Istanbul hub.
     “Actually, when we launched CTF on January 1, we moved operations into the new facility and had everything done in one day with no problems,” said Mustafa Kemal.
     “We were keenly aware that our former facility here was a level two facility. “Too much wasted motion.
     “Our biggest challenge in this new CTF was changing the mindset.
     “People, we felt, would revert to the processes they were familiar and comfortable with from habit.
     “So we commenced staff retraining prior to the move last August 1.
     “Today, everyone is on the same page.
     “There is total seamlessness and transparency in communication here because of the physical layout of the building.
     “That is a real plus for the three shifts a day with 200 people, four shift managers, and eight shift supervisors.
     “Our old facility could handle 550,000 tons, today we are handling 700,000 tons.
     “The projection ahead 4 years is 1.2 million tons annually.
     “Looking ahead we are changing our IT set up to IBS.
     “We currently have sent staff to Lufthansa, our alliance partner, to learn best practices, among other things,” Mustafa Kemal said.

Turkish Booth At ACE
The Vision Thing

     “Bringing this great facility forward we notice that there is better and clearer focus on vision—that allows better interaction for everyone working together as a team, to share the same passion,” said Mr. Anlatan.
Turkish Stand No     “We are an airport to airport service, so we have to be a true partner to the freight forwarder.
     “Right now, price has become a bargaining chip because of the cost of fuel, but we buy in Kazakhstan where nothing has changed.
     “So the bottom line is Turkish customer service.
     “We are not an industrial country; we are a trading conduit.
     “Now, in addition to our growing, modern air fleet (including freighters), our incredible geographic location as a nation and gateway, and the determined effort of a truly dedicated air cargo management and staff, we move ahead in 2015 seeking new business and challenges.
     “This facility is the new landmark for air shippers.
     “Our investment here is our commitment to a long-term program to take our cargo enterprise in a leading direction well into the 21st century.
     “Turkish Cargo can handle it,” Halit Anlatan said.
Geoffrey/Sabiha


Chuckles050515

ATC Aviation Out Front

     Nobody has to tell ATC Aviation CEO Ingo Zimmer to stand tall.
     At nearly 6 foot five inches, the dynamic leader of “wunderkind” GSSA ATC, based in Cargo City Sud Frankfurt-Main Airport, is usually the easiest to spot, even in a crowded room.
     But as 2015 continues, excitement and forward momentum in the global GSSA game has become ATC's business brand.
     From small acorns has sprung a genuine, European-based mighty oak, as ATC has forged its way to becoming a major factor and the preferred airline cargo resource in North America, Latin America, and as you will read here, elsewhere as well.
     “We are very positive for 2015,” Ingo insists.
     “Currently our existing network covers four continents, nineteen countries fielding thirty-six offices with more than 200 employees.
     “We can announce that during 2015 ATC plans office openings in South America.
     "We are also continuing to focus heavily on building our brand across Asia.
     “Last year (2014) ATC recorded month to month increases throughout the year.
     “Upward movement year to year continues into 2015.
     “Our coverage in Europe remains a strong point.
     “In Germany, for example, ATC is currently moving 7,000-plus tons monthly," Ingo said.


Growth Partnership

     “ATC is proud to grow with existing customers.
     “Some of the airlines we represent in Europe include Qatar, Etihad, and Turkish--all top line cargo carriers with venturesome and exciting cargo offerings.
     “In the U.S., where ATC acquired Platinum Cargo (now branded as ATC), we see plenty of opportunity for growth for our GSSA service whilst fielding an expert team headed up by Timothy Pfeil and Don Cochran.
     “ATC launched in South America last year.
     “Viva Latin America!” Ingo exclaims, obviously glad he made the move. “Here we are now adding exciting new airline customers almost on a monthly basis,” he exclaims.
     “ATC is open for business in Argentina/Brazil/Ecuador/Venezuela and via co-operations in Uruguay and Paraguay.
     “No doubt we are well on the way to becoming the leading GSSA operation across all of South America,” he smiles.


Total Dedication Across The Board

     “I believe in partnership and quality.
     “What that means in exact terms is that if airlines had good experiences with us and our product offering in Europe, they will be comfortable in Asia and in the Americas as well."


Tailored Made Services

     "Our strengths lie in the variety and flexibility we offer, covering not only basic requirements but also an expansive range of service requirements with deft experience, market coverage, and quality.
     “In fact, in every case, quality is job one.
     “ATC is also quite flexible and in fact never markets a one-size-fits-all, cookie-cutter approach.
     “We offer everybody both big and small world-class services either as regional representation/national representation/area representation or full global services as part of our options offering.
     “There is also plenty of variety in our service packages.
     “Customer can access various ATC Service Modules, including customer service+reservation/customer+service+reservation, and sales/customer service+reservation.
     “Of course, full sales and accounting support are also a major part of our offering," Ingo Zimmer said.


ATC Yesterday & Today

     Founded in Switzerland in 1971, during nearly a quarter century of service ATC has compiled an enviable track record in markets around the globe.
     “All our offices are company operated,” Ingo said, "and there are no subcontractors fronting our operations.
     “We utilize the same centralized, state-of-the-art IT everywhere, featuring a clear and very direct group procedure manual.
     “I have hand selected all of our top managers using a very strict and well-tuned discipline.
     "Our belief is simple. Operating a great GSSA must include that the best surprise is no surprise.
     "For example, all customer service staff at ATC count having a forwarder/airline background as an active and, to our purposes, vital part of their CV and job experience.
     “There is no corner cutting in any part of our business, meaning a first class offering, and no thought of cheap labor, either,” Ingo said.


More Airlines & Growing

      “ATC is adding value and supporting airlines in strategies and SPAs/partnerships.
     "In 2015 ATC is the leading GSSA in Germany, Switzerland, and now the USA, where we are among the top five air cargo capacity providers,” Ingo said.


Any Surprises?

     “I am surprised about the sudden downsizing of the cargo activities of Asian carriers we have known for decades here in Europe.
     “But I think the most important change in the GSSA business has already happened, reversing some negative views of GSSA providers when we started in business.
     “ATC has proven by reputation that we are a force for good as we continue to show how much benefit--including both cost savings and innovatio--we bring to the industry.
     “Looking ahead, it is our most earnest desire to expand and innovate, so we will further enhance and innovate our offering as an important and professional partner in IATA and the air cargo industry in general.
     “With 350 million euro turnover per year, ATC is already among the top five 3-5 GSSAs in terms of sales.
     “I believe we are very solidly the industry leader in terms of quality already.
     “As mentioned, in terms of total tonnage, ATC leads the way as number one GSSA in top markets like USA, Germany, and Switzerland.
     “But looking at tomorrow, let’s see what our expansion in Asia and Latin America brings,” Ingo smiles.


Why Air Cargo?

      “For me, this is the most exciting job you can be involved in. It can never be boring You make friends and business partners with people and different cultures from all continents, all of who want to do real business.
     “It is at once exciting and always a challenge to better yourself.
     "Sure air cargo can do some things better, there is always room for improvement all around and up and down the line.
     “For example, airfreight still spends too much time on the ground.
     “The interface between cargo agent-ground handling agent and airlines has to be improved,” Ingo Zimmer said.

ATC Booth
At Hall B Stand 317 Munich

     “We are in Munich at Air Cargo Europe (ACE) because this is the biggest and among the best events in the world.
     "We can meet most of our airline partners during those four days.
     "Also we have a great opportunity to meet and greet most of the German forwarders and some of the international forwarding community in attendance here as well.
     “At ACE we are fielding 20 and more ATC specialist managers from all over the world that will be in evidence in the ATC stand throughout the events this week.
     "All attending ACE this week are cordially invited to stop by and say hello,” Ingo Zimmer said.
(Geoffrey)



Pradeep Kumar and Prakash Nair   Never mind the Cowboys—here come the Indians!
   One of our favorite trade show pictures has Pradeep Kumar, senior vice president, Revenue Optimization and Systems, Cargo, (L) and Prakash Nair, manager Network Cargo Sales Development, both of Emirates SkyCargo, at TIACA Calgary, when somebody gifted everyone with rodeo & cowboy hats.
   What goes around certainly comes around; the “Dynamic Duo” (sans the Cowboy hats) are at Air Cargo Europe this week in the Emirates Stand 401 located in Hall B.

Playing An Ace In Munich

In the game of cards, the Ace of Spades has two paradoxical meanings: it’s the card with the highest value, but it’s also the death card.
     Topic A at Air Cargo Europe (ACE), taking place in Munich, Germany, as part of Transport Logistik from May 5th to May 8th, raises the question of whether ACE will be the trump card of 2015’s cargo events, or another joker wrapped up as a super- sized industry event.
     It’s big, all right, this air cargo industry event that seems surrounded by all modes of transport and is taking place in the enormous venue, Messe Munchen.
     But let’s get down to what ACE is about, and wonder politely: will it deliver?
     ACE’s self-appraisal on its website is not really encouraging:
     “Air Cargo is the most important centrally located business platform for the air cargo sector,” the website proclaims.
     But what does that say? Air cargo is a business platform?
     “This is where international air cargo professionals come to network, make new contacts, develop upcoming markets and explore joint business potential.
     “This four-day event is an essential platform for key players in all areas of logistics – serving their information needs and paving the way for strategic decisions.”


ACE Is About Europe


     ACE is and has always been an event centered on German and European aviation. While it is an important event, and even though you may find the true “key players,” ACE may be more fertile ground for those self-proclaimed executives who develop “upcoming markets.”
     The exhibitors (aside from multinational equipment manufacturers and IT companies) are largely from Europe, plus airlines and other companies from Asia and the Americas with sizable European business.
     We think what actually makes ACE noteworthy is its integration with the Transport Logistic Fair, that is again—according to the ACE website—“the world(s) leading trade fair for logistics, mobility, IT and supply chain management.”
     While ACE and Transport Logistics together may expect in excess of “50,000 visitors from 110 countries,” that makes it rather a mass event and not a domain of key industry players.
     Indeed, the keynote speakers at the ACE conference support the conclusion that this event is centered on Europe—which is certainly nothing bad.

Before The Crowds
Set Up Day At Air Cargo Europe
Monday May 4, 2015

Lufthansa ACE Booth


ACE Narrow Aisles

Emirates Booth

EMO ACE Booth

Spotlighting The Conference

     The ACE Conference taking place on Wednesday May 6th will see Alexis von Hoensbroech, newly named board member Products & Sales of Lufthansa Cargo AG speak on the topic of “Future of Air Cargo.”
     There will also be a panel discussion—“eCommerce in Airfreight: Possibilities and Priorities”—that will present viewpoints from Guillaume Drucy, head of Cargo e-Business Management, IATA; Tim Scharwath, executive VP Air Logistics, Kühne & Nagel; David Yokeum, president, WCA Ltd, and others.
     Another panel discussion, “Advance Data – Is the Industry Ready?” moderated by the omnipresent Enno Osinga, SVP Cargo Schiphol Airport, will see panelists from the UPU, European Commission, and Air France / KLM discuss the state of the industry’s readiness to provide shipment data.


Awards, Awards, Awards

     Of course, ACE is another event that would not be complete without handing out various awards, such as the Airfreight Forwarder of the Year, Air Cargo Handling Agent of the Year, Air Cargo Charter Broker of the Year, Airport of the Year, Air Cargo General Sales Agent of the Year, Air Cargo Industry Customer Care Award, Air Cargo Industry Achievement Award, Information Technology for the Air Cargo Industry Award, and Cargo Airline of the Year.
     We will keep our readers posted in the unlikely event that someone other than the usual suspects should be awarded with something.


Gala La La Dinner

     Also to be expected is the usual Gala Dinner alongside the aforementioned awards ceremony.
     However, this dinner is taking place in the hotel “Bayrischer Hof,” known for its upscale wining and dining.
     So amongst the overtaxed, eager, and maybe overly excited at the prospect of winning or losing, there’s hope that at least the food will triumph and perhaps even exceed the substandard offerings of this year’s IATA WCS in Shanghai.


Top Rated Exhibits

     One of the true reasons to visit ACE is the abundance of exhibitors. This year, 2,040 exhibitors from 62 countries have registered and will occupy nine exhibition halls and a total of 110,000 sq. m. of outdoor exhibition area, showcasing “all the latest trends and developments all along the value chain in the sector.”
     An important focus of the exhibitions will be on digital products and solutions—199 different IT companies filling the entire expo hall B2 will provide a complete portfolio of cargo-, transport-, and logistics-based IT solutions and the newest hardware, making these tasks faster, more effective, and more transparent.


Variety & Then Some


     What also makes ACE Munich worth your attention is the complete array of cargo- and transport-related services and products, and its clear focus on Europe.
     That actually is beneficial—you meet your target clients and competing peers as well as providers or virtually any service an airline, GHA, GSA, GSSA, forwarder, or logistics provider might need, and it gives a good overview about what is new in terms of products and handling.


The Takeaway

     ACE is not, however, about policymaking and driving the industry further.
     ACE is all about the meet and greet, an exchange of wishes and business cards, and looking at what one’s preferred supplier has showcased (and looking at the price tags of the not-so-preferred suppliers for the next round of purchase negotiations).


Catch A Moment

     A number of briefings scheduled by exhibitors will certainly prove some interesting insights about the air cargo business:
     Dirk Reich, Cargolux CEO and Yuan Shengbo, deputy director of HNCA will explain CV’s “Dual Hub Strategy & Advantages of the Boeing 747 as a partner for the Global Supply Chain,” Air Charter Service will provide insight into “Enhanced On Board Courier Service: Air Charter Service invests in global product,” and the Rhenus Group is holding a press conference about "Russia traffic in crisis? Changes bring new flow of freights,” while Jettainer, the ULD leasing company, presents their new global repair concept for ULDs.
     Although rather specific topics, it is also safe to say that among 50,000 or more attendees, each briefing will attract a sizable number of interested parties.
     With plenty of beer, weisswurst, and pretzels in supply, the only thing that could prevent the cargo-centered businessman from having a good time in Munich is the weather, which for this time of the year is cool and rainy.
     But the hope is even the weather this week in Munich may have an ACE up its sleeve and behave itself.
Jens



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