Cargolux subsidiary, Luxcargo Handling and IBS Software recently announced their partnership with a view to digitally transforming ground handling in Luxembourg, using IBS’ iCargo Cargo Terminal Operations (CTO). The handler can currently deal with up to 1,200,000 tons of cargo per year and was looking to upgrade the digital systems in place to steer its ground handling operations. iCargo promises efficiency, transparency, speed, and paperless processes. Yet, how will IBS Software go about preparing Luxcargo Handling for the transition? CargoForwarder Global (CFG) asked Radhesh Menon (RM), Head of Cargo and Logistics Solution at IBS Software, for a few more details.
Digital first functions are on Luxcargo Handling’s menu. Soon, it will benefit from iCargo CTO functions such as barcode scanner enabled operations with real time data capture, data driven processes, real time visibility and control, accelerated adoption of paperless processes, digitized workflows, compliance with industry standards, and eventually meet ONE Record’s standards.
Sébastien Bauce, Executive Vice President at Luxcargo Handling, said: “Partnering with IBS Software will give us the opportunity to leverage digitization to consistently and easily deliver efficient ground handling services. Updating our legacy systems will allow us to have more visibility over our operations, and data, unlocking new and efficient ways of working.”
Radhesh Menon, Head of Cargo and Logistics Solution at IBS Software, commented: “This partnership with Luxcargo Handling, a key and active air freight platform in Europe, shows how the iCargo and iCargo CTO solution can meet the varied needs of air cargo and ground handling operators. We look forward to seeing the new digital capabilities that Luxcargo Handling will leverage as they continue to play a significant role in the successful distribution of global goods.”
IBS Software is now in the process of automating all air cargo transportation in and out of Luxembourg at the heart of Europe, and one of its key cargo hubs. Radhesh Menon answered a series of CFG questions regarding the iCargo CTO implementation.
CFG: Is Luxcargo Handling the first to implement iCargo CTO?
RM: No. IBS Software’s iCargo Cargo Terminal Operations (CTO) solution has already been successfully implemented across several leading ground handling and cargo organizations globally, including major airport and cargo terminal operators in Europe, the Middle East, and Asia-Pacific. Luxcargo Handling — a 100% subsidiary of Cargolux Airlines, one of the world’s largest all-cargo carriers — joins this expanding global user community to leverage a platform proven to drive operational excellence, transparency, and standardization across ground handling processes.
CFG: Has Luxcargo Handling already piloted processes, or is the implementation just starting?
RM: The implementation project commenced earlier this year (APR25) and is currently in its initial phases. The collaboration began with detailed process mapping, systems design, and integration planning. Luxcargo Handling and IBS Software are now working closely to align the solution with specific operational requirements at Luxembourg Airport (LUX). A phased validation and testing approach will ensure that each functional area is optimized before the full go-live in 2027.
CFG: Which core ground handling processes will be digitalized first?
RM: Luxcargo Handling has chosen a “big bang” implementation approach, meaning all critical cargo handling processes will be launched simultaneously rather than in phases. This includes mobility-driven, automation-focused operations designed to significantly reduce paper-based processes. The workflows will feature intuitive, wizard-like navigation and a progressive roadmap toward fully automated, work-order orchestrated processes – ultimately driving optimized, digitally enabled operations. The transformation will create a seamlessly unified business landscape, covering semi-automated warehouse operations, integration with Transport Management Systems for efficient door and dock handling, real-time dashboards for on-floor visibility, and connectivity to regulatory gateways and financial accounting systems. These capabilities will ensure compliance, streamlined billing, and smooth end-to-end operational flow.
CFG: How far along is Luxcargo in adopting IATA’s ONE Record? Will it be ready by 01JAN26?
RM: The iCargo platform is fully aligned with IATA’s ONE Record standards and will be certified for compliance by JAN26. While Luxcargo Handling’s full go-live is scheduled for 2027, it will benefit from these capabilities from day one – ensuring data interoperability and real-time connectivity with customers, partners, and authorities in line with IATA’s digital cargo roadmap.
CFG: Will other airlines benefit from Luxcargo Handling’s implementation of iCargo CTO, or only Cargolux?
RM: Luxcargo Handling serves multiple cargo airlines operating at Luxembourg Airport, in addition to its parent company, Cargolux. The deployment of iCargo CTO will therefore benefit a broad network of international carriers through faster processing, improved service reliability, and seamless digital integration. This project effectively elevates Luxembourg Airport’s position as a digitally advanced cargo hub in Europe.
CFG: How will training be conducted? How many employees will require training?
RM: A comprehensive six-month training program is planned, covering approximately 200 operational and administrative employees. This will include hands-on system workshops, simulation exercises, and role-based certification to ensure consistent user adoption across departments. IBS Software will provide on-site and remote support, as well as a train-the-trainer framework to build long-term internal expertise.
CFG: What is the project budget and expected ROI?
RM: The financial details, including project budget and ROI projections, remain confidential. However, both organizations anticipate strong returns through productivity gains, reduced errors, faster processing times and improved customer satisfaction enabled by the digital transformation.
Thank you, Radhesh, for these insights.
