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Date 1

Panalpina – working for security

MAKS 2013 Moscow, August 2013

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Date 2

PA Russia Overview

Office hours: Monday - Friday (09.00 - 18.00)• Panalpina World Transport ZAO since 1991 • Panalpina CIS Helsinki OY RO since 2006

Activities:• Air Export and Import, Ocean Export and Import, Project

Management, Brokerage, Logistics• Office Space: 1,400 sq.m - rented • St-Petersburg is a fully operational office • Usinsk office is working under St-Petersburg • Yuzhno-Sakhalinsk office is also working on local Projects and has a

few local field offices• Astrakhan, Nakhodka, Irkutsk offices are working on Projects and

under Panalpina Moscow Project Department

Established since 1991

Moscow 213 employees

Astrakhan 12 employees

Irkutsk 1 employee

MOW Airports (Sheremetievo, Domodedovo)

53 employees

MOW Region (Butovo, Kashirsky, Pushkino)

18 employees

Murmansk 1 employees

Nakhodka 6 employees

Tyumen 8 employees

Usinsk 1 employees

Yekaterinburg 8 employees

St.Petersburg 22 employees

Yuzhno-Sakhalinsk 41 employees

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Date 3

Black and Caspian Sea Area

Kazakhstan

Russia

Ukraine

Azerbaijan

The main BCS Area Countries:

- Azerbaijan

- Georgia

- Kazakhstan

- Russia

- Ukraine

Countries under BCS Area control:

- Armenia - Tajikistan

- Belorussia - Uzbekistan

- Turkmenistan

- Kyrgyzstan

- Moldova

MoscowSt. Petersburg

UsinskTyumen

Irkutsk

Yuzhno-SakhalinskNakhodka Almaty

Kiev

AtyrauAktau

(Baku)

Yekaterinburg

Novorossiysk Georgia (Tbilisi)

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Date 4

Moscow Airports

Domodedovo Airport

Sheremetevo Airport

Vnukovo Airport

Sheremetevo Airport: • Major directions: Import/Export, Intra Russia Europe-Asia, main

cities of Russia

• Airports Sheremetyevo Cargo Terminal: 42 850 sq/m

• Airport Moscow: 8 800 sq/m

• High Loader: Available

• Panalpina Office, offering Export and Import customs clearance

• Customs Clearance Facility: Available

Domodedovo Airport:• Major directions: Siberia and Far East, Export/Import, Intra

Russia, Europe/Asia, main cities of Russia

• Domodedovo Cargo Terminal: 17 720 sq/m

• High loader: Available

• Panalpina Office, offering Export and Import customs clearance

• Customs Clearance Facility: Available

Vnukovo Airport• Major directions: intra Russia, Intra CIS, Export and Import

• Fully equipped warehouse

• Highloader available

• Customs Clearance facility available

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Date 5

Regular Airfreight Import traffic to Moscow

• Daily main-deck capacity from Asia and Europe as well as from the US to Moscow airports

• Direct connection to the Economic Centers in Russia

• Multi daily passenger connections from all continents

• Access from incoming aircrafts directly to outgoing inner-Russian passenger flights

• Bonded on-forwarding customs airport or customs bonded facility

• Growing capacities in all three Moscow airports both on the side of carriers investing in new planes and airport

operators investing in new facilities means safe and controlled handling and a high degree of flexibility in

transportation

• Three Moscow airports means three onward networks of which each provides unique uplift and capacity options

• Standardized securization procedure needs to be agreed and implemented

• Export focused Airports in Russia need to be equipped with tracing equipments aligned to the facilities in major

airfreight hubs and trading centers worldwide

• Securization as well as tracing modules and facilities have to be embedded in an aligned trading and customs

clearance procedure

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Date 6

The Panalpina station in the European part of Russia is the gateway to Russia and it also acts as transit point for shipments into other CIS countries. Moscow has several airports, of which the two most used are Sheremetevo and Domodedovo (with Vnukovo a distant third).

SVO-2 is the larger and more up-to-date of two major Moscow airports. There is no physical connection between the two terminals, they are essentially separate cargo terminals using the same set of runways.

• Sheremetevo (SVO -1 and SVO - 2) Customs Terminals

• Domodedovo (DME) Customs Terminal

Smaller Cargo facility than SVO. Due to years of cooperation of Panalpina with the main players at DME like carrier and handling partners as well as customs swift throughput of freight.

• Vnukovo (VKO) Customs Terminal

A perspective part of future development. VKO has built up a scheduled cargo carrier presence.

Panalpina Customs in Moscow Airports:

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Date 7

The actual airfreight security situation in Europe

• 1. Air cargo has two basic different statuses in the EU: “Secured” and “Not Secured” whereas:

• a. The status “Secured” is conceded to shipments which are either originated in a registered “Known Consignor” (KC) or were submitted to a securing control (x-ray, explosive trace detector, etc.)

• b. The status “Not Secured” is reserved for shipments which were not originated in a registered KC or the secured supply chain was compromised (truck not locked/sealed, pieces manipulated/damaged, etc). These shipments have to be submitted to a monitoring (x-ray, explosive trace detector, etc.)

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Date 8

Technical problems during security check

-> Limited possibility of X-ray,due to restricted dims of X-ray devices-> Dark alarm – handsearch needed-> Security technologies are not sufficient enough, especially for product with high density ( for example: pipes )

The actual airfreight security situation in Europe

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Date 9

Panalpina – working for security

• Panalpina is one member for the research project ESecLog. • This project is funded by the German government. • The target is a review of packages by X-ray analysis ( and other

methods ) during the transport chain, to detect and avoid manipulations.• The project is started in May 2013 and will be finished 2016.

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Date 10

Panalpina – working for security

Following partners are involved: - Fraunhofer-Institut, Magdeburg - Bremer Institut für Produktions und Logistik GmbH

- Bundesanstalt für Materialprüfung, Berlin - Cassidian Airborne Solutions GmbH, Bremen - Viaboxx GmbH, Königswinter - Panalpina Welttransport (Deutschland) GmbH, BU Bremen

Associated partners are: - NXP Semiconductors GmbH, Hamburg - Lufthansa Cargo AG, Frankfurt am Main

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Date 11

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Date 12

12

Transfer WarehouseGroundhandling

Groundhandling

unknown shipper

AirportWarehouse

Loader

ULDPacking

Sorter X-Ray

consignee

ULDUnpacking

Loader In

In

In

Out

Out

Out

known shipper

In

In

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Date 13

shipper –Not known

Software

L B A

trainings

Product-texture

known –shipper

supplier

Airline / Carrier

Ground Handling

Priority

Service providers Security

Auditor

Material flow

uniqueness of packages

manufacturer

Customs

Commodities

Transit times

interface

Security level

ESecLog

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Date 14

Panalpina – working for security

Current initiatives in order to enhance security, status and questions:

- EU ACC3 regulations require that virtually all air cargo and mail carriers operating into the European Union (EU)

from third country airports must obtain an EU Aviation Security Validation by 1 July 2014

- EC REGULATED AGENT AND KNOWN CONSIGNOR DATABASE

- European Logistics for airplane parts (spare parts, production parts) facing following scenario:

The actual airfreight security situation in Europe (“Secured” and “Not Secured”)

The Known Consignor (KC)

The role of RFID in case of technical problems during security check (dark alarm, handsearch needed)

   Suspected Unapproved Parts SUP

- How can the Airline Industry resp. the producers of aircraft spare parts support the logistics community focusing on

security? Can security already be an integral part in the plane construction or will security remain to be steered

externally?