Impact Publications : Aircargo_242
AirCArgo AsiA-PACifiC • APRIL-MAY 2016 • Page 3 Bilateral cargo security steps up a level, but new law in cold storage AUSTRALIA and NZ have put considerable work into enhanc- ing cargo security and process- ing arrangements with other countries such as Indonesia and China, as well as with each other. But legislation intended to crack down on major crime at Australian airports and maritime ports has unfortunately become a casualty of the Australian gov- ernment’s double dissolution of parliament. It was intended to come into force on July 1 this year, a fast-tracking that indicated its importance to the country. The Transport Security Amendment (Serious or Or- ganised Crime) Bill had its third reading in the House of Rep- resentatives on March 16 and moved to the Senate. It went to a second reading immediately and was referred to a senate committee. However, before the committee could report, prime minister Malcolm Turnbull asked the governor-general to prorogue parliament and then recall it to consider certain legislation, which did not include this bill. The subsequent double dissolution en- sured that senate committees ceased to exist and all current enquiries lapsed. In a normal general election process, senate committees are allowed to continue func- tioning, but not in this case. The bill probably will not die – it had been expected to get a green light from the Senate - but will have to be reconsid- ered by both the House and Senate, as they will be new entities both constitu- tionally and in membership. Serious concern. When it was passed by the lower house, Transport minister Darren Chester described it as “a critical step in securing our transport infrastructure against crime or future criminal influences”. Justice and counter-terrorism minister Michael Keenan said it delivered on a government commitment to strengthen the system. “All Australians have high expectations of individuals with access to secure areas of our airports, given that they are in positions of trust.” The official summary of the bill’s intent Roman Quaedvlieg and Heru Pambudi at the statement of intent signing in Canberra indicated it was to “prevent the use of aviation and maritime transport or offshore facilities in connection with serious or organised crime; establish a regulatory framework to im- plement harmonised eligibility criteria for the aviation secu- rity identification card (ASIC) and maritime security identifi- cation card (MSIC) schemes; clarify and align the legislative basis for undertaking security checking of ASIC and MSIC applicants and holders; provide for regulations to prescribe penalties for offences; and insert an additional severability provision to provide guidance to a court as to parliament’s intention.” Joint security progress Meantime, both Australia and NZ have been making good progress with bilateral security arrangements. Continued next page. Lower cargo yields hammer SIA Cargo performance SINgAPORe International Airlines Cargo reported a full year operating loss that widened by S$28 million com- pared to FY2014-15. While operating expenses dropped by S$168 million, mainly due to lower fuel costs, there was a S$196 million drop in revenue driven by yield erosion of 11.6 per cent that itself was partially offset by higher freight carriage (+2.6 per cent). SIA Cargo’s airfreight carriage (in load tonne-kilometres) increased 2.6 per cent year-on-year, lagging behind capacity expansion of 4.9 per cent. Load factor dropped 1.4 percentage points to 61.9 per cent. The carrier maintained a fleet of nine 747-400 freighters as at 31 March 2016. Two of the freighters are due to be returned to their owners upon expiry of operating leases during FY2016-17, reducing the fleet size to seven aircraft by the end of March 2017. Cargo ca- pacity is expected to grow 3-4 per cent through expanded belly-hold capacity in FY2016-17. Looking ahead, management says the outlook remains cautious for air cargo amid the economic slowdown in China and ongoing uncertainty sur- rounding the global economy. Coupled with ample capacity in the industry, yields remain under pressure. SIA Cargo will continue to focus on higher-yielding product segments.