TRAXON on track for High Performance

Interview with Felix Keck, Managing Director, TRAXON Europe GmbH

In the wake of an ever-increasing number of queries from existing and prospective customers regarding new service offerings, TRAXON Europe’s Managing Director Felix Keck stated that as predicted, the second half of 2007 was a time of strong performance for TRAXON. Performance expectations for 2008 are optimistic as well.

Can you sum up TRAXON Europe’s performance this year to date and how it relates to 2008?
Felix Keck: Based on our achievements in 2006, we embarked on a very ambitious expansion plan for 2007. We wanted to surpass our 2006 total and to transmit more than 100 million messages throughout our system in 2007, ensuring, of course, that our quality standards remain as high as ever. We achieved our goals in all respects, and with gratitude, we thank our customers who entrusted their e-Communications to us during 2007. We are on track to meet 2008 growth targets.

What’s the basis of the planned growth for 2008?
Felix Keck: Three key focuses: First, maintain and expand our existing business by continuing to provide superior, focused customer service. Second, intensify our business activity through innovative e-Communications products such as TRAXON CDMP our Cargo Data Management Portal, MIP for e-Freight initiatives, and Customs solutions. Third, expand geographically to North America and the Middle East.

Do you see greater growth coming from existing clients or in new market expansion?
Felix Keck: Both, as a combination of customer geared planning and some favourable circumstances. For example, we have been working with Iberia for the last six years. They recently brought us on board to work with them in Spain. This is a significant piece of our expansion strategy since Iberia has a 39 percent share of the international freight market in Spain as well as 49 percent of the domestic market. In addition to that, a number of Spanish forwarders have also joined TRAXON. Geographically, we’ve reached a good market share in some regions. However, the Middle East, Latin America and Eastern Europe are open opportunities for the future. We see tremendous possibilities in these markets. North America is yet another example. It’s a market with enormous potential.

What’s the key to expansion in the U.S. and other markets?
Felix Keck: It’s two-fold. We’ll focus on our core competency – providing best-of-class customer service — and we’ll promote a proven cost-cutting benefit to forwarders, our Zero Cost Option.

How does TRAXON’s CDMP play into expansion plans?
Felix Keck: Perfectly. We are committed to providing complete electronic communications solutions for the global air freight industry. We are committed to industry standards but since our focus will always be on customer service, additionally we attempt to meet individual customer requests with a workable solution. It was clear to us from the start that we were on the right track with our Cargo Data Management Portal idea. Lufthansa Cargo was our launching customer. Martinair Cargo, which was already using some TRAXON products & services, also saw the advantages and signed on for TRAXON’s CDMP product. Currently we’re working to implement Air France and KLM.

How does all this tie in with TRAXON’s ongoing support and participation with e-Freight in the future?
Felix Keck: Yes, there is an absolute tie in to the IATA e-freight iniative. Today, we are a Preferred Partner in IATA’s e-freight project, the industry-wide initiative to foster a streamlined paper-free environment that facilitates the worldwide distribution of airshipped goods.

IATA’s primary objective is to eliminate the need to transport paperwork in parallel to the physical transportation of freight. We share that vision. As such, we’re actively involved in the IATA’s Message Improvement Program (MIP). First, we need to ensure that electronic messages which replace existing paper documents are 100 percent complete and accurate, and we need to build confidence with stakeholders in the quality of the information in those messages. And secondly, we must increase the penetration of electronic messaging.

How does all this relate to Customs developments?
Felix Keck: Global security regulations will soon make advance cargo information mandatory in the European Union, as already required by Canada, India and the United States. It’s pretty clear that Customs communications can be most effective through the use of one global information pipeline. Our solutions and products are geared to this strategy. For example, the Canadian Border Services Agency set a deadline of July 26th 2006 plus one month grace period for compliance with the new ACI legislation. We were instrumental in ensuring that Air France was in compliance by June 19th,, avoiding late penalties. We were able to process all their transactions electronically with the CBSA, including House Air Waybill information from forwarders. This was Air France’s first use of TRAXON’s Global Customs Service. And based on these results, Air France has gone ahead with us to implement transmissions with Indian and US Customs. We also offer links to French Customs, based on European regulations such as NCTS the New Computerized Transit System. Additionally, Customs applications will play an important role in e-Freight. We’ve already seen how a large number of different Customs requirements can be incorporated in the initiative.

What’s your prognosis for TRAXON’s immediate future?
Felix Keck: The industry is well on its way to paperless air freight communications. The critical issue is trust in the e-process. We think CDMP and our other products are building that trust because we deliver as promised. Customs regulations and Q Cargo initiatives are helping to build business volume. Our portfolio of customized services offers unique solutions to real needs, and this differentiates us from our competition which, in turn, creates new business opportunities. In simple terms, we’re growing because we’re focused on meeting the needs of the market. We are competitive because we are large enough to develop standard solutions for the industry. At the same time, we’re flexible enough to adapt to specific customer requirements.

And what is the long term outlook?
Felix Keck: We see a significant increase in the use of e-communications. To me, this indicates that initiatives such as e-Freight and Cargo 2000 are taking effect and that paperless communication between air cargo partners is rising consistently. I see nothing that will curtail this expansion in the future. I think TRAXON has worked hard to be in the right place at the right time. We can meet our customers’ needs and serve the industry. And that is a service combination for which we can be justly proud.

Quelle: TRAXON

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