Another air freight industry stalwart will hit the half-century mark next month. And he’s not planning to throw in the towel just yet, writes John Newton.
Borje Lindmark follows in the footsteps of Wexco Aviation Services trio David Williams, Russell Freeman and former WA cargo manager Geoff Lord, who all notched up 50 years in the industry last year.
Now it’s the turn of MCH Aviation Holding chairman Lindmark, who achieves the milestone on 01 May. “I honestly don’t know how long I will continue. I still enjoy the different daily challenges – there’s never a dull moment,” he said.
After completing National Service in the Swedish military, Lindmark started his first job in the air cargo industry in May 1965, working as a cargo officer/load planner for Scandinavian Airlines in Stockholm. He later worked for a freight forwarder before moving to Australia in 1967.
On arrival in Sydney, he resumed his career in the freight forwarding industry, managing air export operations for Airborne Meadows there before transferring to Melbourne to manage its air freight import/export operations.
In 1970 – the year that Tullamarine airport opened - he began a long Australian career as a cargo reservations agent with Pan American Airways when he was one of only a handful of air cargo workers in Melbourne. “Then, there were only three main cargo carriers – Pan Am, Alitalia and Qantas – and there’s only one of them left now. “1970 was also the year when the first B747 transpacific services commenced, increasing the importance of air cargo as a substantial revenue earner. These included the first freighter operations from Australia to the US and Europe,” he said.
Lindmark remained with Pan Am for more than 15 years before moving to United Airlines which started services to Australia in 1986.
It was while he was with United that flower power became a big freight export story for the airline – and in particular for Lindmark, by then its Melbourne-based cargo manager cargo sales and operations.
The carrier had seen a strong demand for flower exports from Victoria to Los Angeles since the early 1990s when it was exporting around 100 boxes a year, each weighing 15-20 kgs. By 2006, this figure had shot up to 1000 boxes – the equivalent of a 20-tonne cargo payload on a B747. This achievement resulted in Lindmark being awarded United Pacific Division Sales Person of the Year.
According to Lindmark, the start up of operations in Melbourne by Menzies in the late 1990s sparked a major change in the air cargo industry at Tullamarine. “The move by Menzies to set up a purpose-built cargo building – at the time the only major expansion in Melbourne since 1970 – increased competition and vastly improved the service level to customers on our behalf. It lifted the freight game to new levels of expertise, as well as creating additional capacity.”
Lindmark has worked on narrow-body aircraft to wide-body B747s and freighters with 100-tonne capacity. “Aircraft cargo capabilities have changed dramatically since the first freighter aircraft I handled as a load planner. It was a DC-3 with a payload capacity of just 6500kgs, or a little more than the current LD7 pallet of 4500 kgs. The size and capabilities of today’s aircraft is simply mind-boggling, considering what it was like in the 1960s prior to the B747 and other wide-body aircraft.
Asked whether the industry had changed for the better over the years, Lindmark – who turns 70 this year – said: “The changes have not always been for the better. In the early years, people worked together much better.”
On much-needed industry improvements, he said there currently are not sufficient formal training opportunities for new entrants to learn the basics and understand the technical capabilities of aircraft. “Therefore, what is needed is additional formal training, including for Safety/DGR, and also understanding of rules and regulations of different countries and cultures.”
However, he rejected any suggestion that Australia was lagging behind in any world wide aspects of the air cargo industry: “Sure, it is not a large air freight market by world standards, but innovation, in particular finding ways to move perishable cargo such as crayfish, meat, fish and fruit to distant markets has been something that should be recognised, as it was a challenge at the time.
Lindmark joined MCH Aviation as chief executive officer in 2004 and was appointed a director of the company a year later. “In a very short time, MCH was established as a viable airline gsa and by the end of 2007 we had offices in all major Australian cities – ADL/BNE/MEL/PER/SYD – as well as AKL, with more than 30 employees.
“That growth has continued and we now represent 11 on and off line airlines,” added Lindmark who has been company chairman for the past three years.
If - and when - retirement becomes a reality, the MCH Aviation boss said he would miss the people and friends in the industry but would while away the hours walking on the beach with his partner. He will also visit family in Sweden.
The level of support for our FTA agenda seems to have peaked with the completion of the China FTA (to be known as the ChAFTA), as part of the Asian FTA ‘Trifecta’, writes Andrew Hunt.
However that trend has been abruptly reversed by the recent public debate about the merits of Australia entering into the Trans Pacific Partnership Agreement (TPPA). There has been a marked increase in antagonism towards the TPPA with its opponents taking to public forums with a wide variety of objections formed without the benefit of the text itself. The debate has been so intense and exhausting that the ABC even resorted to interviewing me (in my capacity as a director of the Export Council of Australia) to seek my views on the TPPA, apparently hoping to provide an opposing position to those attacking the TPPA. Very disconcerting for all concerned, although I have been assured that my hair was the star of the entire segment.
So, with the interview having omitted the ‘good stuff’,. I thought it would be a good idea to address some of the comments regarding the FTA agenda broadly and specifically the TPPA
• No FTA will be perfect. An FTA is like any other agreement in that it reflects the relative desires of the parties to the agreement and their ability to achieve those outcomes. In that context, Australia, with its largely open economy and with low levels of tariffs, does not have much to negotiate. Accordingly that limits the capacity of Australia to secure comprehensive outcomes that satisfy the interests of all parties. In regional FTAs with major trading partners such as the TPPA, our ability to influence the agenda is very limited – the major trading partners will dictate the majority of the agenda.
• Australia has largely done well in its negotiated FTAs, especially in the Asian FTA Trifecta. In particular, securing the deal with China under the ChAFTA appears to be a wonderful achievement. That said the ongoing delay in sighting the text of the ChAFTA is frustrating and begs the question as to what deal had actually been secured to support the announcements of the deal in November last year.
• I do not subscribe to the conspiracy theories that Australia has sold out vital national interests in the TPPA. For a start, we have no text to support that theory. Plus, if we were to have relinquished fundamental interests then we would have done so previously to get the FTA negotiation agenda moving.
• Successive Federal Governments have been accused of secrecy in negotiations on its FTAs, especially in relation to the TPPA. I believe that there has been extensive consultation on the TPPA with interested parties in Australia to the extent possible given the reasonable expectations of secrecy of the other negotiating parties. It is unlikely that any negotiation between sovereign nations could succeed if their progressive positions and the text of their negotiations (in draft only) were subjected to ongoing criticism.
• The inclusion of an Investor – State Dispute Resolution Provision (or ISDS) is probably a likely outcome and has been included in other FTAs to date. There are merits to its inclusion including merits to Australian exporters operating overseas and we have successfully “carved out” sensitive areas from other ISDS provisions. No reason to believe that we cannot do so now, especially given the need by the US to include such a provision
• Experience suggests that we reserve our rights on sensitive areas. We still retain anti - dumping and countervailing provisions, along with FIRB review and our biosecurity regime. These are positions respected and adopted by other parties to the TPPA so we can expect similar outcomes.
• The TPPA includes countries such as Canada, Peru and Mexico with whom we do not have FTAs and may not have secured FTAs on a bilateral basis for some time.
• The TPPA includes us in important regional supply chains and affords economies of scale that we may not have been able to secure in other ways
• While there is no need for Parliamentary approval as in the US, such deals are subject to review by a number of Parliamentary Committees. It is surprising how few submissions are made to such reviews
• While massive, the TPPA only includes 12 countries. The next big regional deal is the Regional Economic Comprehensive Economic Partnership Agreement (RCEP) with 28 countries, including China. This is still being actively negotiated and yet there has yet to be any concerns regarding the RCEP. Many of those who object to US influence under the TPPA similarly object to the influence of China under ChAFTA, yet there has been no outcry to date.
All things considered, on current ‘exposed form’, our FTA agenda including the TPPA represents the best efforts of successive governments, working toweards what they see as the best interests of Australia. It’s not perfect but it may reflect our real position in the world. If people feel otherwise then they should say so but in a constructive and not relentlessly negative manner.
Andrew Hudson Partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
FOR the first time, Infrastructure Australia will identify priorities before governments have made their decisions, according to Infrastructure minister and deputy prime minister Warren Truss.
Speaking at the Australian Logistics Council’s annual dinner, Truss said: “It was one of our key stated goals for reform of Infrastructure Australia that it gets ahead of the game.”
Quoting his departmental infrastructure secretary Mike Mrdak, Truss said: “There is also a need not just to focus on the dollars to be spent but also to accurately convey the impact of the problems we are trying to fix and the benefits of fixing those problems and pinch points.”
This was raised during the annual dialogue held earlier this year between the council and department. Truss said the 2015 discussion focused on deregulatory opportunities, current priorities of IA and – crucially for air cargo – better integration of the freight system across different transport modes.
The minister noted his department’s Bureau of Infrastructure, Transport & Regional Economics had pointed to an 80 per cent rise in Australia’s freight task over the next 15 years and a 300 per cent rise by 2050.
The federal government’s A$5 billion asset recycling initiative would, claimed Truss “show how mature assets can continue to serve the public while providing an impetus to the next generation of infrastructure projects”.
He pointed to the soon-to-be-released IA audit of nationally significant infrastructure. A recent addition to this work has been a review of the inter-generational report published early last month by the federal treasurer. The review will ensure the audit takes into account the impact projected population statistics will have on infrastructure assets.
This audit will be open for submissions before work proceeds much further on IA’s 15-year plan of infrastructure priorities. Truss commented that recent experiences across jurisdictions show that when communities are properly informed on infrastructure plans, it is possible to gain broad public support.
“I think we are starting to get there on long-vexed projects like the Western Sydney Airport, making sure the public know what is planned and giving them their say.
“And as we all know, public support is critical to getting the job done - especially in a very tight fiscal environment.”
Truss pointed out that “as the longest and largest mining boom in Australian history tapers off, we can no longer rely on increasing terms of trade to sustain our economic growth. The boom helped to fund an unprecedented level of government and private spending on new infrastructure.
“This record sustained level of investment has meant thousands of kilometres of new and upgraded roads and railways, new and expanded airports, seaports, hospitals and schools, better water infrastructure and vast new communication networks.”
These were investments in Australia’s future that would continue to pay dividends for decades to come, he said. But while infrastructure investments had grown substantially for many years, productivity had languished in recent times, the minister warned.
“Over the decade to 2013, total factor productivity essentially flat-lined and actually fell in 2013 - the worst performance of 15 countries compared by the Productivity Commission,” Truss noted.
“We have relied on rising export prices for too long. Now, more than ever, we need to be firmly focused on growing our national productivity.
“Without reforms to our economic settings, Australia risks falling behind in the world market.” Australia had to do more with less, he said bluntly, refocusing its attention on maintaining and upgrading existing transport infrastructure.
“We will need to look more closely at the micro economic reforms and regulations needed to underpin productivity growth.”
One of the government’s election commitments had been a promise to reduce red tape costs to business by A$1 billion annually.
The target was achieved in the first year and is looking even better for this, he claimed.
However, said Truss, there was no intention of slowing down on “game-changing long-term projects” like the Western Sydney Airport and inter-modal hubs.
What is Infrastructure Australia and why? REBORN last year as a statutory authority, Infrastructure Australia (IA) covers all forms of transport and logistics including airports and air cargo. While road, rail and maritime transport tend to get more focus from the body and from the infrastructure sector generally, this is also important to air cargo in terms of inter-modal supply paths and the essential factor of airport road access.
It was reconstituted following the proclamation of the Infrastructure Australia Amendment Bill 2014.
IA’s first fully-fledged ceo Philip Davies has this month taken up his new duties.
He replaces John Fitzgerald, who played a key role in establishing the new format, initially as interim infrastructure coordinator and then from April last year as acting ceo. IA board members have been drawn from business, professions and academia, with both public and private sector backgrounds.
Some have hands-on experience in air transport.
First major tasks for IA are completion of the comprehensive audit of existing national infrastructure and the development of a 15-year national infrastructure plan.
The plan will cover Australia’s current and future infrastructure needs, means of financing and delivering infrastructure, and ideas for better planning and use of infrastructure networks.
Davies comes from a strong infrastructure sector background, in Australia and internationally.
“This is an exciting opportunity, working closely with our state and territory colleagues, to shape the long term plan for Australia’s infrastructure,” he said on appointment. “We can develop the evidence base to support the investment priorities for nationally significant infrastructure.”
TERRORISM and security threats to flights have resulted in global aviation organisations ICAO and IATA creating improved tracking systems for cargo. The Consignment Security Declaration (CSD) - and in particular the eCSD - provides regulators with an audit trail of how, when and by whom cargo has been secured along the supply chain. Its objective is to meet International Civil Aviation Organisation (ICAO) requirements, ensuring that each consignment received by an aircraft operator or a regulated agent comes with standardised documentation, either on the air waybill or on a separate declaration. To avoid a plethora of different security declarations, the International Air Transport Association (IATA) - in cooperation with the industry and regulators – has developed a standard CSD and an electronic version , the eCSD. Australia too is reviewing the new legislation and regulations which have seen CSD and eCSD recently upgraded to full IATA Resolution 651. To meet the new regulatory requirements, Cargo Community Network (CCN) has developed new integrated software to assist the various sectors of industry particularly CTO’s and airlines. AirCargo Asia-Pacific spoke to Scott McCorquodale, general manager Australia and New Zealand for CCN (pictured), to find out how the new software is different and why it deserves further examination.
AirCargo Asia-Pacific: What is the new software program called and what are its benefits to forwarders? Scott McCorquodale: The new solution is called Cargo Guardian. The solution provides benefits across the industry in the area of compliance management for safety and security. As you know, both CASA and OTS here in Australia have quite comprehensive programs in relation to their areas of responsibility. But there can at times be challenges for industry in managing their compliance. Things such as Dangerous Goods Acceptance Training, and Security Awareness Training are two in particular. Cargo Guardian is a tool to help forwarders stay on top of these requirements, by monitoring when training expires, and keeping staff fully informed. The training organisations (RTOs) who provide training to industry will also receive a benefit from the solution, as they also have access and a role to play. We also verify the industry against the RACA list published by OTS on a daily basis, so that all CTOs and airlines can be assured that they are always receiving cargo from valid RACAs. Oh, and by the way, Cargo Guardian is also a comprehensive solution for industry to implement the IATA CSD and eCSD, under IATA Resolution 651, integrating with existing technical process for data re-use. So there really are multiple benefits.
You mentioned IATA CSD and eCSD. How does it help with that ? Well, IATA has been promoting the standard security declaration (CSD) and eCSD for a while now, and up until now it has been a ‘Recommended Practice’. There is clearly a lot of support for the concept of the industry-standard Cargo Security Declaration (CSD), and in particular the electronic version of that, the eCSD. That support comes from the likes of FIATA, the WCO, GACAG and so forth, as well as regulators in various countries. One of the issues we see is that at the forwarder, GHA and airline sides, there are varying capabilities with generation and acceptance of CSD/eCSD, and full industry-wide capability will take some time. With Cargo Guardian, we have a solution that forwarder, airline and CTO can use to benefit from CSD & eCSD. And now that it is an IATA Resolution, the industry has a clear obligation to commence using CSD & eCSD.
How much does it cost and how is it priced (ie, per screen/user or per organisation)? We’re still in the process of finalising the commercial model. There will be more information on that at a later stage.
Who developed the solution? The solution has been designed and fully developed here in Australia, by our industry specialists at CCN, and with detailed consideration of our local process and requirements. Which on the basis of compliance management for Australian regulations really was vital. Having said that, there is certainly potential for the use of Cargo Guardian in other countries, which is something we are currently exploring. How is the system accessed? Does it require an equipment upgrade? The solution is fully internet based, and accessible over multiple platforms such as traditional browsers as well as tablets and smart phones. Having said that, there is also comprehensive integration with the existing industry process of data transfer, via FWB, from an input and output perspective. And we also plan to further develop integration with the various sectors.
Is training necessary and is it available? Whilst the solution is naturally very intuitive, as with anything new, there is always some level of training required. This will all be delivered on-line for efficiency for us and the customers.
Did CCN operate a test phase prior to launch? Absolutely. And we are to some degree still in a test phase. But the system has been processing live production data from across the industry for a number of months now.
Was there any feedback on the test phase? Yes. It has been very positive indeed. The solution has been presented to numerous key players across the industry, from airlines to CTOs, forwarders, RTOs, associations and regulators. I think everyone can see the potential and the benefits that it brings industry. We were also most encouraged that Cargo Guardian was highly regarded in the recent IATA Global Air Cargo Innovation Awards announced last month at the IATA WCS in Shanghai. We made the top 5 innovations across the industry globally, which considering our submission was only lodged at the 11th hour, was quite an achievement we think, and a credit to our design and development teams.
What has the take up been so far? We are most encouraged, but like anything new, it will take a while for the full potential to be realised. But we have invested a great deal in this solution, which we would not have done without an absolute confidence in its future. Cargo Guardian actually places the Australian air cargo industry in an enviable position where it could lead the industry globally on the takeup of CSD and eCSD. Within a matter of weeks (from now), Australia could be leading the entire industry on CSD and eCSD compliance. Now that would be a good thing we think.
WITH Australia’s economy under pressure, it’s a little surprising the federal government has found A$1 billion or so in cash to buy two further C-17 strategic lift freighters and associated equipment for the RAAF.
As coincidence would have it, Australia’s Kiwi cousins are also looking at a possible C-17 Globemaster III purchase to the extent that parliamentary committee members took a familiarisation flight earlier this year in an RAAF machine visiting Wellington to deliver Aussie sandstone for a war memorial.
The flurry of trans-Tasman interest in the C-17 is all the more surprising because Boeing is about to pull the plug on its production line in Long Beach, California after a quarter century.
Military freighters are of major importance to both Australia and NZ. There’s a strong cross-over with civilian air cargo, too. One example was an RNZAF Hercules hauling an elephant to Niue for quarantine, as we reported earlier, trans-shipping from Auckland after a long-haul flight from Sri Lanka.
Air forces have logistics infrastructure akin to civilian and personnel often move to the civil sector after a military stint. In addition to using military freighters for peace-keeping and other military duties, Australia and NZ are generous in their response to natural calamities as seen in recent weeks as aircraft shuttled to and within Vanuatu helping rebuild communities damaged and traumatised by a super-cyclone.
With our traditions of helping others, tactical and strategic airlift capabilities are essential.
But spending A$1 billion on boosting the C-17 fleet to eight seems a contender for the warm and fuzzy ‘like to have’ category when up against a sluggish – at best – economy and cuts in budgeting for other equally or more essential services.
An alternative would be to lease capacity when a major emergency arises. After all, there are a vast number of freighters not committed to scheduled services and a range of private operators with good track records in flying humanitarian operations for the UN and non-governmental agencies.
Australia already does contract out some government services such as using Skytrader A319s for Antarctic passenger/cargo, refugee transfer and occasional VIP flights.
Other carriers like Alliance also handle refugee work and a variety of operators, mostly using foreign-registered aircraft, have undertaken military charters during the past 10-15 years.
NZ at least is having a spirited argument about how to get the biggest bang for the budgetary buck, keeping that budget tight from conceptual planning through to delivery. It would like to secure one type to replace the C-130Hs and the B757s used for a variety of tasks. One possibility is the A400M, which Airbus is promoting enthusiastically. It has commenced a ‘hearts and minds’ advertising campaign in NZ, touting the type’s multi-faceted abilities.
The campaign is perhaps a good reminder that this isn’t ‘government’ money that’s being spent – it’s money earned and paid by taxpayers. In other words: Us as individuals and commercial entities. - Kelvin King
AS signalled in our daily e-news service and weekly e-newsletters, two significant new Customs regulations came into effect on April 1, tidying up cobwebby predecessors that date back to 1926.
The Australian Customs & Border Protection Service (CBP) has now issued the anticipated notice explaining what they mean to importers, exporters, forwarders and brokers.
What are known as ‘exposure drafts’ of Customs Regulation 2015 (2015 Regulation) and Customs (International Obligations) Regulation 2015 (International Obligations Regulation) were published earlier in the year.
Alison Neil, acting assistant secretary for CBP’s Customs and Industry branch said they repeal redundant provisions, simplify language and restructure provisions that were difficult to navigate in the 1926 regulations.
The regulations had to be reworked for a constitutional reason, too. The Legislative Instruments Act 2003 – known rather whimsically as LIA – provides that all legislative instruments, other than exempt instruments, progressively sunset according to a pre-determined schedule.
“The purpose of this is to ensure that a suitable review mechanism exists so that legislative instruments remain relevant, necessary and fit for purpose,” said Neil.
In the case of the Customs regulations, they were due to go down with the sun on April 1, so action was essential.
They are not hugely different to their predecessors but Neil points out they have a “different look and feel”.
CBP has prepared explanatory guides to help users become comfortable with them.
Neil explained that if industry is applying for a refund of customs import duty, the refund reason codes provided in the ICS remain the same for now.
“You should continue to use these when applying for a refund through either the ICS or a manual application form. However, it is important that you note that the refund reason codes are no longer a shorthand for the location of a refund reason in a particular paragraph in the regulation. The new section numbering means the location of the refund reason types within the new regulations differ from their location within the 1926 regulations.” More detail is given in a fact sheet available online.
Some transitional provisions are in place to ensure the crossover is seamless.
The Customs notice gives as an example the payment of a warehouse licence fee under section 50B of the 1926 regulations. That will be taken to have been paid in accordance with regulation 37 of the 2015 regulations.
Forms and statements approved under the old regulations will similarly transition into the new regime under an umbrella of benevolent acceptance. Where forms and statements contain references to the 1926 regulations, CBP expects users will have little difficulty in coping with the temporary duality, simply by using good sense.
Neil said: “We are currently reviewing this material and will be making the appropriate changes over time”.
Another air freight industry stalwart will hit the half-century mark next month. And he’s not planning to throw in the towel just yet, writes John Newton.
Borje Lindmark follows in the footsteps of Wexco Aviation Services trio David Williams, Russell Freeman and former WA cargo manager Geoff Lord, who all notched up 50 years in the industry last year.
Now it’s the turn of MCH Aviation Holding chairman Lindmark, who achieves the milestone on 01 May. “I honestly don’t know how long I will continue. I still enjoy the different daily challenges – there’s never a dull moment,” he said.
After completing National Service in the Swedish military, Lindmark started his first job in the air cargo industry in May 1965, working as a cargo officer/load planner for Scandinavian Airlines in Stockholm. He later worked for a freight forwarder before moving to Australia in 1967.
On arrival in Sydney, he resumed his career in the freight forwarding industry, managing air export operations for Airborne Meadows there before transferring to Melbourne to manage its air freight import/export operations.
In 1970 – the year that Tullamarine airport opened - he began a long Australian career as a cargo reservations agent with Pan American Airways when he was one of only a handful of air cargo workers in Melbourne. “Then, there were only three main cargo carriers – Pan Am, Alitalia and Qantas – and there’s only one of them left now. “1970 was also the year when the first B747 transpacific services commenced, increasing the importance of air cargo as a substantial revenue earner. These included the first freighter operations from Australia to the US and Europe,” he said.
Lindmark remained with Pan Am for more than 15 years before moving to United Airlines which started services to Australia in 1986.
It was while he was with United that flower power became a big freight export story for the airline – and in particular for Lindmark, by then its Melbourne-based cargo manager cargo sales and operations.
The carrier had seen a strong demand for flower exports from Victoria to Los Angeles since the early 1990s when it was exporting around 100 boxes a year, each weighing 15-20 kgs. By 2006, this figure had shot up to 1000 boxes – the equivalent of a 20-tonne cargo payload on a B747. This achievement resulted in Lindmark being awarded United Pacific Division Sales Person of the Year.
According to Lindmark, the start up of operations in Melbourne by Menzies in the late 1990s sparked a major change in the air cargo industry at Tullamarine. “The move by Menzies to set up a purpose-built cargo building – at the time the only major expansion in Melbourne since 1970 – increased competition and vastly improved the service level to customers on our behalf. It lifted the freight game to new levels of expertise, as well as creating additional capacity.”
Lindmark has worked on narrow-body aircraft to wide-body B747s and freighters with 100-tonne capacity. “Aircraft cargo capabilities have changed dramatically since the first freighter aircraft I handled as a load planner. It was a DC-3 with a payload capacity of just 6500kgs, or a little more than the current LD7 pallet of 4500 kgs. The size and capabilities of today’s aircraft is simply mind-boggling, considering what it was like in the 1960s prior to the B747 and other wide-body aircraft.
Asked whether the industry had changed for the better over the years, Lindmark – who turns 70 this year – said: “The changes have not always been for the better. In the early years, people worked together much better.”
On much-needed industry improvements, he said there currently are not sufficient formal training opportunities for new entrants to learn the basics and understand the technical capabilities of aircraft. “Therefore, what is needed is additional formal training, including for Safety/DGR, and also understanding of rules and regulations of different countries and cultures.”
However, he rejected any suggestion that Australia was lagging behind in any world wide aspects of the air cargo industry: “Sure, it is not a large air freight market by world standards, but innovation, in particular finding ways to move perishable cargo such as crayfish, meat, fish and fruit to distant markets has been something that should be recognised, as it was a challenge at the time.
Lindmark joined MCH Aviation as chief executive officer in 2004 and was appointed a director of the company a year later. “In a very short time, MCH was established as a viable airline gsa and by the end of 2007 we had offices in all major Australian cities – ADL/BNE/MEL/PER/SYD – as well as AKL, with more than 30 employees.
“That growth has continued and we now represent 11 on and off line airlines,” added Lindmark who has been company chairman for the past three years.
If - and when - retirement becomes a reality, the MCH Aviation boss said he would miss the people and friends in the industry but would while away the hours walking on the beach with his partner. He will also visit family in Sweden.
The level of support for our FTA agenda seems to have peaked with the completion of the China FTA (to be known as the ChAFTA), as part of the Asian FTA ‘Trifecta’, writes Andrew Hunt.
However that trend has been abruptly reversed by the recent public debate about the merits of Australia entering into the Trans Pacific Partnership Agreement (TPPA). There has been a marked increase in antagonism towards the TPPA with its opponents taking to public forums with a wide variety of objections formed without the benefit of the text itself. The debate has been so intense and exhausting that the ABC even resorted to interviewing me (in my capacity as a director of the Export Council of Australia) to seek my views on the TPPA, apparently hoping to provide an opposing position to those attacking the TPPA. Very disconcerting for all concerned, although I have been assured that my hair was the star of the entire segment.
So, with the interview having omitted the ‘good stuff’,. I thought it would be a good idea to address some of the comments regarding the FTA agenda broadly and specifically the TPPA
• No FTA will be perfect. An FTA is like any other agreement in that it reflects the relative desires of the parties to the agreement and their ability to achieve those outcomes. In that context, Australia, with its largely open economy and with low levels of tariffs, does not have much to negotiate. Accordingly that limits the capacity of Australia to secure comprehensive outcomes that satisfy the interests of all parties. In regional FTAs with major trading partners such as the TPPA, our ability to influence the agenda is very limited – the major trading partners will dictate the majority of the agenda.
• Australia has largely done well in its negotiated FTAs, especially in the Asian FTA Trifecta. In particular, securing the deal with China under the ChAFTA appears to be a wonderful achievement. That said the ongoing delay in sighting the text of the ChAFTA is frustrating and begs the question as to what deal had actually been secured to support the announcements of the deal in November last year.
• I do not subscribe to the conspiracy theories that Australia has sold out vital national interests in the TPPA. For a start, we have no text to support that theory. Plus, if we were to have relinquished fundamental interests then we would have done so previously to get the FTA negotiation agenda moving.
• Successive Federal Governments have been accused of secrecy in negotiations on its FTAs, especially in relation to the TPPA. I believe that there has been extensive consultation on the TPPA with interested parties in Australia to the extent possible given the reasonable expectations of secrecy of the other negotiating parties. It is unlikely that any negotiation between sovereign nations could succeed if their progressive positions and the text of their negotiations (in draft only) were subjected to ongoing criticism.
• The inclusion of an Investor – State Dispute Resolution Provision (or ISDS) is probably a likely outcome and has been included in other FTAs to date. There are merits to its inclusion including merits to Australian exporters operating overseas and we have successfully “carved out” sensitive areas from other ISDS provisions. No reason to believe that we cannot do so now, especially given the need by the US to include such a provision
• Experience suggests that we reserve our rights on sensitive areas. We still retain anti - dumping and countervailing provisions, along with FIRB review and our biosecurity regime. These are positions respected and adopted by other parties to the TPPA so we can expect similar outcomes.
• The TPPA includes countries such as Canada, Peru and Mexico with whom we do not have FTAs and may not have secured FTAs on a bilateral basis for some time.
• The TPPA includes us in important regional supply chains and affords economies of scale that we may not have been able to secure in other ways
• While there is no need for Parliamentary approval as in the US, such deals are subject to review by a number of Parliamentary Committees. It is surprising how few submissions are made to such reviews
• While massive, the TPPA only includes 12 countries. The next big regional deal is the Regional Economic Comprehensive Economic Partnership Agreement (RCEP) with 28 countries, including China. This is still being actively negotiated and yet there has yet to be any concerns regarding the RCEP. Many of those who object to US influence under the TPPA similarly object to the influence of China under ChAFTA, yet there has been no outcry to date.
All things considered, on current ‘exposed form’, our FTA agenda including the TPPA represents the best efforts of successive governments, working toweards what they see as the best interests of Australia. It’s not perfect but it may reflect our real position in the world. If people feel otherwise then they should say so but in a constructive and not relentlessly negative manner.
Andrew Hudson Partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
FOR the first time, Infrastructure Australia will identify priorities before governments have made their decisions, according to Infrastructure minister and deputy prime minister Warren Truss.
Speaking at the Australian Logistics Council’s annual dinner, Truss said: “It was one of our key stated goals for reform of Infrastructure Australia that it gets ahead of the game.”
Quoting his departmental infrastructure secretary Mike Mrdak, Truss said: “There is also a need not just to focus on the dollars to be spent but also to accurately convey the impact of the problems we are trying to fix and the benefits of fixing those problems and pinch points.”
This was raised during the annual dialogue held earlier this year between the council and department. Truss said the 2015 discussion focused on deregulatory opportunities, current priorities of IA and – crucially for air cargo – better integration of the freight system across different transport modes.
The minister noted his department’s Bureau of Infrastructure, Transport & Regional Economics had pointed to an 80 per cent rise in Australia’s freight task over the next 15 years and a 300 per cent rise by 2050.
The federal government’s A$5 billion asset recycling initiative would, claimed Truss “show how mature assets can continue to serve the public while providing an impetus to the next generation of infrastructure projects”.
He pointed to the soon-to-be-released IA audit of nationally significant infrastructure. A recent addition to this work has been a review of the inter-generational report published early last month by the federal treasurer. The review will ensure the audit takes into account the impact projected population statistics will have on infrastructure assets.
This audit will be open for submissions before work proceeds much further on IA’s 15-year plan of infrastructure priorities. Truss commented that recent experiences across jurisdictions show that when communities are properly informed on infrastructure plans, it is possible to gain broad public support.
“I think we are starting to get there on long-vexed projects like the Western Sydney Airport, making sure the public know what is planned and giving them their say.
“And as we all know, public support is critical to getting the job done - especially in a very tight fiscal environment.”
Truss pointed out that “as the longest and largest mining boom in Australian history tapers off, we can no longer rely on increasing terms of trade to sustain our economic growth. The boom helped to fund an unprecedented level of government and private spending on new infrastructure.
“This record sustained level of investment has meant thousands of kilometres of new and upgraded roads and railways, new and expanded airports, seaports, hospitals and schools, better water infrastructure and vast new communication networks.”
These were investments in Australia’s future that would continue to pay dividends for decades to come, he said. But while infrastructure investments had grown substantially for many years, productivity had languished in recent times, the minister warned.
“Over the decade to 2013, total factor productivity essentially flat-lined and actually fell in 2013 - the worst performance of 15 countries compared by the Productivity Commission,” Truss noted.
“We have relied on rising export prices for too long. Now, more than ever, we need to be firmly focused on growing our national productivity.
“Without reforms to our economic settings, Australia risks falling behind in the world market.” Australia had to do more with less, he said bluntly, refocusing its attention on maintaining and upgrading existing transport infrastructure.
“We will need to look more closely at the micro economic reforms and regulations needed to underpin productivity growth.”
One of the government’s election commitments had been a promise to reduce red tape costs to business by A$1 billion annually.
The target was achieved in the first year and is looking even better for this, he claimed.
However, said Truss, there was no intention of slowing down on “game-changing long-term projects” like the Western Sydney Airport and inter-modal hubs.
What is Infrastructure Australia and why? REBORN last year as a statutory authority, Infrastructure Australia (IA) covers all forms of transport and logistics including airports and air cargo. While road, rail and maritime transport tend to get more focus from the body and from the infrastructure sector generally, this is also important to air cargo in terms of inter-modal supply paths and the essential factor of airport road access.
It was reconstituted following the proclamation of the Infrastructure Australia Amendment Bill 2014.
IA’s first fully-fledged ceo Philip Davies has this month taken up his new duties.
He replaces John Fitzgerald, who played a key role in establishing the new format, initially as interim infrastructure coordinator and then from April last year as acting ceo. IA board members have been drawn from business, professions and academia, with both public and private sector backgrounds.
Some have hands-on experience in air transport.
First major tasks for IA are completion of the comprehensive audit of existing national infrastructure and the development of a 15-year national infrastructure plan.
The plan will cover Australia’s current and future infrastructure needs, means of financing and delivering infrastructure, and ideas for better planning and use of infrastructure networks.
Davies comes from a strong infrastructure sector background, in Australia and internationally.
“This is an exciting opportunity, working closely with our state and territory colleagues, to shape the long term plan for Australia’s infrastructure,” he said on appointment. “We can develop the evidence base to support the investment priorities for nationally significant infrastructure.”
TERRORISM and security threats to flights have resulted in global aviation organisations ICAO and IATA creating improved tracking systems for cargo. The Consignment Security Declaration (CSD) - and in particular the eCSD - provides regulators with an audit trail of how, when and by whom cargo has been secured along the supply chain. Its objective is to meet International Civil Aviation Organisation (ICAO) requirements, ensuring that each consignment received by an aircraft operator or a regulated agent comes with standardised documentation, either on the air waybill or on a separate declaration. To avoid a plethora of different security declarations, the International Air Transport Association (IATA) - in cooperation with the industry and regulators – has developed a standard CSD and an electronic version , the eCSD. Australia too is reviewing the new legislation and regulations which have seen CSD and eCSD recently upgraded to full IATA Resolution 651. To meet the new regulatory requirements, Cargo Community Network (CCN) has developed new integrated software to assist the various sectors of industry particularly CTO’s and airlines. AirCargo Asia-Pacific spoke to Scott McCorquodale, general manager Australia and New Zealand for CCN (pictured), to find out how the new software is different and why it deserves further examination.
AirCargo Asia-Pacific: What is the new software program called and what are its benefits to forwarders? Scott McCorquodale: The new solution is called Cargo Guardian. The solution provides benefits across the industry in the area of compliance management for safety and security. As you know, both CASA and OTS here in Australia have quite comprehensive programs in relation to their areas of responsibility. But there can at times be challenges for industry in managing their compliance. Things such as Dangerous Goods Acceptance Training, and Security Awareness Training are two in particular. Cargo Guardian is a tool to help forwarders stay on top of these requirements, by monitoring when training expires, and keeping staff fully informed. The training organisations (RTOs) who provide training to industry will also receive a benefit from the solution, as they also have access and a role to play. We also verify the industry against the RACA list published by OTS on a daily basis, so that all CTOs and airlines can be assured that they are always receiving cargo from valid RACAs. Oh, and by the way, Cargo Guardian is also a comprehensive solution for industry to implement the IATA CSD and eCSD, under IATA Resolution 651, integrating with existing technical process for data re-use. So there really are multiple benefits.
You mentioned IATA CSD and eCSD. How does it help with that ? Well, IATA has been promoting the standard security declaration (CSD) and eCSD for a while now, and up until now it has been a ‘Recommended Practice’. There is clearly a lot of support for the concept of the industry-standard Cargo Security Declaration (CSD), and in particular the electronic version of that, the eCSD. That support comes from the likes of FIATA, the WCO, GACAG and so forth, as well as regulators in various countries. One of the issues we see is that at the forwarder, GHA and airline sides, there are varying capabilities with generation and acceptance of CSD/eCSD, and full industry-wide capability will take some time. With Cargo Guardian, we have a solution that forwarder, airline and CTO can use to benefit from CSD & eCSD. And now that it is an IATA Resolution, the industry has a clear obligation to commence using CSD & eCSD.
How much does it cost and how is it priced (ie, per screen/user or per organisation)? We’re still in the process of finalising the commercial model. There will be more information on that at a later stage.
Who developed the solution? The solution has been designed and fully developed here in Australia, by our industry specialists at CCN, and with detailed consideration of our local process and requirements. Which on the basis of compliance management for Australian regulations really was vital. Having said that, there is certainly potential for the use of Cargo Guardian in other countries, which is something we are currently exploring. How is the system accessed? Does it require an equipment upgrade? The solution is fully internet based, and accessible over multiple platforms such as traditional browsers as well as tablets and smart phones. Having said that, there is also comprehensive integration with the existing industry process of data transfer, via FWB, from an input and output perspective. And we also plan to further develop integration with the various sectors.
Is training necessary and is it available? Whilst the solution is naturally very intuitive, as with anything new, there is always some level of training required. This will all be delivered on-line for efficiency for us and the customers.
Did CCN operate a test phase prior to launch? Absolutely. And we are to some degree still in a test phase. But the system has been processing live production data from across the industry for a number of months now.
Was there any feedback on the test phase? Yes. It has been very positive indeed. The solution has been presented to numerous key players across the industry, from airlines to CTOs, forwarders, RTOs, associations and regulators. I think everyone can see the potential and the benefits that it brings industry. We were also most encouraged that Cargo Guardian was highly regarded in the recent IATA Global Air Cargo Innovation Awards announced last month at the IATA WCS in Shanghai. We made the top 5 innovations across the industry globally, which considering our submission was only lodged at the 11th hour, was quite an achievement we think, and a credit to our design and development teams.
What has the take up been so far? We are most encouraged, but like anything new, it will take a while for the full potential to be realised. But we have invested a great deal in this solution, which we would not have done without an absolute confidence in its future. Cargo Guardian actually places the Australian air cargo industry in an enviable position where it could lead the industry globally on the takeup of CSD and eCSD. Within a matter of weeks (from now), Australia could be leading the entire industry on CSD and eCSD compliance. Now that would be a good thing we think.
WITH Australia’s economy under pressure, it’s a little surprising the federal government has found A$1 billion or so in cash to buy two further C-17 strategic lift freighters and associated equipment for the RAAF.
As coincidence would have it, Australia’s Kiwi cousins are also looking at a possible C-17 Globemaster III purchase to the extent that parliamentary committee members took a familiarisation flight earlier this year in an RAAF machine visiting Wellington to deliver Aussie sandstone for a war memorial.
The flurry of trans-Tasman interest in the C-17 is all the more surprising because Boeing is about to pull the plug on its production line in Long Beach, California after a quarter century.
Military freighters are of major importance to both Australia and NZ. There’s a strong cross-over with civilian air cargo, too. One example was an RNZAF Hercules hauling an elephant to Niue for quarantine, as we reported earlier, trans-shipping from Auckland after a long-haul flight from Sri Lanka.
Air forces have logistics infrastructure akin to civilian and personnel often move to the civil sector after a military stint. In addition to using military freighters for peace-keeping and other military duties, Australia and NZ are generous in their response to natural calamities as seen in recent weeks as aircraft shuttled to and within Vanuatu helping rebuild communities damaged and traumatised by a super-cyclone.
With our traditions of helping others, tactical and strategic airlift capabilities are essential.
But spending A$1 billion on boosting the C-17 fleet to eight seems a contender for the warm and fuzzy ‘like to have’ category when up against a sluggish – at best – economy and cuts in budgeting for other equally or more essential services.
An alternative would be to lease capacity when a major emergency arises. After all, there are a vast number of freighters not committed to scheduled services and a range of private operators with good track records in flying humanitarian operations for the UN and non-governmental agencies.
Australia already does contract out some government services such as using Skytrader A319s for Antarctic passenger/cargo, refugee transfer and occasional VIP flights.
Other carriers like Alliance also handle refugee work and a variety of operators, mostly using foreign-registered aircraft, have undertaken military charters during the past 10-15 years.
NZ at least is having a spirited argument about how to get the biggest bang for the budgetary buck, keeping that budget tight from conceptual planning through to delivery. It would like to secure one type to replace the C-130Hs and the B757s used for a variety of tasks. One possibility is the A400M, which Airbus is promoting enthusiastically. It has commenced a ‘hearts and minds’ advertising campaign in NZ, touting the type’s multi-faceted abilities.
The campaign is perhaps a good reminder that this isn’t ‘government’ money that’s being spent – it’s money earned and paid by taxpayers. In other words: Us as individuals and commercial entities. - Kelvin King
AS signalled in our daily e-news service and weekly e-newsletters, two significant new Customs regulations came into effect on April 1, tidying up cobwebby predecessors that date back to 1926.
The Australian Customs & Border Protection Service (CBP) has now issued the anticipated notice explaining what they mean to importers, exporters, forwarders and brokers.
What are known as ‘exposure drafts’ of Customs Regulation 2015 (2015 Regulation) and Customs (International Obligations) Regulation 2015 (International Obligations Regulation) were published earlier in the year.
Alison Neil, acting assistant secretary for CBP’s Customs and Industry branch said they repeal redundant provisions, simplify language and restructure provisions that were difficult to navigate in the 1926 regulations.
The regulations had to be reworked for a constitutional reason, too. The Legislative Instruments Act 2003 – known rather whimsically as LIA – provides that all legislative instruments, other than exempt instruments, progressively sunset according to a pre-determined schedule.
“The purpose of this is to ensure that a suitable review mechanism exists so that legislative instruments remain relevant, necessary and fit for purpose,” said Neil.
In the case of the Customs regulations, they were due to go down with the sun on April 1, so action was essential.
They are not hugely different to their predecessors but Neil points out they have a “different look and feel”.
CBP has prepared explanatory guides to help users become comfortable with them.
Neil explained that if industry is applying for a refund of customs import duty, the refund reason codes provided in the ICS remain the same for now.
“You should continue to use these when applying for a refund through either the ICS or a manual application form. However, it is important that you note that the refund reason codes are no longer a shorthand for the location of a refund reason in a particular paragraph in the regulation. The new section numbering means the location of the refund reason types within the new regulations differ from their location within the 1926 regulations.” More detail is given in a fact sheet available online.
Some transitional provisions are in place to ensure the crossover is seamless.
The Customs notice gives as an example the payment of a warehouse licence fee under section 50B of the 1926 regulations. That will be taken to have been paid in accordance with regulation 37 of the 2015 regulations.
Forms and statements approved under the old regulations will similarly transition into the new regime under an umbrella of benevolent acceptance. Where forms and statements contain references to the 1926 regulations, CBP expects users will have little difficulty in coping with the temporary duality, simply by using good sense.
Neil said: “We are currently reviewing this material and will be making the appropriate changes over time”.
After completing National Service in the Swedish military, Lindmark started his first job in the air cargo industry in May 1965, working as a cargo officer/load planner for Scandinavian Airlines in Stockholm. He later worked for a freight forwarder before moving to Australia in 1967.
ts of Australia. It’s not perfect but it may reflect our real position in the world. If people feel otherwise then they should say so but in a constructive and not relentlessly negative manner.
The minister noted his department’s Bureau of Infrastructure, Transport & Regional Economics had pointed to an 80 per cent rise in Australia’s freight task over the next 15 years and a 300 per cent rise by 2050.
TERRORISM and security threats to flights have resulted in global aviation organisations ICAO and IATA creating improved tracking systems for cargo. 
What are known as ‘exposure drafts’ of Customs Regulation 2015 (2015 Regulation) and Customs (International Obligations) Regulation 2015 (International Obligations Regulation) were published earlier in the year.
