1 Airport Logistics News | October 2015

solutions

Siemens extended Munich’s baggage handling system to increase the airport’s capacity by 11 million passengers a year.

www.siemens.com/logistics

Airport Logistics News Issue 15 | October 2015

Contents 3 news Pre-clearance facility in Abu Dhabi Record peak at Dubai International Airport Self check-in and bag-drop in Madrid 4 solutions LAS becomes SPPAL Carve-out of the Siemens business for baggage and cargo handling, mal and parcel sorting Going strong The US airport business New tilt-tray sorter Market launch of VarioSort TTS 1100 Serving the air cargo market Solutions for the cargo business Accepting the China challenge Siemens addresses the country’s growing airport market 12 news Siemens at inter airport Europe

At the heart of Munich Airport The extended baggage handling system provided by Siemens Postal, Parcel & Airport Logistics has successfully completed a three-month test phase at Munich Airport. The system is at the heart of Terminal 2 (T2) and the new satellite building due to open in spring 2016. The new satellite building is a structural extension of the existing baggage sorting hall on the apron east of T2. The terminal and its satellite are operated by a joint venture of Flughafen München GmbH and the German airline Lufthansa AG. Munich Airport was used by almost 40 million passengers in 2014, taking it to place seven in the European airport rankings. Thanks to the new satellite, Munich Airport will increase its capacity by 11 million passengers a year. To accommodate this growth, Siemens has modernized and extended the baggage handling system by almost 7 kilometers to an overall length of 45 kilometers. This increases the

sorting capacity by one-third to 17,800 bags per hour. The so-called left behind index (LBI), the percentage of temporarily mislaid bags, is as low as 0.02 percent in Munich. The level of security and reliability for

» Continued on page 2

Two additional arrival carousels are being delivered to Munich Airport.

editorial

2 Airport Logistics News | October 2015

news

Record peak during holiday season at Dubai International Airport

At the heart of Munich Airport » Continued from page 1 passengers is therefore significantly higher than at comparable airports. “With our satellite we will offer passengers an optimum infrastructure and a unique ambience,” explains Marco Butz, Manager Processes and Central Infrastructure of the Terminal 2 operating company. “The baggage handling system with innovative Siemens technology plays a major part in enhancing passenger convenience. We maintain the shortest-possible minimum connecting time of 40 minutes between flights – this ensures Munich’s place among the world’s leading international airports.” This project demonstrates Siemens’ expertise with so-called brownfield contracts, that is, the modernization and extension of existing facilities. Besides close cooperation with the customer, the involvement of all interest groups, such as airlines, safety authorities, ground handling operators and construction firms, was crucial to the success of the project. During the conversion, Siemens made sure that passengers were not affected by the work and regular airport operations continued to run as smoothly as usual. Siemens has been Munich Airport’s reliable service partner for the system’s entire lifecycle since 2003. The experienced and highly qualified Siemens team was on site during commissioning and will continue to be responsible for operation and maintenance 24 hours a day in the future. Preven-

Dear Reader,

I am delighted to write to you as the new Head of Sales and Project Execution at Siemens Postal, Parcel & Airport Logistics GmbH. A new face in a new company? A new face: yes! A new company: no! To

October 2015 | Airport Logistics News 3

Siemens equips pre-clearance terminal

Dubai International Airport has been among the world’s top ten airports for years and holds the number one position for international traffic.

New facility at Abu Dhabi International Airport

Siemens installed four extra carousels in the make-up area of Munich Airport’s new satellite.

tive maintenance is of paramount importance in Munich to avoid system downtime and operational interruptions. This high service quality played a critical role in allowing T2 to successfully and reliably handle around 14 million bags in 2014 alone. «

start with the latter: you have known our business for baggage and cargo handling, mail and parcel sorting under the name Siemens Logistics and Airport Solutions for many years. The carve-out of this business from Siemens AG can justifiably be termed a milestone in our company’s long history. As a legally independent subsidiary of Siemens, we have gained the flexibility to successfully shape our future (see page 4). Now, as to myself: I am native Dutchman with degrees in mechanical engineering. I have many years of experience in senior management positions in medium-sized companies in both the capital goods and logistics sectors. For example, as a Member of the Executive Board at Vanderlande Industries I was responsible for the Warehouse Automation and

Parcel & Postal business units. I also bring to my role extensive expertise in strategic consulting and the implementation of numerous international projects. Apart from the new name and some new people, there are many constants in our company. One of them is for example this Airport Logistics customer magazine with which we will continue to update you on our company’s innovations and projects as well as on industry developments. Please enjoy your read and learn more about our competencies! Sincerely, Remco Overwater Senior Vice President & Head of Sales and Project Execution

Siemens Postal, Parcel & Airport Logistics has equipped the first US pre-clearance terminal in the Middle East with a modern baggage handling system. In the facility adjacent to Terminal 3 at Abu Dhabi International Airport in the United Arab Emirates, Siemens’ new baggage handling system ensures full passenger convenience. Those traveling, to the United States who do not use the pre-clearance facility must still reckon on lengthy delays in the necessary immigration process on arrival. By using the pre-clearance facility, passengers on US-bound flights clear immigration and customs already at Abu Dhabi International Airport. On arriving in the United States, they are treated as domestic passengers, which allows for faster processing including the checking through of any baggage to their final destination. Worldwide, this facility in Abu Dhabi is the tenth to go into operation. Furthermore, Siemens has completed the expansion of baggage handling systems in Terminals 1 and 3, providing state-of-the-art baggage handling equipment in Terminal 3 and a modernized arrival area in Terminal 1. Siemens was also contracted to continue operation and maintenance services for the baggage handling systems in Terminals 1 and 3 and the cargo hub of Abu Dhabi International Airport. «

During the holiday season, the Siemens team at Dubai International Airport processed a record-breaking baggage load in one day, continuing the success story of a ten-year-long partnership. The operation and maintenance (O&M) team of Siemens at Dubai International Airport’s Terminal 3 handled a total of 140,000 bags in one single day, consisting of about one-third arrival bags and two-thirds departure bags. For more than ten years Siemens has been the trusted partner of Dubai Inter national Airport, which operates one of the world’s biggest and most sophisticated baggage handling systems. In 2014, Siemens efficiently processed baggage from over 70 million passengers in Dubai. «

New self-check-in and bag-drop solution at Madrid-Barajas Airport

Siemens Postal, Parcel & Airport Logistics successfully implemented its new self-check-in and bag-drop solution at Adolfo Suárez Madrid-Barajas Airport in Spain. This is a pilot project carried out in a collaboration between the Spanish airport operator Aena, Iberia and Siemens. «

solutions

4 Airport Logistics News | October 2015

LAS becomes SPPAL: A Siemens subsidiary with a new global identity

Michael Reichle, CEO of Siemens Postal, Parcel & Airport Logistics GmbH

On June 1, 2015, Siemens Postal, Parcel & Airport Logistics GmbH (SPPAL) officially went into operation in Germany. This event didn’t just mark a change of name – it was also the completion of the carve-out of the former Logistics and Airport Solutions (LAS).

tional investment channeled into research and development at SPPAL is similarly contributing to the success of Siemens projects. Thanks to the new organizational structure and an independent global market profile, the SPPAL sales organization is making efforts to be closer to the customer. To this end, Siemens has established regional companies all over the world, whose main focus lies with sales, project execution and service. SPPAL’s position has been strengthened even further with Remco Overwater, the new Head of Sales und Project Execution. The experienced manager assumed the position in June. As CEO Michael Reichle also points out, “Our company is now ideally placed to address the needs of our customers locally and to handle projects on the ground in the best way possible – and as a result achieve maximum customer benefit.” «

Zurich Milano

Paris

Oakville

Siemens Postal, Parcel & Airport Logistics (SPPAL) is committed to the US airport business.

Nuremberg Constance

London

Madrid Lisbon Turkey

Irving

Beijing

Dubai

Hongkong

South Korea Taiwan

Mumbai Singapore

Malaysia

Angola To be closer to the customer, SPPAL has established regional companies all over the world.

October 2015 | Airport Logistics News 5

Going strong

Plans announced by Siemens CEO Joe Kaeser in 2014 have come to fruition: the Siemens business for baggage and cargo handling, mail and parcel sorting is now a stronger force in the market. SPPAL will remain an independent company operating under the Siemens umbrella. The 100 percent Siemens subsidiary will continue to be headquartered in Constance, Germany. The service resources will remain unchanged, with the familiar sales and service personnel continuing to offer the usual reliable customer services. The biggest change, however, is that the new Siemens subsidiary is now considerably more effective and competitive. The company has restructured in order to serve the market more effectively, and it is now organized along functional lines. This leads to a bundling of competencies, which in turn further increases the possibilities for optimum customer solutions. This is of particular importance when it comes to development and engineering, where engineers work on innovative products and solutions across various locations. The addi-

solutions

Australia

Southwest Airlines is an important Siemens customer in the United States: at the moment, SPPAL is renovating the baggage handling system at Terminal 1 in Los Angeles.

The airport business in the United States is very dynamic. According to a recently published report by Airports Council International, US airports are expected to invest an estimated $75.7 billion in infrastructure through 2019 to accommodate growth in passenger and cargo volumes, rehabilitate existing facilities, and drive aircraft innovation. SPPAL with its local set-up headquartered in Dallas is fully committed to the airport business. “It is our ambition to be the solution provider of choice for upcoming baggage or cargo handling, as well as IT and service projects,” says Andrew Savage, head of Airport Logistics in the United States. “We take a careful look at the customer’s needs and what it will take for a project to

be successful. Naturally, we have our proven solutions and draw on experience gained with airport projects all over the world. But we also come up with the best-possible local team.” This formula has proven its success, as some recent project wins show. Major project examples: • Los Angeles: renovation of Southwest Airlines’ baggage handling system at Terminal 1 • Los Angeles: design and implementation of the Siamos Dashboard at the Airport Response and Coordination Center • Guam: baggage handling system for Guam International Airport Authority Until 2034, traffic to, from and within the United States is expected to grow at a yearly average of 3.2

percent, according to the 20-year passenger growth forecast of the International Air Transport Association (IATA). That means that the United States will see 1.2 billion passengers by 2034, 559 million more than in 2014. Only by 2030 will China overtake the United States as the world’s largest passenger market (see page 10). Both markets, however, are expected to remain the largest by a wide margin. The United States is predicted to add more than one million additional tons of freight by 2018, as IATA’s forecast for 2014 to 2018 shows. The mature North American market will grow at a 2.8 percent compound annual growth rate (CAGR). By comparison, international freight volumes are expected to increase at a CAGR of 4.1 percent. «

solutions

6 Airport Logistics News | October 2015

Siemens introduces new tilt-tray sorter Solution quickly and efficiently handles baggage. VarioSort TTS 1100 from Siemens Postal, Parcel & Airport Solutions is a new tilt-tray sorter that helps to quickly and efficiently deal with large amounts of baggage at airports. Siemens is first implementing the sorter at Incheon Airport in South Korea (see info box). The solution is also one of the highlights at this year’s inter airport Europe in Munich. Airports are challenged with growing passenger numbers and increasing baggage volumes. Siemens now offers the ideal solution for this

challenge. After extensive testing at different locations under different environmental conditions, VarioSort TTS 1100 was successfully reviewed by an independent team of experts and is now ready for implementation. VarioSort TTS 1100 with a tray width of 1,000 mm is based on Siemens’ experience with the well-known VarioSort product line that Siemens’ parcel customers around the world have used for years. Over the last five years alone, some 12 kilometers of VarioSort sorters – including 14,000 carriers, 200 inductions and 1,500 discharge chutes –

have been installed. These sorters have proven their reliability in over 100,000 hours of productive operation. VarioSort TTS 1100 is designed to allow easy operation and maintenance. Energy-efficient linear motors can help keep life-cycle costs down. Because the sorter is exposed to low levels of wear and tear, it has a long lifetime, which in turn leads to a quick return on investment. VarioSort TTS 1100 features a very robust and reliable design. The trays, for example, are constructed from robust, high-pressure laminate. The material’s temperature-related

solutions

characteristics remain constant, thereby allowing the material to retain its friction coefficient for accurate sorting results. Industrystandard controls and IT from Siemens also contribute to the solution’s sturdiness. The sorter’s IT can be flexibly interfaced to the IT in the baggage handling system.

October 2015 | Airport Logistics News 7

Four tilt-tray sorters are part of the overall baggage handling system to be installed by Siemens at Incheon Airport’s new Terminal 2 in South Korea.

Additional technical information about the VarioSort TTS 1100

VarioSort TTS 1110 debuts at Incheon Airport

• Scalable design and modular product components

Siemens’ new tilt-tray sorter VarioSort TTS 1110 is debuting at Incheon Airport’s new Terminal 2 in South Korea. Four sorters are part of the overall baggage handling system to be installed by Siemens, together with the South Korean company Posco. Siemens Project Manager Helmut Weiler says: “Incheon International Airport strives to provide the highest levels of passenger convenience and security while sustaining growth and expansion. Therefore, the airport management is implementing the new Terminal 2 using only state-of-the-art technology. Siemens’ baggage handling system with its innovative sorters is a key example of this strategy.” The baggage handling system at Incheon’s T2 will have a throughput of more than 22,000 items per hour. It will use tray and belt conveyors with a total length of circa 42 kilometers. At around 50 million passengers a year, Incheon Airport is one of Asia’s ten biggest airports. Once the new Terminal 2 has been completed, the airport will be able to handle over 62 million passengers a year. «

• High throughput rate of over 6,000 bags per hour • High-speed induction of 2,700 bags per hour • Speed of up to 2 m/s • Efficient control concept with a proven track record • Highest level of availability and reliability • Redundant PLC controls concept (hot backup), optional • Latest Siemens controls: TIA Portal PLC S7-1500

VarioSort grants modern airports a competitive edge

Carriers: VarioSort TTS 1100 features a very robust and reliable design. The trays are made from high- pressure laminate.

Discharge: The tilt-tray sorter’s highspeed discharge ensures maximum throughput.

Inductions: The high-speed induction handles 2,700 bags per hour.

8 Airport Logistics News | October 2015

solutions

solutions

October 2015 | Airport Logistics News 9

Siemens is an important player in the promising air cargo market Air cargo is vital to the global economic system. Siemens helps airports and airlines with solutions to enhance their competitiveness. International freight volumes are expected to increase at an annual growth rate of 4.1 percent until 2018, according to the International Air Transport Association (IATA). Emerging economies, particularly in the Middle East and Africa, will be the fastest-growing markets. In 2014, more than €6.1 trillion worth of goods, which is equivalent to 35

percent of total world trade value, were transported via airfreight. To enhance air cargo competitiveness, the industry is aiming to cut average transit times by up to 48 hours by 2020, says IATA. To achieve this, major air freight players are modernizing their processes. They are working on improving their quality and reliability as well as on increasing

capacity, performance and competitiveness. At the same time, air cargo companies are widening the range of services offered to remain profitable. Siemens helps airports and airlines find the right answers and solutions for these challenges. Proof of the company’s extensive know-how can be found in several ongoing and recently finished projects all over the world.

Optimization for all cargo processes With a comprehensive IT package, Siemens Postal, Parcel & Airport Logistics together with its subsidiary AXIT ensures quick and efficient processes in and around air cargo terminals. Less congestion, faster handling: Siemens Postal, Parcel & Airport Logistics (SPPAL) and its subsidiary AXIT have merged two different IT applications, thereby successfully developing a comprehensive IT package for controlling goods flows. AXIT’s cloud-based logistics platform AX4 coordinates cargo movements outside the airfreight terminal and communicates with the SPPAL solution Cargo Compact, which controls flows within the terminal. “We are creating a new standard of transparency for cargo terminals,” says SPPAL CEO Michael Reichle.

The cloud-based logistics platform AX4 is part of SPPAL’s integrated IT package that ensures quick and efficient processes in and around air cargo terminals.

Holger Schmitt, CEO of AXIT, explains further: “The employees responsible for cargo handling know the transport routes as well as the exact anticipated shipment volumes at an early stage, and that enables them to plan their capacities with much greater precision and efficiency than ever before. The black box of the upstream shipment is now crystal clear.” Which trucks with what cargo will arrive at the terminal? Which ramp is currently available? How many employees and what capacities are needed to receive and handle goods? Outside the terminal, the AX4 logistics IT platform integrates all of the information from incoming and outgoing freight forwarders, displays essential shipping data and continuously tracks the progress of shipments. In the terminal, material flows are mapped and optimized with Cargo Compact, including import, export and transit, as well as build-up and breakdown. In addition, Cargo Compact controls unit load device (ULD) and shipment management as well as inbound and outbound flight handling. AX4 takes over again as soon

as shipments are ready for transit in the opposite direction. IT systems both inside and outside the terminal send their information to a control tower, enabling integrated management of the entire supply chain, from shipping to transport routes, to the ramp of the terminal and all the way down to the warehouses and cargo handling equipment. Operators of airfreight terminals benefit along the entire chain through: • more flexible and precise allocation of cargo capacities on both cargo and passenger planes by enabling a comparison of planned volumes with actual inbound volumes at an early stage, • early rescheduling in response to deviations, and • better and more efficient coordination of inbound and outbound transports. For more details on the opportunities that the new IT package opens up, please see www.axit.de/en/ for-logistics-centers. «

Dubai: new Emirates SkyCargo terminal

Taiwan: cargo extension at Taoyuan Airport

Turkey: new cargo terminal at Ataturk International Airport

Siemens equipped Dubai Al Maktoum International Airport with a state-ofthe-art material handling system. The new terminal will be capable of handling a throughput of 700,000 tons per year on a surface area of 68,000 square meters – or roughly nine soccer fields. The new MHS building will maximize the terminal’s operational performance and optimize the whole cargo handling process. An expansion by another 300,000 tons is planned for the future. In parallel, Siemens is extending the Cargo Mega Terminal for Emirates at Dubai International Airport to handle 1.6 million tons per year. This includes an upgrade to the latest automation features and IT process solutions.

Siemens has extended the state-ofthe-art cargo system for Taiwan Air Cargo Terminal Ltd. (TACT) at Taiwan Taoyuan International Airport. The contract included 669 conveyors, two cargo hoists and three elevating transfer vehicles (ETV) as well as the corresponding steel control system and Siemens cargo handling software Cargo Compact. The highly automated cargo handling system ensures efficient, smooth and timely cargo handling at TACT’s twelve apron freighter positions. Taiwan Taoyuan International Airport is among the ten busiest cargo airports worldwide. It handled over two million metric tons in 2014 and is served by more than 15 airfreight carriers.

Turkish Airlines awarded Siemens with a contract to equip a new cargo terminal at Ataturk International Airport, which covers a surface area of around 40,000 square meters. The first expansion phase boosting the airport’s cargo capacity was completed in 2014. Ataturk Airport is Europe’s eighth largest commercial airport. Because of limited capacity, the Turkish Airspace Authority does not allow additional cargo to the airport. Therefore, a new airport will be constructed north of the European side of Istanbul on a piece of land covering roughly 8,000 hectares. The first of four phases of the airport’s development is slated for completion in 2018. Siemens is ready to support the continued growth of air cargo from 1.2 million tons to 2 million tons a year. «

10 Airport Logistics News | October 2015

solutions

Accepting the China challenge To address the ever-growing airport market in China, Siemens Postal, Parcel & Airport Logistics has been operating a regional company in Beijing for many years. This company is part of SPPAL’s new global setup.

State-of-the-art design and the most advanced technology: Siemens implemented one of the world’s biggest baggage handling systems at Terminal 3 of Beijing Capital International Airport.

solutions

China is expected to overtake the United States as the world’s largest passenger market by 2030, according to a forecast from the International Air Transport Association (IATA). In 2034, flights to, from and within China will account for some 1.3 billion passengers – that’s 856 million more than in 2014 and accounts for an average annual growth rate of 5.5 percent. Naturally, the enormous rise in passengers is expected to lead to considerable airport building activities. For example, China is planning to build 17 new runways to serve its major cities by 2036, say KPMG consultants. The additional facilities will have a capacity for 400 million passenger journeys.

October 2015 | Airport Logistics News 11

With its regional company headquartered in Beijing, SPPAL is perfectly positioned to partner with airports, airlines and the relevant authorities to deal with the related challenges. David Liu, Head of Airport Logistics in China, says: “We maximize customer benefit by addressing customer needs locally and carrying out project management on site. Our local presence and competent local team are our keys to success and to growing our business in China.” The focus of the Chinese as well as other regional companies is on sales and marketing, project management and service. Moreover, Beijing is home to one of SPPAL’s research and development centers.

In close cooperation with their colleagues in Germany, Portugal, Singapore, Switzerland, the United Arab Emirates and the United States, engineers in China work on innovative products and solutions to meet current and future customer requirements. For example, Siemens’ new stateof-the-art tilt-tray sorter was developed and tested in Germany and China. The solution was successfully reviewed by an independent team of experts (see page 6). Apart from Beijing Capital International Airport, major airport customers in China include Wuhan Tianhe International Airport, Xi’an Xianyang International Airport and Shenyang Taoxian International Airport.

Backing Beijing’s growth Terminal 3 at Beijing Capital International Airport is one of the world’s biggest single terminals. Passenger throughput increased from 28 million in 2007 to 60 million in 2015. The baggage handling system (BHS) from Siemens Postal, Parcel & Airport Logistics has been keeping up with this tremendous growth from day one. As a reliable operation and maintenance (O&M) service provider, Siemens also makes sure that the system runs smoothly – day and night, every day of the week. Project facts and figures • 330 counters: The Siemens BHS safely and efficiently transports baggage from 330 check-in counters to the waiting planes, and from arriving aircraft to the appropriate reclaim carousel. • 68 kilometers long: Terminal 3 boasts one of the world’s biggest baggage handling systems. With a combination of belt conveyors, tilt-tray sorters and high-speed trays, the overall system measures more than 68 kilometers in length. The terminal occupies a land area of 120,000 square meters, or roughly 17 soccer fields. • 19,200 baggage items per hour: The Siemens solution sorts a maximum of 19,200 baggage items per hour and transports them to the right destination safely. • 10 meters per second: International flight baggage is delivered at a speed of ten meters per second via the 2.2 kilometer-long tunnel before arriving at the baggage carousels. For the sake of comparison: traditional belt solutions normally offer a speed of 2.5 meters per second. • 3,500 spots for early baggage storage: The system comprises 3,500 early baggage storage (EBS) spots for early and transfer baggage. • 99.9 percent accuracy: Siemens’ Baggage Base IT system with innovative radio frequency identification (RFID) technology can track, monitor and sort baggage items with an accuracy of 99.9 percent. «

news

12 Airport Logistics News | October 2015

The innovative Baggage Vision ­S ystem that helps solve the ­challenge of barcode no-reads is one of the highlights at Siemens’ ­inter airport stand (above). From October 6 to 9, 2015, Messe München is the venue for inter a ­ irport Europe, the worlds’ leading a ­ irport ­exhibition (left).

Siemens at inter ­airport Europe Innovative solutions are the highlights at the world’s leading airport exhibition. From October 6 to 9, the world’s leading airport exhibition – inter airport Europe – opens its gates to the leaders of the aviation industry at Messe München in Germany. More than 600 exhibitors from 40 countries focus on airport equipment, ground handling, terminal operations, and airport IT and design. Siemens Postal, Parcel & Airport Logistics showcases its entire portfolio for baggage, cargo, IT and service. Several highlights are sure to attract visitors: the VarioSort tilttray sorter (see page 6), the innovative Baggage Vision System for bag tag no-reads, ­airport IT, cargo

and logistics software, and maintenance support solutions. Experts from Siemens present the portfolio and highlights at Stand 1260 in Hall B5.

Speaker list Siemens is also represented on the speaker list of the Smart Airports conference, which runs alongside inter airport. Experts from the company will deliver five presentations, covering the subjects of innovative baggage ­handling, cargo, temporary terminals, airport IT, and oper­ ation and maintenance. «

Airport Logistics News Published by Siemens Postal, Parcel & Airport Logistics GmbH Lilienthalstrasse 16/18 78467 Constance Germany www.siemens.com/logistics Editor in chief: Birgit Jantschke [email protected] Responsible for content: Monica Soffritti Copyright: Siemens Postal, Parcel & Airport Logistics GmbH 2015 All rights reserved. No part of this publication may be reproduced or used without express prior permission. Subject to technical modifications. Printed in Germany. Photo credits: Flughafen München GmbH page 1; iStockphoto page 5; Emirates page 8; Turkish Cargo page 9; Messe München page 12 Order No. A19100-V750-B130-X-7600 Dispo No. 12212 K No. 1221 AL e 15/2015 FB 10152.0