Vol. 9 No. 32                                                               WE COVER THE WORLD                                          Monday March 8, 2010

Vancouver has been the backdrop of a huge global sporting event during the second half of February. On its heels and with fresh bed linen comes another “world cargo symposium” courtesy of IATA, the 4th under this moniker, taking place annually and rotating among the four IATA areas. The winter athletes have to make do with a big event every four years.
This star-studded forum, whose commercial aspect has been known in the past interchangeably as “indaba”, “compendium”, “CargoWeek”, serves as the attraction alongside the otherwise repetitive cargo services and cargo agency conferences.
This is a multi-tiered and carefully orchestrated show with clear demarcation between delegates, executives and those paying to attend the symposium. They do not mix, nor are they intended to. The program includes a separate dinner for cargo committee (heads of cargo) and the Cargo 2000 board while another hosts the air cargo excellence awards presentation in parallel.
The industry meetings start today according to the official ‘roadmap’, followed by the opening plenary Tuesday morning, with the symposium starting Tuesday afternoon, running alongside to the scheduled industry meetings. This pattern continues on Wednesday and Thursday. This way the delegates stay focused to concentrate on the industry meetings while the symposium speakers, moderators and panelists engage those who bring in the money, all with the practiced and studied precision of a triple axel or a double salchow.
The bread and butter of the cargo services conference is mirrored in the event tracks; e-Freight, ULD management, air mail, secure freight, dangerous goods management, time and temperature to name a few. New tracks are the cargo ground handling, legal for non-legal and customs. The opening plenary aims to set the stage for the big question of the day coached in a couple of different ways, but essentially the same breathless ­ “…what must the air cargo supply chain do to get in shape for the future?” and runs through the show.
The economic outlook titled “where is the economy going” stands to be interesting with perennial Brain Pearce, IATA chief economist leading the charge, a duel between Boeing and Airbus in which both would want to win by talking up demand for their wares and lastly, Ajay Virmani (left) Canada’s own CargoJet president and CEO. The second half features MergeGlobal, taking a multimodal view and Mercator, with the “How the air cargo supply chain can bounce back from the current recession to deliver a step change in efficiency and customer service?” It’s always a doozy to hear an IT provider spell it out for the airline cargo folks! The panel has a few executives who can tell a success story ­ Ram Menen always attracts a following.
The mix has improved over time with more stakeholders showing up representing shippers, freight forwarders, government agencies, and various providers, well beyond airlines talking to themselves. The host country is making a strong showing, just as in the Olympics, with Air Canada’s president and CEO and the MD cargo, Lise-Marie Turpin, Transport Canada and the aforementioned Ajay Virmani leading the charge.
Asking questions, commiserating and debating the challenges of the day are what can be expected. The more intriguing matter is what happens after the doors close and the delegates go home to their every-day work?
How instrumental will the valuable time spent at WCS be and how can the outcome of any such forum be truly measured? How does this all really come together and does anybody have the answer? What can realistically be the meaningful outcome of the Symposium?
Stay tuned!

Angela Speaks Out
IATA Cargo
ACI Conflict

Last week Air Cargo News/Flying Typers wondered why IATA WCS is being held in Vancouver this week at the same time Airport Council International (ACI) is holding their big annual air cargo conference less than two hours away in Seattle Washington?
How can people be in two places at the same time we queried?
Well we think we have an answer from none other Angela Gittens-the well respected Director General of ACI who writes:


Dear Mr. Arend,

This is in response to your inquiry regarding the conflict in schedules between an ACI conference and an IATA conference.
My understanding is that ACI scheduled this conference two years ago, checking with IATA first so as to avoid a conflict. Subsequently, IATA changed the date of its conference, creating a conflict.
By that time, ACI had already signed contracts so was committed to its dates.
One can only presume that IATA was unable to hold to its originally-stated dates for reasons outside of its control. It is to be hoped that this will not recur.
Thank you for your inquiry.

Best regards,
Angela Gittens
Director General
Airports Council International
Geneva, Switzerland

Air Canada, since 1936 is Canada's largest airline and flag carrier.
With a new cargo hub at Toronto Pearson International Airport in Ontario completed in 2002, the carrier’s main base is Montreal-Pierre Elliott Trudeau International Airport in Quebec.
Air Canada is the world's 8th largest passenger airline by fleet size, and the carrier is a founding member of Star Alliance.
Air Canada’s cargo division has long had a reputation for service excellence and innovation, something we can attest to dating back to the days of Mike Scullion, who led the charge during the 1970s to the long tenure of Claude Morin who moved from cargo upward at Air Canada.
Air Canada Cargo today also has the distinction of being led by a woman Lise-Marie Turpin.
In fact, Lise-Marie as Managing Director of Air Canada Cargo is the highest ranking female air cargo leader in the Americas.
Lise-Marie Turpin was appointed Managing Director of Air Canada Cargo in September 2008.
She is responsible for all aspects of the cargo business for Air Canada. Lise-Marie was previously responsible for the cargo operation system-wide as Senior Director, Cargo Services. Since joining Air Canada in 1995, she has held a number of management positions including General Manager, Passenger Sales Europe, responsible for all sales generated in Europe, as well as Manager, Passenger Sales France, Spain and the Benelux and Manager Passenger Sales, Quebec.
Prior to joining Air Canada, Lise-Marie held a number of management positions at Air France - Canada in both Passenger and Cargo divisions.
Lise-Marie holds a Bachelor of Arts degree in Humanistic Studies from McGill University.
As IATA World Cargo Symposium 2010 takes off today in Vancouver, we asked Lise-Marie to share some thoughts of what lies ahead for Air Canada Cargo.


ACNFT: What kind of year was 2009 and what lies ahead for Air Canada Cargo in 2010?
LMT: While the economic conditions were challenging for all of the air cargo industry throughout 2009, we did generate very good results in the fourth quarter, proving that the team was able to adapt quickly both commercially and operationally to our new reality.
Our focus was on penetrating new markets and improving service levels. In the last half of 2009, we implemented a number of commercial and cost containment initiatives. One of the highlights of the year was our ability to find alternative sources of revenue and traffic despite the significant downturn in global activity.
We focused on the strength of our network to generate traffic between markets we had not previously pursued. We will continue with the same focus in 2010.
ACNFT: What do you consider the most pressing challenge for Air Canada Cargo in 2010?
LMT: We experienced a significant turnaround in the last quarter of 2009 and are much more optimistic about 2010. However, looking toward the rest of this year, we expect there will be continued pressure on yields as shippers continue to search for low rates. In addition, we expect global cargo capacity to shift more readily in order to capitalize on those markets showing rapid recovery. As an organization, it will be critical to be nimble and quick!
ACNFT: New destinations and services offered?
LMT: This summer, Air Canada will launch new services between Toronto and Copenhagen as well as Athens, Barcelona and Brussels via Montreal. Further, for the first time, we will launch a non-stop service between Calgary and Tokyo.
In terms of services, we have been working on enhancing AC Cool Chain specifications with several shippers and forwarders to ensure we fully answer their needs. While we currently do carry temperature controlled products, we are developing a broader range of temperature controlled solutions.
ACNFT: What are you doing differently in 2010 than before the financial crises?
LMT: In 2009, we took advantage of the economic downturn to review our organizational structure and to invest in programs to further the development of our commercial teams. We developed and implemented a fresh approach to key account management; introduced new tools with which to manage revenues and capacity. In 2010, we expect to bank on this investment. We are also looking to foster an entrepreneurial approach to business throughout the corporation. Life as we knew it will never be the same again. We must be quick to adapt and grow: this is our new reality.


When the phone rang, Air Canada answered the call sending help to Haiti dispatching several relief flights (so far) staffed with volunteer employees who have rallied together to get much needed supplies to the victims of the terrible earthquake there.
Breakdown of cargoes shipped include medical and pharmaceutical supplies, water, food, tents and other needed items such as generators that were packed solid in the bellies and passenger cabins of AC A330 line aircraft.

ACNFT: What must the combination air cargo industry do to insure its future?
LMT: It is quite clear that the air cargo industry must be proactive to remain in step or ahead of emerging trends. There are numerous regulatory impositions on the industry resulting in the need to work together in order to find innovative solutions. Because we are part of the supply chain, together, we must continue to hold constructive discussions on possible changes and improvements to our processes and systems. This includes areas such as performance measurement, regulatory compliance and now, more and more, on environmental plans. As an industry we must remain relevant by offering products and services well adapted to the needs of our customers. We must continue to add value.
ACNFT: Delegates from all over the world are meeting at IATA Vancouver this week. What would you like them to learn about Canada/Air Canada Cargo that they may not already know?
LMT: I would like to highlight Canada’s excellent geographic position rendering Air Canada’s network very attractive and effective. This is further supported by a relative ease of doing business especially for traffic connecting through our Canadian hubs.
ACNFT: How did you come to choose an air cargo career? How long have you been in air cargo and at what level did you begin? Given the choice would you choose air cargo for a career again?
LMT: My entire career has been spent in the airline industry where I have worked both on the passenger side as well as in cargo. Wherever I have been, I have been passionate about what I do. The advantage of cargo is the immediacy of the business and the relatively small community in which we find ourselves.
ACNFT: What are the challenges of being a top woman executive in air cargo today?
LMT: The challenges are the same as for anyone in a leadership position.
ACNFT: Do you think air cargo would benefit by encouraging more woman to aspire to executive positions? Why?
LMT: Any industry will benefit by encouraging and supporting any talented and capable person to develop him or herself with a view to a leadership position. As leaders today, it is our duty to plan for the future and ensure that the next generation is ready to step in when needed.
ACNFT: What is the single most important thing on your mind as 2010 progresses?
LMT: Seeing through the strategy that was launched in 2009 and maintaining the team’s momentum.
Geoffrey Arend

 
An Air Cargo News/FlyingTypers Original

Our exclusive series “Women In Air Cargo” asks our readers to send some words and a picture about somebody that you know who is female and has made a difference in air cargo.
This effort is not limited to just success or failure, it is meant to raise awareness about the legions of unique women who in most cases are unsung heroines in the air cargo industry.
So write and we will share your story with our readers around the world.

Women In Cargo Hall Of Fame


Tulsi Mirchandaney


Olga Pleshakova


Lucy Ntuba


Lina Rutkauskien

 



Tammy Zwicki &
Monika Lutz

Grimm
Is Happy

Grimm Is Happy . . . Gerrit Grimm, Emirates SkyCargo Manager in Hamburg, Germany mugs for the camera as EK goes paperless HAM to Dubai—a historic first.
Hamburg is Emirates’ third paperless gateway in Germany joining Frankfurt and Munich. Other paperless SkyCargo gateways include Emirates’ hub in Dubai, and London, Paris, Hong Kong, Singapore, Seoul and Sydney.
By the end of 2010 80% of SkyCargo gateways will be paperless, the carrier said.

Click To View Aircraft Landing At YVR

British Columbia is attempting to build what it calls "North America's most competitive and efficient transportation system". Through the Pacific Gateway Program, the national government and industry are building reliable transportation networks and supply chains from the Pacific coast across North America.
Pacific Gateway partners have taken concrete action to increase the reliability of the Pacific Gateway supply chain.
BC’s ports and railways are setting performance commitments. For example, Port Metro Vancouver, together with railway and terminal operators, has instituted performance standards covering container stays, weather related or operational backlogs, and a strategic reserve of railcars.
The Prince Rupert Port Authority and Maher Terminals have also instituted performance standards that include having import containers loaded and moving within 3.5 days.
Recently concluded labor agreements were designed to ensure a high level of labor stability at Pacific Gateway ports, railways and throughout the supply chain through 2010.
Pacific Gateway government and industry partners are implementing programs to help ensure current and future labor needs will be met, including:
New apprentice and training programs
Immigration policies that attract skilled workers
More effectively targeted foreign worker programs.
The national Government of Canada and the Government of BC are committed to keeping goods moving and have quickly ended past labor disruptions.
In addition to port, rail, road and infrastructure expansion to increase capacity, other efficiency measures to reduce bottlenecks and congestion, and enhance competitiveness include:
Efforts to develop smart systems that reduce commercial vehicle stops at weigh-in stations.
A Government of Canada commitment of over C$430 million to more efficient border crossings, as well as increasing the number of border security and marine ports officers.
An increase in truck gate hours at major ports.
A well-established supply chain serving Asia and Vancouver and beyond to all major Canadian and U.S. economic centres.
Port Metro Vancouver is Canada’s largest, with 28 major marine cargo terminals and numerous bulk and break-bulk shipping lines and agents in addition to a diverse mix of distribution, warehousing, consolidating and deconsolidating services.
A safe, year-round, all-weather, naturally deep harbor on Canada’s Pacific coast, Vancouver is just north of the U.S. border, and connected to an extensive network of roadways, three transcontinental railways, and border crossings.
Port Metro Vancouver ranks first in North America in foreign export shipments, and second on the west coast of the Americas in total cargo volume. In 2008, Vancouver handled over 115 million tons of cargo, including 2.5 million TEUs. The port reportedly moved 120 million tons of total cargo in 2009.
China is the Port Metro Vancouver’s top trading partner for import tonnage, while Japan is the leading trading partner in terms of exports and total throughput tonnage.
In January 2008, the Vancouver, Fraser, and North Fraser ports amalgamated to optimize service and efficiency at all deep-sea and river-based port facilities. Now with a broader scope, Port Metro Vancouver is in an even stronger position to serve as a world-class gateway.
Public and private sector infrastructure investments totalling C$4.2 billion will increase the shipping capacity of the Port Metro Vancouver to six million TEUs by 2020.
A C$400 million third berth at the Deltaport facilities, located atRoberts Bank, 35 kilometres south of Vancouver's inner harbour, is operational since fall 2009.
A second container terminal at Roberts Bank, adding a new three-berth facility, is currently in procurement.
To accommodate this increased container and bulk traffic, extensive road and rail improvements totalling C$10.7 billion will reduce congestion, eliminate bottlenecks and add critical capacity.
Vancouver and Prince Rupert are the closest North American ports to Asia Pacific They are ice-free year-round. Prince Rupert is less than 100 hours from Chicago and has the shortest direct rail route to the United States' large midwest and eastern consumer markets.
According to one key customer, Dave Bedwell (Executive Vice President of COSCO), "Prince Rupert has become a great success story for a variety of reasons, reasons that may not ever be accomplished by the more already established container ports and terminals. Probably the one most significant reason has been the collective banding of the local business community. From the Mayor of Prince Rupert, the Chief(s) of the first nations, right down to the local corner store owner, the support of the communities new life line has 100% buy in. Small communities always seem to be able to accomplish feats that larger city dwelling container terminals and ports cannot. The port itself offers a deep water safe harbor that allows easy access for container vessels to safely berth with high energy longshore labor working container vessels at warp breaking productivity levels. CN rails commitment to provide consistent and timely rail service has been as advertised. Rail cars anxiously await containers and are immediately expedited to North American shippers’ final desired destinations. Prince Rupert offers a consistent process that provides exactly what an ocean carrier is looking for from their valued business partners. So, that all said, if it is all good for the ocean carrier then how then can it not be good for the shippers?"
The new state-of-the-art container port at Prince Rupert is opening up a world of opportunities. Building on Prince Rupert’s natural advantages including its deep harbor, strategic location of up to 2 days sailingtime closer to Asia, and superior transportation connections into major North American markets, Prince Rupert is poised to become the new express route between Asia and North America.
The new facility will help to reduce congestion at existing West Coast ports and create major economic opportunities for Canada. The new container terminal will have an annual capacity of 500,000 TEUs and be capable of handling the largest container ships of tomorrow. Future plans feature the expansion of the terminal to reach an annual capacity of 2 million TEUs.
The new C$170 million Prince Rupert Container Terminal ­ Phase 1, with a capacity of 500,000 TEUs, offers Asian shippers a timely, direct, congestion-free corridor to Chicago and other major American and Canadian markets.
The Port of Prince Rupert’s proximity to Asia, with the second deepest natural harbor in the world, and direct CN Rail connections to Chicago, allows a container shipped from Asia via Prince Rupert to arrive in Chicago at the same time it would be leaving LA/Long Beach for Chicago.
CN trains leaving Prince Rupert provide fifth morning availability of containers in Chicago and sixth morning availability in Memphis ­ performance that’s unparalleled in North America.
Phase 2 of the Prince Rupert Container Terminal, with an additional capacity of 1.5 million TEUs, is projected to open in million. Terminal 2, with a capacity of an additional two million TEUs, is expected to be completed by 2020.
Prince Rupert also offers logistics services, including warehousing, container stuffing and reloading and short-sea shipping ­ services fully integrated into primary terminal operations to ensure continued velocity, dependability and flexibility for shippers.
To further increase reliability and efficiency, CN has made significant investments in the Northern Corridor rail line, including extended sidings, upgrades to signal systems and increased bridge and tunnel clearances to accommodate double-stack container cars.
Prince Rupert is not just adding capacity; it is also offering a new way of connecting Asia to North America.
CN has established a grain transload operation in Chicago, permitting efficient containerization of grains for export, in otherwise empty containers, to overseas markets. The new C$6 million Chicago terminal augments a C$20 million BC forest products intermodal terminal/distribution center in Prince George and a C$4 million Alberta grain transload terminal ­ new facilities to prepare container loads for Asian markets.
In addition to containers of cotton, agricultural products and other merchandise from the U.S. Midwest, Prince Rupert can ship seafood from BC and Alaska, aluminum and forest products from Northern BC and Alberta, and specialty agricultural products from Canada’s four western provinces.

ROAD: An all-weather highway network makes transporting goods to and from North American cities reliable. Road investments totalling C$7.1 billion will reduce congestion and ensure the efficient flow of goods to and along Canada’s transcontinental highway, down to the U.S. border, and throughout the Vancouver area. This includes a C$307 million investment to reduce road traffic congestion along a key rail corridor, including nine road/rail separations, traffic management measures and rail infrastructure improvements.

RAIL: Canada's transcontinental railways serve ports on the Atlantic, Pacific and Gulf coasts. They also link with U.S. and Mexican rail systems. Canadian Pacific Railway, CN and BNSF are investing billions of dollars in major capacity and efficiency upgrades near Vancouver and along their routes to North American destinations. In addition, innovative operational agreements have been reached between Canadian Pacific Railway and CN and between CN and BNSF to maximize capacity using existing infrastructure in and near Vancouver.

AIR: Vancouver International Airport (YVR) is a major air cargo airport and the second largest international passenger airport on North America's West Coast.
Vancouver International Airport has frequent and convenient connecting flights to major centers in Asia and all across North America. A C$1.4 billion airport expansion program is underway to add capacity for five million new passengers, for a projected total of 28.4 million passengers by 2020. Four new gates in the international terminal building are now open. Expansion plans call for the construction of a new international building with up to 25 gates. A new C$1.9 billion rapid public transit line connecting the airport to Vancouver and the Lower Mainland opened in August 2009.
In December 2006, Canada declared its intention to pursue bilateral open skies agreements granting liberal access to carriers of both nations serving the other internationally.
In 2009, Canada’s first open skies agreement with an Asian nation was concluded with the Republic of Korea. In 2010, the national Government of Canada is pursuing liberalized bilateral air agreements withAsia-Pacific nations to encourage competition, increase capacity, and allow for more efficient and flexible flight agreements.
Gordon Feller

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