Çelebi Cargo is ‘living technology’

Çelebi Cargo is investing in state-of-the-art technology and combining its power with flexible handling systems, creating what it calls ‘living technology’ – a concept that it aims to take to the world. The first obvious signs of the philosophy in western Europe are being played out in Frankfurt, where the company has opened an automated, paperless and very hi-tech cargo facility measuring some 20,000 square metres. United Airlines Cargo has tested it out and given it the thumbs up.

White might be based at Frankfurt, but the parameters of his role are by no means parochial. He has a western European brief that can only mean one thing: expansion. “My role is to make sure that not only Frankfurt is successfully up and running, but also to develop a network across western Europe,” he reveals.

Çelebi Cargo is working to a very clear budget, which is focused on Frankfurt at the moment but, aside from that, the handler has a priority project plan. This means entries to new airports – these will be key hubs in Europe – but also potential partnerships.

But Çelebi Cargo is not just about sticking flags on maps; it is also about bringing a new cargo handling product to the European market. “The model we are planning to roll out throughout the whole Çelebi network is based on ‘living technology’, which involves the highest standard of equipment – such as the container storage system, the best x-ray technology and the best weighing and measuring apparatus,” says White. “We have combined all of this apparatus into one mainframe operating system. All the equipment is automated and then controlled by a computer system, which is adapted to our needs.” In Frankfurt, Çelebi Cargo is customising the latest release of the Hermes cargo handling system as the nerve centre of the operation.

This whole approach is very new to cargo handling and delivers copious benefits, he says. The first benefit is efficiency, and cutting out all the waste and paper. Çelebi Cargo is aiming at a paperless warehouse, which has already been achieved at Frankfurt. The second thing is complete order. Çelebi Cargo aims to “cuts out the chaos”, to deliver real-time, fully accurate information at any time.

Of course training is paramount, and White reminds us that modern training also has to address “how to deal with technology”. This means employing competent staff who are able to learn, deliver an IT-enabled response and combine modern handling technologies with traditional handling methods. All of Çelebi Cargo’s warehouse people work with handhelds so they can control all of the systems. Even the stacker is completely automated.

The company believes this is vital in the differentiation stakes; after all, Çelebi Cargo is a new entrant to western Europe and has to come to the market with a fresh offer to airlines, freight forwarders and their shipper clients. “One of the reasons we are coming into this busy market is that we want to bring something new, and provide a niche product based on this ‘living technology’,” says White. “Secondly, this is A-Z logistics based on the 4PL concept [this concept revolves around an integrator that assembles the resources, capabilities and technology to design, build and run a comprehensive supply chain].”

Out of the Frankfurt hub, Çelebi Cargo is planning a whole array of distribution services as well customer services. In particular, it talks of providing services to air carriers for whom consignments do not begin and end in Frankfurt – which is why real-time information is vital. A couple of other hubs are on Çelebi’s radar to deliver exactly the same concept.

The Frankfurt facility is brand new and was designed by Çelebi’s own design team. Construction was completed at the end of December 2010. The facility was designed specifically for a freighter-style operation. There is the capacity for 220,000 tonnes of freight per annum. There is also an 8,000 square-metre office, a 6,000 square-metre parking area, and the whole set-up is very conducive to a large-scale operation. All special, perishable and time-sensitive cargo can be handled at Çelebi Cargo’s Frankfurt facilities, apart from valuables handling - which is subcontracted out at present.

The Frankfurt operation complements Çelebi’s existing international cargo handling operations. Çelebi already has different combinations of ground handling and warehousing operations at 25 airports in its home country Turkey, and at Budapest Ferihegy Airport, Mumbai Chhatrapati Shivaji Airport and Delhi Indira Gandhi Airport. The group members together provide an integrated panoply of products and services ranging from ground handling services to terminal, warehouse, seaport and marina operations and management. The company says that the most important asset of the Group is its human resources. Çelebi today employs some 10,000 staff members in its companies that have spread over two continents. It recently signed up to take space at Budapest’s new Bud Cargo City complex, due to become operational next year.

For Çelebi Cargo, the pressing issue is: where to go next? One thing that is clear is that there will be further expansion into western Europe. On Çelebi Cargo’s priority list are the key distribution hubs. “We are open to the right opportunities,” says White. “We’ve created a very simple analysis of all airports in Europe, and we have graded them in terms of which ones we will evaluate first.”

The financing for this venture will come from a combination of in-house financial resources and external funding from financial institutions, based on Çelebi’s strong and enduring reputation. And let’s not forget, says White, that Çelebi is family-owned. This is a very important factor, which allows the management team to focus on the product, quality and reputation – not just on a rapid return on investment, he believes.

It means that Çelebi has the opportunity to deliver what White describes: a clean and transparent operation that does exactly what the company says it does.