Gordon Wright
Head of Cargo Border Management IATA
Opening Remarks
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
1st Air Cargo Trade & Development Day Tuesday 6th November 2018
Follow the prepared agenda.
Do not discuss:
• Pricing, including fares, service charges, commissions, etc.• Bids on contracts or allocation of customers • Geographic/Product market allocations • Marketing plans, including expanding or withdrawing from markets• Group boycotts• Your commercial relations with agents, airlines or other third parties• Any discussion aimed at influencing the independent business decisions of
your competitors
IATA Competition Law Compliance
#IATAACTDD
Paul Steele
Senior Vice President
Member & External Relations and Corporate Secretary IATA
Welcome Introduction
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
The Single Africa Air Transport Market (“SAATM”)
Benin
Burkina Faso
Botswana
Capo Verde
Central African Republic
Republic of Congo
Cote d’Ivoire
Chad
Egypt
Ethiopia
Gabon
Gambia
Ghana
Guinea
Kenya
Liberia
Mali
Mozambique
Niger
Nigeria
Rwanda
Sierra Leone
South Africa
Swaziland
Togo
Zimbabwe
Paul Steele
Senior Vice President
Member & External Relations and Corporate Secretary IATA
THANK YOU
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Suja Rishikesh
Director of Market Access Division World Trade Organization (WTO)
Keynote Speech
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Glyn Hughes
Head of Cargo IATA
The Value of Air Cargo
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Air Cargo: Supporting World Trade
$5.9 trillionValue of cargo moved
by air in 2017
35% of total
World Trade
1% by Volume
Global Value Chains – driving economic activity
https://www.iata.org/publications/economic-briefings/value-of-air-cargo-2016-report.pdf
IATA e-commerce logistics white paperhttps://www.iata.org/whatwedo/cargo/stb/Documents/StB-Cargo-White-Paper-e-commerce.pdf
▪ Trade war fallout
▪ Infrastructure investment
▪ Border management / efficiency
▪ Specialized supply chains
▪ Safety and Security
▪ Industry Digitalization
Air Cargo Challenges
Vital for todays society and economy
32
https://www.iata.org/whatwedo/cargo/sustainability/Pages/benefits.aspx
Georg Theis
Head of Strategy Lufthansa Cargo
An Airline perspective: how cargo benefits the global economy
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Networking Coffee Break 10:30 – 11:00
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Trade Facilitation:Are developing Countries up to Speed?
Panelists:
Francesca Bianchi, Global Alliance for Trade Facilitation
Daniel Johns, HM Revenue & Customs
Silvia Sorescu, Organization for Economic Co-operation & Development (OECD)
Moderator:
Sheri Rosenow Counselor
World Trade Organization (WTO)
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Monitoring implementation:The OECD Trade Facilitation Indicators
Silvia SorescuPolicy AnalystTrade and Agriculture Directorate, OECD
IATA AIR CARGO TRADE & DEVELOPMENT DAY
Trade Facilitation: Are developing countries up to speed?
Geneva, 6 November 2018
47Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
Characteristics of OECD work
Provides• a forum where governments work together to
share experiences and seek solutions to common
problems
Takes • a multidisciplinary approach
Collaborates• with many different ministries and also
conducts consultations with: business; labour; civil society;
parliamentarians
Offers • evidence-based, objective, independent policy
advice
Provides decisions via • consensus
Seeks • and sets best practice standards
48Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
➢ 11 policy areas - full spectrum of border procedures
(A) Information availability
(B) Involvement of the
trade community
(C) Advance rulings
(D) Appeal procedures
(E) Fees and charges
(F) Documents
(G) Automation
(H) Procedures
(I) Domestic border agency co-
operation
(J) Cross-border agency co-
operation
(K) Governance and
impartiality
TRANSPARENCY AND
PREDICTABILITY
GOVERNANCEFORMALITIES
STREAMLININGBORDER AGENCY
CO-OPERATION
➢Biennial data collection: publicly available sources, factual informationfrom the private sector and government inputs, fact-checked by theconcerned countries via their WTO Delegations
OECD TFIs: What they are and how they are built1
49Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
2 TFIs: Monitoring performance – income groups, 2017
increasing
performance
2
1
0
50Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
3 Looking beyond aggregate performance matters
Release of goods – selected measures (TFIs, income groups, 2017)
Getting “up to speed”: TFI Policy Simulator
https://sim.oecd.org/default.ashx?ds=TFI
identifying key measures driving the
overall performance of a selected
country
assessing the impact of policy
modifications on overall performance
4
5252 52Trade and Agriculture Directorate | Organisation for Economic Co-operation and Development (OECD) | www.oecd.org/tad | [email protected]
Access all of the information from the Trade & Agriculture Directorate at:
www.oecd.org/tad
You can reach us via e-mail by sending your message to the following address:
We invite you to connect with us on Twitter by following:
@OECDtrade@OECDagriculture
Contact us:[email protected]@oecd.orgMore on the OECD Trade Facilitation Indicators: oe.cd/tfi
Thank you for your attention!
Connecting Landlocked Countries by Air:
Challenges and Opportunities
Panelists:
Tidiane Diop, International Trade Center (ITC)
Alban Odhiambo, TradeMark East Africa
Moderator:
Moritz Meier-Ewert Economic Affairs Officer
UNCTAD
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Trade, Connectivity and Global Value Chains:
Focus on Africa
Panelists:
James Edwin, Enhanced Integrated Framework (EIF)
Cezary Sowinski, DHL Express
Mourad Arfaoui, World Customs Organization (WCO)
Moderator:
Donia HammamiKGH Customs Services
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
TRADE, CONNECTIVITY AND GLOBAL VALUE CHAINS: FOCUS ON AFRICA• IATA 1st Air Cargo Trade & Development Day
• Cezary Sowinski
• Geneva, November 6, 2018
Overview
GHANA
RWANDA
EGYPT
KENYA
MOROCCO
Current international trade facilitation projects with DHL Express involvement
59
Optimising import and export processes in the agri-food sector
Morocco
• design and introduce a paperless, automated data exchangebetween the weigh bridges at Morocco’s main ports
– expect to reduce the clearance time for weighing by 25 percent
• support Morocco in introducing and sharing electronic phytosanitary certificates
– to reduce the clearance time requiring this certification by two days
Overview
GHANA
GHANA
- identifying best practice for pre-arrival and related processes
- developing a target model for pre-arrival processing
- reviewing the legal and regulatory framework required to implement the project
- developing a risk process map and a detailed process description for pre-arrival processing
- developing a training and HR development plan
- training customs and other government officials, as well as private sector stakeholders
- testing and piloting the risk management system and pre-arrival process
- assessing the supply chain in Ghana and analysing the import process
Overview
Introducing a risk-based pre-arrival customs process
Risk Management study visit of Ghanaian border agency officials and other project stakeholders to Germany in cooperation with DHL and German Customs (first week of September 2018)
61
# introducing a risk-based pre-arrival customs process
# preparing Time Release Study (TRS)
Strengthening Kenya’s position as East Africa’s key trade hub
The GATF together with the Kenya Revenue Authority (KRA) and the World Customs Organization (WCO) held a kick-off public-private workshop on the Time Release Study (TRS) with over 53 participants. The workshop focused on the scope of the study, with a focus on private sector contributions.
KENYA Overview
62
Development of e-Commerce ecosystem in Rwanda
RWANDA
* *
* *
Partnership project between Ministry of Commerce and Industries (MINICOM), GIZ, DHL and ITC
Aiming to assist 150 enterprises to become online goods and service providers (incl. capacity building, E-commerce service center (ECSCs) business model, increased capacity of logistics actors to support SMEs and trade administration (export managers))
Design layout and develop resource plan to equip the E-commerce service center(ECSC) warehouse
DHL assisted in designing a business model to make the
Kigali ECSC profitable
*
*
RWANDA e-
Commerce
Logistic strategy for e-Commerce
(by DHL)
Training on logistics, customs and warehouse operations
Overview
EGYPT
STRATEGY
NTFC
EFFECTS
Reducing the number of documents required for import and export procedures• from 11 in 2016 to 6 in 2017 on import;• from 9 in 2016 to 5 in 2017 on export;• not more than 3 in total by 2019
DHL Egypt representing private sectorin National Trade Facilitation Committee
Overview
We signed a JV Partnership with Ethiopian Airlines on 27 July 2018
DHL – Ethiopian Airlines Logistics Services Limited
The Joint Venture: Formation of DHL-Ethiopian Airline Logistics Services Ltd.
Provide much• -needed freight capacity and logistics infrastructure to Ethiopia, where soaring economic growth has rapidly driven up demand for international forwarding and handling services
Ethiopian Airlines will provide regulatory and operational support•
DHL Global Forwarding supports logistics infrastructure and establishes air, ocean, and road •
freight connections between Ethiopia’s main trade hubs and the rest of the world
Shareholding: • DHL 49%, Ethiopian Airlines 51%
Growing Opportunities
Volume of Air Freight (AFR) has been growing. A new cargo terminal at the Addis Ababa Bole International Airport was built to meet anticipated growth
Expansion plans are in the works for Modjo Dry PortTerminal, as a result of itsmassive import growth andanticipated export volume
Road networks continue to be enhanced, to link up rural areas and cities, to provide more access for opportunities
Opening of the Addis Ababa–Djibouti Railway as part of China’s One Belt One Road Initiative - connects Ethiopia to Djibouti’s port which is handling about 95% of Ethiopia’s cargo
Positive Developments
JV CAPABILITIESINDUSTRY NEEDS
• Consolidation services from all major DHL Gateways into Addis; DHL Time Definite Airfreight Services
• Leverage Ethiopian Airlines’ extensive global and regional networks
• Cold-chain services to support Ethiopia’s growing Life Sciences & Horticulture Sector
• Door-to-door services to focus especially on industrial zones for manufacturing
• Accelerate the growth of Ethiopia’s fastest-growing industries, particularly fashion and pharmaceuticals
• One stop solution to connect to world’s businesses
• Scalability and cost-efficiency to enter new markets
• Seamless and synchronized service from release of goods to delivery with complete visibility
The Joint Venture: Formation of DHL-Ethiopian Airline Logistics Services Ltd.
The Joint Venture: Unique Value Proposition Optimization of Costs Compliant Biz CultureCentralized IT PlatformLead Time Reduction
• Consolidation Services
on Imports & Exports
• Global solutions
• Sea- Air
• LCL Service
• Multimodal
• Road Freight
• Combined Delivery or
Collection
• Loading Optimization
• Code of Conduct
• Anti Corruption and
Bribery
• Competition
Compliance Policy
• Supplier Code of
Conduct
• 24 x 365 hotline for
reporting
• Head Quarters
monitoring online
• Zero Tolerance Policy
• 24X7 support, Full
Visibility and Real
Time Tracking
• Automatic KPI
Reporting & Bench
Marking
• Centralized
Management
• Integrity of Data
• Vendor Stock
Management
• Tailor Made Web
Based Solutions
• Carrier Management
• Document
Management
• Buyers Management
• Exception
Management
• KPI Management
• Continuous
Improvement
How can Tourism boost Trade and Development?
Panelists:
H.E. Ms. Nazhat Shameem KhanAmbassador, Republic of Fiji
H.E. Ms. Cheryl K. SpencerAmbassador, Jamaica
Anders Aeroe, Director of the Division of Enterprises and Institutions
International Trade Center (ITC)
Moderator:
Dale HoneckCounsellor
World Trade Organization (WTO)
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD
Networking Coffee Break 15:30 – 15:45
1st Air Cargo Trade & Development Day Tuesday 6th November 2018
Smart Borders:Making Security and Trade Facilitation co-exist
1st Air Cargo Trade & Development Day Tuesday 6th November 2018
Panelists:
Lance ThompsonUnited Nations Economic Commission for Europe
(UNECE)
Erich KieckInternational Organization for Standardization (ISO)
Kester MeijerDirector Operational Integrity, KLM Cargo
Moderator:
Tarcisio HardmanManager, Cargo Border Management
International Air Transport Association (IATA)
#IATAACTDD
UN/CEFACTMulti-Modal Transport Reference Data Model
Bill of Lading
Flight Manifest
Air Waybill
Container Operations
CMR & Road Consignment
Transit & TIR
Pre-ArrivalSecurity
Dec.
Warehouse Receipt
ArrivalNotice
Dangerous Goods Dec
DespatchAdvice
Delivery NoteForwarding
Instruction
Packing Instruction
Rail ConsignmentNote
Trace & Track
Cargo Report
Invoice
Offer Quotation
Catalogue Remittance
Delivery Scheduling
IATA standards
WCO standards
http://www.unece.org/cefact.html
UN/CEFACT and Data Pipeline• Data Pipeline
• Results from three EU projects (Cassandra, CORE & SELIS).
• Innovative methodology to recuperate data at the source and thus improve data quality.
Order Order
Payment
LC document
Insurance House BL
ReservationFreight
Payment
Packing list
Transportcontract
Packing list
Master BL
Insurance
Reservation
Transport contract
ExportDecl.
I.C.S. Decl.
Import Decl.
RegulationsCountry A
RegulationsCountry B
ExporterFreight Forwarders
(Export)
InternationalTransporter
ImporterFreight Forwarders(Import)
http://www.unece.org/cefact.html
Executing a Next Level Compliance strategy
NLC is consistent, transparent, less complex
NLC brings a competitive advantage
When in doubt, do not move until all clear
Goals
- We know what we are transporting.
- Complete, Correct, Timely information
- Catch non-compliance up-front
- Integrated monitor on (potential) anomalies triggered from multiple sources
- No is No, effective stop-options in solutions to prevent human workarounds
- Improved Change Management in preparing for legislation and enforcement
Can we trust the information?
Law and Regulations
Organisation and Supply Chain
Human FactorsSystem and Instructions
ICT and DataEPICS
Proces and Product
Expand Expertise
Next Level Compliance
▶️ Let’s see an example of co-creation at work, bringing all stakeholders and innovation together
E-Commerce Logistics and Development
Panelists:
Dan March, Chief Executive Officer, WCA
Cristina Falcone, Vice President Public Affairs, UPS
Brendan Sullivan, Head of Cargo Operations, IATA
Kimberley Botwright, Policy Analyst,
World Economic Forum (WEF)
Moderator:
Luisa RodriguezEconomic Affairs Officer
UN Conference on Trade
& Development (UNCTAD)
1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD