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Cargotalk

Vol XIV No.3 Pages 56 Rupees 50 cargotalk.in By DDP Publications

South Asia’s Leading Cargo Monthly

february 2014

No.1 in Circulation & Readership

Postal Reg. No.: DL (ND)-11/6002/2013-14-15. WPP No.: U (C)-272/2013-15, for posting on 25th-26th of advance month at New Delhi P.S.O.

RNI No.: DELENG/2003/10642 Date of Publication: 22/1/2014

Mumbai

Canada Keen in

Miniratna to

Concor to operate an integrated terminal

to support logistics and cold chain industry

All set to offer end to end solutions in 2014

Airport

India

Technology for

Logistics Solution providers bring innovative products

CRWC


Cargotalk

editorial Skill and Technology: The key factors

T

he cargo and logistics sector in India paradoxically is plagued by a huge shortage of skilled manpower and low use of technology. This is despite the fact that India has potential of being a manufacturing as well a logistics hub. And, it has ample manpower and is worldrenowned for its IT solutions. Where is the stalemate, then? It is the absolute apathy of the policy-makers. When the segment is treated as nobody’s child, the problem of under-investment in the same is obvious. Hence, developing skilled manpower and utilisation of proper technologies are apparently luxuries for majority of the cargo and logistics practitioners, who are mainly small and middle sized players. Above all, a firm policy from the government pertaining to fast cargo clearing mechanism and standardisation of processes by a centralised system would be the most essential task to realise its potential. The industry believes that, first of all, the government of India needs to accord an industry status to the logistics segment. It proposes that a committee should be set up to study the standardisation of process across the logistics service providers. A standardisation of education and training for cargo and logistics industry is another key area requiring the attention of policy makers. The need for adequate training is felt through the industry. There should be a governing body that focusses on training and skills-building aspect. Another vital initiative is the need to encourage adoption of Information Technology by the SME SanJeet Editor

4 i cargotalk i february 2014

Editor SanJeet

Sr. Assistant Editor Ratan Kumar Paul

Cargotalk

Sr. Sub Editor HRitvick sen

Vol XV No.3 Pages 56 Rupees 50 cargotalk.in By DDP Publications

Asst. Vice President Gunjan Sabikhi

CARGO MONTHLY SOUTH ASIA’S LEADING No.1 in Circulation & Readership

U (C)-272/2013-15, 02/2013-14-15. WPP No.: Delhi P.S.O. Postal Reg. No.: DL (ND)-11/60 of advance month at New for posting on 25th-26th

FEBRUARY 2014

RNI No.: DELENG/2003/10642 Date of Publication: 22/1/2014

CANADA KEEN IN

MUMBAI

INDIA

AIRPORT

Concor to operate an integrated terminal

to support logistics and cold chain industry

MINIRATNA TO

CRWC

All set to offer innovative solutions in 2014

Deputy General Manager Harshal Ashar Regional Head: North & West shiv kumar Assistant Manager: West Roland Dias Sr. Marketing Co-ordinator Gaganpreet Kaur Design ruchi sinha

Technology

Logistics for

ive products

Solution providers bring innovat

segment. For example- the government can introduce soft loans for SMEs for encouraging IT adoption, as this will aid in easing the movement of cargo in the Indian Supply Chain. This is also the time to build a proper system and increase use of information technology for managing businesses. Industry veterans believe that, while Indian manufacturing industries have done wonders in manufacturing areas, they can do better in last-mile delivery. The focus should be more on skilled fieldworkers, like drivers, imbibing simple and need-based technologies. It will help improve logistics in the country and save cost to the national GDP, which is about 14 per cent now. Significantly, a number of cargo and logistics technology solution providers are providing innovative and cost effective products/services, catering to this developing market, where skilled and unskilled forces, and manual and technology-based practices have to go hand-in-hand for a long time, till a standard logistics policy is in place.

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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: Z1-02, P.O. Box 9348, Saif Zone, Sharjah, UAE Tel.: +971 6 5528954, Fax: +971 6 5528956 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.

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Contents February 2014

SECTORS

Industry Associations

8 I ACAAI Managing

Committee appeals members to be cordial and united

National News

10 I SpiceJet honours top

continues building up in 2014

22 I Concor to operate an

integrated terminal in Mumbai International Airport

Cargo Performance

34 I Airlines wise exim cargo

cargo agents at a meet in Bangkok

performance for the month of December 2014 from Delhi International Airport

12 I Mumbai Airport receives

35 I Airport wise Domestic

GATI-KWE launches ‘Green & Clean Billing’ facilities for its customers

36 I Airport wise International

Lufthansa Cargo’s Boeing 777F in Asia for the first time

Indelox Services obtains AEO certificate, to ease security hassles for its customers

Cargo Performance from Indian Airports in October 2013

Cargo Performance from Indian Airports in October 2013

Kale Logistics and Freight Look join hands to promote UPLIFT

Products & Services 40 I Descartes takes over Impatex to strengthen technology services for customers

International News 14 I CargoWise reaches Latin America tying up with DPS Logistics

Logistics Services 42 I Miniratna to CRWC: All set to offer innovative solutions in 2014

Movements 16 I Steve Gunning appointed as CEO, IAG Cargo

Family Album 48 I Turkish Airlines celebrates 10 years of operation in India

Puneet Kumar takes over as Secretary General, AEPC T Premnath is now ED Admin & PR, AAI International Airports 18 I Air cargo market in India: Gradual improvement in sight

20 I Airport capacity: DIAL 6 i cargotalk i february 2014

49 I ACCD members meet for Christmas Carnival in New Delhi 50 I ACCB presents a festive evening to rejoice Christmas COLUMNS Lead Story 30 I Air Freight Volumes

n Cover story

22I

Technology for Logistics

Solution providers innovative products The cargo and logistics industry in India is largely fragmented and under-invested. Utilisation of technology is, hence, a big challenge before the solution providers. Cargotalk spoke to leading technology solution providers to know the critical areas and offerings from them to make the industry cost-effective and world-class.

Increases: Airlines upbeat on prospect in 2014 Academic Institute 38 I IITTM covers cargo & logistics tying up with industry people for training Study Report 44 I ICRIER Report unveils untapped opportunities in cold chain business

Business Opportunities 46 I Canada Keen in India to support logistics and cold chain Guest Column 52 I Setting the house in order to sail through turbulence User’s Perspective 56 I Combi flights during night required to tap the e-commerce market www.cargotalk.in


Industry Association MC Meeting

ACAAI Managing Committee

appeals members to be cordial and united According to the Managing Committee of the Air Cargo Agents’ Association of India (ACAAI), in the New Year 2014, the association has some important issues on which it has to deliberate seriously and emphatically. The issues need priority and immediate attention of the concerned authorities. SL Sharma, President, ACAAI said, these are of utmost importance for the benefit of ACAAI members and the industry as a whole.

A

CAAI had its Managing Committee Meeting on December 20 in Mumbai, where the office bearers and MC members discussed some of the above issues at length. It also included other issues relating to FIATA/ IATA/airlines. The MC meeting discussed on the issue of Alternate System of Service Tax. For this, ACAAI has decided to approach Parathasarthy Shome, Special Advisor to the Finance Minister.

Plans and Programmes highlights for 2014

risk issuance of House Airway Bills etc. and to advance knowledge on the procedure of filing claims and transportation activities to avoid any unforeseen situation that the members might have to face at a later stage,” said Sharma. At this seminar, stress will be laid to understand and implement the Authorised Economic Operator Scheme, the Self Assessment Scheme and other Schemes introduced by the Government from time to time. “We plan to seek the assistance and cooperation of aspiring and experienced air cargo agents & customs brokers and derive the Keshav Tanna benefit of their experience,” Past President and Member, Sharma maintained. Board of Advisors, ACAAI

In 2014, ACAAI is planning to conduct an Educational Seminar for the benefit of the members and their staff. “In this seminar, we will discuss various issues on technical, financial, impart training in filing of documents and other guidelines in processing customs, custodians and airlines cases which would help the members in their operational working. We will also concentrate on the methodology of

At this seminar, stress will be laid to understand and implement the AEO Scheme, the Self Assessment Scheme and other Schemes introduced by the Government from time to time.” SL Sharma President, ACAAI

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At the MC meeting ACAAI has planned to request all its members to come forward openly with suggestions/ ideas that could be useful for bringing improvement in the functioning of the association as well the issues that need to be taken up with the Ministry of Civil Aviation, Ministry of Commerce & Industry, Ministry of Finance, Central Board of Excise & Customs, Department of Revenue, Commissioners of Customs (Imports & Exports), DIAL, CELEBI. ACAAI MC meeting has also decided to request suggestions for regular meetings with the Commissioner of Import & Export, CAFAC, PTFC by raising important issues which need immediate attention and solutions. “This is very essential since no issue can be raised in the high level meetings of the Ministries till these are raised in the local meetings. This helps us in strengthening our view point in the meetings with the ministries,” Sharma explained. www.cargotalk.in


Industry Association MC Meeting

Keshav Tanna felicitated behalf of the Managing n December 20 ACAAI O Western Region Meeting Committee, assured all also had held its meeting those present, that the team where all the Members of the Managing Committee and Regional Chairmen were present. Keshav Tanna, Past President and Member, Board of Advisors, was felicitated by SL Sharma, President, ACAAI on his being nominated as Vice President of FIATA and Vice Chairman of Air Freight Institute, which are prestigious global posts. On this occasion, Sharma mentioned that it is not only an achievement for ACAAI, but it is also a matter of great pride and honour for our country. In his address, Sharma, on

10 i cargotalk i february 2014

would make all out sincere and strenuous efforts for the betterment of our fraternity. He also mentioned that the Managing Committee is whole heartedly dedicated to the success of ACAAI and will look after the interests of the Air Cargo industry. “In spite of the fact that there are many challenges before us, we are quite confident that with the cooperation of all the players and stalwarts of the Industry, we shall be able to achieve success and go forward,” he stressed. Sharma appealed to all the members to remain united and to show their solidarity towards the association.

According to Sharma, ACAAI is also emphasising on the cordial and personal relationship. “Hence, it is very important that the Members of our Association and the Office Bearers, Members of Advisory Board and the Regional Chairmen must have cordial relations with the Senior Officers of the Customs, Custodians, Airlines and other allied agencies, which would be key resolve issues by mutual interactions from time to time. In addition, ACAAI has planned to according to ACAAI, request all its members unity and clarity plays to come forward with the most important suggestions and ideas role in keeping coordination and that can improve in unbiased relationship the functioning of the among themselves association as this plays a very important role in arriving at decisions with mutual understanding and fellow feelings. This has been found among all the members. “Every one is willing to help each other and this is the source of our success. We have a long way to go but we are confident that we will win the race. We would like to derive the benefit of the expertise, knowledge, experience and professionalism in the trade from our own members and communicate the same to our members,” added Sharma. www.cargotalk.in


National News News in Brief

„ Mumbai Airport receives Lufthansa Cargo’s

Boeing 777F in Asia for the first time

L

ufthansa Cargo’s Boeing 777F, the freight airline’s new flagship landed in Asia for the first time, at Mumbai International Airport on January 9 at 03:08 am (local time) following a seven-hour flight with about 90 tonne of cargo. The Boeing 777F is currently being used in scheduled operations mainly between Europe and North America. However, in between this, the aircraft are also being regularly flown to other destinations as the new pilots for this type have to complete many hours of flight training before being licensed to fly them in Lufthansa Cargo scheduled operations. Two of the total of five ordered Boeing 777 freighters are already in use at Lufthansa Cargo. With a full payload of 103 tonne, it is able to remain in the air for ten and half hours. This means that it can fly non-stop for more than 9,000 kilometres, enabling Lufthansa Cargo to fly direct and fully loaded from Frankfurt to Shanghai, for example.

„ GATI-KWE launches ‘Green & Clean Billing’

facilities for its customers

G

ati Kintetsu Express (GATI-KWE), the Express Distribution and Supply Chain Solutions provider, has launched a new project - ‘Green & Clean Billing’. Under this project, the company has taken up an initiative to offer its customers e-bills linked to e-POD. The aim of this initiative is to eliminate the need to physically print, deliver and maintain a hard copy of the bills and thereby help sustain the environment. Also, with the implementation of the new platform, customers can view their outstanding bills, payment history and can print the statements, invoices and POD copies at any time they require. The new e-billing is available with statements linked to POD copies by bill number. Bills would be emailed to multiple people at the customers’ end.

„ Indelox Services obtains AEO certificate, to ease

security hassles for its customers

I

ndelox Services that provides Supply Chain Services for manufacturing, trading and service organisation has been accorded with the Status of AEO (Authorised Economic Operator) by the Indian Customs Department, Ministry of Finance. According to the government policy, this certifies the operation excellence with secure environment in which the international cargo is handled. The certification also ensures the compliance of the AEO as per the framework of World Customs Organisation Safe Framework of standards. AEO status is aimed to ensure a low risk for Customs ‘Risk Management System’ (RMS) and used to accelerate the frequency of customs physical and documentary checks resulting in fast customs clearance of consignments of/forAEO status holders.

„ Kale Logistics and Freight Look join hands

to promote UPLIFT

F Amar More SVP, Kale Logistics Solutions

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reight Look- an IT provider to the Forwarding Industry in India has partnered Kale Logistics to aid in adoption of Kale’s Cargo Community Platform Initiative called ‘UPLIFT’. According to the kale Logistics sources, the partnership with Freight Look will help Kale Logistics to better serve and reach cargo community stakeholders across the northern Indian Sub-continent. UPLIFT helps eliminate the manual operations, paperwork, and redundant data entry and bring in the shipment visibility across the value chain. UPLIFT acts both as a business to business (B2B) portal and a business to consumer (B2C) portal for trade community members to conduct electronic transactions. According to Amar More, SVP, Kale Logistics Solutions, “Like Kale, Freight Look is an established and industry-focussed IT provider to the logistics industry. They understand the domain and the need for Indian cargo players to have a community platform to transact and exchange information seamlessly.” www.cargotalk.in


International News News in Brief

TIACA calls for common global standards for air cargo security screening ignificant further testing must be S conducted into the provision of advance data for air cargo and mail parcels security screening. Furthermore, common global standards and procedures must be developed to avoid

Doug Brittin Secretary General of TIACA

potentially serious disruption to the flow of world trade, according to The International Air Cargo Association (TIACA). In his address to the World Customs Organization’s (WCO) Annual Technical Experts Group on Air Cargo Security Conference in Brussels, TIACA Secretary General Doug Brittin cautioned customs regulators against taking unilateral action to require submission of certain customs information for all air cargo shipments, in advance of aircraft departure. He told delegates ‘we recommend that all regulatory parties coordinate this process through the WCO and that they consult more closely with industry before they move forward on establishing regulations’. A similar process should be followed to establish common procedures for member states’ security regulators to ensure common cargo screening methods are in place after the analysis process is completed, he said.

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CargoWise reaches Latin America tying up with DPS Logistics ogistics providers throughout Latin Lof CargoWise’s America can now take advantage leading enterprise-class supply chain software as a result of a new partnership with Panama-based logistics consultants, DPS Logistics. In joining CargoWise as a WiseBusiness Partner, DPS Logistics will be able to offer single-platform system to businesses across the region. According to the tie up DPS Logistics will assist CargoWise’s expansion into Latin America by providing full sales, consultation, implementation and support services to local customers. Latin American supply chain providers will now benefit from a global software solution delivered with the local expertise of a Spanish-speaking specialist. “Our passion is to serve and to assist the Latin American logistics community in finding better solutions that help strengthen their position in the market,” says DPS Logistics President, David Pang.

Vlad Bilanovsky Vice President-Partner Management, CargoWise

Added Vlad Bilanovsky, Vice PresidentPartner Management, CargoWise, “This partnership brings enormous benefits to Latin American logistics providers as they now have access to a global enterprise-class supply chain software solution delivered on a local level.” This is a unique opportunity for DPS Logistics to leverage their market position by offering a world-leading product to Latin American customers.”

Obituary:

John Barnett passes away t is with the deepest regret and sadness Iindustry that we report the passing of veteran major John Barnett on January 8, 2014, following a long-term illness. John was well-known as a co-founder of Wexco Airfreight – one of the earliest UK GSSA companies - in 1979. It is a testament to his extraordinary hard work and professionalism that the company survived and prospered through many of the most difficult years in the industry’s history. At his retirement in 2010, the company became part of the Kales GSA network, but proudly retains its original name to this day. John’s dedication, professionalism, patience and fastidious attention to every

John Barnett Wexco Airfreight

small detail would remain as a source of inspiration for many at this challenging time. “His humour, humanity, charm and constant encouragement were an inspiration to all who had the honour to work with him. His high service standards and ethics earned him a reputation among his many client airlines. The industry has lost a gentleman and a true professional,” said Peter Kales, Chairman, Kales Group.

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Movements Appointments

T Premnath is now ED Admin & PR, AAI T Premnath has taken over the additional charges of ED-PR in addition to ED-Administration, Airports Authority of India. In his additional capacity, Premnath is managing entire PR outfit of AAI covering 127 airports spread all over India. He is managing media relations both in domestic and international arena and advising the Chairman, AAI regarding media representatives and Government relations.

Steve Gunning appointed as CEO, IAG Cargo Previously, he also served the ONGC, Government of India in different managerial capacity and as Deputy Director, Corporate Communication. He received several awards like ‘Best Corporate Manager (PR) of the Year (1995)’, ‘Rajiv Gandhi Award for Excellent Manager (1996)’ and ‘Human Rights Awareness Award for (2004)’. Premnath is an MBA (Human Resource Management), PG Diploma in Industrial Relations & Personnel Management, M.Phil in Journalism and Communication.

International Airlines Group (IAG) has appointed Steve Gunning to its Management Committee as CEO, IAG Cargo. He brings with him a wealth of senior management and leadership experience in both the finance and airline industries. Gunning has spent the past two years integrating the British Airways and Iberia Cargo divisions into a single business. Prior to this, he was Managing Director for BA World Cargo. Gunning began his career with PricewaterhouseCoopers, where he qualified as a Chartered Accountant and worked in the UK and the USA.

Puneet Kumar takes over as Secretary General, AEPC Puneet Kumar has joined as Secretary General, Apparel Export Promotion Council (AEPC). Kumar is an IAS officer of 1993 batch from Kerala cadre. He is a graduate in Mechanical Engineering and a post-graduate in Thermal Engineering from IIT, Delhi. After joining Indian Administrative Service, he has worked in number of capacities in the Revenue Department, Co-operation Department (as Managing Director of KS CARD Branch and Kerala Marketfed), Technical Education Department, Excise Department and Department of Agriculture, Government of Kerala. 16 i cargotalk i february 2014

www.cargotalk.in


International Airport Market Trends

Air cargo market in India Gradual improvement in sight If recent trends are indicators, the air cargo market is definitely heading north. Speaking to Cargotalk, Manoj Singh, Vice President (Cargo), MIAL, explains the reasons for being optimistic.

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ccording Singh, the global air cargo market has witnessed reasonable year-to-date growth of around one per cent in 2013, whereas the Indian market that witnessed a sharp decline since mid-2012, managed to register flat growth in 2013. The increase in passenger business affected the yield and load factors of airline operators by the surplus belly capacity and intense competition. Airline load factors continue to fluctuate since mid-2012, despite performing better in a few parameters in March and October.

and diversion to ocean freight. Rise in exports of pharmaceuticals and textiles, improved performance of manufacturing sector, increase in export orders and policy decisions by government to stabilise rupee has supported Indian air freight market to maintain the levels of 2012.

He also pointed out improved demand in Q3, better trading performance with Asia-Pacific, European, Middle East & US markets and reduced jet-fuel prices compared to the Q1 levels, forecast an optimistic outlook for Indian air freight market in The Indian market has the coming months. However, Manoj Singh been consistent since March Vice President (Cargo), MIAL the growth could be moderate in 2014 as anticipated by 2013 and October has been many emerging economies and by IATA. encouraging with noteworthy performance Appreciation in Indian rupee will definitely in both air exports and imports. Consistent support India. Efforts put in place by the growth in exports in the second half of 2013 Indian government towards stabilising the has offset the flat performance of imports rupee and bridging the trade deficit needs to due to fluctuating rupee versus the dollar, be appreciated. drop in orders, weak demand for electronics

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International Airport New Initiatives

Airport capacity

DIAL continues building up in 2014 IGI Airport, Delhi, has chalked out ambitious plans for cargo operations. Meanwhile, the airport implemented several new facilities for the convenience of shippers and carriers. Sanjiv Edward, Head, DIAL Cargo spoke to Cargotalk on the recent developments and expectations from the year 2014.

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dward maintained that due to economic conditions, cargo growth worldwide has not been encouraging in the past and the impact has been visible at the national level also. There have been instances of negative growth as well, and therefore market conditions are pretty tough to operate in. In Indian context, this is compounded by facts such as exchange rate fluctuations, rising input costs, slower than the expected GDP growth. “In spite of these challenges we at Delhi International Airport have been able to register growth numbers in international as well as on domestic cargo,” maintained Edward. At Delhi Airport, exports have risen by 11 per cent from 2012, domestic outbound has grown up by 21 per cent, and transshipment has gone up by 25 per cent. “We are thankful to our customers who have responded extremely positively to the developments we have made in our infrastructure and processes in bringing world standard practices. We are constantly aiming to offer highest levels of service to our customer to give them the competitive advantage and economic value, which becomes more important in tough market conditions,” said Edward.

We are quite positive on our cargo growth plans. Delhi has been recognised by IATA as the first and only airport currently to be e-freight compliant” Sanjiv Edward Head, DIAL Cargo

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The DIAL cargo head is optimistic that the airport would see resurgence in economic activity this year, which will have a positive impact on air cargo. He pointed out that the US economy has shown strong signs of turnaround and this would stimulate some of its trade lanes and some economies in EU might come on the revival path with UK, Germany, Ireland, etc. “We have just started to see some positive economic trends while emerging economies like Poland maintaining

a healthy growth thereby giving the industry newer opportunity to do business. UAE is also expected to see healthy growth in its economic development,” he highlighted. According to him, all this would likely to have a positive impact on India’s economy as well and therefore the industry would see stronger demand for logistic services in times to come, giving push to creating sustainable value in Supply Chain. Edward is also expecting the domestic air cargo business to do well, primarily driven by the e-commerce. “We are quite positive on our cargo growth plans. Delhi has been recognised by IATA as the first and only airport currently to be e-freight compliant. We believe the IT will play a major role in reducing the processing time. We have already implemented several initiatives eg. electronic LEO, paperless acceptance, etc. The customers are already benefiting from this operational excellence,” said Edward. Edward commended Customs for implementation of 24x7 customs clearance. He stressed that DIAL is committed to support any initiative that will bring in global practices in India like – actual 24x7 airport operations, adequate processing capacity (currently, it is in excess of processing 1.5 MT per annum), creation of product lines like Pharma/ Perishable Zone with extreme temperature zones and maintaining cool chain from consignor to consignee, Air Freight Stations, road-feeder service, Cargo Village, and Cargo Community System. “We will continue to work with industry to fulfill their needs and provide service as per their requirements and giving them cutting edge in their quest for service and cost advantage,” he added. www.cargotalk.in


International Airport Terminal Update

Concor to operate integrated terminal

In Mumbai International Airport The recent development that the Mumbai Airport’s International Cargo Terminal (MIAL Terminal) would be operated by the Container Corporation of India (Concor) effective January 2014, has great significance from air-cargo traffic from this airport’s point of view. There are lots of expectations from the air cargo community. Anil Gupta, CMD, Concor spoke to Cargotalk about the PSU company’s focus areas for this airport. Ratan Kr Paul

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upta made it clear that the primary focus of Concor Air Ltd (CAL), which is a wholly owned subsidiary of Concor, will be to provide a conducive professional environment for the trade, to weave a synergy of the stakeholder agencies to carry out various functions pertaining to air cargo business with active help of Mumbai International Airport Limited (MIAL). “MIAL will provide the requisite support though augmentation of infrastructure to cater to the growing air cargo business through capital investments under mutual agreement with CAL,” said Gupta.

from vast experience in operating ICDs/CFSs across India, Concor itself has experience in handling air cargo in form of bonded trucking from its ICDs to/from airports. “We have also successfully undertaken the air cargo operations at old Bangalore Airport (under a joint working group of HAL, CONCOR & MSIL) where we operated for over seven years. Currently, we are operating at Nashik (as HALCON which is a joint venture of CONCOR & HAL) and at Goa Airport. Besides this we are also operating Air Freight Stations (AFSs) at prime locations like Kanpur and Ludhiana which have facilitated the trade a lot,” Gupta pointed out.

As a Concor subsidiary, CAL enjoys the benefit of deploying its experienced professionals in the field of logistics. Apart

New Plans

MIAL has ambitious plans of creating new

Currently, we are operating at Nashik (as HALCON which is a joint venture of CONCOR & HAL) and at Goa Airport. Besides this we are also operating Air Freight Stations (AFSs) at prime locations like Kanpur and Ludhiana Anil Gupta CMD, Concor

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air cargo terminal to augment the present infrastructure which is presently old and is highly congested. Phase-wise construction will be carried out. “Concor enjoys very healthy relationship with all statutory government bodies including Customs and Central Excise. CAL will also derive the same level of relationships,” Gupta emphasissed He further maintained that Concor Air has already taken over the domestic air cargo operations under a long-term concession agreement with MIAL and is successfully running the show since May 2013. CAL is also developing a new domestic cargo terminal at Santacruz Air Cargo Terminal on the land provided by MIAL on BOOT basis under concession agreement, likely to become operational in the first half of 2015. As per the Concession Agreement with MIAL for International Cargo Operations at Mumbai Airport and is going to take over the facility very shortly. This will give impetus to Concor Air to manage both international and domestic trade under one roof and provide world class services to its customers. Under the new arrangement for international cargo operation, CONCOR Air has entered into a three-year concession agreement with MIAL to operate and manage all activities pertaining to the air cargo complex at Sahar. Operational area will also include cold storages/ refer containers for handling perishable export cargo (which are under MIAL’s control) and the newly constructed import temperature controlled warehouse with world class facilities. www.cargotalk.in


Cover Story Logistics Technology

The cargo and logistics industry in India is largely fragmented and underinvested. Utilisation of technology is, hence, a big challenge before the solution providers. Cargotalk spoke to leading technology solutions providers to know the critical areas and offerings from them to make the industry cost effective and world class. Ratan Kr Paul

24 i cargotalk i february 2014

www.cargotalk.in


T

he growing operational complexity and landscape of companies is challenging in the conventional tenets of logistics. Dynamics in the market place, Internet and availability of various IT applications, infrastructure and connectivity options have created an altogether new paradigm for re-defining the logistics space. The need for smart logistics and efficient supply chain management cannot be stressed further for companies to have a fighting chance to stay competitive. Improving supply-chain visibility in any manner is another imperative that continues to grow in importance in managing today’s globally integrated enterprises. According to Prasad Kurup, Partner, Strategy & Transformation at IBM Global Business Services India / South Asia, logistics industry, which has been primarily an unorganised and fragmented sector, has continuously neglected the effective use of technology. This neglect, coupled with highly redundant processes, has resulted in process inefficiencies, asset under-utilisation and limiting scalability. This is further worsened by the industry dynamics like pricing pressures, high costs/ low returns on investments, hiring/retaining talent, client pressure to broaden service offerings, demand for customised solutions and value-additions, besides infrastructural

bottlenecks and government regulations. “The majority of these operationallevel issues (excluding external factors) can be handled by an implementation of technology. Logistics companies which have adopted technology. Either these systems are outdated and incapable of serving the current needs; or they are isolated systems, which have created ‘islands’ of information,” he pointed out. An additional challenge is that partners and customers perceive these technology enablements to be a part of the basic service package offered by their logistics service partners, and often do not want to match the same with increased payments for these additional services. Arvind Mehrotra, President, Asia Pacific at NIIT Technologies, maintained that the cargo and logistics industry in India needs to be integrated. Currently, the industry is working in isolation from technology point of view. The supply chain services are not end-to-end; and as a result, technology related projects are not taking shape as per expectations. There is no standardised cargo or logistics community system across the world. Every country or department is following their own system resulting in lack of information and transparency about a shipment. “There should be a common community system and handshake links

This neglect, coupled with highly redundant processes, has resulted in inefficiencies, asset under-utilisation and limiting scalability

Prasad Kurup Partner, Strategy & Transformation at IBM Global Business Services India / South Asia

Technology for

Logistics

Solution providers bring innovative products www.cargotalk.in

february 2014 i cargotalk i 25


Cover Story Logistics Technology

Arvind Mehrotra President Asia Pacific at NIIT Technologies

for end-to-end supply chain management. We will have to think much beyond Air Way-Bill,” said Mehrotra. He pointed out that presently, the manual system is largely practised in all modes of transportations and technology used is not end-to-end. He also maintained that customers are not confident that they are dealing with a robust logistics players, since they (logistics players) are

Currently, the industry is working in isolation from technology point of view. The supply chain services are not end-to-end” Arvind Mehrotra President, Asia Pacific, NIIT Technologies depending on sub-suppliers. Currently, a lot of processing is required (like segregation of Master Airway Bill and House Airway Bill) and it is possible only through appropriate technologies. He also maintained that the logistics industry is low-yield and underinvested segment. However, customers have to utilise logistics companies’ services to reduce their costs. According to Ajay Bhutani, CEO, Bar Code India, there are two sides of the logistics industry —organised and unorganised. The organised sector has been using technology for some time. Some of the large multinational couriers and their consolidated supply-chain arms have been using technology because of their global norms. The overall usage in percentage, compared to the size of the industry, is 26 i cargotalk i february 2014

Ajay Bhutani CEO Bar Code India

Vineet Malhotra SVP Kale Logistics Solutions

Parvinder Singh MD Hans Infomatic

minimal as of date and there is large scope of can only add value to the entire supply chain. use of technology to bring about efficiency, He, however, maintained that the technology cost-saving and better customer service. “As services should be as per the requirement of technology service-providers, we the local industry scenario have been constantly educating (like use-and-pay model). the industry to adopt technology, which is now resulting in postive “Technology helps action. Perhaps, the GST factor organised logistics and the fact that labour attrition companies score over rate and reliability of labour unorganised ones, and will is proving to be a factor as be the key to their operations well,” said Bhutani. Bar Code moving ahead, given the is witnessing encouraging competition. With industry responses and growing number margins under constant of companies are deploying pressure and growing Shoummo K Acharya these solutions across their competition, improving Founder MD & CEO-eTrans business and looking to upgrade operational efficiency will Solutions to a higher level of technology or be critical to the success of even leapfrog legacy technology logistics firms,” pointed out to adopt a higher measure. Shoummo K Acharya, Founder MD&CEOeTrans Solutions. Vineet Malhotra, SVP- Kale Initiatives for the best uses Logistics Solutions, added that the freight n CII Institute of Logistics is hosting industry, which has been traditionally “Role of Technology in Logistics and very fragmented, is moving towards Supply Chain 2014” Edition II, from becoming more integrated. Logistics February 13-14, 2014 in New Delhi, companies are attempting to replace which is a cross industry forum bringing their disparate and legacy systems with together stakeholders including more latest multimodal transport systems customer organisations, logistics service to attain integration. Technological advancements in ICT are a major factor in this transformation. According to Parvinder Singh, MD, Hans Infomatic; the cargo and logistics industry is going through multiple challenges presently. Clients are asking for valueaddition and end-to-end solutions that cannot by offered by majority of Indian companies who are small and middle-size. “Today, single service like freight forwarding or warehousing is not enough even after offering personalised services.” Moreover, adoption of appropriate technology services

Logistics companies are attempting to replace disparate legacy systems with latest multimodal transport systems” Vineet Malhotra SVP, Kale Logistics Solutions www.cargotalk.in


Cover Story Logistics Technology

providers and technology solution providers. This conference attempts to cover the technology imperatives interconnectedness, visibility, analytics and optimisation, international trends, social and mobility, and the corresponding implications of technology solutions in logistics and supply chain; which would enable organisations to take judicious decisions in improving their technology-maturity in logistics and supply chain. n NIIT Technologies entered into a strategic partnership with SATS (Singapore Airport Terminal Services) to offer COSYS-IS. COSYS-IS is a web-based platform capable of providing real-time flight and shipment tracking information. The solution can be seamlessly integrated with local processes and regulations to enable greater transparency and accuracy of the cargo handled throughout the value chain. n The use of radio frequency identification tags, the Internet and transponders on product packages allows factories and warehouses to keep track of where a product is at any time. Sharing information through electronic (EDI) mode among forwarders, shippers, terminal operators, and customs brokers can help streamline the supply chain and bring in greater visibility and transparency. At a high level, technology service-providers are working towards integrating and

interfacing different forms of systems and technology applications on a single-window system.

Sharing information through electronic (EDI) mode can help streamline the supply chain and bring in greater visibility and transparency Products & Services

NIIT Technologies has developed specialised solutions and platforms for the airline and logistics industry. In order to enable airlines with a robust and flexible cargo handling system, NIIT Technology developed a complete cargo handling platform - COSYS-IS (Cargo Operations System – Intelligent Solutions) - that automates and simplifies the process. COSYS-IS is a proven warehouse management system specifically designed for cargo ground handling agents and cargo carriers. Kale Logistics is providing both the enterprise solutions which automate the internal business processes of the logistics companies and help in improving internal efficiencies for them as well as developing cargo community platforms that bring in industry level efficiencies and standardisation. “Today, about 60 per cent of India’s air cargo information flows on Kale’s

systems like the Airport Cargo Management solution- GALAXY,” asserted Malhotra. Kale’s objective is to present the global logistics industry with a Single-Window system that gives them a complete view of their business network. Hans Infomatic has developed cloudbased technology services for warehouse and fleet management, terminal operation and e-commerce portals. The company is also promoting IATA e-freight in a big way. “We are witnessing a new breed of warehouse operators in the country, who are primarily big land owners. They are building modern warehouses on lease for multinational logistics companies. Bar Code designs, develop and deploy solutions around this function for all verticals of logistics industry. Its major focus is on data collection through enterprise mobility (across platforms), Bar Coding, Enterprise WLAN and RFID. They have perhaps the largest software development facility catering to this niche in India. “The solutions that we provide can broadly be categorised as Tracing and Tracking solutions for courier, air and surface cargo companies; Proof of Deliver solutions(POD) for online retail companies and for courier, and cargo companies; Warehousing solutions for 3PL and cargo companies and container tracing and tracking for ports,” informed Bhutani. eTrans recently introduced introduced mobile apps for the senior executives of corporate and service-providers to track a set of vehicles/particular vehicle through their mobile phones. The company is providing solutions to a large number of Indian bluechip corporate and large/medium/small transport companies. “We have varied range of products regarding GPS and smart card for tracking movement inside the plant and outside the plant. Our GPS solution includes vanilla tracking, tracking movement of transit mixer by sensing rear ignition and drum rotation, temperature sensor, fuel sensor, asset tracking, VTS for delivery confirmation, Wi-fi Tracker and trailer/container tracker. With smart card tracking we provide low cost tracking solution for market vehicles with over 200 swipe stations distributed all over India.

28 i cargotalk i february 2014

www.cargotalk.in


Lead Story International Airlines

Air Freight Volumes Increases:

Airlines upbeat on prospect in 2014 According to the IATA figures for November 2013, worldwide air-freight volumes are showing an upward turn after an extended period of weakness in 2013. It witnessed a strong growth in demand in November that helped the freight load-factors rise above as compared to the same period in the previous year. Cargotalk highlights views from a few major airlines to highlight the recent developments in this sector. Ratan Kr Paul According to Keki Patel, Cargo Manager, India & Nepal, Emirates SkyCargo is presently witnessing an upbeat outbound demand from India which is a positive sign for Indian exports. Pharma, chemicals, perishables, machinery spares for OEM, and valuable cargo will continue to show strength in the coming months and beyond. “We are maintaining good cargo loadfactors from all our 10 stations in India and continue to operate our scheduled freighter operations Mumbai–Dubai turn-around,” he added. Emirates has catered to few customers’ urgent logistic needs through additional IATA Economics: www.iata.org/economics

L

ufthansa Cargo informed it had increased its cargo load factor in 2013 to 69.9% by transported 1.7 million tonne of cargo and mail. Lufthansa Cargo also added the Mexican metropolis of Guadalajara and the Peruvian capital Lima to its schedule. “We are able to hold our own even in a difficult market environment and have laid the basis in 2013 for important developments in our company,” said Karl Ulrich Garnadt, CEO, Lufthansa Cargo. Lufthansa Cargo will further modernise its freighter fleet in 2014. The company already accepted delivery of two brand new Boeing-777 freighters in November of last year. Another two of these modern, fuel-efficient aircraft will be handed over to the airline in the first six months of the current year.

30 i cargotalk i february 2014

We are able to hold our own even in a difficult market and have laid the basis in 2013 for important developments” Karl Ulrich Garnadt CEO, Lufthansa Cargo

We are maintaining good cargo loadfactors from all our 10 stations in India ” Keki Patel Cargo Manager, India & Nepal, Emirates SkyCargo

www.cargotalk.in


Lead Story International Airlines

charter services, ex-BOM and ex-DEL, and ensured their competitive edge in their market-place. Patel is expecting Indian air exports to improve in tonnage and better returns for the value-added services the airline offers. “We hope to see more maturity coming in the industry with active and serious participation in the projects like e-Freight and CASS Export Billing,” he emphasised. Pravin Singh, Area Commercial Manager South Asia, IAG Cargo Air Cargo has seen varying levels of regional performance and the Asian markets have been relatively buoyant. IAG Cargo has introduced capacity into the market over the last two years at Seoul and Chengdu airports. They have also noted a gradual shift in China’s production centres from East to West, as part of China’s ‘Go West’ policy. “To meet the subsequent shift in demand, we recently launched a thrice-weekly cargo service between London Heathrow and Chengdu in the South-West. We are looking at additional opportunities in the region and we see China as a key strategic market,” he shared. He pointed out that there have been increases in the flow of goods from Asia Pacific to South America–specifically, hi-tech goods and drugs from India to South

America. “We witnessed increased activity through the end of 2013 with some credit to be attributed to major technology launches as well as on-going economic recovery in the Euro Zone,” he said. In 2013, IAG Cargo has announced a number of significant enhancements for the Indian market. Hyderabad and Chennai have benefited from additional services, meaning that IAG Cargo now offered daily flights to the major pharmaceutical hub of Hyderabad, and 6 services a week in Chennai. With these announcements, IAG Cargo now operated 46 line flights a week into India. “With improved connectivity at our global hub in London and Madrid, customers can access 350 destinations around the world. We have also invested in our digital distribution channels – IAGCargo.com and the IAG and Cargo App to ensure that customers can interact with us via the channel that suits them best,” Singh said. Commenting on the future prospect, Singh maintained that the Indian market has been mostly buoyant. With the augmentation in pharmaceutical industry, IAG Cargo has invested heavily in this temperature and timesensitive commodity that requires special handling through our pharmaceutical specific product, ‘Constant Climate’. “As an airline, we have responded promptly to the demands of a changing market and have provided specialised solutions. We have completed the construction of our Constant Climate Centre in London, to ensure that terminating and transiting pharma shipments are kept in the optimal conditions,” said Singh.

We are committed to investing in our infrastructure, including technology, to improve the customer experience.” Pravin Singh Area Commercial Manager, S.Asia, IAG Cargo 32 i cargotalk i february 2014

“We are committed to investing in our infrastructure, including technology, to improve the customer experience. In accordance with IATA’s e-airway bill recommendation, we are committed to creating a 100 per cent paper-free air cargo supply chain”, he said. IAG Cargo is witnessing a divergence in the number of products being produced in India, and being demanded by Indian consumers. “We are planning continued investment in our express solution Prioritise and our pharmaceutical solution Constant Climate. With the additional capacity, and even improving products, Indian businesses

In our assessment, pharmaceuticals and garments will be highgrowth areas in this year” Ashish Kapur Regional Cargo Manager - S Asia, ME & Africa, Cathay Pacific Airways will be able to send goods further, faster and more secure than ever before,” Singh added. IAG Cargo has announced new routes for the next generation B-787 and A-380 aircraft, which will be deployed across a number of key routes in the IAG Cargo network through 2014. The airline recently announced that its 787s would begin serving Hyderabad from March 30, 2014. The B-787, equipped with specified air-conditioning capabilities in the hold, will prove beneficial to customers in the pharmaceutical manufacturing hub of Hyderabad; ensuring stable onboard conditions to export temperature sensitive goods from the regions. Ashish Kapur, Regional Cargo Manager – South Asia, Middle East & Africa, Cathay Pacific Airways, says that, “With North America coming out of recession and Europe showing positive trends, we expect the current surge to continue through 2014”. He also maintained that the Indian market has performed well and has been a growing market for Cathay Pacific this year. “In our assessment, pharma will be a high-growth area, and we also feel that the garment industry is set to rebound in 2014 which could be a surprise package. 2013 has been a good year for Cathay Pacific in India. We have lifted close to 56,000 tonne on our freighters from India in this year,” he said. 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 DECEMBER 2013) 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

Export With- Out Peri- shable (MTs)

Jet Airways Cathay Pacific Emirates Air India Singapore British Airways Fedex Express Corpation Thai Airways Etihad Airways Air France Lufthansa Cargo Airline Qatar Airways Kalitta Air Uzbekistan Swiss Intl Airline Ltd Malaysian Airline System Klm M/S All Nippon Airways Virgin Atlantic Turkish Airlines Japan Airlines Aeroflot Cargo Airlines China Eastern Airlines Saudia Lufthansa Cargo Ag Hercules Aviation United Airlines Kalitta Air Finnair Air China Spice Jet Indigo Cargo China Southern Airlines China Air Martin Airline Ariana Afghan Airlines Dhl Express Blue Dart Air Arabia Gulf Air Sun Aviation Pvt.Ltd Ethopean Airlines Air Mauritius Mahan Air Oman Air Asiana Airlines Sri Lankan Airlines Ltd Air Shagoon Pvt. Ltd. Kam Air Air Astana Abakan Avia Biman Bangladesh Kuwait Airlines Kenya Turkmenisthan Airlines Ups Royal Jordanian Airlines Pakistan International Tajik Air Jetlite Iraqi Airways Air Moldova Total Cargo handled in December ‘12’ % VARIATION

1069 744 667 925 515 826 612 308 469 690 405 530 473 413 352 304 371 411 301 418 118 347 218 184 174 376 246 0 203 101 140 189 116 103 58 69 0 93 115 79 0 51 77 76 56 63 58 52 6 41 44 28 3 31 15 0 16 4 8 0 1 1 14363 12909 11.26%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs)

Import (MTs)

Total Cargo (MTs)

180 58 1171 195 21 36 1 23 126 17 47 179 0 56 20 23 37 10 6 12 12 53 0 176 19 0 29 0 0 0 0 0 0 1 2 4 0 1 0 27 0 5 17 2 25 0 0 0 0 6 0 0 30 0 9 0 0 0 2 0 0 0 2635 2741 -3.86%

1667 1754 642 1079 1001 537 722 878 567 449 578 310 309 289 343 329 216 154 267 120 418 30 195 29 185 0 84 338 98 187 125 64 123 106 106 89 157 39 10 5 103 47 4 8 2 13 15 0 46 1 0 13 6 4 0 18 0 8 0 2 0 0 14890 14865 0.17%

2917 2555 2480 2199 1537 1399 1335 1209 1163 1156 1030 1018 782 759 715 656 625 576 574 550 548 430 414 389 377 376 359 338 301 288 265 253 239 210 165 162 157 132 124 111 103 102 98 86 83 76 73 52 52 48 44 41 39 35 25 18 17 12 9 2 1 1 31889 30515 4.50%

1249 802 1838 1120 535 862 612 331 596 707 452 708 473 470 372 326 408 422 307 430 130 400 218 360 193 376 275 0 203 101 140 189 116 104 60 73 0 93 115 106 0 55 94 78 81 63 58 52 6 47 44 28 33 31 25 0 16 4 9 0 1 1 16998 15650 8.61%

% of Total 9.15% 8.01% 7.78% 6.90% 4.82% 4.39% 4.19% 3.79% 3.65% 3.62% 3.23% 3.19% 2.45% 2.38% 2.24% 2.06% 1.96% 1.81% 1.80% 1.72% 1.72% 1.35% 1.30% 1.22% 1.18% 1.18% 1.13% 1.06% 0.94% 0.90% 0.83% 0.79% 0.75% 0.66% 0.52% 0.51% 0.49% 0.42% 0.39% 0.35% 0.32% 0.32% 0.31% 0.27% 0.26% 0.24% 0.23% 0.16% 0.16% 0.15% 0.14% 0.13% 0.12% 0.11% 0.08% 0.06% 0.05% 0.04% 0.03% 0.01% 0.00% 0.00% 100.00%

Airlines whose figures are not available have not been mentioned

34 i cargotalk i february 2014

www.cargotalk.in


Cargo Performance Airports in India

Traffic statistics D omestic F reight

S. No. Airport

October 2013

Freight (in Tonnes)

For the Month For the period April to October October 2012

% Change 2013-14

2012-13

% Change -9.5 5.9 -0.1 -18.1 38.9 -36.2 11.0 45.9 18.1 1.7 -3.8 12.6 24.1 16.4 32.8 0.0

(A) 16 International Airports 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Chennai Kolkata* Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Srinagar Jaipur Coimbatore Mangalore Amritsar Varanasi Portblair TOTAL

6766 7743 3191 266 358 19 551 4 271 322 541 616 31 4 58 272 21009

6399 6380 3176 276 128 34 16 130 288 873 519 24 4 25 200 18872

5.7 21.4 0.5 -3.6 179.7 -44.1 32.5 108.5 11.8 -38.0 18.7 29.2 0.0 132.0 36.0 11.3

41832 49856 20926 1336 1203 104 3946 1700 2369 4081 3640 188 72 262 1401 132916

46246 47064 20952 1631 866 163 3555 1165 2006 4011 3782 167 58 225 1055 132946

21220 16932 8513 3513 828 550 51556

15011 14900 7159 2817 676 347 40910

41.4 13.6 18.9 24.7 22.5 58.5 26.0

119768 106816 53452 21177 5435 3051 309699

111757 107756 48932 19364 5233 2808 295850

2038 106 360 372 148 98 3122

1583 64 139 227 120 91 2224

28.7 65.6 159.0 63.9 23.3 7.7 40.4

11729 1035 2648 2056 1045 704 19217

11819 850 1127 1611 835 480 16722

-0.8 21.8 135.0 27.6 25.1 46.7 14.9

361 265 155 288 446 189 361 66 253 34 73 0 14 7 28 2540

254 404 138 188 447 146 229 88 66 72 92 5 24 4 20 2177

42.1 -34.4 12.3 53.2 -0.2 29.5 57.6 -25.0 283.3 -52.8 -20.7 -100.0 -41.7 75.0 40.0 16.7

2207 2638 990 1886 4089 1129 2404 508 1383 415 621 0 105 13 177 18565

1835 2554 826 1487 3524 1235 2500 592 914 464 723 15 135 11 177 16992

20.3 3.3 19.9 26.8 16.0 -8.6 -3.8 -14.2 51.3 -10.6 -14.1 -100.0 -22.2 18.2 0.0 9.3

149 78376

127 64310

17.3 21.9

886 481283

986 463496

-10.1 3.8

(B) 6 JV International Airports 17 18 19 20 21 22

Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) TOTAL

7.2 -0.9 9.2 9.4 3.9 8.7 4.7

(C) 7 Custom Airports 23 24 25 26 27 28

Pune Visakhapatnam Patna Chandigarh Bagdogra Madurai Total

(D) 17 Domestic Airports 30 31 32 33 34 35 36 37 38 39 41 42 43 44 46

Bhubaneswar Indore Jammu Raipur Agartala Vadodara Imphal Bhopal Ranchi Aurangabad Leh Tirupati Rajkot Jodhpur Dibrugarh TOTAL

(E) Other Airports Grand Total (A+B+C+D+E)

www.cargotalk.in

february 2014 i cargotalk i 35


Cargo Performance Airports in India

Traffic statistics

I N T E R N AT I O N A L F R E I G H T Freight (in Tonnes)

S. No. Airport

For the Month For the period April to October

October 2013

October 2012

% Change 2013-14

2012-13

% Change -9.3 6.3 31.2 18.1 -41.4 -14.7 - -17.9 15.0 68.9 - 24.6 84.6 -100.0 -9.5

(A) 16 International Airports 1 2 3 4 5 6 7 8 10 11 12 13 14 15

Chennai Kolkata* Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Jaipur Coimbatore Mangalore Amritsar Trichy Varanasi Total

19459 4352 1419 138 1914 1805 0 89 17 99 10 472 440 0 30214

18523 3725 1086 120 2478 1908 0 109 16 45 0 136 178 4 28328

5.1 16.8 30.7 15.0 -22.8 -5.4 - -18.3 6.3 120.0 - 247.1 147.2 -100.0 6.7

131956 27022 9569 1058 15943 13810 9 644 130 554 11 1170 2753 0 204629

145492 25416 7292 896 27186 16187 0 784 113 328 0 939 1491 4 226128

(B) 6 JV International Airports 17

Delhi (DIAL)

34562

30208

14.4

226938

208124

9.0

18

Mumbai (MIAL)

40538

37864

7.1

267838

272524

-1.7

19

Bangalore (BIAL)

11899

11411

4.3

88365

83399

6.0

20

Hyderabad (GHIAL)

3704

3644

1.6

28350

26095

8.6

21

Cochin (CIAL)

3157

4441

-28.9

24748

22734

8.9

22

Nagpur (MIPL)

35

31

12.9

214

228

-6.1

Total

93895

87599

7.2

636453

613104

3.8

(C) 7 CUSTOM AIRPORTS 23

Pune

10

0

-

10

0

-

Total

10

0

-

10

0

-

(C)

17 Domestic Airports Grand Total (A+B+C)

0 124119

0 115927

- 7.1

0 841092

71 839303

0.2

* Estimated

SpiceJet

honours top cargo agents at a meet in Bangkok

D

elex Cargo India, Cargo GSA of SpiceJet and SpiceJet Airlines’ Cargo jointly hosted the agent meet at Bangkok where top-performing agents were invited and felicitated with ‘Best Performance Awards’. The agents, Delex GSA team and the SpiceJet Senior management and the cargo team travelled on SpiceJet’s

36 i cargotalk i february 2014

inaugural flights to Bangkok on October 27 and 28 from Bengaluru and Pune. Raja Vaidyanathan, Senior VicePresident Commercial, SpiceJet Airlines distributed the awards to the agents. Standing L-R: Harsh Vardhan Mahin

(SpiceJet), Sriram (Delex), Srinivas Sattiraju (CEO-Delex), V Raghuraman (General Manager Cargo – SpiceJet), Raja Vaidyanathan (Senior Vice-President Commercial, SpiceJet), V Athmaraman (Head SpiceJet GSA –Delex), Sunil Mathew (Delex), Capt.Murugan (Delex), Arup Dutta (Delex) and S Padmanabhan (Delex). Sitting L-R : Satish Kumar Hajarika (Pawan Cargo), Rajendra Kumar Sharma (Index), Titus Abraham (Concord), Raj Kumar Ghosh (Royal Cargo) and Suresh Krishnasamy (Patel Integrated).

www.cargotalk.in


Academic Institute Skill Development

IITTM covers cargo & logistics tying up with industry people for training

Indian Institute of Tourism and Travel Management (IITTM), an autonomous organisation introduced by Ministry of Tourism, Government of India; is one of the premier institutes in the country offering education, training, research and consultancy in the field of tourism, travel and allied sectors viz cargo. Vinodan A, Nodal Officer of IITTM, Nellore, provides details about the institute’s initiatives for cargo & logistics industry. of India. “The internship for a period of 45 days provides the practical insight of the cargo industry and the Cargo Clubs of the Institute arrange for the special guest sessions of different experts from the industry. The student intake for the course presently is 60 and reservation as per government norms shall apply,” said Vinodan.

p IITTM Building design

H

eadquartered in Gwalior, IITTM has its campuses at Bhubaneswar, New Delhi, Goa and Nellore (South India Campus).With burgeoning job opportunities in the Logistics and Cargo Management Sector, IITTM launched PGDM Tourism and Cargo Management course in its South India Campus at Nellore, Andhra Pradesh in 2011.

According to Vinodan, the syllabi of Core Cargo Management papers have been designed in consultation with the experts from Krishnapatnam Port, Airports Authority

“The first AICTE approved PGDM (TC) course of IITTM, Nellore has evoked encouraging feedback. The overwhelming response received from the student community from all over India is evident as the course enrollment has increased twice over since 2011. The industry has reacted likewise,” said Vinodan.

The first AICTE-approved Tourism and Cargo Management course offers dual specialisation in Cargo Management and Tourism. The Cargo Management covers Air Cargo and Shipping Cargo Management modules which provide an opportunity for in depth learning of the operational and technical aspects relating to logistics. As PGDM (Tourism and Cargo) concentrates on sectoral specialisation, industry academia interface is mandatory for value addition. The first year of the course is meant to provide the foundation of cargo management aspects, logistics and supply chain issues and operations and the second year focuses on aspects pertaining to Port Management, Cargo Management, Documentation, Conventions, Legal framework pertaining to sea borne and airborne trade operations. 38 i cargotalk i february 2014

He also maintained that the courses are gaining populating with the placement of the first batch of PGDM (tourism and cargo) students in various reputed organisations all over India. Eligibility norms for seeking admissions include graduation with 50 per cent marks (45 per cent for SC/ST/OBC/ PH) and valid CAT/MAT/C-MAT/XAT/GMAT/ ATMA scores. There is no age bar. Students and industry professionals with above eligibility can also apply.

The overwhelming response received from the student community from all over India is evident as the course enrollment has increased twice over since 2011 Vinodan A Nodal Officer of IITTM, Nellore

He also pointed out that some of the recruiters of IITTM include NYK Logistics, Krishnapatnam Port, Continental Carriers and opportunities for internship was provided by a number of government and private organisations like Kerala State Industrial Enterprises, Mumbai Port Trust, Airports Authority of India and Krishnapatnam Port Company. Vinodan informed that an MoU with one of the largest ports in the country is expected shortly. The institute is willing for academia – industry tie ups with other stakeholders of cargo industry, assuring mutual benefits, in the long run. www.cargotalk.in


Products & Services Emerging Technology

Descartes takes over Impatex to boost tech services for customers

Recently, global logistics technology solutions provider Descartes Systems has acquired the UK’s largest and oldest-established Customs and freight-forwarding software company Impatex. The deal is significant for the logistics industry. Chris Jones, Executive Vice-President Marketing and Services, Descartes; spoke to Cargotalk about the company’s current market trends, the services and future plans for Indian market Ratan Kr Paul

A

ccording to Jones, technology is more important than ever for the cargo and logistics industry because of the increasing expectations of shippers (manufacturers, retailers and distributors) that use them and governmental regulations. Shippers want to have a better understanding of the status of their freight in real-time and not just at the shipment level, but related to the purchase orders and quantities in each shipment. In addition, shippers are expecting more ‘value-added’ services where logistics companies are taking a greater responsibility managing the flow of goods. All of this requires logistics technology to provide the visibility and control that shippers are demanding. From a governmental regulation perspective, goods can no longer move around the world without electronic clearance from the importing country. Logistics companies must be connected to the governmental agencies controlling the customs clearance process to efficiently move goods for their customers. On asked about upcoming plans and programmes, “We launched a number of new and enhanced products in 2013, some of which were Japan AFR (import security filing) which comes into effect in March 2014; the Descartes Community, a collaborative application connecting companies in the logistics ecosystem and acquired KSD Software, a leading provider of Scandinavian and European customs filing solutions and Impatex, a leading UK customs and forwarder enterprise applications provider,” he said. Today, Impatex provides its iCE (Integrated Customs for Europe) Customs processing system for high-volume users 40 i cargotalk i february 2014

such as Agility, Ceva, Damco, DHL, DSV, Expeditors, Geodis, Hellmann, Kuehne + Nagel, Panalpina, SDV, UPS and UTI. iCE is progressively replacing its well-established Customs Manager predecessor, in use by hundreds of freight forwarders, as well as shipping lines and shippers. “Impatex also continues to develop its unique, browser-based NetFreight

forwarding and Customs system, designed for small to mid-size agents, and bought from its inventor Evgeni Pantchev in 2007. NetFreight is now used by over one hundred freight agents in the UK, and a growing number in the USA, Europe and the Middle East. Evgeni will re-join Impatex under its new ownership at the beginning of the New Year,” he said. Descartes provides global logistics technology services for cargo and logistics companies. These include network-based services to book shipments, file-related customs documents and track the progress of those shipments on a global basis. Descartes Logistics Technology Platform can help Indian logistics companies efficiently manage the movement of goods for their customers on a global basis. “Specifically, Descartes Global Logistics Network can connect Indian logistics companies to the carriers, customers and partners they use globally to move goods. Descartes Global Freight Exchange (GF-X) can help Indian logistics companies book air freight and Descartes Customs filing solutions can help Indian logistics companies clear goods for entry into North American, European, Japan and other countries,” Jones said.

Specifically, Descartes Global Logistics Network can connect Indian logistics companies to the carriers, customers and partners they use globally to move goods” Chris Jones Executive Vice-President Marketing and Services, Descartes

Descartes believes that the Indian logistic industry is rapidly evolving to address the tremendous growth that the Indian economy has been seeing for the last 20 years. With the expansion of the Indian manufacturing industry, Descartes believes that global logistics will become increasingly important for Indian logistics companies. “At present, Descartes does not have a direct presence in India, but can do business with Indian logistics companies on a global basis,” added Jones. www.cargotalk.in


Logistics Services New Initiatives

Miniratna to CRWC

All set to offer end to end solutions in 2014 Economic recession has affected the Logistics Industry and related Warehousing across the country. However, in Central Railside Warehouse Company (CRWC) there has been a steady growth. Significantly, the company recently achieved Mini Ratna (Category-II) honour for its outstanding performance. In an interview with Cargotalk, Vinod Asthana, MD, discussed the opportunities and presents challenges for Logistics & Warehousing Industry, and the company’s palns & strategies. Ratan Kr Paul

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RWC, which is under the Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Distribution, Govt. of India, is an ISO certified company. It develops, designs, constructs and operates rail-side warehouses for handling train loads of commodities across the country. The company provides integrated logistics solutions through infrastructure development by developing logistics hubs and cold chain warehouses. It is a profit making and dividend paying PSU, CRWC, and due to its excellent performance, has been granted the Mini Ratna Status. In CRWC, 2014 will have major opportunities in the development of freight

Mechanisation of cargo-handling processes and filling up the skill gaps are the major challenges at present.” Vinod Asthana MD, Central Railside Warehouse Company

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terminals, cold-chain logistics and rail related business opportunities. The business diversification and expansion plans shall be implemented in the organisation. “After witnessing a slowdown in 2013 in both domestic and international sectors, we are expecting a better year in 2014,” said Asthana.

Delhi-Kolkata and Delh-Hyderabad. “Our main objective is to divert road freight to rail in the long-term for benefit to the end-user, as well as the traders in order to contribute substantially to the overall economy of the country,” said Asthana. However, to run the trains, CRWC will have tie-ups with transport and logistics companies in India.

According to Asthana, Goods and Service Tax (GST) will act as a driver to growth of logistics and warehousing. And, warehousing is fast emerging as a separate business vertical. Agri-logistics will gain more importance, specially in ensuring food security in the country.

Recently the company also signed an agreement with Inland Waterways Authority of India (IWAI) for developing a Multi-Modal Logistics Hub (MMLH) at Jogighopa, Assam, on Brahmaputra river, to facilitate inland vessel movement on National Waterways. The MMLH will be jointly developed by both parties.

Mechanisation of cargo-handling processes and filling up the skill gaps are the major challenges at present. He also observed that industrial warehousing shall be growing in 2014. FDI in retails sector would push the demand further for efficient logistics and warehousing further.

Asthana informed that in the days to come the company’s primary focus will be to develop cold chain and logistics parks. Meanwhile, its cold storage at Dankuni in West Bengal with 16 chambers, is all set to be operational by December 2014.

Remarkably, CRWC has also decided to operate full parcel cargo trains by FY 201314 in association with Indian Rail. Initially the trains will be between Delhi-Mumbai,

The Mini Ratna status would provide more power to the organisation for policy matter. CRWC is now preparing a pragmatic strategy based on a KPMG Report, commissioned by the company. www.cargotalk.in


Highlights of KPMG Report on Parcel Cargo Business

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ccording to the KPMG Report, the current share of rail in parcel/non-bulk cargo is limited. However, the sector has significant potential, as acknowledged by Rail Vision 2020. With respect to parcel cargo, golden quadrilateral provides a viable business opportunity. Rail parcel business has grown at modest CAGR of 6.5 per cent in the period 2007- 12, particularly compare to road (12.4 per cent). Against it, the growth in rail parcel business, in value terms, has been 12% CAGR in the same period. The significantly higher growth in value terms is driven by increase in freight rates.

FMCG, perishable goods. The existing rail parcel business is `1,500 crore on an annualised basis. Rail parcel business has grown at modest CAGR of 6.5 per cent in the period 2007- 12. In terms of additional cargo, automobile components, textile, FMCG, automobile may present a viable opportunity subject to policy and operational reforms in rail parcel business.

Going forward IR has estimated growth rate of 6.6 per cent. While, it is in line with the historical growth, is significantly lower than the targeted growth in Railway Vision Document. As per Rail Vision, the parcel business was targeted to reach `1,644 crore by 2012. More importantly, the parcel business was targeted to reach `8,000 crore by 2020. However, the plans for XII Plan are significantly lower. The actual performance in the initial days of the XII Plan has been still modest. In the period, April – November 2013, the volumes have decreased marginally compared to volumes for the same duration in the last year. The KMPG Report unveils that parcel cargo is essentially non-bulk cargo and covers wide array of cargo including white goods, paper, textile, engineering goods,

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cargo in the passenger area. According to the Report, the combined effect is that the segment has grown slower than the estimates made in the Rail Vision Document.

Regulatory scenario

Policy for leasing of Parcel Cargo Express train to private operators is the central policy for lease of VPU trains. Based on the discussion with customer, freight forwarders and other stakeholders, it is understood that there are some concerns regarding the policy, which is relatively lower term of the lease, rake composition and there are certain operational issues which are also constraint to the private investment in the service, weightment, lack of assurance on time schedule, pilferage and dispute resolution. The existing policies for private investment in rolling stock also do not allow for investment in the parcel vans. It is suggested that IR may amend policies to include VPU under LWIS scheme.

Existing rail parcel business models The Parcel Cargo in Indian Railways is handled through three models—IR Booking, lease of parcel space on SLR/AGC/VP and lease of parcel express trains. While, the first two mediums have been fairly popular, the investment in the third mode has fallen behind. On the other hand, IR has reservation about handling parcel

However, on a principal level, it is suggested that IR may issue a omnibus policy for private participation in rolling stock instead of specific policy to ensure coherence. On design aspects, IR may look to move to a policy regime which may specify only limiting condition (wagon dimension, tare weight, axle load etc) for design of wagon instead of detailed design. It will allow sufficient flexibility to customers while keeping the safety and operational considerations of IR intact.

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Logistics & Supply Chain Cold Chain

ICRIER Report unveils

untapped opportunities in cold chain business According to the Ministry of Agriculture & Food Processing Industries, Government of India; the ongoing projects in the food-processing industries sector will create an additional capacity of 1.7 lakh tonne of cold storage, 1.37 lakh tonne CA (controlled atmosphere) storage, deep freezers worth 57,000 tonne capacity, 591 reefer carriers and 103 lakh litres per day of milk storage in the country. bodies at the centre, state and local levels. If the process is streamlined, India can develop as a manufacturing hub. According to Pawar, a number of reforms have to be taken at the state level. For instance, there is an urgent need to have uniform classification for the non-alcoholic beverage sector by the State Pollution Control Boards and all states should classify non-alcoholic beverages under the ‘orange’ category along with other food processing industries.

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ddressing a function recently organised by Indian Council for Research on International Economic Relations (ICRIER), Indian Beverage Association (IBA) and Academic Foundation in New Delhi; Sharad Pawar, Agriculture and Food Processing Industries emphasised on state-level reforms and linkages between agricultural production and the requirement of food-processing industries for fast growth of the sector. At this function, an ICRIER Report on ‘Food Processing Industry in India: Unleashing the Potential of the NonAlcoholic Beverages Sector’ was released by the Minister. Commenting on opportunities and challenges pertaining to non-alcohoic beverage industry, which is an important segment of the food processing (FPI) sector, Pawar called for developing economies of scale to make it globally competitive. He commended the fact that major players in this sector are planning incremental investments to the extent of US$ 10 billion by 2020. “I am certain that given the strong backward linkages of this sector with 44 i cargotalk i february 2014

the agricultural sector, particularly in the areas of demand for sugar, fruits, pulp and vegetables, innovative ways of enhancing the yield will occur,” he said. Pawar also welcomed the investors to make use of various incentives offered by the Government to them. In August 2013, the Government has approved 75 new cold chain projects. Out of these, 56 projects have already been sanctioned. MOFPI has now invited offers for setting up of 15 cold chain projects under the Scheme for Cold Chain, Value Addition & Preservation Infrastructure. “I hope investors will take benefit of the Government’s scheme of grant in aid up to `10 crore for setting up a cold chain project,” he added. Pondering on the problems faced by the food processing industries, Pawar emphasised on the need for streamlining the clearance processes and other reforms. Presently on the regulatory front, around 40 different approvals are needed to set up a greenfield manufacturing plant. These include clearances from different government

Also speaking at this event occasion were Isher Judge Ahluwalia, Chairperson, ICRIER; Saumitra Chaudhuri, Member, Planning Commission; Shiraj Hussain, Secretary, Ministry of Food Processing Industries; Pankaj Agrawala, Secretary, Department of Consumer Affairs; Ashok Gulati, Chairman, Commission for Agriculture Costs and Prices and Ajay Shankar, Member Secretary, National Manufacturing Competitiveness Council.

On the regulatory front, around 40 different approvals are needed to set up a greenfield manufacturing plant ICRIER Recommendations

The ICRIER Report suggests that reforms in agriculture, manufacturing and retail are interlinked and it is important that policy changes are more coherent. For instance, the survey respondents asserted that unless GST is implemented organised retailers cannot streamline the supply chain. The report points out that the food processing sector will benefit only if there are uniformly low taxes for processed food. The policy should also be uniform, across the country. www.cargotalk.in


Industry Associations Business Opportunities

Canada Keen in India

to support logistics and cold chain Recently, PHD Chamber of Commerce & Industry, in association with Canadian High Commission in India, Indo-Canadian Business Chamber and Indo-Canada Chamber of Commerce organised a conference on ‘Canada-India Collaboration in Infrastructure, Cold Chains, Agriculture and Agri-Foods’.

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he objective of this Conference at PHD House in New Delhi was to discuss trade-related issues and challenges between India and Canada particularly in the food processing sector; logistics infrastructure sector; regulation of warehousing business; cold chains and agriculture and agri-trade. The Conference was addressed by Sharad Jaipuria, President, PHD Chamber; Naval Bajaj, Preident, ICCC; Stewart Beck, High Commissioner of Canada; Pawanexh Kohli, Chief Advisor, National Centre for Cold Chain Development (NCCD); Bal Gosal, Minister of State for Sports, Government of Canada; Tim Uppal, Minister of State for Multiculturalism, Government of Canada; Nadira Hamid, COO, ICBC; Dinesh Rai, Chairman, WDRA; Manish

Agarwal, Vice President, Cold Chain, Gati; Vinod Asthana, MD, CRWC and several other industry stakeholders. Several industry practitioners also attended the event. Addressing the gathering, the High Commissioner of Canada mentioned that there is a special bond between India and Canada. “Prime Ministers of both the countries have set the bilateral trade target at $15 billion by the end of the fiscal year 2015,” he pointed out. Gosal mentioned that India and Canada have longstanding bilateral relationship based on shared democratic values, multi-

cultural, multi-ethnic and multi-religious nature of two societies and have strong people-to-people contacts. He also informed the participants that government of Canada has recognised immigration as very important for the development of Canada, and that India has emerged as the top source of immigrants for the country in recent years. Bajaj highlighted that in India, cold storage system is shifting from traditional mode to modern one with new technologies and the transportation is being performed by an integrated cold chain. Earlier in his welcome address, Jaipuria laid stress on the fact that India and Canada have a longstanding bilateral relationship. Together, they can find innovative solutions to both countries expand their highways, increasing ability to generate power, and develop agriculture sector. Kohli pointed out that food security, research & development and energy should be the focus areas. He suggested that food processing sector of India is highly unexplored hence latest technologies and best practices from other countries like Canada should be adopted. This would not only help in the development of the food processing sector but also assist in building the post harvest infrastructure like Cold Chains & Warehouses.

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Family Album International Airlines

Agent Awards

Turkish Airlines celebrates

ia d In in n o ti ra e p o f o rs a ye 0 1 operation ed 10 years of Turkish Airlines has complet casion, the airline hosted in India. To celebrate the oc on December 19 in New a glittering evening function m business partners, both fro Delhi for its customers and d ate icit fel es. The airline also passenger and cargo servic event. Huseyin Ceyhan, its top cargo agents at this c and several other officials Regional Director, Asia Pacifi sent to honour the agents. of Turkish Airlines were pre

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Family Album Club Function

Christmas Cheer

ACCD members meet

for Christmas Carnival in New Delhi organised (ACCD) The Air Cargo Club of Delhi rate Christmas a cheerful function to celeb ir spouses and Carnival for its members, the mme was full of children. The day-long progra licious food. fun & frolic, followed by de

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Family Album Club Function

Christmas Cheer

ACCB presents a festive evening

to rejoice Christmas Like every year, this year too Air Cargo Club of Bombay hosted the X’mas function by hosting Cocktail & Dinner party with lots of entertainment programmes, and merry-making for the kiddies. The function was well attended by all sections of the industry.

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Expert View Technology

Investing in

Technology The two keywords in today’s logistics parlance are – Cost-Effectiveness and Responsiveness, i.e., flexibility to be able to change/adjust to customer needs. Both the goals are achievable with the application of IT in logistics processes; whether it is transportation, inventory or warehousing.

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here are many such solutions available which can be tweaked to meet individual needs. Just applying or purchasing these sophisticated solutions is not really going to bring about a change; what needs to be done is – proper training of manpower to understand and fully utilise the benefits of these IT applications. One such application is the Transport Management System (TMS). This software helps in monitoring Activity-Based Costing (ABC), and at the same time, automates the information flow from Pick to Delivery. It helps to improve transparency of the entire process.TMS can help – l Build efficient transportation plans through improved planning and optimisation by consolidating orders into loads and assigning them to the best mode of transportation. l Automate all global shipment tendering process and gain real-time visibility of tracking. l Streamline freight settlement processes to ensure invoice accuracy, shorten payment cycles, and lower administration costs. l Accurately manage and analyse transportation performance and speed by measuring against network benchmarks. l Execute inbound transportation processes by collaborating with your suppliers. Transportation involves picking up the cargo from the point of origin and then carrying through to be delivered to the final customer at its destination point. The pick- up is generally a manual process; where the customer either calls the transporting company to pick up the cargo or the transport company sends vehicles for www.cargotalk.in

pick-up on a regular basis. This is a loose loop; TMS helps to register Pick-up Request (PR) into the system, which then fills the details of – l Location – route planning l Time – picking time/schedule l Weight – helps decide the vehicle type This captures the Pickup Cost, which is generally difficult to calculate and many a times gets ignored due to lack of training and awareness.

The TMS does the Cost Management for the entire route calculating not just Line Haul Costs but also Local Pick-up & Delivery (LPD) costs as well. The LPD costs include loading/unloading costs, HR/administration costs and Transit warehousing costs. Vehicle costs include running costs, cost of consumables, driver costs, etc. Besides, loss and damage costs are also accounted for in the system along with other hold up costs or cost due to time delays. The system does Vendor Management and helps to pick out the most cost effective vendor for the purpose of transportation of cargo.

Once the load is picked up it is brought to the HUB, wherein all the pieces collected are provided with PCN stickers generated by the system; enabling full The system captures the accountability of the load. entire process up to the point The inbound operations begin of delivery because Proof of at the Hub, where the TMS Delivery (POD) and Delivery decides – Run Sheet (DRS) are also 1. Route logged into the system. 2. Vehicle Management 3. Cost Management Such state-of-the-art The route gets fixed, systems are readily available Veni Mathur depending upon the for use. One such product is Dean, Million Minds destination point of the cargo TMS DYNACARGO provided in question. The type and by Million-Minds as an IT weight of the cargo will decide the type of solution for transportation. I am sure the the vehicle on which it will be loaded. A system is flexible to add on changes needed full truck load (FTL) is simple to plan, but to meet specific requirements of the clients/ when the cargo is less than full truck load users. However, to use it effectively a training (LTL); it needs careful planning to adjust it program is vital to use the system to bring with other loads also keeping in mind the about the much needed cost reduction for destination points. In vehicle management any company. loading sheet is also generated. Along the route Touch Points are identified – To stay ahead in this competitive for example – movement from Delhi to environment, the logistics firms need to Mumbai – the Touch Points will be Jaipur, invest in modern technology and intensive Ahmedabad and Bhiwadi. These points are training of their employees. By doing this necessary for the physical assessment of the logistics firms can be looking ahead to a the vehicle. bright future. february 2014 i cargotalk i 51


Guest Column Logistics & Supply Chain

Setting the house in order to sail through turbulence With an experience of over 20 years in the logistics business, Shankar Chatterjee, Chairman & Managing Director, S Cube Trans Continental Group, maintains that the logistics and supply chain industry in India needs to be well-structured through proper plans. S Cube is a complete logistics consultancy company headquartered in Mumbai. An MBA (Marketing & International Marketing), Chatterjee has worked closely with global automotive logistics industry since plant inceptions.

Shankar Chatterjee Chairman & Managing Director, S Cube Trans Continental Group

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t is ironical to realise that, while on one side that global automotive logistics is a trade with a business potential of US$ 125 billion; but on the other end of the spectrum, we are capsized with the fact that there are low demands across the industry. Most large projects are either on a “go slow� mode or simply halted- the country’s economic slow-down, weak investor confidence are all the reasons for such a scenario. Compounding the problem, the global economy has been undergoing its own share of problems, too. Financial uncertainty, coupled with political complexity, is adversely affecting

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the overall logistics platform, which in turn is affecting India, too. Sustaining growth is a huge challenge for many organisations in this business, and this is so apparent from various levels of re-trenchments and layoffs one often comes across in this business; which was not so in earlier times. The most significant of all challenges facing this trade is the aspect of very poor infrastructure set-up. While some efforts were earlier made in this direction with the creation of a golden quadrangle; there are literally miles to go to accomplish the required results. Everything else, directly or indirectly stems out, of this problem. If India

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builds the roads, the roads will build a new India. Compliance related aspects were compromised for decades in this business. While the trade is gradually evolving, there is still a wide gap between anti-corruption related norms and what is often construed and actualised as against it. ‘Dog-eat-dog’ kind of pricing battles to gain business at ‘any cost’ takes a toll on service quality, and several other important aspects related to logistics. And, our people/professionals, who form both the ‘hardware’ and ‘software’ of this business, kind of grow more by default and experience, but often not really structured through any plan to then develop and attain business expertise!

Role of Governments & Industry

The Government of India/States alongside all policy-makers need to relax on controls and resort to a far more complimentary facilitator’s role. They need to devote time, money, investments and energy into building quality infrastructure at all levels, not just for major cities, ports and airports. If the general infrastructure develops, the trade in general will improve and boost the economy per se. The question again, is when will the government come up with a focussed plan to evolve and create the national infrastructure? It is high time that logistics service providers are now elevated to a class called

Products & Services

DB Group Spa launches Fresh & Frozen Logistics Solution B Group’s Fresh & Frozen Logistics D Solution is an international distribution service dedicated to perishable products, in Italy. Elaborating on the new solution Silvia Moretto, CEO, DB Group said, “Fresh www.cargotalk.in

Business Partners! Without logistics support, nothing moves. Hence, the manufacturers need to factor in a certain cost towards demanding and ensuring quality with 100 per cent compliance. Doing the fundamental planning and costing right, is more than winning half the battle. India is undoubtedly a potential superpower in the world economic map, in terms of its business potential, growth, diversity, trained manpower both for blueand white-collar jobs. India is no longer only an investment destination/market. India is now on its threshold of becoming a global sourcing hub for the world market. China gains an infrastructural edge over India; but a growth-driven one on the wheels of solid democracy is more robust, and needless to add, even everlasting. With a little boost towards Indian infrastructure and consciousness towards important elements like Quality, Safety, Security, Compliance - India should become a large global supplier on the world stage. This, in turn, can only augment the supply-chain business in general.

We need efficient partners, as much as our customers need to focus on their own core business, allowing true professionals to undertake their logistics business

Having undertaken logistics activities for all the major automotive giants, including the ancilliary support industry; I am confident that India has all it needs to be the finest automative hub from South Asia. Our coastal waters only help us towards facilitating these exports, where shipping plays a rather significant role. Let us not forget India opened its gates towards global economy, driving on the wheels of the automative trade, which is also a huge economic indicator.

& Frozen Logistics Solutions is a service targeted to perishable goods which broadens our range of activities thanks to a new series of temperature-controlled warehouses. Covering a full range of perishable products, we want to help our customers dealing with the cold chain.” He also maintained that thanks to Fresh & Frozen solutions it is now possible to store fresh, perishable and frozen goods - which need to be kept under constantly, rigorously monitored temperature conditions - in the company’s dedicated warehouses, strategically located in Milan area, designed

to be adapted and customised according to their customers’ needs. The company is able to store and ship many different types of goods, such as packaged food, frozen food, eggs, dairy products, packaged meat, flowers. “Moreover, thanks to our consolidated network of global suppliers, the cold chain is never broken. DB Group can deliver the most delicate products to any destination, by keeping the required temperature constant,” Moretto emphasised. february 2014 i cargotalk i 53


User’s Perspective Snapdeal.com

Combi flights during nights required to tap e-commerce market

Snapdeal.com has more than 20,000,000 registered users from 4,000+ cities and towns. Its Online Marketplace has more than 6,000 brands with 4,000,000 plus listed products. Speaking to Cargotalk, Saurabh Goyal, Logistics and Supply Chain Head, Snapdeal; highlighted opportunities and challenges before the e-commerce industry in India. Ratan Kr Paul

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napdeal.com was started in February 2010 as a daily deals platform, but expanded in September 2011 to become an e-commerce company via a marketplace model. The company was started by Kunal Bahl, a Wharton graduate and Rohit Bansal, an alumnus of IIT Delhi in February 2010. With 20 million registered users, Snapdeal is one of the first and largest online marketplace in India offering an assortment of more than 4 million products across diverse categories from over 20,000 sellers, shipping to 4,000 towns and cities in India. In June 2010, Snapdeal acquired Bangalore-based group buying site, Grabbon. com. In April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out of Delhi. In May 2013, Snapdeal acquired also Shopo.in, an online marketplace for Indian handicraft products.

A brief profile >>

Saurabh Goyal is the Vice President for Supply Chain Operations at Snapdeal. He has over 10 years of professional experience spanning across management consulting, supply chain planning and e-tailing. He has a mechanical engineering degree from IIT Mumbai and management degree from ISB, Hyderabad. 54 i cargotalk i february 2014

Significantly, in the 3rd round of funding of $50 million, eBay came out as the largest investor in Snapdeal. The investment also includes a commercial partnership under which eBay will get access to Snapdeal’s 20 million registered users, logistics software and distribution network. According to the agreement, Snapdeal will offer a limited number of products on eBay India and eBay will list its merchandise on Snapdeal. At present, 15-20 per cent of the sales on Snapdeal comes through m-commerce. Snapdeal.com expects its’ total sale of products to cross `2,000 crore in the 201314 fiscal helped by its robust growth.

Challenges and Solutions

However, there are some challenges related

to smooth flow of goods and inventories. “To meet the demand side, the supply chain infrastructure is not ready in our country at present, though there are some efforts from various companies,” said Goyal. According to him, e-commerce market is becoming lucrative in Tier-II and Tier-III cities. However, proper connectivity and infrastructure is not suitable to meet the demand side. “The gap is mainly because the sudden spur of self-distribution model, because of the rise of e-commerce or m-commerce,” observed Goyal. Currently, Snapdeal is utilising third-party logistics companies for all of its consignment delivery. “The logistics companies in India are unable to deliver the required services. This is happening mainly because of two reasons: their internal operational weaknesses and government policies, which are not industryfriendly,” Goyal said. He pointed out that the delivery pertaining to e-commerce is always express mode. However, the bottlenecks at the airports (viz, at the terminals) and surface network (viz, at the check posts) is deterring the potential growth of this emerging sector. “To make the e-commerce venture a success, air connectivity from metros to Tier-II and Tier-III towns should be sufficient and convenient for shipments. There should be more night flights with ample space for cargo,” said Goyal. According to him, as e-commerce is growing very fast, the possibilities of flying more freighter flights are ripening. “In the meantime, airlines can follow a pragmatic model of night flights combining adequate cargo space and passenger capacity and by offering low fares for passenger tickets. www.cargotalk.in



Cargotalk February 14