Brussels Airport: Partner in the cool chain process

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1 Brussels Airport: Partner in the cool chain process Brussels, April 19 th 2012

2 Presentation Introduction Brussels Airport Strategy of Brussels Airport towards cargo Why pharma? Our role in the logistical process and what can we do 2

3 Brussels Airport: N, E 3

4 Area Facts Catchment area of almost 20 million people 60 min 90 min Belgium: 11.1 million population Cross border 8.1 million Belgium has one of the highest population densities in the world, cf Greater London 14 mio Paris / Ile de France 11 mio Ruhr area Germany 11 mio Randstad Holland 7 mio Infrastructure one of the world s highest density road networks one of the world s most dense railway networks 4

5 Catchment Area Brussels is centrally located in Europe s main economical area with excellent road connections to the rest of Europe. 5

6 Catchment Area (As per Seabury data) With a trucking time of max 8h from Brussels, more than 66% of the air cargo market in Europe is within easy reach. Irish Republic 1% Finland 1% Faroe Islands 0% Greenland 0% Greece 1% Iceland 0% Denmark 2% Sweden 3% Switzerland Portugal 1% Spain 3% 6% Norway 3% Austria 2% Italy 11% BRU Direct Catchment Area 66% 6

7 Aeronautical charges 7

8 Cargo tonnes (000) Brussels Airport and Brucargo Cargo volumes - More then 50% of flown cargo is on Full Freighter Aircraft - Loss in volumes is mainly due to move majority operation DHL combined with economical crisis in 2008/ Sabena bankruptcy & 9/11 Move DHL to Leipzig Bankruptcy Cargo B FC 2012 Passenger a/c Full freighter Integrator 8

9 Brussels Airport and Brucargo Largest full freighter operators - Full freighter aircraft transport majority of flown cargo - Trucked volumes are considerable (35%) huge potential!! Integrators 16% 100% = 218,517 ton Trucked cargo 35% Pax Aircraft 19% Singapore A. 25% Asiana 16% Korean 14% EVA 6% Cargo Aircaft 30% 100% = 736,500 ton 2011 figures Saudi Arabian 2 29% TNT 1% Other 0% Cathay Pacific 5% Royal Jordanian 2% RAM 2% 9

10 Presentation Introduction Brussels Airport Strategy of Brussels Airport towards cargo Why pharma? Our role in the logistical process and what can we do 10

11 Brucargo Masterplan Future of Brucargo Brucargo was created in 1980: First dedicated cargo area in Europe All stakeholders in one area together As a dedicated cargo airport in the Brussels Airport Brucargo : Still one of the only single cargo areas in Europe All stakeholders grouped but need for expansion and update Brucargo as of 2011: New cargo strategy by our Board and senior management Dedicated business unit and new approach towards cargo Above market growth Yearly nominated Air Cargo Excellence Award (ACW) 11

12 Brucargo Masterplan Future of Brucargo Cargo Business Unit further strengthened Resources: direct reporting to Head of Cargo iso matrix structure new staff: dedicated operations manager / marketing manager airlines / key account manager forwarders and other stakeholders / real estate manager for Brucargo make a difference on customer focus Reporting direct to Director Aviation Development More focus on cargo via dedication Head of Cargo Marketing Manager Operations Manager Key Account Manager Real Estate Manager 12

13 Brucargo Masterplan Future of Brucargo Cargo Business Unit further strengthened Financially: increased operational budget more than 20 million own investments for 2012 More resources to implement cargo strategy and focus on priorities Increase branding and awareness on the market 13

14 Brucargo Masterplan Future of Brucargo New warehouses online / offline / administrative building New handling facility direct ramp connected: 40,000 sqm New warehouse for forwarders in Brucargo West: 2 buildings totalling 35,000 sqm New buildings in central Brucargo: 15,000 sqm Update administrative building to today s standards 3 additional parking stands Apron East Implementation of Brucargo Secured Gateway 14

15 Brucargo Masterplan Future of Brucargo Our mission: Regain market share Connecting Brussels with all major gateways in the world: open direct full cargo routes to missing links and major gateways (South America / South Africa / China /... ) Reduce feeding to other airports and fly more cargo directly Yearly listed in the Air Cargo World Excellence Awards Forecast cargo volumes BRU Our aim is to connect Brussels with all major gateways in the world by direct flights so we can offer the world to our market and customers

16 Brucargo Masterplan Our role at Brucargo What we as an airport should do: Make sure that all stakeholders can do their job better tomorrow Make sure that all stakeholders can do more work tomorrow Make sure that all stakeholders see a long term future at Brucargo How can we do this: Be a facilitator at the airport Bring parties together to do business Customer intimicy: your problems are and should be our problems Get some USP: what are we known for in the market? For who do we do this (or who are our customers?): For all our cargo customers and stakeholders Airlines are important for an airport, but are only a part of the logistical process More focus and attention to those generating cargo: shippers (commodities) and forwarders (individual companies) 16

17 Brucargo Masterplan Future of Brucargo Partnerships to create excellence in service and focus on our strengths 17

18 Brucargo Masterplan Future of Brucargo Our USP to the market: 1) Customer Intimicy We are there for our customers and thanks to our customers We do what is needed for our customers We see Brucargo as part of the logistical process and not as part of the airport 2) Pharmaceuticals Controlled processes at Brucargo as far as cool chain is concerned Necessary infrastructure for all types of cargo by all players Certification and auditing 18

19 Presentation Introduction Brussels Airport Strategy of Brussels Airport towards cargo Why pharma? Our role in the logistical process and what can we do 19

20 2011 Cargo Volumes Cargo growth in 2011 in Europe 10% 8% 6% 4% Europe 2% 0% Export Import -2% -4% 20

21 2011 Cargo Volumes Cargo growth in 2011 in Europe and Belgium 14% 12% 10% 8% 6% 4% Europe Belgium 2% 0% -2% Export Import -4% 21

22 2011 Cargo Volumes Export and import commodity Europe 25% 20% 15% 10% 5% 3% 0% 22

23 2011 Cargo Volumes Pharma in Belgium Cargo volumes Europe Belgium % Total % Pharma % % 3% 6% Belgium is good for 5% of all air cargo in Europe and for 11% of all pharma by air in Europe 3% of total cargo is pharma in Europe. For Belgium this is 6% 23

24 2011 Pharma Volumes Pharma growth in 2011 in Europe 18% 16% 14% 12% 10% 8% Europe 6% 4% 2% 0% Export Import 24

25 2011 Pharma Volumes Pharma growth in 2011 in Europe 80% 70% 60% 50% 40% Europe Belgium 30% 20% 10% 0% Export Import 25

26 Why pharma? Why pharma: - Twice as important in Belgium as rest of Europe - Spectacular growth figures in Belgium last year, much better than European average - Commodity with above average growth expected in next years - Given as an important factor by our full cargo airlines to operate to Brussels - Better yields for our stakeholders - USP that allows us to position ourselves on the market - Although only 6% of total market, same procedures and facilities can be used for all cool chain products (13% in Europe) 25% 20% 15% 10% 5% 3% 0% 26

27 Presentation Introduction Brussels Airport Strategy of Brussels Airport towards cargo Why pharma? Our role in the logistical process and what can we do 27

28 Our pharma projects Our aim: We want to be recognized by the industry as the pharma gateway in Western Europe. This means: - All our stakeholders have to be recognized accordingly - We need to be able to guarantee the processes at the airport by every individual player as well as between players - We need to have the necessary infrastructure in place - We want to be in the frontline when it comes to new initiatives and technology to be implemented or tested As an airport, we try to facilitate and push were necessary. We will support our stakeholders when making investments, on promotion and marketing. In case of conflicting situations, it will be our role to intermediate between different parties. 28

29 Our pharma projects 2 important initiatives were started: 1) Discuss with IATA on how to become a strategic partner - Be closely involved on regulation and development - Discuss on auditing and certification process for cool chain - Get BRU in the forefront when the auditing starts 2) Study of GPRS tracking in air freight - Study for the first time of the hole chain, not with focus on were it went wrong but how we can solve issues - Find bottle necks in the process - Investigate were updated infrastructure is needed - Set up procedures between the different parties so necessary action is taken at all time and known by all in the chain 29

30 Our pharma projects 1) Certification - Everybody in the industry is auditing: shipper, agent, airline,... time consuming and very expensive - Based on needs of industry and all stakeholders, can we facilitate to come to a centralised auditing system and procedure. One neutral and independent audit and certificate accepted by all to show cool chain capabilities. 1 certificate 30

31 Our pharma projects 2) GPRS in air cargo - 18 month study done by VIL - Involvemend of all airport players involved in the chain - Test different kinds of equipment, but more important to detect bottle necks, improve infrastructure, set up procedures (how to do things and who to react when in case things go wrong). Offering all shippers a relax mood when their cargo flies via Brussels Airport 31

32 Thank you! The Cargo Business Unit at Brussels Airport is ready to assist you with any further questions or support. For more information, please contact: Steven Polmans Head of Cargo Phone: Mobile: steven.polmans@brusselsairport.be / 32

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