Interview: : Tom Presnail Cargo 2000 regional director - Area 3
- Friday, 13 February 2009
Multiple data input systems make the job harder, but customer satisfaction makes it all worthwhile
Tom Presnail joined Cargo 2000 in July 2008 as regional director - Area 3 based in Singapore. He started his career in airfreight in Canada with KLM in 1975 in warehousing and later, sales before KLM management changes within the same organisation over the next seven years saw him in various roles and several Canadian cities including Ottawa, Vancouver and Montreal in the next seven years. In 1995 KLM offered him the post of regional director for north east Asia based in Tokyo responsible for Japan, Taipei, Hong Kong, Korea. During this time he opened the first office for KLM in China.
In 2001 KLM restructured operations resulting in Presnail going to Singapore to take up the role of area director Asia Pacific for cargo operations, doubling the size of his territory. In 2005 he was repatriated back to Canada working on an assignment to develop Cargo 2000 within the KLM-Air France organisation. While on duty travel in Singapore in October 2007 he was asked to take up the role previously held by Ron Cessna. In 2008 Cargo 2000 management was restructured and expanded to provide better service. Cargo 2000 now operates in three specific areas, each with its own regional director. This enables the organisation to be better-managed and more focused towards the membership.
Presnail was in Sydney earlier this month, his first visit to Australia, to meet with members and the local committee.
What is the purpose of your Sydney visit?
I am here to get a feel for and understand the local market. We put a lot of value on the local associations; they know what’s going on in their markets, each of which is slightly different. The local chapter has not met for quite some time and we need to replace the previous chairman Andy Vargoczky who has taken up a new role in India. We also need to get the membership together to discuss infrastructure issues including interface issues with Customs and quality of data input. It just can’t be done from a remote office
What progress has Cargo 2000 made?
Membership has grown considerably and now numbers 72 including the recent signing of CEVA and some key ground handlers like AAT and Hactl. Most airlines have gone away from self-handling so its important to have the handling sector join.
Surely it is in the interests of airlines to be members?
This is a benchmarking system between those who are participating, but there is no rule forcing everybody to join. The idea of benchmarking is just one element of Cargo 2000; but the most critical aspect is improving the quality of air cargo.
How has the economic climate affected membership this year?
Well, considering the problems that started half way through 2008 membership growth was very positive up until December. This year, four new members have joined, we’ve lost one ground handling company and may lose others if the situation worsens, but in the main, membership has held up. A lot of members have actually had more time and resources to put into the project. Many realise this is a time when you don’t want to lose customers and better understanding of the market through projects like Cargo 2000 can really help. Retaining customers in the current market has taken on new meaning.
If the benchmarking system that is Cargo 2000 is to have any legitimacy surely you will need the participation of local airlines. Have you had any success in signing carriers such as Qantas or Air New Zealand?
I hope they will participate, because that will assist us in strengthening our benchmarking role, but we also would welcome their input to the forwarder -handler- carrier freight process, providing data to measure performance. With Cargo 2000, freight is tracked throughout the process from delivery by the forwarder to the airline, including the time it takes for it to be loaded and shipped. We know what time the parcel arrives at the carrier - what time it leaves and when it should arrive at its destination and when the cargo should be recovered for the customer.
So when the cargo goes live and the messages are actually sent, we can compare the reality with the expectation. Reporting wise at the end of a given period, say six months or a year members can drill down through the system to see how their handling is performing and where it can be improved. The system provides extremely detailed data.
Do members all use the same system for data input?
No. Members have their own systems but we are developing training for frontline staff to enable them to analyse the data. The benefit Cargo 2000 adds to the equation is to create some standards that assist the total supply chain. We all serve the ultimate customer — the shipper or consignee. As the airline industry developed over the last 30 years carriers tended to develop their own systems. There is some commonality among them but generally speaking we still have a lot of confusing data to deal with. Cargo 2000 is developing a simplified system to measure all the data that is generated and present it in a useful format that can help the industry understand better and in turn improve its performance for the customer.
Is the industry playing catch-up to the integrators in terms of market intelligence?
The integrators such as FedEx, DHL, TNT are way out in front in terms of process integrity and what is happening in their operations. They have been very efficient in collecting data on the freight process and using it effectively to give themselves a winning edge in business. Cargo 2000 aims to create a more level playing field in the industry by creating reliable freight process data on the freight process. Members can then use this information to enable them to compete more effectively with the integrators.
What is the membership fee for Cargo 2000?
Membership is open to all airlines and freight forwarders. There is also an associate membership category for companies that interface with the supply chain such as IT companies, ground handling agents etc. The big global enterprises pay an annual US$25,000 fee. That may be too high for the smaller forwarders, but they have an associate membership fee which is US$10,000. We are a non-profit organisation and as such anticipate that as the membership grows fees will be reduced.
Who owns Cargo 2000?
The membership. IATA is also actively supporting the association.
How do you communicate with membership? Is their an annual meeting or conference?
There are two annual meetings for the general membership usually run in tandem with IATA global meetings and the board meets four times a year.
This year we also are running an additional conference for members in September during the Air Freight Asia show in Hong Kong.
