Preparing a story about Ian Ahern, Managing Director (and pioneer) of EMO Trans Australia, we are instantly struck by his bearing, sense of place, force in fact, and straightforward answers:
     “Where is your CV?” we ask.
     “I am afraid I don’t have one—Jo (Frigger, CEO of EMO Trans) might start to worry if I did!” he smiles.
     “I trained in medical pathology … decided I would bore myself to death looking at 40 more years of that.
     “I went to the meat industry, where I steadily had more and more to do with logistics and sales. From that place in my life, it was a very short journey into the sun at EMO Trans.”

Half century of EMO Trans

     “EMO Trans has always been a progressive company.
     “Celebrating the EMO Trans 50 Anniversary last year with our global colleagues I believe provides a good focal point, which allowed the management team to embrace the concepts that made the company historically successful. It also created a launch pad for redefining the future. The new focus on expansion is a case in point. At this point in the history of the company, it would be easy to sit back and reflect.      “Nothing could be further from the truth, however, with the company going through the largest program of growth in its history.”

A Matter of Priorities

     “With marketing, (as opposed to sales), we look to provide awareness to the marketplace in order to provide a platform to highlight our strengths and advantages in specific verticals with membership of industry bodies, attendance to trade shows, advertising, and a heavy rotation of sales calls.
     “This is not enough, however.
     “t is essential to be able to provide real proof that your abilities are not only as good as you claim, but that you stand out far ahead of the industry norm.
     “The best marketing tool is a satisfied client who will recommend you in the market.
     “Therefore, your highest priority always has to be excellence in the provision of cost-effective services and advice to your clients.
     “It is not all about clients, either.
     “You cannot underestimate the value of a solid and loyal relationship with your service providers.”

Know Who Your Friends Are

     “The airlines are not your enemies, their advice and help is an integral part of the success of any forwarding company.
     “Loyalty absolutely needs to work both ways, and there are ‘horses for courses,’ but building friendships and creating an understanding between both the airline and the forwarder cannot be underestimated.”

Air Cargo Ahead In 2016

     “The primary concern is that when the fuel price increase comes (and sooner or later it will), it will impact the airline industry as a whole.
     “The industry has strength, but not in any depth.
     “The concern is that a significant number of airlines will find survival impossible at that time.
     “This will heavily impact on space and therefore cost rises over and above that of the fuel cost itself.
     “Adding to this problem will be the viability of ‘freighter only’ services and the impact of further reduction in capacity in that sector.
     “This is particularly troublesome in this region as there are no land based freight options into the South Pacific, and sea freight is at least a 40-day transit from the major the major production blocks of Europe and the U.S.”

Cast Back To 2015

     “The Australasian economy has been hit by the downturn in commodity and oil pricing.
     “Furthermore, there has been a significant and sharp fall in the value of regional currencies against the U.S. dollar.
     “Given that the market for forwarders here is largely import based, this can impact consumers, forcing a reduction in spend and the flow on effects through the logistics chain.
     “Yet we have seen not only resilience in the face of these factors, we have indeed seen growth in some business sectors.
     ‘The low oil price is supporting this optimism in the domestic market to some extent, but that said, in a backdrop of global discussions on a decline in Chinese growth, and the factors above, the buoyancy in the market is, to a degree, unexpected.”

Dealing With Change

     “To some extent we insulate ourselves from erratic changes in the market by way of our long-term client (and service provider) partnerships.
     “These partners are strong, resilient companies who, like ourselves, are mid-sized and hold trusted relationships based on service and honesty.
     “That said you must always be on watch for new trends in business.
     “When these trends appear, you must be able to make fast management decisions in order to position yourself at the forefront in the development of new products to cater to these market trends.
     “Finally and probably most critically is investment in leading-edge IT systems.
     “As we all are aware, margins are ever thinner, competition is ever greater, and managing overheads critical to the survival/success of any logistics company.
     “Very often the primary focus for IT is based around tracking and tracing to the client.
     “True, this is important, but this information realistically comes as a by-product of a good IT system—one that provides the logistics provider with accurate reporting data by which good business decisions can be made.
     “Modern systems are also based around minimizing staffing levels required to enact mundane tasks (such as data entry).
     “With personnel costs the major expense to any operation, this is an area where the smallest savings can have a large impact.
     “That is not to say that we want to get away from personal one-on-one relationships with our clients.
     “On the contrary, this is the most important facet of our company/client ‘experience.’ Good IT enables our management and staff, thus allowing for more time and better information for our team to talk with both service providers and clients, enhancing the relationship for all.”

Meet Ian Ahern

     A common mistake whilst talking to this most literate spokesman of transportation is thinking that his accent places him (to the untrained ear) as an Australian.
     Ian, who constantly pays all due respect to anything Australian, was in fact born and raised in New Zealand.
     Asking him ‘What makes New Zealand great?’ should be followed with the admonition ‘Don’t get him started!’
     “Everyone knows of New Zealand’s spectacular scenery, which it certainly has.
     “But really it is the attitude of the people . . . innovation and a self-belief that belies the small population size and remoteness of the country itself.
     “New Zealanders are a diverse and interesting lot with reach far beyond our shores . . . think Burt Munro (the world’s fastest Indian), Bill Hamilton (who invented the Jet Boat), and Richard Pearse (contemporary of the Wright Brothers).
     “All I think are fine examples of the type of person the country develops.
     “Mix those folks with the likes of Sir Edmond Hillary (Everest), All Blacks (World Champion Rugby) or being in the top 12 countries for Olympic medals per head of population (the U.S. comes in around number 40), New Zealand adds up to a nation of people that truly ‘can do.’”

Time Off For Certain

     Ian, of course, has a tongue-in-cheek answer when it comes to the question of what he does to relax:
     “There is no relaxation to be had in the area of airfreight.
     “As we all know, air cargo is an industry that never sleeps,” Ian laughs.
     “Having my wife Yulia involved (and very dedicated) in the company, there aren’t too many hours at home that aren’t involved around EMO Trans in some way or other.
     “Weekends therefore form an important part of recharging.
     “We have a well set up yacht moored close to home on which we enjoy spending weekends away, and a 1957 Thunderbird ‘Sunday’ car for getting out of the city.
     “We enjoy scuba diving as well, although that needs to be a tropical pursuit. In short we always find things to do, and are never still for very long.
     “I am immensely proud that my daughter Christie is heading to University for veterinary studies in New Zealand.”
     He notes that amongst the Aherns' most cherished moments outside of air cargo was their last trip to Vavau in Tonga (paradise on earth) and “the whales that you swim with (the only place on earth where you can legally do this).”
     “I am lucky to work with a great team of managers that allow me to spend time out of the office (either work related or on holiday).
     “Once a year we go to that small island in the Vavau group in Tonga.
     “It is about as remote as you can get on earth.
     “The island is owned by a very special couple and it is very small—only 4 couples stay at any one time.      There’s sun, sea, fishing, diving, and the most special part, actually swimming with the aforementioned humpback whales.
     “Vavau is the only place that we are aware of where this is possible,” Ian said.

If Not In Air Cargo?

     “The short answer would be to retire . . . but boredom doesn’t sit well with me.
     “Honestly, I don’t know (or particularly mind) which industry, so long as it is challenging, fast moving, and provides a feel-good factor.”

Fitting Into The Global Market

     “As we are so remote from the global market in Oceania, and since the 40 million people that live across this region do not form a major trade block (North Asia/North America/Europe for example is measured in populations in the billions), airline services to the region are quite firmly tourism/pax centric.
     “Following on from the Sydney 2000 Olympics, we saw major changes and reductions in the airlines servicing the region. There was a swing away from traditional European/U.S. carriers (with the exception of BA and to a lesser extent United, most of them have now ceased operations below the major Asian hubs of HKG/SIN/BKK) leaving the Asian (and more recently, the large Middle Eastern) operations to service the region in conjunction with Qantas/Air New Zealand and Air Niugini. Freighter services also significantly reduced over this same period. Freighters now omit BNE, ADL, and PER.
     “Of course, the remote nature of the region means long transit for liner services, therefore there is no shortage of pressure on inbound cargo space, and as such pricing for space is firm (also due to the distances).
     “This situation is not helped by the comparatively small outbound volume, which would normally allow cost offset.
     “All of those points given, we are serviced effectively in the area and rarely struggle for space allocations. The rise of the Middle Eastern airlines has provided the largest positive impact. This benefit is probably felt most in New Zealand where, due to parking space restrictions in SYD means 3 EK 380’s spend each night in AKL.
     “In the next 5 years, SYD will have a second airport (albeit a distance from the city itself). Exactly how this will be serviced, and its role with cargo, is yet to become clear.”


Exceeding Expectations
     “We are a company that remains true to its roots; that is relationship driven, innovative, fast moving, and strong. A company that will always be a group of people who interact personally with suppliers and clients. A company that embraces those historical values mixed with significant development in cutting edge IT systems, a globalized vision, and approach to enhancing specific verticals within industry groups, and a determination to lead the industry rather than follow it.”

A Matter of Virtues

     “The one word answer in my view is ‘Care.’ All staff members must care for themselves, their colleagues, and their clients, then positive results will flow for that company, clients, and suppliers.
     “Basically put, if you have respect you will go the extra mile to learn, understand, respond, and provide results above expected in each facet of the role that is entrusted to you. This philosophy cannot be taught to an individual. The challenge as a manager is to find individuals and put together a team that have this inherently. All other skill sets can be taught.
     “From my point of view, this means that the best thing that I can do is do my job with the same care and do it well. Be available, be responsible, and be the best that I can be. Earn the role that is entrusted to you, then you can hope to provide some inspiration for others to share that culture.”

View Toward Better Air Cargo

     “There needs to be a realization globally that we need the aviation industry and that the industry as a whole needs to be financially resilient in order to survive.
     “The fact is that one banking corporation can post more profit in 12 months than all global airlines combined, and that does not point to long term resilience.
     “Capital requirements are enormous, there are pressures from wildly fluctuating fuel costs and costs associated with large levels of staffing, we have high maintenance overheads—and that is without speaking of security and insurance costs associated with acts of terror. All this, and yet there remains huge pressure from the market to provide ticket prices that are in real terms lower than they have ever been in history.
     “There needs to be awareness from both within and without the industry that pricing ‘brinkmanship’ is not a sustainable model,” Ian Ahern assures.
Geoffrey

     Air cargo stakeholders all across India are hoping that 2016 will be the year when air cargo will be viewed not merely as a money-spinner, but also as a separate entity with as much respect passenger services command.
     That hope comes from government moves to boost cargo.
     The Ministry of Civil Aviation (MoCA) and the Airports Authority of India (AAI) have initiated programs that will help the growth of air cargo—both domestic and international—in the country.

RK OK’s Growth

     Talking to ACNFT, Chairman R. K. Srivastava said he was confident that the steps to improve cargo handling would usher in development in regions untouched until today, and that these initiates would also facilitate trade.
     One of the first moves by the government that will help cargo is the establishment of a cargo hub—the first one—in Chennai.
     The airport authorities have given the charge to RITES Limited (a government of India enterprise that has experts from engineering and management) to prepare a Detailed Project Report (DPR) on how the airport could be turned into international air cargo hubs (according to the AAI, the Ministry of Civil Aviation has proposed creation of air cargo hubs at the six major airports: Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad airports).
     The reports are expected later this month (January 2016).
     While Delhi airport is privately managed and operated, Chennai is the only metropolitan international airport under the management of the AAI.
     The annual handling capacity of the airport is 1,102,373 MT and in 2014-15, it had handled 303,904 MT.

Looking For Clear Cut Policy

     Meanwhile, air cargo stakeholders are also looking forward to the release of the much-awaited National Civil Aviation Policy.
     It is hoped that the government will, in all likelihood, give ‘infrastructure’ status to air cargo provided that all related support facilities operate on the airport.
     If that happens, air cargo establishments would receive tax benefits under Section 80-IA of the Income Tax Act, which provides a 10-year tax holiday for infrastructure projects.
     Chairman Srivastava said that since there was “enormous potential for growth of air cargo in India, it is our endeavor to take advantage of the situation by providing cargo facilities even at second-tier cities in India, which should also meet the principles of hub and spoke for overall development of all regions in India.”

AAI To Handle Cargo

     AAI, he said, had planned to start handling domestic cargo “in a full-fledged manner, which will also integrate the far-flung areas and regions for development of air cargo, thus facilitate trade in the process.” Accordingly, he said, “24 airports across the country have been identified for this purpose. 
     The objective,” he said, “was to create the basic infrastructure at AAI airports having potential for air cargo growth by creating Common User Domestic-cum-Cargo Terminals.” 

Cutting Dwell From Hell

     Also very large on the agenda is an effort by the Air Cargo Logistics Promotion Board (ACLPB) to create a detailed, workable plan to reduce dwell time of air cargo from ‘aircraft to truck’—first by less than 24 hours by December 31, 2016, then down to six hours by December 31, 2017.
     Perhaps what is important to note is the decisive change in the thinking of the AAI. Srivastava pointed out that AAI “firmly believes that an open and constructive dialogue between global and national entities and between industry and regulators will lead not only to mutual learning and understanding, but to a leaner, more agile, robust, effective, and secure processes.”
     This would, in turn, boost the economy and better the living conditions of the people. 

Other Moves

     Quite a few provincial governments have sent in their objections to the Draft National Aviation Policy.
     The States of Maharashtra (which includes Mumbai airport), Tamil Nadu (with Chennai Airport), Rajasthan, and Odisha have demanded that the policy should do away with one of the provisions that states that international and cargo airlines can only land at the six major airports.
     In fact, states like Odisha and Rajasthan have asked why the six airports should get preference.
     Though no official reaction to the objection has come from MoCA, those who have been handling the policy have said that there were objections when the provision—that airports at Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru would be the international and cargo hubs—was being included in the draft policy.
     After the objections that have been raised by the States, the provision would be deleted totally because there could be no discrimination between the states especially when a number of airlines have been asking for rights to touch more Indian cities. 
Tirthankar Ghosh

     ‘Play me Hearts and Flowers,’ as the saying goes but no doubt in about a little over two weeks, the order of the day will be romance as an early indicator (along with pitchers and catchers showing up for Spring Training in Baseball) that a new season of romance and hope is tipping off.
     But we wonder what the season of love means to air cargo?

     Nabil Sultan at Emirates SkyCargo loves everything air cargo, including thinking about it and sharing his thoughts as well.
     Witness the SkyCargo Divisional Senior Vice President as a guiding force, ramping up capabilities and sales for all manner of perishables that now account for an exponentially growing amount of business at the Dubai logistics powerhouse. With that most romantic of holidays wavering like a bright, red beacon, the impact of Valentine’s Day on air cargo should never be underestimated.
     “Valentine’s Day, for all cargo operators, is very important.
     “For Emirates SkyCargo, volumes of flowers, especially the roses we ship everywhere, have shown exponential growth. In fact, we have had to operate extra charters just to cater to our customers’ needs,” said Nabil Sultan.
     With several interconnected markets involved, Valentine's Day becomes a hugely coordinated effort for air cargo, with “Kenya and other flower producing areas” shaking out as the largest, most involved markets in the mix.
     “From these locations, we transport the flowers to the auction markets in Amsterdam, and then on to all over the world.
     “We do also tend of get a fair amount of direct to market flowers, too.”
     The movement of perishables is never a simple business, but Emirates SkyCargo has been handling delicate, time-sensitive materials from the very beginning.
     “Perishables and cargo requiring temperature control have all been a big part of our business right from the start of the airline.
     “We are committed in this area to ensure that we provide our customers with the best in the industry. For example, at our dedicated freighter cargo facility, Emirates SkyCentral in Maktoum International Airport, we have invested heavily in state-of-the-art equipment and technology in technology, ranging from ULDs, cool dollies, and special covers to cool/cold storage facilities to ensure the integrity of cool chain throughout the time that the cargo is in our custody.
     “We have storage (cool cells) for our ULDs in our PCHS (pallets and container handling system). All these are housed in a large dedicated cool/cold storage facility that can accommodate high volumes of cargo.
     “We work with the customer to better understand the requirement for specific commodity and tailor a solution for the same.
     “About 13 percent of our business cargo falls into the temperature sensitive category.
     “At Emirates SkyCargo we have empowered an entire dedicated section that is involved in research and development, working with various experts/equipment manufacturers etc., to help create equipment/processes which will cater to our current and future requirements to support this type of traffic.”
     But with time- and temperature-sensitive cargo, a ‘one size fits all’ model doesn’t apply.
     “Emirates has different solutions for different temperature ranges.
     “We encourage/facilitate the Active Containers like Envirotainer for commodities requiring transportation between 2-8 C, and white covers for 15-25 C range.
     “Cool Dollies on the ground are utilized for highly perishable commodities.

“Environmental responsibility is a core value of the Emirates Group,” said Emirates Group in a just released report highlighting fleet renewal.    “In 2014-15 (April 2014 through March 2015) Emirates added 24 aircraft including our 50th A380 aircraft and 100th B777-300ER,” the carrier said.    “We also retired 10 older aircraft maintaining the average age of our fleet at 75 months—about half the industry average of 140 months,” the report continues.    Emirates Group said that it employed 84 thousand people serving 144 destinations with 232 aircraft and carried 49.3 million passengers. More Click Here.

     “The Emirates freighter fleet has four different zones which can be individually set for maintaining different temperatures… and many other initiatives are deployed for customizing the tailored processes.”
     There are several markets around the world with an interest in transporting sensitive cargo—pharma for India comes to mind as the most prevalent currently, but Emirates has a keen eye focused on all avenues opened by perishables.
     “India is obviously a large market leading the world market with its pharma industry. India is also a key player in production/export of fruits and vegetables.
     “Africa/Far East/Australia, Latin America all are growing markets for our advanced temperature controlled transportation services.
     “In fact, this is true for every market, including right here in the Gulf and Middle-Eastern region.
     “I expect perishables growth to continue; in time it will account for about 30% percent of SkyCargo’s business,” said Nabil Sultan.
     Sounds fresh to us.
Geoffrey/Flossie

Vol. 15 No. 7
Regarding A Frozen Weekend
From Phlat To Phat
The Art Of The Move
Chuckles for January 25, 2016
The Wow Factor
Pumping Traffic for January 25, 2016