The presentation made during the air cargo panel, which was conducted in the scope of COMCEC funded project. For more info do not hesitate to contact me.

1. Alper AKBAŞ Project Coordinator
2015 TURTRANS 173
2014 TURTRANS 045 PROJECT INTRODUCTION

2. CONNECTIVITY IS POWER
5th MOST CONNECTED CITY of theWORLD
WELCOME TO ISTANBUL
The Natural Hub of the World
1st Istanbul has the largest connectivity growth in last 5 years
Source: Master Card Global Destination Cities Index 2014, 2015

3. WHY AVIATION?

4. Why we need to focus on aviation?
CIVIL AVIATON’S ECONOMIC IMPACT
GLOBAL JOBS SUPPORTED IN
THE WORLD58M
TRILLION
GDP$2.4
OF WORLD’S GDP%3.4
GLOBAL JOBS SUPPORTED IN
THE WORLD 105M
TRILLION
GDP $6
TODAY
IN 20
YEARS
%4.1OF WORLD’S GDP
As the second largest inter-governmental organization with 57 states over the continents,There is no doubt
that we are influenced by “Civil Aviation’s Economic Impact” intensely.

5. q
FINANCE
CONSTRUCTION
AUTOMOTIVE
AVIATION
$3.25
$2.9
$2.3
$1.4
$3.25$1 =
CIVIL AVIATON’S ECONOMIC IMPACT - Multiplier Effect

6. Industries’ GDP Contributions
CIVIL AVIATON’S ECONOMIC IMPACT

7. 1971 2031
1965 2030
AirTransportation Center of Gravity is shifting into the Islamic World.
Are we ready to embrace it and benefit from it?
?
CENTER OF GRAVITY - AVIATION & ECONOMY
Source: Airbus GMF 2012 & Oxford Economics
Shift in Air Traffic Center of Gravity
Between 1971-2031
Shift in Economic Center of Gravity
Between 1965-2030

8. 10% increase in
global connectivity
$55 billion increase
in global outputs each year
If global airport capacity
fails to keep up with
travel demand
2 million jobs, 225
million pax, $110
billion revenue will be
lost by 2035
If aviation were a country,
it would rank 21st in size
by GDP
Why we need to focus on aviation?
CIVIL AVIATON’S ECONOMIC IMPACT

9. What happens
If the demand&supply equilibrium
of aviation / airports fails
?

10. 8.7 Millions
DIRECT EMPLOYMENT
470 K
AIRPORT OPERATORS
5% 58.1Supported Total
Employment
MILLION
AIRLINES
2,3 Million 26%
ANS
195 K2%
Production & AeroSpace
1,2 Million14%
OTHERS
CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

11. 8.7 Millions
DIRECT EMPLOYMENT
470 K
AIRPORT OPERATORS
5% 58.1Supported Total
Employment
MILLION
AIRLINES
2,3 Million 26%
ANS
195 K2%
Production & AeroSpace
1,2 Million14%
OTHERS
%26
Airline
%5Airport
Operators
%16
ANS
+
Producers
%53
?
%47
CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

12. 8.7 Millions
DIRECT EMPLOYMENT
470 K
AIRPORT OPERATORS
5% 58.1Supported Total
Employment
MILLION
53%
4,6 MILLIONS
AIRLINES
2,3 Million 26%
ANS
195 K2%
Production & AeroSpace
1,2 Million14%
OTHERS
%26
Airline
%5Airport
Operators
%16
ANS
+
Producers
%53
?
%47
AIRPORTS OTHER
CIVIL AVIATON’S ECONOMIC IMPACT - EMPLOYMENT

13. More than 55 Countries
%70 of International Destinations
with Narrow Body
ISTANBUL

14. Global Connectivity Development (2014-2016) - İstanbul vs. Major European Hubs
*Number of Direct Destinations (2014-2016)

15. Natural Hubs
Are they enough to achieve more?
OR ?
Do we have
to improve the processes?
Do we have to / can we
create Artificial Hubs?

16. Because…..!

18. 39 of 47 Aviation Mega Cities are schedule- constrained today.
IATA WSG level 3: airports where conditions make it impossible to meet demand
IATA WSG level 2: airports with potential for congestion
IATA WSG level 1: airport infrastructure is adequate

19. In The Islamic Geography
Leading Hubs and their feeders are already congested
!
IATA WSG level 3: airports where conditions make it impossible to meet demand

20. Türk Hava Kurumu ÜniversitesiSivil Havacılık ve İstihdam
EUROCONTROL: Challenges of Growth, 2013
With foreseen expansion planning taken into
account, it is predicted that:
• 12% of demand will be unaccommodated
• 1.9 million flights
• 237 million passengers
EUROPEAN AIRPORTS
2035

21. Türk Hava Kurumu ÜniversitesiSivil Havacılık ve İstihdam
EUROCONTROL: Challenges of Growth, 2013
With foreseen expansion planning taken into
account, it is predicted that:
• 12% of demand will be unaccommodated
• 1.9 million flights
• 237 million passengers
EUROPEAN AIRPORTS
If global airport capacity
fails to keep up with
travel demand
2 million jobs, 225
million pax, $110
billion revenue will be
lost by 2035
$110Billion
LOST
2035

22. Capacity Building in Airports
Measuring and Benchmarking of “PMPI
(Passenger Movement Performance Index)”
among the OIC countries.
2014
045
TURTRANS

23. 160 More than 160 face to face surveys
among departure passengers
398Passenger Reviews analyzed
on skytrax.com
1200More than 1200
Observed and measured passengers
DURINGall study visits
6 COUNTRIES , 6 STUDYVISITS, 6 MEETINGS

24. BENCHMARK SCALE
AIRPORT IATA CODE BENCHMARK SCORE
HAMAD INTERNATIONAL AIRPORT DOH 82
DUBAI INTERNATIONAL AIRPORT DXB 80
KUALA LUMPUR INTERNATIONAL AIRPORT KLIA 79
KUWAIT INTERNATIONAL AIRPORT KWI 78
ATATÜRK INTERNATIONAL AIRPORT IST 77
SOEKARNO-HATTA INTERNATIONAL AIRPORT CGK 72
0 1005025 75
PMPI SCORES

25. PMPI
PASSENGER MOVEMENT PERFORMANCE INDEX
“
“

26. According to ACI, the five measures of airports’ performance are:
• Passengers
• Origination and destination passengers,
• Aircraft movements,
• Freight or mail loaded/unloaded
• Destinations (non-stop)
And today airports are the performance indicators of cities,
countries and ECONOMIES…

27. Freight is important
because…

28. $ 3
million
$ 15
million
Air Passenger Lines Air Cargo Lines
1 Frequency per week

29. Airports are more important than ever
because…

30. 1/3 of World Population
4 Hours Flight
2/3 of World Population
8 Hours Flight
916 millions
Export Market
Population
25 Cities
P>10millions
149 Cities
P>1millions
DirectConnection

31. Non GVC Trade GVC TradeGVC and non-GVC trade in goods and services, 1995 and 2011, billion USD.
Source: IATA Value of Air Cargo, December 2016
NEW TREND OF GLOBAL TRADE :GLOBAL VALUE CHAINS
GVC
GVCs are complex, interlinked networks of cross-border and domestic flows of
goods, services, and factors of production (capital, including knowledge capital,
and labor).

32. KEEPINGTHE CENTER OF GRAVITY
21Passenger Traffic
INCREASE
Air Cargo Traffic
INCREASE
Passenger Flow Cargo Flow
2014TURTRANS045 2015TURTRANS173
Assessment and Enhancement of
Air Cargo Interconnectivity

33. 2015
173
TURTRANS
Assessment and Enhancement of Air Cargo
Interconnectivity Among the OIC Member States:
The Air Cargo Co-Modality Approach (ACCMA) to Facilitate
INTRA- OIC Trade.

34. 35% Air transport carries around 35% of
world trade by value.
$Value of cargo handled by air 6.4
Trillion
TOTAL AIR FREIGHTTRAFFIC GROWTH Airbus GMF 2015

35. Co-Modality Approach:
““efficient use of different modes on their own and in combination”
Intermodal / Multimodal Transport:
“movement of goods in one and the same loading unit or road vehicle, which uses
successively two or more modes of transport without handling the goods
themselves in changing modes” (train or ocean is obligatory)
Combined Transport:
“intermodal transport where the major part of the European journey is by rail, inland
waterways or sea and any initial and/or final legs carried out by road are as short as
possible”
2006
Before
Air Cargo Co-Modality Approach:
““efficient use of different modes on their own and in combination”
where the main mode is Air Cargo Transportation.
2016

36. To consolidate air freight (collected from catchment area) in an air cargo hub,
To convey the consolidated higher amount of freight via long or medium haul flights
operated by all cargo carriers or combined carriers to other regional airports or to
other hubs in order to deploy to ending nodes.
Air Cargo Hub and Spoke System fed by all transportation modes

37. THE METHODOLOGY - I
Desk Based Studies
• Detailed Analysis of air cargo flows and data: traffic, trade, capacity, commodities
• State-of-Affairs & Due Diligence
• Determination of the airports with high potential and strong catchment area
METHODOLOGY
Study Visits
• Malaysia
• Indonesia
• Tunisia
• Mozambique
Cooperation Meeting in Istanbul
• Share of findings
• Participation of study countries
• Cargo Facility Visits (THY & MNG)
Final Report
Online Tools

38. 0 5025
To provide an assessment and due-diligence of “Air Cargo Inter-
Connectivity” level of OIC airports and world airports for comparison via
“Air Cargo Interconnectivity Index”,
To identify some of the most appropriate locations among OIC member
states for the purpose of establishment of air cargo hubs and logistic
centers in the context of Air Cargo Co-Modality Approach,
To identify the challenges apropos regularity framework of air cargo
transportation among OIC member states, and by doing so to facilitate the
establishment of air cargo logistic centers,
EXPECTED OUTPUTS

39. 0 5025
To develop practical recommendations regarding regularity framework by
the preparation of an example “Multi-Literal Agreement” in order to
create a collaboration platform opportunity among member states.
To increase the awareness of decision makers of commercial entities
recorded in member states about the existence of potential air cargo
logistic centers.
EXPECTED OUTPUTS
The ultimate aim of the project is to create a common collaboration and
cooperation platform among OIC member states and relevant commercial
entities on air cargo transportation.

40. Opportunity for A New Cooperation
and Collaboration Platform
Increase in Air Cargo Connectivity
Increase in Intra-OIC and OIC Trade
A new revenue source for airports
A COMMON COLLABORATION PLATFORM BECAUSE…

41. Gravity Center of Air Trade
Gravity Center of Air Transport Capacity
Tunisia
Mozambique
Malaysia
Iran
Study Countries
Gravity Centers

42. Mozambique is of crucial importance with respect to its
geo-strategic location and potential for growth.
Recent decades in Mozambique witnessed significant projects
of transportation infrastructure.
In particularly, the Development Corridors of
Mozambique and the Nampula Region (which has a brand
new and modern airport, Nacala Airport) has been discussed
in the case study.
It is believed that any support given to Mozambique with
respect to air cargo transportation will result in high benefits
for the country and for intra-OIC trade.

43. Boeing GMF, 2015

44. Boeing GMF, 2015

47. Newly established Enfidha Hammamet International Airport
and Express Air Cargo company have remarkably increased
the potential ofTunisia.
In addition to this, the ongoing port construction in Enfidha is
another opportunity to boost air cargo traffic ofTunisia.
This developments in Tunisia will make it possible to
consolidate air cargo among Africa continent.
A collaboration between Tunisian and OIC
Member States air freight carriers is believed
to result in high benefits in short term.
Tunisia

48. Malaysia have proven its proficiency in civil aviation among the
recent decades. In particularly, the recent project of “Aeropolis” is
one of the world’s most outstanding aviation projects.
The know-how of Malaysia which is one of the most collaborative
member states can play a catalyst role in the development of other
OIC Member States.
“Aeropolis Project” will be elaborated in the case study section of the
final project report, with precious support of Malaysia Airports
Holding.
It is believed that it is a very important example for
other member states which are planning to establish
efficient logistics centers.

49. TIME FOR
FIGURES(15minutesofpresentationaproposoffindings
via Tableau Software)
(Not included in PDF copy)

50. THIS RESULT CAN BE
ONLY ACHIEVABLE WITH OUR
COLLABORATION and COOPERATION
Increase in Air Cargo Connectivity
Increase in Intra-OIC and OIC Trade
A new revenue source for airports
WE NEED TO COLLABORATE…

52. 2007

53. 2007
2007
2007
2007

56. ALPER AKBAŞ
Project Coordinator
THANKYOU
alperakbas@aviationportal.org
www.aviationportal.org