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   Vol. 18 No. 10
Wednesday February 6, 2019

air cargo news for January 22, 2014
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Turkish Cargo Marches

Turhan Ozen“Our goal is to be a top-line enabler and to position our offering amongst the top echelon of the world’s cargo carriers by 2023, as the Turkish Republic celebrates its 100th anniversary,” Turkish Airlines Chief Cargo Officer, Mr. Turhan Özen said.
     “So, with everything else we are about, building our offering to the world is a matter of national pride,” he added.
     News that Turkish Cargo will debut a brilliant new cargo center on March 2 hit the air cargo industry with a thunderclap late last week, and for sheer excitement surpasses the news cycle so far in 2019.
     “Now the date has been set to begin a new chapter in air cargo,” Turhan Özen smiles.
     “The world’s biggest air cargo facility – SmartIST is just the start,” Mr. Özen said.
     “When fully realized Istanbul Cargo Village can move six million tons annually.
     “In Phase One SmartIST can move 2.5 million tons.
     Bearing witness to the rapid rise of both airline and country is the transportation connectivity within Europe where Turkish Airlines and Turkey go head to head versus just about everybody.
     “In terms of hub connectivity,” Turhan points out, “while IST airport was 12th in 2008, it advanced to the 4th position in 2018.
     “IST Airport in 2018 was also 5th in Europe, for offering the most direct connections.
     “We were the 29th busiest cargo airport in the world in 2011, moving up to 20th in 2017.
“We are keeping apace of continuing to increase our business to be 5th busiest cargo gateway in the world by 2023,” Turhan said.

The Game Changer

     “For Turkish Cargo, operating in a facility that offers more than three and quarter million square feet (300,000m2), is a real game changer.
     “Here will be both human and artificial intelligence driving optimization to the next level via enhanced automated storage systems.
     “Special cargo services, including PER-AVI-Express and E-Commerce will drive throughput toward our eventual Phase Two goal of delivering more than four million tons via SmartIST annually.”

Great Free Trade Opportunities

      “The modular design of SmartIST and Istanbul Cargo Village offers great Free Trade Zone (FTZ) opportunities,” Mr. Özen reports.

Top Five By 2023

     Having been a cornerstone in social, cultural and economic terms for hundreds of years, Istanbul with its airline and new airport emerges in 2019 as a brand-new mainstay for the global air traffic.
     Turkish Cargo aims to increase the number of destinations served by direct cargo flights, to reach 150 by 2023.
     The prospect of a place that as part of the grand scheme will land IST and Turkish Cargo at or near the top of world cargo rankings ahead, as a prediction and projection is one thing.
     But this giant new mega cargo terminal rising amidst the once and future trade center of the earth, is perfectly situate as the world travel center gravity point moves to Turkey in 2031 according to a study by the McKinsey Global Institute.

Turkish Megahub

Hub of the World Location

     “It all adds up,” Turhan assures.
     Turkey is located at the central position of Europe, Middle East and Africa.
     “For Gateway Turkey advanced connectivity capabilities also serve developing countries with integration by air, sea, and railways.
     “We have tailor-made special cargo divisions to serve and enhance our unbeatable geographical position in the world.
     “Others may have plateaued or even due to space and other airport-related restrictions have cut capacity.
     “Our great new airport and cargo transfer facility marks the continuation of our program to grow organically by building in capabilities for today, and future demands and needs.
     “One example is how our new gateway operation increases transit cargo operation efficiency with cutting-edge automated operational technologies.”

New IST TowerA Towering Experience

     The cargo operation in the shadow of the exquisite, most beautiful in the world, Air Traffic Control Tower designed by Pina Farina, reveals a vista where on a clear day you can almost see forever, past and present.
     From the towering experience emerges fast-growing downtown Istanbul and its Roman-walled UNESCO World Heritage district, the ancient Sultanahmet.
     In the spirit of what goes around comes around, Turhan reveals that the Istanbul magic carpet ride is taking off in what is among the oldest, still inhabited cities in the world.
     “Our new SmartCargo IST offering will push the bar way up for technology and capabilities, equaling and indeed surpassing every other world gateway,” Mr. Özen promises.

Customer Country

     “Combined with the cargo carriage capacity of Turkish Airlines, that flies to more countries than any other airline, THY flies 84 freighter and 308 passenger destinations. In 2023, it is expected to reach 150 freighter and 350 passenger destinations to maintain our upward trend,” Turhan Özen said.
     “Turkish Cargo 2019 will include substantial innovations in our offering to the global air cargo community.
     “We want our service partners to know that everything we do is aimed at customer benefit and satisfaction.
     “Turkish Cargo is all about the customer.
     “Medical products, that we transport are a good example.
     “These consignments are entrusted to us, repeatedly because our customers are aware that we exert every effort on their behalf handling these vital shipments that may save the life of an individual.
     “I know Turkish Cargo very well and trust that brand to handle every shipment right.”
     “We are constantly monitoring and adapting our offering to meet and exceed market needs beyond expectation.
     “Taking things further, we have adopted some organizational changes, and established a customized system oriented at individuals, that is second to none in air cargo today.”

Keeping In Touch

     “Communication" is the most significant concept for us during the new era, so we consistently work towards a solution-oriented approach to all of our customers,” Mr. Özen declared.
     “Turkish Cargo welcomes the future and cannot wait until tomorrow because our hard work and dedication and love of what we do truly lifts the bar every day.”

chuckles forFebruary 6, 2019

Explining Blockchain

"A blockchain is a distributed ledger database that maintains a continuously-growing list of transactions in the form of ordered records called blocks."
"If you can't explain it to a 10 year old, you don't know it yourself"
– Albert Einstein (attributed, but disputed)

     Clearly, not a lot of people without a substantial background in technology can make much sense from the Wikipedia definition of blockchains.
     Any technologist who wants to explain the concept to a business leader or an investor who isn't very tech savvy would require a simplified version.
     With a nod to Einstein, who supposedly and inadvertently created a framework for such simplification, this is best done by way of a story as below:

Einstein and Tagore

Did I say that? Talking it over—Professor Albert Einstein, author of the Theory of Relativity, calls upon Rabindranath Tagore, right, noted Indian poet and philosopher, in New York, December 15, 1930.

Let’s Go For Ice Cream

     Andrew runs an ice-cream shop in a small town. Bob, who has a hot dog cart, has just deposited all his earnings of the day into the bank and is on his way back home.
     He looks longingly at the ice cream cart, well knowing he has no money left in his pocket.
     Andrew notices this, and offers him an ice cream on credit. Bob offers him two hot dogs in return but Andrew declines, because he doesn't eat meat.

Never on Sundae

     “This sundae is the last one I have. If you take it, I can close up and go home. Just pay me tomorrow,” he tells Bob with a smile and notes down the transaction in his little account book.
     Bob gratefully accepts the ice cream and digs into it.
     He too makes a note in his own account book that he owes Andrew a sum of $8 for the ice cream sundae and sits down on a bench by the road to enjoy the ice-cream.

Put Up Or Shut Up

     The ice-cream shop is about to close for the day, when Charlie the milkman rushes in, and demands his week's invoice of $100 for milk be settled immediately.
     Andrew hands over $92, which was all the cash he had on him.
     Charlie shakes his head, "Andrew, I need the $8 now.
     “This $92 goes straight to my creditors and that leaves me only that $8 for getting something to eat."

Hot Dog An Answer!

     Charlie then turns to Bob and points at his hot dog cart.
     You got any hot dogs left? I'm starving!"
     Bob jumps up in glee, "Oh yes. Shall I give you two? That'll be $8 please." Charlie shakes his head again, "Sorry, I don't have any money left.
     “This cash goes straight to my creditor who is waiting across the road.
     “But they do look delicious!"
     Bob quickly runs over to Charlie and hands him the two hot dogs, before explaining “That's fine. I owe Andrew $8, which is exactly what he owes you, and what you need to pay for these two hot dogs.
     Andrew and Bob both fish out their notebooks.
     Bob strikes off the record of buying the ice cream sundae, while Andrew is more disciplined – he writes "Received" neatly, in small letters next to his record of making that sale on credit.
     Charlie was busy digging into his hot dog to notice all this.
     With a full stomach and a handful of cash, he darts back across the road to settle his other debt with his creditor.

How Blockchain Works

     The above story is about transactions in a mini-economy of three people (if you don't include the creditor, who never actually makes an appearance) in a small ice cream shop.
     Since Bob was there at the right time when the transaction between Andrew and Charlie took place, he was able to help them settle it effectively without any delay.
     Otherwise, the only record for their transaction was their private notebook entries, and Charlie would never be aware of their business relationship.
     Not one, but three transactions would have ended up going unsettled on that day. Instead, on this occasion, all three debts were settled quickly without any cash changing hands.

The Big Picture

     Now imagine if instead of just three people and three transactions, this was a series of one hundred thousand transactions between twenty thousand people.
     That would take a lot of coincidences to be settled on the fly, especially if there wasn't enough hard cash to be spread around.
     And a handful of notebooks (ledgers) wouldn't be sufficient.
     What that situation would have demanded is one huge ledger to record all those transactions; it would have to be secure, easily accessible and dynamically updated to ensure it is continually accurate.
     After all, in such a large economy we cannot assume that everyone trusts each other!
     This is where the blockchain comes in.
     At its simplest, blockchain is a distributed ledger that records transactions in the form of blocks, so arranged and linked to each other in such a way that no modification or reordering is possible.
     The adjective 'distributed' signifies that this ledger is not stored in a single place – instead, once a record originates somewhere, as it did in Andrew's notebook, it is immediately replicated everywhere on the network so as to inform everyone concerned that this transaction took place.
     Even if Bob wasn't present to tell Charlie about his own debt to Andrew, Charlie could have found out about it if it was recorded on a blockchain.

Safe & Sound Deals

     A transaction once entered on a blockchain cannot be deleted or modified – which is akin to saying Andrew can never strike off the debt from his book.
     He can, however, add another transaction that pays off the debt, thus maintaining a zero balance.
     Blockchain history is never erased, especially because it is already replicated and presented to all other participants on the network.
     At the same time, since each and every transaction becomes a record on the blockchain, there is no danger of any party trying to collect on a debt more than once by exploiting lack of information.
     If Andrew had paid off Charlie's debt immediately, then Bob would know instantly, thus preventing any fraudulent attempt by Charlie to get paid twice!

Blockchain Bitcoin

     While they have been in existence for a couple of decades or more now, blockchains gained popularity in recent times with the advent of Bitcoin, the virtual currency that can actually be used in real world business transactions such as buying and selling. Partly on account of this history, most people still consider blockchains to be an underlying technology for banking and finance in the modern age.
     However, as different industries, and air cargo recognize the potential of bitcoin in their business, new and more practical use applications are emerging.
     It is undoubtedly one of the buzzwords of the decade, and possibly the innovation of the century – so pay attention to the Blockchain!
Ashok Rajan, Global Business Head, Airline Cargo Services, IBS

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