Developments and Modernization of Air Cargo.

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Georgina Ball
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1 Developments and Modernization of Air Cargo. Third International AirCargo Forum-2012, Moscow. Pradeep Kumar, Senior Vice President Cargo.

2 MARKETS World economic downturn continues to pose serious challenge for air freight. Exports out of Asia and South America to Europe continue to suffer due to sovereign debt crisis in Europe. High oil prices seriously impact sustainability of flight operation forcing many operators to rationalise various routes. Economies in many countries in Middle East and Africa still show signs of growth, and infrastructure developments are underway with increased spending by governments. This is good news for air cargo. Cargo is a part of trade and trade is part of economy of country. Infrastructure developments in airport, sea port, trucking and transshipment along with coordination/support from various regulatory bodies and authorities are fundamental to facilitate trade and cargo movements within a country and beyond borders. Strong air cargo industry is critical for growth, employment and economic development.

3 TRADE FACILITAITON Governments need to bring together various stake holders in supply chain and work in concerted manner Customs, Ground handlers, Airline, Security to provide seamless movement of cargo. Way forward development of airport infrastructure, embrace automation. Transform from paper intensive to data driven system to become more efficient and create more opportunities with less costs to business community. Availability of electronic information in advance helps Security agencies, Customs and Airlines to collaborate to achieve highest level of aviation security and safety. Customs in various countries already implemented advance electronic information through airline data messaging: US, EU, Australia, New Zealand, India, Nigeria, Ethiopia etc.

4 INFRASTRUCTURE Core Competency is creating distribution and trucking using own aircraft or third party providers. Robust terminal operation and availability of real time information is critical for handling and processing of freight. Dependence on labour intensive documentation and resource based handling results in inefficient processing and cost inefficiencies.

5 More space, more opportunities at the Cargo Mega Terminal

6 Cargo Mega Terminal The Cargo Mega Terminal has fully-automated workstations with increased ground-handling capacity. One of the most technologically advanced cargo terminals in the world.

7 Cargo Mega Terminal Over 1.2 million tonnes annual throughput built on a 43,600-square-metre site (with a total build-up area of 64,000 square meters) 46 truck docks for acceptance and delivery of loose cargo 09 truck docks for acceptance and delivery of intact bridge system 78 Airside ULD entry and exit gate 133 workstations for cargo break-down and build-up 10,000 locations for loose cargo storage 2282 locations for general cargo ULD storage 218 locations for perishable cargo ULD storage

8 First airline in the world To introduce the LD-36 type of ULD To operate the A310 Freighters with side by side 125 x 96 Pallets To design & introduce Cool dollies: preserve the integrity of products during the shipment transit and transfer. To use White Cover: reusable protective cover designed to shield temperature-sensitive cargo from solar heat during transportation. Non-legacy System SkyChain, the evolving logistics management system

9 e-freight Emirates is in the forefront in adopting e-freight as part of its e-commerce strategy. This helps participation and providing advance manifests, FWB and FHL data to Customs in various countries prior to the arrival/departure of flight, allowing Customs to screen, process and allow pre-clearance in many countries. Currently 25% of traffic moving on active trade lanes are e-freight. No paper is generated. Dubai is 100% e-freight compliant. Secure Freight: Availability of data at shippers/consignee level allows security agencies for screening prior to flight departure. Elimination of paper leads to accurate data availability. This removes dependency on resources, enhancing cargo handling and trans-shipment. Automation of various cumbersome and bureaucratic processes helped Emirates to manage the entire movement of cargo on its network and at the Hub in Dubai, which processes and distributes and average of 6300 tons daily. Customers are updated electronically about the status of their cargo on a real time basis.

Key trade lanes are e-freight enabled 6 Ahmedabad 6 Glasgow 6 Munich 6 Amsterdam 6 Gothenburg 6 Nairobi 6 Auckland 6 Hamburg 6 New York 6 Bangkok 6 **Helsinki 6 Newcastle 6 Bengaluru 6 Hong Kong 6

10 Key trade lanes are e-freight enabled 6 Ahmedabad 6 Glasgow 6 Munich 6 Amsterdam 6 Gothenburg 6 Nairobi 6 Auckland 6 Hamburg 6 New York 6 Bangkok 6 **Helsinki 6 Newcastle 6 Bengaluru 6 Hong Kong 6 **Oslo 6 **Billund (BLL) 6 **Al Maktoum International 6 Paris 6 Birmingham 6 Johannesburg 6 Perth 6 Brisbane 6 Kochi 6 Prague 6 **Brussels 6 Kozhikode 6 San Francisco 6 Cairo 6 Kuala Lumpur 6 Seoul 6 Calcutta 6 Leeds (LBA) 6 Seychelles 6 Cape Town 6 London 6 Singapore 6 Chennai 6 London 6 **Stockholm 6 Chicago 6 Los Angeles 6 **Strasbourg 6 Christchurch 6 Madrid 6 Sydney 6 Copenhagen 6 **Malmo 6 Taipei 6 Delhi 6 Malpensa 6 Tokyo 6 Dubai 6 Malta 6 Toronto 6 Durban 6 Manchester 6 Vienna 6 Frankfurt 6 Melbourne 6 Zaragoza 6 Geneva 6 Mumbai 6 Zurich e-freight it

11 Way Forward With a home market of 143 million consumers, rich oil and gas reserves and membership of the WTO, Russia is among the top of the table of the most influential economies. The TIACA Executive summit and AGM in May 2012, and the initiatives by Moscow and Volga Dnepr Group in hosting the event, demonstrates a commitment to progress and to become part of world economic growth. Emirates is currently working with Russian Customs and engaged in proof of concept. We are committed to be part of the e-freight pilot scheme in Moscow. The efforts and direction by Ministry of Transport of the Russian Federation in introducing e-freight is the right step in the right direction.

Denied Boarding Eligibility

Denied Boarding Eligibility Option 1 Denied Boarding Compensation voucher may be used for a single Emirates operated two sector return journey between Dubai and the adjoining list of cities. (OR) Between Australia & New Zealand or