Page 1

Cargotalk

Vol XII No.11 Pages 60 Rupees 50 cargotalk.in By DDP Publications

SOUTH ASIA’S LEADING CARGO MONTHLY

OCTOBER 2012

No.1 in Circulation & Readership

Postal Reg. No.: DL (ND)-11/6002/2010-11-12. WPP No.: U (C)-272/2010-12, for posting on 25th-26th of advance month at New Delhi P.S.O.

RNI No.: DELENG/2003/10642 Date of Publication: 22/9/2012

INDIA-CHINA

CATHAY PACIFIC

DELEX CARGO INDIA

trade & commercial relations

from Hong Kong to Hyderabad

focussing on domestic market

SIGN MOU TO STRENGTHEN

STARTS DIRECT FLIGHT

COMPLETES THREE YEARS

BI CEGLEE TTOGETHER

p52>

e s u o h e War nt e m e g a n Ma d technology n a d o th e m rn Mode tion bring in revolu

to

FICCI LAUNCHES ‘LOGISTICS FORUM’ TO RESOLVE INDUSTRY ISSUES


Cargotalk

From the

editor

Publisher SANJEET Editorial Director RUPALI NARASIMHAN Sr. Assistant Editor RATAN KUMAR PAUL

Cargotalk

Desk Editor NEELAM SINGH

Vol XII No.11 Pages 60 Rupees 50 cargotalk.in By DDP Publications

Sub-Editor RAMYA J. S. D’ROZARIO

SOUTH ASIA’S LEADING CARGO MONTHLY

OCTOBER 2012

No.1 in Circulation & Readership

Postal Reg. No.: DL (ND)-11/6002/2010-11-12. WPP No.: U (C)-272/2010-12, for posting on 25th-26th of advance month at New Delhi P.S.O.

RNI No.: DELENG/2003/10642 Date of Publication: 22/9/2012

Think beyond four walls

T

he modern and scientific warehousing industry in India has yet to take off. Presently, the sector is utterly unorganised. India has a total warehousing space of about 1,800 million sqft, of which only 8 per cent (144 million sqft) is in the organised sector. However, recent researches estimate Indian warehousing sector will grow at the rate of 35-40 per cent annually to become approximately US$ 60 billion industry by 2012. Currently, warehousing activities account for about 20 per cent of the total Indian logistics industry. Latest trends show that there is a huge potential for a large amount of quality warehousing space. Rapid growth of organised retail and increasing manufacturing activities in India are the key demand generators for warehousing space in India. In addition, e-Commerce option is also driving the warehousing demand. Further, the rise of domestic consumption and international trade is providing huge impetus to the growth in warehousing market. Significantly, containerised cargo traffic which leads to the growth in CFSs and ICDs adds on to the growth in warehousing sector. On the flip side, there are plenty of challenges. Inadequate physical

Rupali Narasimhan

INDIA-CHINA

CATHAY PACIFIC

DELEX CARGO INDIA

trade & commercial relations

from Hong Kong to Hyderabad

focussing on domestic market

SIGN MOU TO STRENGTHEN

STARTS DIRECT FLIGHT

COMPLETES THREE YEARS

LE-BI CEGET TOGETHER

p52>

General Manager GUNJAN SABIKHI Deputy General Manager HARSHAL ASHAR Regional Manager: South K N SUDHEER Regional Head: North & West SHIV KUMAR Assistant Manager: West ROLAND DIAS Assistant Manager Advertising MUKESH GAMRE

ouse Warehem ent Manag

and technology Modern method n bring in revolutio

to

FICCI LAUNCHES ‘LOGISTICS FORUM’ TO RESOLVE INDUSTRY ISSUES

infrastructure, lack of land availability, highly unorganised and fragmented market, lack of standardisation, complex tax regime, lack of power supply and increasing cost, and high costs in warehousing would be a major area of concern for prospective investors. Moreover, operational challenges such as supply chain inefficiency, lack of skilled manpower, inefficient material handling and lack of IT penetration need to be resolved by warehousing operators to cater to the future demand. An effective National Policy on Handling, Storage and Transportation, early shift to GST tax regime, Warehousing Act, encouragement of private investment in logistics parks and FTWZs by offering tax benefits, infrastructural developments and fast development of the Dedicated Freight Corridor would also be the desired initiatives from government to bring the warehousing/logistics industry beyond the four walls.

Assistant Manager Marketing YOGITA BHURANI Sr. Marketing Co-ordinator GAGANPREET KAUR Design RUCHI SINHA Advertisement Designer VIKAS MANDOTIA Production Manager ANIL KHARBANDA Circulation Manager ASHOK RANA DDP Publications Private Limited NEW DELHI: 72 Todarmal Road, New Delhi – 110001, India. Tel.: +91 11 23731971, 23710793, 23716318, Fax: +91 11 23351503, E-mail: cargotalk@ddppl.com, Website: www.cargotalk.in Branch Offices MUMBAI: 504, Marine Chambers, New Marine Lines, Opp SNDT College, Mumbai – 400020, India Tel.: +91 22 22070129, 22070130 Fax: +91 11 22070131, E-mail: mumbai@ddppl.com MIDDLE EAST: P.O. Box 9348, Saif Zone, Sharjah, UAE Tel.: +971 6 5573508, Fax: +971 6 5573509 Email: uae@ddppl.com CARGOTALK is a publication of DDP Publications Private Limited. All information in CARGOTALK is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part.The publisher regrets that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by CARGOTALK. However, we wish to advice our readers that one or more recognized authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of CARGOTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing.The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.This publication is not meant to be an endorsement of any specific product or services offered.The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation.All advertisements must comply with the Indian and International Advertisements Code.The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear. CARGOTALK is printed & published by SanJeet on behalf of DDP Publications Private Limited. and is printed at Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Industrial Area, New Delhi – 110028 and is published from 72Todarmal Road, New Delhi – 110001.

Editorial Director

4 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


contents

cargotalk in PRODUCT TALK your revenue with 32 Increase Dimensional Weight Pricing

LOGISTICS SERVICES Cargo India completes 42 Delex three years, focussing on domestic delivery market

Freight 44 Universal Management targets `100 crore turnover by 2014

FAMILY ALBUM COVER STORY

24

Warehouse Management in India Warehousing industry in India is undergoing rapid changes thanks to the adoption of a broad outlook and contemporary technology. Cargotalk spoke to a few leading companies

AIRLINES NEWS

INTERNATIONAL NEWS Cargo Germany ties 14 Air up with AirBridge Cargo to increase fleet

Annual Dinner: An 46 BCHAA evening with difference hosts luncheon meet 48 ACCD to discuss ÂHypnosis: An Alternate TherapyÊ Express meets 50 Indiaontime trade partners at the launch party

in India hosts 52 Celebi get-together for airline partners

TRADE ASSOCIATIONS launches Logistics 54 FICCI Forum at Infrastructure Summit in New Delhi

COLUMNS

8

South African Airways increases frequency to daily flights on Mumbai  Johannesburg route

10

Cathay Pacific starts direct flight from Hong Kong to Hyderabad

SUCCESS & ACHIEVEMENTS Sankeshwar conferred 12 Vijay with ÂTransport Personality of the yearÊ Award Ahlers India bags ÂBest Freight Forwarder AwardÊ

6 I CARGOTALK I OCTOBER 2012

POINT 22 VIEW Air Cargo Industry awaiting a push to compete global market

EDUCATION TALK Cargo Services 16 Sindhu launches educational institute for logistics

STORY 38 LEAD India China sign MoU to strengthen trade & commercial relations

industry

INDUSTRY EVENTS Achievers Award 20 ÂLogistics & Talent Hunt 2013Ê to be held on February 9, 2013

WWW.CARGOTALK.IN


Airlines News New Launch

SOUTH AFRICAN AIRWAYS

INCREASES FREQUENCY to daily on Mumbai – Johannesburg route Effective October 4, 2012, South African Airways (SAA) has decided to increase its flights on Mumbai-Johannesburg route from existing six a week to daily. In addition, the airline will also increase flights on Johannesburg-Kenya route and add additional capacity to Brazil, Cape Town and Mauritius routes over the coming weeks. he increase of frequency on Mumbai and Johannesburg route has been prompted by huge demand. The additional frequency comes hot on the heels of the fifth weekly frequency the airline launched on June 16, 2012 and the sixth on August 21, 2012.

T

OTHER INTERNATIONAL SECTORS SAA sources also informed that Nairobi g o t three additional flights, bringing the tally to 10 flights per week effective from September 13, 2012 when the airline added three additional flights to its daily schedule between Johannesburg and Nairobi in Kenya. SAA will continue operating this route with a combination of the Boeing B737-800s. Furthermore, to meet demand, SAA will add capacity to its other popular routes. In addition, a wide-body aircraft will be deployed to meet demand on the Johannesburg/ Mauritius route, which has historically proved to be more popular during this period.

„The increase in frequencies echoes SAAÊs commitment to the Indian market. This is also SAAÊs response to market demand as over the past three years where there has been a consistent growth in the market between southern Africa and India,‰ said the airline sources. SAA is the only direct carrier between Mumbai and Johannesburg. The route is being serviced with an Airbus A330-200 with a cargo capacity of 15-16 tonne per flight.

8 I CARGOTALK I OCTOBER 2012

„This announcement is part of SAAÊs overall route optimisation, which is in line with our strategy to ensure better, more frequent regional and long-haul services on routes showing a growing demand for business from South and southern Africa,‰ said the airline sources. The strongest growth is currently being experienced on SAA routes to various destinations in Africa and Latin America from India.

WWW.CARGOTALK.IN


National News Airlines Services

CATHAY PACIFIC

STARTS DIRECT FLIGHT from Hong Kong to Hyderabad Come December 1, 2012 and Cathay Pacific will introduce four services per week between Hong Kong and Hyderabad with A330-300. With 4 flights per week, this new service will add about 80 tonne capacity per week from Hyderabad. Presently, Cathay operates B747 Freighters between Hong Kong and Hyderabad twice a week with a payload capacity of 50 tonne per flight. CT Bureau Commenting on the impact of CathayÊs peaking to Cargotalk, Ashish Kapur, new services, Vikram Jaisinghani, CEO, GMR regional cargo manager  South Hyderabad International Airport (GHIAL), Asia, Middle East and Africa, Cathay said that the Rajiv Gandhi International Airport Pacific Airways, said that Hyderabad (RGIA) has emerged as an ideal destination for has been a great market for Cathay Pacific ( both airlines and passengers/shippers and is Cargo since the airline launched freighters ers well equipped to handle the additional in April this year. „We have been traffic. The airport has world-class really surprised with the number infrastructure including adequate of cities in our network suddenly The passenger parking bays, hydrant-based started selling Hyderabad after flight will be fuel farm and excellent ground the commencement of services operated by A-330, handling facilities for aircraft. from this city,‰ he underlined. „Commencement of operations The passenger flight will be 4 times a week by a world class airline like Cathay operated by wide-bodied aircraft Pacific stands testimony to the superb A-330, which will have an additional facilities and immense potential waiting payload of 20 tonne four times a week. to be tapped at RGIA. This new Cathay flight „This will strengthen our position in the will play an important role in promoting Hyderabad market. Our passenger flight tourism and trade & commerce, as Hyderabad and the freighter together will provide us has always been a favourite destination for with enough capacity giving the shippers international tourists as well as business and forwarders a gateway throughout the community,‰ he maintained. week,‰ he added.

S

Ashish Kapur

ETIHAD CARGO APPOINTS

‘CARGO MANAGEMENT SERVICES’ as new GSA for India

THE ANNOUNCEMENT BOLSTERS ETIHAD CARGO’S PRESENCE IN THE RAPIDLY GROWING INDIAN MARKET, WHERE THE AIRLINE OPERATES TO NINE DESTINATIONS

10 I CARGOTALK I OCTOBER 2012

tihad Cargo is all set to strengthen operations in India by appointing a new sales team. It has also appointed AVS Cargo Management Services as its General Sales Agent (GSA) partner. Both measures are aimed at better serving the airlineÊs cargo customers. The sales team and GSA will provide a full complement of services including: Reservations and Customer Service. The announcement bolsters Etihad CargoÊs presence in the

E

rapidly growing Indian market, where the airline operates to nine destinations  Ahmedabad, Bengaluru, Calicut, Chennai, Cochin, Delhi, Hyderabad, Mumbai and Thiruvananthapuram.

WWW.CARGOTALK.IN


Success & Achievements Freight Forwarding & Logistics Services

Vijay Sankeshwar conferred with

Ahlers India bags

‘Transport Personality of the year’ Award

‘Best Freight Forwarder Award’

RL Logistics Limited, the countryÊs premier transport and logistics company, has added two more feathers to its cap by bagging national awards in the recently held CEAT ÂIndia Road Transportation Awards-2012Ê presentation ceremony in Mumbai. CEAT India Road Transportation Awards have been introduced to reward excellence and innovative thinking in the various aspects of road transportation. The Hubli headquartered VRL Logistics Limited has been selected for ÂThe Best Customer experience in HTV categoryÊ in the Southern region. Vijay Sankeshwar, chairman and managing director, VRL Logistics, has been honoured with ÂTransport Personality of the year 2012Ê award.

A

V

12 I CARGOTALK I OCTOBER 2012

hlers India - a leading freight forwarding company in ocean and air, with a strong presence in project cargo movement, has been conferred with ÂBest Freight Forwarder (International) Award-2012Ê at the recently held South East CEO Conclave. Ahlers India is present in 14 offices across India, and is a part of the 103-year-old Ahlers Group. Based out of Antwerp, Belgium, its major global activities include agencies, international freight forwarding, contract logistics and maritime services with its focus on commodities, specialty chemicals, tobacco, machinery, and Oil & Gas.

WWW.CARGOTALK.IN


International News Air Cargo

IAG CARGO INKS AGREEMENT WITH CSAFELLC to offer temperature controlled services

Safe LLC and IAG Cargo recently announced the signing of a Master Lease Agreement to expand the IAG Cargo Constant Climate service to pharmaceutical companies requiring strict temperature management control during transportation. By leasing active temperaturecontrolled containers through IAG Cargo, freight forwarders benefit from a streamlined booking and billing process, while avoiding the requirement to return the unit to the supplier after use. CSafe containers will be available for lease on a daily/per trip or 30 day basis through IAG Cargo.

C

Commenting on the agreement, Brian Kohr, president of CSafe, maintained that IAG CargoÊs Constant Climate service is known throughout the industry as one of the finest. The AcuTemp RKN is the first and only active temperature-controlled air container with FAA, EASA, Transport Canada, Hong Kong CAD, Irish Aviation Authority IAA and Israeli CAA approvals. „This agreement provides IAG Cargo customers a great solution for their extremely important temperature-controlled products,‰ he said. According to John Hayden, global product manager , IAG Cargo, by signing an agreement with CSafe the airline can offer a multi-solution proposition that fully meets the needs of their customers. „Our partnership will allow us to continue to grow our Constant Climate product across our network while meeting customer demand for heating and cooling container options and availability. The deal will be important in helping us remain the preferred option for our customers in the temperature sensitive freight market,‰ he added. WWW.CARGOTALK.IN

OCTOBER 2012 I CARGOTALK I 13


International News Airline & Logistics

AIR CARGO GERMANY ties up with AirBridge Cargo to increase fleet The Hahn-based carrier Air Cargo Germany (ACG) will up its four units comprising B747-400 freighter fleet by two additional Jumbos. Both aircraft are Extended Range Freighters (ERF) and equipped with a nose loading hatch, which comes from ACG’s stakeholder AirBridge Cargo (49 per cent). The B747-400ERF can carry a maximum payload of 120 tons and fly 9,120 km nonstop. That is a range advantage of almost 1,000 km to the B747-400SF (special freighter), when fully loaded, capable of transporting a maximum of 110 tons. Next year, two out of the four B747-400SFs currently operated by ACG Air Cargo Germany will be returned to lessor Martinair. „We intend to replace these aging aircraft either by getting two younger B747-400Fs or the sister model B747-400ERF,‰ informed Bock.

he ACG expects both ERFs to join the fleet in October, depending on the certification by the German Aviation Authority Luftfahrt-Bundesamt. Commenting on the development Michael Bock, CEO, ACG said, „The aircraft enhance our reach and market options substantially due to their improved range capabilities compared to the B-400SFs and their nose loading door.‰ These enable ACG to offer clients nonstop flights between Germany and Mexico or to destinations in far east and simultaneously lift outsized, very heavy or voluminous shipments.

T

Effective October, ACG will add Beijing to its network, offering three weekly roundtrips to the Chinese capital. The new route complements the Shanghai services which have been part of the airlineÊs schedule for several years. In fiscal 2011, ACG Air Cargo Germany turned over 230 million euros. The upcoming six freighters comprising business plan foresees sales of 430 million euros annually. The overall load factor in 2012 averages 80.4 percent, including both line-haul and charter traffic. A s t a f f o f 180 stands on ACGÊs payroll.

SEKO LOGISTICS APPOINTS new chief sales officer EKO Logistics, a global provider of supply-chain solutions, including comprehensive transportation, logistics and IT solutions, has appointed Joe Bento to its executive management team as chief sales officer, based in North America.

S

Joe Bento 14 I CARGOTALK I OCTOBER 2012

Joe joins SEKO from CEVA Logistics where he held the positions of president of global freight management; president for the Americas Region, and most recently, executive vice president. Joe had previously been president, North America and chief marketing officer for EGL prior to its acquisition by CEVA Logistics.

Commenting on his decision to join SEKO Logistics, Joe said, „It was important for me to find an organisation with the right philosophy, putting people and the customer first. SEKO has a unique operating model that facilitates quick customer decisionmaking at the forefront and is among the top 5 per cent of global logistics providers working under one operating system and one central database.‰ According to him, with the upcoming and revolutionary new MySEKO release in the next 60 days, SEKOÊs technology will be an industry standard for excellence. WWW.CARGOTALK.IN


Education Talk New Launch

SINDHU CARGO SERVICES launches educational institute for logistics g industry y ndiaĂŠs leading logistics company, Sindhu Cargo Services, has announced the launch of an educational institute (Sindhu Educational Institutions) on October 15, 2012. The initiative is prompted by the present scenario of logistics industry in India, where the sector has been facing the dearth of quality manpower.

I Sindhu Educational Institutions Courses  Job-oriented Certificate Course on Supply Chain and Logistics  Certificate Course on Supply Chain and Logistics  Specialised Certificate Courses in different functional subjects  Week-end course for working professionals

16 I CARGOTALK I OCTOBER 2012

The institute will be headed by JSA Julius, a retired deputy commissioner of customs and central excise. He carries rich experience of imparting training to officers of the department through National Academy for Customs, Excise & Narcotics. The faculties working/retired professionals drawn from the industry for theoretical training. The institute is situated in a sprawling campus with state-of-the-art training facilities. The training programme of the Institute includes extensive class room and on-the job

sessions with on-site visits. Sindhu Educational Institutions offer job placement either in-house or with associates overseas. According to Sindhu Educational Institutions, the courses impart theoretical training in the classroom followed by real-time on-the-job training. In addition to this, students are offered exposure to practical experience at ICDs, ports, airports & SEZs.

WWW.CARGOTALK.IN


On the Move Appointments



Damco appoints new Global Head of Industrial Vertical

Schenker India gets new Managing Director

ffective August 1, 2012, Damco has appointed Steve Hoffman as Global Head for the Industrial Vertical. Hoffman will be responsible for developing the global strategy for DamcoĂŠs customers within the areas of industrial manufacturing. Hoffman has over 30 years of industry experience in operations, Steve Hoffman business development and account management. Earlier he was with Kuehne + Nagel in a similar role of leading the Industrial Vertical in North America. Prior to this employment, he worked for Panalpina as the global leader of the Automotive Vertical. He is based out of Itasca, IL (CHI) and reports to Global Head of Strategic Sales Steve Sienkiewicz.

ffective August 1, 2012, Reiner A Allgeier has been appointed as new managing director of Schenker India, which is a 100 per cent subsidiary of Schenker AG. He has been with DB Schenker for last 37 years and handled different assignments for the organisation across the globe. Before joining the current position, Allgeier was the managing director for DB Schenker in Philippines. According to the company sources, he will work closely with the senior management team in India to ensure the continued commitment of the India operation to its customers.

E

18 I CARGOTALK I OCTOBER 2012



E

Reiner A. Allgeier

WWW.CARGOTALK.IN


Industry Events Logistics & Supply Chain

‘LOGISTICS ACHIEVERS

AWARD & TALENT HUNT 2013’ to be held on February 9, 2013 The second edition of ‘Logistics Achievers Award & Talent Hunt 2013’ will be held on February 9, 2013 in New Delhi. The event will be organised by Million Minds Management Solution (formerly T2P Consultants) in association with Chartered Institute of Logistics and Transport, India. CT Bureau

Objectives of the Summit  To reward and recognise the unearthed professionals who gave their significant contribution to shape Indian Logistics Industry.  To generate interest and give career direction to students in logistic sector.  To render a platform for enhancing business professional links.

his conference cum award function is expected by professional and students who shall be recognised and rewarded by the eminent jury. In addition, the event will provide opportunities to diverse groups for making presentations, holding competitions and exhibiting their talents.

T

Meanwhile, Million Mind Management Services has taken an initiative to create a common platform namely ÂRound Table on Human Resource Challenges in Logistics and Supply ChainÊ. The principal idea of the round table is to interact and discuss the issues and challenges on a common platform and strategically devise an undisputed solution to the concern areas. Speaking at the ÂRound TableÊ held recently in New Delhi, Prem Prakash, director, Million Mind Management Services, maintained that Logistics Achievers Award & Talent Hunt event provides a great marketing prospect for logistics companies too. „In addition to the

Event organisers and industry representatives at the launch function

exciting and knowledgeable performances, there will be a large spectator presence and on-site media attention. This is a great chance for participants to gain a positive association with international organisation of repute like Chartered Institute of Logistics & Transport, International and entire Indian logistics fraternity from verticals like retail automobile, pharmaceutical, e-commerce, etc.

AIR CARGO COMMUNITY MOURNS THE LOSS OF AN IT MAN urmeet Singh, general manager, DIAL, responsible for Integrated Cargo Management System at Cargo Terminal, IGI Airport, passed away on September 13 due to cardiac arrest. He was 52 years old and is survived by his wife, son and a daughter.

G

Gurmeet Singh

Singh had a very pleasing personality and helping nature. Professionally, he had an experience of 28 years in international air cargo. He worked for Central Warehousing Corporation (CWC), then joined International Airports Authority of India (IAAI) in 1987 and then DIAL in 2007. Singh ventured into Cargo IT field in 1989 as a beginner when IAAI computerised their cargo operations. Soon he acquired technical

20 I CARGOTALK I OCTOBER 2012

skills required to write software, design system formats and run the Computer Centre. In 1995, he was instrumental in launching ICMS at four metro airports of India. In 2006, he introduced EDI among Customs, user Agencies and AAI in Export Cargo operations and then in Imports. Of late, he was working on various Cargo IT projects to bring the entire country on a common platform and also providing Cargo IT support to both the Cargo Terminal Operators at IGI Airport. Industry experts say that SinghÊs sudden demise has been a great loss for the entire air cargo industry, which is undergoing transformation to e-freight.

WWW.CARGOTALK.IN


View Point Market Scenario

AIR CARGO

INDUSTRY awaiting a push to compete global market Though the economy has taken a downward turn in major markets like USA and EU, there is an opportunity for India because of its initiatives for exploring new markets. The air cargo industry has to grab the opportunity by offering hassle-free and cost-effective infrastructure to the shippers, feels SL Sharma, founder and managing director, Skyways Group and vice president of ACAAI in an interview with Cargotalk. Ratan Kr Paul harma emphatically said that though there is a slowdown in export from India because of the present economic scenario in the US and EU, the market scenario will gradually change towards positive direction. „We are quite confident that Indian industry will grow and overcome the challenges very soon. Most of the established players in the industry have already started diversifying their market like Brazil, South America, Latin America, South Africa, Turkey and Russia which are fast developing. We expect a good volume of business thanks to the economy of these countries. We have also experienced a positive response from these countries and our export import has shown a good sign of improvement,‰ he maintained.

S

Sharma stressed that Indian airports are becoming exceptionally expensive owing to the high airport charges. This is squeezing the business of airlines. „Unfortunately, the Airport Economic Regulatory Authority (AERA) which is the authority to approve such increase has done it without taking consent from stakeholders. Airport operators like AAI and DIAL are indirectly forcing airlines to increase charges, which is resulting into higher transaction cost of exporters and importers,‰ he said.

SIGNIFICANCE OF ACAAI CONVENTION

According to Sharma, ACAAI Convention brings all air cargo stakeholders on one platform where they get opportunity to discuss Sharma is also expecting good traffic from on various issues, which subsequently helps the Far East countries like Indonesia, Korea, them in improving the growth of their export ea, th Hong Kong and China. „Introduction and import of India. „All challenges and of Free Trade Agreement by the impediments halting the growth government will facilitate and are also discussed with an aim to Annuall convention resolve the same. Hence, such benefit our exporters/importers of ACAAI will be tremendously. Due to this, FTA interactions among the various our logistics industry will definitely players definitely bring progress held from Nov grow because of the fact that to the industry as well as the warehousing and distribution will be countryÊs economy,‰ he said. required in a big way,‰ he explained. Commenting on the importance of the 39th Annual Convention of the Air MAJOR ISSUES Cargo Agents Association of India (ACAAI), In SharmaÊs opinion, Indian airports are lacking which is taking place from November 22 - 25 in providing infrastructural facilities like X-ray in Istanbul, Sharma maintained that it would machine, weighing machines, fork lifters, facilitate investment and trade between cranes, adequate space and parking facilities India and Turkey. „Turkey is a very good for loading and unloading of trucks, etc. transit hub. The country has two European and six Asian countries as neighbours along „With the growth of air cargo, we must its land borders,‰ he pointed out. Sharma improve the standard of our airports by highlighted that Turkey has gradually opened providing pre-requisite facilities near the up its market through economic reforms by airport like warehouses and Shipper-built Unit reducing government control on foreign Load Devices concept to bring in efficiency. In trade and investment and privatising publicly addition, cargo dwell time must be reduced,‰ owned industries. Sharma viewed.

22-25

SL Sharma

WITH THE GROWTH OF AIR CARGO, WE MUST IMPROVE THE STANDARD OF OUR AIRPORTS BY PROVIDING PRE-REQUISITE FACILITIES NEAR THE AIRPORT LIKE WAREHOUSES AND SHIPPER-BUILT UNIT LOAD DEVICES CONCEPT TO BRING IN EFFICIENCY

22 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


Cover Story Emerging Products

WAREHOUSE Modern method and technology to bring in revolution s technologically sound warehousing management a costly affair and will it be worthwhile when several other fundamental issues hold back the prospective investors? Experts have divergent views. „The country is still trying to define what a modern warehouse is all about. Yes, we are definitely moving away from what was essentially a godown (four walls covered with a roof) to what we can call

I

24 I CARGOTALK I OCTOBER 2012

a proper warehouse,‰ said Radharamanan Panicker, CEO, CSC India. According to him, a modern warehouse envisages not just automation with multi rack and palletisation infrastructure, but also skilled manpower- both managerial as well as operational, backed by IT/technological solutions such as ERP, GPS, etc. For that to happen, the industry outlook towards outsourcing storage functions has to be changed. „The buying decision cannot be WWW.CARGOTALK.IN


MANAGEMENT IN

INDIA

Warehousing industry in India is undergoing rapid changes thanks to the adoption of a broad outlook and contemporary technologies. With huge demand for scientific warehouses that cater to 3PL (third party logistics) outsourcing market for fast growing products, logistics companies are now focussing on this emerging area in a big way. Cargotalk spoke to a few leading companies to highlight their efforts‌ Ratan Kr Paul WWW.CARGOTALK.IN

OCTOBER 2012 I CARGOTALK I 25


Cover Story Emerging Products

price-only, but also service parameters and ability of service providers to meet the SLA (service-level agreement),‰ he added. Further, said Panicker, while great efforts are being made to build good warehouses, most warehouses are built with less than 15 mt height and with less than 1,00,000 sq mt footprint. This doesnÊt allow for use of automation and economy of scale.

Radharamanan Panicker

WHILE GREAT EFFORTS ARE BEING MADE TO BUILD GOOD WAREHOUSES, MOST WAREHOUSES ARE BUILT WITH LESS THAN 15 MT HEIGHT AND WITH LESS THAN 1,00,000 SQ MT FOOTPRINT. THIS DOESN’T ALLOW FOR USE OF AUTOMATION AND ECONOMY OF SCALE

Akash Bansal, head logistics, Om Logistics, put his perception in this way. „Necessity is the Âmother of inventions. Today, we have very costly manpower supply and also do not have modern warehouses. However, we are still hesitant to venture deeper into automation. I feel, that the current cost of automation is more compared to the current manual function for those activities. Rather, we are ready for any innovative means which can bring some value addition in the existing value chain. Otherwise, we would not be competitive in terms of cost (as we would be over priced),‰ Bansal argued. He felt that there is an extensive demand for modern warehousing. However, as it leads to an increased cost, the same can be Âbuilt -to-suitÊ basis for those who require it. „This would be a future model that everybody should be ready for, as we are witnessing steep increase in manpower cost in India. The increasing cost leads logistics companies to plan for more automated systems to overcome the pressure,‰ he emphasised. Suunil Dabral, country head, India, Schaefer S y s t e m s International, maintained that historically a warehouse has been defined as a commercial place for storage which was influenced by various factors like market geographies, seasonality, economies

26 I CARGOTALK I OCTOBER 2012

of scale, safety stock to manage the transit time from distant factories, etc. However, what differentiates a modern warehouse from a conventional warehouse is the Intrafunctionality of the warehouse. Unlike a conventional warehouse, a modern warehouse acts as a catalyst for smooth running of the supply chains. According to Dabral, in the modern warehousing process, the focus is on the space, time, quantity throughout and resources management rather than simply space management. All this is made possible by a thoughtful integration of various technologies available today like pallet racking, shelving, ÂMan to Goods - RF terminalsÊ, ÂPick to VoiceÊ, ÂPick to LightÊ, ÂMan to Goods - Mini LoadÊ, ÂPallet Load AS/RSÊ and many other advanced Robotic systems. „As these technologies come for a price, so a clear ÂvisionÊ is needed. Seeing all this in context of Indian warehousing systems, I would say that there is definitely an increasing awareness about using modern warehouses today,‰ Dabral said. He viewed that, contract logistics has played a vital role in spreading the outsourcing benefits to the customers. „The expectations from a modern warehouse are ever increasing today. I think this is the right trend as users of those warehouses have a control on losses and shrinkages, visibility of the inventory with better inventory management, reduced labour costs in order picking, resulting into transfer of benefits to everyone in the value chain. A modern warehouse equipped with all modern technologies can actually reduce response time to the market demands; ensure product availability yet commanding savings across the supply chain,‰ he explained. G Balaraju, managing director, Sindhu Cargo Services, observed that modern warehouse commands more activities and facilities than a mere storage and delivery. „Earlier, most of the warehouses were either industrial sheds or buildings built for some other purpose which were lacking safety and not suitable for entry of vehicles. „Even today, there are not much operators who have expertise in providing entire warehousing solutions,‰ he said. Anil Arora, managing director, MJ Logistics Services, endorsed BalarajuÊs viewpoint. In his opinion, initially warehouses were built just to store goods where there was limited focus on productivity and efficiency. But today, customerÊs expectation and emphasis have changed to quality in handling, speed in WWW.CARGOTALK.IN


receipt and dispatch, and better output. Thus demand for modern warehouses is increasing and ample modern warehouses are being built. However, he pointed out the difference between a Âmodern structureÊ and an Âefficient structureÊ. „Just putting fancy roofing, PEB (pre engineered buildings) structures, etc., may make the warehouse look modern, but real efficiency comes with investing in productivity enhancing designs and features. Also comprehensive focus on EHS (environment, health and safety) equipment and installations is missing as it adds to construction cost without any additional revenue. Hence, most warehouse developers give it a miss. There are only limited warehouses which are fully equipped with all modern amenities and technologies and are WMS enabled,‰ he underlined.

PRODUCTS IN PLACE  Oil Field Warehouse & Services (OWS)

 Cargo Service Center CSC offers a single window air cargo handling solution in its facility at Indira Gandhi International Airport, Delhi, unlike others who offer only physical handling activities. „Airlines are forced to either carry out the remaining activities like document and IT handling themselves or find another agency. In our facility, the airlines donÊt need to attend to any handling related activities or engage another party to do such activities,‰ Panicker said, highlighting a crucial aspect of air cargo handling at the terminal/temporary warehouse. Besides, in the second phase, CSC will be implementing part automation of package storage for imports and export cargo on cityside at the same time by implementing automated ULD management system. „This should be ready by September 2013. This will ensure that human intervention to store and retrieve packages or ULD is reduced to bare minimum ensuring higher degree of reliability, efficiency, security and control,‰ Panicker shared.

According to Vineet Sharma, director, Oil Field Warehouse & Services (OWS), in the present scenario, with more international companies coming to India as well as an increased exposure of Indian service providers to the international market, there is an increased  OM Logistics demand of modern warehouses. „Based on „We have always been a customer-driven the standards prevalent in the international organisation and are ready to take on any market today, OWS already meets such challenge,‰ said Bansal. But at or exceeds all requirements. But this stage, Om Logistics is focussing There is a world more on customer specific there is a conscious effort to keep ourselves abreast with the latest requirements and would try to of difference developments to ensure we are innovate as per its customers. between a modern „We early adopters and not imitators,‰ are trying to have more and efficient he said. modern and innovative solutions, structure which we can incorporate at a yet He asserted that OWS has always nominal cost in our present green believed in being early adopters of field projects under construction. It technology rather than followers. „In fact, we should be kept in mind that all the possible at OWS believe in taking risks by trying and MHE (material handling equipment) and testing new technologies and new ideas that systems are available on a modern warehouse can improve the lives of our employees and with the current cost line. It is desired to be the business of our customers,‰ he said. Sharma practised by all organised logistics companies,‰ also claimed that OWS was the first service he continued. provider based around the Indian SEZ act by providing warehousing space that not only  Schaefer Systems International slashed the logistics costs for all the operators Dabral informed that Schaefer introduced and contractors in India, but helped increase award-winning products like SOS (Schaefer the overall efficiency of the industry by cutting Orbitor System) for high density storage, mobile down lead times. „In spite of the fact that OWS racking, pallet live racks and push back racks, was started with zero external funding or debt, conveyor systems, Schaefer Carousal System we implemented a WMS that was at par with (SCS), order picking systems, Logimat, etc. international standards. Our beginnings were „Schaefer is the only company which is fully small and humble but we did not compromise capable of offering seismic design compliant on quality of services at any step. Both the solutions. Apart from these, we also have our facility and the WMS in place has passed the own warehouse management system (WMS) strictest of scrutiny by international companies as ÂWAMASÊ, AS/RS and Schaefer Robo known for their quality standards and they are Pick (SRP) systems which makes use of the our customers today,‰ he added. ÂMachine Vision TechnologyÊ,‰ said Dabral. WWW.CARGOTALK.IN

Akash Bansal

Suunil Dabral

G Balaraju

OCTOBER 2012 I CARGOTALK I 27


Cover Story Emerging Products

He asserted that the most unique fact about  MJ Logistics Services Schaefer is that all these systems are developed Arora informed that MJ Logistics Services in-house and the company is an expert in has created approximately 2,00,000 sq ft end- to- end integration of all these of modern Logistics Center at Palwal technologies, thus making Schaefer (Haryana), which provides both a ÂOne stop solutionÊ for all intraambient and temperature logistics needs. „Being a German controlled warehousing under company, in the last 75 years, the same roof. It is operational sq Schaefer has made its mark for at full occupancy. „We have ft of modern quality and the results. Our result the capability to expand the Logistics Center driven approach motivates us to same to up to another 3,00,000 recommend one solution that fits sq ft. We have also successfully at Palwal all,‰ he stressed. implemented Red PrairieÊs WMS at our cold chain division at Palwal,‰ he shared.  Sindhu Cargo Services Sindhu Cargo Services has established a stateof-the-art warehouse at Bengaluru measuring  Challenges and Recommendations 65,000 sq ft and completely equipped with fire According to Panicker, development of hydrants, racks, stackers and other facilities. FTWZ augers well for the development of These facilities are well supported by trained modern warehousing infrastructure in the manpower and robust WMS software. country. Moreover, there is a need for a „Besides, we operate warehouses at Chennai, logistic policy and a warehouse development Mumbai, Hyderabad, Cochin and Delhi and policy with tax incentives as warehouse is a can cater to any customer requirement. We capital intensive activity. Besides, there has to have our own fleet consisting of more than be a defined warehousing zone in the country 200 vehicles to support distribution all over in the major cities in each state, with a single India,‰ Balaraju added. window clearance system.

2,00,000

Anil Arora

SINDHU CARGO SERVICES HAS ESTABLISHED A STATEOF-THE-ART WAREHOUSE AT BENGALURU MEASURING 65,000 SQ FT AND COMPLETELY EQUIPPED WITH FIRE HYDRANTS, RACKS, STACKERS AND OTHER FACILITIES. THESE FACILITIES ARE WELL SUPPORTED BY TRAINED MANPOWER AND ROBUST WMS SOFTWARE

28 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


Cover Story Emerging Products

support from the government as regard to reduction of interest rates and procuring land for warehouses, it is very difficult to develop the industry. Besides, road conditions and other infrastructural deficiencies make it very difficult for a warehouse operator to meet delivery deadlines especially for companies operating on JIT (just in time) inventory management. Moreover, there is acute shortage of skilled manpower.

An overview of OWS warehousing facility in Visakhapatnam Special Economic Zone

Panicker believes that the main challenge today is the shifting timeline for implementation of GST in the country. It would create a major upheaval in the way the warehouse is to be developed and where to develop. Secondly, outsourcing in the country has not reached a level where service providers can comfortably make long-term expansion plans. „Everyone knows that size matters, but if the demand doesnÊt keep pace with the increase in capacity, then the industry is doomed. In this respect, the Union government and all state governments need to quickly decide on the opening of the retail segment to FDI at the earliest,‰ he appealed. Bansal reiterated that the only challenge in modern warehousing is cost. As more automation means increased cost and delayed ROI (return on investment). „Moreover in India, the logistics model is predominantly influenced by the cost and not by quality. I feel once we have a mix of these variables in place, it will enable logistics players to have a more enhanced warehouse model,‰ he maintained.

Vineet Sharma

SINCE THE LOGISTICS INDUSTRY IS NOT RECOGNISED AND THERE IS NO SUPPORT FROM THE GOVERNMENT AS REGARD TO REDUCTION OF INTEREST RATES AND PROCURING LAND FOR WAREHOUSES, IT IS VERY DIFFICULT TO DEVELOP THE INDUSTRY

30 I CARGOTALK I OCTOBER 2012

According to Bansal, logistics should be first given an accreditation of an industry. This would enable logistics players to be close to their customers at some proposed industrial parks. „I feel this would further enhance our capabilities and help us reduce cost in the value chain. Such cost savings can always allow room for modern warehouse management,‰ he urged. Balaraju maintained that since the logistics industry is not recognised and there is no

„Government should create Warehousing Zones at strategic locations and allot land at subsidised rates. Adequate emphasis should be given on building roads and highways to international standards as we are competing in the global market. There should be more recognised institutes or colleges aided by the government to focus on warehouse management courses,‰ Balaraju recommended. Arora also felt that the lack of large land parcels, lack of clarity in the policies pertaining to warehousing and logistics, clubbing warehousing sector with the real estate instead of infrastructure and customer reluctance to pay in accordance to modern warehousing facilities are the major challenges need to be addressed by the government as well as industry stakeholders. „I think the major challenge will be price acceptance. Warehousing companies will have to educate their customers about the benefits of the efficiencies that can be brought into the system by adopting modern warehousing,‰ suggested Sharma. According to him, the concept of the total cost of ownership is still not that well adopted in India. Some customers who may tend to look at the cost on its own are bound to miss out on the tangible and intangible benefits that will eventually add both to the top and bottom line. „Not just modern warehousing, but warehousing, in general, needs somewhat of a boost from the government. Today, one of the common complaints we hear from other warehousing companies is about unclaimed or abandoned goods and unsettled invoices. The laws in place need more teeth and faster execution. In such cases not only is the company suffering loss but its space, which is its inventory, is also getting locked up, thereby adding to the vows,‰ Sharma said, unveiling the one critical area that requires sincere efforts by all for the greater interest of the warehousing industry. WWW.CARGOTALK.IN


Product Talk Cargoscan

INCREASE YOUR REVENUE

WITH DIMENSIONAL WEIGHT PRICING Dimensional weight pricing ensures that large and bulky items are invoiced according to the space they take up rather than actual weight. In order to maximise revenue, a carrier should compare actual weight with dimensional weight and use the greater of the two as billable weight. Read on to discover more about how to maximize your revenue through dimensional weight pricing and automatic measuring. ustomer declared measurements should be checked to ensure that invoices reflect the actual size of each shipment. Revenue Recovery is a term used to describe the protection of revenue through automatic dimensioning.

C

 What is dimensional weight and how is it used? Dimensional weight pricing was first introduced by international air carriers in order to make efficient use of cargo space. It has become standard in the transport industry and today is used by all major carriers. The objective of such a pricing structure is to ensure that items are invoiced based on the space they occupy, not just their weight. The dimensional weight of an object is calculated by determining its cubic size and dividing this number by a dimensional factor. The International Air Transport Association (IATA) established a standard dimensional factor, however companies regularly choose their own factor based on the average density of their shipments.

 Dimensional weight exceeds actual weight in a large number of shipments. If you have a high number of low density items that you price, based on actual weight, there is a huge potential for revenue recovery.

 Maximising Revenue Potential IF YOU DON’T CONSIDER DIMENSIONAL WEIGHT WHEN PRICING, AND IF YOU DON’T CHECK THE MEASUREMENTS OF YOUR CONSIGNMENTS AUTOMATICALLY, YOU ARE MISSING OUT ON REVENUE THAT IS RIGHTFULLY YOURS

32 I CARGOTALK I OCTOBER 2012

Your exact potential for revenue recovery depends on the goods you ship and your pricing structure. While one company may recover 1 extra per parcel, another company can recover over 5 per parcel. If you send a lot of high volume, bulky products that are low in weight, the potential to recover revenue is much higher than if your average shipment consists of high density objects.

 Getting Paid Properly Not only will you determine the billable weight by weighing and dimensioning shipments automatically, you will also discover any discrepancy in measurements provided by your customer. Shippers often donÊt have the time or capability to provide accurate data and under-reporting of numbers is common. If the customer who delivered the example package above mis-calculated the length, width and height by 1 mm, the billable weight would increase by another 14 per cent after discovering the error with an automatic system. Extra revenue gained through this extra quality check is money that would otherwise have been lost.

 Why is Automatic Measuring Necessary? Even if you do measure the dimensions of your freight, but you do it manually, you wonÊt recover all potential revenue. Manual measuring is prone to error. The logic of an automatic system is based on the space an object occupies and how you can stack it. When an object is not perfectly rectangular, the system calculates the smallest rectangular box that can enclose the object. If the dimensional weight of that theoretical box is greater than the actual weight, it will be used as billable weight. Data provided by a Weights and Measures approved system is always reproducible.

 Protect your Revenue and your Brand No business can afford to just give their services away. If you donÊt consider dimensional weight when pricing, and if you donÊt check the measurements of your consignments automatically, you are missing out on revenue that is rightfully yours. Investment in an automatic dimensioning and weighing solution and a switch to dimensional weight pricing is foolproof. WWW.CARGOTALK.IN


Cargo Performance Export/Import

DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT, IGI AIRPORT, NEW DELHI (AIRLINE-WISE IMPORT/EXPORT CARGO PERFORMANCE FOR THE MONTH OF AUGUST 2012) S. No. Airlines

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73

Export(MTs)

Export Perishable Cargo (MTs)

Export (with Peri.) (UPL)(MTs)

Import

Total Cargo

All wt. in mt. % of Total

Jet Airways 1064 211 1276 1592 2867 11% Emirates 837 1150 1988 457 2444 10% Cathay Pacific 590 2 592 1710 2303 9% British Airways 813 91 904 790 1694 7% Singapore Airlines ................... 576 ............. 110 .............. 686 ..............869 ..............1555 ............. 6% Thai Airways 306 50 357 980 1337 5% Fedex Express Corpation 828 32 861 335 1196 5% Air India 304 405 709 483 1191 5% Lufthansa Cargo Airline 417 87 504 612 1115 4% Malaysian Airline System ......... 302 ...............22 .............. 324 ..............413 ............... 738 ............. 3% Etihad Airways 270 85 355 341 697 3% Klm 339 81 420 205 625 2% Kalitta Air 275 0 275 335 610 2% Qatar Airways 298 87 385 218 603 2% Virgin Atlantic ................................272 .................... 3 .................. 274 .................298 ...................572 ................ 2% Uzbekistan 309 19 328 170 499 2% Martin Airline 145 19 163 315 478 2% Turkish Airlines 311 22 333 119 452 2% Finnair 327 10 337 110 447 2% Air France.......................................213 .................... 4 .................. 217 .................154 ...................371 ................ 1% Saudia 119 189 309 11 320 1% Aeroflot Cargo Airlines 161 61 222 50 272 1% Japan Airlines 85 4 88 182 270 1% China Eastern Airlines 122 1 123 134 257 1% Austrian Airlines .............................135 .................. 25 .................. 160 .................. 84 ...................244 ................ 1% United Airlines 137 4 141 96 236 1% Air China 100 7 106 91 197 1% Unitop Airlines 0 0 0 181 181 1% Blue Dart 136 0 136 5 142 1% Gulf Air.............................................96 .................. 37 .................. 132 .................... 4 ...................137 ................ 1% Indigo Cargo 85 1 85 44 130 1% Asiana Airlines 31 0 31 87 118 0% Ariana Afghan Airlines 82 0 82 30 112 0% Mahan Air 69 16 85 8 93 0% Eva Air..............................................20 .................... 0 .................... 20 .................. 70 .....................90 ................ 0% Dhl Express 0 0 0 87 87 0% Aerologic 12 0 12 73 84 0% Air Mauritius 62 19 81 3 84 0% Kam Air 80 3 83 0 83 0% China Southern Airlines ...................29 .................. 21 .................... 50 .................. 29 .....................79 ................ 0% Ethopean Airlines 18 2 20 59 79 0% China Air 35 5 40 32 71 0% Sri Lankan Airlines Ltd 34 3 38 29 67 0% Safi Airways 58 0 58 3 62 0% Air Arabia .........................................44 .................... 1 .................... 45 .................... 1 .....................46 ................ 0% Kuwait Airlines 2 36 38 6 44 0% Air Shagoon 36 4 41 0 41 0% Biman Bangladesh 23 4 27 13 40 0% Philippine Airlines 26 3 29 12 40 0% Air Astana .........................................20 .................. 15 .................... 35 .................... 2 .....................37 ................ 0% Pakistan International 4 0 5 18 23 0% Ups 0 0 0 18 18 0% Oman Air 10 4 14 1 15 0% Royal Jordanian Airlines 10 0 10 1 11 0% Turkmenisthan Airlines ..................... 8 .................... 0 ...................... 8 .................... 0 ...................... 8 ................ 0% Air Shagoon 7 0 7 0 7 0% Aerosvit 3 2 5 0 6 0% Jetlite 0 0 0 4 4 0% Iraqi Airways 1 0 1 0 1 0% Druk Air ............................................ 0 .................... 0 ...................... 0 .................... 0 ...................... 1 ................ 0% Tajik Air 0 0 0 0 0 0% Kingfisher Airlines Ltd. 0 0 0 0 0 0% Swiss World Cargo(India) 0 0 0 0 0 0% Elal Israel Air 0 0 0 0 0 0% Air Shagoon ....................................... 0 .................... 0 ...................... 0 .................... 0 ...................... 0 ................ 0% Mera Travels 0 0 0 0 0 0% Axios Aviation Services 0 0 0 0 0 0% Flywell Aviation Pvt.Ltd 0 0 0 0 0 0% Air Shagoon ....................................... 0 .................... 0 ...................... 0 .................... 0 ...................... 0 ................ 0% Hercules Aviation Pvt Ltd 0 0 0 0 0 0% Fzc Air People I. (P) Ltd 0 0 0 0 0 0% Flywell Aviation Pvt.Ltd 0 0 0 0 0 0% Aero Space One 0 0 0 0 0 0%

Total Cargo handled in August’11 % VARIATION

10698 13015 -17.81%

2960 3275 -9.62%

13658 16290 -16.16%

11976 13144 -8.88%

25634 29434 -12.91%

100.00%

## Cargo Handled at Centre for Perishable Cargo

34 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


MUMBAI CSI AIRPORT EXPORT/IMPORT CARGO TONNAGE HANDLED IN AUGUST 2012 (Including TP Cargo)

WEIGHT IN TONNES

S. No. Airlines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

Export General

Jet Airways 1474.57 Emirates 1547.99 Cathay Pacific 1281.43 Lufthansa 681.30 Singapore Airlines ...................... 576.16 British Airways 676.89 Air India 410.26 Qatar Airways 308.01 Etihad Airways 465.58 Swiss Intl. Airlines ....................... 366.60 Saudi Arabian Airlines 555.74 Federal Express 445.63 Turkish Airlines 440.61 Thai Airways 245.96 Ethopian Airlines ........................ 632.38 Air France 271.24 Malaysian Airlines 369.91 UPS 127.00 Delta/KLM Airlines 161.18 Air Cargo Arologic C/O Lufthansa.............. 0.00 Kenya Airways 354.18 Korean Air 253.90 Gulf Air 119.60 South African Airlines 307.27 Fin Air ......................................... 255.51 Kuwait Airways 54.24 Air Arabia 56.44 Charters 0.00 Blue Dart 96.04 Air Mauritius ............................... 145.89 Indigo Air 112.12 United/Continental Airlines 53.76 EL-AL Airlines 44.51 Srilankan Air 45.21 Iran Air .......................................... 56.90 Oman Air 29.33 Bangkok Airways 44.96 Yemenia Airways 35.42 Pakistan intl Airlines 26.01 Baharin Airlines ............................ 30.21 Egypt Air 19.27 Air China 8.58 NorthWest Airlines 0.00 Royal Jordanian 11.47 Kingfisher Airlines .......................... 0.00 Qantas 0.00 Royal Jordanian Airways 0.00 Others 0.77 TOTAL

13200.02

Export Perishable 1241.09 1489.14 31.53 427.33 ............. 162.81 461.23 1005.91 406.94 56.39 ............. 113.27 209.38 60.00 51.65 84.48 ...............10.44 144.64 38.48 15.24 121.00 .................0.00 0.34 0.54 228.52 12.69 ...............24.00 118.88 103.12 0.00 0.00 .................2.77 5.77 1.28 2.03 7.97 ...............10.51 29.00 0.96 8.35 4.86 .................0.00 0.00 0.00 17.52 0.00 .................0.00 0.00 0.00 8.12 6718.18

Total Export

Import

Total Exp+Imp

2715.66 2394.53 5110.19 3037.13 1026.72 4063.84 1312.96 1183.75 2496.71 1108.63 1353.91 2462.53 ............. 738.97 .............1230.17 ........... 1969.13 1138.12 698.44 1836.56 1416.17 139.34 1555.51 714.95 391.39 1106.34 521.97 494.14 1016.11 ............. 479.87 .............. 426.65 .............906.53 765.12 77.71 842.83 505.63 310.19 815.82 492.26 222.73 714.99 330.45 327.64 658.08 ............. 642.82 .................. 2.22 .............645.04 415.88 218.89 634.77 408.39 216.51 624.90 142.24 365.00 507.24 282.18 159.60 441.78 ................. 0.00 .............. 359.69 .............359.69 354.52 4.63 359.15 254.43 96.86 351.29 348.12 2.63 350.74 319.96 24.88 344.84 ............. 279.51 .................. 0.00 .............279.51 173.12 14.95 188.07 159.56 2.08 161.63 0.00 152.39 152.39 96.04 55.65 151.69 ............. 148.66 .................. 2.69 .............151.34 117.90 24.85 142.74 55.05 79.85 134.90 46.54 43.20 89.74 53.18 26.63 79.81 ............... 67.41 .................. 2.13 ...............69.54 58.33 1.34 59.66 45.92 3.98 49.90 43.77 0.01 43.78 30.86 5.58 36.44 ............... 30.21 .................. 0.10 ...............30.31 19.27 2.57 21.85 8.58 8.96 17.54 17.52 0.00 17.52 11.47 0.62 12.08 ................. 0.00 .................. 0.00 ................ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.89 469.19 478.08 19918.20

12624.92

32543.13

14622.09

36092.96

EXPORT/IMPORT CARGO TONNAGE HANDLED IN JULY 2012 Cargo Handled in July’12

WWW.CARGOTALK.IN

14671.00

6799.87

21470.87

OCTOBER 2012 I CARGOTALK I 35


Cargo Performance Airports in India

TRAFFIC STATISTICS DOMESTIC FREIGHT Freight (in Tonnes) For the Month S. No. Airport

For the period April to June

June 2012

June 2011

% Change

2012-13

(A) 11 International Airports 1 Chennai 2 Kolkata 3 Ahmedabad 4 Goa 5 Trivandrum 6 Guwahati 7 Calicut 8 Jaipur 9 Srinagar 10 Amritsar 11 Portblair Total

6935 6472 3015 236 145 453 10 524 430 5 88 18313

7639 6699 1192 287 144 718 16 544 298 9 120 17666

-9.2 -3.4 152.9 -17.8 0.7 -36.9 -37.5 -3.7 44.3 -44.4 -26.7 3.7

20652 20184 8905 725 402 1456 36 1586 930 16 415 55307

21604 20421 3437 848 411 2244 64 1763 664 27 464 51947

-4.4 -1.2 159.1 -14.5 -2.2 -35.1 -43.8 -10.0 40.1 -40.7 -10.6 6.5

(B) 6 JV International Airports 12 Delhi (Dial) 13 Mumbai (Mial) 14 Bangalore (Bial) 15 Hyderabad (Ghial) 16 Cochin (Cial) 17 Nagpur (Mipl) Total

15654 15983 7077 2719 767 431 42631

12179 16160 7002 2972 694 304 39311

28.5 -1.1 1.1 -8.5 10.5 41.8 8.4

49903 47431 21176 8315 2236 1211 130272

41944 48725 20499 8622 2207 1154 123151

19.0 -2.7 3.3 -3.6 1.3 4.9 5.8

1502 171 562 176 198 0 21 224 19 140 60 0 3073

1513 304 733 310 159 0 19 225 20 110 61 0 3454

-0.7 -43.8 -23.3 -43.2 24.5 10.5 -0.4 -5.0 27.3 -1.6 -11.0

5733 510 1626 538 462 0 85 723 79 427 184 0 10367

5648 908 1820 822 349 0 66 528 83 302 180 0 10706

1.5 -43.8 -10.7 -34.5 32.4 28.8 36.9 -4.8 41.4 2.2 -3.2

272 363 87 483 215 289 182 132 80 63 97 0 17 4 21 1 23

196 401 63 582 218 452 152 142 72 104 101 0 55 1 21 2 29

38.8 -9.5 38.1 -17.0 -1.4 -36.1 19.7 -7.0 11.1 -39.4 -4.0 -69.1 300.0 0.0 -50.0 -20.7

790 1078 297 1528 682 1046 622 405 241 223 378 0 71 6 84 3 90

621 1083 243 1567 628 1338 492 402 208 347 471 0 161 6 84 12 90

27.2 -0.5 22.2 -2.5 8.6 -21.8 26.4 0.7 15.9 -35.7 -19.7 -55.9 0.0 0.0 -75.0 0.0

2329 92 66438

2591 101 63123

-10.1 -8.9 5.3

7544 353 203843

7753 332 193889

-2.7 6.3 5.1

(C) 9 Custom Airports 18 Pune 19 Lucknow 20 Coimbatore 21 Patna 22 Visakhapatnam 23 Trichy 24 Mangalore 25 Chandigarh 26 Varanasi 27 Bagdogra 28 Madurai 29 Gaya Total (D) 20 Domestic Airports 30 Bhubaneswar 31 Indore 32 Jammu 33 Agartala 34 Raipur 35 Imphal 36 Vadodara 37 Ranchi 38 Bhopal 39 Aurangabad 40 Leh 41 Udaipur 42 Rajkot 43 Tirupati 44 Dibrugarh 45 Jodhpur 46 Silchar (D) 17 Domestic Airports (E) Other Airports Grand Total (A+B+C+D+E)

36 I CARGOTALK I OCTOBER 2012

2011-12

% Change

WWW.CARGOTALK.IN


TRAFFIC STATISTICS INTERNATIONAL FREIGHT Freight (in Tonnes) For the Month S. No. Airport

(A) 11 International Airports 1 Chennai 2 Kolkata 3 Ahmedabad 4 Goa 5 Trivandrum 6 Guwahati 7 Calicut 8 Jaipur 9 Srinagar 10 Amritsar 11 Portblair Total (B) 6 JV International Airports 12 Delhi (Dial) Mumbai (Mial) 13 14 Bangalore (Bial) 15 Hyderabad (Ghial) 16 Cochin (Cial) 17 Nagpur (Mipl) Total (C) 11 Custom Airports 18 Pune Lucknow 19 20 Coimbatore 21 Patna 22 Visakhapatnam 23 Trichy 24 Mangalore 25 Chandigarh 26 Varanasi 27 Bagdogra 28 Madurai 29 Gaya Total (D) 17 Domestic Airports (E) Other Airports Grand Total (A+B+C+D+E)

WWW.CARGOTALK.IN

For the period April to June

June 2012

June 2011

% Change

22835 3596 1143 119 4145 0 2427 16 0 120 0 34401

23849 3633 1063 93 3801 0 1989 30 0 874 0 35332

29669 40491 12632 3868 2743 29 89432 0 106 49 0 0 270 0 0 0 0 0 0 425 0 0 124258

2012-13

2011-12

% Change

-4.3 -1.0 7.5 28.0 9.1 22.0 -46.7 -86.3 -2.6

63613 10293 3007 457 13273 0 7585 69 0 332 0 98629

70140 10379 3318 449 11135 0 6060 104 0 1879 0 103464

-9.3 -0.8 -9.4 1.8 19.2 25.2 -33.7 -82.3 -4.7

32187 39291 11470 4138 2963 27 90076

-7.8 3.1 10.1 -6.5 -7.4 7.4 -0.7

92039 119161 36573 11341 8796 99 268009

101877 122263 35352 11924 10193 64 281673

-9.7 -2.5 3.5 -4.9 -13.7 54.7 -4.9

0 69 47 0 0 188 0 0 0 0 0 0 304 0 0 125712

53.6 4.3 43.6 39.8 -1.2

0 246 136 0 0 779 0 0 0 0 0 0 1161 0 0 367799

0 133 115 0 0 574 0 0 0 0 0 0 822 0 0 385959

85.0 18.3 35.7 41.2 -4.7

OCTOBER 2012 I CARGOTALK I 37


Lead Story Trade Opportunities

INDIA-CHINA

SIGN MOU to strengthen trade & commercial relations Recently, Federation of Indian Chambers of Commerce and Industry (FICCI) and its Chinese counterpart China Chamber of Import & Export of Machinery & Electronic Products (CCCME) have signed an MoU to enhance bilateral trade between the two countries. In view of the present shift of global economic power centre towards Asia Pacific region, the agreement will have great significance. CT Bureau exported goods worth US$ 20.86 billion (+52 per cent) to China and imported goods worth US$ 40.88 billion (+38 per cent) from China, resulting in an adverse balance of trade of US$ 20 billion. Over all, India-China bilateral trade rose by $12.2 billion in 2011 compared to 2010, when the total trade was $61.7 billion. The trade deficit from January to December of 2011, however, piled up to $27.07 billion, even though Indian exports to China went up to $23.4 billion registering a growth of almost 12.26 per cent compared to the same period in 2010.

R V Kanoria, president, FICCI greets Deming Chen, commerce minister of China at the signing ceremony of MoU between FICCI and CCCME in presence of Anand Sharma, commerce, industry and textiles minister, India

THE TRADE DEFICIT FROM JANUARY TO DECEMBER OF 2011, HOWEVER, PILED UP TO $27.07 BILLION, EVEN THOUGH INDIAN EXPORTS TO CHINA WENT UP TO $23.4 BILLION REGISTERING A GROWTH OF ALMOST 12.26 PER CENT COMPARED TO THE SAME PERIOD IN 2010

38 I CARGOTALK I OCTOBER 2012

ndia and China have set a bilateral trade target of $100 billion by 2015, compared to last yearÊs record figure of $74 billion. Bilateral economic and trade cooperation has witnessed a robust growth rate.

I

Indian exports to China, mainly composed of primary products and commodity, increased despite the decline of iron ore exports, which dominated IndiaÊs exports for long due to ban on mining in Karnataka and Goa, according to official sources.

HIGHLIGHTS OF INDO-CHINA TRADE 

India-China trade for Jan-Oct, 2011 stood at US$ 60.58 billion, recording an increase of almost 22 per cent

India and China officially resumed trade in 1978. In 1984, the two sides signed the Most  IndiaÊs exports to China for Jan-Oct, 2011 Favoured Nation (MFN) agreement. Indiareached US$ 18.89 billion, a growth of more China bilateral trade which was as low as than 11 per cent when compared to the US$ 2.92 billion in 2000 reached US$ 61.7 same period in 2010 billion in 2010, making China IndiaÊs largest goods trading partner. In  ChinaÊs exports to India for India di andd China 2008, bilateral trade stood at US$ Jan-Oct, 2011 reached US$ 41.68 51.8 billion and China became officially resumed billion, recording an increase of IndiaÊs largest goods trading almost 27 per cent compared to trade in partner, replacing the United States Jan-Oct, 2010 of America. By the end of 2009, as a result of the world economic  The trade deficit for India for downturn, bilateral trade dropped to Jan-Oct, 2011 stood at US$ 22.79 billion US$ 43.27 billion (a decline of 16.54 per cent).  Iron ores, cotton and yarn, fabric, copper, However, in 2010, bilateral trade reached precious stones, organic chemicals, plastic, US$ 61.74 billion, a growth of 43 per cent salt, sulfur, earth & stone, machinery, compared to the same period in 2009. India reactors, boilers continued to dominate the

1978

WWW.CARGOTALK.IN


Lead Story Trade Opportunities

Bilateral trade figures for the period Jan-Oct, 2011 2009 (Jan-Oct)

2010 (Jan-Oct)

2011 (Jan-Oct)

India Exports to China

10.73

16.97

18.89

Growth %

-42.38

58.12

11.34

China Exports to India

23.57

32.87

41.68

Growth %

-12.51

39.45

26.82

Total India-China Trade

34.30

49.84

60.58

Growth %

-24.72

45.29

21.56

Trade Balance for India

-12.84

-15.90

-22.79

Source: FICCI

and MNC clientele in China. Indian enterprises operating in China either as representative offices, Wholly-owned Foreign Enterprises or Joint Ventures with Chinese companies are into manufacturing (pharmaceuticals, refractories, laminated tubes, auto-components, wind energy, etc.), IT and IT-enabled services (including IT education, software solutions, and specific software products), trading, banking and allied activities.

INDIAN EXPORT BASKET 

Among the products exported from India to China, iron ores, slag and ash (HS 26) constituted a dominant share of 49 per cent though the export declined by 10 per cent y-o-y. The share of cotton, yarn and fabrics in the total exports from India to China stood at 10 per cent for the period Jan-Oct, 2011



Spectacular rise was seen in the export of copper and articles thereof (HS 74), plastic (HS 39), food waste (HS 23) and miscellaneous chemical products (HS 38) recording increase of 164 per cent, 71 per cent, 64 per cent and 63 per cent y-o-y, respectively.

INDIA-CHINA FINANCIAL DIALOGUEE

While the Indian trading community is primarily confined to major port cities such as Guangzhou and Shenzhen, they are also present in large numbers in places where the Chinese have set up warehouses and wholesale markets such as Yiwu. Most of the Indian companies have a presence in Shanghai, which is ChinaÊs financial centre; while a few Indian companies have set up offices in the capital city of Beijing. Many Indian banks have also established their presence in mainland China in the last few years. Four Indian banks, namely, State Bank of India (Shanghai), Canara Bank (Shanghai), Bank of Baroda (Guangzhou) and Bank of India (Shenzhen) have branch offices in China. At present, State Bank of India is the only Indian bank to have authorisation to conduct local currency (RMB) business at its branch in Shanghai.

In accordance with the MoU on the Various Government institutions Launch of the Financial Dialogue and agencies from the two countries between India and China, signed during Chinese Prime Minister Indian population have also been interacting with each other for furthering cooperation Wen JiabaoÊs visit to India in April in China is in the areas such as taxation, 2005, the two sides have since human resource development successfully held five Financial and employment, health, urban Dialogues in April 2006, December development and tourism. There is a 2007, January 2009, September 2010 close exchange and interaction between and November 2011, respectively. The the economic think-tanks and scholars as well. Fifth India-China Financial Dialogue was held in New Delhi. During the Dialogue, both sides exchanged views on the global macro INDIAN COMMUNITY IN CHINA economic situation and policy responses, with The presence of Indian community in China specific reference to current risks to the global is increasing. Present estimates put the economy and the role of India and China in communityÊs strength in Mainland China the post-crisis recovery phase. Discussions also at around 48,000, with 7,700 in and around took place on G20 issues including reforms Shanghai and 25,000 in Southern China in the International Monetary System and (Guangzhou, Shenzhen and surrounding the Framework for Strong, Sustainable and areas), and the remaining in Beijing and Balanced Growth. The Sixth India-China other areas. Financial Dialogue is scheduled to be held in China in the last quarter of 2012. A major component of the community in Mainland China are students. About 8,000 Indian students are enrolled in various Chinese INDIAN COMPANIES IN CHINA universities, particularly in Chinese medical With the growth in bilateral trade between universities. Easy admission system, affordable India and China in the last few years, many fees and good standard of facilities are main Indian companies have started setting up attractions for the Indian students. Chinese operations to service both their Indian

48,000

WHILE THE INDIAN TRADING COMMUNITY IS PRIMARILY CONFINED TO MAJOR PORT CITIES SUCH AS GUANGZHOU AND SHENZHEN, THEY ARE ALSO PRESENT IN LARGE NUMBERS IN PLACES WHERE THE CHINESE HAVE SET UP WAREHOUSES AND WHOLESALE MARKETS SUCH AS YIWU

40 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


Logistics Services Third Anniversary

DELEX CARGO INDIA

COMPLETES THREE YEARS, focussing on domestic delivery market A specialist in total integrated supply chain solution, Mumbai-based Delex Cargo India aims to become a ‘preferred delivery partner’ for their suppliers. CT Bureau elex Cargo India, an NDR Group Company, is promoted by a group of experienced professionals from the Supply Chain industry. Delex, in its 3 rd year of inception, developed an extensive distribution and delivery network across major towns and cities of India that offer a wide range of Supply Chain services to the Indian industry.

D

Srinivas Sattiraju

Athmaraman Venkatesan

Anil Kumar Seshagiri 42 I CARGOTALK I OCTOBER 2012

According to Srinivas Sattiraju, CEO, Delex Cargo India; innovation and customer specific solution is the key to competing in logistics business in India and worldwide. He says, „Delex is built on this one key principle that helped us to be a logistics leader in the domestic market. We have a great deal of experience in managing the logistics of industries across spectrum, ranging from consumer electronics, telecom, IT, FMCG, to industrial equipment, high value merchandise, chemicals and pharmaceuticals. With its presence across more than 24 major towns and cities of India through a network of more than 70 PUDOs (Pick-Up and Delivery Operation centres), Delex is slated for expansion with more than 200 delivery locations in the pipeline for the next 2 years.‰

in providing warehousing services to a select group of customers. Explaining the companyÊs 3PL business, Satturaju said, „Currently Delex has major ongoing business engagements with two leading companies from FMCG and auto sector with large warehouse operations in South India and West Bengal; we are in process of completing the set up of our first Pharma warehouse in Bengaluru.‰

DELEX ON LOGISTICS INDUSTRY CHALLENGES FOR 2013 Talking about the challenges in the coming year, Athmaraman Venkatesan, Head Operations Air Cargo, Delex Cargo India said, „2013 is going to be quite challenging as there is a pressure (on logistics companies) on reducing cost and improving efficiencies, due to the prevailing global economic scenario. At the same time, with FDI in Retail, Aviation and other related sectors, 2013 could open doors for greater opportunity (for logistics sector) too. Whether FDI or not, I feel 2013 will see a major push towards improving overall operational quality at efficient costs, rather than concentrating only on the cost of service, which has historically been the case till now.‰

Elaborating on the focus for this year, Satturaju said, „This year, the focus is to drive DELEX ON COLD CHAIN SUPPLY growth of our domestic air cargo business. TRANSPORTATION To achieve this, as a strategic step forward, „This service is now recognised as a sunrise our group has signed up Cargo General Sales ales ssector in India. Delex entered into ÂCold Chain Agency (CGSA) deal with leading TransportationÊ (CCT) business by domestic airlines. Next focus is our deploying a dedicated fleet of over 30 newest service offering ÂSurface trucks fitted with the latest, state-ofWe will soon Parcel DeliveryÊ (SPD) where the-art, PUF insulated refrigerated we are beefing up our HUB and complete our first containers. Fitted with data PUDOs network connectivity and GPS systems, Delex Pharma warehouse isloggers through dedicated ÂSurface Lineable to offer real-time tracking in Bengaluru haulsÊ to enhance our service of temperature maintained in the efficiency. Our key strategy around container, besides providing the SPD is to offer a strong B2B Cargo usual information on vehicle location, Delivery Service aimed at large, pan-India driving speed, etc. DelexÊs approach towards customers, requiring solution based integrated CCT business shall be client-based requirement logistics delivery operations.‰ assessment, solution design and dedicated deployment,‰ informed Anil Kumar Seshagiri, Though the 3PL market in India is on a Head  Strategy and Business Development, positive track, the company has restricted itself Delex Cargo India. WWW.CARGOTALK.IN


Logistics Services Second Anniversary

UNIVERSAL FREIGHT MANAGEMENT (UFM)

TARGETS `100 CRORE turnover by 2014

On completion of two successful years of its operation, Universal Freight Management (UFM) is now gearing up to touch 300 clients by 2012 and `100 crore turnover target by 2014. In an exclusive interview with Cargotalk, Raajeev Bhatnagar, chairman and Shesh Kulkarni, managing director of UFM, shared views on the present market scenario and UFM’s strategy in the coming years. Ratan Kr Paul „We have our own robust IT system and it would be upgraded further to address global requirements of all services under one system,‰ he added. He declined any idea to enter into any stand alone system for any single product, viz. air freight forwarding, customs clearance, etc. „The need of the hour is to offer multimodal services by logistics companies, and hence, we should have a dynamic IT system that fulfills all modern requirements,‰ he emphasised.

t was September 6, 2010, when Indian Logistics Industry witnessed a new kid on the block that projected itself as a future ÂIndian Multinational CompanyÊ. And, within a very short span of time, it established itself as one of the leading logistics companies in India. Presently, UFM has 267 leading corporate houses as its clients and is set to add 30 more companies by the end of 2012. In 2011-12, the companyÊs turnover was `25 crore followed by `40 crore in 2012-13. Initially the company started its operation with freight forwarding as its core competence. Later, it included warehousing and distribution services to become a complete 3PL service provider. The company is bullish that the turnover will reach `100 crore mark by 2014-15.

I Raajeev Bhatnagar

Shesh Kulkarni

PHARMACEUTICALS, TELECOM, PROJECT CARGO, AUTOMOBILE ARE SOME OF THE VERTICALS WHERE UMF HAS ESTABLISHED ITS STRONG PAN INDIA PRESENCE. ITS MAJOR SERVICES INCLUDE FORWARDING, CUSTOMS CLEARING, WAREHOUSING AND DISTRIBUTION SERVICES 44 I CARGOTALK I OCTOBER 2012

„Though the present market scenario is very flat, we are confident it would revive by the second quarter of 2013. For us the present economic slowdown is not visible. We are a start-up company and growing. Consciously ly y we are adding new clients from emerging verticals to assure our growth,‰ said Bhatnagar. UFMÊs clients are from both export and import, as well as air and ocean cargo segments. Pharmaceuticals, Telecom, Project mark cargo, Automobile are some of the verticals where UMF has established its strong pan India presence. Its major services include forwarding, customs clearing, warehousing and distribution services. „Our objective is to offer light asset based complete logistics services to our clients,‰ underlined Bhatnagar.

Presently, UFM has five offices in India that include Bengaluru (Corporate Office), Delhi, Mumbai, Chennai and Hyderabad. In addition, the company has a representative office in Kolkata. All its offices are connected with the centralised IT system. „Apart from IT we are serious about human resource development. Currently, we have around 100 people in those five offices, who are completely customeroriented. Soon we are adding more people at all levels,‰ Bhatnagar informed. Supplementing Bhatnagar, Kulkarni added that the company had gone through serious work to script its two yearsÊ success story. „Based on the emphasis 2014-15 and strength radiating off its people, UFM is here to redefine the logistics market and to be a key player based on a key factor - personalised experiences that constantly create value,‰ he highlighted.

`100 crore

Bhatnagar refrained to make any comment on the investment plans for any specific services. However, it is expected that UFM would invest substantially in IT to make a difference with other 3PL service providers.

by

This ISO 9001:2008 certified company is now exploring new markets to add new clients in its basket. However, shared Kulkarni, the company will remain focussed on US and European markets. „We are highly optimistic that these two major markets would revive soon. They still hold the key to script a success story of Indian logistics companies,‰ he stressed. WWW.CARGOTALK.IN


Family Album BCHAA Annual Dinner

AN EVENING

WITH DIFFERENCE The Bombay Custom House Agents’ Association hosted its Annual Dinner on September 12, 2012 in Mumbai amidst the presence of the ‘who’s-who’ of the cargo and logistics industry. Nailesh Gandhi, president, BCHAA, meticulously organised the spectacular function, which was full of fun and entertainment.

46 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


WWW.CARGOTALK.IN

201 I CARGOTALK I 47 OCTOBER 2012


Family Album Club Function

ACCD HOSTS

LUNCHEON MEET

to discuss ‘Hypnosis: An Alternate Therapy’

The new managing committee of the Air Cargo Club of Delhi (ACCD) recently hosted a luncheon meet for its members to get acquainted with the Alternate Therapy called ‘Hypnosis’. Nirmala Jain, clinical hypnotherapist, was present on this occasion as Guest Speaker to discuss about the subject. Huge presence at this event demonstrated the eagerness of the club members for modern researches on alternate medicines.

48 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


Expo freight F/P


Family Album Launch Ceremony

INDIAONTIME

EXPRESS meets trade partners at the launch party Indiaontime, the recently launched express logistics company organised a glittering ‘Launch Party’ in Bengaluru to discuss its mission & vision and products & survives. Hosted by ES Sudharsan, Chief Executive Officer of the company, the event was attended by several other company officials and leading express cargo trade practitioners.

50 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN


Family Album Get-Together

CELEBI IN INDIA hosts get-together for airline partners Celebi Delhi Cargo Terminal Management India recently hosted an ‘Informal Get-Together’ for its airline clients in New Delhi. The event was well attended by representatives from all airlines as well as officials from Celebi and DIAL. The objective of the event was to exchange views among the business partners.

52 I CARGOTALK I OCTOBER 2012

WWW.CARGOTALK.IN WWW


Industry Events Trade Associations

FICCI LAUNCHES

LOGISTICS FORUM at Infrastructure Summit in New Delhi In view of the Indian logistics industry poised for growth and challenges which are being faced by the industry, the Federation of Indian Chambers of Commerce and Industry (FICCI) has announced the launch of FICCI Logistics Forum. The objective the Forum is to provide a platform to the logistics industry in India to voice their opinion and concerns. he FICCI Logistics Forum was formally launched by Dr CP Joshi, Union Minister of Road Transport & Highways at the ÂIndia Infrastructure Summit 2012Ê, organised by FICCI on August 31, in New Delhi. Chaired by Raaja Kanwar, director, Apollo LogiSolutions, the Forum is open to logistics companies, professionals, related industry organisations, academic institutions and other logistics stakeholders.

T

Dr CP Joshi (at the centre) along with other dignitaries releasing the Knowledge Paper at the ‘India Infrastructure Summit 2012’

According to Kanwar, the vision behind the launch of the forum is to provide a platform to the Logistics Industry in India to voice their opinion and concerns. „Through the FICCI Logistics Forum, we as the industry are aiming at sharing innovative ideas, promoting adoption

of best practices, advocating the interests of the logistics industry and reaching out to all the associated stakeholders including policy makers,‰ he said. In his opinion, the launch of the Forum is a unique initiative which will help to bring all the leading players of the industry together and put a consolidated effort towards resolving several industry issues. The Forum is open to logistics companies, professionals, related industry organisations, academic institutions and all others having interest in the logistics sector. „We are looking forward towards a healthy participation from all stakeholders in order for the FICCI Logistics Forum to play a catalytic role in the overall development of the sector,‰ added Kanwar. Speaking to Cargotalk, h e also maintained that the nitty-gritty of the Forum will be decided within very short time after discussing with the industry stakeholders (both from users and service providers of logistics services).

THE AIR CARGO CLUB OF BOMBAY

holds AGM to elect new managing committee The new managing committee  Richard Theknath – president  Clifton Fernandes – vice president  HS Arora – hon. treasurer  Gopal Devadiga – hon. secretary The managing committee members include Conrad Aranha, S Venkat, Anthony, Raju Mahendarkar, Bradley D Lima and HV Raja . 54 I CARGOTALK I OCTOBER 2012

ecently, the Air Cargo Club of Bombay (ACCB) held its Annual General Meeting (AGM) at Mirador Hotel in Mumbai. The meeting was started after observing a couple

R

of minutes of silence for Francis Theknath of Jet Freight, who passed away on the same day the AGM commenced. The AGM was followed by cocktail & dinner. WWW.CARGOTALK.IN


Shipping & Ports New Launch

DHL INTRODUCES

DIRECT LCL SERVICES from India to Sweden and UK to India DHL Global Forwarding has recently launched two new LCL services connecting India with Sweden for exports and with UK for imports. According to DHL sources, the new direct LCL services would reduce transit time of 25 days and total carbon emissions up to 21 per cent weden and UK are strategic countries catering to a large segment of trade with India. India and Sweden share a long tradition of trade cooperation which has significantly grown in recent years and shows potential for further development.

S

Thomas Tieber

Commenting on the new launch, Thomas Tieber, CEO, South Asia, DHL Global Forwarding (South Asia), said, „The new services are strategically planned to meet the growth of foreign trade amidst the rising global demand for such services. UK and India have been strategic trade partners for centuries with both countries showing a keen interest to increase the trade outlay. This gives DHL an opportunity to cater to a vast segment of engineering customers in India regularly importing from UK as well as to tap into the SME segment.‰ He also maintained that with the introduction of these new services, DHL

has further strengthened its network and ocean freight service offerings to support the needs of its customers. „All LCL services are accompanied by DHLÊs IT solutions such as DHL Track & Trace and other tools to allow full visibility throughout the whole supply chain,‰ Tieber added. DHL also facilitates insurance services to customers as a value-added service. DHLÊs Shippers Interest Insurance (SII) covers losses or damages of all cargo transported by DHL, as well as transportation costs. DHL currently operates as the worldÊs largest LCL network with close to 20,00,000 cubic metres of LCL freight handled annually via 45,000 point-pairs. „Going beyond port to port, DHL LCL service also offers a complete end-to-end supply chain management that includes pick-up at origin, consolidation and deconsolidation, delivery at destination and customs clearance,‰ Tieber underlined.

ESSAR GROUP goes for costal clean-up drive ecently, Essar Ports and Essar Shipping took part in coastal clean-up drive at Mumbai beaches, which was initiated by the Indian Coast Guard. The programme was a part of the initiative pertaining to coastal environmental awareness on the occasion of International Coastal Clean-up Day.

R (left to right): MV Badkar, DIG, Coast Guard; Nirmal Kumar Deshmukh, Mumbai suburban district collector; Rajiv Agarwal, MD, Essar Ports and Capt Anoop Kumar Sharma, CEO & director, Essar Shipping

56 I CARGOTALK I OCTOBER 2012

A large number of volunteers including students of various colleges, schools and NGOs participated in the voluntary work to clear the debris at one of the cityÊs largest beachfronts in Juhu and Girgaum

Chowpatty. Rajiv Agarwal, managing director, Essar Ports and other senior Indian Coast Guard officers were also present on the occasion. Commenting on the event Agarwal said, „The aim of the event is to spread awareness about clean and green environment for the years to come.‰ „Indian Coast Guard has been actively associated with the conduct of the event for the past many years in all coastal states of India. Essar Group is associated with Coast Guard for nearly a decade in this initiative,‰ informed Agarwal.

WWW.CARGOTALK.IN


Xxxxx Performance 6WXG\ 6XUYH\ Xxxxxxxxxxxxxxxxxx 0DUNHW7UHQGV

(&2120,&287/22. 75$)),&*52:7+

CARGOTALK I,2&72%(5 OCTOBER 2012 58 I,&$5*27$/.

WWW.CARGOTALK.IN :::&$5*27$/.,1


Cargotalk  

Cargotalk Magazine

Read more
Read more
Similar to
Popular now
Just for you