It is Kerry Logistics’ second international route between Lanzhou and South Asia following the launch of rail service from Lanzhou to Kathmandu, Nepal.
The new service from Lanzhou to Islamabad took 13 days and travelled 3,300 kilometre to the Kashgar Comprehensive Bonded Zone in Xinjiang where the consignments of mechanical equipment, auto parts, commodities, and snow melting agent were transferred to trucks for the remaining 1,200 kms journey to Islamabad which included altitudes of 5,000 metres.
Kerry says the new link between Lanzhou and Islamabad is set to become a regular service next year following the introduction of a cross-border rail and trucking services from China through Kazakhstan to Caucasus and Turkey in June 2018.
Edwardo Erni, Kerry managing director – China and North Asia commented: “As we continue to expand our capabilities and implement our development blueprint of capturing the opportunities along the Belt and Road trade route, we are thrilled to launch this new service that offers a significant time-saving option to our customers.
“Following the establishment of a new subsidiary in Pakistan in July 2018 this new service will help to better equip us to capitalise on the increasing trade activities between China and Pakistan facilitated by the CPEC [China-Pakistan Economic Corridor],“ he added.
EHL International Logistics has signed a deal with Edmonton International Airport (EIA) to make the airport its North American logistics consolidation centre for goods from China.
The subsidiary of the Henan Provincial Government will operate flights from Zhengzhou to Edmonton and continue to the US.
Trial Boeing 747-400 flights through Edmonton are underway in preparation for an expanded freighter schedule.
The deal will generate new jobs in the Edmonton Metro Region and increase access to global markets for small and medium sized businesses across the region.
EHL president, Ziqiang Ma says: “We chose Edmonton because of the ideal location, logistics infrastructure and strong partnerships with EIA and Maple Horizons. We believe that through this, we can increase trade and cooperation between China and North America.
“EHL is grateful for the partnership with Edmonton International Airport and Maple Horizons, and the support of the municipal governments of Zhengzhou and Edmonton, the provincial governments of Henan and Alberta.”
EIA president and chief executive officer, Tom Ruth says: “We welcome EHL to EIA’s Airport City and the new construction investment, jobs and trade opportunities it brings to the Edmonton Metro Region and Alberta. This significant agreement builds from EIA’s strong track record of driving successful trade and commerce between China and North America, solidifying EIA as a major international trade hub.”
Zhengzhou, the provincial capital of Henan Province is the Chinese government’s pilot zone for cross-border e-commerce.
Over 70 per cent of China’s perishable air cargo moves through the province, and Zhengzhou is located within two hours of one billion people.
Maple Horizons is a Canadian company active in the cross-border e-commerce market in China and has acted as a critical catalyst for the partnership.
Company president William Wang says Edmonton is an ideal location for expanding air cargo between China and North America.
Wang says: “The city is one of the best places to do business in Canada, and is a strong base for e-commerce distribution across North America. We are excited to partner with EIA and EHL to build the China-Canada logistics solutions of tomorrow.”
Cargo volumes at Emirates have fallen slightly while half year 2018-19 airline profits have slumped 86 per cent due to currency issues and high fuel costs.
Airline revenue was up 10 per cent to 48.9 billion dirhams (AED) ($13.3 billion) but profits were down 86 per cent from AED 1.6 billion to AED 226 million with the profit margin reducing from 3.7 per cent to 0.5 per cent.
For the Emirates Group, revenue was up 10 per cent to AED 54.4 billion while profits were down 53 per cent to AED 1.1 billion, with the fall mainly being attributed to fuel prices increasing 37 per cent.
Emirates Airline and Group chairman and chief executive, His Highness Sheikh Ahmed bin Saeed Al Maktoum says: “Emirates and dnata grew steadily in the first half of 2018-19. Demand for our high quality products and services remained healthy, as we won new and return customers across our businesses and this is reflected in our revenue performance. However, the high fuel cost as well as currency devaluations in markets like India, Brazil, Angola and Iran, wiped approximately AED 4.6 billion from our profits.”
He adds: “We are proactively managing the myriad challenges faced by the airline and travel industry, including the relentless downward pressure on yields, and uncertain economic and political realities in our region and in other parts of the world. We are keeping a tight rein on controllable costs and will continue to drive efficiency improvement through the implementation of new technology and business processes.”
Cargo volumes for Emirates were down one per cent to 1.3 million tonnes with yields improving 11 per cent, with the performance being driven by Emirates SkyCargo focusing on investments in products and services.
At dnata, revenue was up 11 per cent to AED 7 billion and profits by 31 per cent to AED 861 million, with cargo volumes increasing two per cent to 1.5 million tonnes.
Delivering the key note address at the TOC Americas conference in Panama this week, Jorge Quijanao, Administrator and CEO at the Panama Canal Authority (ACP) highlighted the risks and opportunities facing the authority as it looks to capitalise on the massive investment in the Panama Canal expansion.
The new set of locks opened in 2016, and nearly thee years later Quijanao said the market segments the Canal serves “ have behaved differently than expected”. The container business has grown strongly, accounting for 159 million PC/UMS tons of the 442.1 million Panama Canal tons (PC/UMS) that passed through the canal in its 2018 fiscal year. Of that volume 112.6 million PC/UMS tons transited the expanded canal, which is in line with the ACP’s expectations. Bulk carrier traffic, however, was down 6% in 2018 mostly due to a decline in soya bean volume from the US, and Quijanao is not expecting US exports to stage a come back in the short term.
With 62.8% of total cargo transiting the Canal having its origin or destination in the United States the ACP is watching the tariff situation closely. On the container side, the threat of tariffs has actually boosted imports from China into the US. Exports, however, are a different story. US exports of agricultural products, scrap and recyclable materials to China have fallen significantly. As a result more containers are being sent back to China empty. Quijanao said the ACP has noted an increase in vessels taking the long route around Cape Horn to China, though this is not cost effective when oil gets above US$70 per barrel, he added.
One of the goals of the Canal expansion was to “recapture” some of the container business that was lost to the Suez Canal, and Quijanao said the expansion has seen “some, but not all of what is going through the Suez come back”. The Suez Canal, however, is discounting heavily to compete with Panama, with initial reductions of 35% increasing to 55%,and now 65%. “They are almost giving it away”, said Quijanao, adding that the ACP is not overly concerned as the Suez cannot replicate Panama’s position as a distribution point for the Americas.
The biggest surprise since the canal expansion opened is the growth in LNG traffic, which surged 81% in 2018 to 11.5 mt. Gas “has become a major business”, said Quijanao, and the ACP has needed to adapt to how it operates. Gas is frequently sold on the spot market, and the final customer is not known at loading. The ACP is now actively reaching out when it sees a vessel at a loading point in the US that does not have a Canal booking and offering the operator a slot.
Growing tonnage through the Canal is important, but the ACP and the Panama Maritime Authority are also pressing hard to expand the county’s ports and develop a role for Panama in added value logistics, for both container cargo and vehicles. Some 1200 hectares of land on the Pacific side of the Canal have been set aside for a Logistics Park, which the ACP wants to include a vehicle transhipment facility, and now LNG storage.
The ACP also believes it will need more box terminal capacity on the Pacific side of the Canal and has “repackaged” the Corozal terminal proposal. The concession has been scaled back from a three to a two berth terminal initially, which the ACP hopes will prove more attractive. The initial plan to develop a 5M TEU capacity terminal at Corozal was put on in 2017, after the four leading global terminal operators that prequalified for the original 20-year BOT concession failed to submit final bids by the deadline. Quijanao said the ACP has reached out to parties that were interested in the previous tender, as well as new players.
DUBAI: November 12, 2018. GAC Dubai has officially opened its new purpose-built contract logistics facility at Dubai South, 25 years after it established its first building.
The two-chamber temperature- and humidity-controlled facility, with a capacity for nearly 50,000 pallets, is designed to handle fast-moving consumer goods, food & beverages, beauty products and dangerous goods Classes 2, 3, 5.1 and 8.
"GAC was a pioneer when we arrived in Dubai in 1967, and when we opened the region's first distribution centre in 1993. Our latest addition in Dubai South continues that pioneering tradition,” noted GAC Group president, Bengt Ekstrand. "I firmly believe this new facility will give our customers the highest standards of service, security and cost-effectiveness in the UAE."
The US$27 million facility is the largest in the company’s history and brings its total capacity to over 170,000 pallet positions in the Jebel Ali and Dubai Airport Free Zones.
“The new Dubai South contract logistics facility has been designed to meet a higher standard than what is currently available in the market, from operational efficiency and dynamism through to environmental systems,” adds Neil McMaster, GAC Dubai’s general manager for Contract Logistics. “The facility has been extremely well-received, and this is thanks to the dedication and synergy of the team that worked on this project.”
Pictured left to right: Ronald Lichtenecker, GAC Dubai managing director; Bengt Ekstrand, GAC Group president; Khalifa Al Zaffin, executive chairman of DACC & Dubai South; and Saadi Abdul Rahim Hassan Al Rais, chairman of the Board for GAC Dubai.