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   Vol. 17 No. 37
Thursday June 21, 2018

Left to right—Cavit Ugur, Geoffrey Arend and Emre Eldener.

     Since late last year there has been a new logo and president at The International Association of Transport and Logistic Service Providers (UTIKAD), the largest non-governmental organization in the Turkish transportation and logistics sector.
     UTIKAD as an organization is a bright star on the Turkish logistics landscape, representing a robust and growing membership on many platforms both at home and abroad.
     UTIKAD is a driving force for good, contributing critical information to its members that assures Turkish adherence to international standards in the industry.
     UTIKAD also spends time and resources addressing sustainable development whilst conducting critical training activities aimed toward further development and refinement of the logistics culture in Turkey.
     Bright, effusive, and seemingly never out of ideas to drive the next big thing, Emre Eldener is current President of UTIKAD.
     “Our new branding that debuted last year is meant to project the dynamism that the UTIKAD partnership brings to the table in every facet of the logistics business,” Emre exclaimed.
     “Today, as the industry in Turkey and beyond transitions to even greater heights, developing cost sustainability, education, and innovation not to mention improving speed in service delivery are prioritized.
     “For example, right now we are working to gain better position in world logistics by supporting efforts in Turkey to accelerate improvement of infrastructure, including development of seamless rail connections between Asia and Turkey.
     “The project to build a tunnel under the Bosporus has created a new paradigm in rail and over-the-road connectivity to these growing world markets.
     “Today UTIKAD is 450-members strong.
‘We are a non-governmental organization.
     “Our membership is both large and active.
     “Transportation professionals know that UTIKAD is good for business,” Mr. Eldener assures.

Built A Great Company

     Emre Eldener is CEO of Kita, a company he has led for the past twenty-one years.
     The word Kita in Turkish means continent, was founded in Izmir, and operates in six countries with 300 employees.
     In other words, Kita is a dynamic leader of freight forwarding in Turkey and beyond that operates its own warehouses and trucking fleet.

Words To Live By

     Emre studied mechanical engineering in college.
     Asked what has been his takeaway from his schooling and professional life both in business and also leading the biggest cross-section of transportation professionals in Turkey, Emre answers directly and without hesitation.
     “October 20, 1927, Mustafa Kemal Atatürk, founder of the Republic of Turkey, serving as its first President from 1923 until his death in 1938, delivered a speech to Turkish youth that has had a profound impact on my life:
     “‘O Turkish child of future generations.’
     “‘As you see, even under these circumstances and conditions, it is your duty to save the Turkish Independence and the Republic!’
     “‘The strength that you will need is present in the noble blood which flows in your veins!’
     “This is just an excerpt from his words, but I have never forgotten them,” Emre Eldener said.

Great Expectations

     “My immediate predecessor, Turgut Erkeskin, did a great job advancing UTIKAD.
     “I spend two days a week continuing to build and develop the organization.
     “We have set up working groups to address issues and conduct regular decision making board meetings as well.
     “Everybody has to deal with a myriad of agencies as transportation here continues record growth.
     “So keeping things simple for our membership is well served with regular and far ranging meetings and encounters every month,” Emre said.

Environmental Initiatives

     On April 26, UTIKAD General Manager Mr. Cavit Ugur accepted the Sustainable Logistics Certificate prepared by the independent certification and audit agency Bureau Veritas Business Association in Turkey.
     The recognition was given on behalf of UTIKAD’s groundbreaking efforts to foster even more  “Low Carbon Heroes” throughout Turkey.
     “The environmental effects of the transportation and logistics sector must be addressed continually from now on,” Mr. Ugur declared.
     “We know that sustainable development can be possible with low greenhouse gas emissions and low carbon policies.
     “With this awareness and consciousness we are trying to contribute to the world, to our country, to the sector, and to our members.
     “The Sustainable Logistics Certificate, which is the first and the only in the world, is also the best example of international best practice,” Emre Eldener said.

In The Picture (from left)—ZTO Express Chairman Mr. Mei Song LAI, Turkish Airlines Chairman of the Board and the Executive Committee Mr. M. Ilker Ayc¦, Pal Air Ltd. Vice-Chairman Ms. Vivian Lau, and Turkish Cargo Chief Cargo Officer Say¦n Turhan Özen.

   Turkish Airlines Cargo, ZTO Express China, and PAL Air Ltd. (Hong Kong) signed an MoU for a JV to build a global express/courier company mainly focusing on the global e-commerce market, offering, among other things, full door-to-door services.
   “We are delighted to make this strategic move into Global Express business together with the strong partnership of ZTO and our long term cross border forwarding partner, PAL Air Ltd. from Hong Kong,” declared M. Ilker Ayc¦, Chairman of the Board and the Executive Committee, Turkish Airlines.
   “In 5 years’ time we expect our JV to generate over 2 billion USD of revenue,” Mr. Ayc¦ said.
   “New Istanbul New Airport will be opened by 29th of October this year and it will function as Turkish Airlines’ main operating hub.
   “Eventually providing Turkish Cargo up to 4 million tons of cargo handling capacity, e-commerce products marketed globally via this Joint Venture via the Istanbul Mega Cargo Hub will provide maximum value to our customers worldwide,” Mr. Ayc¦ concluded.

  Turkish Cargo moved Turkish-grown Bing Cherries this week from Istanbul to Norway via its A330 freighters.
  As the supermarkets of Norway receive the luscious Turkish delight, we celebrate the season in song (from our “Bing” Crosby, The Mills Brothers, and The Boswell Sisters) with “Life Is Just A Bowl of Cherries” from 1931.

     One of the major pluses of travelling to an event like CNS Partnership is the chance to return to the dear hearts that we have known, and of course to meet some new ones.
     We recall a couple of years ago when we met with Lufthansa’s Head of Area Management The Americas Achim Martinka, as he readied for his departure back to Europe after a six-year run.
     As we sat and talked and bid each other a fond farewell, he shared something close to his heart.
     “Unfortunately,” Achim said, “I will have to leave the Americas with a few great projects underway, but not finished yet.
     “For example, we are really moving the marble for our planned cooperation with United Airlines Cargo.
     “The team spirit we have already developed in the preparation phase is unmatched and the joint offer we will have for our customers will be outstanding.
     “The good thing is that my successor Bernhard Kindelbacher is the guy who has developed the United/Lufthansa Cargo partnership from a headquarters perspective,” declared Achim, who today serves as Head of the ‘One Cargo’ project for Lufthansa Cargo and Swiss WorldCargo.

A Deep Bench

     Last month at CNS Partnership in Palm Springs, California, Bernhard was front and center with United Cargo’s Jim Bellinder, celebrating the first shipments of the Lufthansa/United Joint Venture.
     Bernhard, a charming scholarly type who at times appears to be thinking big thoughts, has often been pictured in the news during years past from Lufthansa Cargo headquarters.
     Mr. Kindelbacher worked at several posts in Frankfurt, including as Senior Vice President Strategy, Subsidiaries & Business Development, where he was a central player every time some big news was announced.
     We were thinking about Lufthansa Cargo and their “deep bench” (a sports term signifying team players that have the talent to play many positions). The German culture has brought so many top industry executives to the fore.

     For example, for the Americas, Lufthansa Cargo has fielded some truly excellent people, including the aforementioned Martinka and Klaus Holler, and earlier Joachim Haas.
     We also remember Michael Vorwerk, who served as the Americas’ Atlanta-based cargo chief and then moved over to become President of CNS, serving from 2009 until 2012 before returning to Germany.
     Today, Michael is Representative Director Japan, Head of Sales and Handling Eastern & Central Japan at Lufthansa Cargo.

Second Time Around

     For Mr. Kindelbacher, in addition to his JV savvy, this turn in the Americas as top cargo executive (which feels like “OK you put this partnership together with United, now go make it work”) is actually his second time around.
     Bernhard served in the same post in the Americas from 2000 until 2004.

New Challenges

     At CNS Bernhard, who looked about the same as we had remembered and professed that he never watches television, was particularly upbeat.
     “It’s good to be back here after spending ten years in headquarters,” Bernhard said.
     “The industry has advanced. I see more professionalism and energy both here at CNS and also from other carriers.
     “Today our business is developing in several sectors.
     “It is an exciting time,“ Bernhard Kindelbacher assures.
     “The positive results from 2017 have carried forward and there is excitement and momentum in the air.
     “I think continued positive results will help everyone with further modernization.
     “We have announced two new freighters joining the fleet.
     “There are improvements underway at Frankfurt, Munich, and also Chicago, where we are moving once more to our own handling.
     “Central to all of this,” Mr. Kindelbacher insists, “is our people.”
     “In addition to enhanced hardware and software, having the right mix of our own people up and down the line will have immediate impact, for example in Chicago.
     “We are a strong organization that cares about people and customer solutions and we play close attention and take total responsibility for service delivery every step of the way,” Bernhard Kindelbacher said, as word came of the 21 shipments moved the first day of the new JV.
     “Imagine the value and speed we can realize moving cargo non-stop via UA from, for example, the U.S. to destinations in Europe,” Bernhard smiled.
     “It’s an exciting time for air cargo,” he said.

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     “We have met the enemy and it is us,” is the air cargo industry response to India government talk, but there is little action!
     Sure, on paper and in the media, the Indian government—or rather, the civil aviation ministry—is all for pushing ahead to boost air cargo, but elsewhere powerful pressures, including simple indifference to promises and pledges, are working to put brakes on advancing air cargo in India.

Madurai Airport Case In Point

     A recent case has highlighted the usual problem of governmental red tape.
     Madurai Airport in the south, an international airport, is connected to Dubai, Abu Dhabi, Doha, Sharjah, Singapore, and Colombo.
     The ‘Temple City’ airport is known for the export of jasmine flowers (the Madurai Malli) and perishables like vegetables.
     In fact, the first consignment of 300 kg of Madurai Malli was taken by a SpiceJet flight to Dubai on December 15, 2017 (the international cargo terminal was inaugurated on November 28, 2017).

Forwarder Sues For Service

     Freight forwarder S. A. Sayeed (Director - Operations, ABS Xpress Private Ltd) filed A Public Interest Litigation (PIL) in the Madras (Chennai) High Court, which mentions that the absence of an officer responsible for issuing the mandatory plant protection certificate had affected the exports of flowers and other perishables.
     “Ninety percent of the cargo handled are perishable agricultural products consisting mainly of vegetables, flowers such as roses, and Madurai Malli,” the PIL said, adding that more than 100 metric tons of cargo was being handled at Madurai since the international air cargo terminal started functioning.

Headless Quarantine Office

     The airport has a Plant Quarantine Office but there is no officer to head it. Flowers require phytosanitary certificates and the Agriculture Ministry-controlled plant quarantine office has to issue an official document.
     As a result, freight forwarders/exporters have to undertake a 900-km journey to the Chennai regional office for a certificate that is valid for only 24 hours.
     The petition said that while this had put a brake on flower exports from Madurai, it would cause losses to the airport, the government, and the exporters.
     Reports state that the Madurai airport director had brought this to the attention of the concerned authorities consistently over the last five months, but nothing happened.

Big Talk No Listen

     Repeated assurances from the civil aviation ministry that it is keen to see India’s current 35th ranking in the World Bank’s Logistics Performance Index go up higher are underscored by assurances from Vandana Aggarwal, Economic Advisor to the Ministry of Civil Aviation, declaring that the government and the ministry are “open to suggestions from the air cargo industry.
     “I can learn from you where you think things need to change,” are words that seem to fall flat in the cold light of reality.

Show Us The Pain

     Among the stated top priorities of the civil aviation ministry are the improvement of regional connectivity, e-transportation, e-compliance, and the setting up of a grievances body. We are told the main aim of these initiatives is to reduce the cost of logistics from 13-14 percent of the national GDP to roughly 9 percent by 2022.
     “You tell us where the pain point is and we’ll do our best to remove it,” Aggarwal had said.
     “The government is your silent partner.
     “This is reality, not just empty words,” she declared.
     Aggarwal was also quoted saying that the government had an ambitious dream: take India to the 15th position in the Logistics Performance Index by 2020.

Time May Be Running Out

     Now that the Narendra Modi-led government has barely a year more of its tenure before India goes for a national poll, it has to push through all the initiatives that have been launched.
     But amidst all the talk and lack of action, time may be running out this go ‘round.

UDAN Scheme

     During the last four years of the government, The Civil Aviation Ministry has moved ahead to boost infrastructure not only to facilitate the government’s Regional Connectivity Scheme, better known as Ude Desh Ka Aam Nagrik (Let the common man fly, or UDAN) but also to accommodate the growing traffic: both passenger and cargo.
     It is a mammoth task for the state-controlled Airports Authority of India (AAI).

CAPA Weighs In

     In fact, the CAPA India Aviation Outlook 2017/18 pointed out that there was surging traffic, but infrastructure constraints had become critical and mentioned that the Ministry of Civil Aviation deserved significant recognition for actively consulting and engaging with the industry, which was starting to yield results.
     It went on to emphasize:
     “The strategy of engagement and taking accountability is highly welcome and demonstrates a commitment to listening to problems and developing solutions.”

Time To Seize The Moment

     India needs to seize the opportunity because the potential exists.
     Witness the growth.
     According to statistics from AAI, total freight traffic registered a CAGR of 7.08 percent over FY06-17.
     During FY06-17, domestic freight traffic increased at a CAGR of 7.95 percent, while international freight traffic grew at a CAGR of 6.58 percent during the same period.
     In FY17, domestic freight traffic stood at 1,123.18 million tons, while international freight traffic was at 1,855.06 million tons.
     The projection is that by 2023, total freight traffic will reach 4.14 million tons exhibiting growth at a CAGR of 7.27 percent between FY2016 and FY23.
     In addition, international freight traffic will grow at a CAGR of 7.13 percent while domestic freight traffic will be expected to grow at a CAGR 7.50 percent between FY2016 and FY23.
Tirthankar Ghosh

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Vol. 17 No. 34
Inside Blockbuster Surge At DHL
Chuckles for June 4, 2018
BTU Cool By Any Measure
Will India Keep Victoria's Secret?
Vol. 17 No. 35
CNS Partnership Is Unbeatable
Chuckles for June 11, 2018
Top Air Cargo Session Of 2018
Air Mail At 100

Vol. 17 No. 36
ACAS Secures Take Off
Chucles For June 19, 2018
June Rates Flat But Steady
FIATA Posh Journey To India

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