Global Logistics Solution for North America Winter 2010 Customized Airfreight Service Meets Needs of Freight Forwarders and Shippers Understanding consumer habits and how to manage supply chains have led several of Kalitta Air’s customers to increase their use of airfreight. “We help customers with time-sensitive-to-market and short-shelf-life products strategically manage their supply chain by utilizing time-definite airfreight delivery,” explains Ned Wallace, Worldwide General Sales Agent for Kalitta Air. “Several of our customers, especially in the textile and food industry, have found it easier and cost-effective to manage their supply chain inventories by having products move by air through Rickenbacker Inland Port.” Kalitta Air lands at Rickenbacker International Airport to offload cargo and take advantage of Strategically located in Columbus, Ohio, Rickenbacker the low costs business model and impressive customer service. Inland Port is at the heart of the North American population and activity. Situated between New York, Chicago, Toronto and Atlanta, the inland port is within a 10-hour truck drive to more than 50 percent of the U.S. and Canadian populations. One of the highlights of the inland port is its cargo-dedicated airport, Rickenbacker International (LCK). “The benefits of using LCK not only include low-cost landing fees and ground handling services but also great customer service,” says Wallace. “We always receive personal attention and great turnaround times allowing us to land, offload, refuel and take-off again very quickly. We clear customs at LCK using the U.S. Customs and Border Protection office at Rickenbacker Inland Port.” Kalitta’s customers move inventory from Asia and Europe to Rickenbacker Inland Port where it is then distributed by an outstanding trucking network. In most circumstances, end customers receive same day or next day deliveries. “In the past year we have increased our landings at LCK and have continued building a great partnership with the airport,” continues Wallace. “LCK enables us to serve our customers’ needs and offers a great alternative to existing gateways, which are often times too costly and congested to move time-sensitive-to-market items efficiently.” As we prepared this last issue of Logistically Speaking for 2010, we reflected on what a positive year this has been for us. We have enjoyed an increase in cargo flights landing at Rickenbacker International Airport (LCK) with many shippers focused on speed to market. The airport and surrounding inland port offers the perfect platform and service levels for those focused on speed. A good example of this can be found on the front cover which highlights Kalitta Air, a cargo airline servicing its customers from Asia and Europe by utilizing LCK. We also had a fantastic experience at LCK by being involved in celebrating 100 years of the air cargo industry and are energized about our opportunities in the next century. Take a look at the great photo capturing this historical moment on the next page. Another great accomplishment in 2010 was being one of the first Foreign-Trade Zones (FTZ) in the country to convert to the new FTZ program that dramatically reduces the application process and speeds up the time for shippers to get in the zone to as little as 30 days. In addition, we reflected on our recent recognition with the 2010 Excellence in Exporting Award from Ohio’s Governor Ted Strickland and the Ohio Department of Development. The award recognized our work in the cargo and passenger air service industries and how we build and maintain relationships with domestic and international logistics communities. The award also highlighted our ongoing financial investments in infrastructure and industrial development and the way we promote international trade through multilingual collateral and targeted international business meetings. In addition, we were acknowledged for hosting international delegations and industry journalists as well as managing our highly regarded FTZ program. With the close of 2010 and the beginning of 2011, we take time to reflect on the progress we have made this past year and areas we will concentrate on in the upcoming year such as scheduled cargo service at Rickenbacker International Airport. Our location advantage provides unrivaled access to U.S. consumers and we look forward to next year bringing more successes to the inland port. Sincerely, Global Economy and Foreign-Trade Zones Discussed at Recent Seminar 2 9 61478 5 3 Logistics providers, Customs brokers, economic developers and real estate professionals recently came together for a half-day seminar to learn the latest about the U.S. National Export Initiative, Ohio’s global trade efforts and Foreign-Trade Zone (FTZ) #138. “Rickenbacker Inland Port is rich with companies in the logistics industry and is served by FTZ #138,” explains Kathy Mills, Manager of Business Development – International Trade at the Columbus Regional Airport Authority, the grantee of FTZ #138. “To assist businesses in the inland port and surrounding area, we annually organize a free seminar for those interested in learning more about the benefits of operating in an FTZ.” This year’s program included Deborah Scherer from the Ohio Department of Development’s Global Markets Division. She discussed the importance Ohio has on the global economy stating facts like, “Among the 50 states, Ohio ranked 7th in the U.S. in exports in 2009, exporting more than $34 billion worth of goods” and “Ohio’s two leading exporting commodities are motor vehicles and machinery.” She also discussed the U.S. National Export Initiative program introduced by President Obama. Its goal is to double U.S. exports in the next five years and support two million jobs in America. The two other speakers, David Ostheimer from the law firm Lamb & Lerch and Elizabeth Whiteman from the U.S. Foreign-Trade Zones Board, discussed the details of an FTZ, the new Alternative Site Framework program used by FTZ #138 and how to activate an FTZ site with U.S. Customs and Border Protection. Contact Mills with any FTZ questions you may have or to request a copy of the seminar’s presentations at (614) 409-3606 or KMills@ColumbusAirports.com. Celebrating 100 Years of Air Cargo The first cargo flight was on November 7, 1910, when Columbus, Ohio, merchant Max Morehouse recognized the public interest in “flying machines” and struck a deal with brothers Orville and Wilbur Wright to transport 200 pounds of silk. The Wright brothers charged Morehouse $5,000 to deliver the silk approximately 60 miles. Today’s equivalent value of the freight charge would exceed $120,000. Rickenbacker International Airport (LCK) hosted a reception as part of the centennial celebration. LCK was the final destination of a reenactment of the original cargo flight that took off from Dayton, Ohio, home to the Wright Brothers. A Wright B Flyer replica was used for the reenactment symbolizing the original flight by the young pilot Phil Parmelee, who flew an original Wright B Flyer. “Being part of the 100th anniversary celebration of the first cargo flight was an honor,” said David Whitaker, Vice President of Business Development & Communications for the Columbus Regional Airport Authority, which oversees the operation of LCK. “Ohio has a rich aviation history and with Rickenbacker International Airport being one of the few cargo-dedicated airports in the world, it was a natural fit to be a part of the commemoration and recognize how far our industry has come in the past century.” Realizing the historical value of the flight, Morehouse more than recovered his money for the cost of the transportation by selling small pieces of the silk attached to a postcard that celebrated the world’s first cargo delivered by plane. Those 200 pounds of silk launched an industry that spans the globe moving millions of tons of air freight each year. Photo courtesy of Timothy R. Gaffney A Wright Model “B” Flyer replica approaches the Columbus, Ohio, skyline during the reenactment of the world’s first cargo flight before turning southeast to its final destination at Rickenbacker International Airport, which is one of the world´s only cargodedicated airports. Logistics Providers Logistics Providers at Rickenbacker Inland Port Air Tiger Express CEVA Logistics Rickenbacker Inland Port and the surrounding area are home to a variety of logistics providers, many of which are known as the best in the industry. Specializing in the transportation of goods, they work to complete the supply chain in the most effective and efficient way. The logistics providers are committed to supporting scheduled air service to and from Rickenbacker Inland Port. Highlighted below are a couple of those providers who tell why the inland port and the surrounding area are the ideal business locations. We will continue to highlight companies in the upcoming issues of Logistically Speaking. Concert Group Logistics DB Schenker Exel/DHL Expeditors International Freight Expediters Inc. Global Express Services Global Transportation Services Inc. HA Logistics Hellmann Worldwide Logistics Hyperlogistics Group Kuehne + Nagel Mainfreight Morrison Express Nippon Express USA, Inc. Nissin Group Concert Group Logistics “We established an office in the Rickenbacker Inland Port last year because of the attractive business environment,” says Megan Novak, Station Owner of Concert Group Logistics (CGL) in the inland port. “We are close to a cargo-dedicated airport, Rickenbacker International; a passenger airport, Port Columbus; carriers that service our business; and have easy access to the freeway system. We are also planning to utilize the Foreign-Trade Zone to help our customers lower costs and boost profits by delaying, reducing or eliminating duties.” CGL is a network of independent, local owners/market experts with a personal investment in the complete satisfaction of their clients. Currently the company has 24 offices across the country offering a complete range of domestic and international transportation services as well as customized logistics. CGL prides itself on offering their clients shipping options and advice. For more information, visit www.CGLShip.com. OHL Pacer Panalpina Group Pilot Freight Services RCS Logistics Scanwell Logistics StarTrans International Ltd. Team Worldwide Vandergrift Yamato Transport Yusen OHL “Rickenbacker Inland Port is a great place to have an office and service our customers’ supply chain needs,” says OHL’s Station Manager Douglas C. Kurtz LCB, CCS. “As a 3PL we take advantage of the ample warehouse and distribution space as well as all the modes of transportation in the inland port. There is a great private-public partnership that invests in the area and has positioned the inland port as a world-class international multimodal logistics hub.” Founded in 1951, OHL provides comprehensive logistics solutions globally with offices in North America, Europe and Asia. While the business began with warehousing and distribution services, it now is an industry leading 3PL that manages the entire spectrum of supply chain needs of its customers. The company operates over 120 distribution centers with over 32 million square feet (2.9 million square meters) and employs over 6,000 professionals. OHL has had an office in Rickenbacker Inland Port since 2004. For more information, visit www.ohl.com. www.Rickenbacker nlandPort.com Rickenbacker Inland Port is the Global Logistics Solution for North America Columbus Named 2010 Logistics Hotspot Rickenbacker Inland Port is located in Columbus, Ohio, the 16th largest city in the U.S. As a superior location for a world-class logistics infrastructure, the inland port is at the heart of North American population and economic activity. Recently Inbound Logistics, a well-read industry publication distributed in North America, printed an article highlighting Columbus and some of the benefits offered by Rickenbacker Inland Port. Here is what the monthly magazine published: Inbound Logistics magazine cited Columbus as a prime Midwest location for businesses to have on their site selection shortlists. Why Columbus? • Central location reaches half the U.S. and Canadian populations by truck in 10 hours • Eastern enough to move freight quickly to and from coastal ports • Three intermodal facilities, including Norfolk Southern’s Rickenbacker Intermodal Terminal located next to Rickenbacker International Airport. The 175-acre terminal handles more than 250,000 containers and trailers per year, offering daily service to Chicago and Norfolk, Va. •A large and highly skilled labor pool • Multiple colleges and universities with logistics programs •A strong and friendly business climate with a variety of tax incentives and a portfolio of affordable industrial sites close to major transportation routes Source: Inbound Logistics, May 2010