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Gordon Wright

Head of Cargo Border Management IATA

Opening Remarks

1st Air Cargo Trade & Development Day Tuesday 6th November 2018#IATAACTDD

https://www.youtube.com/watch?v=R4PdVFjtdCIIATA MOVIE

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


Introducing… the scope of global aviation

Every day…

Our global support foremployment and economic activity

Supporting the sustainable development goals

Aviation, supporting global trade

1.0%

Aviation benefits in small island states

Aviation benefits in landlocked developing countries

Infrastructure

Bureaucracy

CONNECTIVITY

Passengers by region and global growth

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


Suja Rishikesh

Director of Market Access Division World Trade Organization (WTO)

Keynote Speech


Glyn Hughes

Head of Cargo IATA

The Value of Air Cargo


The Value of Air Cargo

Glyn Hughes

Global Head of Cargo, IATA

Air Cargo: Supporting World Trade

$5.9 trillionValue of cargo moved

by air in 2017

35% of total

World Trade

1% by Volume

Air Cargo Primary

Commodities

Global Value Chains – driving economic activity

https://www.iata.org/publications/economic-briefings/value-of-air-cargo-2016-report.pdf

Dynamic value chains

IATA e-commerce logistics white paperhttps://www.iata.org/whatwedo/cargo/stb/Documents/StB-Cargo-White-Paper-e-commerce.pdf

Supporting Cross Border eCommerce

▪ 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

07-Nov-2018

7 November 2018 Name of Project 34We must keep the Global Economy Open

Thank you!

Georg Theis

Head of Strategy Lufthansa Cargo

An Airline perspective: how cargo benefits the global economy


Networking Coffee Break 10:30 – 11:00


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)


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


➢ 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


2 TFIs: Monitoring performance – income groups, 2017

increasing

performance

2

1

0


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:

[email protected]

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!

mailto:[email protected]

mailto:[email protected]

http://www.oecd.org/trade/facilitation/indicators.htm

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


Networking Lunch12:30 – 13:30


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


EIF Video - https://www.youtube.com/watch?v=YugmThm1sD0

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%

http://www.google.com.sg/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi59bPU-_7ZAhXLuY8KHercDkQQjRx6BAgAEAU&url=http://videoadvertisingnews.com/video-advertising/animoto-and-hubspot-partnership-to-boost-small-business-marketing/&psig=AOvVaw1tIEEUaSq5nrNl_lVnmc3i&ust=1521774962116544

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

Thank you

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)


Networking Coffee Break 15:30 – 15:45


Smart Borders:Making Security and Trade Facilitation co-exist


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

Border ControlCo-creation

in a rapidlychanging world

IATAGeneva, 2018

AIR CARGO BORDERS

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

https://www.youtube.com/watch?v=26GNUetRbUI&t=4s

VIDEO KLM https://www.youtube.com/watch?v=26GNUetRbUI&t=4s

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)


Gordon Wright

Head of Cargo Border Management IATA

Chairman Closing Remarks
