Air Logistics : THE SHAPE MATTERS!

Most of us wonder what it would be like to witness a whale in the sea with our very own eyes. How about seeing a whale in the air above your head? Won’t that be a sight? But frankly, whales have not evolved to the extent of growing wings and taking off in the air. Nevertheless, human being human, they are just eager to make everything possible. Relating the human possibilities to the whales, here they go, by designing, constructing and operating an air plane that looks just like the white whale. White whales are also known as the Beluga. Hence, the A300-600ST which was initially called the Super Transporter officially adopted the name Beluga for its shape resembling the whale species. Talking about the shape of the plane, it had recently earned the title of “The World’s Strangest Plane”.

Let’s peek through a little more about this strange looking flying object. Why did Airbus come up with such an odd aircraft? Well, Airbus being a corporation formed in the year 1970 by major aerospace companies of different countries like the Great Britain, France, Germany and Spain, they had the plane parts as well as components manufactured in the respective countries. The final assembly was done in Toulouse, France or Hamburg, Germany or in Seville, Spain.

Due to urgency of growing business, geographical differences, logistical issues, increasing cost and the need for rapidity, Airbus found that road as well as sea modes of transportation are not the most desirable methods to carry their plane parts from one country to another for assembly. Airbus was in need of oversize cargo freight aircraft. They, then decided to operate a fleet of 2 Super Guppy planes to carry the large plane parts and components to their assembly plant locations. A point to note is that Super Guppies (Model No : B-377-SG/SGT) were manufactured Aero Spacelines had Boeing’s involvement to a great extent. Being competitors, it is no surprise that teasers were put out that “every Airbus is delivered on the wings of a Boeing.

  

As time went by, the aging Super Guppies were found to be too expensive to be maintained and were unable to meet the production demand of Airbus. So, they needed a larger air carrier to accommodate the oversized cargo. That is when, in 1991, Airbus began designing another aircraft with the idea of the A300-600 wide-body airliner as the base model, constructing in 1992 and took the aircraft to the air in 1995. The aircraft is none other than the strangest looking plane today, the Airbus Beluga. You may want to see the how a Super Guppies differs from an Airbus Beluga.

The notable milestones of the Airbus Beluga are inclusive of carriage of the Airbus manufactured A380 plane parts and a large painting called Liberty Leading The People. However, the Beluga is not the largest plane in the world and it does not have to be one. All it was designed for was to carry the adequate oversized cargo.

Nevertheless, Airbus’ growing needs is positioning the organization to design a replacement aircraft which will be longer but will maintain the appearance of the shape of Beluga. It might be based on another Airbus manufactured aircraft model, the A330 and it may possibly be known as the Beluga XL. So, it must be remembered that in air logistics, the size alone is not the key factor, the shape matters too.

Thank you.

Best regards,

Mahinder Singh Malhi

Road Logistics : THE NEED FOR SCHOOL BUSES WITH FAIR FARE

The recent squabble on the fares of school buses in Malaysia seems to be so uncertain. With various conflicting news published on the news papers daily appears to be misleading everyone who are interested in the updates of the case. This does not just affect the parties that are directly involved Public Land Transport Commission (SPAD), school bus operators, schools and parents, but it also depresses the logistics industry as well as distresses the people of Malaysia. Let’s briefly glance through the case.

A point to note first is that the school bus fares in Malaysia were last adjusted in August 2009. With an increase of RM 6.33 per month, the bus fares of the school buses operating in urban areas were RM 27.43 for the 1^st kilometer and RM 2.02 for subsequent kilometers. On the other hand, the fares of school buses operating in rural areas were increased by RM 4.76 to RM 20.61 for the 1^st kilometer and RM 2.02 for subsequent kilometers.

However, after 4 good years, it all began when Federation of Malaysian School Bus Operators Association in their Annual General Meeting in 2013 decided that the bus fares in Malaysia should be revised for an increase up to 40%. The reason for the association to reach such decision is due to escalating operational cost of its 14,000 school bus operating members. The rising cost is largely contributed by the hike on price by RM 0.20 for RON 95 and Diesel fuel. On the other hand, the new safety regulations and 30 years limitation imposed on the use of school buses also found to be burdening. Along with these factors, the spare parts and maintenance cost also rose.

However, towards the end of year 2013, SPAD responded sternly towards the association that school buses are not allowed to increase the fares without its consent and even rejected the proposal for the 40% increase of bus fares. SPAD’s Chairman, Tan Sri Syed Hamid Albar acknowledge the problems that the bus operators are facing but they will have to wait for SPAD’s decision on the new rates tentatively to be announced in March 2014. One key reason for SPAD’s verdict will follow later is because a study conducted by the authority on appropriate fare increment is still on-going. At the same time, the authority is looking into how it can use market forces to transform the industry as well as methods which will allow school bus drivers to supplement their income. SPAD in one of their press release commented that they are looking into a raise in school bus fares at the rate of between 20% to 30%.

In early 2014, it was seen that the talks between SPAD & the bus operators associations failed and the dilemma became a shoddier crisis. At one end, the Peninsular Malaysia Bus Drivers Association through its president, Amali Munif Rahmat insisted on the implementation of 40% increase of school bus fares by the 1^st January 2014. On the other hand, fearing a halt or strike by the school bus operators throughout Malaysia if the bus fares are revised, SPAD without hesitating suggested new solutions such as Parent-Teachers Association to operate school buses. In addition to this, the authority also encouraged independent and private vehicles to be engaged by parents to send their children to school as currently, for every single licensed school student ferrying vehicle, there are 3 illegal vehicles are operating concurrently. SPAD further promoted that it welcomes any newcomer into the industry by granting permits, providing safety guidelines, operating standards such as colour and capacity as well as suggesting minimum fare.

Conversely, the President of National Parent-Teacher Collaborative Council, Datuk Muhammad Ali Hassan expressed SPAD’s suggestions cannot be easily accepted and executed as such measures requires funds and suitable manpower. Instead, he suggested that SPAD should conclude this matter with the current school bus operators by negotiating in a win-win manner. Simultaneously, parents of school going children are puzzled with the never ending panorama of the issue, conveyed various views and made decisions in accordance to their affordability. Some parents found that the increase in bus fares are still reasonable, some of them has no choice to reduce expenses in some way of rather to be able to pay for the bus fares while some parents decided to send their children to school by themselves.

With all of these swelling issues, it can be summarized that there is lack of planning and forecast in any decisions called for, immaterial if it is initiated by the government authorities, private organizations, associations or individuals. What seems to be really saddening is that this latest predicament involves an industry close related to the education and affects the young schooling children who are the future of this country. Besides that, this issue is becoming a universal laughing object for the reason of Malaysia being unable to resolve a domestic logistics problem while aiming to be a vital logistics hub worldwide. Below is what we can ponder about.

·         Increase of fuel prices has its chain effects to school buses directly and indirectly. Firstly, it injects the cost of fuel for the buses. Indirectly, it will in unison raise all other costs such as spare parts, tires and manpower. Of course, we understand that the Malaysian government needs to reduce the fuel subsidy towards its people for better sustainability and support the development of the country. Nonetheless, other methods can be adopted. One of the solutions can be considered is fuel subsidy to be given to the bus operators only. Secondly, to be fair, the school bus operators should be allowed to apply surcharges just like how the interstate express buses do.

·        SPAD imposing a 30 years limitation for school buses usage has its benefits in terms of safety perspective. Then again, it has to look into the affordability of the operators whether they are able to cope with such changes or will it lead to them discontinuing their service. Of course, the government offers rebates of RM 10,000 and a loan scheme with 2% flat interest rate from Bank Simpanan Nasional to buy buses in addition to RM 100,000 worth of insurance coverage for school children who uses school buses. Question arises if any bus operator can qualify for the loans? What if the government taxes applicable can be exempted for school buses? I believe that will be more viable and acceptable as school bus industry is one the key support to our children’s education.

·        There should be transparency in the mechanism used by the government and the bus operators in calculating the school bus fares by including all operating expenses. Of course, we cannot see the calculation for every single bus operating in the country. Instead the figures can be shown on average basis with the data collected by the respective authority in urban and rural areas. With this, I bet that even parents will be able to understand the issue better instead of being in daze and bear the cost without justification obtained.

·         The idea of Parents-Teachers Association (PTA) to run school buses operations is good because the bus fares can be controlled and the quality of the bus services can be monitored. Still, PTA exists as a formal organization composed of parents, teachers and staff that are intended to facilitate parental participation in a school. If by adopting this idea can assure that the purpose or mission of PTA will not be affected, then, it is definitely a great idea to go for.

Latest development on this case sees SPAD coming up with wiser ideas involving flexibility that will generate more income for the school bus operators instead of raising their fares. The commission is looking into allowing the bus operators to place advertisements on the buses. To kick start the process, SPAD is in the midst of discussing the idea with the us operators and advertisers. Tan Sri Syed Hamid Albar also added that SPAD is also exploring the approach of allowing the buses to serve as feeder buses after the school hours to supplement their income. Meanwhile, parents are welcomed to make a formal complaint to SPAD via the official hotline should they feel dissatisfied with school bus operators raising the fares prior to official announcement on new fares by the commission.

Well, it is now entirely depends on the relevant parties to decide what will be the right methods and solutions that will determine the future shape of the school bus industry. Of course, if they really cannot accomplish an apt judgment for issues like this, something is really wrong with the leads. One thing for sure is that we do not want to be left behind in any way especially with matters pertaining to education.

Hope it made some sense.

Thank you for your precious time.

Best regards,

Mahinder Singh Malhi

Rail Logistics : TRAIN SNEAKING OUT!

The entire world is at a shock when an unmanned train engine in Sri Lanka ‘escaped’ from its dock on December 5^th. By the time its absence was noticed and reported, the train engine at the speed of 5 km/h had travelled 12 km through the capital city of the country, Colombo. Inspired by Hollywood or the dramatic Bollywood movie scenes, one of the technicians jumps onto the ‘lonely voyager’ to intercept its journey. Fortunately, there were no accidents caused but nonetheless, the driver and the assistant were immediately suspended by the Sri Lankan Railways. The cause of the incident is said to be either the clutch of the locomotive was not switched off or someone had started the engine. A three member committee was appointed to probe the incident and a report was submitted to the Transport Minister, Kumara Welgama that the shunting driver and the assistant are at fault.

On the other hand, some reporters found a 1913 newspaper clipping about a ghost train mysteriously leaving the same station, on the same track 100 years earlier on the same day, at the same time. Is this a mere coincidence? Or is there a ghost train driver who waits for 100 years to drive a train? Or was the locomotive stolen by the descendent of the thief who stole the train in 1913? Whatever it may be, I hope we do not have to wait for another 100 years to prove the reason of the incident. Perhaps, the locomotive had a mind of its own to have a feel of how it would appear to be just like the driver-less light rail transits (LRT) in Kuala Lumpur. Maybe it is also an indication to Sri Lankan Railways to begin investing into driver-less LRT system.

Thank you.

 

Best regards,

Mahinder Singh Malhi

Sea Logistics : BREAKING THE OLD SHIPS BY BREAKING THE LATEST LAW & ETHICS.....

Ship breaking is a crucial industry that disposes the unused or old ships that are no longer viable to be refurbished or maintained or operated. The ships are purchased by ship breakers & torn down so that the metal as well as the other parts can be recycled. Previously, many ship breakers were operating at almost all major ports in the world.

However, these days, most of the ship breakers operate in developing countries such China, India, Bangladesh & Pakistan due to lower cost of operations. But recently, the industry has been tainted lately with various disheartening issues pertaining to the manner the ship breakers functions. One of it is that, the ship breakers in these countries violates the human rights code as they engage child labour to carry out the task. Besides that, their employees life are at stake as the necessary personal protective equipments (PPE) are not provided by the employers. Above all the unacceptable working conditions, the workers are paid USD 1.00 to work 12 hours daily, 7 days a week.

It would be really nice if the ship owners who intends to scrap their old ship, performs a procedural tender & invite ship breakers with good work policies or practices to participate in bidding. Do not just award the ship breaking contracts to the highest bidder but award to those organization that are worth to be known as partners. Ensure that the ship breakers are financially fit, are not involved in terrorism or in support of piracy, has ethical or legal workforce and prioritize the safety, health & environment factors at all times. We are sure that none of us would want to be associated or be a part of an industry that is 'contaminated' with such upsetting concerns.

Thank you.

Best regards,

Mahinder Singh Malhi

Air Logistics : COMMERCIAL AIRLINES INDUSTRY IS 100 YEARS OLD!

January 1st 1914 marked an event that would change the world – the first ever scheduled flight with a paying passenger. It was Mayor Abe Pheil for the thrill, purchased the first ever ticket at the cost of USD 400.00 then to fly in a passenger plane. Tony Jannus flew that bi-wing seaplane from St Petersburg, FL, to Tampa in a 23 minutes journey. Normally such a trip would take 2 hours on a steam ship across Tampa Bay. Thus, it marked the birth of the global airline industry. 100 years has passed since & the airline industry has changed a lot at this point of time.

Thank you.

 

Best regards,

Mahinder Singh Malhi