IN BRIEF, THE LATEST AIR FREIGHT INDUSTRY NEWS.
K&N cools San Juan
Logistics giant Kuehne + Nagel has added San Juan, Puero Rico to its pharma network, offering temperature-controlled warehousing space for handling and storing temp critical products.
The San Juan facility offers cold storage from 2° to 8° Celsius, dry ice and gel pack capabilities to cool down temperature-critical shipments in transit, GDP/GXP best storage and distribution practices, 24/7/365 proactive monitoring with active sensors to monitor temperature, voltage and GPS position as well as web-based shipment and temperature visibility via KN Login.
“With the new facility, we expand our KN PharmaChain footprint to now over 150 global fully GXP compliant stations”, said Bob Mihok, President and CEO Kuehne + Nagel North America.” He went on to say: “Broadening the scope of our San Juan operation confirms Kuehne + Nagel’s commitment to exceeding the logistics needs of our global healthcare customers, many who have operations in Puerto Rico.”
The Switzerland- headquartered company has been in Puerto Rico since 1999. Its new facility is just one mile from SJU - Luis Muñoz Marín International Airport.
FRA facing price war
Following Ryanair’s announcement to start operations in Frankfurt, supported by substantial discounts by airport operator Fraport AG, the Board of Airline Representatives in Germany (BARIG) claims the equal treatment for all airlines at Frankfurt – newcomers and airlines possessing so-called ‘grandfather’ rights. According to BARIG, which represents around 100 national and international airlines operating to/from Germany, any implemented rebate of airport charges must apply to all and cannot privilege individual players.
“Evidently, Frankfurt is by far one of the most expensive airports in Europe. In consequence of the immense burden of charges many airlines are forced to evaluate the profitability of their routes to and from Frankfurt,” BARIG General Secretary Michael Hoppe explains. For many years BARIG and its airlines are urging the airport operator Fraport to finally put an end to spiralling costs and rather begin relieving airlines from the tremendous cost burden.
In a first reaction to the Ryanair move, Lufthansa Chief Carsten Spohr announced that his company will only pay the same landing and ground-handling fees offered Ryanair by Fraport.
Lufthansa accounts for nearly 60 percent of all FRA conducted movements, including passenger and cargo traffic.
DB to cancel Schenker and Arriva IPOs
Railway company Deutsche Bahn will put plans on hold for IPOs of its daughters DB Schenker and UK train operator Arriva. Originally, their mutual parent DB intended to sell shares equaling up to 45 percent in both enterprises on the Frankfurt stock exchange (DB Schenker) and its counterpart in London (Arriva). With the proceeds, expected to reach up to 4.5 billion euros, DB wanted to finance a broad modernization program to bring their aging infrastructure back in shape.
However, the Brexit decision has now led the DB leaders in their Berlin headquarters take a sharp u-turn. Due to the fall of the British Pound following the referendum in the UK "we would throw money out of the window in case of an Arriva IPO,” argued DB Chief Ruediger Grube. His decision will be officially consented by the supervisory board in their next December meeting.
Herr Grube’s mind-set change was facilitated by the German government's decision to pump up to €2.4 billion into state-owned Deutsche Bahn to enhance and modernize the track system and ground infrastructure.
AMI expands in South Africa
Air freight and express wholesaler AMI has doubled the size of its Cape Town, South Africa facility, and trebled its temperature-controlled storage for perishables.
AMI has acquired the facility adjacent to its current base at Cape Town International Airport, doubling its warehousing to 1,000 sqm. This includes 120 sqm of refrigerated storage, with separate temperature zones for flowers, and fruit and vegetables.
The expanded facility will enable AMI to receive fresh produce from South Africa’s Cape region - including seafood, fruit, vegetables and flowers - and maintain their condition while awaiting their flights.
Comments AMI’s VP Africa, Milton French: “The expanded AMI Cape Town facility and our increased perishables capability will help us to keep pace with the significant growth in traffic from this region.”
According to the wholesaler, its South African business is increasing rapidly, above all its Durban branch that reports a dramatic growth of 118% over the past 4 months. Meanwhile, during January-August 2016, AMI held a 6.9% share of the total South African air freight market, and ranked third in the country’s airfreight agents’ league table. Airfreight wholesaling is the process by which freight agents can purchase space through an intermediary (“wholesaler”), generally at lower rates than offered by airlines.
LHT Logistik expands in MUC
Lufthansa Technik Logistik Services (LTLS) has enlarged its warehouse space at Munich Airport by adding 3,200 sqm to the existing facility. The step comes after Lufthansa’s decision to purchase and operate 25 Airbus A350-900, replacing the current A340 fleet and their aging Boeing 747-400 passenger jetliners. According to LTLS, some 700 different components will be stored at MUC to ensure the support and supply of the A350 operated by LH but also of other LTLS clients that ordered this new Airbus variant. “Thanks to the warehouse expansion, our customers are guaranteed optimum material supply for this aircraft type also," says Christian Langer, Managing Director of LTLS.
In addition to the components for the new aircraft type, parts for 15 other aircraft types are also stored there.
LH Technik Logistik Services is a 100 percent subsidiary of Hamburg, Germany-headquartered Lufthansa Technik.