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Cargotalk Annual Issue

July 2013

RNI No.: DELENG/2003/10642 Date of Publication: 22/6/2013

Vol XIII No.8 Pages 76 Rupees 50 cargotalk.in By DDP Publications

South Asia’s Leading Cargo Monthly 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.

Haier Appliances Success for efficient SCM support

Common Crisis Agents seek friendly policy

Horizon Industry foresee upturn through innovation


editorial

Cargotalk Editor SanJeet

Cargotalk Annual Issue

Sr. Assistant Editor Ratan Kumar Paul Sr. Sub Editor HRitvick sen

Vol XIII No.8 Pages 76 Rupees 50 cargotalk.in By DDP Publications

Asst. Vice President Gunjan Sabikhi

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

JULY 2013

It’s a time

for tough players

I

t is evident from the facts and present market trends that cargo and logistics companies have to face another year of sluggish growth owing to factors related to international economic scenario and financial and political turmoil in India. With unprecedented depreciation of Indian currency, cost and price escalation and impending Lok Sabha elections, it is logical that uncertainty to loom large over the overall market scenario.

The latest exports figure for the month of May is an indicative of the fact that the global recovery is still weak. Exports during May, 2013 were valued at US $ 24,505.66 million which was 1.11 per cent lower in dollar terms than the level of May, 2012. Cumulative value of exports for the period April-May 2013-14 was US $ 48,670.03 million registering a growth of 0.21 per cent in dollar terms over the same period last year. Though there are some improvements in countries like USA and Japan but Eurozone continues to be a cause of concern. Even in some large emerging economies like China, Brazil, Russia and South Africa. China, which is world’s top exporter, has also showed a growth of 1 per cent in their exports for the month of May while their imports were down by 0.3 per cent. According to Indian exporters, sluggish external demand and lack of investment are not only hitting them severely, also pulling down the nation’s economy. According to a recent FICCI industry survey, the overall Business Confidence

SanJeet Editor

4 i cargotalk i july 2013

RNI No.: DELENG/2003/10642 Date of Publication: 22/6/2013

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

Haier Appliances Success for efficient SCM support

Deputy General Manager Harshal Ashar

Common Crisis Agents seek friendly policy

Horizon Industry foresee upturn through innovation

Regional Head: North & West shiv kumar Assistant Manager: West Roland Dias Sr. Marketing Co-ordinator Gaganpreet Kaur Design ruchi sinha Photo Journalist simran kaur Advertisement Designer Vikas Mandotia, Nitin Kumar Aarushi Agrawal

Index declined for the second consecutive quarter. What is even more worrisome is the fact that the participants did not seem too optimistic about the expectations over the next two quarters. The participants indicated weak demand to be a worrying factor hampering the overall business performance. Also there was a marginal increase in the proportion of respondents citing cost of credit to be a concern. The companies were not too upbeat about the sales prospects and profit margin performance over the next six months. As a result, there would be a huge impact on the cargo and logistics industry. Nevertheless, going is not tough for the innovative players. A large number of entrepreneurs from this sector performed remarkably better in 2012-13 and are expecting a spurt in the current financial year. Reasons: their risk taking mind set for venturing out to explore new markets and product range. In addition, prompt response to market trends by adopting contemporary technologies made them smart and strong enough to face the tough times. It is likely the strategy to be continued and followed by others in the months to come.

Production Manager Anil Kharbanda Circulation Manager Ashok Rana DDP Publications Private Limited New Delhi: 72 Todarmal Road, New Delhi – 110001, India. Tel.: +91 11 23731971, 23710793, 23716318, Fax: +91 11 23351503, E-mail: cargotalk@ddppl.com, Website: www.cargotalk.in Branch Offices

Mumbai: 504, Marine Chambers, New Marine Lines, Opp SNDT College, Mumbai – 400020, India Tel.: +91 22 22070129, 22070130 Fax: +91 11 22070131, E-mail: mumbai@ddppl.com Middle East: 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 July 2013

SECTORS National News 8 I IGI: First in India to use CDM

10 I Mumbai Airport

introduces: New cold storage facility for import

International News 14 I Worldwide Flight Services is Etihad Cargo’s preferred handling partner ECS wins Best GSSA Award for third year straight Infrastructure Project

62 I Gati Infrastructure

cargo performance for May 2013 at Mumbai International Airport

38 I Airport wise domestic cargo performance at Indian airports for April 2012 to March 2013

40 I Airport wise

international cargo performance at Indian airports for April 2012 to March 2013

42 I Airlines wise

international and domestic cargo performance at Indian airports for April 2012 to December 2012

responds to environment issues at Chuzachan Project

Shipping & Ports 46 I Mundra Port handles the largest container ship in India

Logistics Services

48 I Maersk Line merges

64 I Providing worldstandard HR for SCM

Industry Associations 16 I FFFAI Biennial Convention: Government assures industry friendly Rules Emerging Technology

22 I New solutions for cargo handling and capacity building

Cargo Performance 36 I Airlines wise exim cargo performance for May 2013 at Delhi International Airport

37 I Airlines wise exim 6 i cargotalk i july 2013

n Cover story

28 I New Horizon:

Upturn through innovations

54 I Glimpses of 2012-13:

Despite a sluggish 2012-13 in general, many of cargo and logistics companies in India witnessed reasonable growth. They are upbeat about the growth prospect in the current financial year, though the global economic scenario looks gloomy. In this Annual Issue that sums up the previous financial year and unveils market trends for the current year, Cargotalk speaks to some industry practitioners who believe in innovation and achievement during tough times.

56 I FFFAI Convention 2013: Customs brokers meet with full strength

COLUMNS

60 I Annual Customers Meet: CSC celebrates 18 years of operation

Current Issues 20 I Common Crisis: Agents seek friendly policy

62 I DELEX starts

Trade Opportunities 24 I India China Trade: Exporters ready to push the limit Project

MECL1 and ME4 services

52 I Now, containers can go straight to CFS Family Album

Looking Back and Ahead

cricket tournament for its branches and customers

In Conversation

66 I APEDA expands

India’s share with new produces and new markets User’s Perspective

72 I Haier Appliances

India: Success story continues with efficient SCM support www.cargotalk.in


National News International Airport

IGI: First in India to use CDM The new Collaborative Decision Making system will save cost, improve on-time performance, reduce emissions and enhance decision-making for airport authorities.

T

he capital’s Indira Gandhi International Airport (IGI) has become the first airport in the country to introduce Airport Collaborative Decision Making (A-CDM). The initiative has been jointly taken up by the Air Traffic Control (ATC), the GMR Group-led consortium DIAL and the airlines operating from the airport. The system is named as DA-CDM (Delhi Airport-Collaborative Decision Making). This is a concept focussing on improving air traffic flow and capacity management at airports by reducing delays, improving event predictability and optimising resource utilisation. It involves airport operators, airlines, ground handlers and ATC collaborating and sharing data to increase overall airport efficiency. The DA-CDM system was implemented at IGI Airport on World Environment Day, June 5, 2013.

a true game-changer in the Indian aviation industry. It will allow us to achieve annual savings of 2,500 tonnes of ATF and 7,850 tonnes of saved CO2 emission by reducing taxiing time by even a minute per aircraft.”

Commenting on the initiative, DIAL CEO I Prabhakara Rao said, “The DA-CDM is

P K Mishra, Executive Director (ATMASM) added, “The DA-CDM project aims

to improve the overall efficiency of an airport. After two years of diligent work, the Delhi ATC has managed to achieve this with the support of DIAL team. The DA-CDM will enable optimum utilisation of ATC resources, resulting in reduced workload of controllers, minimum ground delays and increased level of safety.”

Delhi Airport adjudged 2nd best airport by ACI

D

elhi’s IGI Airport (IGIA), which was recently adjudged as the second best in 25-40 million passengers per annum (MPPA) category in the world, received the ACI ASQ Award at an awardceremony in Istanbul, Turkey on June 13, 2013. The nine-member Delhi Airport team, comprising representatives from DIAL,

CISF, AOC and Air India, was present at the ceremony of this Airport Service Quality (ASQ) Awards organised by the Airports Council International (ACI) 2012. The airport scored 4.83 on the ASQ scale out of 5 points and has been recognised as the 4th Best Airport in the world, amongst

199 participating airports across all categories and 2nd Best Airport in its Category in 2012, which is remarkable progress from its ASQ score of 3.02 in 2007, ranking last in a universe of 101 airports. Expressing his delight, I Prabhakara Rao, CEO-DIAL said, “Representing an Indian airport at a globally recognised forum was really an emotional moment, something that we as IGIA community, are really proud of. It gives us immense pleasure to receive this award and we would like to convey our sincere gratitude to our passengers. “ In 2012, DIAL has managed to maintain an On-Time-Performance (OTP) of 80% which is a substantial improvement from the past. Around 34.2 million passengers passed through IGIA in 2012 .It handled almost 550,000 tonnes of cargo and over 300,000 aircraft movements during the same period.

8 i cargotalk i july 2013

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National News International Airport

Mumbai Airport introduces

new cold storage facility for import

R

ecently, Mumbai International Airport unveiled its new cold storage facility — ‘MIAL Import Cold Zone’. According to airport sources, it has been a critical industry requirement to enhance import cold storage capacity at MIAL import facility. Interestingly, the decision to create the state-of-the-art extended cold zone was taken by MIAL only in 2012. The new facility is capable of handling 860 MT of cargo at any given time with an annual throughput capacity of 75,000 MT.

Chilling & Storage Temperature Range Capacity (Degrees Celsius) (Metric Tons) 0°C to -10°C 0°C to 8°C 2°C to 8°C 5°C to 16°C 15°C to 25°C Total 10 i cargotalk i july 2013

14 10 209 18 1035 1286 MT

The facility was inaugurated by Ravinder Saroop, Commissioner of Customs – Imports, Roopam Kapoor, Commissioner of Customs – Exports) and Rajeev Jain (CEO, MIAL). At this cold zone, the storage condition can vary from +15 to +25 degrees Celsius. According to MIAL sources, this is the largest airport-based facility in India that can accommodate cargo received from eight cargo aircraft at a time. The cold zone is a modular building constructed over an area of 1,400 sq mt with an operational area spread over 900 sq mt. “The facility is designed to handle all kinds of temperature-sensitive products, monitored with precise temperature devices,” MIAL sources claim.

Key Facts

1. Four-level racking system with 1,148 skid positions 2. Holding capacity of each rack - 750 kgm 3. Three dedicated doors (3x4.5mt = 2 nos; 1.2 x 2.1 mt = 1 no.) 4. Volume capacity 1733 cubic mt 5. Dedicated material handling equipment:

two articulated high-reach forklifts, hand pallet trucks, infrared thermometer, cooling system with inbuilt data-loggers 6. Dedicated storage area for hazardous goods 7. Continuous power supply with dedicated generator back up 8. Temperature display 9. Higher standards of safety & security and risk-assessment 10. 24x7 security surveillance by CCTV cameras and professional security personnel

Service Offered

1. Temperature recording at cargo acceptance 2. 24x7 temperature recording and monitoring 3. Cargo available for regulatory inspection within 6 hrs of receipt of ULDs and documents 4. Speedy transfer between storage location inspection area and delivery truck docks 5. Temperature record on request 6. Customised handling through key account and pre-alerts 7. Dedicated customer service cell 8. Online shipment status www.cargotalk.in


On the Move New Appointments

Allcargo Logistics A

jit Jangle has been appointed as the Group Chief Operating Officer of Allcargo Logistics. In career of over 20 years, Ajit has gained experience with various Indian and multinational companies working in India as well as overseas. He started his career with Mahindra and Mahindra and was associated with them for 10 years. In his last stint of about five years, he was working as a Managing Director with Toll Global Logistics India, part of Toll Group head quartered in Melbourne, Australia. As the Group’s Chief Operating Officer, Ajit would be playing a leadership role for The Avvashya Group in the field of information technology, e-commerce initiatives, human resource management, cost management and continuous process improvement.

12 i cargotalk i july 2013

IATA R

ichard H. Anderson, CEO of Delta Air Lines, has taken on the duty of the Chairman of the International Air Transport Association (IATA) Board of Governors. Anderson succeeds Alan Joyce, CEO and Managing Director of Qantas Airways. Anderson’s appointment is effective immediately and is for one year, ending with the conclusion of IATA’s 70th AGM in Doha, Qatar. Anderson has spent more than 25 years in aviation. He was named Delta CEO in 2007 when he joined the airline from UnitedHealth Group. He began his aviation career in 1987 at Continental Airlines. In 1990, he started a 14-year career at Northwest Airlines, where he served as CEO from 2001 to 2004.

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International News Achievements & Success

ECS wins Best GSSA Award for third year straight Recently, ECS had been awarded the ‘Best General Sales and Service Agent 2013’ during Air Cargo Europe in Munich. Sponsored by AirAsia Cargo, the award was adjudged by air-cargo industry stakeholders across the world on the basis of experience of personnel employed, quality of service provision and range of value-added services available.

F

or ECS, this award comes as third in a row after Munich in 2011 and Shanghai 2012. “We are definitely driving the right strategy with the right people and should continue to expand in the ensuing months,” said Adrien Thominet, COO, ECS Group.

ECS finds India as one of the major cargo markets for the years to come, both for export and import.” Adrien Thominet COO, ECS Group

Worldwide Flight Services is Etihad Cargo’s preferred handling partner

“Leading is not an achievement, it is a commitment-a commitment to remain the most innovative, the most creative, the most secure in order to provide our customers with best practices, best services and best tools for their cargo business,” he added. Commenting on the expectations from Indian market, Thominet maintained, “ECS finds India as one of the major cargo markets for the years to come, both for export and import. We have decided to invest heavily in building a professional set-up in India. We will provide sales support for the carriers, with whom we have a worldwide contract.

E

tihad Cargo has certified international ground-handling services company Worldwide Flight Services (WFS) as a preferred handling partner (PHP).

We will also explore all possible GSA opportunities for this market.” Presently, ECS has presence in 32 countries with 54 subsidiaries, three handling platforms, 600 employees, 4,000 customers and 478,000 tonnes freight per annum. “With global backing of our parent company, we are proud to have extended our reach to India,” he added. Here, ECS has its offices in Mumbai, Delhi and Chennai. In addition, the company has also a representative office in Hyderabad. Thominet also asserted that ECS India has grown in last one and half years, aiming at excellent quality and tailor-made services. At present, ECS India represents 10 carriers that include Ukraine International, Brussels Airlines Cargo, XL Airways, Camair, Corsair, AeroMexico, US Airways, Tarom, Avient and Niger Air Cargo. “We are negotiating with these carriers to offer online services,” informed Thominet. The two-year PHP certification with WFS is focussed initially on six Etihad Cargo stations; London, Brussels, Paris, Bangkok, Washington and Seattle. David Kerr, Vice President Cargo, Etihad Airways, said, “The Etihad Cargo-WFS PHP deal will standardise the product and service we jointly deliver, strengthen our network operations, and will enhance the reliability and quality of ground-handling services to our customers. Olivier Bijaoui, President and Chief Executive Officer of Worldwide Flight Services, said, “We are proud to have attained the status of a preferred handling partner of Etihad Cargo at major stations in Europe, North America and Asia.”

u From left to right: Etihad Airways Vice President Cargo, David Kerr shakes hands on the PHP deal with the President and Chief Executive Officer of Worldwide Flight Services, Olivier Bijaoui 14 i cargotalk i july 2013

Etihad Cargo serves 92 destinations internationally and operates a fleet of three Boeing B777F, one Boeing 747-400F, one Boeing 747-ERF, one Boeing 747-8F and two Airbus A330-200F. www.cargotalk.in


Industry Associations Event Report

FFFAI Biennial Convention Government assures industry friendly Regulations The 21st Biennial Convention of the Federation of Freight Forwarders Associations in India (FFFAI), which was held from June 14-16 in Delhi, concluded on a high note, with an assurance from the Ministry of Finance, Government of India that the ensuing new Regulations for Customs Brokers would address the concern of the industry. With the theme ‘Customs Broker: New Paradigm, New Opportunities, New League’, the Convention was attended by about 500 delegates from across India and foreign countries.

I

n view of the steady changes in the international trade scenario and changing rule and regulations, the 21st Biennial Convention was very crucial for thousands of customs house agents (now customs brokers) and freight forwarders in India. It is pertinent to mention that about 95 per cent of international trade is operated by customs brokers that involve both security as well as financial interests of the country. Accordingly, considering the fast-changing roles and responsibilities of customs house agents (CHAs), the Government of India made the changes in the Finance Bill-2013 by elevating CHAs to Customs Brokers in synce with international practice. In the meanwhile, the government has brought several rules like KYC, Self Assessment, AEO to regulate the CHA operations. The industry has been raising its voice expressing its concern over the impending threat pertaining to retention of the licenses of CHAs. Inaugurating the convention as Chief Guest, Sumeet Bose, Revenue Secretary, Government of India said, “Yes, it is a challenging time for all. However, we

16 i cargotalk i july 2013

are highly optimistic about growth with a targeted GDP growth of 6.5 per cent. And, to achieve the overall growth target of the country, customs brokers have to play a vital role, which they have been doing for years. I am assuring you the forthcoming new Customs Brokers’ Regulations will remove all your concerns, and it would be beneficiary for all.” He also appealed to Customs officials to be more responsive. “There should be exchange of ideas between customs officials and industry practitioners. We will take serious note on the discussions held at the FFFAI convention to take positive action,” he assured. The jam-packed inauguration function was also addressed by Shantanu Bhadkamkar, Chairman, FFFAI; Sandhya Baliga, Member (Legal & Judicial), Customs; Gautam Chatterjee, DG Shipping and George Zografos, Chairman, IFCBA. Shashikiran Shetty, Chairman, Awashya Group was conferred with Hall of Fame award at this function. In his speech, Bhadkamkar emphasised on skill development of the Customs

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Industry Associations Event Report

p IFCBA members at the FFFAI convention

Brokers (the new avatars) to survive in the changing scenario, owing to new rules and regulations and requirements. “As of now, we are focussed on day-to-day business related issues and to serve our customers. However, the need of the hour is to think about our own skill development and overall growth. We will have to embrace changes,” appealed the FFFAI Chairman. The business sessions of the convention witnessed huge participations by the delegates. The FFFAI members discussed both pressing issues as well as enhancement of knowledge. The business and knowledge

18 i cargotalk i july 2013

sessions were addressed by Bhadkamkar; Sankalpa Bhattacharjay, Director, KPMG India; Yashodha Parande, Member, Authority for Advance Rulling; Sobha Chary, Member (personnel & Vigilance); George Joseph, EC Member, FFFAI; Sandeep Bhatnagar, JS (Customs), CBEC; Blasé D’Souza, Director Materials, Ingram Micro India; Adil Malia, Group President-HR, Essar Group; Kurien Mathew, Advisor FFFAI and other industry practitioners and experts.

p Justice Nanavati

The convention also had one special panel discussion, conducted by FFCBA members including Jaime King, Michel Vallee, Carol West, Janice McBride and Federico Zuniga.

They spoke on Initiative in WCO, Global Security Concerns & Customs Laws, Global Review of Customs Brokers Regulation, PSCG and other initiatives.

The IFCBA has been representing the interests of the worlds’ customs brokers and their clients since 1990. Many of our member associations (like FFFAI in India) have been involved in similar activities within their own countries for nearly a century. The IFCBA has been a member of the WCO Private Sector Consultative Group since 2006 and its representatives have been dedicated participants in PSCG activities relating to the SAFE Framework of Standards, capacity building initiatives, and trade facilitation. The IFCBA believes that it is necessary to have close cooperation between the public and private sectors to achieve mutual benefits, including a balance between security and facilitation and their associated costs and benefits. Justice Girish Thakorlal Nanavati attended the concluding session of FFFAI Golden Jubilee Celebration as the Chief Guest. He urged for compliance of new regulations in the greater interest of the industry. He also appealed to the government to adopt industry-friendly regulations.

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Industry Associations Current Issues/Technology

Common Crisis Agents seek friendly policy

The writing on the wall is clear and loud. The future of thousands of cargo agents in India is at a stake. Cargo agents, especially the small and medium ones are worried about their survival because of several adversities. Apart from a long pending issue related to CASS (Cargo Account Settlement System), the agents are facing several other issues. In this first part of the article Cargotalk spoke to SL Sharma, Vice President, ACAAI, to know more about present challenges.

I

ndustry insiders say, for thousands of Indian cargo agents it would be a difficult task to meet CASS requirements in particular. Making payment for all airlines, to be credited by the agents at a time and by a single cheque, would prove to be a death nail for many of them. Is the CASS crisis inviting a chaos in the air cargo export import sector? Sharma, however, put the matter from a different perspective. “The Air Cargo Agents Association of India (ACAAI) is not against CASS as long as it is under the umbrella of Indian Air Cargo Programme (IACP),” clarified Sharma. IATA’s Cargo Account Settlement Systems (CASS) is designed to simplify the billing and settling of accounts between

airlines and freight forwarders. It operates through CASSlink, an advanced global web-enabled e-billing solution.

sales revenue processes, with a neutral settlement office. It will also enhance financial control and improved cash flow as the CASS rate of success in collecting funds is virtually 100 per cent.

At the end of 2012, CASS was utilised in 82 export operations, 10 import Different Scenario operations, 3 domestic in India operations, and one courier Indian air cargo industry operation, collectively serving SL Sharma is hitherto challenged by a over 500 airlines, GSSAs and Vice President, ACAAI multiple factors, and hence Ground Handling Companies completely unpredictable. The and settling a combined US$33 country’s present air cargo infrastructure is billion. CASS is aimed to provide two major not at per international standard. As a result advantages: it yields a two-fold solution as the air cargo agents in India have to depend it replaces airlines’ traditional paper based on a number of other factors beyond their invoicing and agents’ manual controlling of control, to get payment on time. those invoices. In addition, all will benefit from streamlined invoicing and collection of As a result, they seek adequate time to get the industry streamlined, for a successful implementation of CASS. It may be recalled that to implement CASS by addressing the agents’ concern, a Joint Council including Hans Infomatic has 6 airlines and 6 agents with IATA acting as launched its new software the secretariat was formed in the recent past. ‘E-Annex Ultra’ for

Hans launches E-Annex Ultra

customs broker and freight forwarders during the 21st Biennial FFFAI Convention. The software was inaugurated in the gracious presence of Sandeep Bhatnagar, Joint Secreatary Finance, Government of India, Shantanu Badkamkar, Chairman FFFAI and other distinguished guests. This new software allows customs brokers to prepare and file Shipping Bills and Bill of Entries online to Indian Customs and also takes care of preparation of all documents required for customs clearance. It also allows freight forwarders to conduct paperless transactions with airlines and their respective shippers as part of E-freight initiative. 20 i cargotalk i july 2013

Sharma stressed on development of physical infrastructure for air cargo industry in India, which according to him is the crucial issue. Sharma also pointed out EDI hassles at the execution level which hampers cargo traffic to and from India. “Still there are a number of papers required to clear a shipment. Our airports have also become very expensive now. As a result, we have huge transaction costs and dwell time as compared to other countries,” he highlighted. He also emphasised on fixed commission (5 per cent) for the freight forwarders. Other burning issues include commission on surcharges and service tax, for what ACAAI would continue the fight. www.cargotalk.in


Emerging Technology New Initiatives

New solutions for cargo handling and capacity building

Recently, NIIT Technologies has developed specialised solutions and platforms for airline and logistics industry, to enable airlines with a robust and flexible cargo handling system. While the platform, Cargo Operations System – Intelligent Solutions, automates and simplifies cargo handling process, Airport Operations Control Centres for AAI airports is likely to boost capacity-building exercise.

C

argo Operations System – Intelligent Solutions (COSYS-IS) is a warehouse management system specifically designed for cargo ground-handling agents and cargo carriers. It 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. Presently, NIIT has a strategic partnership with SATS (Singapore Airport Terminal Services) to offer COSYS-IS. In addition to COSYS-IS, in the last quarter of FY 2012-13, NIIT Technologies did a successful implementation of WOS (Warehouse Operating System), which is an integrated cargo management solution at the Cathay Pacific Cargo Terminal in Hong Kong. The terminal is specially designed for ‘Just-in-Time’ operation and facilitates hub transfer handling, reducing the waiting-time between connections. Commenting on the further plans regarding new initiatives Arvind Mehrotra, President, Asia Pacific & Middle East, NIIT Technologies said, “Our endeavour is not only to provide IT services to the clients, but a value-added business model. Hence, NIIT Technologies has opted for a valuedriven model which aims to offer business enhancement to its clients across air cargo and logistics industry. In future, our focus will be on passenger service systems, cargo service systems, catering, land transportation and logistics.” 22 i cargotalk i july 2013

NIIT Technologies has opted for a value-driven model which aims to offer business enhancement to its clients across air cargo and logistics industry.” Arvind Mehrotra

President, Asia Pacific & Middle East, NIIT Technologies

“Moreover, this domain has immense potential and we are continuously growing in this market. We have already started FY13-14 on a high note by signing Asia’s first multi-airport implementation contract of `344 crore with Airports Authority of India (AAI) to set up state-of-the-art Airport Operations Control Centres (AOCC) across 10 airports in India,” added Mehrotra. The AOCC will be implemented within the next 15 months at the airports in Chennai, Kolkata, Ahmedabad, Pune, Tiruchirapalli, Thiruvananthapuram, Calicut, Mangalore, Guwahati and Jaipur. At the metro airports of Chennai and Kolkata, a primary data centre and the disaster recovery data centre are also being established respectively. “The systems and their interfaces will help improve airport management by consolidating multiple sets of information and providing accurate real-time data from just one source. The project is a key initiative undertaken by Civil Aviation ministry towards modernisation of Indian airports to improve capacity utilisation. According to Mehrotra, with a 12 per cent revenue share, India is a significant market for NIIT Technologies where the company is working in various major industry segments. It has specialised service offerings which include: application outsourcingdevelopment, application migration, testing, business process outsourcing; managed services-infrastructure management, application support, asset-based, and system integration and packaged implementations. “All these services are offered across all our geographies, including India. In the last fiscal, we had secured good deals in the government sector,” shared Mehrotra. www.cargotalk.in


Trade Opportunity Export Import

India China Trade

Exporters ready to push the limit According to the Federation of Indian Export Organisations (FIEO), increasing market access to China is vital for a quantum jump in India’s exports. A total bilateral trade of US$ 100 billion between India and China by 2015, along with projected exports worth US$ 40 billion will narrow the trade deficit with China. n Ratan Kr Paul

A

true reflection of the exponential growth in bilateral trade of the two countries, from just US$ 7.6 billion in 2003 to US$ 66 billion last year; China is emerging as one of India’s largest trade partners. The two-way trade between India and China is expected to touch $100 billion by 2015, a 50.6 per cent higher than $66.4 billion recorded in 2012-13. Welcoming the recent statement of the Prime Minister of India on the economic cooperation with China, M Rafeeque Ahmed, President, FIEO said that increasing market access to China is vital as the country is endeavoring to change its export profile to China; from raw material to finished and value-added products. “Presently, market access is restricted for pharmaceutical, agro products and IT services. This should be looked into by China so as to provide an impetus to India’s exports in these areas. While bilateral trade of US$ 100 billion by 2015 is within the realm of reality, I would like India’s exports to touch US$ 40 billion by 2015 so as to bring trade,” he stressed.

We are aiming for double-digit growth in exports to keep trade deficits within manageable limit.” M Rafeeque Ahmed President, FIEO

24 i cargotalk i july 2013

The FIEO president also welcomed the proposal of Chinese investment in manufacturing sector, which will be a win-win situation for both the countries as China is losing its competitive edge in manufacturing, which will further accentuate with growing population. On the other hand, India will be benefited with technology transference and work-culture, and the move will help in increasing the

manufacturing share in country’s GDP, a basic objective of new Manufacturing Policy. Linking of India’s North East Region with Bangladesh, Myanmar, China and other South-East Asian regions will strengthen India’s economic linkage with these countries. “With growth in bilateral trade and India and China pursuing partnerships, business plans, and stronger ties with each other, these two Asian giants are expected to dominate world trade and economy in the coming years,” observed Ahmed. Commenting on the recent initiatives by FIEO regarding the strengthening of trade with China, Ajay Sahai, DG and CEO, FIEO informed CargoTalk that the Federation has been focussing on this important market, with frequent and large participation of Indian businessmen in important international exhibitions like Canton and SACTF (South Asian Countries Trade Fair) over the last few years. FIEO had organised four consecutive participations earlier in the SACTF, Kunming, which has now been upgraded to the 1st China South Asia Expo, Kunming scheduled in June 6-10, 2013. At this show, the exposure to MSME segment helped Indian exporters in their marketing effort as well as product development. The delegation comprised of around 90 Indian companies in 128 booths, exhibiting a wide range of products such as wellness products, jewellery, electronic items, textiles and www.cargotalk.in


Trade Opportunity Export Import

Highlights of Trade Data (Value in Rs Crore, Growth and Share in percentage)

Commodity

Apr-Mar 2011 Apr-Mar 2012(P) Apr-Jan 2012 Apr-Jan 2013(P)

%Growth %Share

LEATHER & MNFRS

17,817.78

22,947.68

19,298.19

21,680.05

12.34

1.65

1) Footwear 2) Leather & mfrs

8,149.63 9,668.15

10,085.90 12,861.78

8,539.79 10,758.40

8,851.45 12,828.60

3.65 19.24

0.67 0.98

184,419.51

224,762.11

183,904.07

189,687.01

3.14

14.45

757.51

998.27

828.64

953.59

15.08

0.07

140,431.24

189,593.39

153,865.79

189,016.31

22.84

14.4

87,958.52

117,123.32

93,850.49

120,925.31

28.85

9.21

226,803.28 128,422.27 1,359.24 53,941.75 73,121.29

278,082.12 170,719.28 1,694.98 68,838.17 100,186.12

227,009.90 139,536.33 1,410.53 56,152.03 81,973.77

248,016.88 148,006.29 1,694.58 66,533.93 79,777.78

9.25 6.07 20.14 18.49 -2.68

18.9 11.28 0.13 5.07 6.08

37,698.28 37,378.14 320.14

43,237.85 42,626.93 610.93

35,422.24 35,262.55 159.69

38,718.54 36,679.05 2,039.49

9.31 4.02 1,177.12

2.95 2.79 0.16

387.67

209.74

203.5

467.24

129.6

0.04

105,612.84 52,860.88 26,360.84 21,410.56 1,660.80 501.20 726.49 2,092.07

130,072.79 65,600.15 32,611.83 26,974.13 949.02 726.24 1,020.62 2,190.80

106,511.93 53,023.78 26,962.48 22,440.48 809.8 593.06 840.99 1,841.34

115,509.65 56,167.66 32,900.98 22,524.24 713.66 544.22 891.94 1,766.95

8.45 5.93 22.03 0.37 -11.87 -8.23 6.06 -4.04

8.8 4.28 2.51 1.72 0.05 0.04 0.07 0.13

GEMS & JEWELLERY SPORTS GOODS H) CHEMICALS & RELATED PRODUCTS 1) Basicchemls, Pharma & cosmetics ENGINEERING GOODS 01) Machinery a) Machine tools b) Machinery & Instruments c) Transport equipments ELECTRONIC GOODS 1) Electronics 2) Computer Software in physical form

Source: Ministry of Commerce

PROJECT GOODS TEXTILES 1) Readymade garments 2) Cotton, yarn, fabrics, made-ups etc 3) Manmade textiles & made-ups etc 4) Natural Silk textiles 5) Wool & woolen mfrs 6) Coir & coir mfrs 7) Jute mfrs

Indications for FY 2013-14

According to the FIEO Chief, the new financial year has started on a positive note and Indian exporters look forward to build on it. “We are aiming for double-digit growth in exports to keep trade deficits within manageable limit,” observed Ahmed. He further shared that that focus on emerging economies like Indonesia, Vietnam, Columbia, Saudi Arabia, South Africa and some other emerging countries would help in a quantum jump in exports.

At the present, half of the country’s exports are to Asian countries” Ajay Sahai

DG and CEO, FIEO

garments, woollens, processed food, gifts and promotional items, handicrafts, metal ware, kitchenware, home furnishings, leather footwear and wooden furniture. 26 i cargotalk i july 2013

“The rise in gold imports is a cause of concern, but the softening in gold prices is good news and will help in reducing imports value-wise. But there is a need to evaluate rising volume-wise gold imports,” he maintained. He however, cautioned that the export figures for May are indicative of the fact that the global recovery is still weak. The global growth has been uneven. “We have seen few green shoots in countries like USA and Japan, but the European area continues to be a cause of concern,” he pointed out. Even in

some large emerging economies like China, Brazil, Russia and South Africa, sluggish external demand and lack of investment are pulling down economy activity. It may be recalled that for FY 2012-13, FIEO had set an export target of US$ 350 billion. However, the exporters reached US$ 301 billion. For FY 2013-14, they have set a modest target of US$ 375 billion. “In the FY 2012-13, we Indian exporters face several challenges because of the overall slump in the international market, even in the Asian countries (0.4 per cent down compared to previous FY). At present, half of India’s exports are to Asian countries,” Sahai pointed out. He, however, was confident that the target set for the current FY is achievable due to recent innovations by Indian exporters and positive initiatives by the government, like new MDA scheme, FTA initiatives and exploring new markets. Sahai also emphasised on cost-competitiveness and efficient SCM to penetrate emerging markets like ASEAN (especially Indonesia) and BRICS countries. “E-commerce is another important segment that Indian exporters need to focus on,” he added. www.cargotalk.in


Cover Story

Photo Courtesy: Gateway Rail

Financial Year Review

Despite a sluggish 2012-13 in general, many of cargo and logistics companies in India witnessed reasonable growth. They are upbeat about the growth prospect in the current financial year, though the global economic scenario looking gloomy. In this Annual Issue that sums up the previous financial year and unveils market trends for the current year, Cargotalk spoke to some industry practitioners who believe in innovation and achievement during tough times. n Ratan Kr Paul 28 i cargotalk i july 2013

www.cargotalk.in


Horizon Upturn through innovations

D

uring 2012, the global economic growth weakened further. A growing number of developed economies have fallen into recession. The global economic growth has slowed from 3.9 per cent in 2011 to 3.2 percent in 2012. IMF has put the projections of growth of world output at 3.5 per cent in 2013. The advanced economies are expected to grow at 1.4 per cent, while the emerging and developing economies are to grow at the rate of 5.5 per cent in 2013. The volume of trade www.cargotalk.in

growth in 2013 is forecasted to be at 4.5 per cent, still below the long term annual average of 5.4 per cent growth for the last 20 years. According to the Ministry of Commerce, Government of India’s analysis, India is well-integrated with the global economy. The country’s exports and imports amount to approximately 43 per cent of Gross Domestic Product (GDP). The slow growth in different countries and reduced demand are also likely to determine the markets for its exports.

All in all, it was a satisfying year in view of various adversities faced, both on external and domestic fronts� Anil Gupta CMD, Concor

july 2013 i cargotalk i 29


Cover Story Financial Year Review

However, despite the global slowdown in both GDP growth and trade volumes, India recorded one of the highest export growths among the major trading nations of the world in 2011. Last year, though, had witnessed a considerable slowdown. As per WTO’s International Trade Statistics (2012) in merchandise trade, WTO ranked India as the 19th largest merchandise exporter in the world, with a share of 1.7 per cent of the global trade and the 12th largest importer with a share of 2.5 per cent of global imports in 2011. During April- March 2012-13, the cumulative value of exports was US$ 301 billion, as compared to US$ 305 billion for April-March, 2011-12.

FY 2012-13 & the Trend Setters

In terms of volumes, Container Corporation of India (Concor) faced a moderate decline and ended up handling a throughput of 2.59 million TEUs as against 2.60 million TEUs handled during FY 2011-12. However, in terms of tonnages carried, there was an increase of over 8.2 per cent, up from 28.29 MT (million tonnes) carried in 2011-12 to 30.62 MT carried in 2012-13. This was against 6.45 per cent increase recorded in overall containerised cargo carried by rail by all CTOs combined, which went up from 38.58 MT in 2011-12 to 41.07 MT in 201213. “Keeping in tune with increased tonnage carried, our operating turnover was up by 8.5 per cent, and PAT up by 7.08 per cent. All in all, it was a satisfying year in view of various adversities faced, both on external and domestic fronts,” said Anil Gupta, CMD, Concor. “Despite the gloomy economy of EU & USA, SDV SA managed to sustain a good profitability growth in Indian and as well as in South Asian markets like Pakistan

SDV SA managed to sustain a good profitability growth in Indian and as well as in South Asian markets” Thomas Duplan CEO, SDV International Logistics

30 i cargotalk i july 2013

and Bangladesh. Being a strong Europeanoriented IFF, it was quite hard for us to sustain the progression as European Union is the major trading partner of India, and in addition USA also has a major impact on this market. As a result, to cover up we have diversified our business to other markets like China or Africa which are still a growing economy and have lots of potential,” informed Thomas Duplan, CEO, SDV International Logistics. As a leading freight forwarder in Africa, SDV will continue its prime focus on the Africa lane, having even set up a separate team. Recently, SDV has also implemented a new vertical for fashion and luxury goods, which is a core business for the company (thanks to its French roots). SDV is already largely involved in warehousing and distribution activities for top luxury brands. According to Milind Shahane, CEO, DIESL; the FY 12-13 witnessed inflation, increase in fuel and raw material costs, which impacted logistics costs, with freight and transportation rates seeing many fluctuations. Moreover, there has been some level of business uncertainty which affected profit margins with respect to few lines of business like warehousing. “But we adopted several strategies to counter this and made some tough decisions. Vendor consolidation, manpower rationalisation, warehouse and office consolidation and better negotiated rentals on larger spaces helped us in managing expenses effectively. Plus our asset-light model ensured that we do not face heavy setbacks; and our capital was not choked. These strategies helped us to keep our head above water and move steadily, even in the uncertain market scenario,” said Shahane. In FY 2012-13, DIESL expanded its services towards some previously untapped markets like solar power projects, bulk, and engineering; as these verticals have a huge demand for all kinds of logistics services, like air and ocean freight consolidation, customs clearance, and documentation, warehousing, transportation and valueadded services. “DIESL provides all these services under one roof. We have also implemented CRM (Customer Relationship Management) at DIESL which allows us to manage customers efficiently. It provides a clear picture of the market pulse as well as our business. Customer accounts are seamless managed across services and locations, plus billing/outstanding data can

Anil Gupta CMD, Concor

Thomas Duplan CEO, SDV International Logistics

Milind Shahane CEO, DIESL

UnniKrishnan Nair Chairman, LCL Logistix

www.cargotalk.in


be tracked better. Our single focus in the last one year has been to leverage on DIESL’s IT investments,” Shahane pointed out.

Srinivas Sattiraju CEO- Delex

NE Daniel Director, JTB Jupiter Express Services

For LCL Logistix (India), FY2012-13 was a mixed bag in terms of earnings and growth. “Although our company managed to finish its annual capital expenditure cycle in a timely manner, the streams of revenue is expected to hit the books in FY2013-14. During the year, the company intensively strategised its major stream of logistic value chain, integrating them with overseas operations/presence in order to generate a cumulative synergy among them,” said UnniKrishnan Nair, Chairman, LCL Logistix. The company’s strategy is based on its corporate vision- aiming towards ‘Globally Yours’, providing end-to-end logistic and supply-chain solution. During the year, LCL Logistix ventured into a new business domain which would be a major service offering in its integrated portfolio. On the other hand, 2012-13 proved to be an uneventful year for Delex. “Our revenue grew higher, but rapid expansion of network has consumed a good portion of resources. Frequent increases in diesel and ATF rates have also contributed their bit,” said Srinivas Sattiraju, CEO- Delex. Asked about their achievements, he maintained that the tie-up with SpiceJet as Cargo GSA & GHA for India, winning a major share of business for surface cargo movement from the world’s largest computer company and chosen by one of the world’s largest parcel services’ company as their delivery partner in India were some of the key achievements for the year 2012-13.

Anil Khanna MD, Blue Dart Express

Diljeet Singh Chief Sales & Marketing Officer, GATI-KWE

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“We did achieve positive results visà-vis the previous FY. We roped in a good number of customers and a good CRM ratio was achieved, whereby the number of imports shipments of our overseas increased as well. As on the courier consolidation front, we did add on airline options, which increased sectors and cost options to our customers. FY 2012-13 could be termed as very satisfactory year for us. But there is much more scope to perform in the coming year,” said NE Daniel, Director, JTB Jupiter Express Services. Anil Khanna, MD, Blue Dart Express observed that given the slowdown, any impact to the top-line business affects the bottom line as the industry has a high fixedcost model. “Our industry, especially the air

Our asset-light model ensured that we do not face heavy setbacks; and our capital was not choked” Milind Shahane CEO, DIESL

express segment, is the bellwether for the economic activity in the country. If the GDP is about 8 per cent, express industry will grow anywhere between 16-18 per cent. But, when it falls below 7 per cent, our growth will also slow down due the relative factor,” he pointed out. So, with the GDP registering an average growth of 5.3 per cent last year, it impacted the growth of express industry. “But, Blue Dart grew by 16 per cent last year. One of the reasons for this is that we introduced a lot of innovative products and had a sector-specific and geographical focus,” he unveiled. He also maintained that despite challenging times, the company continued investing in service and product enhancements to increase its reach. “We have been at the helm of many innovations that have benefitted our end-customers and hence will continue likewise in the future,” he asserted. Some of Blue Dart’s initiatives include – state-of-the-art technology, Onthe-Move (OTM) and Weight Dimension Labelling (WDL) machines, a robust infrastructure (with an enviable fleet of aircraft and vehicles), focus on Tier-II & III towns, SMEs (Small & Medium Enterprises), product innovation, reach expansion, transit time improvements with Smart Truck (an ‘intelligent’ pick and delivery vehicle). “Currently, a key project underway is Radio-frequency Identification (RFID) which will help ensure speed, safety and accuracy,” Khanna added. Diljeet Singh - Chief Sales & Marketing Officer, GATI-KWE shared that the year 2012-13 was as per industry trends, but it was below the company’s expectation. “Slow growth rate of economy has impacted us and growth was around 12 per cent,” he said. He also maintained that the Gati-Kintetsu Rail solution for bulk transportation grew at double the market july 2013 i cargotalk i 31


Cover Story Financial Year Review

Lalit Bharadwaj Manager – Sales & Marketing, GNI Express

Abhijeet Agarwal Director Aarna Projects

at 25 per cent and B2C home delivery grew by 40 per cent. “We are focusing on supply chain solutions as a new revenue stream, providing ground-breaking solutions including demand planning, inventory ownership and management and warehouse operations,” he added. On the operations side, Gati-KWE witnessed escalation of costs due to inflationary pressures, fuel price increases and the ever increasing cost of labour and skilled resources. “There were big challenges we have faced in FY 12, as this year was the ‘logistic year of the decade’ and every small and medium courier companies was focussing on cargo movement. As we have complete focus on cargo movement, we got lots of big deals and responses. For us, this year was the golden year, with respect to strengthening the company in cargo business,” added Lalit Bharadwaj, Manager – Sales & Marketing, GNI Express. “I would say FY 12-13 was a game changer for our company. We envisaged a paradigm shift in the way companies perceive supply-chain as an integral part of their operations. With cut-throat competition in every market segment, companies cannot afford to have any bottlenecks in their supply chain. Companies have increasingly begun to view their logistics centres as profit-drivers to generate more revenues as opposed to a cost centre. To help them achieve their goal, we have set out to create a world-class warehouse that will set a new benchmark in the warehousing industry,” stressed Abhijeet Agarwal, Director, Aarna Projects. Apart from state-of-the art warehousing devices, the company also introduced a number of cold storage units and ambient warehouses in West Bengal. “This modern warehouse, however, is our 32 i cargotalk i july 2013

Ajay Bamel CEO, Transocean Express Logistics

maiden project in Kolkata – a stepping stone to bigger things to come in the near future” he informed. “FY 12-13 has been very good for our organisation as we have been able to grow our business in 3PL and we have signed a long-term contract with a premium retail brand. We will be handling their distribution centre in Mumbai to cater their stores across West India. We see this product giving us more business share in FY 13-14,” said Ajay Bamel, CEO, Transocean Express Logistics. GS Chawla, MD, Ocean King Shipping Services, however, was appeared to be disappointed about the performance. “It was a tough year for our company. As the market struggled on competitive edges to provide the best possible services; at the same time, it cut all possible margins and barely walked the rope in terms of balancing profits and loss. So the risk attached was high, though the benefit was low,’ he pointed out.

On the courier consolidation front, we did add on airline options, which increased sectors and cost options to our customers. FY 2012-13 could be termed as very satisfactory year for us” NE Daniel Director, JTB Jupiter Express Services

GS Chawla MD Ocean King Shipping Services

In his opinion, shifting of the company’s operational consolidation hub from ICD PPG to ICD TKD was a significant move. “We believe we have brought certain real level improvements in the overall handling of LCL trade from New Delhi. ICD TKD, being a rail-head on its own, plus a facility of major container operator, and cost reduction in addition to better service; is the USP here,” he said. According to MM Aslam, Managing Director, Airogo Logistics; in spite of global economy slowdown the company’s performance was quite satisfactory and it was able do quite better in its import sectors. “FY 12-13 was quite difficult as the entire industry was struggling. However, we have been able to sustain our sales and profits,” informed Suraj Agrawal, Director, Monopoly Carriers and Cargo. Venkata Reddy, Chief Executive Officer, Menzies Aviation Bobba (Bengaluru) shared that the company witnessed an improvement during fourth quarter of 2012-13, setting a positive tone for the coming year. “We have implemented Phase-I of Cold Zone project by installing temperature-controlled chambers exclusive for pharma products. We are implementing Phase-II of the project in 2013-14. We have also seen a smooth transition to 24x7 customs clearance and processing,” he added. “It was a robust year for us and we have opened our branch office in South India (Tuticorin) which has produced better results than we expected. Moreover, general exports have picked up and we, though specialising in custom clearance and export by air and sea, have included imports in www.cargotalk.in


M.M.Aslam Managing Director Airogo Logistics

Suraj Agrawal Director, Monopoly Carriers and Cargo

our portfolio. We were receiving constant queries wherein our customers wanted us to handle their import shipments as well. Being in IATA, CHA and NVOCC, we yearned to be one-stop solution for all kind of logistic needs,” maintained Vineet Chadha, Director, Vicsun Carriers. For Yashpal Sharma, Director, Skyways Group; the year 2012-13 has been a consolidation year. Skyways opened two new offices in India and one in Germany. “The year saw us expand our product base and we also set the stage for launching our 3PL vertical,” he highlighted. In his opinion, the year that went by required extra efforts to sustain and grow, as there was considerable slowdown in global business and the sentiment was highly negative. “I am glad that Skyways continued to grow in this challenging year too,” he added. Ashish Asaf, MD, SA Consultants & Forwarders observed that the year started with challenges but as it progressed; better results came at the end. “In FY-2012, our company reported a top-line growth of about 20 per cent over the previous year. We have strengthened our Mumbai office and now concentrating on southern India as well.” “The market was good for us because of our strong relationship with our customers and the quality services offered to them. Despite challenges, we grew by 14 per cent in the previous FY, as compared to FY 2011-12,” informed KS Dorai, MD, Renown Forwarders. In Gurjeet Bedi’s opinion, there is a market for innovative players even during tough times. “You have to expand your horizon to find new markets with new

www.cargotalk.in

Venkata Reddy Chief Executive Officer, Menzies Aviation Bobba (B’lore)

Vineet Chadha Director Viksun Carriers

products and services,” the Director of Scan Forwarders emphasised. The company has witnessed 20 per cent growth in FY 2012-13. “The year was very good for our company. Though our total volume was reduced by 20 percent, we have increased our revenue by more than 22 per cent. The achievement was because of our new customer base,” said Dileep T Abraham, Sr Vice President, AV Thomas & Co. Monish Darda – Co-founder & CTO, Icertis, also informed that the FY 2012-13 has been an enriching and successful year of growth and customer addition at Icertis. “We have acquired 10 new customers across our portfolio of offerings and strengthened our India operations with more than 200 professionals. The customer additions are from various industry verticals, which are successfully using Icertis’ products to solve their contracting, supply chain execution, and ERP challenges,” he said.

Yashpal Sharma Director Skyways Group

Ashish Asaf MD, SA Consultants & Forwarders

FY 12-13 has been very good for our organisation as we have been able to grow our business in 3PL and we have signed a long-term contract with a premium retail brand” Ajay Bamel CEO, Transocean Express Logistics

KS Dorai MD, Renown Forwarders

july 2013 i cargotalk i 33


Cover Story Financial Year Review

The technology service provider launched two products, Icertis Public Transport Management and Icertis Transport Management this year.

Gurjeet Bedi Director Scan Forwarders

Another leading logistics technology services provider, Hans Infomatic, conveyed the same sentiment. According to Parvinder Singh, MD, “FY 2012-13 was very eventful for us. During this period, Hans became an IATA Strategic Partner and a member of IATA’s Cargo XML Task Force (CXMLTF). The mission of CXMLTF is to migrate cargo industry’s EDI messaging platform from old flat file based to the widely used and acceptable XML standards.” Hans also launched a portfolio of solutions for SCM, which includes Warehouse Management System and Transport Management System.

Projections for FY 2013-14

Dileep T Abraham Sr Vice President AV Thomas & Co

Monish Darda Co-founder & CTO Icertis

Parvinder Singh MD Hans Infomatic

34 i cargotalk i july 2013

In this financial year, Concor expects an overall growth of nine to 10 per cent in both volumes and tonnages, primarily on the hope that Indian exports will grow as the new markets develop. “What we are afraid is a repeat year of import-export imbalances which will dash our hopes. Frankly, the position is not likely to improve dramatically this year, unless there is an economic recovery. The industry will definitely recover in sync with the economy,” Gupta voiced. In Duplan’s opinion, freight forwarding industry has historically been the cornerstone of global trade. With changing trade dynamics at both global and regional levels, the shipping sector too has been witnessing significant transformation. “Driven by increasing consumption, manufacturing, and relatively better macroeconomic scenario, the intra-Asia shipping market appears more promising

Though our total volume was reduced by 20 percent, we have increased our revenue by more than 22 per cent” Dileep T Abraham Sr Vice President, AV Thomas & Co.

in terms of growth opportunities than its global counterparts. The share of intra-Asia region has increased up to 21 per cent within a short period. Africa has also seen a similar trend. In my opinion, these two sectors will be the centre attraction for all the freight forwarders and carriers in South Asia,” he elaborated. “With the country emerging as an important sourcing hub for some industries, domestic consumption will generate good GDP growth, and also growth in sectors like pharma, automotive, consumer electronics, banking, financial services and e-commerce,” observed Khanna. According to Nair, the present trend in the market is the emergence of slow and steady industry consolidation by way of small/big ticket mergers & acquisitions and takeovers. “The logistics sector in India is undergoing a radical change where the players pursuing new business avenues (capturing the super critical logistic value chains) thereby consolidating themselves – are stepping towards integration and diversification. The roadmap for LCL Logistix for FY2013-14 is in line with the growth rates of the overall logistics industry and the broad economic fundamentals of the country,” he stated. Taking cue from Nair, Sattiraju observed that the new financial year has begun well. “We are will be expanding our business presence in both air cargo and surface cargo. A few new, strategic locations will be added to our network,” he said. The company is exploring cold chain logistics space. “We already have some presence in CCL space and our strategy for 13-14 should give us firm grounding for expansion of our capabilities in cold chain area,” he maintained. “My expectation from the FY 13-14 is on the positive side, because the global economy as well as the Indian economy is improving. While last year, the GDP growth went down to as much as 5.2 per cent, the estimate this year is around 6.2 per cent. That one per cent growth rate translates into huge growth for the logistics industry. Secondly, as the business sentiments improve, there will more expansion in terms of projects which companies will take up, some which had been put on hold the whole of last year,” Sahane concluded with a optimistic note. 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 MAY 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 63 64 65 66 67

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

36 i cargotalk i july 2013

Export With- Out Peri- shable (MTs) 1169 991 812 1052 982 601 367 527 486 542 396 366 369 416 440 332 374 383 304 382 132 86 310 146 252 244 138 200 98 131 230 143 141 135 128 85 91 71 45 0 72 94 96 36 71 53 49 37 24 1 35 21 7 16 15 15 11 0 12 0 12 10 0 3 2 0 0 14788 13752 7.54%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs) 249 1111 39 279 95 122 31 25 157 4 0 22 31 34 53 3 11 14 2 10 8 1 47 1 118 11 15 3 4 15 0 2 7 0 0 0 29 0 9 0 18 0 0 0 3 22 0 20 0 32 0 0 0 0 0 0 0 3 1 0 0 0 0 0 0 0 0 2661 2691 -1.11%

1418 2103 851 1331 1077 723 398 551 643 546 397 388 400 450 494 335 385 397 306 392 140 87 356 147 370 256 152 203 102 147 230 145 148 135 129 85 120 71 54 0 90 94 96 36 75 75 50 56 24 33 35 21 7 16 15 15 11 3 14 0 12 10 0 3 2 0 0 17449 16443 6.12%

Import (MTs) 1745 518 1754 1221 742 715 1006 723 364 428 549 444 348 263 202 346 189 161 205 105 335 326 44 248 20 96 166 64 161 99 0 57 25 38 35 51 1 44 60 106 15 5 0 42 2 1 19 1 18 1 0 0 12 0 0 0 3 11 0 12 1 0 7 0 0 0 0 14155 14517 -2.49%

Total Cargo (MTs) 3163 2620 2605 2552 1819 1437 1404 1275 1006 973 946 833 748 713 696 681 574 558 511 497 474 413 401 395 390 352 318 267 263 246 230 202 173 173 164 136 121 115 114 106 105 99 96 78 76 76 68 57 42 35 35 21 19 16 15 15 14 14 14 12 12 10 7 3 2 0 0 31604 30959 2.08%

% of Total 10.01% 8.29% 8.24% 8.08% 5.76% 4.55% 4.44% 4.03% 3.18% 3.08% 2.99% 2.63% 2.37% 2.26% 2.20% 2.16% 1.82% 1.77% 1.62% 1.57% 1.50% 1.31% 1.27% 1.25% 1.23% 1.11% 1.01% 0.84% 0.83% 0.78% 0.73% 0.64% 0.55% 0.55% 0.52% 0.43% 0.38% 0.36% 0.36% 0.33% 0.33% 0.31% 0.30% 0.25% 0.24% 0.24% 0.22% 0.18% 0.13% 0.11% 0.11% 0.07% 0.06% 0.05% 0.05% 0.05% 0.04% 0.04% 0.04% 0.04% 0.04% 0.03% 0.02% 0.01% 0.01% 0.00% 0.00% 100.00%

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mUMBAI csi aIRPORT

eXPORT/iMPORT cARGO tONNAGE hANDLED IN MAY 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

Jet Airways Emirates Air India Lufthansa Cathay Pacific British Airways Singapore Airlines Etihad Airways Qatar Airways Turkish Airlines Saudi Arabian Airlines Swiss Intl. Airlines Air France Federal Express Ethopian Airlines Malaysian Airlines Virgin Atlantic Thai Airways UPS Martin Air Delta/KLM Airlines Kenya Airways South African Airlines Kuwait Airways Fin Air Air Cargo Arologic C/O Lufthansa Gulf Air Air Mauritius Air Arabia Korean Air EL-AL Airlines NorthWest Airlines Oman Air United/Continental Airlines Blue Dart Indigo Air Srilankan Air Yemenia Airways Pakistan intl Airlines Bangkok Airways Iran Air Royal Jordanian Egypt Air Air China Royal Joradian Qantas Austrian Air Baharin Airlines Kingfisher Airlines Island Aviation (Maladvian) Charters Others

TOTAL %Variation over April 2013 %Variation over May 2012

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Export General

Export Perishable

Total Import Export

Total Exp+Imp

1076.96 1236.83 960.11 694.55 983.45 531.86 615.29 660.32 441.94 534.20 638.73 358.84 362.64 411.10 576.35 382.25 170.40 210.12 132.14 0.00 120.78 315.21 246.60 105.62 195.36 0.00 58.15 169.30 52.96 68.53 68.65 0.00 44.47 45.30 79.70 47.69 57.86 58.17 21.16 26.91 21.74 13.31 10.31 8.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 72.88

1419.82 2218.11 1308.12 763.36 39.81 872.60 219.86 77.21 459.34 78.54 168.82 107.07 134.63 59.99 46.56 42.48 199.25 53.91 0.00 0.00 166.81 3.37 6.78 108.90 4.68 0.00 137.06 3.71 99.53 5.18 5.06 138.39 68.75 1.02 0.00 35.85 5.88 9.07 24.16 2.95 5.64 0.00 0.00 0.00 2.38 0.03 0.00 0.00 0.00 0.00 0.00 36.04

2496.78 3454.94 2268.23 1457.91 1023.26 1404.46 835.15 737.53 901.28 612.74 807.55 465.91 497.27 471.09 622.91 424.73 369.65 264.03 132.14 0.00 287.60 318.58 253.38 214.51 200.04 0.00 195.21 173.01 152.49 73.70 73.71 138.39 113.22 46.32 79.70 83.54 63.74 67.24 45.32 29.86 27.38 13.31 10.31 8.47 2.38 0.03 0.00 0.00 0.00 0.00 0.00 108.92

2145.78 1042.60 872.27 1617.35 1231.42 646.36 988.40 679.48 454.28 295.96 88.99 373.42 191.58 212.41 6.82 194.56 240.99 328.57 327.32 456.88 156.22 4.31 15.92 5.37 0.00 199.20 1.14 3.10 1.46 79.71 79.04 0.00 2.24 58.28 12.19 1.34 10.92 0.47 4.96 2.47 0.52 0.75 0.71 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 391.28

4642.56 4497.55 3140.51 3075.27 2254.67 2050.82 1823.55 1417.00 1355.56 908.70 896.54 839.33 688.86 683.50 629.73 619.29 610.65 592.60 459.46 456.88 443.82 322.89 269.30 219.88 200.04 199.20 196.36 176.11 153.96 153.41 152.75 138.39 115.46 104.60 91.89 84.88 74.66 67.72 50.27 32.33 27.89 14.06 11.02 8.77 2.38 0.03 0.00 0.00 0.00 0.00 0.00 500.20

12887.22 (-) 5.84 (-) 7.19

9140.72 13.71 10.35

13427.33 (-) 9.07 (-) 7.95

35455.28 (-) 2.84 (-) 3.54

22027.94 1.39 (-) 0.63

july 2013 i cargotalk i 37


Cargo Performance Airports in India

Traffic statistics D omestic F reight

S. No. Airport

March 2013

Freight (in Tonnes)

For the Month For the period April to March March 2012

% Change 2012-13

2011-12

% Change

(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11

Chennai Kolkata* Ahmedabad Goa Trivandrum Guwahati Calicut Jaipur Srinagar Amritsar Portblair Total

7161 6803 2966 199 131 435 38 233 197 5 221 18389

7415 6872 3204 355 139 437 20 626 182 7 247 19504

-3.4 -1.0 -7.4 -43.9 -5.8 -0.5 90.0 -62.8 8.2 -28.6 -10.5 -5.7

78774 80673 35345 2573 1490 5919 356 6488 3027 88 2206 216939

84730 81703 19964 4016 1449 7761 191 6475 2361 89 2386 211125

-7.0 -1.3 77.0 -35.9 2.8 -23.7 86.4 0.2 28.2 -1.1 -7.5 2.8

15561 15647 7140 2079 832 372 41631

17045 16580 7132 2959 774 296 44786

-8.7 -5.6 0.1 -29.7 7.5 25.7 -7.0

188176 182422 82546 32741 8873 4800 499558

200525 190288 83256 34472 8533 4588 521662

-6.2 -4.1 -0.9 -5.0 4.0 4.6 -4.2

1627 217 481 302 185 0 24 213 108 132 90 0 3379

2421 219 614 260 190 0 25 304 18 154 78 0 4283

-32.8 -0.9 -21.7 16.2 -2.6 - -4.0 -29.9 500.0 -14.3 15.4 - -21.1

19861 2290 6096 2251 1644 0 292 2538 394 1238 1050 0 37654

24134 3690 7281 3425 1046 0 267 3042 356 1672 842 0 45755

-17.7 -37.9 -16.3 -34.3 57.2 - 9.4 -16.6 10.7 -26.0 24.7 - -17.7

332 393 128 565 209 291 163 174 75 45 52 0 12 0 22 0 27 2488

195 345 125 484 272 410 238 122 84 124 92 0 62 1 28 2 26 2610

70.3 13.9 2.4 16.7 -23.2 -29.0 -31.5 42.6 -10.7 -63.7 -43.5 - -80.6 -100.0 -21.4 -100.0 3.8 -4.7

3324 4734 1488 5816 2346 3964 1970 1530 965 725 1136 0 303 16 309 18 346 28990

2286 4734 1265 6889 2870 4984 2282 1650 890 1227 1336 0 738 26 343 41 497 32058

45.4 0.0 17.6 -15.6 -18.3 -20.5 -13.7 -7.3 8.4 -40.9 -15.0 - -58.9 -38.5 -9.9 -56.1 -30.4 -9.6

93 65980

121 71304

-23.1 -7.5

1258 784399

1491 812091

-15 6 -3.4

(B) 6 JV International Airports 12 13 14 15 16 17

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

(C) 12 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29

Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total

(D) 17 Domestic Airports 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Bhubaneswar Indore Jammu Agartala Raipur Imphal Vadodara Ranchi Bhopal Aurangabad Leh Udaipur Rajkot Tirupati Dibrugarh Jodhpur Silchar Total

(E) Other Airports Grand Total (A+B+C+D+E) * Estimated 38 i cargotalk i july 2013

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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 March

March 2013

March 2012

% Change 2012-13

2011-12

% Change

(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11

Chennai Kolkata* Ahmedabad Goa Thiruvananthapuram Guwahati Calicut Jaipur Srinagar Amritsar Port Blair Total

20820 3918 1245 233 2292 76 2606 25 0 124 0 31339

22885 3562 986 275 4555 0 2775 29 0 723 0 35790

-9.0 10.0 26.3 -15.3 -49.7 - -6.1 -13.8 - -82.8 - -12.4

237105 42818 12830 2379 38043 94 27256 184 0 1424 0 362133

272461 43890 11793 2154 46753 0 25400 235 0 6998 0 409684

-13.0 -2.4 8.8 10.4 -18.6 - 7.3 -21.7 - -79.7 - -11.6

34605 41245 14260 4707 3798 40 98655

32720 40973 13108 3702 2551 45 93099

5.8 0.7 8.8 27.1 48.9 -11.1 6.0

358135 452741 144002 46495 38033 406 1039812

367830 467182 141693 43627 34173 388 1054893

-2.6 -3.1 1.6 6.6 11.3 4.6 -1.4

0 80 65 0 0 390 0 0 0 0 0 0 535

0 97 49 0 0 179 0 0 0 0 0 0 325

- -17.5 32.7 - - 117.9 - - - - - - 64.6

0 1156 583 0 0 2899 0 0 7 0 0 0 4645

0 839 467 0 0 2012 0 0 1 0 0 0 3319

- 37.8 24.8 - - 44.1 - - 600.0 - - - 40.0

0 0 130529

0 0 129214

- - 1.0

202 0 1406792

0 0 1467896

(B) 6 JV International Airports 12 13 14 15 16 17

Delhi (DIAL) Mumbai (MIAL) Bengaluru (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total

(C) 12 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29

Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total

(D) (E)

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

-4.2

* Estimated

AAI will create capacity despite present slowdown in traffic

C

ommenting on the sluggish air cargo traffic figures in 2012-13 for both domestic and international operation at Indian airports, DP Singh, ED (Consultancy & Coordination and Corporate Planning & Management Services) maintained that these showed the impact of overall economic slowdown. In this financial year, international and domestic cargo traffic decreased by 4.2 and 3.4 per cent respectively. About the growth in 2013-14, he said, “If we analyse the present trends, we can see another

40 i cargotalk i july 2013

year of negative results. However, I am confident that our airports will be able to give the required push to the figure as soon the market improves.” Meanwhile, the AAI has chalked out several plans to develop the airport infrastructure across the country, including air cargo infrastructure. “AAI will continue its infrastructure

DP Singh

initiatives, irrespective of present market scenario. Already the Ministry of Civil Aviation has given in-principle approval to 15 more new airports across the country. In addition, site clearance has been given for five more airports,” he pointed out. These airports will be built jointly by AAI and private players.

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Cargo Performance Domestic & International Airlines

Traffic statistics FY 2012-13

A I R L I N E S W I S E I N T E R N AT I O N A L F R E I G H T Q uarter 1 Airline

Freight (in tonnes)

Emirates......................................53035 Jet Airways.................................39453 Cathay Pacific Airways..............25472 Lufthansa....................................24937 Singapore Airlines......................22476 Qatar Airways.............................18729 Ethiad Airways...........................14766 British Airways...........................14687 Air India.....................................14528 Thai Int’l Airways......................13254 Saudi Arabian Airlines.................9457 Federal Express............................9210 Malaysian Airlines........................7488 Air France.....................................6647 Swiss Airways..............................5261 Aerologic Freighter......................5172 Srilankan Airlines.........................4524 Turkish Airlines............................4397 Martin Air . ..................................4184 Kuwait Airways............................3947 Ethopian Airlines..........................3405 Air Arabia.....................................3199 Uzbekistan Airways......................3084 Korean Airlines............................2543 Oman Air......................................2484 Gulf Air........................................2380 Air China......................................2272 Hong Kong Air.............................2247 KLM Royal Dutch . .....................2062 United Parcel Services..................1781 Virgin Atlantic . ...........................1645 Dragon Air....................................1615 Nordic Global Airlines.................1585 Finn Air........................................1333 Expo Air Cargo.............................1287 United Airlines.............................1198 Delta Airlines................................1194 Air Asia........................................1190 Kenya Airways.............................1171 China Airlines...............................1074 Japan Airlines...............................1073 Indigo Airlines..............................1066

Airline

Q uarter 2 Freight (in tonnes)

Air Mauritius................................1028 China Eastern Airlines..................1017 Aeroflot...........................................978 Austrian Airlines............................960 Phillipines Airlines.........................793 Silk Air...........................................718 South African Airways...................709 Baharain Air ..................................701 Kalitta Air . ....................................666 Biman Bangladesh..........................513 Tiger Airways.................................490 Ariana Afghan................................484 El-Al-Isreal Airlines.......................458 Mahan Air.......................................348 Kam Air..........................................319 Eva Air Cargo.................................308 RAK Airways.................................302 Bankok Airways.............................289 Asiana Airlines...............................267 China Southern...............................237 Safi Airways...................................225 Aerosvit..........................................214 Pakistan Int’l Airlines . ..................207 Qantas Airways..............................184 Yemen Airways..............................158 Egypt Air........................................158 Fly Dubai........................................145 Iran Air...........................................135 Thai Air Asia..................................117 Jet Lite . .........................................109 British Midland Airways..................98 Air Astana.........................................95 Turkmenistan Airlines......................76 Royal Jordanian................................74 Spicejet.............................................55 Kingfisher Airlines...........................29 Maldivian.........................................26 Druk Air............................................13 Mihin Lanka.......................................8 Other Non-Schd Operators.........11576 Total.......................................367799

Airline

Freight (in tonnes)

Emirates......................................57038 Jet Airways.................................36332 Cathay Pacific Airways..............24491 Singapore Airlines......................23967 Lufthansa....................................22811 Qatar Airways.............................17925 British Airways...........................15037 Thai Int’l Airways......................13657 Ethiad Airways...........................13647 Air India.....................................12857 Federal Express............................8761 Saudi Arabian Airlines.................8517 Malaysian Airlines........................7593 Air France.....................................5453 Srilankan Airlines.........................5440 Aerologic Freighter......................4956 Martin Air . ..................................4905 Swiss Airways..............................4151 Air Arabia.....................................4107 Turkish Airlines............................3897 Ethopian Airlines..........................3302 Kuwait Airways............................3198 Uzbekistan Airways......................3058 Air China......................................2336 Gulf Air .......................................2267 United Parcel Services..................2003 KLM Royal Dutch . .....................1995 Hong Kong Air.............................1994 Oman Air......................................1947 Kallita Air.....................................1907 Virgin Atlantic . ...........................1810 Nordic Global Airlines.................1718 Dragon Air....................................1714 Korean Airlines............................1583 Finn Air........................................1543 Kenya Airways.............................1406 Indigo Airlines..............................1227 Air Asia........................................1127 United Airlines.............................1113 South African Airways.................1014 Air Mauritius................................1002 Delta Airlines..................................993

Airline

Q uarter 3 Freight (in tonnes)

Aeroflot...........................................986 China Eastern Airlines....................966 China Airlines.................................923 Expo Air Cargo...............................911 Baharain Air ..................................847 Japan Airlines.................................843 Austrian Airlines............................832 Silk Air...........................................592 Tiger Airways.................................480 Eva Air Cargo.................................383 Asiana Airlines...............................372 Biman Bangladesh..........................359 El-Al-Isreal Airlines.......................350 Mahan Air.......................................310 Phillipines Airlines.........................291 Ariana Afghan................................274 British Midland Airways................247 Bankok Airways.............................237 Kam Air..........................................216 China Southern...............................208 Iran Air...........................................199 Safi Airways...................................195 RAK Airways.................................179 Pakistan Int’l Airlines . ..................171 Fly Dubai........................................148 Yemen Airways..............................136 Thai Air Asia .................................120 Air Astana.......................................118 Spicejet...........................................102 Egypt Air..........................................91 Turkmenistan Airlines......................86 Royal Jordanian................................79 Aerosvit............................................76 Maldivian.........................................48 Jet Lite . ...........................................23 Druk Air..............................................8 Mihin Lanka.......................................3 Iraqi Airways . ...................................2 Other Non-Schd Operators...........7367 Total.......................................355577

Airline

Freight (in tonnes)

Air India.....................................19243 Emirates......................................46295 Jet Airways.................................37800 Qatar Airways.............................16961 Air Arabia.....................................3264 Saudi Arabian Airlines.................6483 Indigo Airlines..............................1409 Thai Int’l Airways......................12951 Singapore Airlines......................20003 Srilankan Airlines.........................5127 Lufthansa . .................................22266 British Airways...........................15128 Oman Air......................................1859 Malaysian Airlines........................7563 Ethiad Airways...........................12510 Cathay Pacific Airways..............26911 Gulf Air........................................1989 Spicejet...........................................414 Air Asia........................................1117 Tiger Airways.................................654 Kuwait Airways............................3194 Air France.....................................5894 Silk Air...........................................513 Turkish Airlines............................3601 United Airlines.............................1101 Swiss Airways..............................4769 Ethopian Airlines..........................3370 Virgin Atlantic . ...........................2815 KLM Royal Dutch . .....................1786 China Eastern Airlines..................1143 Kenya Airways.............................1475 Baharain Air...................................690 Dragon Air....................................1872 Delta Airlines..................................847 Thai Air Asia....................................54 Air Mauritius..................................998 Aeroflot.........................................1057 Fly Dubai........................................176 Finn Air........................................1533 Air China........................................723 Druk Air............................................21 South African Airways.................1075 China Southern...............................176 Austrian Airlines............................269

Airline

Freight (in tonnes)

Uzbekistan Airways......................2041 Japan Airlines.................................914 Turkmenistan Airlines....................116 China Airlines.................................361 Mihin Lanka.......................................7 All Nippon Airways.......................517 Biman Bangladesh..........................256 Royal Jordanian . ...........................135 Maldivian ......................................138 Asiana Airlines...............................425 Bankok Airways.............................176 Kam Air..........................................277 Mahan Air.......................................306 Korean Airlines..............................721 El-Al-Isreal Airlines.......................382 RAK Airways.................................126 Safi Airways...................................183 United Airways...................................0 Myanmar Int’l Air..............................0 Air Astana.......................................121 Pakistan Int’l Airlines.....................193 Iraqi Airways......................................3 Iran Air...........................................223 Egypt Air..........................................97 Ariana Afghan................................197 Yemen Airways..............................115 Phillipines Airlines.........................160 NAS Air............................................11 Jet Lite . ...........................................41 British Midland Airways..................57 Aerosvit............................................30 Buddha Air.........................................0 Air Bagan...........................................0 Federal Express ...........................7343 Martin Air . ..................................4953 Aerologic Freighter......................4130 Kallita Air.....................................2234 United Parcel Services..................2105 Nordic Global Airlines.................1380 Eva Air Cargo.................................272 Expo Air Cargo...............................161 Kingfisher Airlines.............................0 Other Non-Schd Operators...........9929 Total.......................................339935

Traffic statistics FY 2012-13 AIRLINES WISE DOMESTIC FREIGHT

Q uarter 1 AIRLINE

Q uarter 2 Freight (in tonnes)

Indigo Airlines...................................... 39534 Blue Dart Aviation................................ 39199 Jet Airways........................................... 32993 Air India............................................... 30791 Spicejet................................................. 27739 Go Air .................................................. 12163 Kingfisher Airlines .............................. 11793 Jet Lite ................................................... 9050 Kingfisher Red.......................................... 288 Pawan Hans ............................................... 91 Quickjet Cargo............................................ 14 Other Non-Schd Operators . .................... 188 Total................................................... 203843

AIRLINE

Q uarter 3 Freight (in tonnes)

Indigo Airlines...................................... 41322 Blue Dart Aviation................................ 39362 Air India............................................... 30807 Jet Airways........................................... 29883 Spicejet................................................. 26219 Go Air .................................................. 11379 Jet Lite ................................................... 8381 Kingfisher Airlines ................................ 7516 QuikJet Cargo........................................... 172 Kingfisher Red.......................................... 121 Pawan Hans ............................................... 58 Other Non-Schd Operators ...................... 218 Total................................................... 195438

AIRLINE

Freight (in tonnes)

Indigo Airlines...................................... 41008 Jet Airways........................................... 36095 Spicejet................................................. 29756 Air India............................................... 36628 Go Air .................................................. 11316 Jet Lite ................................................... 6243 Pawan Hans ............................................... 37 Religare Aviation.......................................... 0 Blue Dart Aviation................................ 34801 Quikjet cargo.............................................. 92 Kingfisher Airlines ...................................... 0 Other Non-Schd Operators . .................... 131 Total................................................... 196107

Source: AAI 42 i cargotalk i july 2013

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Products & Services New Initiatives

SSI Schaefer to expand Johor factory S

SI Schaefer has just signed a building contract to expand their steel manufacturing production area by almost 30% to meet the growing demand from APAC and Middle East/Africa. Confirmed by Brian Miles, Regional Managing Director, this is the latest round of investments the company has made over the last three years. “We now have 34,000m2 of production and warehousing at our Simpang Renggam site in Johor with a staff of 350,” he said, adding, “The total new investment budget is €6 million, which includes a new German-made rolling mill similar to machines operated by our parent company in Germany. This will roll all profiles

in AS/RS or rack-clad buildings, plus the machinery for preparation of special steelwork profiles.” “With land and labour-costs rising, we are seeing an increase in enquiries for high-rise racking systems. Shipping a heavy steel profile halfway around the world is obviously not cost-effective; therefore, the SSI Schaefer management has agreed that Asia should become a competence centre for the design and supply of these systems,” said Miles. “We have now built over such 50 systems throughout APAC, incorporating Germanmade profiles with our own product. With the new machinery, we can become fullyindependent. We will be able to deliver

This investment was made after securing major automation projects in Australia, Indonesia and China.” Brian Miles Regional Managing Director SSI Schaefer these systems to the market faster and at competitive prices.” “This investment was made after securing major automation projects in Australia, Indonesia and China,” concluded Miles, “By 2014, it will represent close to 50% of the company’s return for APAC, Middle East / Africa.”

Yale launches CF series forklift trucks Y ale and the Maini Group announced the launch of a new electric counterbalance forklift truck series for the Indian market, recently. The new Yale 48V CF series is available in 2,000 kg and 2,500 kg lifting capacities and incorporates all the advantages of AC technology with a battery capacity of up to 625Ah. The electronically-controlled hydraulic power steering system reduces operator fatigueand auto power shut downincreases 44 i cargotalk i july 2013

battery autonomy. Excellent operator visibility and a spacious operator compartmentmake the CF series an ergonomic and comfortable working environment. S. A Mohan, said ‘The Maini Group has a strategic alliance with the NACCO Materials Handling Group (NMHG), USA for the sales and marketing of the

Yale counterbalance forklift trucks, reach trucks, order pickers and very narrow aisle equipment and the manufacture under license of the RCF series in India. www.cargotalk.in


Shipping & Ports News Update

Mundra Port handles the largest container ship in India

A

dani Ports and Special Economic Zone Limited (Adani Ports) said its Mundra Port has handled the largest container vessel up to now with nominal capacity of 14,036 TEUs, the first of its kind to call at any Indian port. M.V. MSC Valeria, owned by Swiss-based MSC Mediterranean Shipping Company, a leading global shipping line, with overall

46 i cargotalk i july 2013

length of 365.5 metres (1,199.2 feet) was delivered to MSC in June, 2012 and is currently deployed in MSC’s AsiaMediterranean Dragon service. “Traditionally, an average container ship size is less than 4,000 TEUs in India. The 14,000 TEUs vessel will reduce the cost significantly. I believe that this costreduction to customers can give Mundra

Port an opportunity to become a hub port for servicing not only other West and East Coasts Indian ports, but also potentially cater to the Middle-East and African markets. Having such facilities, APSEZ will have an advantage for container business, especially for North and Central India hinterland through its ports at Mundra and Hazira�, said Gautam Adani, Chairman, Adani Group.

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Shipping & Ports News Update

Maersk Line merges MECL1 and ME4 services

M

We are confident of providing further ease of business from the Indian subcontinent through the mergers of these separate services.” Franck Dedenis

Managing Director Designate – Maersk Line (India and Sri Lanka)

48 i cargotalk i july 2013

aersk Line(India and Sri Lanka cluster), the core liner shipping company of the A.P. Moller-Maersk Group, announced the merger of its MECL1 and ME4 services to optimise business from the India subcontinent to East Coast North America and West Mediterranean. The MECL1 and ME4 services from being standalone products will combine into one service, providing customers direct connections to and from North America, while adding an Algeciras call on the current MECL1 service in order to cater to the West Mediterranean destinations, West Africa and East Coast South America. This product will now also provide additional coverage from Pipavav to the Western Mediterranean destinations. Franck Dedenis, Managing Director Designate-Maersk Line (India and Sri Lanka), said, “Maersk Line’s MECL1

service will now also call Algeciras in addition to its traditional ports, servicing a part of the West Mediterranean, Africa and East Coast South America, which were earlier a part of the ME4 service, in addition to the East Coast north America and the Middle East. In effect, this one service will call on four geographies.” The traditional fast transit times on the MECL1 service will now apply for Spain, the Africas East Coast South America as well. The service will continue to maintain its 93%+ schedule reliability as reported by Drewry for Q1 2013. An additional direct call into Savannah has been added into the service to improve its North America coverage. Also, an additional ship has been added into the network, improving on-schedule reliability and service to the geographies MECL1 caters to.

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Shipping & Ports Stats & Figures

Exports to Principal Regions and Countries (Value in Rs Crore, Growth and Share in percentage)

Source: Ministry of Commerce

Region/Countries Europe EU Countries Africa Southern African Customs Union (SACU) SOUTH AFRICA West Africa East Africa America North America USA Latin America BRAZIL ASEAN West Asia- GCC CHINA HONG KONG APAN KOREA RP TAIWAN South Asia SRI LANKA DSR BANGLADESH PR CIS & Baltics

50 i cargotalk i july 2013

Apr-Mar 2011 Apr-Mar 2012(P) Apr-Jan 2012 Apr-Jan 2013(P) 227,218.38 209,707.62 89,745.44 18766.55 17,884.68 19,538.37 24310.58 168,014.80 125,508.90 115,212.29 42505.9 18,336.48 116,658.32 193,193.68 70,413.94 47,038.42 23183.21 16,964.63 10,479.26 53,018.72 15,962.40 14,752.51 12,214.73

276,549.03 251,787.60 118,668.26 23490.22 22,727.19 31,066.23 31730.61 239,498.28 180,880.75 164,527.44 58617.53 27,574.45 175,446.82 217,229.47 86,585.59 61,880.81 30459.7 20,662.51 15,901.15 62,705.95 20,938.03 18,229.98 14,708.46

230,237.69 209,968.58 96,072.06 19547.06 18,904.37 24,989.21 25603.47 195,094.63 147,122.58 133,969.61 47972.05 21,938.85 141,960.47 172,834.19 72,085.72 48,390.39 23117.03 16,946.89 13,612.51 50,541.00 17,113.23 14,038.62 12,053.72

247,683.80 222,863.11 129,639.17 23733.91 22,932.02 28,999.32 38568.85 246,392.33 185,684.31 169,160.78 60708.02 27,471.30 144,320.60 223,971.37 60,178.49 51,992.93 27675.62 19,490.48 13,902.10 62,821.23 16,079.58 22,083.76 16,303.84

% Growth

% Share

7.58 6.14 34.94 21.42 21.31 16.05 50.64 26.29 26.21 26.27 26.55 25.22 1.66 29.59 -16.52 7.44 19.72 15.01 2.13 24.30 -6.04 57.31 35.26

18.87 16.98 9.88 1.81 1.75 2.21 2.94 18.77 14.15 12.89 4.63 2.09 11.00 17.06 4.59 3.96 2.11 1.49 1.06 4.79 1.23 1.68 1.24

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Shipping & Ports CBEC Circular

Now, containers can go straight to CFS

A

CBEC announced, on May 24, that there is a justification to allow the direct movement of goods from a Gateway Port to a CFS and vice versa

52 i cargotalk i july 2013

ccording to the Central Board of Excise & Customs (CBEC) Circular in 2009, direct movement of consignments from Gateway Port to CFS of another Customs Station is not allowed. These are transported first to a ICD and then to the connected CFS for physical clearance. It is only in exceptional circumstances on account of congestion etc, the jurisdictional Commissioners are empowered to allow the movement of consignments from Gateway Port directly to a CFS of another Customs Station. However, for quite some time the industry people are urging for special the arrangements (i.e shipments to be transported direct to CFS) to reduce dwell time and transaction cost. After examining the matter CBEC, on May 24, announced that there is a justification to allow the direct movement of goods from a Gateway Port to a CFS and vice versa, while at the same time ensuring proper accountability of the goods to safeguard revenue.

According to the existing practice, when goods consigned for an Inland Container Depot (ICD) are imported at a Gateway Port, these are transported first to the ICD and then to the connected CFS for physical clearance. The existing restriction in disallowing direct movement of goods is because the Indian Custom EDI System (ICES) module, which does not allow generation of Sub Manifest Transhipment Permit (SMTP) to allow the goods move directly from a Gateway Port to CFS. The Board has now decided that modifications to the ICES should be carried out to permit the simplification of transhipment. At the gateway port, Customs shall prepare a consolidated list of all SMTP generated CFS-wise for consignments bound for an ICD. The goods will move from the gateway port direct to the CFS under cover of a bond accepted by the Customs at the Gateway Port.

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Family Album Glipmpses of 2012-13

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Looking Back and Ahead Industry set for step forward 7

The FY 2012-13 witnessed several remarkable initiatives by the cargo and logistics players, policy-makers and facilitators. Now it’s the time to reap benefits out of those initiatives. Cargotalk presents some glimpses that were featured during the previous financial year. 1. Inauguration of AFS in Mulund

6. FIEO International Conclave in Chennai

2. BRICS Business Forum in New Delhi

7. Sindhu Cargo’s tie up with SG Holdings

3. Tie up between FIEO, eBay and PayPal for retail export through e-Commerce

8. JBS Academy: MoU with Government of Gujarat

4. CMA-CGM Logistics Park Delhi: Celebration of 5th Anniversary

9. Launch of the Air Cargo Forum India

5. Launch of Gati-Kintetsu Express JV in New Delhi

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10. Three ELSC Awards to Safexpress 11. Announcement of new Managing Committee of AMTOI

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12. Launch of Women’s Wing at AGM of FFFAI in Pune

19. Manufacturing and Supply Chain Awards to Delex in Mumbai

13. Launch of AFS in Kanpur by GMR and Concor

20. ‘Business Forum 2013’ by NISAA

14. Bar Cargo-NR AGM in New Delhi

21. Mercurio Pallia: Launch of Stockyard for Fiat India, in Pune

15. China Southern: Celebration of 5 years in India

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16. ACAAI Convention 2012 in Turkey

22. SDV: ‘Earthtalent’— a CSR programme in New Delhi

17. FFFAI Golden Jubilee Celebration in Mumbai

23. NISAA Cricket Cup 2012-13

18. Million Minds and CILT: ‘Logistics Achievers Award and Talent Hunt 2013’ in New Delhi

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Family Album Industry Event

FFFAI Convention 2013

Customs brokers meet with full strength ectacular sp tion of FFFAI was a en nv Co al ni en Bi e sed Th Meticulously organi s. ct pe as l al om fr event ns and n, business sessio inauguration functio ere ent programmes w evening entertainm al of the profession the demonstrations n members. The skill of the Federatio these programmes participation in all taneous. was huge and spon

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Family Album Industry Event

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Family Album Anniversary

s’ Meet r e m o t s u C l a u Ann 8 years

1 CSC celebrates of operationdia recently presented a

enter In years Cargo Ser vice C celebrate its 18 to i ba um M in g sed glittering evenin ers’ Meet witnes m to us C l ua nn eA ts of the of operations. Th various segmen om fr ts es gu 0 on, more than 10 . On this occasi ry st du in s ic st gi Freight air cargo and lo ing Airlines and m or rf Pe t es B its cargo business CSC felicitated ntribution to the co r ei th r fo rs at Mumbai Forwarde Cargo Terminal e bl ha ris Pe s a’ fthansa, at CSC Indi are Emirates, Lu rs ne in w d ar n Worldwide Airpor t. The aw Ser vice, Hellman go ar C ir A e in Transl Travels. eightWings and Logistics and Fr

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Family Album Beyond Business

DELEX starts cricket tournament

for its branches and customers

On June 9, Delex started an innovative cricket tournament across the country. The objective of starting Delex Cricket League (DCL) is to strengthen the bond between the company and their customers. Among the 12 teams from Delex offices across the country, each team includes at least 4 players from customers side. These teams are Punjab Xpress, Delhi 11, Delhi Indians, Delhi Royals, Bengal Tigers, Bengal Gladiators, Mumbai Champs, Mumbai Twisters, Maharashtra Riders, Chennai Razors, Bangalore Bulldozers and Karnataka Warriors. The tournament is ongoing.

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Infrastructure Project CSR

Gati Infrastructure

responds to environment issues at Chuzachan Project

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ati Infrastructure, a subsidiary of Amrit Jal Ventures promoted by Gati Founder & CEO Mahendra Agarwal recently undertook a tree plantation initiative by planting 756 saplings at their Chuzachan project site in Rongli, Sikkim. The tree plantation drive aims at planting a total of one lakh saplings during this monsoon season. The saplings to be planted include fruits, flowers, ashoka, bamboo and broom.

p Mahendra Agarwal along with Meera Madhusudhan Singh, Project Director, Gati Infrastructure planting a sapling

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Recently, Gati Infrastructure had entered into an agreement with the State Government of Sikkim to implement three hydro power projects on a Build, Operate, Own and Transfer basis (BOOT). The first project – 110MW Chuzachen Hydro Project on Rangpo and Rongli rivers has been commissioned and started production.

“The plantation of trees will uphold the commitment the project has towards the protection of the environment at the Chuzachan project,” said Gati sources. The saplings would be planted in and around the power house and on the borders of the project towards the road. The sources also maintained that at Gati Infrastructure, every project includes a social commitment to contribute to the economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. The company’s CSR activities include education, self-managed rural institutions, health, livelihood and food security, capacity building, generation of awareness and sponsorships.

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In Conversation Perishable Cargo

APEDA expands India’s share

with new produces and new markets Going by export data available for the last three years, the export of fruits and vegetable has seen a respectable rise. Vinod Kaul, DGM, Agricultural and Processed Food Products Export Development Authority (APEDA), provides an update on the recent developments in this organisation and plans ahead. n Ratan Kr Paul

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n 2010-11, the export of fruit and vegetable was worth `3,946 crore, and it jumped by 21.96 per cent to `4,801 crore in 2011-12. The DGCSI data available for 11 months of 2012-13 shows export of fruits and vegetables at `4,774 crore. “This amply shows that Indian fruits and vegetable are in good demand in the international market,” maintained Kaul. With the objective of boosting horticulture export of perishable horticulture produce, APEDA has been taking initiatives for setting up export-oriented integrated postharvest infrastructure facilities like pack-houses, pre-cooling facilities and Centres for Perishable Cargo (CPCs).

Fact n Though 2012 was the first year of 12th Plan Period, APEDA continued its support for various State and Central Government agencies and private exporters in setting up such post harvest infrastructure facilities. n APEDA has also been working closely with Ministry of Agriculture for opening up of market access for Indian fruits and vegetables. n During the last year, New Zealand and Chile had opened up their markets for Indian mangoes, while the market access for okra, pomegranate and sapota to the Chinese market is nearing final stages. 66 i cargotalk i july 2013

cold-chain infrastructure in the country, which is a massive exercise. However, there is need for much larger coverage and efforts on part of the Government of India are continuing in this direction. According to him, setting up of the National Centre in Cold Chain Development has been an excellent initiative and the first milestone has been the setting up of standards for various kinds of cold chain facilities in consultation with various stakeholders. “The results of these efforts will soon become widely visible,” he believes.

Programmes Afoot

APEDA plans to make further inroads in the area of access in newer markets for fruits Vinod Kaul and vegetables. Moreover, Though 2012 was the DGM, Agricultural and the direction of APEDA’s first year of 12th Plan Period, Processed Food Products APEDA continued its support Export Development Authority efforts in the current year is for various State and Central development of post-harvest (APEDA) Government agencies and infrastructure and training private exporters in setting up such post in conjunction with State Governments in harvest infrastructure facilities. APEDA has control of pesticides residues in also been working closely with Ministry horticulture produce. of Agriculture for opening up of market access for Indian fruits and vegetables. “Meeting international trade During the last year, New Zealand and requirements, especially sanitary and photo Chile had opened up their markets for sanitary (SPS) aspects, has to be the focal Indian mangoes, while the market access point if export of horticulture produce is for okra, pomegranate and sapota to the to further improve,” Kaul said. Keeping in Chinese market is nearing final stages. view the growing concerns of importing “APEDA continues its support to various countries towards fruits and vegetables, State/Central Government agencies and wider knowledge dissemination about use private exporters in augmenting exportof registered and permitted pesticides is the oriented cold-chain facilities. The results of need of the hour. “This is an area where the such efforts are the positive growth reflected government and private exporters need to in the export of perishable horticulture continue working in unison to strengthen produce from the country,” stressed Kaul. and sustain positive growth in the export of perishables from the country. The In his opinion, there has been strengthening of the cold chain infrastructure progressive growth in production of in the country is another focal point and horticulture products, specially fruits and enough emphasis is being laid on these vegetables. The Government of India has aspects in the 12th Plan period,” Kaul concluded. taken several initiatives in developing the www.cargotalk.in


Logistics Services Expansion Plans

Providing world-standard

HR for SCM

The partnership between Milestone Consulting Group and Logistics Executive Group aims at expanding the latter’s footprints with new offices in Mumbai, Delhi and Chennai. n Anita Jain

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hennai-based Milestone Consulting Group, a business consulting and 4PL service provider, recently tied up with Australiabased Logistics Executive Group (which has been in India since 2010) to tap the growing potential of logistics business in India. Both the companies are engaged in human resource development service for the logistics and supply chain management sector. The new joint venture – Logistics Executive India –will be opening three new offices in Mumbai,

We intend to create a talent pool, offer recruiting, consulting and provide our expertise at every level of human resources.” LR Sridhar MD – India and Subcontinent, Logistics Executive India and Founder, Milestone Consulting Group we will bring in global-level expertise and networking capabilities offering a full cycle of human resource services.”

We will be developing their (companies’) staff development and talent programmes with which they can compete on a global stage.” Kim Winter Group CEO, Logistics Executive Group

Delhi and Chennai each offering a range of services including accredited training, talentmapping, recruitment process outsourcing and business intelligence in the logistics sector. In fact, in the next two years, the company is also planning to set up a reputed training academy in India for the training and outsourcing skilled manpower in the industry, informed LR Sridhar, MD – India and Subcontinent, Logistics Executive India and Founder, Milestone Consulting Group. 68 i cargotalk i july 2013

According to Sridhar, the Indian logistics industry has grown vertically since 10 years now, but the skilled manpower is not per international standards. He said, “Every year, many multi-national companies are entering India as business potential is enormous here. However, to cater to the global clients, we need international-standard services and manpower. Unfortunately, we don’t have skilled manpower in logistics industry and thus, we intend to improve this through our services. We intend to create a talent pool, offer recruiting, consulting and provide our expertise at every level of human resources. With this partnership,

Talking about the partnership with an Indian operator, Kim Winter, Group CEO, Logistics Executive Group said, “With logistics and supply chain being a key driver of growth in Indian economy, the investment in this partnership will set up a platform for Indian and MNC companies in India to take advantage of these opportunities. We will be developing their staff development and talent programmes with which they can compete on a global stage.” Furthermore, Sridhar adds, “The opportunity to truly integrate training and internships to job-placement, to be better positioned to develop executive talent whilst helping to drive business and supply chain performance through our real-time business consulting and 4PL services for logistics and SCM is a unique service offering in India”. www.cargotalk.in


Logistics Infrastructure Common Users

Multi-user warehouse

DHL opens second facility in Delhi Recently, DHL Supply Chain launched its new multi-user warehouse at Luhari in Delhi with an investment of `65 crore. Spread across 320,000 sq ft, this facility is aimed to meet the growing customer demands from the consumer, retail and automotive sectors. Vikas Anand, Chief Operating Officer, DHL Supply Chain India, provides details about the nature of the warehouse. p (L-R) Vikas Anand, COO – DHL Supply Chain India along with the P&G Management team - Sanjay Bardhan - India Warehousing Leader, Ed Hunter - Vice President, Asia PS, Sam Garcia, Director – Product Supply, Fabric & Home Care, Atreya Sarkar- India Logistics Leader and Jerome Gillet, Vice President, Consumer & Packaging - Asia Pacific at the inauguration of DSC’s multi-client site at Luhari, Delhi.

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his is the second launch related to their venture for multi-user warehousing facilities. The new Luhari facility is a demonstration of DHL’s ongoing infrastructure investment programme in the country. Built to worldclass standards with state-of-the art features, customised to suit specific requirements of customers, the facility can consolidate, store shipments and re-distribute them to several distribution channels in the region. Initially, the facility is to cater to its customer P&G India. “The warehouse design is for a multi-customer site in terms of height, floor strength and docks. However, for the capital investments done within the warehouse in terms of racking, shelving, reach trucks, BOPT, RF Guns and conveyors and some other services, we have done specific investments to cater to P&G requirements. So the current solution is tailor-made for this company. When we migrate another customer there, we shall review the solution fit and have investments in Capex accordingly,” Anand informed. The facility is designed with improved infrastructure, which includes continuousloading docks and dock-levellers, state-ofthe-art racking and traffic management for seamless flow, advanced material-handling equipment such as a telescopic conveyor, 70 i cargotalk i july 2013

RF technology for barcode scanning and integrated IT solutions with warehouse management systems (WMS).

the Mumbai MCS already and pharma customers are already using that site,” he added.

The warehouse is facilitated with primary and backup high-bandwidth Multi-Protocol Label Switching (MPLS) connectivity. Additionally, the site uses green technology like LED lighting, natural lighting and wind-assisted ventilation.

According to Anand, in the long run, DHL’s multi-user warehouses shall also act as its transport hubs. “We are setting up control towers equipped with transport management systems (TMS), network optimisation tools and cube-utilisation tools. Our strategy is to promote ‘carry more for less’, which means that we shall provide solutions leading to optimum routing, better vehicle utilisation, and optimised vehicle size ensuring we carry more freight for our customers at lower costs.

Presently, the warehouse has a capacity to handle more than 400 ftl per day. It can store various products including related to consumer, technology and retail. Anand made it clear that currently, the company has no plans to store perishables in this warehouse. “Yes, pharma is part of the plan. We have set up a pharma hub within

The warehouse design is for a multi-customer site in terms of height, floor strength and docks.” Vikas Anand Chief Operating Officer DHL Supply Chain India

The Goal is GST

With the impending introduction of GST, DHL Supply Chain has invested in this large-scale shared facility with multiple users at Luhari, to assist corporate entities in Gurgaon and surrounding areas. Anand pointed out that simplifying the distribution network and merging smaller warehouses to regional centres will result in economies of scale being generated. Warehouse locations will no longer need to be fixed, depending upon Central Sales Tax constraints, but will be decided based on demand and supply patterns, centre of gravity, long-term logistical and real-estate considerations. www.cargotalk.in


User’s Perspective Logistics Leads

Haier Appliances India

Success story continues with efficient SCM support Haier Appliances India, which is a 100 per cent subsidiary of Haier Group, is one of the fastest growing consumer durables companies in the world. Benzon John, General Manager – Supply Chain, Haier Appliances India unveils the success story of the company and the role of efficient supply chain management. n Ratan Kr Paul

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ccording to John, India is one of the key markets for Haier Group, and the company has major plans for the country in the coming days. “Our growth rate in India is far ahead of other brands,” he asserted. The company initiated its commercial operations in January 2004. “Our launch in India started with innovative products, which were designed keeping the day-to-day customer needs in mind – products that will transform the everyday living into inspired living,” he added. In August 2007, Haier acquired a manufacturing facility, located at Ranjangoan in Pune, Maharashtra. Spread over 40 acres of land, the plant has capability to manufacture refrigerators, CTVs and washing machines. Haier has upgraded the new facility with state-of-the-art equipment to create an R&D facility and additional capacity for production of refrigerators at the plant. The facility was acquired as a part of purchase of appliances business of Anchor Daewoo Industries by Haier India. With a philosophy of zero inventories and on-demand manufacturing and delivery, Haier adopted the user-oriented large-scale customisation strategy, thanks to a strong supply chain and logistics mechanism. “Supply chain is the backbone of every company. In the earlier days, supply chain

functions were playing their roles silently from behind the curtains. But of late, critical decisions of the company are taken only after taking feedback from the SCM team,” John revealed. In his opinion, every rupee saved by SCM in their operations in turn goes back to the

It’s very important that third-party logistics service providers gel with company’s vision and policies.” Benzon John General Manager – Supply Chain, Haier India

product, making it more competitive in the market. Ultimately, the customer becomes the winner. “We have adopted this policy successfully at Haier and the company growth is proving our SCM philosophy right,” he observed. John further maintained that good 3PL companies help manufacturing companies to save lot of money. 3PL service providers come with expertise in various divisions of SCM. Also they are having various verticals handled by experts from the industry. This helps the partner companies to discuss issues faced by them with their 3PL team and take appropriate decisions. “It’s very important that third-party logistics service providers gel with company’s vision and policies. In fact, they represent the company in many places. For example, when they deliver the products to customers, they have to ensure that the delivery is done as per the requested delivery time of the customer, whether the

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product is delivered in the correct packing without any damage, whether the documentation was done correctly and so on. As a 3PL service provider, these partners should work as an extended arm of the company. If the 3PLs fail to reach this level, chances of failure are very high,” he feels.

John also highlighted some critical issues which are beyond a logistics service provider’s control. “Rising fuel prices is a major area of concern for the manufacturing sector. Apart from this, toll is applicable for all the new roads coming up in the country. Free movements of goods between states are still affected due to non-implementation of GST,” he pointed out.

Recommendations for 3PLs and policy makers

According to John, the logistics service providers have to grow from the image of a “stocking and distribution agent” to a fullyfledged 3PL service provider with more value to client operations. In addition, policymakers have to implement GST faster. Also, road infrastructure needs more improvement. Because of poor road infrastructure, deliveries take much longer time affecting on time deliveries of materials and longer time to recover ROI for service providers. www.cargotalk.in



Cargotalk July 13