CARGOCONNECT August 2017

PAGES 100 inclusive of cover

www.surecommedia.in Postal Registration No.: DL (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Bulk Logistics in India: Still A Long Way To Go IMPACT OF GST ON INDIA’S ROAD TRANSPORTATION Multi Modal Logistics Parks Fuelling the Economy

VOL VIII ISSUE IX August 2017 `20

Contents

Volume VIII • Issue IX • August 2017

Editor and Publisher Smiti Suri Assistant Editor Archana Verma Feature Writers Tariq Ahmed Gaurav Dubey Sheena Sachdeva Deepashree Banerjee

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16 COVER STORY

The Supply Chain Makeover: A Paradigm Shift in Technology focus

SPECIAL FEATURE

Bulk Logistics in India: Still A Long Way To Go

INTERVIEW Alkesh Kumar Sharma, CEO and MD, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) ..............................68 Shankar Iyer, Head of Cargo. Africa, Middle East and India at Swiss WorldCargo .........70

Impact of GST on India’s Road Transportation .................................8

FEATURES

GRK Reddy, Promoter and Director, Karaikal Port ..............................................72 Joyce F Carter, President and CEO of Halifax Stanfield International Airport, Canada .....74 Pankaj Mehta, Managing Director, Transicold India and South Asia .............76

Multi Modal Logistics Parks Fuelling the Economy ...................................48

Crossing Borders Alive ...................56

Dedicated Freight Corridors: End of Freight Woes ........................64

Gurpreet Gill, Regional Head Supply Chain and Logistics Solutions, Samsung SDS ..78

UPFRONT ....................................6 shippers speak ....................80 NEWS ..................................82-87 INTERNATIONAL CONNECT........88 EVENTS ................................90-96 Appointments .......................97 Upcoming Events .................97 PEOPLE CONNECT

Tushar Jani, Group Chairman, Cargo Service Centre .............................98

Director Ajeet Kumar Marketing Manager Niti Chauhan Asst Manager Marketing Asad Mohammad Administration Vipin Marwah Accounts & Administration Poonam Gupta Sr Designer & Visualiser Shaique Ahmad Designer & Visualiser Mayank Bhatnagar

All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same.

CargoConnect is printed, published and owned by Smiti Suri, and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014.

Editor–Smiti Suri

SURECOM MEDIA

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Upfront Funding in the third party E-Commerce logistics space has increased by almost 20% in the first six months of this calendar year as compared to the same period in 2016, as E-Commerce companies have started outsourcing fulfilment operations to logistics partners.

India’s logistics sector would gain the most from the goods and services tax as costs would fall by almost 20%.

Nitin Gadkari Union Minister for Road Transport, Highways and Shipping

Mansukh Mandaviya Union Minister of State for Road Transport, Highways and Shipping

“The new waterways would enable transportation of people and goods by ships.

They would be set up by using the major rivers of Bangladesh, West Bengal and the Brahmaputra in Assam.”

India, the third largest domestic air travel market, is estimated to see an investment of $25 billion in the next decade in the airports sector.

There is a demand for 935 more planes and traffic growth of 13 per cent.

Morgan Stanley report

“In the context of new ports coming up in the vicinity of major ports, no new ports to be established in the 100 kms vicinity of existing major ports without the permission of the Parliamentary Committee.”

Parliamentary Standing Committee on Transport

6

CargoConnect - august 2017

“Ensuring cyber security is one of the top priorities for Indian Railways, which is currently seeing a lot of upgradation, modernisation and maintenance.”

Railway Minister

Suresh Prabhu,

at a round table conference on Ensuring Cyber Security on Indian Railways.

Exporters are worried after imposition of 18% GST on international air freight, as it could make their goods non-competitive in international market.

CBRE’s report titled India Industrial and Logistics Market View H1 2017 says that GST is having a positive impact on warehousing segment as the segment has registered 50% growth in the first half of 2017.

FOCUS

Impact of GST on India’s Road Transportation The Goods and Service Tax (GST) is the most crucial economic reform since the Liberalisation, Privatisation and Globalisation (LPG) reforms in the year 1991.The logistics industry is being significantly benefitted by the implementation of GST and from removal of inter-state check posts. Elimination of state taxes has also lowered down bottlenecks for the transporters. Gaurav Dubey delves into the subject and presents a short report on the impact of GST on road transportation.

8

CargoConnect - august 2017

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FOCUS

W

hen the clock stuck 12 o’clock midnight and the calendar showed the date July 1 2017, India joined the bandwagon of 160 countries which have implemented GST/ VAT in some or other form till now. After GST’s implementation India has turned into a unified market and it is making India’s manufacturing industry competitive by curtailing high logistics and warehousing costs. Implementation of GST has been rationalising and re-engineering transportation and logistics network which was previously embroiled in the bevy of state taxes. Unified system of taxation at the national level will result in more efficient crossstate transportation and streamlined paperwork for road transporters. This will ultimately bring down the logistics cost.

As per an estimate of World Bank, simply halving the delays due to roadblocks, tolls and other stoppages could cut freight times by around 20-30 per cent and logistics costs by an even as much as 30-40 per cent.

Previously, each state of the country used to tax goods that moved across their borders at different rates. Hence, taxes were imposed multiple times on the freight that moved across the country. It resulted in long delays at inter-state checkpoints, as state authorities used to review and examine freight and apply the relevant taxes Post and other levies.

Trucks had been losing fiveGST, freight to-seven hours on a daily basis operators have at inter-state checkpoints. On been experiencing inclusion of other delays, we lesser transport would find that a truck only moved for 60 per cent of the times. entire transit time. Implementation of GST is also crucial for the transportation sector because 65 per cent of India’s freight move by road.

As per an estimate of World Bank, simply halving the delays due to roadblocks, tolls and other stoppages could cut freight times by around 20-30 per cent and logistics costs by as much as 30-40 per cent. This alone can go a long way in boosting the competitiveness of

10 CargoConnect - august 2017

Advantages of GST as expressed by the logistics professionals Regional hubs will come on the scene

Under the previous tax structure, manufacturers in India were required to have warehouses in every state.

The implementation of GST will facilitate emergence of key hubs in major states to allow streamlining of processes. It will also allow manufacturers with the flexibility to have warehouses only in selected states.

Reduced turnaround time

For the purpose of compliance with state laws and taxes, the trucking industry spends a large amount of time at interstate checkpoints and tracking of interstate sales tax. It is estimated that the logistics industry spends 50-60 per cent of its time on all of the above functions. Thus, lower interstate compliances and reduced paperwork is expected to result into faster turnaround time for trucks.

Uniform Taxation System

Prior to implementation of GST, all states had their own tax system and each of them used to tax goods that move across their borders differently, resulting in a freight that is taxed multiple times.

Process would be streamlined

The highly fragmented nature of Indian transportation is also such because engagement with unorganised players is preferred for tax considerations.

Implementation of GST is expected to create greater opportunities for and create incentives for companies to enter the organised sector.

Reduced cost

All the above factors working together will automatically result in lower cost of transportation.

According to a World Bank report, corporates can save up to 40 per cent of their logistics incurred at check posts. Presently, the taxation rate approximates at 26.5 per cent, but with the implementation of GST this rate is expected to move to between 18 per cent and 21 per cent, resulting in cost savings.

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FOCUS At present, the logistics sector is highly fragmented and it has very few large and organised players. With GST, the unorganised sector will have to join hands with the organised players to set up economies of scale. This will lead to the reduction of transportation cycle times, enhance supply chain decisions and to the consolidation of warehouse.�

Gemunu Rodrigo, CEO, Expo Freight Private Limited

As per recent reports, transit time has been reduced by 30 per cent.

India’s key manufacturing sectors by three to four per cent of net sales.

The planned GST system seeks to replace several state and federal taxes and tariffs for a single tax at the point of sale. The prevailing complicated tax structure in India meant that logistics decisions, including the choice of setting up inventory and distribution centres, are taken on the basis of tax regime such as Central Sales Tax and State ValueAdded Tax (VAT) rates, rather than on operational efficiency. Tax optimisation and administration is often considered over the operational and logistics efficiency.

GST is all set to unleash a new era of developing logistics infrastructure and take investments to the next level. Given that the inefficient and longer supply chains with warehouses in almost every state is fiscally preferred in the existing regime, it will now overhaul and compress the entire logistics set-up.

GST will score over the previous regime in the transportation and logistics industry,

12 CargoConnect - august 2017

The planned GST system seeks to replace several state and federal taxes and tariffs for a single tax at the point of sale. The prevailing complicated tax structure in India meant that logistics decisions, including the choice of setting up inventory and distribution centres, are taken on the basis of tax regime such as central sales tax and state valueadded tax (VAT) rates, rather than on operational efficiency.

where a tendency was seen to engage with the unorganised players for tax considerations.

The GST regime will see the emergence of the organised service providers, since taxes will no longer be the added costs for the businesses. Given the highly fragmented nature of the Indian transportation and logistics industry (the leading 10 listed firms command less than five per cent of the overall market), implementation of GST is expected to unleash a plethora of opportunities for companies in the organised sector.

Thousands of trucks enter each state of the country every day and the sight of long queues at the checkpoints of states is a daily affair. Similarly, over 20,000 trucks enter Delhi everyday through 122 checkpoints of the states. At the checkpoints drivers have to pay an entry tax called the octroi, a municipal level tax.

Abdul, a truck driver says, “Usually, I have to wait for three to four hours at Badarpur border in long serpentine queue which runs for two to three kms whenever I bring goods

FOCUS Trucking industry is evolving in multi-dimensions. The long haul trucks would become bigger and check posts and interstate borders will be removed with the implementation of GST. Once it is removed, the trucking industry will get a great relief as it will reduce the time lag and ensure better and faster delivery of goods.”

PC Sharma, CEO and Whole Time Director, TCI EXPRESS

SGST (GST to be levied and collected by States) CGST (GST to be levied and collected by Centre)

Dual GST (NonConcurrent Dual GST)

GST

Dual GST (Concurrent Dual GST)

more competitive than ever before.

Gemunu Rodrigo, CEO, Expo Freight Private Limited says, “Proper implementation of GST will have positive impact on the logistics industry through the reduced costs and increased efficiency. It would have Many producers and immense impact within tr ansport oper ators are the country and on exports reporting logistics efficiency as well. It will lead to the gains after abolishing of emergency of organised border check posts service providers since taxes will now not be an added cost for businesses.

At present, the logistics sector is highly fragmented and it has very few large and organised players.

With GST, the unorganised sector will have to join hands with the organised Logistics industry players are very much players to set up economies of scale. This excited after the rolling off of this new tax will lead to the reduction of transportation reform as it will drastically bring down the cycle times, enhance supply chain decisions logistics cost in the country. This would also and to the consolidation of warehouse. All of make manufacturing industry of the country this will help the industry grow, which will to Delhi.” Abdul is elated on rolling off of the GST and says, “I am not much aware about GST but one thing I know is that it will eradicate octroi and various other kind of taxes and would decrease the travel time.”

14 CargoConnect - august 2017

ultimately accelerate the economic growth.”

PC Sharma, CEO and Whole Time Director, TCI EXPRESS opines, “Trucking industry is evolving in multi-dimensions. The long haul trucks would become bigger and check posts and interstate borders will be removed with the implementation of GST. Once it is removed, the trucking industry will get a big relief as it will reduce the time lag and ensure better and faster delivery of goods. We can increase the number of trips and ultimately it will add to the productivity of the whole industry.”

The transportation industry which is presently largely fragmented and unorganised due to operational barriers, will undergo a sea of changes. The industry has a long supply chain, increasing costs as well as inefficiency.

Trucking has for years been structured to incorporate the state tax systems, reducing the ease of doing business for transport companies. Truck drivers in India clock an average of 250-280 kms per day as compared to the world average of 400 kms per day.

The logistics industry will certainly undergo a metamorphic change with the implementation of GST. The transportation industry will be substantially benefited by this big bang tax reform. Lesser interstate compliance and reduced paper work will result in faster turnaround time for trucks.

That directly adds to the bottom-line of the transporter. The GST will also lead to the transport industry getting more specialised.

A proper system will come in place – there will be the principal transporters who will connect the manufacturers with the hubs.

Then there will be another category known as subsidiary transporters, who will move from the hubs to the distribution centres. Finally, there will be the last-mile transporters who will ensure customer delivery. This structure will lead to higher competitiveness, more efficient sourcing and organised trucking.

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A Paradigm Shift in Technology

16 CargoConnect - august 2017

cover story

In a developing economy like India, logistics is a crucial sector and its excellence is increasingly becoming a differentiating factor for business environments. India’s logistics scenario is undergoing a phase of unprecedented change and is all set to witness a paradigm shift in the supply chain processes and experience a burgeoning demand for end to end logistics solutions aided by technology. Tariq Ahmed and Sheena Sachdeva analyse the supply chain technologies that will transform and transgress the set norms of the logistics industry in India as well as globally.

august 2017 - CargoConnect 17

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inside Upcoming transformations Automation and Technology GST: Boon or Bane How is technology an aid for logistics?

18 CargoConnect - august 2017

A

t the onset of globalisation, technology has made a remarkable footprint across the sections of almost all the industries.

The boom of technology is quite at par in this part of the century. These days technology changes happen within nanoseconds. Technology is the most powerful tool to bring a substantial change in the world economy. Considered the backbone of every economy, transport and logistics sector are not far behind. As in the last century, information technology had brought about a sea change in the whole logistics sector.

Adding to that, Industry 4.0 is here knocking at our doors. ‘Industry 4.0’ stands for the fourth industrial revolution. While Industry 3.0 focused on the automation of single machines and processes, Industry 4.0 concentrates on the end-to-end digitisation of all physical assets and their integration into digital ecosystems with value chain partners. Generating, analysing and communicating data seamlessly underpin the gains promised by Industry 4.0, which networks a wide range of new technologies to create value.

The logistics industry will continue to witness compelling transformation and trends. Increasing growth of online shopping, new consumption patterns and digital age of commerce will impact supply chain and logistics industry. Warehouses of the future would be dynamic and smart with automated inventory. They will work on real time analytics and will be intelligent enough to reach higher

levels of efficiency by understanding the external ecosystem around them. The future supply chain will be guided by algorithms which would be deeply influenced by artificial intelligence and machine learning. Industrial leaders in India are digitising essential functions within their internal vertical operations processes and are focused on driving both revenue growth and operational efficiencies by adopting Industry 4.0. Also, nine out of ten companies expect to expand their product portfolio with digital offerings.

Upcoming transformations Technology is created to make lives simpler and faster. Everyone wants better things in life, for themselves and their business. They want better resource utilisation, higher customer satisfaction ratings and bigger profit margins.

These requirements have not changed since Henry Ford made the assembly line famous.

Being tech-savvy is good; however, you don’t have to be tech-savvy to know that optimisation is the key to success. All the clients have unique sets of problem points for which they need a solution. All the emerging companies provide their clients the best solutions, which when implemented, streamlines their operations. This is done through technological excellence. Government has been showing interest towards investment in technology which also includes the need to boost the IT penetration and improve the infrastructure to achieve operational efficiencies in the logistics sector. By digitising the logistics industry, not only will the market players benefit,

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cover story

Today, amidst a range of accelerating evolutions and in an increasingly digital environment, digital transformations are affecting the next revolution of industry.

Rishi Sareen, Vice President Information Technology, Ecom Express Pvt Ltd

but also enable the end-users to enjoy the convenience and benefits of technology.

Successful implementation of the proposed infrastructural facilities and deployment of technology will provide the right push that the fragmented logistics industry requires for it to become organised.

As new companies and ideas are evolving, technology is playing the main role to solve the problems and issues that are prevailing in the industry. Rishi Sareen, Vice President Information Technology, Ecom Express Pvt Ltd said, “In an increasingly real-time economy, speed and timing are the key. Efficiency, optimisation, speed and timing have always been crucial in logistics and transportation. Today, amidst a range of accelerating evolutions and in an increasingly digital environment where digital transformations are affecting the next revolution of industry, it is even more so.

The emergence of organised players and the introduction of technology-led solutions in this sector are bringing change in this sector like never before. Companies who are ahead in providing transparency and visibility for effective decision making surely have the edge over their competitors. Logistics companies are building efficient tools to clearly and

20 CargoConnect - august 2017

instantaneously capture real-time data of orders, distributed shipments and their status, for reliable, accurate operations and efficiently tracking and preventing exceptions. Mobility initiatives enhance realtime visibility and online shipment tracking.

Smart use of IT has enabled more efficient, cost-effective movement of product through the supply chain. It also provides actionable data necessary to increase productivity, reduce costs and give the company a competitive edge.”

Rombee is a technology based organisation which provides industry solutions.

Roambee’s innovative pay-as-you-go service gives companies the real-time data required to manage shipments in transit and assets in the field. Premsai Sainathan, Director Marketing, Roambee informed, “The first wave of digitisation began a decade ago with enterprise software like ERPs or TMSs or WMSs digitising manual data to provide monthly or quarterly business insights. The drawback was that one could only know of a disruption after it occurred. The upcoming wave of change will be an IoT revolution in logistics or Industry 4.0, where a vast amount of information will be auto-captured in realtime and processed instantly through big-

data analytics to help business managers prevent disruptions. The IoT revolution coupled with the infrastructure push will drastically redefine service standards in India’s transportation sector.”

Some of the key trends to watch out for in this technology dominated era in the logistics and supply chain space are platforms, autonomous vehicles, drones, 3D printing, AI, IoT and robotics. Big Data, cloud and real-time analytics will have a large impact in the way the sector moves forward.

Unstructured data sets along with real time analytics can be used to develop firm to predictive and time bound implementations.

Jyotheesh Kumar, Co-founder and CEO, ValueShipr, one of the upcoming startups in logistics, opined, “We have already seen certain applications put forward in inventory management, forecasting and transportation logistics. From an inventory and warehousing standpoint, digital cameras and sensors through IoT networks are routinely used to monitor stock levels, fleet and the messy, unstructured data provides alerts when restocking is needed. This data can be fed through machine learning algorithms to teach an intelligent stock management systems about how to predict when a resupply will be

cover story

The first wave of digitisation began a decade ago with enterprise softwares like ERPs, TMSs, or WMSs digitising manual data to provide monthly or quarterly business insights. The drawback was that one could only know of a disruption after it occurred.

Premsai Sainathan, Director Marketing, Roambee Corporation

needed. Eventually, the theory is, warehouses and distribution centres will effectively run themselves with very little need for human intervention. Platform economy will be one of the key drivers of collaborating and connecting supply and demand and also in facilitating value added services to effectively

the use of technology, these firms empower their clients with information which provides them a competitive edge over others. Kushal Nahata, Founder and CEO, FarEye, a budding technology service provider, said, “Technology has been changing the logistics landscape in the recent times. The demand

better.”

Studies tell us that globally, the retail volume was US $585 Bn in 2016, which is expected to grow at a rate of 13 per cent CAGR and to reach close to US $1.1 trillion in 2020. If this projection is to be believed, there will obviously be a tremendous

How a typical TMS works?

ORDER READY TO SHIP

CUSTOMER SATISFACTION TOOLD

MULTI-ENTERPRISE APPLICATION

ENTER ORDER INGFO INTO CERASIS RATER

ROBUST REPORTING AND ANALYTICS

INTEGRATE FOR ORDER INFO AUTOMATION

ONE CONSILADATED WEEKLY INVOICE MAILED & ONLINE

CHOOSE A CARRIER WHO MEETS YOUR NEEDS

TRACK SHIPMENTS IN TRANSIT

MANAGEMENT TOOLS AND REPORTING FUNCTIONALITY

GENERATE A BILL OF LANDING

AUTOMATICALLY NOTIFY ALL PARTIES ELECTRONICALLY REQUEST A SHIPMENT PICKUP

ELIMINATE MANUAL PROCESSES

FREIGHT ACCOUNTING TOOLS AND FREIGHT PAYMENT OPTIONS

OPTIMIZATION CAPABILITIES

VENDOR/SHIPPER COMPLIANCE SOLUTIONS

Source: www.cerasis.com

improve transportation. An example of one such implementation is the ValueShipr platform where we look to inculcate these principles in our services.”

In the era of technology, various startups are coming up with solutions providing realtime information of the shipments. Also, with

22 CargoConnect - august 2017

for automation and mobility solutions has been on the rise with the increasing need to deliver consignments faster and better. With digital transformation hitting the industry, logistics companies including the traditional ones are adapting the new-age technologies to streamline the operations and make them

technology requirement across the retail supply chain, be it in store, in the backend small warehouse, or in the distribution centres. So, this will entail requirement of technology across the spectrum. And, this will provide greater opportunities for all the industry professionals.

cover story

We have already seen certain applications put forward in inventory management, forecasting, and transportation logistics. From an inventory and warehousing standpoint, digital cameras and sensors through IoT networks are routinely used to monitor stock levels and fleet.

The messy, unstructured data provides alerts when restocking is needed.

Jyotheesh Kumar, Co-founder and CEO, ValueShipr

The logistics sector in the country is evolving. Industries and government entities are embracing the concept of optimisation to increase profitability while boosting sustainability. A few years ago, the concept of goods transportation was restricted to the unorganised set-up of delayed deliveries

route planning and automation, but also in educating industry players about the applications of our products. We have the solution and now the industry is getting up and appreciating the benefits that these solutions are bringing in for them. Like any market driven model, logistics management

Logistics scenarios Data analytics Physical Internet standards

Cloud Logistics

Blockchain IT standards

Logistics scenarios

Robotics and automation

3-d printing

Drones

Autonomous vehicles

Source: www.pwc.com

and missed schedules. People back then took these delays as an occupational hazard and ignored the possibility of rectifying their mistakes. Dhruvil Sanghvi, Chief Executive Officer, LogiNext Solutions, said, “LogiNext has led the wagon, not just to give the clients the highest grade of

24 CargoConnect - august 2017

software would come in to the central focus as more and more companies are utilising them and reaping rich rewards. In the next five years, it will all be about quick and fast deliveries with 100 per cent location accuracy and complete end-to-end visibility. LogiNext offers all this and much more, so we know

the future is bright.” LogiNext has brought a revolutionising technology which brings the information of hub managers, on time delivery ratio, performance ratings received from customers, behaviour analysis and many other crucial points required by any good service provider. This has happened due to IoT (Internet of Things).

The tech-logistics sector is going through many technological advances and they will not only transform the sector, but will also give rise to a paradigm shift in this sector.

Sumit Sharma, Co-Founder, GoBolt said about some of these transformations, “An ever connected network of devices, vehicles and other network nodes, both on the demand side (customer premises) and supply (transporters and truck owners) will soon become the norm. Cloud and SaaS will take logistics out of archaic, clumsy and bulky softwares to on-demand, slick applications that will be available for both customers and transporters. Seamless integration and convergence of logistics into overall ERP of enterprises in plug-and-play model will not just make it easy for the enterprise to manage logistics in-house, but will also enable easy outsourcing of these operations. Machine learning and Analytics will make the entire paradigm pro-active based on the predictive analysis, predicting demand, asset utilisation and a number of other parameters.”

Grab is another startup working on the model of transforming logistics and transport through technology. Grab’s model of the crowd sourced fleet will transform how last mile logistics has happened in India.

“Conventionally, businesses used to have a set fleet of riders on fixed salaries that would deliver products to the end consumer, with last mile being the most critical and

cover story

We have the solution and now the industry is getting up and appreciating the benefits that these solutions are bringing in for them. Now, logistics management software would come in to the central focus as more and more companies are utilising them and reaping rich rewards.

Dhruvil Sanghvi, Chief Executive Officer, LogiNext Solutions

Courtesy: Morai Logistics INC.

26 CargoConnect - august 2017

cover story

Machine learning and Analytics will make the entire paradigm proactive based on the predictive analysis, predicting demand, asset utilisation and a number of other parameters.

Sumit Sharma, Co-Founder, GoBolt

By digitising the logistics expensive piece of the supply chain. With increased cost of supply and varying demand patterns of sectors, Grab has adopted the ideal approach of creating a tech ecosystem that allows individuals with spare time to contribute to the movement of goods via two-wheeler or similar assets for businesses ranging from E-Commerce to restaurants to grocers.” said Pratish Sanghvi, Director and Co-Founder, Grab.

Automation and Technology We live in a VUCA (Volatility, Uncertainty, Complexity and Ambiguous) world.

Some chief reasons can be attributed to the increasing three trends – a) Seeking convenience b) On-demand or collaborative economy c) Changing consumer profile and preferences. Introduction of technology as an enabler is accelerating the rapid transformation across sectors and activities.

28 CargoConnect - august 2017

industry, not only will the market players benefit, but also enable the end-users to enjoy the convenience and benefits of technology.

Logistics and Supply Chain are an essential component in delivering products and services to every consumer.

Adding to the upcoming transformation and automation in the industry, Kushal Nahata said, “Well, this debate has been going on ever since automation hit the industry. The technical potential for automation differs dramatically across sectors and activities. As automation technologies such as machine learning and robotics play an increasingly

great role in everyday life, their potential effect on the workplace has, unsurprisingly, become a major focus of research and public concern. Even when machines do take over some human activities in an occupation, this does not necessarily spell the end of the jobs in that line of work. On the contrary, their number at times increases in occupations that have been partly automated, because overall demand for their remaining activities has continued to grow.” Industry 4.0 is no longer a ‘future trend’. For many industrial companies, it is now a part of their strategy and research agenda. Companies are combining advanced connectivity and advanced automation, cloud computing, sensors and 3D printing, connected capability, computer powered processes, intelligent algorithms and Internet of things (IoT) services to transform their businesses.

Rishi Sareen from Ecom Express said, “Automation is changing paradigms in traditional warehouse operations. With the emerging rise of automation solutions, companies are seeking ways to maximise output, while enhancing order accuracy through the use of automated materials handling equipment, high-speed conveyor systems and robotic applications. Nextgeneration warehouses provide order accuracy and speed, particularly in high-throughput facilities, such as E-Commerce order processing warehouses where automation is becoming the norm. When it comes to highly automated facilities, warehouse control systems can provide real-time data access where the download is measured in milliseconds. It is no longer about getting ahead of the automation curve. Operating an intelligent warehouse means implementing the modern technology available in today’s arsenal of tools to keep ahead of the

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cover story

With increased cost of supply and varying demand patterns of sectors, Grab has adopted the approach of creating a tech ecosystem that allows individuals with spare time to contribute to the movement of goods via two-wheeler or similar assets, for businesses ranging from E-Commerce to restaurants to grocers.

Pratish Sanghvi, Director and Co-Founder, Grab

competition. However, customisation is the key to making software and advanced automation sync. Companies must take a holistic approach when integrating existing software applications with materials handling advancements in warehouse operations to suit their business requirements.

Dhruvil from LogiNext said, “Robots replacing employees is a debate that has been happening since decades. It is never going to happen. Machines, simple or complex, were made to optimise human effort, not replace it. With the advancement of technology, the only real ‘replacement’ would be in the mundane and repetitive tasks performed by employees. When these tasks are automated through software, or ‘robots’, it makes the employees free to implement their talent on a bigger scale. Strategy, conceptualisation, implementation and analysis would always be done by humans. Humans design robots to continue a set-up that has been tested and perfected by repeated human effort. Amazon has been experimenting with automated deliveries, but the people designing these automation algorithms are humans. With all the human talent taken away from rudimentary tasks and applied to exemplary ones, the next ‘age’ after industrialisation would surely be the ‘innovation age’.”

Recently, Hyperloop technologies has been introduced in India. As adding to the logistics curve, this technology will create a revolution in terms of connectivity. Premsai Sainathan from Roambee said, “Hyperloop can revolutionise logistics in India and even create new business models in surface logistics. If a fresh food consignment can be hauled from Ahmedabad to Delhi in two hours, more small and medium businesses can enter into new markets without having

30 CargoConnect - august 2017

to invest on cold storage.”

Hyperloop technologies are a bright spot in the near future of the country. The execution of such a grand vision would

Seamless integration and convergence of logistics into overall ERP of enterprises in plugand-play model will not just make it easy for the enterprise to manage logistics in-house, but will also enable easy outsourcing of these operations. require a dedicated and inspired approach.

“Hyperloop, however, right now is more of a concept than a reality”, said Sareen.

Some educated guesses place 2021 as the possible year of implementation. Even then,

for such a model to be commercially viable, government would have to consider the economies of scale. They would have to turn a profit without passing on the cost burden on the customer. They would have to figure a system where their resources are close to 100 per cent utilised. Even beyond that, the hyperloop model would be creating potential hubs at the corresponding end points of the tubes. These end hubs would have to be managed with absolute precision to avoid bottlenecks. This brings resource and route optimisation back into focus. If companies want to take benefit of future technologies like hyperloop, they must integrate route and workforce optimisation software within their ecosystem. This would help them amplify their first mover advantage once these technologies become a reality.

As automation and technology has also brought various questions and speculation, because all these innovations lead to the loss of employability and more dependability on machines and robots. On the same note, Premsai Sainathan from Roambee further added, “There is a common misconception that automation leads to loss of jobs. Automation in effect removes only redundant tasks and helps employees focus their energies on sustaining and improving business processes. Companies who recognise this and invest in upgrading their employee’s skills in conjunction with automation will be the candidates for hypergrowth.” India has historically been a laggard in the adaptation of technology and automation, primarily for the reason that availability of cheap labour has led to under-penetration of costly automation.

Sumit Sharma from GoBolt added, “But with the focus of new age companies shifting from cost-only approach to quality and efficient

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The technical potential for automation differs dramatically across sectors and activities. As automation technologies such as machine learning and robotics play an increasingly great role in everyday life, their potential effect on the workplace has, unsurprisingly, become a major focus of research and public concern.

Kushal Nahata, Founder and CEO, FarEye

production/services, use of robotics has seen an uptick in the supply chain systems for industries. From usage of drones to robotic arms, some industries have started adopting technology and automation. The future is bright, as there is a huge potential for other industries to follow suit and move towards more efficient supply chain management.”

Further, other technologies like

a locker instead of investing in a distribution center and have it managed by employees.

Over the next few years, logistics in India will be driven by such innovations, much of which shall replace individuals with technologies.”

Other technologies like RFID and bar code have also been used. Deep Agarwal, Regional Sales Director, India, Zebra Technologies informed, “The usage of barcode and RFID

Generating, analysing and communicating data seamlessly underpin the gains promised by Industry 4.0, which networks a wide range of new technologies to create value. digital lockers which are making the last mile delivery easier and preferential, Pratish Sanghvi from Grab added, “Many E-Commerce logistics companies are already using electronic sorters that replace manual sorting of shipments. Grab has launched digital lockers that enable E-Commerce companies to store and allocate shipments via

32 CargoConnect - august 2017

technology in logistics will increase. It indicates large scale adoption, also more and more apps and software vendors coming into this area. Another trend includes using more sophisticated technology for more productivity. People want more and more fixed mount computers rather than just handheld computers, locationing and smart

loading. We are working towards several technologies that are slowly coming up.”

“Cost” and “Speed” are the two things that are impacting the Supply Chains and companies today are looking to find a balance between the two. Self-driven vehicles, Artificial Intelligence and autonomous deliveries will make the space much more streamlined and organised.

GST: Boon or Bane As higher than optimal time is consumed per transportation, logistics costs incurred in India two to three times compared to the global benchmarks, according to the World Bank. In simple terms, the logistics cost in India is about 13 per cent of GDP as compared to about eight per cent in western countries and about 18 per cent in China. In an attempt to bring India under a unified tax on manufacture, sale and consumption of goods and services throughout India, GST has been implemented. The purpose behind this move is to have one indirect tax for India which will make the country a unified common market.

GST will be collected at every stage of sale or purchase of goods or services, based on input tax credit method. This simplification of the taxation system would make the interstate transportation of goods more efficient.

India is uniquely positioned to reap quick benefits by leapfrogging and adopting the latest technologies by collaborating with MNCs who have spent time in evolution, stabilisation and standardisation of advance technologies. On the other hand, MNCs will need a strong and capable local partner who can identify and understand pain points/ challenge areas, design and to implement a localised solution most suitable to the Indian enterprises.

GST will also inculcate centralised

cover story

The usage of barcode and RFID Technology in Logistics will increase. It indicates large scale adoption, also more and more apps and software vendors coming into this area. Other trends include using more sophisticated technology for more productivity.

Deep Agarwal, Regional Sales Director India, Zebra Technologies

warehouses and further more of distribution centres. Premsai said, “The emergence of warehousing hubs and open state-borders will lead to lower supply chain costs and faster passage of goods giving the end consumer more choice at affordable prices. In this scenario, businesses need to adopt new technologies like real-time shipment monitoring, smart warehousing and predictive analytics to stay competitive in terms of price and availability.” Faster delivery times, better asset utilisation, better supply chain planning, lower wastages and effective implementation of technology would be the key highlights of its implementation.

Jyotheesh from ValueShipr said, “The objective of introducing the GST framework is to remove the burden of multiple taxations and other entry tax hindrances currently prevalent, making the country one unified marketplace. It is anticipated that the logistics sector will gain utmost benefit from the implementation of GST. Technology

34 CargoConnect - august 2017

implementation will find its way in planning and scheduling, telematics, business intelligence, documentation automation, tracking and delivery confirmation while working with potentially automated tax systems for businesses.”

Elaborating on GST’s effect on different verticals within logistics sector, Sharma from GoBolt opined, “GST would lower the requirements of warehouses as industries such as FMCG historically had put warehouses primarily for stock transfer purposes (to take benefits of CST). With GST putting a common regime, such requirements would reduce, thereby leading to consolidation of warehouses. This would lead to technological advancement in WMS (Warehouse Management Systems) and other affiliated systems, as now focus would shift to leaner and better managed warehouses.

Robotics would come into picture for faster deliveries and better inventory management.” Warehouse management

would see restructuring with the advent of GST. Earlier, with inconsistent tax systems differing from state to state, companies used to maintain multiple warehouses across the country to achieve the lowest tax aggregate.

Dhruvil hereafter added, “With GST, there would be renewed incentive to streamline the warehouse network across the country.

Companies would revisit their logistics management ecosystem to device more optimised structures for the movement of shipments. The focus of optimization would now be the shortest and well planned routes with the most efficient field workforce management structure. The benefits emerging from this optimisation could be then passed on to the end customer.”

GST will bring about a positive change to the Indian economy and has the potential to change the landscape how businesses are done in India. Ajay Bhutani, CEO, Barcode India Ltd, said, “Since the volume of business is bound to grow and all the large enterprises

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Since the volume of business is bound to grow, the large enterprises shall go for smaller number of large warehouses or DC, rather than large number of small warehouses or DC. This shall therefore, result in the need for technology and economies of scale for deploying these technologies.

Ajay Bhutani, CEO, Barcode India Ltd

The implementation of GST is heartening, as this will enable India to become one market, improving the ease of doing business.

shall consolidate large number of small warehouses/DC to smaller number of much larger warehouses/DC, this shall therefore result in need for technology and economies of scale for deploying these technologies. This will trigger the digital transformation by enterprises by adopting technologies such as Enterprise Mobility, RFID, Sensor Networks, Cloud, Collaborative and Shared Logistics Platforms, BI and Intelligence. All these will help improve their collection of data from all their value chain and reducing operating costs while improving efficiency of operations.”

The implementation of GST is heartening, as this will enable India to become one market, improving the ease of doing business.

For example, an E-Commerce company would like to have its distribution centres in

36 CargoConnect - august 2017

each of the states, leaving scope of automation to be minimal. Post GST, there will be no tax incurred even if the goods move across several states before reaching to the end consumer.

There will be a single tax levied, on the basis of ‘place of sale’. In this situation, companies can expect to have a large, state-of-the-art, automated warehouses and distribution centres. Vikrant Yadav, Country Manager, GreyOrange said, “Consolidation of the overall supply chain will enable far higher scope for automation. The maximum impact of GST rollout will allow the company to optimise their supply chain networks based on scientific principals and logic, instead of disparate tax structures across the country, which has been the case so far.” Deep Agarwal said, “One clear emerging trend

is larger warehouse, which will lead to the emergence of technologies provided by companies like us. We can expect smaller retailers using bar coding technology as a way of inventory management and streamline the billing procedures. These are two changes that can be possibly seen in the post GST scenario. More changes will be seen as and when GST rolls out. Grab is an E-Commerce logistics service provider. Pratish added, “Since products shall freely flow into the city, thanks to the removal of entry taxes, speedier deliveries of products can be achieved by logistics companies”.

GST is being implemented from July 1.

Kushal from FarEye said, “A paradigm shift in the GST regime along with the right technologies in place will help the companies to keep the prices lower. Post GST, stakeholders expect customers to consolidate their warehousing requirement to the hub and spoke model and drive businesses to efficient transportation solutions providers.”

How is technology an aid for logistics?

With the support of government and various MNCs, India is on the path of revolutionising the whole logistics sector. The government has smoothened the way ahead for the

cover story

The maximum impact of GST rollout will allow the company to optimise their supply chain networks based on scientific principals and logic, instead of disparate tax structures across the country, which has been the case so far.

Vikrant Yadav, Country Manager, GreyOrange

transportation and mobility sector. With this development scheduling, workforce management and routing tools would be the next big thing. Companies can now target optimisation without worrying about infrastructure bottle necks. With the budget allocation for national highway development increased, better logistics planning would become the best take away from it. The budget has reinstated the focus on a growing and entrepreneurial country. It has revitalised infrastructure spending. The sector is going to benefit in a number of ways by cutting costs, increasing efficiency creating new revenue possibilities.

Sumit Sharma from GoBolt added, “The biggest inefficiency in this sector is low asset utilisation, automated operational planning, allocation based on geospatial and status data, demand and supply predictions are going to make a significant positive impact on

38 CargoConnect - august 2017

Technology improves productivity, order accuracies, reduces space requirements, provides more volume capacity and help in better management of inventory in warehouses. asset utilisation. Fuel optimisation, dynamic route planning, trip tracking and control will not just lower the fuel consumption and associated cost, but will help the environment too. Transparency and security are other few areas where the sector faces quite some

challenges. Both of these are going to be improved with this advent of technology.�

The huge amount of data, integration and convergence will give rise to a whole new breed of new revenue models for transporters, entering into the areas of spare parts, vehicle accessories, vehicle insurances etc. Deep Agarwal also added that we continuously innovate. We spend over ten per cent of global revenues on R&D. We consistently see the market and consumers, as well as look at new use cases that can pop up and try to come with solutions for them. We also work large global customers collaboratively. We do joint product development with a select few and strategic partners. This has large deployability as it helps us in understanding more and more use case situation. Such kind of collaborative ventures helps MNCs to constantly innovate and enrich their services.

As India is uniquely positioned to reap quick benefits by leapfrogging and adopting the latest technologies by collaborating with MNCs who have spent time in evolution, stabilisation and standardisation of advance technologies. On the other hand, MNCs will need a strong and capable local partner who can identify and understand pain points or challenge areas; and design and implement a localised solution most suitable to the Indian enterprises. That’s how not only the local companies are at par, but they also play the role of a helping hand and partners. Thus, technology has been a revolutionising wand to improve the lives and businesses, but also to create some fundamental transformations in the lives of people. Just like various innovative ideas have brought people to centre rather being marginalised, in the same way technology will bring more empowerment in both business and industries altogether.

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Bulk Logistics in India: Still a Long Way to Go 40 CargoConnect - august 2017

SPECIAL feature

According to experts, bulk logistics industry in India is not very well organised – rail movements are controlled by government policies and trucks are mainly controlled by the private sector. Similarly, some ports are government-controlled and some are controlled by the private sector, due to which a quasi socio-capitalistic economy prevails that cannot make a proper synergy and several bottlenecks would have to be faced by the logistics service providers.

Deepashree Banerjee analyses the facts and figures with the help of the industry experts in a quest to understand and evaluate the real status of the bulk logistics sector in India.

august 2017 - CargoConnect 41

SPECIAL feature

T

he Government of India fails to understand the ramifications of international or coastal trade and the policies always renders immense surprises and losses to the buyer and the seller. Several people resort to import substitution and the government has no problem for import substitution which leads to outflow of foreign exchange and keeping the economy under the mercy of dollar only. Recently, container ship operator Shreyas Shipping and Logistics Ltd ventured into the dry bulk segment by winning a deal from state–run steel maker Rashtriya Ispat Nigam Ltd (RINL) for transporting products from its plant at Visakhapatnam to stockyards in Ahmedabad, Mumbai and Kochi. Of the total quantity to be shipped, 60,000 tonnes is meant for Kochi, 75,000 tonnes for Mumbai and 90,000 tonnes for Ahmedabad.

Key challenges that exist in the bulk logistics industry and remedies

According to T Venkataraman, Managing Director, Goodrich Maritime Pvt Ltd, the taxation system in India, specifically the service tax on each and every service rendered makes it highly cumbersome for any logistics provider to make a cost for moving several cargoes ex-factory to loading onto the ship. If the present government aims atsucceeding in the “Make in India” programme, then the back bone of making in India, namely “Logistics,” has to be given better thought and proper understanding by the Ministry of Surface Transport. It also demands proper implementation of the G.S.T instead of just making a tax collection number on the Finance Minister’s book to show to public how much revenue collected. The Government of India has to know where to rightly tap the taxation so that buyer or sellers of goods and logistics providers are facilitated instead of getting anxious.

Binaifer F Jehani, Director, Industry

and Customised Research, CRISIL Research informs us that transport of non-POL (Petroleum, Oil and Lubricants) bulk commodities in India primarily occurs through rail, road and coastal routes, with rail and road comprising more than 90 per cent of the overall freight movement (in BTKM terms). According to her, the challenges to bulk logistics in India thus can be segregated as per the transportation modes.

Congestion a major challenge for rail freight transport The Indian Railways uses the same lines to transport passengers and freight, thereby leading to stretched line utilisation levels, with as many as 66 per cent of the total 1,219 sections operating above 80 per cent utilisation. This has led to network congestion and has thwarted efforts to increase the speed of freight trains. The past three decades have seen only a marginal improvement in the

The Indian Railways uses the lines to transport passengers and freight, with 66 per cent of the total 1,219 sections operating above 80 per cent utilisation.

average speed, from 25 km per hour (kmph) to 29 kmph. Speed on trunk routes, which constitute 16 per cent of the network ,but carry close to 60 per cent of the freight, is much lower. Moreover, freight transport is marred by delays caused by lack of newer and efficient technology, such as proper signaling and track changes, and capacity constraints. “Owing to these limitations, the Railways have been losing freight to other modes of transport for years,” says Jehani.

Average speed of freight movement through roads very low Freight transported by road in India faces challenges in terms of high transit time because of low average speeds due to poor

42 CargoConnect - august 2017

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SPECIAL feature “Tariffs of rail or port are subject to change several times and planning by a logistics company is a very difficult process and ultimately many of the logistics companies have more to lose than gain on the services provided.”

T Venkataraman, Managing Director, Goodrich Maritime Pvt Ltd quality of roads, multiple tolls, state border check-points etc. The average speed for road freight in India is a mere 33 kmph as compared to 80 kmph in the US and the global average of 70 kmph. Also hindering growth of the segment is high fragmentation of transportation providers, which leads to challenges associated with having to deal with multiple operators for long-haul cargo. The high fragmentation is evident from the fact that small players (having a fleet of 1-5 trucks) comprise 65-70 per cent share. Jehani believes that the situation is, however, gradually

with regard to nearly 50 per cent for roads.

We believe that the development of port infrastructure under the Sagarmala project and port connectivity to the hinterland will provide a fillip to coastal shipping.

Future potential of coastal movement of bulk cargo Jehani believes that presently, the use of the coastal route to transport bulk commodities is very low. “Among bulk commodities, only coal, cement and iron ore are transported via the coastal route,” she says. However, even for these commodities, the share of coastal transportation in billion

and 6-8 new ports • Port connectivity: 80+ connectivity projects, connecting ports with industries and sevendry ports • Port-led industrialisation: Setting up 14 coastal economic zones housing 12 highpotential industries Venkataraman is of the opinion that the past potential of Cabotage Laws being extremely stringent continues and future potential of coastal movement would be enhanced only when the Cabotage Laws are properly controlled. The central excise duty on bunker fuels is a wasteful duty though government aims to earn money in every front putting the seller or buyer or the logistics company in loss but if the Shipping Minister discusses these matters with proper ship operators or ship brokers then a proper growth strategy can be promulgated. “Information from the Trade and Industry is seldom taken by Ministry of Surface Transport which was I believe mainly due to the socio-capitalistic

• Port modernisation: Covers port efficiencies, 40+ capacity enhancements and 6-8 new ports • Port connectivity: 80+ connectivity projects, connecting ports with industries and seven dry ports • Port-led industrialisation: Setting up 14 coastal economic zones housing 12 highpotential industries improving, with higher investments flowing towards the development of highways.

Hinterland connectivity is a key issue for coastal shipping

Hinterland connectivity is one of the key issues that ports in India face, owing to high dependence on the road network, as freight traffic to and from ports face vagaries associated with road transport. A proxy to gauge higher share of road for freight movement to and from ports can be deduced from the fact that rail transport accounted for approximately 35 per cent of the total non-pipeline traffic is handled by the major ports in India in 2015-16

44 CargoConnect - august 2017

tonne kilometre terms is less than 10 per cent for each of these commodities, with the rest being transported through rail and road.

Hence, there is a huge untapped potential.

Through the Sagarmala programme, the union government aims to accelerate economic development in the country by harnessing the potential of the country’s coastline and river network, double the share of freight transported through waterways by 2022-23 and cut the overall logistics cost. The projects under Sagarmala include: • Port modernisation: Covers port efficiencies, 40+ capacity enhancements

way of economy whereby the government has been trying to achieve socialistic model but since the socialistic model is failing in every countries and India still doesn’t want to erase the governmental control on several businesses – the hope of coastal industry is not very bright,” he explains. In his opinion, though several good things can be done but every year the budget only offers methodology of how to raise the bunker duty or how to raise the control etc. “The coastal shipping has to be freed from the socialistic module and should be at par with the international trade including bunker prices with which only India

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“We believe that with the commissioning of dedicated freight corridors the situation will improve.”

Binaifer F Jehani, Director, Industry and Customised Research, CRISIL Research can emerge as a better coastal trade achiever,” adds Venkataraman.

Major probable changes in the next five years According to the research work conducted by the country’s largest independent and integrated research house CRISIL, over the medium term, several initiatives taken by the government are expected to start bearing fruits: As far as freight transport through railway is concerned, it is expected to gain from the total investment of `6.7 trillion on Indian Railways expected during FY 2016-20, of which nearly 10 per cent would be spent on the DFC project.

The commissioning of the Dedicated Freight Corridor (DFC) project, which involves the development of the Eastern DFC and Western DFC for transporting freight across India, is expected to ease capacity constraints.

Trend for investments in Indian Railways The Dedicated Freight Corridor Corporation of India Ltd plans to commission the DFCs in phases, with the entire DFC scheduled to be commissioned by fiscal year 2020. However, this would be contingent on completion of the Sonnagar-Dankuni stretch, which is being implemented on public-private partnership basis.

On the roads front, CRISIL Research estimates an investment of approximately `9.8 trillion over the next five years towards construction. This is a two-fold increase vis-àvis the past five years. Of the expenditure, 39 per cent would go towards national highways, with the remainder divided between state and rural roads. Investment in state roads is expected to grow steadily, with capital flows into rural roads accelerating because of higher budgetary allocation to the Pradhan Mantri Gram Sadak Yojana since 2015-16. This will decongest road traffic and ease road freight movement. Implementation of the goods and services tax will also influence road freight

46 CargoConnect - august 2017

while transportation time will reduce due to fewer toll/check-posts and efficient warehousing. The quality of roads may get impacted adversely due to plying of trucks with higher axle-loads, which tend to inflict more damage to the surface of the roads.

GST can be a little sigh of relief, believes Venkataraman; coastal Cabotage laws has to be changed or amended to a capitalistic form and allowing foreign players also to participate. Shipping Ministry of the Government of India give big jolts to ship

freight transport is expected to gain from the total investment of `6.7 trillion on Indian Railways expected during FY16-20, of which nearly 10 per cent would be spent on the DFC project. the Dedicated Freight Corridor (DFC) project, which involves the development of the Eastern DFC and Western DFC for transporting freight across India, is expected to ease capacity constraints. operators or ship charterers and many a times declare that ship chartering is a royalty and it gives a serious setback to operators or ship owners or cargo movers and each one gets totally discouraged. “I suggest for a conclave of ship brokers or ship operators with minister of shipping and the secretary of shipping at a venue like Vigyan Bhawan whereby a threadbare discussion can be held and MOS understands how to make ‘Shipping in India’.”

According to N Rama Krishna, General Manager (Marketing and Sales), Kribhco Infrastructure Limited, the logistics market in India is expected to be worth US $307 billion by the year 2020. This sector is

SPECIAL feature expected to grow at a CAGR of 15-20 percent between FY 2016-2020. Rama Krishna reveals that this growth will be driven by infrastructure investment associated with logistics development plans (ports, logistics parks, highways, freight corridors and roads), domestic demand growth, and increase in trade. he says.

The mode that is chosen to transport bulk goods is a function of several factors, such as distance, nature of the commodity, first and last mile connectivity etc. For instance, for commodities such as cement and fertilisers, transportation by road is a cheaper option for distances of 200-300 kms; after this, the

transportation through rail is more costeffective.

Jehani thinks that while a large proportion of freight transport involves a blend of multiple modes, railways is the preferred

translates into higher lead distances for freight movement. For lead distances of 500-600 kms, transportation by rail is more economical.

• Location of production and consumption

the logistics market in India is expected to be worth US $307 billion by the year 2020. This sector is expected to grow at a CAGR of 15-20 percent between FY 2016-2020. this growth will be driven by infrastructure investment associated with logistics development plans (ports, logistics parks, highways, freight corridors and roads), domestic demand growth, and increase in trade.

mode for transporting bulk commodities.

There are a few reasons behind this: • Large rakes help in faster evacuation: The railways have a much higher load-carrying capacity than roadways. A single rake can carry 2,610-3,465 tonnes, whereas a multiaxle vehicle can carry a maximum payload of only 45 tonnes.

• Lower freight rates: The cost of rail freight is considerably lower than road freight in India, making it economical to transport bulk commodities by rail on long-haul routes.

• Presence of rail sidings: Rail sidings are generally installed at plants or at warehouses by large players in the bulk commodities space. This eliminates multiple handling and last-mile connectivity cost, making it more cost-effective to transport bulk commodities by rail.

• Higher lead distances: The concentration of bulk commodities in select regions

centres: Bulk commodities involve greater primary movement as these are mostly sourced by industrial users. An ecosystem is generally built up with ties between producers of bulk freight (such as coal and iron ore) and consumers (such as manufacturing units and power plants).

This relationship helps generate high tonnage freight.

On the other hand, Venkataraman believes that at present trucking is the best medium because it is only having a perfect competition – railways being controlled by the government is not a proper medium unless forcibly it has to be used and the services are not up to the mark and rates are also not correct and the availability is quite biased. He pointed out, “As far as shipping is concerned, I can give it 40 out of 100 marks because there are a lot of things that need to be done.” To summarise, we would like to point out that a Shipping Conclave is the need of the hour.

“The increase in investment from both public and private sectors year on year will uplift the logistics sector to the next level. The logistics corridor across all the modes (road, rail, air and sea) will improve the structure of the Indian logistics market.”

N Ramakrishna, GM (Marketing and Sales), Kribhco Infrastructure Ltd

august 2017 - CargoConnect 47

feature

Multi Modal Logistics Parks Fuelling the Economy The government has been working towards formulating an integrated, multi modal logistics and transport policy which will reduce logistics cost nearly by half and it would make Indian products more competitive in the market. The plan also includes developing 35 multi modal logistics parks to serve as centres for freight aggregation and distribution, multimodal transportation and will also provide other value added services. Gaurav Dubey digs in more and explores it further as this initiative will give a boost to the Indian economy.

48 CargoConnect - august 2017

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ransportation plays a key role for the socio-economic development of a country. Efficiency of the transportation system largely influences economy’s growth as most economic activities are possible only on smooth availability of transportation system. Multimodalism as a phenomena refers to transportation of goods between two points by more than one mode of transport. This could be by road-rail, road-rail-coastal or any other combination. The distance over which the goods have to be transported is an important consideration because the characteristics of the line-haul charges and terminal charges vary widely from mode to mode.

In general, road transport is the cheapest mode of transport over short distance, railway is cheapest over medium and long distance and water transport is cheapest for very long distance. Obviously the multimodal system would work only if it is economical to the user and it would be economical if there is

Multi Modal Logistics Parks are expected to bring down logistics costs by serving four functionalities freight aggregation and distribution, Multi Modal freight transportation, storage and warehousing with modern, mechanised warehousing space satisfying the special requirements of different commodity groups and value added services, such as customs clearance with bonded storage yards, warehousing management services etc. efficiency in operations. Multimodal Logistic Parks (MMLPs) help users to take care of issues including efficient interface arrangements; goods warehouse facility, quick documentation arrangements and customs offices when import and export are involved.

MMLPs could be the way forward to reduce logistics costs in India, and the Government has been focusing to put appropriate regulatory and institutional support at the right place. Recent announcement of investing a whopping amount of `50,000 crores for setting up of 35 new MMLPs across the country is a testament of government’s commitment.

Developing a network of MMLPs to act as logistics hubs will address the issues of unfavourable modal mix, inefficient fleet mix and an underdeveloped material

50 CargoConnect - august 2017

Advantages of GST as expressed by the logistics professionals -

Under the previous tax structure, manufacturers in India were required to have warehouses in every state. The implementation of GST will facilitate emergence of key hubs in major states to allow streamlining of processes.

It will also allow manufacturers with the flexibility to have warehouses only in selected states.

There are some ground level challenges involved.

Some of these requiring resolutions are as follows:

(a) Trade performance and economic growth: Increase in organised retail sector, FMCG, textiles, consumer durables sector, auto and auto components (Auto Logistics) and India’s share of global trade. (b) Focus on Supply Chain management: Increased usage of 3PL, warehousing or storage companies by traders, manufacturers and EXIM cargo ensuring just in time delivery to the customer and reduced time for the movement of goods. (c) Government thrust on Infrastructure Development: Indian Railways investment of `100,000 crore over the next five years for dedicated freight corridor (N-S and E-W), improved port connectivity and PPP for warehousing and storage facilities on vacant RLDA land. (d) Congestion of the land transport accesses to ports: resulting from retention in ports of certain container handling or processing activities, such as container stuffing or stripping and customs inspection. (e) Poor rail (and sometimes road) access to port: It often results in extra container or cargo handling. (f) Poor coordination: This exists between rail and road loading/unloading activities in ports. (g) Institutional blockages: This is due to the free flow of transit vehicles and cargo in the hinterland. (h) Incompatible customs and immigration procedures: These exist on either side of land borders. (i) Lack of a single transport authority document: This hampers door-to-door consignments involving more than one mode. (j) A fragmented approach to railway: Impacting tariffsetting in international transport corridors, putting rail at a competitive disadvantage with other transport modes and encouraging the use of less efficient modes.

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feature Multi Modal Logistics Parks (MMLPs) will fuel economy’s growth but still there is a long way to go as the Indian logistics sector in many ways lag behind the global standards of performance. Adequate road and rail infrastructure is essential to support growth of MMLPs.” Viren Thakkar, Owner, Logistics Park PVT Ltd

Some of the revenues received from the MMLP are from:

• Rail terminal’s access charges for the use of the terminal facilities by the logistics providers or container operators.

• Rental charges for the space which has been leased or rented by various users of the MMLP. • Rental charges of the use of warehousing facilities or office space and other facilities that the MMLP developer will provide within the logistics park.

• Terminal handling charges for the use of handling equipments (cranes, forklifts and other heavy machinery) that the logistics provider will use at the park.

• There are other miscellaneous earnings that the MLP developer will earn as a result of advertisement, leasing or rental of residential properties and other value added services provided in the logistics parks.

• The value added services can act as a major business driver in the Indian logistics market. Development of logistics systems attached with ports in Singapore and Rotterdam are the examples. Value added services that bring competitive advantages to the companies would be widely accepted and will be a strong revenue stream. handling infrastructure. Logistics parks are expected to help transition from the current situation of point-to-point freight movement to an ideal situation of hub and spoke model freight movement.

The large-scale investment required for developing logistics parks and the need to leverage the industry’s best practices make the PPP model the most viable option. The involvement of a private player will enable access to the state-of-the-art technologies available with the private sector and help in achieving efficient delivery of quality operational and maintenance services. Availability of long tenured loans, assistance in land acquisition and quality of trunk infrastructure are some of the other reasons which make the participation of the government critical in the development of logistics parks.

52 CargoConnect - august 2017

In the recently concluded India Integrated Transport and Logistics Summit, Jayant Sinha, Union Minister of State, Civil Aviation has highlighted that both time and cost of logistics need to be considered while

planning for efficient logistics. Multi Modal Logistics Parks are expected to bring down logistics costs by serving four functionalities - freight aggregation and distribution, Multi Modal freight transportation, storage and warehousing with modern, mechanised warehousing space satisfying the special requirements of different commodity groups and value added services, such as customs clearance with bonded storage yards, warehousing management services etc.

Benefits of Multimodal Logistics Park The biggest beneficiary of this service would be the government and ultimately it will benefit the country as a whole. The country’s economy has been growing at an excellent rate since liberalisation of the economy.

Our GDP figures, over the years, are also reflecting the same growth story. It is also a very relevant fact that with the healthy rate of development and overall economic growth, the transport sector of the country also grew at good pace. But the transportation and logistics cost in the country are still very high as compared to the developed countries of the world like France, USA, Denmark etc.

We take more time in processing of EXIM containers, documentation, handling of

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feature Establishment of new Multi Modal Logistics Parks will make supply chain functions more smooth and efficient, it would also help in bringing down logistics cost by 1-2 per cent of GDP.” Vaibhav Rathi, Director, Satvik Logistics Pvt Ltd

The indirect benefits can be summarised as below:

• Helps in the balanced growth of all the modes of transport • Helps in optimal modal choice • Helps in proper utilisation on assets like railways or other modes of transport.

• To garner full benefits of MMLP, it motivates the government to create more freight corridors and integration of multimodal transport network. cargo etc. According to an economist, RK Vishwakarma, by developing MMLPs, the government can bring in a sea change in the way the business is handled currently.

MMLPs can also bring many benefits to the government. These can be summarised below:

thousands of crores. It is worth mentioning that apart from these costs, government is also giving thousands of crores as subsidy on

Developing a network of MMLPs to act as logistics hubs will address the issues Direct revenues to the government As a Multi Modal Logistics Park developing of unfavourable modal mix, agency, the government will be entitled to inefficient fleet mix and an collect the usage charges by the perspective underdeveloped material customers of this service. handling infrastructure.

Logistics parks are expected Indirect benefits According to a recent study conducted by an to help transition from the engineering consultancy company, the nation current situation of point-tois currently losing approximately `40,000 crore due to improper modal choice. This can point freight movement to an be due to the following reasons: ideal situation of hub and spoke • Convenience model freight movement.

• Non availability of other mode • Cheaper for the operator The government is spending a huge amount in the development of the transport sector, especially the road sector. Moreover, repair and maintenance work is also incurring

54 CargoConnect - august 2017

the POL products. Now, due to the wrong modal choice, these costs go on increasing.

The wrong modal choice can result in huge differences in the average lead in different commodities and in the ideal break even

distance (BED). It means the commodities which should have be ideally shifted to other mode especially rail is still moving by road for the longer distance of travel.

The development of the multimodal parks can be of great help in reducing the said costs for the country. This is because the MMLPs will push for the right choice for the modes as it gives the right balance of all the modes and services at one place. In other words, MMLP will promote the optimal modal choice by the operators.

Conclusion In an emerging economy such as India, MMLP will provide the required logistical capacities to utilise rail transportation and ensure long lasting and sustainable economic growth.

MMLPs are an indispensable part of industrial infrastructure development. They reduce logistics costs and guarantee continuous and stable supply chains. Integration of container, bulk and warehousing services with linkage to road, rail and ocean or air-freight offers one stop shopping to logistics customers looking to configure their supply chains.

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feature

Livestock plays an important role in the socio-economic life of India.

Rising incomes, fast growing urban population, and globalisation of agri-food markets are opening up new opportunities for faster growth of livestock sector. The survival and development of livestock products are more and more dependent on the overall quality and comprehensive strength of the supply chain. Nicin Varghese talks about the growing importance of livestock cargo and its supply chain complexities.

56 CargoConnect - august 2017

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ivestock sector includes animal husbandry, dairy and fisheries sector which are considerable major sectors. It plays an important role in the national economy and in the socio-economic development of the country. It also plays an important role in the rural economy as supplementing family incomes and generating gainful employment in the rural sector, particularly among the landless labourers, small and marginal farmers and women.

India has witnessed an impressive demandled growth of over four per cent in its livestock sector in the past four decades. This cushioned agricultural growth helped reduce poverty and improve food and nutritional security. For the past two decades or so, India has retained its distinction of being the largest producer of milk in the world, and lately it has emerged as the largest exporter of bovine meat, mainly buffalo meat. Milk is now the largest agricultural commodity in both physical and value terms.

India’s livestock sector is one of the largest in the world. It has 56.7 per cent of world’s buffaloes, 12.5 per cent cattle, 20.4 per cent small ruminants, 2.4 per cent camel, 1.4 per cent equine, 1.5 per cent pigs and 3.1 per cent poultry. In 2010-11 livestock generated outputs worth `2075 billion (at 2004-05

58 CargoConnect - august 2017

prices) which comprised four per cent of the GDP and 26 per cent of the agricultural GDP. The total output worth was higher than the value of food grains. India has developed a strong and professionally competent technical, marketing and business manpower in livestock production. Comparatively lowcost skilled manpower in India is a great asset that is attracting foreign investors.

India has 56.7 per cent of world’s buffaloes, 12.5 per cent cattle, 20.4 per cent small ruminants, 2.4 per cent camel, 1.4 per cent equine, 1.5 per cent pigs and 3.1 per cent poultry.

value chain can be defined as the full range of activities required to bring a product (e.g. live animals, meat, milk, eggs, leather, fibre, manure) to final consumers passing through the different phases of production, processing and delivery. It can also be defined as a market-focused collaboration among different stakeholders who produce market value-added products. Value chain analysis is essential to an understanding of markets, their relationships, the participation of different actors and the critical constraints that limit the growth of livestock production and consequently, the competitiveness of smallholder farmers. Livestock trade is more competitive and functions better within countries (domestic segment) than between countries (cross border segment). This is mainly due to the high capital outlay, lack of credit and increased risk of losing animals associated with cross-border trade.

Strict Rules for Transportation Via Roads Transporting Live Animals Livestock products are perishable and need to be transported immediately to the consumption centres or converted into less perishable forms, but the processing, storage and refrigerated transport is underdeveloped.

It is therefore essential to develop value chains for livestock products. The livestock

The Government of India has issued a circular stating that from January 1, 2016, stricter rules shall apply to the transportation of animals to slaughterhouses. On July 8, the transport ministry’s circular introduced the eleventh amendment to rules under the Motor Vehicles Act, 1988. The amendment deals specifically with the transportation of livestock meant for slaughter and seeks to

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feature We ensure the animals receive special care and treatment all the way, on the ground as well as in the air. As a committed member of IATA, we comply with the Live Animal Regulations, which set out strict guidelines regarding the welfare of animals during transportation.�

Ulrich Ogiermann, Chief Officer Cargo, Qatar Airways Cargo

curb their mistreatment. Vehicles meant for transporting livestock are to be permanently partitioned to allow individual carriage of animals and prevent overloading. The amendment further specifies that the size of partitions should not be less than 2 sq m for cows and buffaloes, 2.25 sq m for horses and mares, 0.3 sq m for sheep and goats, 0.6 sq m for pigs and 40 sq cm for poultry. Vehicles without special licenses issued by the regional transport officer will not be allowed to ply on roads. The circular also notifies that vehicles meant for carrying livestock will not be permitted to carry any other cargo.

for many years. The unfortunate incident involving 57,000 Australian sheep stranded aboard the livestock transport ship MV Cormo Express for more than two months in 2003 after the shipment was rejected by Saudi Arabia, focused worldwide media attention on the welfare of animals transported by sea. An important principle is that once the decision to transport animals by sea has been made, the welfare of animals during their transport is paramount and is the joint responsibility of all people involved. The Guidelines identify the main parties involved in the sea transport of animals and outline their responsibilities.

Live Freight via Sea

Cattle Carriers: Lifeline of Livestock

Animals have been transported by sea, as well as across lakes and rivers, for centuries. The main reason for transporting animals by sea is to satisfy a commercially driven demand which usually involves breeding, immediate slaughter, or feeding and subsequent slaughter. There have been concerns about the welfare of animals transported by sea

Ships that are used for the purpose of transferring cattle across the seas are known as livestock carriers or cattle ships.

Without the help of such ships, livestock transportation and livestock shipping would have been extremely difficult or completely impossible. The animals that are used in such livestock carriers include sheep, goats,

60 CargoConnect - august 2017

cows and other forms of cattle. Such transfer of cargo with animals as the main items of transportation is carried out as an importexport operation. This is why all animal cargo-carrying operations are required to be approved and licensed by the appropriate authorities.

The purpose of a cattle carrier is that it should be designed in such a way that it can carry animals. The animals should survive in the cattle carriers and they should survive well. Sometimes ferries and small boats are used as cattle carriers. However, this is possible only for a short distance. For long distance, you will definitely need a well-built cattle carrier. If the cattle carriers are not well designed the livestock in it will catch infection and may also die. This can be a huge loss to the owner. Depending on the requirement the livestock on cattle carriers may have to live for few days to a few months too. There are two different types of cattle carriers; • Open Cattle Carriers As the name itself suggests open cattle carriers have pens installed on the deck itself. This is exactly why they are exposed to the weather all the time. This is a good idea as the livestock gets natural ventilation. However, this cannot be used when the ship meets with bad weather.

This can also be a bad idea if the ship is on a long voyage as due to open deck the livestock may suffer from a storm or a bad weather. • Closed Cattle Carriers The continuous winds and the illeffects that these winds tend to have on the livestock led to the concept of the mechanised or closed pens. These closed pens are not located on the deck but are situated in the interior of the ship (below decks) where the winds cannot reach the animals. Such closed pens require continuous monitoring because if they are

feature The Frankfurt Animal Lounge features a spacious 4,000 square meters’ area for handling, animal coordination and also activities of the Veterinary Inspection Office. There is a transit area separated from the rest of the station to prevent the spread of disease, as well as an import terminal and an export area.”

Dirk Schusdziara, Senior Vice President Cargo, Frankfurt Airport

Livestock trade is more competitive and functions better within countries (domestic segment) than between countries (cross border segment).

carelessly left untended, then due to the lack of cleanliness and hygiene, the animals could contract diseases and die even before reaching the intended port of destination.

Live on Air There are many reasons why people wish to transport live animals. The animals may be personal pets, or guide and assistance dogs.

They may be sporting animals, agricultural animals for breeding, food animals being transported for slaughter, zoological animals and species being transported for reasons of science. Transporting animals for long periods of time is considered unnecessarily cruel and to be avoided whenever possible.

Therefore, for long journeys the only speedy option is to use aircraft. As air transport is the most humane way of transporting live animals on long journeys, it is important to ensure high standards are maintained by all those involved: veterinary inspectors, animal keepers, handlers and attendants, container

manufacturers, air carriers, pilots etc. This is best achieved through regulation and oversight. The speedy travel by air has reduced the travel time which used to be an effective barrier when the transport was done by sea.

How Do Major Air Cargo Players Handle Livestock?

Keki Patel, Cargo Manager - India and Nepal, Emirates SkyCargo describes how they handle the livestock cargo. “Emirates SkyCargo has designed a transportation environment to ensure animal welfare, while complying with all the codes of practice set by national and international authorities, including IATA live animals regulations and requirements. For horses, Emirates SkyCargo offers trained and experienced expert personnel to ensure proper handling and welfare of the horses, custom-designed horse stalls, controlled temperature zones set up in the aircraft to ensure maximum comfort and minimal stress for the horses

with a provision for professional grooms and certified vets to travel with horses. Every year, we transport horses to a number of major sporting events across the world.

We also provide a comfortable and safe transportation solution for pets with a dedicated team of animal experts at our hub and with robust and animal welfare oriented processes at all locations,” he said.

On similar lines, Ulrich Ogiermann, Chief Officer Cargo, Qatar Airways Cargo explains the customised services provided by them for livestock cargo. “Our QR Live products provides stress-free and comfortable transportation of horses, pets, exotic animals and livestock from origin to the final destination. In cases where transit in Doha is required, our state-of-the-art cargo terminal at Hamad International Airport has a fully-equipped live animal facility and a team of experienced ground and animal handling staff to provide round-the-clock care for live animals. We ensure the animals receive special care and treatment all the way, on the ground as well as in the air. As a committed member of IATA, we comply with the Live Animal Regulations, which set out strict guidelines regarding the welfare of animals during transportation,” he said.

“The spacious 4,200-square metre airconditioned live animal facility at our Doha hub is designed with special features including: large holding areas for horses, eight stalls for horses (300cm x 300cm each), a 24/7 dedicated expert animal health care service, 300-square metre paddock, rubber pavers for soft walk area, hydraulic loading and unloading docks as well as hydraulic workstations. We also offer a dedicated equine product, offering professional care, red-carpet treatment and world-class service for the transportation of thoroughbreds. With a modern fleet of Boeing 747, Boeing 777 and Airbus 330 freighters offering controlled temperature zones, a

august 2017 - CargoConnect 61

feature For horses, Emirates SkyCargo offers trained and experienced expert personnel to ensure proper handling and welfare of the horses, customdesigned horse stalls, controlled temperature zones set up in the aircraft to ensure maximum comfort and minimal stress for the horses with a provision for professional grooms and certified vets to travel with horses.”

Keki Patel, Cargo Manager India and Nepal, Emirates SkyCargo

network of more than 150 destinations, comfortable and spacious horse stalls and seats for grooms on board the freighters, the service guarantees the care, comfort and safety of the equine guests,” he continued.

With about 100 million live animals of all types flown via Frankfurt, live animals are a very important transport good for Frankfurt Airport. They have several ways to make sure that the animals get the best treatment possible.

“FRA has the world’s most modern animal station at any airport,” says Dirk Schusdziara, Senior Vice President Cargo, Frankfurt Airport. “Some 50 highly qualified employees and trained animal keepers ensure professional and appropriate care. The Frankfurt Animal Lounge features a spacious 4,000 square meters’ area for handling, animal coordination and also activities of the Veterinary Inspection Office. There is a transit area separated from the rest of the station to prevent the spread of disease, as well as an import terminal and an export area. A total of 42 large animal stalls which are up to 28 square meters in size, 39 small animal pens, special aviaries and 18 individual climate-controlled chambers offer space for a variety of species. Outside of the

62 CargoConnect - august 2017

The transport of live animals requires expert and sensitive handling and full compliance with the rules laid down in national laws and similar other regulations.

animal station, we make sure animals continue get the best treatment possible,” he continued.

Animal Quarantine Stations The purpose and scope of setting up of Quarantine Stations is to prevent the ingress of dangerous exotic diseases into the country through imported livestock and livestock products. The increased and faster international trade and travel exposed every country to the danger of infiltration of known and unknown transmissible diseases which have the potential of very serious and rapid

spread, adverse socio-economic and human or animal health consequences. As livestock may covertly carry pathogens without showing overt signs of clinical disease, they must be held in quarantine for observation and testing to establish their pathogen free status before release. Keeping this in view, Government of India initiated a central sector scheme namely ‘Animal Quarantine and Certification Services’ (AQCS) during the Fourth Five Year Plan (1969-74) under which four Animal Quarantine stations were set up at Delhi, Chennai, Kolkata and Mumbai and now two more quarantine station at Hyderabad and Bangalore in 11th plan. The responsibility of preventing ingress of exotic diseases including zoonotic diseases and thereby safeguarding the health of country’s livestock population lies solely with the Animal Quarantine and Certification Services.

Let The Journey Be Safe The transport of live animals requires expert and sensitive handling and full compliance with the rules laid down in national laws, the IATA Live animal regulations (LAR) and other regulations such as CITES, an intergovernmental treaty aimed at protecting endangered wildlife. When it comes to an actual shipment, various considerations would also need to be taken into account, from the type of animal, breed, age and possible temperature requirements. First and foremost, we need to know what breed the animal is.

There are certain animals that are not fit for transportation. Certain animals are endangered and cannot be exported or imported. The application of the third-party logistics in the supply chain of livestock products reduces distribution costs, improve circulation efficiency and achieve maximum efficiency of the supply chain, which is conducive to achieve the logistics standardisation. This mode is the logistics development direction of national livestock products.

feature

Dedicated Freight Corridors: End of freight woes

The Dedicated Freight Corridor Corporation of India (DFCCIL), a special purpose vehicle of the Indian Railways, has the mandate of developing six DFCs across the country, of which the Eastern DFC and the Western DFC are being built at present, with funding assistance from the World Bank and Japan International Cooperation Agency, respectively. Deepashree Banerjee discusses the various opportunities coming up with it.

64 CargoConnect - august 2017

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A

fter a prolonged delay due to issues ranging from environmental clearances to land acquisition, work on the Dedicated Freight Corridor (DFC) projects is on an even keel, with the first stretch of the Western DFC likely to be operationalised by March next year. The DFCs will increase the average speed of goods trains from the present 25 km per hour to 50-60 km per hour, besides decongesting the Indian Railways’ network.

Noting that a lot of work was required to be taken up on the freight corridor, Railway Minister Suresh Prabhu recently said the land acquisition issue had been resolved.

A 190 km double track between Ateli and Phulera on the Western DFC will be operationalised by March 2018. The entire

The DFCs will increase the average speed of goods trains from the present 25 km per hour to 50-60 km per hour.

Western DFC (from Dadri near Delhi to the Jawaharlal Nehru Port Trust in Mumbai) would be made operational by December 2020. The Eastern DFC (from Mughalsarai to Ludhiana) is scheduled for completion in June 2020. The first stretch on the Eastern

DFC will be commissioned by August 2018.

With two machines at work, the average rate of track-laying is around 1.5 km a day at present. Two more machines are likely to be made available by June.

The Dedicated Freight Corridor Corporation of India (DFCCIL), a special purpose vehicle of the Indian Railways, has the mandate of developing six DFCs across the country, of which the Eastern DFC and the Western DFC are being built at present, with funding assistance from the World Bank and Japan International Cooperation Agency, respectively. The total track length of the two DFCs is around 3,300 km.

The axle load capacity of the DFCs will be 32.5 tonnes, which is 1.5 times that of the Indian Railways. The net tonne km on DFCs will be 40 per cent of that for the IR network, bringing down operation costs drastically. This is expected to help address

“The dedicated freight corridor is a big game changer and after our government came to power, we have fast-tracked and awarded new contracts of 24,000 crores in our effort to complete it by 2019.”

Suresh Prabhu, Union Railway Minister

august 2017 - CargoConnect 65

feature the problem IR faces of freight rates being kept high to cross-subsidise passenger operations.

Subsidy on passenger operations worked out to `30,000 crores in the last financial year.

Eventually, 70 per cent of the freight traffic on the IR network will shift to the DFCs. While the Eastern DFC is expected to mostly cater to coal, iron ore, steel, cement, food grain and roll-on-roll-off traffic, the Western DFC will ensure container, fertiliser, imported coal, petroleum products, automobile and cement transportation. Traffic on the Eastern DFC is projected to increase from 181.7 MT in 2026-27 to 251 MT by 203637, while the corresponding figures for the Western DFC are 203.3 MT-284.3 MT. Work on the project has also entailed upgrading the feeder routes, i.e. tracks connecting ports, factories, etc, to the DFCs. “This is to ensure that rakes on DFC can enter

What sets DFC apart?

Freight train speed Freight train vital stats Locomotive power

Indian Railways Network

Dedicated Freight Corridor Network

Average kmph

Average kmph

25

75

Max speed kmph

100

700 58 5,000 15000 120 13,000 mts wagons tonnes

4000-5000

mts

wagons

12,000

tonnes

9,000

HP

HP (Eastern Corridor)

Laying of track

100-150 mts/day

Mechanised

Time-tabled freight trains

Will initiate on Pilot basis

All trains will run as per timetable

Manual

HP (Western Corridor)

1.5 km/day

“The only way the railways can increase its revenue is by enhancing efficiencies as neither freight nor passenger fares can be changed.”

D S Rana, Director Finance, DFCCIL the feeder routes. Almost 85 per cent of the feeder routes have already been upgraded,” says DS Rana, Director, Finance, DFCCIL. In all, 6,000 km of feeder routes will be linked to the two DFCs. As for the other four corridors, survey work for the projects has been completed. These four DFCs will have a total length of 7,000 km.

The South-East DFC, connecting Howrah and Vijaywada, will be taken up next and DFCCIL is trying to tie up funding for the purpose.

“The rate of return on this corridor would be around 22 per cent as iron ore freight is high on the route,” says Rana.

Rail freight corridor may lead to lower bidding for road projects The construction of a dedicated rail freight corridor may lead to investors lowering their bids for road projects, even as more and more stretches of the Railways have started moving trucks on trains, says a research paper.

According to Crisil Research estimates,

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the first 75 operational highway projects tendered under the toll-operate-toll model may fetch around `40,000 crores against original estimates of about 70,000 crores, which was later revised downward. The lowering of bids are likely because investors would factor in the freight-heavy nature of national highway traffic in India, the associated volatility and the reduction in road freight growth expected after the implementation of the Dedicated Freight Corridor (DFC) by the Railways, Crisil said in a release. The calculation assumes annual toll revenue growth of 7-8 per cent and return on equity of 14-16 per cent.

Theoretically, `40,000 crores can fund the construction of 2,800 kms of four-lane national highways.

Further, implementation of the Goods and Services Tax (GST) regime, while not necessarily negative for road traffic, may alter the type of vehicles that would be used on certain routes.

Allowing global bids only for projects with land, green clearances In a bid to make India’s vast infrastructure sector more attractive to foreign investors, a senior government official has suggested that India should open only projects that have secured land acquisition and environment clearances for international bids.

Amitabh Kant, Chief Executive Officer of NITI Aayog said, “As the infrastructure sector opens up in India, it is important that when many of these projects are structured, they are de-risked with all approvals, including land and environment, taken upfront and put in the SPV (special purpose vehicle). Then, the SPV itself should be bid out, so that international companies can come in and play a major role and they don’t have to run around getting clearances,” Kant remarked while addressing a seminar on Quality Infrastructure: Japanese Investment in India organised by New Delhibased thinktank Centre for Policy Research and the Japanese Embassy.

feature Instances of foreign infrastructure projects languishing for want of environmental clearances are common in India. Projects slowing down or coming to a halt due to the lack of land acquisition permissions are also common. Land acquisition problems have dogged the Dedicated Freight Corridor (DFC) Project, under which freight railway lines will be constructed along the Western Corridor between Delhi and Mumbai and the Eastern Corridor between Ludhiana, Delhi and Son Nagar. The DFC is an important part of the Delhi-Mumbai Industrial Corridor (DMIC) initiative, which is an India-Japan collaborative project for comprehensive infrastructure development to create India’s largest industrial belt zone, linking the industrial parks and harbours of

DMIC shall include industrial parks and logistics bases up to 150kms on either side of the Western Corridor

He also indicated that India’s future for infrastructure lies with Japan and in many ways the future of Japan does not lie in Japan, it lies in India. Kant also welcomed Japanese firms to be “cost-competitive” and take more risks in India.

Citing the example of Canada’s Bombardier, Kant said that the firm had created a manufacturing base in India and was producing Metro train coaches for the Indian as well as the Australian markets.

With eye on 2019 elections, PM orders to shorten deadlines of the project the Western Corridor. Besides this, India is seeking investment in roads, ports, railways and other areas.

Presently, Prime Minister Narendra Modi had asked all government departments to bring forward the deadlines for flagship projects.

Besides, the Prime Minister’s Office has told

“As the infrastructure sector opens up in India, it is important that when many of these projects are structured, they are derisked with all approvals, including land and environment, taken upfront and put in the SPV (Special Purpose Vehicle) and then the SPV itself should be bid out.”

Amitabh Kant, Chief Executive Officer, NITI Aayog the six states between Delhi and Mumbai in order to promote foreign export and direct investment.

Under the DMIC initiative, plans are also being implemented to create industrial parks and logistics bases with well-developed infrastructure up to 150km on either side of

Kant in his speech opined that Japanese companies in India should be provided with a conducive ecosystem to “enable them to create top class quality infrastructure in India because it will be very difficult for us to create good quality infrastructure of the next century.”

all departments to take stock of projects and programmes and provide a road map up to March 2020. The intent is that at least a host of big projects are completed before the 2019 general elections and the benefits of welfare programmes reach the intended beneficiaries on a massive scale before the polls. Sources said that ministries have been directed to closely monitor ongoing projects so that the shortened deadlines can be met without fail.

According to a concerned official, the idea is to identify projects which are of public importance and must be delivered on a priority basis.

The Dedicated Freight Corridor (DFC) project is one of the identified projects. The concerned department has been ‘sounded that come what may’, as a concerned official opined, major portions of the Eastern and Western DFC should be commissioned. In an overview meeting held recently, Railway minister Suresh Prabhu also assured that December 2018 should be the final date for commissioning these DFCs, though February 2019 could be considered as well.

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Interview

Enhancing Transparency in Logistics

68 CargoConnect - august 2017

As technology is spreading its wings all over the country in all the pertinent sectors, DMICDC Logistics Data Services (DLDS), an extraordinary initiative, is a joint venture between Government of India represented by Delhi Mumbai Industrial Corridor trust implementation fund and Japanese IT major NEC Corporation.

Alkesh Kumar Sharma, CEO and MD, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) and Chairman, DMICDC Logistics Data Services Limited (DLDS), in an exclusive interview with Sheena Sachdeva talks about the insights of the initiative and its further plans.

India’s economy is booming now. How do you think the logistics industry is coping with the volume of growth?

India is considered to be a great economy which will see its full potential in the coming years. Given are few points which further describe the role of logistics along with its forthcoming growth plans: • India’s GDP grew by 7.3 per cent in Financial Year 2015-16, becoming the world’s fastest growing economy. The International Monetary Fund (IMF) predicted that India would retain the status of fastest growing economy until 2020 • Various government initiatives such as Make in India, Smart City, Digital India and Skill India are drivers for such growth • Relatively low Information Technology (IT) penetration in logistics sector is resulting in operational inefficiencies and transport and logistics, being a fragmented market, needs to be brought up to speed with the industry requirements • The industry as a whole has moved from being just service provider to the position where they provide end to end supply chain solutions to their customers

W hat do you see would be the challenge s that impede India’s economic growth?

Logistics cost in India is about 13-14 per cent of the GDP, as against 7-8 per cent in developed countries. Given are the key challenges: • Poor infrastructure: public transportation, roadways, housing, sanitation, power facilities • H igh popu lat ion wherei n t ra i ned manpower availability is weak and lack of training institutions for addressing the same is very less • Trade Regulations: Imposed by national, local, regional authorities which differ from city to city

logistics community. These processes results in an increase in overall logistics cost.

How do you improve such a situation?

We can improve the situation with few key policy reforms given below: a) Development of Physical Infra: DMIC, DFC, Highways b) Effective IT infrastructure to compliment the Physical Infra (Solutions like LDB) c) Multimodal shift from Roads to Rail d) Simplification of Trade processes – Process reforms e) Enhance Transparency of logistics shortening shipping lead times, reducing inventory levels and improving the accuracy of production plans f) Implementation of GST g) Transport and logistics, being a fragmented market, needs to be brought up to speed with the industry requirements, especially w ith respect to the relatively low Information Technology (IT) penetration, which results in operational inefficiencies

Can you tell us briefly about the “Make What is the role of DMICDC? Delhi - Mumbai Industrial Corridor (DMIC) is India’s most ambitious infrastructure programme aiming to develop new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors. The objective is to expand India’s Manufacturing and Services base and develop DMIC as a “Global Manufacturing and Trading Hub”.

The programme envisages development of infrastructure linkages like power plants, assured water supply, high capacity transportation and logistics facilities as well as softer interventions like skill development program for employment of the local populace.

W hat is the tr anspor t / logistic s situation like in India right now?

During the project conceptualisation, how did DMIC arrive at choosing the most appropriate technology for this project?

There is an unfavourable modal mix that is skewed towards roads as a major mode of transportation, along with underutilisation of other modes — rail, shipping and inland waterways. More than 60 per cent of freight and 90 per cent of the passenger traffic in the country are handled by road unlike other developed countries which effectively utilise rail mode of transportation. However, more goods moving by road increase congestion across roads, increase in fuel costs to the government and depleting profits for the

During the feasibility study and at time of project conceptualisation, to provide the near real time tracking of the container movement, different prevailing technologies like Radio Frequency Identification (RFID), Global Positioning Satellite based system (GPS) etc. were evaluated. Further, based on the requirement of tracking over long haul distance, capital investment requirement and operational feasibility, RFID technology was considered to be a more optimum choice over GPS for the purposes of LDB system.

What benefits do you envisage of NEC’s logistics visualisation solution/LDB system?

LDB would bring in visualisation and transparency in the entire value chain empowering the users in effective decision making and in achieving shorter lead time and reduced cost. Provide detailed near real time “container in transit” information within a single window. LDB would help streamlining the operations across the value chain and shall contribute in reducing the lead time by approximately five days, which would help in savings of approximately US$ 3.2 Billion within the five years of its operation.

Value Added Services: • Comparative metric analysis which would enable the Government of India, State Governments, importers, exporters and other stakeholders to assess comparative performance.

• Identify inefficiencies and bottlenecks to develop strategies to ensure the development of the sector.

Please tell us about DMICDC Logistics Data Services Ltd and its current operations in India.

• DMICDC Logistics Data Services (DLDS) Ltd, a 50:50 joint venture between DMIC Trust and Japanese IT Major, NEC Corporation, has successfully provided container visibility service for approximately 3 million Export/Import containers of the JNPT. • Four JNPT Port Terminals, 12 toll plazas and 34 CFS/ICDs are currently operational in the western corridor providing visibility services. Four port terminals at Mundra and one port terminal at Hazira are now operational for providing container tracking services through LDB Portal.

• With the coverage of Mundra and Hazira Port terminals, DLDS would be able to provide container tracking services to approximately 70 per cent of the container traffic in India.

What are the expansion plans of DLDS in India?

After implementing LDB system at JNPT and Adani Port Terminals of Gujarat, we plan to extend our services to the other ports of the western corridor. In the next phase, we also plan to extend the visibility services to other ports across India. We are also looking at providing visibility services in the area of bulk cargo tracking and explore other technologies like port gate automation opportunities at port terminals, yard management etc.

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Interview

Swiss WorldCargo is an air freight carrier that likes to innovate, and in a move to keep pace with the modern challenges of global logistics, it has created a new organisational structure and revealed a further push into digitalisation. As part of its efforts to improve transparency in the supply chain, the air freight carrier last year allowed a series of active tracking and monitoring devices to be used on aircraft. In an exclusive conversation, Shankar Iyer, Head of Cargo. Africa, Middle East and India at Swiss WorldCargo talks to Deepashree Banerjee extensively about the company’s USPs and the projects in the pipeline.

investing in finding the right partnerships How do you tackle the two major determining factors in today’s air cargo business – the increasing need for customisation and the complexity of the regulatory framework?

SWC has positioned itself successfully as niche carrier, where we have an eye for commodities which need specific attention and handling. Our size gives us the agility to swiftly respond to our clients’ needs for a

70 CargoConnect - august 2017

tailormade adaptation. We strongly focus on customer centricity and vertical industries.

We make sure we design the “perfect fit” for our customers in terms of products and services and to do so, we work closely together with our customers. The DHL care award is an acknowledgement of SWC’s strong pharma background. We provide the right business approach, infrastructure, facilities and solutions to meet the logistics

needs of today’s pharmaceutical and healthcare customers.

Air cargo standards for handling time and temperature sensitive cargo are becoming more stringent. How does Swiss WorldCargo ensure an unbroken cool chain?

We have a vertical industry approach – a dedicated team based in Zurich is there

to acquire the industry knowledge and expertise and steer suitable solution offers.

Two important aspects of this approach are creating a pharma mindset throughout our organisation through training and establishing a closer communication and cooperation with all stakeholders, including shippers. We constantly work on differentiating our product offer and enhancing our service portfolio to meet customer needs. In 2016, we launched a doorto-door reliable passive solution through cooperation with Va-Q-tec.

We i nve st i n f i nd i n g t he r i g ht partnerships and improving our processes.

The latest industry developments have raised the demand for more diversified temperature ranges, which requires partnering with cutting-edge providers of temperaturecontrolled containers solutions.

Transparency and visibility are also important, which call for the use of more and more sophisticated real-time tracking devices that monitor temperature throughout the cool chain. The use of Active Tracking Devices has been allowed on SWISS flights since November 2016, and a 24/7 intervention team is in place, and is ready to react in case of any deviation.

At Zurich Hub, in cooperation with our ground handling partner Cargologic, we have been focusing heavily in infrastructure quality and handling standards for pharma shipments. Zurich Airport, which has the great advantage of being small and flexible, with short tarmac times which are definitely a USP in terms of risk mitigation. It has become one of the world’s leading hubs when it comes to pharma handling.

Cargologic handling facilities at Zurich Airport were among the first in Europe to be fully GDP compliant by the Swiss drug registration institution Swissmedic (2014). In 2015, our partner also obtained the “Center of Excellence for Independent Validators” (CEIV) certification from IATA for the handling of pharmaceutical products.

Across our network, we aim to establish “quality corridors”, a network of certified pharmaceutical lanes that meet consistently the highest quality standards and a product integrity. The first corridor was launched last year between Zurich and Singapore, thanks to the certification of our handling partner at Singapore Airport, SATS. We are now working on replicating this model to have many more pharma lanes

certified, we are currently talking to our handling agent partners to identify and prioritise the key pharma lanes where we want certification. We are happy to report that we are very advanced and we will therefore be able to offer a solid certified network in the near future.

Livestock is a growing branch in air cargo market. Swiss WorldCargo is held as one of the most highlyregarded air cargo carriers for the transportation of live animals, Can you please explain about the customised services provided by SWC on this aspect?

If we are one of the most highly regarded carriers for AVI (IATA code used for live animals), it is because we care about all aspects adding to the well-being of all animal species travelling on our network. We are constantly investing in improving processes and facilities that cater to the needs of live

We make sure we design the “perfect fit” for our customers in terms of products and services and to do so, we work closely together with our customers. animals across the complete air cargo journey.

At our stations, we have trained live animals experts who ensure adherence to the relevant IATA regulations. At Zurich Airport, the state-of-the-art animal centre, is optimum environment for animal transfers to various locations across our network.

W h a t i s y o ur f u tur e p l a n s o n expanding Sw is s Wor ldC argo’s territories?

We do not have any new routes planned.

We have adapted our flight timetables based on the demands and needs of our customers. The frequency of our quality services to Boston, Chicago, San Francisco, Montreal, Nairobi, Dar es Salaam and Beijing has particularly increased with the SUTT 2017 (Summer Timetable 2017). Since

the beginning of 2016 we have invested a lot in terms of fleet development; we are renewing our fleet age and replacing old aircraft. Therefore, in terms of capacity we don’t have a strong growth in the next year to come. Last year, the B77ER (7 aircraft on intercontinental routes to Asia, South America and the US West Coast) and the brand-new SWISS Bombardier CS100 (5 aircraft, on short haul routes) successfully entered service; this year, the CS300 has also been introduced in the European network.

A total of six CS100s are now in scheduled service, and one further aircraft is expected to be delivered roughly every month, rising to two deliveries a month at some points later in the programme. All 30 C Series aircraft should be delivered as scheduled by the end of 2018.

Tell us about your cargo services in Indian market and your current cargo capacity in India.

We offer daily flights to Mumbai and New Delhi from Zurich, served with an A330 aircraft which offers a payload of 19 tonnes approx offering a monthly inbound and outbound capacity of 550 tonnes approx in each direction. Our steady performance over the years has placed us in top 15 slot out of Mumbai and New Delhi airport.

What does it mean to be an IATA certified air freight forwarder? What are the other important certifications that can upgrade an air freight forwarder?

At SWC, we welcome the CEIV initiative as it gives the air freight community tools to improve competency in handling air pharma. It is a complex process and requires clear resource allocation. Overall, we will hopefully see improvement in quality when it comes to moving pharma. Of course, the CEIV certification will ultimately add value if all the players across the cold chain namely forwarders, handling agents, airports, trucking companies, airlines are involved.

What is your take on the much discussed Open Skies Policy by the Government of India?

This is a tried and tested policy over two decades. The Indian exporter has benefited and India as a country has also benefited with boost in its exports, of which airfreight forms an intergral part.

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Interview

Out of Indian trade, 95 per cent by volume and 70 per cent by value is done through maritime transport.

How do you see the role of ports in the economy?

Ports are significant as they link any country’s hinterlands with overseas points and facilitate industrialisation. Port based industrialisation helps in achieving reduction of logistics cost and time for movement of EXIM and domestic cargo thereby leading to enhancement of global competitiveness of Indian manufacturing and maritime sector. Some of the important social- economic benefits of port are economic development, development of cities, increase in employment, increase in economic integration and development of infrastructure.

A r ising need for robus t por t infrastructure has been the need of the hour. What are the upcoming projects that can further improve the shipping scenario in the country?

Karaikal Port:

A Gateway Port Catalysing Rapid Industrial Growth Located near the town of Karaikal in the Union Territory of Pondicherry, Karaikal Port has recorded a growth of 697 per cent from FY-10 to FY-17. The port is well equipped in terms of modern infrastructure in water facing and on shore facilities. A host of support services such as logistics has elevated it as the efficient port, unleashing the economic potential of central Tamil Nadu and Pondicherry. GRK Reddy, Promoter and Director, Karaikal Port in an exclusive interview with Tariq Ahmed talks about the role of ports, government initiatives and much more.

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The Shipping Ministry has invested around `80,000 crores (US$ 12.0 billion) in the past two and a half years for building world class highways and shipping infrastructure in the country.

Major Ports have already launched new projects of modern terminals: • Construction has already started for JNPT fourth container terminal with an expected outlay of INR 10,000 crore and capacity of 4.8 million TEUs. With its direct connectivity to northern hinterland of country through dedicated freight corridor, the terminal is poised to become one of the largest and critical gateway terminal of the country.

• Similarly, Vizag General Cargo Berth project has been awarded to Vedanta Group for upgradation of existing berth along with construction of new berth and installation of equipment to carter 200,000 DWT vessels.

• The Nation Perspective Plan(NSP) focuses on Port modernisation through: * improved efficiency in existing ports * Improved mechanization * Development of Greenfield ports • Port Operation Related Interventions Green Energy: Indian Ports are moving towards the use of renewable sources for meeting their respective energy requirement. Several initiatives have

been taken to reduce the overall carbon foot print and improve environment around the ports.

• Technology Interventions: Container Tracking: Radio Frequency Identification tag installed on a container which will be tracked through RFID readers installed at different locations.

This is expected to provide importers and exporters detailed overview of the movement.

Resource Tracking: All Major ports in the country have been directed to implement RFID System to track movement of vehicles, materials and workers.

Faster Clearances: This is expected to be implemented with trader filling the bill entry in advance.

Service based solutions: Various solutions have been implemented such as Enterprise Resource Planning (ERP), Electronic Data Interchanges (EDI), Port Community System (PCS) Project Unnati: Project Unnati was launched which aimed at benchmarking the operationa l, financia l, human re sou rce s a nd e f f icie ncy re l ate d pa ra mete rs of Major Por t s w it h international standards and also identify they key performance indicators for the ports and terminals.

Government initiative The gove r n me nt pr oje ct s e nv i s a ge the following: • Port modernisation and new port development Augmenting the capacity of current port infrastructure and creating new ports is important to promote export driven growth. With massive cargo volume growth anticipated by 2025, there emerges a need for port up gradation and new infrastructure.

• Port connectivity enhancement Con sid e r i n g t h at i mproved p or t connectivity can provide the much needed boost to internal trade as well as Export and Import. 170 port connectivity enhancement projects have been identified.

• Port-linked industrialisation The 33 port-linked industrialisation projects at a projected cost of USD 65 Billion, anchored by the Sagarmala Project will complement the Make in India vision.

• Coastal community development Coastal communities are important stakeholders of developmental activities

within coastal regions. With 72 coastal districts hosting 18 per cent population of India, the development of these communities becomes an integral aspect of overall socio-economic development of the country.

Please comment on the future potential of coastal movement of bulk cargo.

Coastal Shipping is the most effective medium for transporting bulk, break bulk and project cargo. These cargoes will drive future growth for private as well as public enterprises of India. It will overcome congestion, delayed time, greenhouse gas emissions and carrying heavy loads, within India.

B u l k c a r go mo ve me n t , f r o m a n international location to Indian shores, is most feasible, economic and effective through coastal shipping. The movement of critical components produced in various regions of India was transported through coastal shipping to its end location. Integration of trade with countries like Srilanka and Myanmar and coastal shipping of bulk cargos by Private Service providers will drive growth of industry.

In this year’s budget, we have seen that Trade Facilitation for Exports scheme (TIES) has been introduced. How will it affect the trade and logistics industry in India?

TIES, the first of its type in India, is a unique initiative which, if properly implemented, has the potential to make immense effect on exports growth in the country. It focuses on improving the last mile connectivity of major exporting hubs to Inland Container Depot/ Ports and will also provide smooth transit of export goods. This will help in improving the connectivity, hereby helping in reduction of overall transaction and logistics costs.

Overall trade will also increase in the back drop of better infrastructure and export linkages like border haat, land customs stations, quality testing and certification l abs, cold ch a i ns, t rad e promot ion centers, dry ports, export warehousing and packaging, SEZs and ports/airports cargo terminuses.

How will the Sagarmala project effect the whole shipping and logistics industry in terms of dwell time and logistics cost?

Developing inland waterways and coastal

shipping can save logistics cost as the transport cost is high in India. Shipping will be more economical if there is a five per cent modal shift in cargo from road to ships, which will save 200 million tons of fuel, thereby eventually increasing the Gross Domestic Product. Moving cargo via coastal shipping routes or inland waters is cheaper by 30-50 per cent as compared to road transport.

Sagarmala Project will save logistics costs nationwide for cargo handled and evacuated through seaports, boost overall economic development through ports and empower coastal communities. The transit time of exports will reduce and will also increase the volume of trade via inland waterways and coastal shipping, develop maritime and manufacturing clusters around the ports and set up best-in-class maritime services clusters in India.

Recently, government has asked to use RFID (Radio Frequency Identification) technology in all the ports. How can technology further save the time and cost along with making the work at port more efficient?

RFID (Radio Frequency Identification) technology will provide importers and exporters detailed overview of the movement of containers from/to CFS/ICDs to/from ports, real time tracking and speedier clearance. This will eliminate the need for manual checking at the documents at the port gates and reduce the retention time of consignments at port area, thereby reducing overall dwell time.

What steps have you taken in order to ensure sustainable employment opportunities to the local population and all-round development of the region?

At KPPL we will approach CSR as a business model and a holistic approach to our communities of impact. Through this model, our communities will grow in sync with the development happening around them thereby creating a balance in the system – both ecologically and economically. We call this “Inclusive Living” – simply including everyone in the process of creating and sharing progress.

Some livelihood development skills such as tailoring, pickle making, home use products making (compost making, saplings sale, home cleaning products, broom making, etc) are imparted to them.

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Interview

Handling International Cargo with Élan 74 CargoConnect - august 2017

What kind of infrastructural upgradation plans are you implementing, specifically in the field of international air cargo?

Halifax Stanfield International Airport (HSIA) in Canada is the most important airport for the international transit of cargo in the North American continent. Joyce F Carter is its President and CEO and has been instrumental in the development of the HSIA. She has been the Chairperson of Halifax Gateway Council, which is involved with the multimodal transport in the region. She is also a member of Dalhousie University’s Board of Governors and is Chair of the Finance, Audit, Investment and Risk Committee and a member of their Executive Committee.

Joyce F Carter, President and CEO of Halifax Stanfield International Airport, Canada interacts with Archana Verma in this exclusive interview.

Due to the significance of cargo at Halifax Stanfield, we are making a number of investments to improve our cargo operations. Our most recent completed project was a C$5 million new apron expansion that opened at the end of 2016, just before the beginning of our busiest time of the year for seafood exports. The addition of the 17,000 square metre apron improves turnaround time and makes Halifax Stanfield more attractive to cargo operators. Our investment not only supports our seafood industry, it also provides a positive impact to our provincial economy. This investment puts us in a good position to handle increased volume of cargo. We’ve also invested a significant amount to extend our main runway, add taxiways and open up new lands for lease with a focus on cargo-related activities.

Does Halifax Stanfield International Airport have any activities in the Indian cargo market? Are there any expansion plans in this regard?

In Asia, our primary markets are China and South Korea. However, through the various connections offered by our cargo operators, there is seafood export from our region to India as well. Qatar Airways Cargo for example connects India very well, once the Halifax B777 freighter arrives in Doha. So does Korean Air Cargo via Incheon.

CargoJet offers connections through its partners and Air Canada recently started a major expansion into India and usually has room in the belly of the passenger aircraft for high-yield time-sensitive live lobster, which is a high priority cargo load.

There is news in some media reports that the fees at HSIA are being raised.

Will this affect the incoming and outgoing international cargo as well?

In Halifax, we offer attractive landing fees and competitive handling costs, a 24/7 operations that includes Canadian Customs, the largest cold storage facility in the Americas north of Miami and no noise restrictions.

Our Airport Improvement Fee (AIF) is decreasing by $5 for departing inter-provincial passengers and the AIF for others departing passengers will increase by $3. This fee goes directly to fund the airport’s capital improvements and is not a fee related to cargo.

Canada has a large Indian emigrant community and many members of this community are engaged in business

and need air cargo services, both within Canada and across countries. Would you like to throw light on the role of Halifax Stanfield International Airport in this regard and is this section of Canadian air cargo profitable for Canada?

You’re absolutely right. Immigration is important to Canada. The CEO of our largest cargo airline in Halifax, CargoJet’s Ajay Virmani, is an immigrant from India, who successfully started his own business in Canada.

Many immigrants have settled in Eastern Canada and are engaged in business. For us at Halifax Stanfield, regional freight business is not a major focus, as we realistically can’t compete with truck freight rates. But for high-yield timesensitive freight, there are sufficient options. We have daily FedEx and CargoJet flights, offering both regional connections as well as access to the main FedEx and UPS hubs. Passenger aircrafts assist in providing belly capacity and we have several wide-body freighter aircraft operating

“We’re closely watching investments and developments at other airports around the world, including India. Airports in India have made tremendous improvement in recent years and we applaud them for it.“ per week to Europe, Asia and West Asia. Our primary export is live lobster and other seafood products. The year 2016 was a record year for cargo handled at Halifax Stanfield with 33,330 metric tonnes of cargo was processed, up 4.1 per cent over 2015. This year we’re off to impressive start. The current Quarter shows an improvement over the previous year with a 21.4 per cent growth, bolstered by new direct flights to China. Demand for live lobster and seafood continues to grow and Halifax Stanfield is poised for continued profitable growth in seafood exports for all industry stakeholders.

Do the Halifax Air Cargo authorities have any comments or suggestions to make about the air cargo infrastructure in India, especially in the current and near future scenario?

We’re closely watching investments and developments at other airports around the world, including India. Airports in India have made tremendous improvement in recent years and we applaud them for it. As we move forward with our air cargo development strategy, we will continue to watch developments at airports in India with interest.

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Interview

Facilitating Stakeholders with Leading Technology 76 CargoConnect - august 2017

Carrier Transicold is one of the leading organisations in the cold chain sector. At the onset of various transformations across the sector, Pankaj Mehta, Managing Director, Transicold India and South Asia, in a discussion with Sheena Sachdeva, talks about its impact and further altercation leading the industry.

A report facilitated by the National Centre for Cold Chain Development (NC CD) a s s e s s e d the ne e d f or additional infrastructure by studying cold chains in the countr y. What are the recent developments that your organisation has taken on the infrastructural front?

Carrier Transicold India works with several leading fleet operators and logistics distribution companies in India and have been working closely with NCCD to promote cold chain in India. We are also working with several stakeholders to help plug the identified gaps by offering Carrier Cold Chain solutions, such as availability of pre-coolers close to harvesting sites and availability of reefer trucks in remote areas where cultivation/harvesting takes place. These infrastructure interventions have helped our customers get better returns over their investments and have benefitted farmers, traders as well as transporters.

What unique products do you offer in order to maintain optimum security of sensitive goods along with their timely delivery?

Carrier Transicold India has introduced advanced telematics solutions for diesel drive trucks and trailer units. These systems empower our customers to remotely monitor and control the refrigeration units and help them track their consignments with a strict watch over temperature integrity. This has helped them track and reduce theft, secure and control the number of door openings and optimise time for loading/unloading. The smart features such as alerts and alarms, geo-fencing and geo-tracking have helped our customers greatly improve their delivery timelines.

What innovative and technological measures have you adopted at Carrier in order to achieve the dream of a robust cold chain network?

We recently conducted a pilot study on the impact of the cold chain on the kinnow fruit from Punjab, where benefits of implementing cold chain for any F&V commodity can be seen by following a simple template designed

by Carrier and the Indian School of Business and supported by NCCD. The study measured the effects of cold storage and refrigerated transport from Abohar, in northern India to Bangalore, in southern India, a roughly 2,500 km (1,600 mi) overland journey that is a four- to five-day drive by truck. This allowed for ample analysis of

the time and distance-related aspects of cold chain investment. Unlike other fruits, kinnow is available only for three to four months a year, is highly perishable and is grown primarily in a few districts of Punjab. To keep spoilage to a minimum, kinnow is best kept at four to five degrees Celsius and a relative humidity of 85 to 90 per cent.

The study demonstrated that investment in refrigeration equipment can reduce food loss by 76 per cent, while increasing profit margins up to 23 per cent. As a result, the kinnow selling season was extended by one month, the selling region was expanded to 2,500 km from Punjab to Bangalore, CO2 equivalent emissions from wasted food were reduced by 16 per cent, the grower purchased two new truck refrigeration units and is planning to invest in two smaller vans for local distribution. More than 80 refrigerated ocean containers of the fruit were shipped during this year’s selling season and around 350 refrigerated truck trips were made up from zero just two years ago.

Our Citifresh range of direct drive truck units is an affordable, ideal solution for transporting chilled products on medium to large commercial vehicles with a loading

Carrier Transicold India has introduced advanced telematics solutions for diesel drive trucks and trailer units. capacity of 16 to 55 cubic metres. The Citifresh range’s robust design and stainless steel evaporator are easy to install and maintain, as well as ideally suited for demanding applications including high ambient conditions up to 50 degrees Celsius. The range delivers exceptional value by virtue of its low initial cost and lower maintenance and operational costs, while a dashboard-mounted DIN controller offers ease of use.

As with all Carrier Transicold products, the Citifresh range comes with the security and peace-of-mind of an extensive aftermarket service network. A highly skilled team of certified technicians, regularly trained in the installation, maintenance and repair of Carrier Transicold refrigeration products, is ready to support customer fleets across a pan-India network of more than 45 service centres.

Carrier Transicold India offers a large range of products and services, our network

is well equipped to cater to the needs of various segments across India. Our products include Viento, Xarios, Pulsor, Supra and Vector refrigeration units, which cover the complete range of customer requirements and integrated cold chain management, from the smallest distribution van to large 12 metre trailers, in both single temperature and multitemperature versions. FDI in cold chain has further sparked interests of various global players who are now in a process of entering the cold chain space in India.

What improvements should be made at the government level and from the industrial perspective for better functioning of the sector?

Governments across the world are realising the importance of the cold chain to food security, reducing food spoilage and preserving the quality of food. Carrier Transicold continues to develop solutions to meet the constantly evolving and challenging operating conditions across the globe. We welcome and support the initiatives taken by the government to help proliferate cold chain in India.

• Carrier Transicold India has been actively involved with initiatives of the Ministry of Agriculture and Ministry of Food Processing Industries in creating awareness about the cold chain • We are members of the Cold Chain Task force of the Confederation of Indian Industry (CII), set up under the aegis of the Ministry of Agriculture, and members of the National Center of Cold Chain Development (NCCD) • Members of the Carrier Transicold India team are regular speakers at various cold chain conferences organised by the Ministry of Agriculture and Ministry of Food Processing to promote cold chain use and reduce food wastage • Members of the Carrier Transicold India team have also been involved in delivering training to cold chain operators and reefer truck drivers. These trainings are organised by the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) and the Global Cold Chain Alliance.

• Carrier Transicold India continues to work with all stakeholders in the Indian cold chain sector in creating awareness of the advantages of a developed cold chain infrastructure aimed at reducing food wastage and providing better value to the Indian consumer

august 2017 - CargoConnect 77

Interview

IT based innovations provide us an edge over our competitors 78 CargoConnect - august 2017

Samsung SDS, the logistics and Supply Chain Management arm of the Samsung Group provides supply chain solutions, consultation and end to end integrated logistics software solution through its specialised software known as Cello Plus to its clients.

Gurpreet Gill, Regional Head Supply Chain and Logistics Solutions, Samsung SDS talks about the supply chain planning and logistics operations in an exclusive interview to Gaurav Dubey.

What kind of technological solutions Samsung SDS does provide to the logistics industry?

The Cello Plus is an integrated SCM and logistics solutions developed by Samsung SDS. It consists of nine Suites that cover the overall supply chain planning and logistics operation, ranging from SCM operations to managing exports and imports, local delivery and warehouse operations as well.

Following are their details: - Intelligent Suite: Supporting feasible SCM plans and optimal logistics resource planning from an integrated perspective of SCM planning and logistics execution.

- Planning Suite: Forecasting market demand for products and establishing global SCM operation plans optimising resource utilisation.

- Sourcing Suite: Supporting selection of the best Logistics Service Provider (LSP) for logistics contracts, taking into account air, sea and multimodal transportation.

- Globa l Trade Su ite: Suppor t i ng integrated forward tasks based on optimal processes to efficiently manage all areas of complex international transportation.

- Wa r e h o u s e S u i t e : P r o v i d i n g standardised and efficient operation systems by establishing various tasks and processes in distribution centres.

- Transportation Suite: Reducing logistics transportation cost and improves service levels based on know-how of the global integrated logistics operation.

- Analytics Suite: Performing logistics e xecut ion t rack i ng ma nagement, gathering execution data and providing various types of analysis information.

- Work Management Suite: Supporting logistics execution based on standard process, risk management, integrated task status monitoring and knowledge asset management.

- Common Suite: Supporting Cello management systems and operation environment and providing a common service infrastructure for logistics execution systems.

How does integr ated Logistic s software of Samsung SDS facilitate the business growth of its clients?

Customers’ demands have been increasing d ay by d ay a lon g w it h t he r i si n g

uncertainties in business. Today, customers demand more visibility while at the same time they want more efficiency and cost reduction in their logistics operation.

Under such circumstances, we’ve been able to outclass our competitors through our IT based innovations. Our IT capabilities have inspired Samsung SDS to enter in the logistics business. Cello Plus, our integrated logistics solution, makes our customers really competitive in terms of global governance and logistics efficiency. It covers all logistics processes and provides a unified work environment for all employees, so our customers can easily maintain the same process, work flow and management system across all of their branches in the world. Moreover, they can easily make improvements and get rid of inefficiencies because our system enables them to manage and control their branches’ data such as logistics operation status, cargo volumes or logistics costs in small details.

“Cello Plus, our integrated logistics solution, makes our customers really competitive in terms of global governance and logistics efficiency.”

What more innovative logistic s solutions do you have in the pipeline for the logistics industry?

The first is our Loading Optimiser solution.

This solution enables users to stack up boxes or cargoes on a pallet or in a container, considering all sorts of constraints such as the size, shape, weight and even the label position of the box. By applying physical engines, the solution can even calculate the chances of a box (on a pallet in a truck) falling down in transit. It can even analyse and figure out what styles of loading the user prefers through machine learning and change the simulation results accordingly when carrying out loading simulations.

The Demand Sensing solution is gaining much attention these days. Demand Sensing is to help minimise delays in logistics by analysing elements affecting sales like promotion activities and forecasting

future volumes. It is powered by artificial intelligence (AI), the big buzzwords in IT today and it is based on Samsung SDS’ big data analysis platform, Brightics. We did a pilot project of this solution for a German electronics retailer and it turned out that while the forecast by the sales person with years of experience was 53 per cent accurate, our demand sensing solution showed an accuracy of 72 per cent.

Keeping up with the current trend in logistics, we have secured technologies related to IoT and blockchain and produced some meaningful results. We have our own IoT platform, are applying IoT to pallets, ULD tracking etc. In particular, we have installed IoT devices to fridge/freezer warehouses, trucks or reefer containers for cold-chain shipping to comprehensively monitor the temperature, humidity, security etc.

Blockchain is a technology that will help enhance security in transactions as well as significantly simplifying the procedures. Maersk Line and other global logistics companies have already shown a great interest. Recently, Samsung SDS has established a blockhain consortium with major Korean ocean carriers, relevant government agencies and platform providers and we plan to launch a pilot project within this year.

How does your company minimise the risk to cargo in transit and maximises satisfaction of clients through the implementation of technology?

Risk management is closely related to supply chain visibility. Indeed, demand for supply chain visibility is very strong, but the satisfaction level is quite low. Overall visibility information of the whole supply chain from procurement, production to del iver y is ver y cr itica l to SCM competitiveness. Especially, if customers receive real-time visibility information in time, then they could respond more rapidly to irregular cases such as natural disasters and the fall of Hanjin shipping.

Samsung SDS is in control of end-toend visibility with global single logistics solution ‘Cello Plus’ and improving customer satisfaction by applying new technologies like big data analytics and IoT etc. Also, we have Global Control Centre at our head office to monitor cargoes in real time, detect issues early and respond quickly to untoward events.

august 2017 - CargoConnect 79

Shippers Speak

“Logistics Defines the Overall Customer Experience” How important is logistics for the overall scheme of your business?

E-Commerce giant Snapdeal has been in the news recently for various reasons. In a recent move last year, it revamped itself to come across as a new and better avatar of its earlier self. If we talk about the logistics side of the business, Snapdeal has always ushered in new and innovative practices to give the best possible online shopping experience to its customers. Mohit Goyal, Deputy Manager Supply Chain, Snapdeal, talks about the practices and strategies that help them wade through the day to day supply chain complexities and challenges in an interview with Tariq Ahmed.

Here are the excerpts:

80 CargoConnect - august 2017

Logistics forms the basic fundamental foundation of any successful business enterprise. In my experience, I have seen that although activities that involve the customer are crucial (e.g. product quality, pricing, marketing etc.), the company’s logistics defines its long term success or failure by creating a deep trenching customer impact. Good marketing may get you the customer once; but it’s the logistics that ensures that the customers keep coming back to you.

From ensuring the timely delivery of the product to the customer to ensuring the correctness and safety, logistics defines the overall experience of customer, once the customer has been engaged through the primary marketing activities.

How do you ensure smooth coordination between suppliers, transporters and other departments in your supply chain?

In my experience, successful completion of any project requires complete coordination of all the stakeholders involved in the process. To ensure smooth coordination, I would: • Form a CFT (Cross Functional Team) to assign dedicated responsibility and ensure each member’s contribution is noted and appreciated so as to give a strong sense of ownership to the stakeholders • Ensure a communication channel through weekly/daily reviews, so that every update is communicated to all the parties involved • Timely Management reporting and feedback to ensure that the task progress is in accordance to the business needs and if required, any change in direction can be implemented through management directive.

Are there any unique or innovative strategies that you have adopted for the better supply of your products?

In my eight years of experience in the supply chain field, I have realised that continuous improvement is the key to ensure two critical supply chain targets of any company, which are improving customer experience and reducing costs. Accordingly three of the most important strategies that I have adopted in my field are: 1. Introduced an app called field IQ to deploy a live tracking mechanism for the courier pickups from the sellers. 2. Researched and introduced packaging guidelines for critical product categories to reduce cases of physical damage and wrong product delivered.

3. Initiated basic door step QC for reverse pickups

Tell us about the most common problem faced by your company during its supply chain process. What steps do you take to overcome these?

One of the most common problems faced by my company is ensuring the correctness of the order.

Wrong Product Delivery and Physical Damage are the most common problems faced by us during the entire supply chain process. To overcome this: 1. I developed new QC guidelines which provided a set of critical checklist for each sub-category 2. Also, to ensure correct packaging we introduced One table QC which involved one single operator performing both QC and Packaging to prevent wrong packaging.

3. To reduce damage cases, I worked with the central packaging team and devised new packaging norms for High Value and Fragile items 4. Since the delivery involves multiple channels, it becomes difficult to track the point at which the order might have been tampered/damaged.

Hence we introduced holograms to prevent pilferage in transit and identify the stage and take corrective actions accordingly.

How do you manage your supply chain during peak times such as festivals and promotional sales?

Since we have more than 10 lakh SKUs, 1 lakh + sellers and 6000+ cities, accurately forecasting demand becomes a great challenge. To overcome this, our primary focus involves: 1. Ensured strong coordination with category and account management teams to get correct and faster forecasts on sales/promotions days 2. Added low cost flexibility in the system by having semi-trained manpower agencies for immediate capacity ramp-up and temp space renting in the vicinity of the warehouses 3. Ensured pre-packaging of orders with high predicted load (eg. during flash sales) to reduce turnaround time.

4. Developed a load balancing system which would automatically route orders to less stressed warehouses/dropship in case of a facility overload 5. Led process improvement exercises such as single table QC etc., to improve productivity and output from existing manpower 6. Set up a seller migration process to migrate orders from Dropship to OC and vice versa to ensure optimum capacity utilisation during peak/non-peak days.

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news

India, Bangladesh to pilot freight train service in August

Noida likely to set up a logistics hub

Come August, India and Bangladesh will run a container train on pilot basis between Dhaka and Kolkata to assess the feasibility of extending the services on commercial basis. Bangladesh is the ninth-largest importer of Indian goods. In April, State-owned Container Corporation (CONCOR) had signed an MoU with Container Company of Bangladesh Ltd (CCBL) in this regard, during Bangladesh Prime Minister Sheikh Hasina’s visit to New Delhi.

According to sources in the Railways, a full rake of empty containers will go to Dhaka through the only broad-gauge connection through Gede(India)-Darshana(Bangladesh) border gates in West Bengal.

Bangladesh will send the rake loaded with their export cargo. The broad-gauge connection is currently used for running a passenger train, Maitree Express, between Dhaka and Kolkata.

The Noida Authority is planning to set up a logistics hub that will cater to the warehousing needs of companies and E-Commerce players in the National Capital Region (NCR) and adjoining states. Amit Mohan Prasad, senior bureaucrat and Chief Executive Officer of the Noida Authority, said, “With GST coming in, the physical barriers have been broken. We are planning a logistics hub in Noida and we will develop a sector and provide land for warehousing needs of companies and retailers. We plan to come out with the scheme by September.”

Stating that the Authority is currently identifying a sector in Noida for this, he added that a logistics hub in Noida will benefit all states. “People can store their stuff in their warehouses here and then distribute it across NCR or even in other states.”

E-Commerce companies such as Amazon, Flipkart and Snapdeal have been expanding their network of warehouse to speed up their delivery and stay ahead of the competition.

Truckers counter Govt claim; say travel time cut down by lower volumes, not by GST A Central government report claims that GST has lowered the travel time of trucks on the road. However, this has been contested by the truckers in a study, which claims that the lowered volume of cargo on road has resulted in faster transport, not GST. The Indian Foundation of Transport Research and Training (IFTRT) says during July 1-15 of GST implementation, 40 per cent of the truck fleet was almost non-operational. And the entire fleet was underutilised, as untaxed and GST non-compliant cargo booking has stopped. Cargo of agricultural items, fruits and vegetables dropped by 25-30 per cent this month, it says.

The IFTRT report said that the total of transit time i.e., booking of cargo and ultimate delivery, was no way close to the 30 per cent higher efficiency claimed by the government. IFTRT says that trucks had to wait for a return load for four to five days, as against the normal one or two days. In one week, illegal untaxed consignments have moved without regulation on intrastate and interstate routes.

82 CargoConnect - august 2017

India at risk of losing Nepal transit trade to China India is at risk of losing the Nepalese transit trade to China, whose highspeed rail link, particularly under the One Belt One Road (OBOR) initiative, compares favourably to the slow trundle of Indian goods trains and the capacity constraints on the border with Nepal. According to the World Integrated Trade Solution (WITS), set up by the World Bank and UN trade bodies, Nepal imported goods worth $6.6 billion in 2015 and exported goods worth $660 million. India accounts for 60 per cent and 63 per cent, respectively, of Nepal’s imports and exports. The rest of the trade, valued at over $3 billion, is also routed through India. China controls only 14 per cent of Nepal’s trade demand, but is now aiming to significantly shift Nepal’s transit trade from India to itself. The OBOR proposal itself is costly, and may have serious repercussions for the tiny Nepalese economy, where remittances account for almost 27 per cent of GD. But even given Nepal’s geographical proximity with India, the high cost of logistics makes the Chinese rail proposal seem more viable. Nepal has so far been using Kolkata as a transit port, but loading and unloading take days.

Sector wise share of absorption 33%

30% 21% 21% Bangalore, Delhi and Chennai have maximum demand for 25% 20% 10% 15% logistics space: CBRE 5% 4% 10% 35%

4%

News 2%

5% of its latest India Industrial and Logistics MarketView, H1 CBRE South Asia Pvt Ltd, a real estate consulting firm, has announced the findings 0% 2017 report. According to the report, the demand for logistics and warehousing space was primarily concentrated in Bangalore (24 per cent), Delhi NCR (21 per cent) and Chennai (20 per cent) indicating that the southern cities led leasing activity during the review period. Mumbai with a share of 13 per cent was the only other city to witness sizeable transaction activity.

Jasmine Singh, Head, Industrial and Logistics Services, India, CBRE South Asia Pvt Ltd said, “In anticipation of GST and its impact on the market, development of new warehousing spaces saw a decline in the past few months. Under the new tax regime, we expect the focus of warehousing developers to be on consolidation and expansion of their hubs.” With new technologies coming in, the concept of ‘hub and spoke model’ is likely to gain prominence, driven by operational efficiency and cost reduction. This growth in demand will spur supply of quality warehousing in the future.

H1 2017- City Level Share of Absorption

Sector wise share of absorption 35% 30% 25% 20% 15% 10% 5% 0%

33%

Bangalore

21%

21% 10%

5%

4%

4%

2%

5%4% 6% 7%

NCR 24%

Chennai Mumbai Kolkata

13% 21% 20%

Ahmedabad Hyderabad Pune

H1 2017- City Level Share of Absorption Bangalore 5%4% 6% 7%

NCR 24%

Chennai Mumbai Kolkata

13% 21% 20%

Ahmedabad Hyderabad Pune

news

Pune international cargo terminal has slow take off

The international cargo export facility at Pune airport is still to find any takers even after a fortnight it was launched with a lot of publicity. Officials of the Pune Customs say that the registration of airlines for availing of the facility has started, but the response has not been high. “Two airlines, SpiceJet and Jet, have shown interest in getting the registration done to start the service. Other operators like Air India, for example, have not come so far. The response has not been high but we expect things to look up,” a customs official said. Currently, a total of four international flights operate from the Pune airport.

They include two to Dubai (Air India and SpiceJet), one to Abu Dhabi (Jet Airways) and one to Frankfurt (Lufthansa).

THERMAL

E-Way Bill under GST may cause problems for the multinational logistics industry The big companies of the express delivery services (EDS) industry, believe that the nature of E-Way Bill is against building core competency of the express industry, i.e. time-bound guaranteed delivery of shipments With the extent of information solicited by the E-Way Bill, the industry sees existential challenges in complying with the process requirements.

The bill aims to capture certain information such as vehicle registration number and driver details from express or courier and multi-modal transport operators prior to the movement of goods of consignment.

According to the express delivery companies, in the existing business models, multiple individual consignments are collected by the EDS operator It is difficult to give registered vehicle numbers for delivery boys on foot as allotting transport vehicles well before the shipments reach the sorting centre would hamper efficiency, hurt cost and impact delivery commitments. Further, a new bill is required every time a shipment moves from one vehicle to another.

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Shipping industry experts urge to bring water closer to industries

JNPT in need of design solution for piling containers

Karaikal Port has conducted a knowledge sharing session on coastal shipping, inland waterways and National Sagarmala programme. The knowledge sharing session aims to bring together Shipping industry on to a common platform to explore opportunities, find solutions for the existing challenges, share best industry practices and identify ways to collaborate.

Addressing the media, GRK Reddy, Promoter and Director, Karaikal Port said, “In view of economising the cost and reducing the carbon foot print, the Indian ship owners and cargo owners have to make immediate efforts for transportation of goods by coastal and inland water ways.”

Capt SV Subhedar, past President of ICCSA, Ex Director (T) Indian National Ship Owners Association, Member Royal Institute of Naval Architects and Royal Institute of Navigation added, “The Sagarmala programme would complement the global quadrilateral project and would provide sea connectivity to major industrial centres approachable through sea route. In this the coastal transportation would play a key role.”

Following a sharp rise in the number of Direct Port Delivery (DPD) clients, JNPT is looking for a planning and design solution to house containers in the most efficient way. DPD clients are rising fast in number, reaching 1000, accounting for almost 57 per cent of JN Port’s import cargo and 30 per cent of import containers. The sharp rise came into existence after the upper limits for container handling volumes were lowered for customers. JN Port was designed for the Container Freight Station (CFS) model, where the port’s customers could hold their cargo till they get clearance from customs, while the DPD model is one where the clients can directly access the major port, without having to wait for the Customs clearance. “For us the problem to solve is how 1,000 clients can be catered by reducing the heaps of containers. I have to aggregate certain DPD clients. Otherwise, containers will spread horizontally,” Neeraj Bansal, Deputy Chairman, JN Portsaid, adding that they were looking for a planning and design solution.

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International news

International cargo becomes non-competitive with GST Applying GST on international freight is likely to make air cargo “non-competitive”, a PHD Chamber press release said.

Freighters were earlier not liable to pay any tax under the service tax regime, while now they have to pay 18 per cent GST. “Subjecting international freight at 18 per cent GST is totally unfair as it will stifle the growth of air cargo.

Why would the Government of India want Indian exporters to pay extra 18 per cent GST on freight and make our goods non-competitive in international market?” asked the PHD Chamber of Commerce and Industry in its release. India will be an “exception” in applying the 18 per cent tax as in the rest of the world international freight is not taxable, it said.

PHD Civil Aviation Committee’s Co-Chairperson Vipin Vohra pointed out that air cargo service provider cannot claim input tax credit for freight from overseas paid for in foreign currency whereas exporters can. He informed the press that the industry has made several representations to the Ministries of Civil Aviation and Finance on the issue, but is yet to get any clarification. The release was issued after an Air Cargo Summit organised by the PHD Chamber.

Vishakhapatnam airport likely to begin international cargo service soon

Operations from the international cargo terminal at the Visakhapatnam airport are likely to begin soon. The value of air cargo exports handled at the Visakhapatnam airport has registered a significant increase from `929.79 crore in 2013-14 to `1,522.64 crore in 2014-15 and `2,823.46 crore (2015-16 till Februry), registering a growth of 48.29 per cent.

“The growth is despite the lack of exclusive storage, processing and examination areas for import, export, cold storages and other facilities,” says Chairperson of the Tours and Travels’ Association of Andhra O Naresh Kumar. “There is vast scope for increasing the export of pharma, textiles, flowers, marine products, gold and silver, which are presently being routed from Hyderabad and Chennai airports,” he says.

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International News

time:matters expands flight network from southern Germany time:matters, working in worldwide Special Speed Logistics, has expanded its flight network in the area of spare parts logistics once again.

Flights will now leave from Karlsruhe/BadenBaden for Birmingham and Dublin on weekdays. The new routes extend the current network to the UK and Ireland , which have been served by flights from Frankfurt and Maastricht since 2011. Thanks to the new routes from time:matters, customers from southern Germany can now also enjoy the benefits of a faster service for spare parts to the UK and Ireland. Three Saab 340 aircraft now take off from Baden-Airpark (FKB) every night for time:matters. “Almost ten years ago, this service was initially offered in all Scandinavian countries and to Italy. Now, time:matters also offers late pick-up combined with very early delivery for France, Spain, Greece, the whole of the Baltics and Moscow”, said Christian Mörtl, COO of time:matters GmbH, “and we are delighted to now be in a position to also offer this to customers from southern Germany for shipments to the UK.”

Flywell Aviation is Antonov Airlines’ GSA for India Antonov Airlines has appointed Flywell Aviation as its General Sales Agent (GSA) in India, as part of its ongoing growth strategy. New Delhi headquartered Flywell Aviation has offices in Mumbai and Bangalore and provides services to the defence, aerospace, oil and gas, rail and construction, as well as other sectors.

“India is a very significant market for the AN-124-100s and holds good potential for AN-225 and AN-22 flights across a number of sectors,” said Michael Goodisman, Business Development Director, Antonov Airlines.

Flywell Aviation has been active in the Indian air charter market for many years and has a good track record of arranging project cargo flights.”

Antonov Airlines is the only airline to offer a payload of 150 tonnes with its newly modernised AN-124-100M-150 type and operates the largest aircraft in the world, the unique AN-225, with a payload of 250 tonnes.

“India represents an important growth market for Antonov Airlines and we are pleased to be representing them to offer customers a costeffective and time-efficient method of shipping heavy lift, super heavy lift and outsized cargo globally,” said Anil Bal, Managing Director, Flywell Aviation.

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 to the team | to the promise made | to the customers | to upgrade continuously

 of innovative solutions | of cost and time efficiencies | of value chain | of long term relationships

PRISTINE LOGISTICS & INFRAPROJECTS PVT. LTD. (PLIPL): Third Floor, Wing-B, Commercial Plaza, Radisson Hotel Delhi, National Highway No. 8, Mahipalpur, New Delhi-110037 | Ph: +91-11-47235800, 46772223 / 24 / 27 | Fax: +91-11-4 6772228 | E: athar@pristinelogistics.com | W: www.pristinelogistics.com

INTERNATIONAL CONNECT

Canada’s Air Cargo Industry: Prospects for India Canada is considering expansion in the Indian air cargo market. We present here a scenario of Canadian air cargo logistics, so that the Indian air cargo industry can calculate its possibilities in the Canadian air cargo sector: Air Canada is contemplating upon opening new direct routes to India. It has launched three weekly non-stop flights between Toronto and Mumbai. It also flies nonstop between Toronto and Delhi as well as Vancouver-Delhi. “We are evaluating

National Trade Corridor Fund for Canadian airports While Canadian government is expanding its air routes to India, Canadian airports are geared to receive National Trade Corridor Fund. “While most of the 26

“Locating the new regional distribution centre at the logistics park provides the company “direct connection to CN’s rail network and transportation services, allowing us to deliver our appliances for our retail partners more efficiently and reliably.”

Stephen Stewart, Director of Supply Chain at Whirlpool Canada new routes to India and are in discussions with airports. There are lot of growth opportunities,” said Duncan Bureau, Vice President Global Sales, Air Canada. “We have grown from no flights two years ago to direct services to Delhi and Mumbai.

We are very happy with the results and will look at growing our frequencies too,” he said.

NAS airports transferred from the federal government to local entities have been funding all of their infrastructure on their own, some smaller airports that have fewer passengers have struggled to raise enough revenue to improve safety infrastructure at their airports,” said Doug Newson, Chair of the Canadian Airports Council’s Small Airports Caucus and CEO

“Over half of all the air passengers and air cargo that move in Atlantic Canada pass through Halifax Stanfield International Airport, creating a tremendously positive impact on Halifax and the entire province as an economic generator and growth enabler.”

Joyce Carter, President and CEO, Halifax Stanfield International Airport, Canada “Air Canada’s new service to Mumbai is significant and signals confidence in Indian market. We have had 30 per cent increase in India-Canada trade and Canadian investment in India has grown by $15 billion. The new service to Mumbai gives further opportunity to grow business and cargo traffic,” said Nadir Patel, Canada’s High Commissioner to India.

88 CargoConnect - august 2017

of the Charlottetown Airport Authority.

“We are glad they will be able to apply for funding for important safety-related improvements.”

“As gateways to the communities they serve, Atlantic Canada’s airports have an integral role in furthering the economic prosperity of this country,” said Monette Pasher, Executive Director of the Atlantic Canada Airports Association, which represents four of the airports that have been ineligible for federal funding. “They provide local businesses efficient access to regional, national, and international destinations. As a result, our airports have

Air cargo handlers like Air Canada and DHL have moved to a new apron at the international airport to take advantage of newer, more modern facilities and other logistical advantages the new location provides. YYC moved over 137,000 tons of cargo in 2016. grown, and we are pleased our members will be able to access much needed federal funding.”

Logistics scenario in Canada Whirlpool Canada’s 425,000 sqft facility will serve as a DC for finished Whirlpool appliances coming to Alberta from across North America. Locating the new regional distribution centre at the logistics park provides the company “direct connection to CN Halifax Intermodal Terminal (CN)’s

Air Canada is contemplating upon opening new direct routes to India. It has launched three weekly nonstop flights between Toronto and Mumbai. It also flies nonstop between Toronto and Delhi as well as VancouverDelhi. This will help passenger and cargo business.

has drilling and exploration in Alberta’s tar sands been compromised, but also that exploration and drilling equipment manufactured in the province are no longer headed to places like the Middle East and Africa in large volumes.

“The local economy is sputtering,” said Doug Romanuk, Vice President Western

“Air Canada’s new service to Mumbai is significant and signals confidence in Indian market. We have had 30 per cent increase in India-Canada trade and Canadian investment in India has grown by $ 15 billion. The new service to Mumbai gives further opportunity to grow business and cargo traffic.”

CN’s rail network. The availability of land in the Calgary area is one factor that lends the city to become a transportation and logistics hub, as evidenced not only by CN’s logistics park, but by an even newer logistics center at Calgary International Airport (YYC).

Air cargo handlers like Air Canada and DHL have moved to a new apron at the international airport to take advantage of newer, more modern facilities and other

Nadir Patel, Canada’s High Commissioner to India. rail network and transportation services, allowing us to deliver our appliances for our retail partners more efficiently and reliably,” noted Stephen Stewart, Director of Supply Chain at Whirlpool Canada.

The Whirlpool news was emblematic

Region, Bison Logistics, one of Canada’s largest trucking companies. “There are signs of life in some areas and downturns in others. The downturn in the oil patch has caused us to redefine ourselves,” Romanuk added, referring not only to his

2016 North American Freight Numbers

Top Commodity Transported between the U.S. and Canada for Each Mode of Transportation, 2016 (Billions of US dollars)

Mode

Commodities

Exports

Imports

Total

All Modes

Vehicles and Parts

48.1

57.9

106.1

Truck

Vehicles and Parts

30.0

29.8

59.8

Rail

Vehicles and Parts

15.7

28.1

43.7

Pipeline

Mineral Fuels

7.8

37.6

45.4

Vessel

Mineral Fuels

4.9

8.7

13.6

Air

Electrical Machinery

3.4

1.7

5.0

Source: Bureau of Transportation Statistics, TransBorder Freight Data, https://transborder.bts.gov/programs/international/transborder/TBDR_QA.html as of February 2017.

company but to the Calgary region as a whole. “Calgary (Billions of US dollars) has become a big distribution Mode 2016 hub. It’s a very progressive city and it’s supported by the Truck 700 surrounding counties,” he said.

Rail 166 “Three or four years ago we Pipeline 50 were moving more cargo to Air 42 Africa and West Asia, where Vessel 58 the drilling was happening,” of Calgary’s efforts to beef up its image said Warren Tiede, Manager of Cargo and infrastructure as a logistics hub Services in Calgary for Air Canada. “The for western Canada. Oil was once king oil industry was hot when oil was $100 in Calgary and it may yet resume that per barrel. But our business changes as position, but plummeting prices have the economy changes.”

Opened in 2013, the Calgary Logistics taken much of the strength out of that industry. Despite early projections to Park, located between the Canadian ports the contrary, oil prices have continued to of Prince Rupert and Vancouver and major move in the wrong direction in the last cities across Canada and the US Midwest, few months. That means that, not only provides shippers a direct connection to

North American Freight on Major Modes, 2016

logistical advantages the new location provides. YYC moved over 137,000 tons of cargo in 2016.

Meanwhile, Halifax Stanfield International Airport Authority (HSIAA) is upgrading its infrastructure as part of a 10year plan. The Halifax Stanfield International Airport will undergo facility changes and an expansion of current services.

“Halifax Stanfield is one of the most critical pieces of transportation infrastructure in Atlantic Canada,” said Joyce Carter, President and CEO of HSIAA. There are three primary sources of capital funding that major Canadian airports like Halifax Stanfield can use to fund necessary capital investments — reinvestment of operating surpluses, debt markets (borrowing) and the Airport Improvement Fee (AIF).

august 2017 - CargoConnect 89

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7th India Warehousing Show held in New Delhi The 7th edition of the India Warehousing Show 2017 (IWS) was held at Pragati Maidan, New Delhi from July 27 to July 29, 2017. The exhibition section of the IWS included infrastructure, structure, material handling, automation, IT and packaging.

“The focus this year is on manufacturing and retail. Visitor penetration and conference theme would be aligned to deliver maximum value in these sectors,” said Anuj Mathur, Managing Director, Reed Manch Exhibitions, the organisers of the IWS. It’s a joint venture between Manch Communications, India and Reed Exhibitions, UK. The panel discussions held on 27th and 28th of July included topics ranging from the impact of GST on warehousing, future potential of the logistics industry, meeting expectations of the partners, customers, challenges faced by the industry to the evolution of warehousing.

90 CargoConnect - august 2017

events

DHL Express inaugurates its Delhi Gateway, doubling its export capacity DHL Express has opened its expanded Delhi Gateway that has the largest DHL capacity in India.The Delhi Gateway located at the Indira Gandhi International Airport, will double the capacity of export clearances from India for DHL Express and handle an additional 60 per cent of imports.

Ken Lee, CEO of DHL Express Asia Pacific, said, “India is one of the fastest growing economies in the world, and is a very critical part of the DHL Express network. We have, over the years, seen strong and sustained volume growth in the international trade between India and the rest of the world. To support this high growth, Deutsche Post DHL Group has earmarked €250 million (US$268 million) toward future investments in India by 2020.”

At present, the Delhi Gateway connects North India, East India and parts of West India to over 220 countries and territories via ten weekly DHL operated inter-continental freighters and 35 daily commercial flights. The expanded Gateway enables DHL Express to now create separate facilities for imports and exports, which eases existing bottlenecks.

Lufthansa launches innovative sun protection for refrigerated freight Now that the expansion of the Lufthansa Cargo Cool Centre in Frankfurt has begun and the Road Feeder Service Cool, the first of its kind in the world, has been introduced; Lufthansa is pushing forward in the refrigerated freight sector. Every customer’s cargo in the passive refrigeration sector worldwide will now be protected without any added fees by a reflective film produced exclusively for Lufthansa Cargo.

“Our aim is to offer top quality transport for our customers’ freight, both in the air and on the ground.

The free offer of our new special film underscores our dedication to high quality and perfects our refrigeration service,” said Sören Stark, Board Member Operations at Lufthansa Cargo.

Lufthansa Cargo is keeping its transit times between its facilities and aircraft as short as possible. The innovative reflective film provides sensitive shipments with optimum protection against the unavoidable sunlight on airport tarmacs around the world, even on hot summer days.

R- World Express Pvt. Ltd. International & Domestic Services

EXPORT & IMPORT STRONG GLOBE NETWORK DOOR TO DOOR SERVICES

Services Priority Services | Premium Services | Economical Services | Special Service (Freight) | Warehousing & Packaging Head Office: LG-10, Gyan Deep Complex, Munirka, New Delhi-110067 Corporate Office: 319/2, Badam Singh Market, Rangpuri , Mahipalpur, NH8, New Delhi-110037 Tel: +91-11-41211111, 41838081, M: 9871168684, 9891168684 | E- Mail: info@rworldexpress.com, Web: www.rworldexpress.com Our Branches: Ahmedabad | Chennai | Ludhiana | Mumbai | Pune | Kolkata | Hyderabad | Penjim

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events

Air Cargo Summit organised by PHD Chamber of Commerce The PHD Chamber of Commerce held an Air Cargo Summit in New Delhi on June 19, 2017. The summit agenda was to discuss the implementations of new regulations and policies, such as GST in the Indian Air Cargo Sector, while simultaneously addressing the key challenges confronting the growth of the sector. The summit also focused on two main issues – impact of GST on the Air Cargo sector and Ease of doing business to arrive at sustainable solutions and initiatives that will aid implementation of a seamless stateof-the-art high end logistic system in place. Through the summit the government was urged not to impose GST on international air freight in tandem with international practices worldwide, where air freight is not taxable. It was added that Indian exporters need not be burdened with wrongly interpreted GST tax on international freight. Gopal Jiwarajka , President, PHD Chamber, was of the opinion that the need of the hour for the growth of the air cargo sector is to offer reliable and seamless cargo supply chain systems, products and policies supported by state-of-the-art, high-end logistic systems and modernised cargo hubs.

Vandana Aggarwal Economic Advisor, Ministry of Civil Aviation shared that the Ministry of Civil Aviation assured the industry that the ministry is focusing on strengthening the weakest links in the supply chain. She said that the Government is a partner and friend in the Air Cargo business and will do all that is required for its growth.

ASSOCHAM organised National Conference on Cold Chain and Awards

ASSOCHAM’s “National Conference on Cold Chain and Awards, 2017: Technologies, Convergence and Capacity Building” was held successfully on May 30, 2017 in Hotel Shangri La, New Delhi.

Tiger Logistics (India) Ltd received the Best Logistics Company of the Year Award, Carrier Airconditioning and Refrigeration

92 CargoConnect - august 2017

Ltd received the Best Innovative New Cold Chain Technology Solution of the Year Award, Transport Corporation of India Ltd received the Operational Excellence in Cold Chain Award, Suri Agro Fresh Pvt Ltd received the Best Fresh Horticulture Produce Cold Chain Solution of the Year Award, Global Entrade received the Best Cold Chain Startup of the

Year Award, The Panchmahal Distt Co-Op Milk Producers Union Ltd received the Best Green Cold Chain Solution of the Year Award in the Dairy category, while Kool-Ex Cold Chain Ltd received it in the Pharma category.

West Coast Frozen Foods Pvt Ltd received the Best Quality and Risk Management Project of the Year Award.

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|

PAGES 96 INCLUSIVE OF COVER

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5th Logmat and Warehousing South Expo held in Chennai The 5th edition of the Logmat and Warehousing South Expo for material handling and warehousing was held at the Chennai Trade Centre, Chennai from June 22 to June 24. The exhibitors’ themes included loading technology and systems, solutions for material handling, warehousing, storage, automation, logistics and transport, supply chain, AIDC and RFID. Logmat and Warehousing South Expo is the only exhibition for the professionals of material handling, logistics, warehousing and supply chain taking place every year at Chennai, India for four years.

Vamaship bags Logistics Startup of the Year award

Change needed in GST act and procedures governing exports:FIEO

Vamaship has won one of the most coveted and prestigious Logistics Startup of the Year award at the 7th Annual Entrepreneur Awards 2017. The awards felicitated the best entrepreneurs from diverse industries in several categories, chosen from 5000+ award nominations and among 2000+ attendees. The award recognises the impact made on supply chains, logistics, fulfilment and delivery and companies which have built a business model to make a difference to these areas. On this occasion, Bhavik Chinai, Founder and CEO, Vamaship stated, “I feel honored and humbled for having received this prestigious award. Each Vamashipper strives to enhance the shipping experience for customers every day and a big thank you to the jury for recognising this commitment.”

Concern of exporters on liquidity, excessive documentation process and delays due to lack of knowledge on the part of both exporters as well as tax officials etc. were discussed by the participants in the Post GST Seminar held at Chennai on July 25, 2017. The Seminar was organised by FIEO to take stock of the progress and implementation challenges after the implementation of GST. Dr A Sakthivel, Regional Chairman, FIEO Southern Region, said that there still needed to be clarity on a number of issues, export benefits being one of them. FIEO is getting queries from hundreds of exporters per day on the impact of GST on their business and have been trying to answer them as best as they can. M Rafeeque Ahmed, Vice President, FIEO raised the problem in claiming ITC refund as it requires filing of GSTR, which for July will be done by 20th Sept and thus, claims will be delayed by over three months.

94 CargoConnect - august 2017

events

GreyOrange recognised by Robotics Business Review 2017

Air India SATS launches first-ofits-kind cargo tracking app

GreyOrange, a robotics and supply chain automation solutions company, has been featured on Robotics Business Review’s annual list of the noteworthy companies in the global robotics industry for 2017. GreyOrange retained its position on the elite list after featuring on the RBR50 list for 2016.

The acknowledgement comes on the back of some groundbreaking work done by GreyOrange to optimise their supply chain through robotic automation solutions for warehouses and fulfilment centers.

“We are happy to be a part of Robotics Business Review RBR 50 list for the second time in a row, especially in the wake of an aggressive global robotics wave. GreyOrange has grown tremendously in the past year. Today, our presence spans six continents and a diverse customer base across different industry verticals,” said Samay Kohli, Group CEO,GreyOrange.

Eugene Demaitre, Senior Editor, Robotics Business Review said, “For this year’s list, our team had the daunting task of evaluating numerous competitive nominations. The RBR50 for 2017 represents the cream of the crop of the world’s most innovative, most influential, and most commercially successful robotics companies.”

Air India SATS Airport Services Pvt Ltd (AISATS) launched a mobile app ‘AISATS Cargo’ to facilitate the cargo tracking process at AISATS Air Freight Terminal and at AISATS COOLPORT, located at Kempegowda International Airport (KIA), Bengaluru.

This user-friendly app picks up cargo movement data from COSYS and provides real-time information on flight schedules, Air Way Bill (AWB) shipment tracking and E-Delivery Order (E-DO) status. Speaking on the launch of the app, Mike Chew, CEO, AISATS said, “AISATS has always been at the forefront of digitisation and is quick to adopt information technology to introduce innovative solutions in the air cargo industry. The AISATS Cargo app will aid in the ease of doing business by enabling seamless availability of data at any given time. This will ensure maximum benefit and convenience to our stakeholders.”

AISATS handled a total of 1,42,033 tons of cargo in the FY 16-17 at Kempegowda International Airport.

ISAGO Certification for Delhi Cargo Service Centre

IRC Supply Chain Solutions Ltd awarded “Best Logistics Partner for Export of Parts” award

Delhi Cargo Service Centre has been awarded with prestigious I S A G O certification on July 18, 2017 for its facility DCSC Cargo Terminal at Delhi Airport.

ISAGO is based on industry-proven quality audit principles and is structured to ensure a standardised audit with consistent results. The implementation of the ISAGO aims to improve safety as well as manage costs by reducing ground accidents and injuries. Besides being a prestigious award, it also has several value additions.

It meets Airline’s audit requirements, helps reducing cost by reducing damages, improves safety and quality standards and enhances understanding of high risk areas within terminal operations. The ISAGO registry enhances the company image, as it represents an independent validation of the handler’s operational safety practices.

Ashok Gupta, CMD of IRC Supply Chain Solutions Ltd, was honoured with the award for the “Best Logistics Partner for Export of Parts” by Ayukawa San, MD of Maruti Suzuki, Nozaki San, Advisor PACC/Logistics and R S Kapoor San, Vice-President.

IRC Supply Chain Solutions Ltd is a part of IRC Group, which started in 1963 with transport operations. Later milestones achieved by IRC includes warehouse operations in 1972, a joint venture with a South Korean company in 1985, Project Freight in 1993 and a Shipping Division in 1995. IRC Supply Chain Solutions Ltd had received an AEO status in 2015. They also inaugurated an Automotive Logistics Centre in Becharaji, near Mehsana, Gujarat, recently.

august 2017 - CargoConnect 95

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events

National Conclave on Cold Chain Development held at PHD Chambers The Committee on Logistics Management of PHD Chamber of Commerce and Industry organised “National Conclave on Cold Chain Development” on July 27, 2017 at PHD House, New Delhi which was attended by more than 120 delegates from Industry and other stakeholders.

Pawanexh Kohli, Chief Advisor and CEO, National Centre for Cold-Chain Development (NCCD), Govt. of India said that the operational efficiency of trucks carrying agri and horticulture produce stored in various cold storages houses from beginning to end point has enhanced to an extent of 550 km a day post GST. RS Bedi, Chairman, Committee on Logistics Management, PHD Chamber stated that the industry has been growing at a CAGR of 28 per cent for the last three years and is anticipated to reach US$13 billion by 2017. Currently, India has 6,300 cold storage facilities unevenly spread across the country, with an installed capacity of 30.11 million metric tonnes. These are mostly used for storing potatoes.

Deutsche Bahn continues to be partner of the German Olympic and Paralympic Teams

Deutsche Bahn AG, Schenker Deutschland AG, Deutscher Olympischer Sportbund (German Olympic Sports Confederation, DOSB) and National Paralympic Committee Germany, DBS are joining forces for the Olympic and Paralympic Games in Pyeongchang in 2018 and Tokyo in 2020. DB AG is the official partner for mobility and DB subsidiary DB Schenker is the official partner for logistics.

“DB Schenker is an experienced team that has already supported us in nine previous Olympic Games,” says Michael Vesper, CEO of DOSB. “Disabled sports are a symbol of vitality and mobility,” says Friedhelm Julius Beucher, President of DBS. “With DB AG, we have a long-term partner on our side that not only supports top class sports, but also works to improve conditions for people with disabilities in Germany.”

96 CargoConnect - august 2017

DHL Express expands presence in Bhiwadi DHL Express, the world’s leading international express services provider, inaugurated a new Service Centre in Bhiwadi. Located in Alwar district of Rajasthan, the 3,188 sqft facility will be the seventh in the Delhi-NCR region. The city of Bhiwadi is an industrial town spanning nearly 5,300 acres that caters to over 2,500 big and small enterprises. The city’s location on the national highway offers excellent connectivity to Delhi- NCR, and strong potential for rapid industrial growth makes the Bhiwadi Service Center an ideal location for the growing DHL Express network. The facility will also serve surrounding areas such as Dharuhera, Bawal, Neemrana, Khushkhera, Chopanki and Tappukhera in industries such as automotive, glass manufacturing and pharmaceuticals.

R S Subramanian, Senior Vice President and Country Manager, DHL Express India, said, “Bhiwadi is India’s third largest industrial hub and one of the rapidly growing industrial areas with close proximity to the international airport, making it a strategic investment for us. This new facility will help us cover an approximate 60 km stretch encompassing key industrial hubs.”

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| APPOINTMENTS Jani appointed member of executive council of RGNAVU Entrepreneur Tushar Jani, Chairman, Cargo Service Centre has been appointed as a member of the executive council of Rajiv Gandhi National Aviation University (RGNAVU). Pranab Mukherjee, the then President of India, announced the appointment of Tushar Jani as a member of the executive council of RGNAVU. Jani, elated on his appointment, thanked the entire logistics fraternity, his friends and well wishers and said that it is their recognition and industry’s recognition. It is worth noting here that Jani is the Co-Founder and Founder Chairman of Blue Dart Express Ltd, the premier international and domestic courier company, which was taken over by DHL Express (Singapore) in March, 2005. Presently, he is the Chairman of Blue Dart Aviation Ltd, the first private air cargo carrier in India.

Vipan Jain is new COO of Delhi Cargo Service Centre Seasoned air cargo player, Vipan Jain after playing a long inning of 32 years with Lufthansa Cargo, has joined as a Chief Operating Officer (COO) in Delhi Cargo Service Centre (DCSC).

In his new position, as COO of DCSC, Jain will be responsible for operations, customer service, quality, safety and security functions of the company.

Barry McNally is the new MD, international operations at Sutton International logistics and supply chain firm Suttons Group has appointed Barry McNally as Managing Director of its international operations. Suttons International has operations in the Americas, Europe, West, South and East Asia and McNally will oversee the chemical and petrochemical sectors, including ISO tanks, fleet management, supply chain management, chemical packaging, warehousing and on-site logistics. Suttons Group Chief Executive John Sutton said: “I am delighted to welcome Barry to the group. His appointment is key to the success of our international business and I’m confident that Barry will bring his extensive knowledge and sector experience to bear in driving forward our growth strategy.”

upcoming events Maritime Nation India 2017 on September 14-16, 2017 at International Convention Centre at Navi Mumbai organised by Maritime World Services

Food Logistics India on September 2729, 2017 at the Bombay Convention and Exhibition Centre, Mumbai organised by Koelnmesse YA Tradefair Pvt Ltd

INMEX SMM India 2017 on October 3-5, 2017 at Bombay Exhibition Centre, Mumbai organised by Informa Exhibitions

11th Express Logistics and Supply Chain Conclave on October 4 and 5, 2017 at Taj Lands End, Mumbai organised by Kamikaze B2B Media

India Warehousing and Logistics Show 2017 on November 16-18, 2017 at Auto Cluster Exhibition Centre, Pune organised by Reed Manch Exhibitions

India Cold Chain Show 2017 on December 12-14, 2017 at the Bombay Exhibition Centre, Mumbai organised

by Reed Manch Exhibitions

august 2017 - CargoConnect 97

PEOPLE CONNECT

My people have made me what I am today: Jani

The stalwart entrepreneur of the logistics industry, Tushar Jani, Group Chairman, Cargo Service Centre doesn’t require any introduction. He has conquered many milestones in his four decades long career and the journey to achieve more is still on. He is also the Co-Founder and founder Chairman of Blue Dart Express Limited, and presently the Chairman of Blue Dart Aviation Limited. In an exclusive interview he talks about the mantras which steered him on the success path.

-By Gaurav Dubey What motivated you to be a part of the aviation and logistics industry and how has your experience been so far?

My fam i ly has been active in the cargo industry for many decades. My grandfather had set up our first cargo company in the year 1896 so it would not be an exaggeration to say that logistics industry is a part of my DNA. ‘Incredible’ would be an apt word to define my experience of working with the industry so far.

The biggest challenge which logistics industry professionals face is the shortage of time. The various verticals and modes of the logistics industry such as roads, railways, inland waterways, coastal movement, container movement and aviation operate in a relay system. It’s the duty of all the logistics service providers to strike perfect coordination between different modes and stakeholders involved in the process.

One also gets an opportunity to handle various products and clients which further magnifies the knowledge and improves the vision of a person.

How has the industr y changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulation etc.?

The industry has undergone a drastic change since I stepped in 1976. Containers came in 1980, technology first appeared

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in the industry 1986 and various material handling technology came up over the period. In this period of transition, ships, aircrafts, long range aircrafts everything got transformed. The industry in present time requires quality, skilled and tech savvy manpower. I reckon ‘E’ has become a buzz word of the cargo industry and I consider myself lucky as I got an opportunity to introduce technology for the first time in the express industry which has transformed it completely. I would also like to appreciate the efforts of the present government which has been working faster than the private sector.

Where do you see the graph of the Logistics industry moving in the coming years?

The industry will surely scale a new height with the implementation of GST. It’s not just a tax, but it would emerge as a ‘Business Enabler’ in the future. It will change the way in which Indian logistics industry operates viz., fast payment cycle, less turnaround time, removal of transportation barrier, removal of the cascading effect of taxes will facilitate the rapid growth of businesses

What specific beliefs or values do you live by? How do you define success?

Simply be transparent and work with people. As I believe in People Service and Profit (PSP), for me, my people are most important. They are the ones who

have made me what I am today and will continue to focus on them in my life.

I stay transparent with my clients, sta ke holders, pa r t ners, ba n kers, venders and with my own people and the government as well. I think this is essential as there are no short cuts to the successful life. Never try to cut corners, save tax and always pay honestly government’s due. Your hard work motivates people and long term vision is required to go into the next generation or the next century. I think this is the job of an entrepreneur.

Apart from work, what are your other interests?

The social sector is my biggest interest and for me the theatre is passion. I used to do theatre in my college days. If time permits, one day I want to do theatre again. My biggest dream is to bring to the delivery system to the one lakh villages of India.

What message would you give to the aspirants who want to make a mark in the logistics industry?

Logistics industry is a place where one learns the nuance of life, human management and time management.

Accord ing to me, it is a fantastic opportunity which logistics industry provides to a person. I urge all youngsters to work at least for a period of five years with the logistics industry and should gain knowledge, humanity and confidence.

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