Logistic 2006 Top China Conference

      Transport Logistic China confirmed its leading position as a platform for the latest developments, technologies, strategies and services in the transport and logistics industry.
      Following its premier in 2004, the second international trade fair for logistics, which took place from September 19-22, 2006 in Shanghai, China, attracted around 9,000 visitors from 81 countries.
      Part of this trade fair was the Air Cargo China exhibition and conference that showcased the international air cargo industry.
      “We wanted to offer the air cargo industry and their potential logistics partners a platform to meet and exchange experiences and information,” stated Eugen Egetenmeir, Deputy Managing Director of Munich Trade Fairs International Group, the organizer of the trade show.
      At the beginning of this two-day Air Cargo China conference, Mrs. Katharina Hamma, Executive Director, Capital Goods Shows, Munich Trade Fairs International Group, delivered a speech titled:
      “China's Air Cargo Development Program Planning for the Next Decade.”
      ”From now on till 2020, average growth rate of China’s air cargo market will be 16 percent year on year, estimated by FIATA.
      “This is a great opportunity for the world.
      “China will further release constraints over aviation industry, encouraging more companies to join and compete in the air cargo market.”
      “The Sino-US Aviation Treaty signed in 2004 is a benchmark, and we expect more similar agreements would reach between China and other countries in the world.”
      Mr. Zhang Zhifeng, General Manager of Cargo Department, China Southern Airlines, shared his opinion about the air cargo development of China.
      “In the past ten years, China’s air cargo volume is tripled to 6.33 billion tons, excluding Hong Kong, Macao and Taiwan.
      “However, a non-negligible fact is that international air cargoes handled by domestic carriers has decreased in share, from 65.6 percent in 1995 to 23.8 percent in 2005.
      “This partially results from the insufficient capacity of domestic cargo freighters.
      “Until now, none of the domestic cargo carriers owns a fleet more than 10 all-cargo freighters, and the total number of freighters is much smaller than that of some international giant cargo carriers.
      “A more fundamental reason is that Chinese cargo carriers lack international bases, to collect cargo sources, provide ground services and distribute goods. The Sino-U.S. flight course is a case in point:
      “Chinese cargo carriers run in loss, while their U.S. counterparts gain a lot.
      “A better development in international cargo market for domestic cargo carriers relies on solving the two major problems above,” Mr. Zhang said.
      Mr. Reto R. Hunziker, Vice President of Sales & Marketing, Jade Cargo, gave a speech titled “Jade Cargo-Connecting the Pearl River Delta to the World.”
      “Shenzhen government has put the logistics industry on the top of the government agenda.
      “Jade Cargo will enjoy favorable development conditions.
      “Jade Cargo’s target regions include intra-Asia trade lanes, traditional air cargo markets in Central Europe and a few U.S. destinations.
      "There are two extreme views on how to make profit in the air cargo industry, premium yield focused carriers, which believe profit is generated by premium yields, and no frills cargo airlines, which believe profit results from lower than average cost.
      “But Jade Cargo positions itself as a ‘focused all-cargo carrier’.
      “Not relying on brand, innovation or differentiated product portfolio, but on economical fleet size, cargo quality and processes, and network Jade is the air cargo resource for the future.”
      Dai Steve, Vice President of Airport City Logistics Park in Beijing, Mr. Othman Aljeda, Vice President of ARAMEX International, Michael Proffitt, Chief Executive Officer of Dubai Logistics City, United Arab Emirates and other executives of both domestic and international cargo carriers attended the conference with accompanying presentations.
      “Transport Logistic China 2008 is scheduled from June 17-20, 2008 in Shanghai,” Mrs. Katharina Hamma told FlyingTypers.
      “We expect next show to be even bigger.”
(David)