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Vol. 02 | Issue 12 | MARCH 2012 ` 100/-


RAKING REALITIES CAPACITY to handle bulk, swift & reliable, economy of cost, environment friendly and no competition are factors that can best describe rail logistics. All spell advantage, yet rail logistics remains underutilised and is marred with inefficiencies. The result: India is not able to leverage this mode of transportation, which surely casts a dent on our overall logistics performance and our capacity to optimise all the means of transportation. Despite the apparent advantage that rail logistics has, the present rail share in container transport is not increasing because of reasons like comparative benefits offered by road transport – faster, door-to-door service, aggregation of smaller volumes; lesser waiting time at ports & terminals and avoidance of additional handling of cargo at rail terminals, to name a few. With the rise of freight traffic by truck and private cars along the road system, massive congestion can still be anticipated for the foreseeable future. The inevitable escalation of fuel costs and subsequent pollution levels make this mode of transport less optimal. However, the Government of India has been more of a visionary by opening up the rail network to private companies with investment capital and integrated logistics expertise. As a result, the growth and efficiency of the rail system can be rapidly expanded & fully leveraged in the decade ahead. Presently, there are around 15 container train operators, who have signed concession agreements with Indian Railways for the running of container trains for a period of 20 years, extendable by another 10 years. Almost all the 15 players have commenced their train services. Some of these players have set up their own terminal facilities as well. These operators have been using goods sheds/terminals of Indian Railways as well, for their operations. When optimally deployed, commercial cargo movement by rail will dramatically enhance India’s economic dynamism, just as it has tangibly done in the US and China. Private Indian companies can be leveraged to speed up the rail evolution of India with expanded capacity, capital and networks. When integrated with Free Trade Warehousing Zones, the impact becomes even greater. The next generation rail solution will contribute to India’s rapid expansion in the years ahead. While the hopes are high, with the changed external business environment, and given the complexities and unique demands of the industry, all the country’s high-density rail corridors are facing severe capacity constraints. Also, freight transportation costs by rail are much higher than in most countries as freight tariffs in India have been kept high to subsidise passenger traffic. While the segment is marred with inadequate infrastructure and inefficiencies, some of the efforts taken by Indian Railways to improve the situation are enhancing rail logistics in the form of double-stacked containers; having dedicated freight corridors connecting the hinterland and introducing private participation scheme. Here’s wishing a more focussed approach from the policy makers in the forthcoming Rail Budget towards making Indian Railways an enabler for the Indian economy…a shift from its present status.

Archana Tiwari-Nayudu



PUBLIC PRIVATE PARTNERSHIP MAKES BUSINESS SENSE India needs the rail sector to be able to take at least 60% of the domestic cargo movement by 2020, which would mean that it needs to move over 3.6 billion MT of cargo in 10 years from the current 900 million MT level. India has emerged as the second-fastest growing major economy – registering consistent GDP growth in excess of 6% – over the last decade. The country is also Sajal Mittra, the second-fastest growing developing Chief Executive Officer, market for all types of products – from ARSHIYA RAIL INFRASTRUCTURE automobiles, consumer durables, telecommunication, infrastructure, Sajal Mittra is managing the helms of railway healthcare, food processing, energy, freight management for Arshiya. He has served realty, luxury goods and defence. in various capacities in Indian Railways for over


not in the number of rakes we can induct into the system, but in the efficiency we could create through strategic investments into the railway network. To explain, the average distance achieved by Railways today is 300 km per day, which is gross underutilisation of our locomotives that could easily move 900 km per day (triple the speed). The slower speeds are not attributed to locomotive capacity – which can move upto 1,500 km per day – but to poor core rail network infrastructure.


By making investments towards better signaling systems, doubling of lines, freight corridors, gauge conversions, sidings, mechanical testing centres and finding creative ways to use underutilised or unutilised railway terminals currently in the system, we could achieve this tripling of speed and therefore, increase efficiency. The above automatically implicates that the rail network would then need only about 5,500 rakes to move 3.6 billion MT by 2020. This is an addition of only 1,500 rakes into the system from the current 4,000 rakes.

22 years. He joined CONCOR on deputation from Indian Railways where he was one of the key officials in the setting up of a container freight station at Mulund and inland container depots at Pithampur & Sabarmati.

According to the McKinsey Global Institute, India will have a middle-class population of 583 million by 2025, thus making it world’s fifth largest consumer market. Another testament to this growth story is the fact that our total container throughput has grown from 6.2 million TEUs in 2006-07 to 9.3 million TEUs in the last year. Rail, undoubtedly, will be the engine that will drive this growth in the economy. However, there still remain some fundamental questions that come to the fore which need to be addressed. This impending growth in volumes would obviously mean the induction of more rakes. Today, Indian Railways uses approximately 4,000 rakes to move 900 million MT of cargo. Moving 3.6 billion MT by 2020 would mean that we would need 16,000 rakes to do the job – an indicator that we need to add around 12,000 additional rakes to the Indian Railways network over the next 10 years. This would cost about `2,40,000 crore at an average cost of `20 crore per rake. This investment charter does not include the `1,44,000 crore required to procure at least equal number of, if not more, locomotives that would be needed to move these rakes at an average cost of `12 crore per locomotive. This totals up to `3,84,000 crore that would have to be infused in rolling stock and locomotives. Obvious questions that arise from this equation include where are we going to get these rakes from in 10 years and, even if we do, where do we keep them and how are we going to move these additional rakes?

CHANGE IN PERSPECTIVE NEEDED As complex a problem all this may seem, I dare say that the solution lies in a change in perspective. The answer here lies

ADVENT OF PPP Considering the strained finances of the Railways Ministry, container train operators (CTOs) and other private players will play a critical role in retaining the share of Railways in India’s total cargo movements. They should be viewed as partners who will supplement the Railways’ wagon fleet and cater to the rising transportation requirements of customers. Since Indian Railways would have to spend much of its budget allocation towards capacity enhancement projects, CTOs shall have the mandate to invest in wagons and thus satisfy the growing rail transportation demands. In closing, while this PCTO Policy by the Railways Ministry in 2006 received a great response from the private sector resulting in 16 players entering the CTO industry and investing over `2,000 crore into the space, it is unfortunate that Indian Railways’ approach towards privatisation has been protectionist to say the least. Various Acts/Policies adopted by Indian Railways have crippled the nascent PCTO industry, which, if left unrectified, would result in irreparable loss to the goodwill of PPP in India and to the development of the nation, at large.



Zubin Poonawalla, Promoter & MD, Poonawalla Consultants

Project Cargo Stuck En Route?

Arshiya FTWZ Ensuring Safe Storage & Damage-free Transportation

SPECIAL FOCUS: RAIL LOGISTICS Railways’ Increasing Load Capacity Devising New Methods To Better Economics

Rail Budget 2012-13 Expectations Dawn Of A New Era?

ICD Options For Exporters Facilitating A Smooth Shipment Process

Private Player Participation & Railways Ready To Infuse Fresh Vigour

Rail Route Optimisation Eying Opportunities Amid Challenges

Agility Logistics Taking the Tough Route Out

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Supply Chain Predictions For 2012 Circumventing Unforeseen Supply Chain Risks

Rural Procurement Supply Chain Yielding Better Pay Offs To Farmers

KPIs For 3PLs Benchmarking 3PLs’ Success

Chugging Along The Path Of Success



Associated Container Terminals Creating A Benchmark For Impeccable Cargo Handling

Stop Preaching, Start Practicing


AUTOMATION TRENDS 2D Data Matrix Codes Generating A Reliable Reading Solution

VIEWPOINT GUEST EDITORIAL Latest Happenings In The World Of Logistics


NEWS ANALYSIS Rail Bottlenecks: Thwarting India’s Growth Prospects


TECHNOLOGY & INNOVATIONS Cutting-edge Solutions

8 Ways To Ensure Damage-proof Transportation





TIPS & TRICKS Palletising And Shrink-wrapping



STRATEGY Green Initiatives By 3PLs


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POLICIES & REGULATIONS Independent Regulatory Body For Railways

Suzlon Group

MARCH 2012


IN CONVERSATION WITH ‘LSPs Must Give A Facelift To Their Approach & Operations’

VOL. 02, NO. 12

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CSCO Congress: Offering SCM A Bottom-up Approach










EXECUTIVE EDITOR Archana Tiwari-Nayudu




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SHIPPING MINISTRY TO UNDERTAKE 22 NEW PROJECTS WORTH OVER `16,000 CRORE THE Union Minister for Shipping has recently said that his ministry has proposed to develop 22 new projects worth over `16,000 crore this year, of which about six projects would be ready by the end of March. “By the end of March, around 5-6 projects will positively come out,” he said, adding, “Projects for `6,700 crore in Mumbai has already come out positively.” The Shipping Ministry is also finalising the programme on ‘Land Use Policy’, which would soon be placed before the Union Cabinet for approval. “It has gone for

inter-ministerial consultation. As soon as it is over, the Land Use Policy will be cleared,” he reportedly said. Recently, the Minister of Road Transport & Highways, Dr CP Joshi had visited Chennai, where he had constructive talks with the concerned authorities in the state of Tamil Nadu regarding speeding up the work on road connectivity to Ennore Port. The project of constructing the road would be completed by June 2013, the Shipping Minister said, adding that the government is working together to ensure that this project happens quickly.

CLARIANT SHARES EXPERTISE ON CHEMICAL TRANSPORT SAFETY IN INDIA CLARIANT is sharing its global expertise regarding the safe transportation of chemicals in an initiative to achieve a consensus on this important challenge facing the Indian chemical sector. The specialty chemicals expert is partnering with the Confederation of Indian Industry (CII) and the Indian Chemical Council (ICC) to make a meaningful and positive difference to minimise the dangers involved in the transportation of chemicals within the country. The overall aim is to provide a way forward for all stakeholders on this issue. “Clariant Chemicals (India) has maintained high safety standards for the transportation of chemicals across all its facilities worldwide and is proactively devising methods in accordance with global safety regulations to ensure safe transportation of chemicals at all levels in its India operations as well,” commented Peter Palm, VC & MD, Clariant Chemicals (India). “Transport safety is the responsibility of everyone in the supply chain and strict compliance & enforcement of regulations are necessary to avoid accidents and minimise their impact during all stages of the transportation process,” added Palm.

WORLD’S FIRST MOBILE EMISSION TESTING VEHICLE IN RAIL COMMISSIONED INDIAN Railways recently took the first stride towards framing emission standards for long-haul diesel locomotives and diesel power cars plying along suburban routes on its system with the commissioning of an Emission Test Car (ETC) at the Integral Coach Factory (ICF) in Chennai. The ETC, said to be the world’s first mobile emission testing vehicle in the rail sector, will put Indian Railways on a par with global rail systems in terms of green milestones and also pave the way for the Research Designs and Standards Organisation (RDSO) to lay down standards and


monitor locomotives for compliance with emission norms. The ETC, which uses mass emission measurement equipment supplied by Horiba from Japan, will test locos for oxides of nitrogen, particulate matter, total hydrocarbons, methane hydrocarbons, smoke opacity, carbon monoxide and carbon dioxide. The ETC can be deployed at any diesel shed across the 17 zones of Railways. Sanjiv Handa, Member, Railway Board, who commissioned the ETC also launched the phase I of the Enterprise Resource Planning initiatives in Indian Railways.


MARSH LAUNCHES NEW INSURANCE FACILITY TO SUPPORT MARITIME SECURITY SECTOR RAPID market developments in the growing maritime security industry have led to increasingly divergent requirements that companies in the sector have of their insurance. To meet the needs of all market participants, Marsh, a global leader in insurance broking and risk management, recently launched a new insurance facility that provides comprehensive insurance coverage for the Private Maritime Security Company (PMSC) industry. Developed to support the requirements of the Security Association for the Maritime Industry (SAMI), Marsh’s new insurance facility meets the insurance recommendations stipulated by the International Maritime Organization (IMO) and is available exclusively to SAMI members. Marsh has created the facility with additional guidance from leading PMSCs and insurance underwriters. Marsh’s core package provides coverage across five fundamental areas of insurance: public liability; professional indemnity; maritime employers’ liability; employers’ liability and personal accident. Additional insurance cover such as kidnap and ransom, hull and machinery and enhanced limits of liability are available, depending on the risk appetite of individual organisations. Nick Roscoe, MD – Global Marine Practice, Marsh, said, “Marsh’s new facility addresses the common insurance requirements of all PMSCs with its core product, while lending itself to the personal growth ambitions of individual organisations with its additional services. By accessing Marsh’s facility, PMSCs can secure insurance provision that reassures their clients and supports the wider development of the industry as a competitive force in global maritime security.”







MINICAPE BULK CARRIER MV KAMLESH BERTHS AT ESSAR HAZIRA PORT GUJARAT saw the berthing of the first MiniCape vessel in India ‘MV Kamlesh’ by Essar Shipping (ESL). On its maiden voyage to Hazira, the vessel is carrying 1,00,000 tonne of coal from Australia for Essar Steel. Essar has created this new segment of 1,05,000 DWT (dead weight tonnage) and MV Kamlesh is the first vessel in a series of six that Essar will acquire in the next five months. This is in line with the company’s strategy to strengthen its bulk carrier fleet with modern vessels. These vessels would comfortably carry flexible quantities of coal/iron ore parcels to meet the growing cargo requirements of power, steel and other core sector industries in India. On the occasion of the berthing of the vessel, AR Ramakrishnan MD, Essar Shipping, said, “We are

proud to berth India’s first MiniCape. Such vessels are also ideally suited to Indian ports as they are uniquely designed with shallow draft and have the capacity to carry more cargo, thus benefitting our clients.” These double-bottom MiniCape vessels are built conforming to the standards of the American Bureau of Shipping. It will incorporate futuristic design and the latest technology. The ships will be environment-friendly and comply with the latest and the most stringent IMO regulations. They are capable of meeting global trading requirements and will have excellent deployability. These six state-of-the-art vessels built at STX Shipyard are specially designed shallow draft vessels that will provide substantially higher cargo carrying capacity.

ABG BAGS ORDER WORTH `500 CRORE FROM SCI ABG Shipyard, the country’s largest private shipbuilding company, has bagged a prestigious order amounting to `500 crore from Shipping Corporation of India (SCI) for the construction of six 80 T Bollard Pull AHTS Vessels. ABG will construct six 80T Bollard Pull AHTS Vessels, each measuring 63.4 metres with Twin Screw diesel Engine Driven 2,000 DWT. The vessels are expected to be delivered within 1-2 years with a gap of two months for each vessel. The company’s total order book as of date stands at approximately `16,600 crore. On this occasion, Dhanajay Datar, Whole-time Director & CFO, ABG Group, said, “This is a momentous occasion for us as it shows the confidence that SCI has in ABG and its capabilities. SCI is a leading shipping company in India and we value their alliance. We hope a win-win association with SCI for years to come”.

RAILWAYS COMMODITY WISE FREIGHT REVENUE UP BY 9.7% RAILWAYS has generated `55,382.80 crore of revenue earnings from commodity-wise freight traffic during the period of April 2011-January 2012 as compared to `50,487.91 crore during the corresponding period last year, thereby posting an increase of 9.7 per cent. Railways carried 791.84 million tonne of commodity-wise freight traffic during April 2011 to January 2012 as compared to 755.86 million tonne carried during the corresponding period last year, thereby

registering an increase of 4.76 per cent. The Net Tonne Kilo Metre (NTKM) went up from 4,98,014 million during April 2010-January 2011 to 5,24,186 million during April 2011-January 2012, thus showing an increase of 5.26 per cent. Of the total earnings of `6,173.57 crore from commodity-wise freight traffic during the month of January 2012, `2,583.54 crore came from transportation of 41.35 million tonne of coal and `615.32 crore from 9.92 million tonne of cement.


GATI TO FORM A JV WITH JAPAN’S KINTETSU WORLD EXPRESS IN order to strengthen its leadership position in India and establish its global presence, the Board of Gati has been exploring possibilities for some time now to create more value for its shareholders. To achieve this, the Board of Gati approved a proposal to form a joint venture (JV) with Japanese global logistic service major Kintetsu World Express under the name ‘Gati-Kintetsu Express’. Under the JV agreement, Gati will hold 70 per cent stake while 30 per cent will be held by KWE. As part of the transaction, the Express Distribution and Supply Chain (EDSC) business of Gati will move into the JV company through a Business Transfer Agreement. KWE will invest `2,677 Mn for its 30 per cent stake in the JV through a combination of primary and secondary acquisition of shares. The funds raised from the transaction will be primarily used to reduce debt. The JV company shall be consolidated in the financials of Gati. The JV company will support the large customer base of KWE, who have operations in India, simultaneously strengthening KWE’s distribution capabilities into the Indian market. KWE and Gati will partner in supporting the business expansion of domestic and international customers in the Indian market. The JV company shall also invest in high-end 3PL facilities, including temperaturecontrolled warehouses. Speaking on the occasion, Mahendra Agarwal, Founder & CEO, Gati, said “The partnership will help us leverage KWE’s global customer base, develop world-class infrastructure capabilities, enhance our distribution services and further strengthen our leadership position in India. This partnership will greatly enhance value for Gati shareholders.









FINANCIAL RESULTS GATEWAY DISTRIPARKS GDL’s consolidated Profit Before Tax (PBT) in Q3 was `47.3 crore. The PBT in the first nine months of the year was `143.1 crore. This exceeds the PBT for the whole year of FY2011 by 37.4 per cent. The Consolidated Net Profit after tax for Q3 was `33.1 crore. The Net Profit for nine months was `100 crore. The overall balance sheet position continues to be strong. Cash and cash equivalents stood at `160 crore, as compared to `148 crore as on March 31, 2011. The Net Worth increased to `1,048 crore from `984 crore. The Net Fixed Assets stood at `1,001 crore as compared to `983 crore at the end of FY2011. Commenting on the results, Gopinath Pillai, Chairman, Gateway Distriparks, said, “GDL has consolidated its position in all the three verticals. There has been optimum utilisation of all the major facilities. Our new CFS at Vallarpadam, Kochi, is expected to commence operations before the end of the current financial year and a new ICD has been constructed at Asaoti, Faridabad, which will commence rail operations as soon as regulatory approval for the rail siding, is received. Snowman is also expanding capacities at various locations. The GDL Group is expected to achieve its best ever results for the year ending March 2012.”

ALLCARGO ALLCARGO Global Logistics, one of the leading integrated logistics service providers in India, announced a 36 per cent jump in Consolidated Net Profit after minority interests to `51 crore for the quarter ended December 31, 2011 from `37 crore in the year ago quarter. The revenue rose seven per cent to `998 crore from `933 crore in the comparable period. The company’s EBITDA jumped 52 per cent to `117 crore from `77 crore, while the EBITDA margin stood at 12 per cent as against eight per cent in the earlier corresponding period. EPS stood at `3.88 against `2.82 last year. The company announced the merger of Project Division of its wholly owned subsidiary into itself and constituted a Committee of Directors to look into the demerger of its NVOCC business. Commenting on the results, Shashi Kiran Shetty, Chairman & MD, Allcargo Logistics, said, “The results are in line with our expectations. All our businesses have delivered results in the current macroeconomic scenario. We continue to invest in businesses with an objective of growth.” S Suryanarayanan, Director – Finance, Allcargo Logistics,


said, “We have once again delivered profitable growth across all business verticals.”

ADANI PORTS & SPECIAL ECONOMIC ZONE ADANI Ports and Special Economic Zone, India’s largest private multi-port operator and subsidiary of Adani Enterprises Ltd., India’s leading infrastructure conglomerate, reported its financial performance for the quarter and nine months ended December 31, 2011. The business highlights include: the name of the company has been changed from ‘Mundra Port and Special Economic Zone Limited’ to ‘Adani Ports and Special Economic Zone Limited’ effective January 6, 2012. The port position is now the fourth largest commercial port in India. The rail terminal at Agripark and West Basin became operational, handled the largest fertiliser volume of 1.87 MMT in a quarter, handled the first double stacked train from Patli in record time (270 TEUs in just 75 minutes), and handled 1,11,699 MT of coal in 24 hours on December 4, 2011, thereby beating its own record of 95,000 MT coal handled on June 17, 2011. Commenting on the performance, Gautam Adani, Chairman, Adani Ports and SEZ, said, “Adani Ports has shown yet another impressive quarter. Backed by continuous growth in volume and demand-supply mismatch in India’s port capacity, we see huge opportunity in the period coming ahead.” To elaborate the quarterly and nine months performance total income for the current quarter was at `693 crore – up by 53 per cent from `453 crore in the corresponding quarter last year. Similarly, the total income for the current nine months was at `1,850 crore – up by 43 per cent from `1,296 crore in the corresponding period last year. The cargo handled at Adani Ports was 48.48 MMT in nine months 2011-12. As expected, APSEZ continued to outperform other Indian ports. While all the major ports grew three per cent, Adani Ports registered a 29 per cent jump in cargo and 20 per cent in container business. The expansions at Mundra as well as at Hazira, Goa and Vizag are progressing as per plans. The operations at Abbott Point Terminal and Dahej are doing well. Progress on other projects Adani Ports has emerged as the highest bidder for handling port project in Kandla Port for setting up a bulk handling terminal at the port, located in Gujarat. Kandla is India’s biggest cargo handling port in terms of volume and one of





the 13 major ports controlled by the Union Government. The company started operations at Dahej Port in Gujarat. The expansions at Mundra as well as the new port development at Hazira, Goa and Vizag are on schedule which in aggregate would add an additional cargo handling capacity of about 115 million tonne, thus taking the total capacity, including Abbot Point, to about 300 million tonne by 2013.

ABG SHIPYARD ABG Shipyard, the country’s largest private shipbuilding company, announced a 14.65 per cent increase in Net Sales to `619.29 crore for the quarter ended December 31, 2011, as against `540.18 crore in the corresponding quarter (Q3FY11). The Net Profit for Q3FY12 stood at `46.47crore. For the nine months period, ABG reported a Net Sales of `1,723.50 crore, thereby witnessing a jump of 11.55 per cent as compared to the year-ago period. The Net Profit for the nine months period stood at `134.91 crore. As of date, the order book stands at `16,600 crore (approximately) and the company has delivered 149 vessels till the date.

ARSHIYA INTERNATIONAL ARSHIYA International announced a Consolidated Total Revenue of `273.36 crore for the quarter ended December 31, 2011, as against `212.46 crore in the corresponding period last year; thereby registering an increase of 29 per cent. The Consolidated EBIDTA for Q3FY12 was `77.73 crore, as against `43.96 crore in the corresponding quarter thus registering a 77 per cent increase. The Consolidated Net Profit for the quarter also increased 71 per cent to `34.45 crore up from `20.11 crore. Commenting on the results, Ajay S Mittal, Group Chairman & MD, Arshiya International, said, “We are extremely happy as Arshiya’s Mumbai FTWZ has witnessed further client additions and with the second FTWZ in Khurja going live, we expect a growing business momentum. We have seen positive impetus this quarter into our rail business. It is very satisfying to see Arshiya steadily and surely move towards being the only integrated logistics infrastructure and services provider in the country.”

BLUE DART BLUE Dart Express declared its annual financial results for the year ended December 31, 2011. The company posted `122.24 crore Profit After Tax. The income from operations was `1,489.60 crore. Anil Khanna, MD, Blue Dart Express, said, “The 2011 results have been in sync with our outlined expectations for the year. Going forward, we are committed to remain the ‘Express & Logistics Provider of Choice’ for Indian industries. While continuing to be the ‘Trade Facilitators’ in the country, we shall continue our focus on addressing the specific needs of the customers delivering customised solutions.” He added, “Blue Dart stands for quality, consistency,




reliability, passion and commitment. I thank every Blue Darter, associates, our customers and stakeholders for their support and for being our brand ambassadors. Blue Dart has robust plans for India and we are delighted to serve in ‘Blue Dart Country’ with a business and human conscience to remain the customer’s first choice.” During 2011, Blue Dart handled over 98.85 million domestic shipments, 0.81 million international shipments and over 4,23,200 tonne of documents and parcels across the nation and 220 countries worldwide.

TRANSPORT CORPORATION OF INDIA TRANSPORT Corporation of India announced its financial results for the quarter ended December 31, 2011. The company’s total revenue for Q3 registered a growth of 4.96 per cent rising to `467 crore from `444.93 crore in the same period last year. The EBITDA margin during Q3 increased from `34.03 crore to `38.57 crore over the corresponding quarter last year. The company’s total revenue for the nine months ended December 31, 2011, rose by 4.28% to `1,336.08 crore from `1,281.29 crore in the same period last year. The company’s PAT rose by 5.50 per cent to `40.69 crore from `38.57 crore in the same period last year.

PORT PIPAVAV APM Terminals Pipavav (Gujarat Pipavav Port) recently announced its Q4 results for the calendar year 2011. Continuing on its growth path, the company turned profitable registering a Net Profit of `571 million in CY2011. “Port Pipavav has steadily grown since 2009, when we started marketing our facilities,” said Prakash Tulsiani, MD, APM Terminals Pipavav, adding, “Despite the challenging time the industry is currently facing, our client base has grown. We have enhanced our infrastructure substantially and will continue to do so to serve the needs of our customers.” Both container and bulk cargo volumes have grown considerably. Container volumes grew 31 per cent over 2010 with a throughput of 6,10,243 TEUs. Bulk volumes grew 18 per cent in Q42011 as compared to Q42010 and recorded a growth of 10 per cent in CY2011. Rail volumes grew significantly, thereby recording a 71 per cent increase in the number of rakes and a 78 per cent increase in metric tonne, going from 3.09 million MT to 5.51 million MT. The port has undertaken several new projects to upgrade infrastructure. New container yards have been built, thereby bringing the capacity to 8,50,000 TEUs. New rail sidings, sheds for fertiliser cargo with automated bagging and loading in rakes, will be completed by Q32012. Three new rail mounted gantry cranes for container loading will also be installed and operational by Q4 2012. “The safety of our employees and contract labour is very important for us. Our objective is to reduce risks and improve safety by minimising the man-machine interface,” said Tulsiani.









AWARDS & ACCOLADES BLUE DART AND DHL ARE LIVING CORPORATE RESPONSIBILITY IN INDIA AT a glittering ceremony, Blue Dart Express and part of the DHL Group presented the inaugural Global CSR Awards. The awards recognised corporate social responsibility (CSR) champions across various industries and were part of the first World CSR Day. Hon’ble Union Minister of Corporate Affairs Dr M Veerappa Moily was the Chief Guest at the event. Malcolm Monteiro, SVP & Area Director (South Asia), DHL Express, said, “As a responsible organisation, we firmly believe in striking the right balance between economic benefits and social responsibility. The Deutsche Post DHL Group has been championing the cause of sustainability by being associated with activities that would make the planet a better place to live in. This not only includes supporting various causes, but also offering environment-friendly logistics solutions to our customers, thereby making them co-stakeholders in our efforts to minimise the impact of our business on the environment. The need of the hour is to have sustainability practiced in a sustained way by more corporations and we are sure that in the days to come, this cause will gain momentum in India.” Anil Khanna, MD, Blue Dart Express, added, “We are proud to be associated with the first World CSR Day in presenting the Global CSR Awards, which have seen champions of CSR being recognised for their contribution to make the environment a better place for future generations. Blue Dart itself has a very strong sustainability programme in place across platforms for which we have received accolades and we are sure that such recognitions will only help more corporations to strive harder for a better tomorrow.”

DHL SWEEPS AWARDS ACROSS FORWARDING BUSINESS IN INDIA DHL Global Forwarding, the leading provider of air and ocean freight services, have been awarded the STAT Times International Award for Excellence in Air Cargo – ‘International Freight Forwarder of the Year’. The company also bagged the ‘EXIM Achievement Award’ from the Tamil Chamber of Commerce for the highest number of Bills of Entry filed in 2010-11 in the Customs House Agency category. Commenting on the occasion, Christoph Remund,


CEO, DHL Global Forwarding India, said, “I am delighted that our efforts to meticulously refine our quality of service have been recognised. These awards are a testament to the strength of our robust international network, which spans 220 countries & territories and to the commitment of our team who work relentlessly to deliver excellence.” With expertise in industry sectors like technology and automotive, DHL Global Forwarding manages customs clearances for several large multinationals and Indian companies. The company’s Customs House Agent license is registered on a pan India basis covering all major and second tier customs stations. The customs division provides in-house value-added services such as refunds, valuation orders for related party transactions, appeals, drawbacks and self audits. Additionally, the company pioneered processes within the organisation by introducing a ‘central filing of all India customs entries’ through one location in India, resulting in operational excellence. DHL Global Forwarding’s state-of-the-art free trade zone facility at Tamil Nadu offers a one-stop customs clearance capability for quick processing of import & export declarations and efficient clearances.

MAHENDRA AGARWAL, FOUNDER & CEO, GATI RECEIVES ‘EXECUTIVE OF THE YEAR’ AWARD’ THE Indian Chamber of Commerce honoured Mahendra Agarwal, Founder & CEO, Gati with the prestigious ‘Executive of the Year’ Award 2012 (Logistics) for his contribution to the Indian supply chain & logistics industry at the awards function recently held in New Delhi. Agarwal established Gati in 1989 with an aim to revolutionise the logistics industry. Gati is the pioneer in the express distribution and supply chain solutions in India. Agarwal has to his credit many firsts that he has introduced/contributed to the Indian logistics industry.

TCI BAGS THE CUSTOMER & BRAND LOYALTY AWARD TRANSPORT Corporation of India (TCI), India’s leading integrated logistics and supply chain solutions provider, won the customer & brand loyalty in the ‘3PL/Supply Chain Sector’ at the glittering AIMIA 5th Loyalty Awards ceremony on February 1, 2012. Jasjit Sethi, President & CEO, TCI SCS, accepted the award from Louise Cantrill,





Director – European Operations Development, AIMIA, and Arjun Hira, GM – Brand & ARB, RHQ, Bharat Petroleum Corporation. Speaking on the occasion, Sethi elaborated, “Group TCI has been walking along with the Indian economy since 1958, annually moving 2.5 per cent of the GDP. In these 53 years of existence, we have evolved ourselves from basic trucking to express cargo to cutting-edge supply chain solutions, always with the customer as the core. We are happy that our customers who have helped us retain a leadership position for five decades, have voiced their support by this award.” “TCI has always been at the forefront of adopting best global practices along with technology and innovation to achieve customer delight. These awards are a testimony to TCI’s continuous focus on qualitative and value-added services coupled with our commitment to customer focus,” he added.

FUTURE SUPPLY CHAIN SOLUTIONS BESTOWED WITH MASTER BRAND AWARD FUTURE Supply Chains has been recently honoured with the prestigious ‘Master Brand Award’ from CMO Council, USA and CMO Asia. This award once again reiterates the fact that Future Supply Chains is one of the fastest growing and the leading technology-enabled company in the supply chain space. In the same ceremony, Anshuman Singh, MD & CEO, Future Supply Chains also picked up the ‘Retail Icons of the Year’ citation. This citation is a testimony to Singh’s continuous efforts towards bringing in efficiencies in retail supply chain. Keeping in mind the changing trends in the Indian market, ‘Master Brand Award’ is conferred upon those brands that appeal to a large set of consumers from premium to mass while constantly keeping in mind a consumer-centric approach. The Indian brands cape is going through an interesting phase with a healthy mix of popular international brands and local home grown brands emerging in every category. Key parameters such as thorough research, market data and consumer centric approach were extensively used while deciding and finalising the winner of the Master Brand Award.

DANFOSS INDIA AWARDS EMINENT PLAYERS IN THE COLD CHAIN INDUSTRY ENERGY efficiency has consistently been a priority at Danfoss, a global leader in energy-efficient solutions that help save energy and combat climate change. In keeping with this, Danfoss’ Refrigeration & Air Conditioning Division awarded outstanding individuals from all spheres of the cold chain industry for their contributions during the ICE Expo




awards recently held in Mumbai. The DANFOSS ICE Awards 2011 brought the cold chain industry together on a single platform. The panel encompassed leading consultants and officials from government bodies and industry associations among others. The awards categories ranged from owners, contractors, OEMs to consultants. The Danfoss ICE awards were presented to Ravi Kannan, CEO, Snowman Logistics; Xavier Perello Pairada, Regional GM – Asia, Schaefer Systems International; Pankaj Mehta, Assistant Director, Carrier Transicold Division, Carrier; Lalji Savla, MD, Savla Foods & Cold Storage; Jasmohan Singh, MD, Frick India and Kanwar Charanjit Singh, Kartarpur Cold Storage and Ice Factory. “I am pleased to bring forth the Danfoss ICE awards for we believe it signifies the importance brought about by such key players in the industry. Danfoss looks forward to enabling greater leaps in the country’s cold chain industry with the help of its partners and other players,” said A Rajesh Premchandran, VP – Refrigeration & Air Conditioning, Danfoss India. “We are here to encourage innovation and bring global best practices to the Indian cold chain industry. Looking at the statistics, India has the highest potential in the world to grow cold chain infrastructure to address not only local, but also global food problems. With the efforts of National Horticulture Board and Ministry of Food Processing Industries (MOFPI), the environment is very conducive for this industry to grow,” said Henrik Schurmann, VP – RC Operations, Danfoss India.

US EXPORT GROWTH TO CHINA WILL OUTPACE IMPORTS US exports to China will rise at a faster rate than imports during the next five years, aided by an annual increase of nearly 12 per cent in automobile exports, according to an HSBC Bank forecast. The report forecasts that the value of US exports to China will rise at an annualised rate of 7.1 per cent, while imports from China will increase at a 4.3 per cent rate. The report also forecasts faster growth of exports than imports in trade with South Korea, Mexico, Canada, Japan, Germany, the UK and Italy. Overall, US imports and exports are expected to increase at an annual rate of 1.95 per cent during the next five years, compared with 3.8 per cent trade growth expected for rest of the world. US import-export trade is forecast to accelerate to an annual growth rate of 5.7 per cent from 2017 to 2021, while the total global trade is expected to grow 6.2 per cent in the same period.



Thwarting India’s

GROWTH Prospects

With major players targeting the booming Indian market and its spirit of growth, better transportation system has become the need of the hour. One of the important modes of transport, the rail, is undergoing a major crisis in terms of price rise, bottlenecks and various other hindrances. These will continue to dampen its competitive spirit unless the problems are redressed at the earliest. NISHI RATH

INDIA has the second largest railway network in the world and carries more than 30 per cent of the nation’s cargo. However, the mode of transportation has been facing and also adding to a lot of problems since the past few years. Rail is the largest logistics provider for delivering coal/coal products to consumption points. As the country relies on coal for more than half its electricity, it is struggling to curb blackouts as delays in adding railway tracks obstruct fuel supplies. Many Indian mines are operating at one-third capacity as the rail system cannot move more cargo, Alok Perti, Secretary, Coal Ministry, recently said. Shipments from Chhattisgarh and Orissa, among the nation’s biggest coal-producing states, for instance, mainly use a single trunk line that also handles passenger services. “The problem is quite severe,” Perti said, adding, “We are constantly pushing Railways to expand their network.” Railways has to ease congestion by increasing capacity on existing lines, which can be done by adding more tracks. India has added only an average 180 km of railroads every year since gaining independence in 1947, according to the Rail Ministry. The nation currently has about 65,000 km of track network.

RAILWAY BOTTLENECKS Recently, ASSOCHAM raised concern over poor logistics infrastructure for the supply of iron ore and coal for the steel industry. “Moving iron ore and


coal by pipelines in slurry form has advantages like low operating costs and higher availability. Moreover, it is environment-friendly. The existing railway lines are almost reaching a saturation point,” said ASSOCHAM. “While augmenting Railways infrastructure is important, slurry pipelines may eventually reinvent raw material transportation for the iron and steel industry,” it said in the recommendations for the National Steel Policy being formulated. In 2008, the Planning Commission included pipelines for water and oil & gas eligible for infrastructure status, but slurry pipelines were not, despite being recommended by the Rangarajan Committee. “The ports proposed on Karnataka coast will depend on the completion of the Hubli-Ankola and Talguppa-Honavar rail lines to service the steel industry efficiently,” ASSOCHAM said, adding that, smaller ports too need to be provided with four-lane highways so that the movement of imported coking coal can be improved. “Finished steel products need to be moved expeditiously from the plants to ports as dynamic market conditions place heavy strains on logistic systems to deliver products to consumers in the shortest possible time at economical costs,” it added. The development of National Highway 63 and state highways connecting Bellary to Chitradurga, Hubli and Solapur will allow multi-axle load vehicles to speedily move freight of finished steel to south India, it said.

TOP PRIORITY TO FREIGHT CORRIDOR PROJECT Hon’ble Prime Minister Dr Manmohan Singh recently asked the Central Government ministries & departments and state governments to give top priority to the `1 lakh crore dedicated freight corridor project that will substantially reduce infrastructure bottlenecks. The project will connect a land mass of over 3,300 km in the country. It was also decided that the monitoring committees would be made by the states to resolve issues relating to the freight corridor project, especially land acquisition. Apart from this, the Dedicated Freight Corridor Cooperation India (DFCCIL) will keep a check on the progress of work with the targeted project completion date being March 2017. According to DFCCIL, 67 per cent of the land acquisition has been completed through the Railway Amendment Act 2008. As of now, the project is, by and large, on target. The western corridor from Dadri in Uttar Pradesh to the Jawaharlal Nehru Port Trust near Mumbai will be 1,499 km long. It will connect Haryana, Rajasthan, Gujarat and Maharashtra, with an exclusive high-speed railway track. The eastern corridor from Ludhiana in Punjab to Dankuni in West Bengal will be 1,839 km long, and will connect Punjab, Uttar Pradesh, Bihar and West Bengal. A major part of the western corridor will be funded with Japanese assistance and nearly two-thirds of the eastern corridor will be built with

World Bank assistance. The SonnagarDankuni section will be executed on a public private partnership mode. In addition, Indian Railways is investing a substantial amount in the project.

WORLD BANK TO THE RESCUE In October 2011, World Bank signed a $975 million loan agreement with the Department of Economic Affairs, Ministry of Finance, Government of India and DFCCIL to set up the Eastern Dedicated Freight Corridor-I (a freight-only rail line) that will facilitate faster and more efficient movement of raw materials & finished goods between the northern and eastern parts of India. The corridor will also allow Indian Railways to free up capacity and better serve the large passenger market in this densely populated region. This is part of India’s first dedicated freight corridor initiative – being built on two main routes – the western and the eastern corridors. These corridors

will help India make a quantum leap in increasing the Railways’ transportation capacity by building high-capacity, higher-speed dedicated freight corridors along the ‘Golden Quadrilateral’ – the four rail routes that connect Delhi, Mumbai, Chennai and Kolkata. Currently, these routes account for just 16 per cent of the railway network’s length, but carry more than 50 per cent of India’s total rail freight. The Eastern Dedicated Freight Corridor (EDFC) project will ease congestion choking the railway system and reduce travel-time for passenger trains on the arterial Ludhiana-Delhi-Mughal Sarai railway route. The corridor will add additional rail transport capacity, improve service quality and create higher freight capacity. It will also help to develop the institutional capacity of DFCCIL The World Bank financing for the EDFC will cover a route length of 1,130 km (of a total corridor length

of 1,839 km) and will be provided in three phases. In October, the project will finance the first phase, which is the 343 km section that runs between Khurja and Kanpur. The project will help increase the capacity of these freight-only lines by raising the axleload limit from 22.9 to 25 tonne and enable speeds of up to 100 km/hr.

IMPROVEMENT AREAS According to economists, India must invest heavily in transportation to achieve a long-term annual growth rate of 10 per cent. Identifying bottlenecks in the process of transportation from the source to consuming ends and suggesting plausible solutions to remove the same bottlenecks from the viewpoint of enhancement of reliability of logistics and reduction of logistics cost is one of the main areas to be focussed on to achieve this target. With inputs from IRIS

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New Barcode Reader To Expand Logistics Barcode Scanning Capabilities TO track a part through its lifecycle, manufacturers mark it with a permanent 2D code known as a Direct Part Mark (DPM). 2D DPM codes are marked on the part using several methods depending upon the material composition, part application & environmental conditions and can change while the part undergoes changes throughout its lifecycle. Because an image-based system must locate the mark before decoding it, lighting plays an important role in DPM applications involving metals or other difficult-to-read materials. These marks are challenging to read unless lighting adjustments can be made. The DataMan 300 offers an intelligent tuning technology with controllable lighting banks or external light sources to make this difficult application successful. Cognex Corporation has recently announced the new DataMan 300

presentation scanning. The DataMan barcode reader for high-speed logistics 300 is now available to take on fixed applications such as tote scanning, 1D code reading for high-speed label print and apply verification tote scanning and print and apply & carton code reading. The new DataMan 300 is a complement to the powerful DataMan 500 USPs reader, which has proven itself Camera-based barcode readers can throughout its introductory help the logistics industry achieve: year as the new choice for the • Higher read rates that can reduce logistics, retail fulfillment and costs and increase throughput distribution markets. • Visualisation to access data for “We saw an industry continuous process improvement that has been relying on laser technology and knew • Lower equipment costs because that we could offer a better, imagers have no moving parts yet affordable, image-based • Future proofing as 2D matrix codes solution for high-speed are becoming more prevalent logistics applications,” said through all industries. Carl Gerst, VP & Business Unit Manager, ID Products, lines.” The DataMan product line adding, “The DataMan 500 reads of barcode scanners can consistently 1D or 2D codes presented in any provide higher read rates than laser direction at high speeds for postal, scanners. parcel and package sortation as well as

Multi-tier Cost Management Solution To Enable Increased Profitability For Brand Owners TODAY, brand owners depend on complex networks of outsourced design and manufacturing partners for their expertise & the cost advantages they provide. Procurement professionals negotiate component, assembly and system contracts based on volume breaks and other performance factors with multiple types and tiers of partners. Transportation costs,

E2open, a leading provider of strategic, cloud-based solutions for global trading networks, recently announced the availability of E2 MultiTier Cost Management (MTCM), a new solution for brand owners and their trading partners designed to enable cost management on a continuous basis across multiple tiers of a trading network for increased profitability. “E2 MTCM

We see more companies investing in solutions to manage risk in supply networks, and part of that is understanding a multidimensional view to dynamic costs. BRYAN BALL, VP & PRINCIPAL ANALYST, ABERDEEN RESEARCH total volume price breaks, regional tax advantages, cost to serve, risk mitigation and aftermarket promotions are important factors. However, these factors can change at any time during the production process, even after an order has been placed, thereby making it difficult to optimise costs.


helps customers increase visibility and control in a world of accelerating supply chain complexity where demand is unpredictable and supply is not in your control,” said Mark Woodward, President & CEO, E2open. E2 MTCM enables brand owners, suppliers and contract manufacturers

to collaborate in real time during the production process on bills of material (BOMs) and related costs, cost forecasts and rebates. It captures frequent product and cost changes in an ‘execution BOM’, which is then integrated into multi-tier business processes for cross-network visibility and timely cost management. “Not only are costs not static, prices paid to vendors do not always reflect the ultimate cost to the enterprise, as schedules and item-level pricing are frequently updated in the procurement process. For example, rebate schedules and programmes can impact true cost, over a contract period, rather than just on the individual invoice or payment approval level,” said Jason Busch, Founder, Spend Matters, adding, “A multi-tier approach can be transformational in obtaining a true picture of the overall cost drivers across the supply chain. There is not a replacement for this visibility.”

New Apps Designed To Improve Productivity For The Mobile Workforce regardless of time or location,” USPs

FURTHER demonstrating its commitment to supporting the mobile workforce, Oracle recently announced Oracle’s JD Edwards EnterpriseOne Mobile Requisition Self Service Approval, Oracle’s JD Edwards EnterpriseOne Mobile Purchase Order Approval and Oracle’s JD Edwards EnterpriseOne Mobile Sales Inquiry applications. The new JD Edwards EnterpriseOne mobile applications deliver personalised services that extend user choice and help improve productivity by delivering management solutions, which can be accessed at any time or from any place. With the new mobile applications, JD Edwards EnterpriseOne customers can gain real-time insight into sales orders, item availability and item-based pricing. Customers now also have the ability to easily review and approve requisition self-service orders and purchase orders on mobile devices. “Our customers live in an increasingly mobile world and demand real-time access to important business data,

said Lyle Ekdahl, Group VP The new mobile applications available & GM, JD Edwards. for JD Edwards EnterpriseOne include: “The new mobile apps for • Mobile Requisition Self-Service JD Edwards EnterpriseOne Approval: Provides real-time are an example of our transaction processing for the review, continued commitment to approval or rejection of requisitions. helping customers access critical business information • Mobile Purchase Order Approval: in the format that best fits Helps enable mobile workers to their needs. With the mobile review and approve purchase orders apps, users can closely manage regardless of physical location. approvals, inventory and sales • Mobile Sales Inquiry: Addresses the orders in the office, in the needs of sales representatives, factory or on the road,” Ekdahl service technicians and managers by added. providing access to sales orders, According to Rebecca item availability and item-based price Wettemann, VP – Research, on-demand. Nucleus Research, “Intuitive, easy-to-use mobile applications that is meeting this demand, and with and services help organisations make the new JD Edwards EnterpriseOne faster and better decisions, while mobile applications and its broader giving employees a more flexible work mobile device support, it is well environment. Organisations need to positioned to help its customers realise enable their employees to access and the promise of the mobile and more leverage critical business information in productive workforce.” real time. Oracle is one of the vendors

FLoW Offers Retail Franchises And Wholesalers Greater Data Visibility can now see and manage their retail, WIPRO Technologies, the global franchise & wholesale operations information technology, consulting on one integrated dashboard. The and outsourcing business of Wipro, flexibility of the solution means that has announced the launch of ‘FLoW’, retail franchises and wholesalers have an Oracle-based pricing, supply chain more control over pricing, fulfillment and finance management solution, for the retail sector. The solution will provide retail franchises USP and wholesalers greater data ‘FLoW’ will enable users get a visibility needed for faster & more comprehensive view of their wholesale accurate trading transactions. The operations in sync with other technology is a composite solution functionalities of Oracle’s Retail Suite. to the Oracle retail merchandising This significantly increases visibility and system (RMS), developed in operational efficiency. line with results from customer feedback. & billing. Additionally, the solution, ‘FLoW’ will enable users get a which is fully aligned with Oracle retail, comprehensive view of their wholesale leverages Oracle RMS functionalities operations in sync with other such as item creation, transfers and functionalities of Oracle’s retail suite. replenishment. This significantly increases visibility “Historically, retail suites have and operational efficiency, as users

offered broad functionality for the general retail environment, but not much has been done for the benefit of franchises and wholesalers. Customer feedback indicates the need for a comprehensive retail solution that allows them the best of both worlds and allows the user to oversee the entire process from beginning to end. Wipro is uniquely positioned to provide this level of flexibility because of our deep retail knowledge and experience in working with a wide variety of retail businesses, across the globe as well as our strong partnership with Oracle,” said Mike Davies, VP, Wipro Retail – Europe, Latin America and Wipro’s Global Oracle Retail Practice. Collated by Prerna Sharma


PRICE TRENDS ROAD FREIGHT INDEX CHART FOR FEBRUARY 2012 IRFI TREND FOR FEBRUARY 2012 The RFI stood at 174 points for the month of February 2012, which is a 1% decrease in comparison to the corresponding period last year.

ZONAL FREIGHT TRENDS The overall freight rates have decreased slightly by 2.25% as compared to the previous month. The freight rate from Delhi has registered the highest decrease of 7.08% as compared to last month due to over capacity of vehicle for all routes.







COMMERCIAL VEHICLES DOMESTIC SALES: The overall Commercial Vehicles (CV) segment registered a 2007-08 2008-09 2009-10 2010-11 growth of 18.63% during Index trend for five years April-January 2012 as compared to the corresponding period last year. While medium & heavy commercial vehicles (M&HCVs) registered a growth of 9.70%, light commercial vehicles grew at 26.37%. However, in the month of January 2012 over January 2011, the growth in the sales of the overall CV segment was 13.52%.


FORECAST FOR MARCH 2012: The RFI in January 2011 over January 2010 had registered an increase of 4 points. The freight rates will remain strong in the months of January-March 2012.

Indian Road Freight Index (IRFI), a service introduced by Transport Corporation of India (TCI), is an index of weighted average lorry freight rates across various routes, calculated based on the route density and the dynamic freight rates of routes across the country. Knowledge Partner: Transport Corporation of India (TCI); website:; e-mail:


Image By Prerna Sharma


LSP SPss Must Give A Facelift To Their Approach & Operations “The future challenges belong to those who prepare for it today. It is time for the industry to look beyond ‘shelters’ & drive growth by building ‘windmills’,” asserts Zubin Poonawalla Poonawalla,, Promoter & MD, Poonawalla Consultants, during an exclusive interaction with Prerna Sharma. Sharma. Excerpts…


In conversation with, continued

LOGISTICS INDUSTRY IN 2011 AND BEYOND… The size of the Indian logistics industry is pegged at around US$30bn and is expected to grow at 13 per cent compound annual growth rate (CAGR) to US$54bn by 2012. Today, the demand for world-class logistics and warehousing facilities has grown tremendously. The logistics industry has emerged as a major service segment that caters to a wide range of sectors, including FMCG, automobiles, pharmaceutical and the fashion industry. In India, the logistics industry is on a high growth trajectory. The Indian logistics industry is poised for a significant leap forward in the years to come. And factors like the proposed introduction of common Goods & Sales Tax (GST) will create a favourable environment for the logistics industry. I anticipate a lot of growth in tier-II and tier-III markets as a large number of customers and shippers are going into these markets.

EXPRESS INDUSTRY OUTLOOK The express industry in India is demonstrating a growth rate of 1215 per cent. Information technology is playing a vital role in modernising and organising the logistics industry. The introduction of cost-effective models has propelled a paradigm shift in the Indian logistics market. The deployment of global positioning system (GPS), radio-frequency identification (RFID) and scanning & web-based solutions are aiding logistics firms to improve their productivity. All these factors will certainly propel the logistics industry to greater heights in the next 3-4 years.

SURMOUNTING CHALLENGES Infrastructure bottlenecks, transit delays, inter-change points and singleform documentation continue to persist. The poor condition of roads and highways leads to higher operating costs, often increasing maintenance costs & poor turnaround time.


Some of the other issues hampering its prospects are shortage of skilled manpower, complex tax laws and inefficient use of IT. Also, the Indian supply chain and logistics industry is mostly unorganised, marked by the presence of small players, including transporters, express cargo movers, courier operators, freight forwarders, container companies and shipping agents, which pose a threat to the organised growth of the industry.

COLLABORATIVE PARTNERSHIP: A MUST I think the key challenge on which 3PL/4PL players in the industry need to work on an urgent basis is to ensure that the relationship between the service providers and the end user industry reach a certain level of maturity. Exceptions notwithstanding, on an overall basis, the perception most carry is that LSPs are usually a commodity service provider rather than a value service provider. In the minds of the buyers of the logistics & supply chain services, the service providers are hardly specialists and a serious trust deficit exists in their relationships. LSPs are broadly looked at as ‘woodcutters’; whereas with the growing competition and volume pressure, the end user industry needs ‘carpenters’ who can design and mould that basic wood into designs, which suit the business needs. The most critical need of the day, therefore, is that LSPs give a facelift to their approach & operations, not only to deliver quantity, but better quality. Knowing well the importance of LSPs, people from the industry keep commenting like ‘Keep killing me on the COST front & keep cheating me on the SERVICE front’. This strong feeling of mistrust should be replaced with more of a partnership approach wherein both work in sync with each other, provide underlying support to each other and start thinking as ONE ORGANISATION instead of thinking in terms of ‘they & us’.

KPIs FOR 3PLs From LSPs standpoint, importance should be given to specialisation with regards to intellectual capital & expertise. LSPs should distinguish themselves and show value. The writing on the wall is clear, ‘It is not about those mundane mathematical cost-effective solutions, but it is all about customised and breakthrough efficient solutions’. Those who would understand this need and take proactive steps in the near future would be considered with respect and would have the edge over others in a very competitive environment. I strongly believe that in the coming years, LSPs would tend to fill in the gaps in their operational structure in a more serious manner. There would be more focus on sharpening of skill sets & adoption of advanced IT processes as key drivers to excel and stay on the top.

YOUR BIGGEST ACHIEVEMENTS It would be easy to judge my success by statistics, but it is far more relevant to judge it by the success of my esteemed clients – that is how I do it. I take pride in the process improvements that make my customers more efficient. I celebrate the economies of scale my companies give, which, in turn, helps our clients save money. I applaud the production improvements being implemented with my solutions designing team that impact my clients’ key performance indicators (KPIs).

CHALLENGES FACED I encountered four fundamental challenges during the journey, viz., dealing with increased currency volatility, preparing for ‘black swan’ events, the detrimental effect of too much focus on efficiency and reconsidering offshore outsourcing. I had the task to improve the performance of the supply chains while dealing with increased currency volatility. Political, economic & financial events in the current past have led to increased exchange rate volatility that

is likely to continue for some time. A key challenge was to create a balanced currency footprint to mitigate the effect of currency volatility. The second challenge was developing the capability to respond to ‘black swan’ events, which are rare, hard to predict & imagine and have a high impact. The answer to combating such events is not buying more insurance, but risk mitigation. We developed plans to deal with such events. We identified what to do, how, when & by whom; assigned responsibilities and authority to deal with the situation; monitored the situation and executed the plan as needed. The third challenge was to guard against the relentless focus on cost cutting & doing things faster to make supply chains more efficient for the end user. The short-term financial performance pressures create a bias and urgency to cut costs & reduce time as the benefits of such actions can have a positive effect on short-term financial results. However, such short-term actions increase the risks that something in the future could go wrong with the supply chain. Too much emphasis on reducing costs & time leaves a lot to be rethought of in the supply chain, thereby leaving room for making the supply chain brittle & prone to disruptions.

OFFSHORE OUTSOURCING We developed a comprehensive and dynamic view of the offshore outsourcing business model by using the 4PL. Offshore outsourcing has many advantages, including allowing the firm to focus on its core competencies, cost savings, benefitting from the supplier’s economies of scale, flexibility, faster time to market and lower risks. However, there were disadvantages of offshoring, too, such as incentives to squeeze vendors, loss of control, inability to effectively deal with disruptions and hard to pin down responsibility when things go wrong.

WHAT INSPIRES YOU TO GO AHEAD AND TAKE ON CHALLENGES IN LIFE? ‘When the winds of change blow; some build shelters, some build windmills’… The past year was of anaemic increments or buoyant recovery, one thing is certain – the clouds have cleared across industries & geographies. From trenches to boardrooms, the mood is anticipatory. The world economy is recovering & we have seen some of the key European countries and the Americas showing steady progress. Certain circles see the prevailing market climate as a tipping point, which will be triggered more by impending variables than industry constants. In focus FY11: Anticipating strong growth, investing with confidence Insight FY12: Increased demand for LSPs across verticals Future outlook: Will GST change the game? Uncertainties notwithstanding, the future challenges belong to those who prepare for it today. It is time for the industry to look beyond ‘shelters’ & drive growth by building ‘windmills’.

YOUR MESSAGE TO ENTREPRENEURS SEEKING TO ENTER LOGISTICS SPACE I believe that a lack of experience does not have to be a liability – it can be an asset. It is something you should play up when you discuss your ideas with prospective investors, partners & employees, rather than directing the conversation towards your other strengths. From the first days of my career, I have always used my own & my team’s lack of experience to our advantage. My inexperience fed our restless enthusiasm for trying new things, which became part of my core mission. No matter which industry you are planning to enter, you will almost certainly find that the same holds true for you.

YOUR SUCCESS MANTRA… My success formula is very simple! Have a haunting desire for success; have a single paramount goal in life;

acquire the perfect knowledge & skills for success in your chosen field; have a foolproof plan; have faith in yourself; create a group of successful or knowledgeable persons around you; work hard; have self-discipline; be good to others; & direct all your energies to your success. Success greatly contributes towards achieving happiness. A successful person is self-satisfied. He usually has name & fame, respect, authority and an easy life. However, the road to success is paved with hard work, sometimes failures, heartbreaks and bitterness. The happiness mantra can help us here. Happy people are generally successful as well; but successful persons may not necessarily be happy too. However, do not forget real success lies in giving and sharing success, helping & assisting others to be successful and loving & caring those who have not been successful. Make others successful and you will Be Successful!

YOUR AGENDA FOR THE NEXT 5 YEARS It is a dream for supply chain and logistics people – flow of information & availability of materials and funds can be provided everywhere regardless of time & location….My focus is on increasing efficiency of the supply chain and improvement of responsiveness to customers on a real-time basis…. and the dream is now becoming a reality and will be well adopted by the logistics fraternity in India through mobile communication wireless technology…. what it basically offers is accessing & delivering information by Anyone, Anywhere & Anytime, (3As)…. Logistics & supply chain is a ‘sunrise sector’ in India…I am extremely happy that there is ample space for competition to prosper & enough business for all professional players. I am confident that our trajectory will be moving up faster as the industry develops. A more efficient India is good for everyone.



Over the last few years, the rail freight traffic has been growing and this trend is likely to continue. Indian Railways has been gearing up to meet this additional rise in loads. It has taken some initiatives such as introducing double-stack container movement, placing newly designed open & covered wagons for higher carrying capacity per rake, upgrading existing wagons to increase carrying capacity, introducing longer freight trains to improve throughput and developing dedicated freight corridors. ARINDAM GHOSH

INDIA’S GDP is expected to exceed US$2 trillion by 2020. But to realise this potential, Indian Railways must achieve an annual growth of 10 per cent over the next decade. Over the last few years, rail freight traffic has grown in the range of 7-11 per cent annually. The figure for freight carried by Indian Railways has increased from 670 mn tonne in 2005-06 to 890 mn tonne of freight in 2009-10 and by the end of the 12th Five Year Plan period, Indian Railways is expected to carry about 1.5 billion tonne of freight traffic. Further, Railways targets to increase its market share of freight movement in the country from the current 35 per cent to at least 50 per cent by the end of this decade. Such ambitious objectives can only be achieved when there is additional capacity being developed at the same time to support the


projected figures.

INITIATIVES PLANNED Working in this direction, Railways has planned some initiatives. According to Indian Railways’ Vision 2020, it will establish associations and partnership with major logistics service providers. Besides, new & innovative technologies would be implemented to track the movement of cargo and, in the process, meet delivery schedules. The Railways would further strengthen its position



in the bulk segments it presently serves and expand into transporting new commodities like automobiles, fly ash, consumer goods, etc. In keeping with this goal, adequate number of wagons, including high-speed and high-capacity wagons to meet specific requirements of commodities, would be procured. Also, since the eastern and western dedicated freight corridors would create huge capacity addition in meeting the freight demand and also improving the quality of services, similar corridors may be developed connecting other regions of the country as well. This step is expected to come in as a strong push towards bridging the demand-supply gap. Commenting on the current demand-supply gap, Manish Saigal, Partner & Head – Transportation and Logistics, KPMG, India, says

of the country’s total energy that the demand-supply consumption. This aspect gap in the freight carrying Presently spread over 81,500 km and bringing about of Railways plays a crucial capacity of Indian Railways 6,900 stations under its ambit, Indian Railways is the has been discouraging over second largest rail network in the world and has role in saving costs. the recent years. “This about 30 per cent freight trains, which account for has been especially critical CONSTRUCTIVE MEASURES about 65-70 per cent of Indian Railways’ revenue. with respect to cargo TO MEET ADDITIONAL LOAD evacuation at ports – India’s Considering the rate at significantly augmented to increase most critical EXIM-gateways,” he which the Indian economy is growing, its freight carrying capacity. avers. Despite the existence of rail it has been estimated that the country is • The rolling stock must be connectivity to most of the ports in going to be the second largest economy modernised and new & higher the country, lack of rakes proves to after China in 2050. However, India’s capacity locomotives need to be be a key bottleneck hampering timely ambitious goals cannot be achieved inducted. and efficient evacuation of EXIM without creating adequate capacity in • The average speeds must be cargo. “With no dedicated rail freight the Indian Railways’ network. significantly increased. corridors in place, the freight currently The government’s 2020 vision for • Special attention must be paid to moves on the same rail networks used Railways talks about an increase in augmenting the carrying capacity of for passenger transport, where it is capacity addition by doubling and the trunk routes which account for given secondary priority. However, we quadrupling lines, complete segregation only 16 per cent of the network, but hope that once the dedicated freight of passenger & freight lines on high carry 50 per cent of the traffic. corridor comes in place, this challenge density network (HDN) routes, • An important component of could be significantly addressed at least substantial segregation on other routes Railways modernisation has to be in some geographic pockets of India’s and electrification on busy trunk routes. extensive development of safety hinterlands,” he elaborates further. Keeping in mind the future, Railways measures. Moreover, since the development would need to introduce doubleAccording to Saigal, Railways of the western and eastern dedicated stack container movement on more has been taking various measures to freight corridors projects is expected routes. Few other regions may witness improve its capacity. These include: to play a crucial role in upgrading the increased traction for developing • Introducing double-stack container capacity of the system and in bridging dedicated freight corridors since the movement the demand-supply gap, the completion western corridor could itself play a • Placing newly designed open and of these projects must be undertaken significant role in reducing the demandcovered wagons for higher carrying in a time-bound manner and carefully supply gap given that it is expected to capacity per rake monitored to avoid delay. be 3.8 million TEUs per year in 2016• Upgrading the existing wagons to 17 and further increase the capacity increase its carrying capacity to 5.3 mn TEUs per year in 2021-22. STEPS TO TAKE ON ADDITIONAL LOADS • Introducing longer freight trains to “In the background of such expansion Going forward, Indian Railways improve throughput plans, the focus on investments too may witness additional pressure to • Developing dedicated freight has been increasing. In the 10th Five meet the growing demand for freight corridors. transportation. For instance, as Year Plan (2002-07) `1,02,000 crore estimated, India may need to import was invested, while in the 11th Five more than 150 million tonne of coal Year Plan (2007-12), an investment ECO-FRIENDLY EDGE OVER ROAD annually as against 83 million tonne of `2,00,800 crore was made. We TRANSPORTATION in 2011. This would directly translate estimate that the Railways may get Given the high levels of awareness into increased pressure on Railways to double the planned investments about protecting the environment for the movement of such imports to the tune of `4,00,700 crore in the and reducing the levels of emissions, to hinterlands. While this implies 12th Five Year Plan (2012-17). With rail definitely comes as a big gain in widening the demand-supply gap this direction. Rail generates only such trends in place, Railways is further, it would also open up a plethora 28 g equivalent of carbon dioxide. expected to play an increasingly crucial of opportunities for expansion. Comparatively, the carbon dioxide role in freight movement across the Some of the steps recommended by emission levels are almost three length and breadth of the country,” the Planning Commission to improve times for road at about 84 g. Even concludes Saigal. Railways include: a moderate shift from road to rail is • Indian Railways’ network has to be estimated to save close to 0.7 per cent






With the rail transportation getting a renewed thrust in terms of policy initiatives, all eyes are on the upcoming Rail Budget, to be announced on March 14, 2012. Set to revolutionise the fortunes of logistics & supply chain infrastructure, and, in turn, the Indian economy, this year’s Budget holds many promises to fulfill… PRERNA SHARMA & ARINDAM GHOSH

The Rail Budget, undoubtedly, is a keenly awaited annual fiscal event for the entire nation, and is also of interest to container train operators. Initiatives and policies announced during the same have an impact on the business dynamics of the operators. In terms of Arshiya Rail’s expectations from the forthcoming Rail Budget, Arshiya Rail only expects that the ministry should acknowledge the various issues being faced by the sector and take positive steps such as withdrawing the various rate hikes, especially the domestic rate hikes for nine commodity classifications (126 commodities). This will allow the industry to recuperate and also help regain lost confidence among investors in the PPPs of India’s rail space. These positive moves can be of utmost importance and decide the fate of future investments in the sector. The ministry also needs to keep in mind the mammoth `14,00,000 crore investment mandate by 2020, which, to us, currently seems like a distant dream considering the current state of affairs.

Logistics is suffering owing to capacity and connectivity constraints for freight movement by rail. In addition to the two dedicated freight corridors; north-south, eastern seaboard, west-south corridors should be created. This will ensure that passenger capacity is de-linked from freight releasing capacity. This will also release a lot of pipeline inventory for the industry. Secondly, port connectivity to the hinterland should be augmented by speeding up projects and also doubling the lines. Thirdly, the freight for light cargo, especially in containers, should be equated or made marginally lower so that these goods can come back to the Railways through container operators. The introduction of trailer on flat car (TOFC) service and rail roaders should be started on a pilot basis during the next financial year. Lastly, the container terminals of Railways should be used by all and not just CONCOR.

– Sajal Mittra

– SL Ganapathi

CEO, Arshiya Rail Infrastructure

COO, NTL Logistics Plus India


I believe that there are certain critical factors that need to be addressed in the upcoming Rail Budget. These include: Investment Through PPP • Railways should invite the industry to invest through the PPP model in creating more rolling stock assets through customised wagons to cater to the industry’s needs. For the success of the PPP model, the policy framework must be transparent and investors’ interests should be safeguarded. Infrastructure Creation • The current rail network in India is not adequate as compared to the burgeoning rail freight business. Railways need to invest in decongesting the highly saturated routes, like the coal & iron ore belt, besides trunk routes, to create more line capacity. • Speedy electrification & doubling of identified routes, creation of third & fourth lines on bottleneck terminals is urgently required through the automated signaling system. The introduction of automatic signaling territories on main lines can reduce congestion and augment line capacity with less investment. • Creating multi-modal logistics parks along the DFC can go a long way in increasing Railways’ cargo share. In this way, it can also use its surplus land & earn incremental revenue from its dormant resources. • Railways must also keep investing in customised wagons based on the industry’s feedback. Specially designed heavy haul wagons & advanced locomotives with increased haulage capacity can contribute to speedier transportation. Time-bound Delivery • The Budget should also focus on the need for timely delivery of goods. Railways should run freight trains like passenger trains, i.e., time-scheduled freight trains in all major routes to ensure better customer service, like Rajdhani rakes on the Delhi-JNPT circuit. Railways must also introduce time-bound services on other routes to gain the industry’s trust. Facilities At The Terminal • Facilities at all rake handling terminals should be upgraded to ensure speedy releasing of rakes. As Railways insist on improving turnaround time for rakes, it must also ensure world-class facilities at all terminals to improve handling facilities. It can also outsource such services to ensure better results. – Vineet Agarwal Joint MD, Transport Corporation of India

The DFC is an excellent move and hopefully should get commissioned by March 2017. There should be no increase in the gestation period. Apart from this, there should be a proper monitoring mechanism in place to prevent cost escalation. The high-speed railway track should materialise. Also, the entry of private container train operators in January 2006 was a good move. However, subsequently, there have been continuous hiccups due to the lack of clarity or inconsistency pertaining to haulage charges, maintenance of wagons, time taken, transit time guarantees and terminal access charges. Indian Railways needs to examine the case of each private train container train operator in order to ensure viability. It needs to make sure that timely service is given to container train operators so that they can, in turn, commit to their customers. Such an approach would be considered a healthy PPP for future development programmes. Lastly, rail should not consider the road sector as a competitor; rather, it should try to see the logic and synergy of last mile connectivity through inter-modal services and thus bring down the logistics cost in totality. - TS Narasimhan, Executive Director, Darcl Logistics



FACILITATING A SMOOTH SHIPMENT PROCESS With the initiatives being created at inland container depot (ICD) Tughlakabad for the smooth shipment of cargo along with facilities brought by the newly constructed ICD at Dadri, the EXIM trade of the North India hinterland would benefit to a great extent. But more importantly, the ICDs would play a significant role in due course in handling the growing volume of cargo from the hinterland. WITH CONCOR’s Tughlakabad Inland Container Depot (ICD) rationalising its cargo handling space and ICD Dadri offering additional facilities, both the ICDs would complement their smooth operations in the years to come. But most importantly, it would lead to a large-scale benefit for the EXIM trade belonging to Delhi and the National Capital Region (NCR) as they can continue to use the facilities of CONCOR’s Tughlakabad ICD. Moreover, CONCOR’s Tughlakabad ICD is undertaking large-scale initiatives for handling larger volumes of cargo along with ensuring smooth shipment of the same.


NEED FOR IMPROVEMENT The foremost initiative undertaken by CONCOR-owned ICD Tughlakabad to handle its growing large volumes of cargo and ensure its smooth transportation has been through firming up plans for the improvement of the depot’s entrance road on a priority basis. According to senior officials of ICD Tughlakabad, “Improvement of the entrance road has become a

dire necessity for the depot to avoid any traffic congestion at present and in due course.” ICD Tughlakabad handles 800 trailer trucks per day and the volume is likely to increase with large-scale container traffic forecasts from the North India hinterland. Improvement of the entrance road is being undertaken to minimise the breakdown of the container trucks carrying EXIM shipment. “With

ICD Dadri is well connected through the Noida-Greater Noida Expressway, thereby ensuring smooth movement of cargo to and from the depot. Moreover, with ample space available at the newly constructed depot, there is minimal turnaround time of the container trailer trucks. SENIOR OPERATION OFFICIALS, ICD DADRI

improvement in the road condition, congestion within the depot would lessen. This would ensure quicker turnaround of the trucks, thereby creating additional space for container trucks to come in,” officials explain. Noticeably, the depot has deployed cranes for moving trucks in case of a possible breakdown. Improving the long stretch of the entrance road will also streamline smoother cargo movement between ICD Tughlakabad and its container freight stations (CFS) located at Patparganj in Delhi and Ballabgarh at Haryana. Additionally, it will ensure cutting down of transportation time following its journey through the congested Okhla region of Delhi. In addition, the depot is taking initiatives to facilitate better coordination between the customs authorities and the freight forwarders to ensure faster turnaround of cargo.



area of Ghaziabad, Sahibabad, Noida, Bulandshahr, Meerut, Sikandrabad, Greater Noida, Uttarakhand and Western UP. ICD Dadri also has the backup support of CFS located within the depot’s vicinity. There are four CFS at ICD Dadri jointly operated by CONCOR and private parties. In case of delay in movement of the cargo from the ICD, shippers can store it at the CFS for its timely evacuation.

CONNECTIVITY ISSUES FOCUS ON ICD DADRI Based on the feasibility with equivalent facilities, exporters can also look at ICD Dadri as a secondary option. Apart from ICD Tughlakabad, exporters from Delhi and the NCR region can also use the facilities of ICD Dadri in Uttar Pradesh. Taking their shipment through ICD Dadri from Delhi and from the NCR region will facilitate exporters as there would be minimal road restrictions while moving their cargo. According to senior operation officials at ICD Dadri, “ICD Dadri is well connected through the NoidaGreater Noida Expressway, thereby ensuring smooth movement of cargo to and from the depot. Moreover, with ample space available at the newly constructed depot, there is minimal turnaround time of the container trailer trucks.” As a consequence, the transportation haulage charge tends to be less for exporters moving their cargo through ICD Dadri – a factor that can also benefit shippers in cutting their lead times. ICD Dadri serves the catchment

At par with its counterpart, ICD Tughlakabad, ICD Dadri has adequate rail and road connectivity services to and from the gateway ports. This happens to be the most important component for the timely shipment of apparel EXIM cargo in order to cut down on time involved in delivery schedules and, at the same time, ensure that the ICD is well placed. As is well known, there are a number of heads involved in the production process for EXIM trade – beginning from the sourcing of raw materials to the final production of the finished products. The process has got a considerable time element involved. This, as a consequence, puts the trade under pressure in meeting the delivery schedules. However, with sufficient rail and road connectivity in place, the time taken in delivery schedules can be arrested and the total time span involved in production can be offset. ICD Dadri runs three trains per day to Jawaharlal Nehru Port Trust (JNPT) and a weekly service to Pipavav and Mundra ports depending

on the volume of cargo. The rail out of the cargo to the ports is within 24 hours. However, ICD Tughlakabad is a little better placed than ICD Dadri as it runs 6-7 trains per day to the gateway port of JNPT. Besides, the depot also runs a service every alternate day to Mundra and Pipavav ports with a transit time of 43 hours. The rail out period of the cargo for ports is also within 24 hours at Tughlakabad.

CFS FACILITIES OFFERED When it comes to facilities offered in terms of railway connectivity, the facilities of ICD Dadri are equivalent to that of ICD Tughlakabad. ICD Dadri has adequate warehouse facilities with adequate CFS space facility support provided by four individual private players, viz., Star Track Terminals, Trident Terminals, CMA-CGM and Albatross, in collaboration with CONCOR. The CFS also offer a range of facilities for handling apparel cargo; prominent among which include, garment on hangar facilities at the warehouse, shrinking and wrapping facilities, barcoding, labelling & ticketing and group age consolidation. Noticeably, the CFS has a secure enclosure for high-value cargo like apparel. Besides, they provide assistance to shippers and customs for faster and smoother inspection of the cargo for its rapid clearance. Further, in terms of facilities and infrastructure, all the CFS are custom bonded warehouses located adjacent to the ICD Dadri rail terminal. They have fully computerised systems for cargo and yard management apart from possessing cargo track and trace facility on the website. They also have customs clearance facility at site with EDI linkage, when commissioned. Additionally, the CFS provide real-time updates on activities at the gates and warehouses. They are also equipped with a modern business centre offering customers state-of-the-art facilities.



Ready to Infuse

Fresh Vigour The much debated issue of public private participation in rail transportation still haunts the fortunes of Indian Railways. While the private players are all set to enhance network efficiency, it’s the government’s lacklustre attitude that has been keeping such investments on hold. It’s high time that the government takes some stringent stance to offer private players a boost and thus, ride the phenomenal growth waiting to be tapped… ARINDAM GHOSH

THE projected investment required in the rail space for the upcoming 12th Five Year Plan beginning April 2012 is a whooping `7,50,000 crore. For the government, raising this fund will be highly difficult – a factor which offers tremendous scope for the private sector to make investments in the rail sector. Elaborating on the same, the Planning Commission states, “Private container train operators have already commenced operations and are competing with Container Corporation of India (CONCOR). It is important to ensure that they are given a level playing field with CONCOR so that private investment in this important area is expanded. Other possible areas for private investment include setting up of multi-modal logistics parks, development of manufacturing units for locomotives and railway lines connecting the rail network to privately developed ocean ports. New areas also need to be explored.” Discussing the benefits of private sector participation, Sajal Mittra, CEO, Arshiya Rail Infrastructure, comments, “With the privatisation of container rail movements in India, efficiency has


been brought into the system. This is highlighted by the fact that Indian Railways has achieved higher growth in the rail container freight market. The rail container freight market has grown by 15.8 per cent (FY10) as compared to the overall freight growth of 6.6 per cent for Indian Railways and an annual average growth rate of around 10 per cent for the road industry.”

OPPORTUNITIES FOR PRIVATE PLAYERS Since 2006-07, when CONCOR first permitted private players to enter and operate in the container freight segment, the share of CONCOR declined from 100 per cent in fiscal year 2006 to about 77 per cent in fiscal year 2010. “Of course, the major reason is increased competition between CONCOR and its private

The current dearth in private investments in the rail space is primarily due to the trust deficit between the private players and the Railways due to the restrictive policy regime of the Railways.

counterparts,” explains Manish Saigal, Partner & Head – Transportation and Logistics, KPMG, India. “Such increased competition resulted in the availability of more efficient, reliable and secure rail-based freight movement to end users, thereby increasingly attracting customers who previously had no choice other than CONCOR,” he adds. Currently, about 16 private players are associated with Indian Railways. Explaining the opportunities that Indian Railways offers private players, Mittra highlights the following four important points: • Based on the GDP growth rates, India’s overall freight volumes are set to double from the existing 3 billion MT to around 6 billion MT by 2020. The Indian manufacturing sector has seen good growth in recent times. Most of the bulk manufacturing industries like iron & steel and cement, have expansive capacity expansion plans lined up in the near future. As most of these commodities are generally moved by rail, there is bound to be a huge opportunity for container train


SINCE 2006-07, WHEN CONCOR FIRST PERMITTED PRIVATE PLAYERS TO ENTER AND OPERATE IN THE CONTAINER FREIGHT SEGMENT, THE SHARE OF CONCOR DECLINED FROM 100 PER CENT IN FISCAL YEAR 2006 TO ABOUT 77 PER CENT IN FISCAL YEAR 2010. operators on the domestic front. • The EXIM volumes being handled at the ports have been growing rapidly. Also, a large number of new ports have either been commissioned or are at various stages of completion. Additionally, since all these ports will have rail connectivity, they will also be an important growth driver for container train operators and the Railways at large. Moreover, an increase in overall traffic would surely ensure a growth in volumes for rail as well. • Further, the current penetration levels of containerised rail movements in India are very low. Even in the well established EXIM container segment, rail accounts for less than one-third of the overall movements; whereas the remaining volumes are being moved by road. Most of the customers are moving these volumes through road due to poor service levels in rail. This shows that there is immense potential to churn traffic away from road transportation in the EXIM segment as well. • The real opportunity, however, lies in the domestic segment. The share of domestic containerised movements by rail in India is negligible to say the least and constitutes less one per cent of the overall freight being moved by the Railways. Nonetheless, we truly believe that private container terminal operators (PCTOs’) share in this pie will see exponential growth provided it receives adequate support from Railways.

CHALLENGES FOR PRIVATE PLAYERS Commenting on the challenges, Mittra

highlights some the challenges faced by Arshiya, which include: • Frequent rate increase by the ministry • Introduction of restrictive circulars, such as RC-30/RC-05, which have changed the Freight All Kinds (FAK) rate system and differentiated between EXIM and domestic cargo • Lack of service level commitments • Delay in providing clearances for terminals and other projects • Lack of incentives in the policies being launched • Availability of terminal facilities in and around the point of origin and point of destination • Low levels of consolidation and aggregation of cargo. “Arshiya has been subject to some stiff challenges as mentioned above. However, unlike most of the other operators, Arshiya has continued to Year FY06 FY07 FY08 FY09 FY10

CONCOR market share (%) 100 95.7 87.4 80.6 77.1

Private players (%) 0 4.3 12.6 19.4 22.9 Source: KPMG

provide quality services to its domestic customers without passing on any undue rate increases even though the same have been made applicable to domestic container train operators, including Arshiya, by the Indian Railways,” Mittra elucidates. Undoubtedly, private players have all seen their fare share of challenges. However, there is enough opportunity in the market for all the 16 new container train operators to tap.

The current dearth in private investments in the rail space is primarily due to the trust deficit between the private players and the Railways due to the restrictive policy regime of the Railways.

NEED FOR INVESTMENT-FRIENDLY MEASURES The only worthwhile Railways’ PPP initiative to have taken place is associated with container trains. Of the total 390 rakes in the country, they together operate 130-odd rakes. But these operators have hardly invested in container terminals, which have majorly remained with the state-owned CONCOR. A combination of the sector’s capital-intensive nature and the government’s thrust on the private sector has come as a strong push to PPP agreements in the sector. However, to encourage more PPP mode of financing, it is crucial for the government to bring in more transparency and clarity along with investor-friendly norms. The government needs to design models where the interests of the private players remain protected. There is also a need to implement a mechanism for the speedy implementation of projects as well as enhancing service quality. Moreover, provisioning capacity expansion and giving top priority to customers’ interests along with investor-friendly norms will offer investors lucrative paradigms. If the share of PPP investments has to come anywhere close to the targeted one-third of the total plan outlay, then Indian Railways would have to take some revolutionary steps – introducing investment-friendlier policies, maintaining consistency with the existing policies & treating private players as partners and not as competitors in order to regain the lost confidence of private investors will pave the way for further growth.



Eying OPPORTUNITIES Amid Challenges Over the past few decades, Indian rail logistics has witnessed some major advancements. With an aim to offer rail logistics a further boost, the government is now working on setting up infrastructure like dedicated freight corridors and implementation of double-stack containers. Despite all such an impressive line up of measures, the rail logistics has not been able to meet the growing customer requirements. Railways indeed has many challenges to face, but with apt planning, it is all set to reign over other modes of logistics transportation. SUPRITA ANUPAM

LOGISTICS is not only about transportation; it is much more – it is the art as well as the science of planning, implementing, managing & controlling the flow and storage of goods & services and then, tracking the information via a closed loop control method. In the last few years, Indian rail logistics has seen major advancements and initiations like dedicated freight corridor construction between Delhi and JNPT, Mumbai, & similar corridors under construction in the southern region, implementation of double-stack containers between Patli and Mundra & fruit trains from Afghanistan to Delhi. Despite this, Indian rail logistics has been unable to meet all the customer requirements. Indian Railways earns 30 paisa per passenger per km, which translates into big losses for the Railways. This loss then gets linked with logistics, thereby making it much costlier than


it should actually be. India, which has the second largest rail network in the world, should have been on a high growth trajectory, but with 30 per cent share in Indian logistics – unlike China, where rail logistics share in goods transportation is 50 per cent – simply indicates that whatever done so far is still not enough to compete globally. Mamata Banerjee, while introducing the Rail Budget in Parliament, echoed Swami Vivekananda’s line: ‘Strength is life and weakness is death’. While we all know about the strengths, let’s first understand the major weaknesses: Lack of dedicated freight corridors In logistics, timeline is said to be the deadline and meeting the deadline remains top priority for logistics. However, in the Indian rail perspective, it is not the case. Explaining the difficulty, N Raja Ram, Deputy GM – Inland Container Depot, CONCOR

India, Southern Region, says, “Indian Railways gives top priority to passenger trains. So, whenever a passenger train arrives, we have to let it pass first. Because of a large number of passenger trains, container trains keep waiting. This makes it difficult for container trains to meet the deadline.” A passenger train boarding at Delhi takes one day to reach Mumbai, while a goods train almost takes six days to reach. Slow Pace of Progress In a bid to redress the issue, the government announced the initiation of the Delhi-Mumbai Dedicated Freight Corridor and few others under the Dedicated Freight Corridor Corporation of India (DFCCIL). However, owing to the slow progress of the freight corridors, deadlines continue to be missed – first it was 2013 and now, it is 2016. This can be clearly understood by

the fact that in 47 pages of Rail Budget 2011, only seven lines were on freight corridor construction, while more than 70 lines were on philosophy. Apart from this, there is slow progress because of other reasons as well. The whole quadrilateral freight corridor would cost more than US$18 billion — a big challenge now solved with the help of Japanese International Cooperation Agency (JICA) and World Bank. Veteran Columnist and Former Member – Mechanical, Railway Board, Ramchandra Acharya feels the main reason is land acquisition. “Negotiating with one lakh land owners is not an easy task. It will take time,” he says. Besides, the project is also facing green challenges in several places. For e.g., Delhi-JNPT corridors require 19.6 hectare of forest including 4.13 hectare of private forest land. Higher cost of transportation When compared to the US, Russia and China, the cost of transport per km in India is almost 2-3 times than that of China. For bulk supply, it is still cheaper than road, but then, companies do expect it to become cheaper. Since, Indian Railways still aims to be the cheapest for passengers rather than goods, logistics cost management is not as cost effective as it should be. Acharya elaborates, “As is evident, they have not increased the passenger trains’ fare for the last eight years. So, somewhere they will have to compensate the subsidies.” Limited Commodities The whole Indian rail logistics still revolves around eight major commodities – coal, fertilisers, cement, petroleum products, food grains, finished steel, iron ore and raw materials to steel plants. About 90 per cent of all the commodities comprises of these. Elaborating on the need for rail logistics service providers for widening their ambit of operations, Ramachandra Kulal, Manager – Operations (Bengaluru), Atlas Logistics, explains, “Our customer requirements do not suit rail service as they are comparatively in small

quantities. Hence, for rail to become a viable option for us, it will have to expand its service viability to small quantities service as well.” Lack of Competition Competition is the key to success. Without competition, success is a myth. Despite the new container policy brought on January 5 2006, very few CTOs showed interest after the second round. CONCOR still holds most of the market share of rail logistics. The reasons behind this are said to be high risk factors, big investments and shrinking liquidity. Also, high entry barriers to the public private partnership (PPP) are inhibiting companies from entering the arena. Acharya believes, “Most companies who own a licence are disinterested in the rail business as it is unviable for them. Barring a few logistics companies like Adani, others are trying to sell their licence.” Lack of Flexibility Today, companies want their goods delivered on time. Sometimes, they even ask for the delivery of goods before time. However, considering the lowest priority being given to container trains, it is almost impossible to deliver such kind of requirements on time or even, before time. In this context, a report submitted to the then Railway Minister Lalu Prasad Yadav, stressed on adding extra wagons to passenger trains to optimise the service by increasing flexibility and maintaining a balance of cost between passenger fares & goods transport. But the plan, in its true sense, is yet to be implemented. Lack of Automation Automation, in logistics, stands for building and managing the entire shipping cycle from shipment initiation to delivery, and tracking & tracing the same at any stage of the shipment cycle. Commenting on the same, PV Rajiv, DGM – Container freight static, CONCOR, says, “Equipment wise, we are not lagging, but the most works in Indian rail logistics are still being done manually. Efficiency does matter. We are working on enhancing the capacity

of goods train.” Acharya, however, clarifies, “If you are talking about automation, yes most of the US rail logistics – their loading and unloading have been fully automated. In India, ACC Cements’ rail logistics, with their advanced wagons, have automated the whole process. The same thing has been initiated for coal transportation as well.” When compared to China and America, its manpower productivity is very low – an indicator of the lack of modernisation of the present facilities. Other Challenges Negligence, lack of integration and coordination of the available facilities are some of the challenges plaguing the prospects of rail freight. Inefficiencies in India’s logistics network has caused it to incur a loss of a whopping US$45 billion each year. These could, however, be redressed through augmentation of rolling stock; optimisation of present facility, like improving the speed of freight trains by enhancing the signaling, communication & multimodal transport. Proper implementation of plans and poor customer service are some of the crucial issues, which if addressed, can help Railways grab around 41 per cent of share in logistics.

A COMPLETE SOLUTION All the above challenges are too huge for the Railways to tackle alone. Nonetheless, Indian rail logistics has immense capability (e-Commerce sector, automobile sector, etc.), which is yet to be tapped. To exploit the rail shares in these sectors, a national integrated logistics policy (NILP) is required to ensure equal share of Railways in goods transportation. Double-stack containers are being implemented to overcome the cost issue & track availability, which were the biggest concerns for rail logistics. Hence, with the planning and beginning already done, a great future is there on the other side if we could accelerate our speed in the right direction.


Stuck En Route?

Over-sized cargo being stored at Over Dimensional Cargo (ODC) Image courtesy: Arshiya International FTWZ, Panvel


The market for over dimensional cargo, commonly known as project cargo, is fast expanding with the government’s focus on developing infrastructure. While project cargo movement is rising in industries like power, oil & gas and mining, companies across the manufacturing verticals are expanding their capacity and building new plants, thereby giving thrust to the project cargo movement. But a lot of homework has to be done by firms handling project cargo as it involves various criticalities. NISHI RATH

WHEN it comes to project cargo, transportation and logistics demands are a lot higher as they are unique for each situation. The movement of such goods requires collaborative partnership, attention to every minute detail and constant communication across the supply chain. Transporting project cargo requires special knowledge, know-how and expertise. With the growing demand for project cargo movement, logistics service providers dealing with container and bulk cargo have also entered this segment to cash in on the rising demand. In almost all the cases, project cargo movement involves multimodal transportation and calls for coordinated efforts between all the parties involved and operators of different modes of transportation. A lot of intricacies have to be considered and feasibility studies & route surveys have to be carried out prior to the actual movement of cargo. Inland movement of project cargo is the toughest part for any project cargo transporter. Depending on the size and weight, the transporter may have


to construct special bridges and bypass pathways to avoid disrupting regular traffic on the road. And while moving project cargo by inland waterways, many challenges and issues like construction of jetties, barge design and construction & draft issues, among others need to be addressed. The growing demand for this type of cargo also poses other challenges. With increasing volumes, the issue of quality of services comes into picture. Also, while handling larger volumes of project cargo, there are chances that things would be overlooked.

PROBLEMS FACED Project cargo generally consists of machineries, heavy-lifts, boilers, chemical filters, generators and storage tanks. From time to time, oil rigs are also moved. There may be instances when a site can be muddy or have a narrow or unsuitable entrance. Additionally, there may be an instance wherein the specialised equipment used to move job site machinery has low ground clearance and the load to be hauled is wide, high

or long. Thus, the entrance must be levelled & dry and big enough to move wide or long equipment in and out. Often, job sites are situated in rural areas where there are no proper communication facilities. This can create problems during loading. Apart from this, there are several other factors that might cause problems while dealing with project cargo. These would include: Vehicles Transportation for project cargo is not feasible using the standard range of vehicles, as the dimension and weight of the cargo is much higher than the normal load specifications. At times, due to non-availability of suitable vehicles/modes to carry the cargo, one is forced to use the existing flats and low loader or custom-built vehicles. This, in turn, can lead to accidents, time delays and might even affect freight costs. Roads and bridges Most of the project cargo movements are done on national or state highways, bridges and junctions from major ports in India. These roads or bridges,

including turnings, may not always facilitate transportation. Additionally, halting at various check posts or toll nakas also cause delays. Route survey Even though many companies carry out surveys, there is a need to conduct surveys more technically as it will help assess the probable barriers & difficulties and the way to resolve it before the transportation process actually commences. This is a one-time investment that can help avert a lot of problems during transportation. Non-availability of skilled drivers The presence of skilled labour helps in the movement of project cargo. Having skilled drivers who are well trained on vehicle features and mechanism, facilitates hassle-free delivery of project cargo.

SUCCESSFUL TRANSPORTATION Customs, regulations, taxes and duties vary from country to country, and so do the inspection requirements and documentation. Conducting local market research determines the financial implications of procuring particular components in different countries. Hence, a research conducted beforehand will not only save time, but will also ensure safe delivery of cargo. Moving project cargo on shared roads, at times, raises public safety and environmental issues. Even the slightest perception that communities will be impacted deserves attention. An open dialogue among all parties involved can help avoid these problems. On the other hand, transportation can sometimes dictate how a product is manufactured, i.e., whether it is delivered as one unit or in multiple parts and assembled on-site. In such a scenario, a prior transportation analysis by the project cargo buyer can help to a great extent. Keeping in mind the growing competition, knowledge of transit times and requirements will help one have an edge over competitors.

Things to know before getting on the job: Transporters should know the following major requirement of customers – could be pertaining to huge machinery, tanks, boilers, etc. – before they get on the job: • The product’s size, dimension and gross weight accurately • The consignor pick up and the consignee drop point • The distance, roadmaps in detail and be aware of the roads’ condition & width • How many states the vehicle will pass through and the vehicle permit validity • The ‘entry’ and ‘no entry’ timings en route - calculate transit time • The speed at which the vehicle can move without obstructing traffic • Caution signboard on either side and back with reflector • If there is one document or multiple invoices or bill of exchange (BOE) or bill of lading (BOL). Support each load with requisite documents • Intimate the traffic police of the concerned area and seek approval for movement in advance so as to avoid causing inconvenience to the public • The overhead railway bridges and their height to pass from beneath flyovers and ensure the turning disc radius of the vehicle is compatible with the road width • Have emergency kits in haulers • Check availability of suitable platform trucks, trailers to meet requirement • Double drivers with EMO cards • Have a basic 14-point check chart on compliance and compatibility of the vehicle being engaged for the job • Heavy movement operations require cautious loading and unloading operations with safety kits and PPE as applicable conforming to EHS norms. Inputs by Mahesh Krishnan, VP – Operations, Bhoruka Logistics

The transit requirement varies from road, rail and air to water & inland barge. Hence, a good research of the same can come as a great help while handling project cargo. Help can be taken from transportation specialists with in-country knowledge who can advise on length, width, height and weight restrictions that may necessitate using one mode of transportation over another.

CURRENT SCENARIO In India, the over dimensional cargo (ODC) market is poised to have good market potential thanks to the growing infrastructure development and power projects by the government. Although there is huge growth potential, we still need to have suitable transportation methodology/technology as compared to developed countries. Being a niche segment, the project cargo market is characterised by high profit margin for all stakeholders like

truck OEMs, trailer manufacturers, transporters, insurance companies and industry verticals. Further, there is a growing need for providing efficient and safe transportation.

THE BEST WAY OUT Any changes or delays in material sourcing plans or production and delivery can have unwanted consequences. At times, changing the source locations can increase lead time and transportation costs. So, the best way to handle project cargo is by conducting research beforehand. A lot of research and making sure that there is an open channel of communication between the transportation provider and customer is the safest way to handle project cargo. A qualified transportation professional should always survey the job site to verify accessibility and measurements.





FREE TRANSPORTATION With an aim to provide seamless integrated service under one umbrella for its customers in order to enable best in class service delivery towards end-to-end supply chain lifecycle management, Arshiya International has become a pioneer in handling customised and ‘unconventional’ goods. Thus, when approached by a client to transport the extremely fragile solar panels to Gujarat, Arshiya, using its combination of its state-of-the-art customisable infrastructure and expert personnel, managed to successfully create innovative solutions for the client, which not only provided safe storage, but also ensured damage-free transportation. INTEGRATED supply chain and logistics infrastructure solutions provider, Arshiya International, has multinational operations in the logistics and SCM space. The company is currently involved in the phased investment of approximately US$1.6 billion towards creating and pioneering logistics infrastructure within India.


The company is a combination of strategically integrated logistics verticals like free trade and warehousing zones (FTWZs), rail infrastructure, domestic distripark, logistics, SCM, transport & handling and IT. Seeking to leverage on Arshiya International’s unparalleled operational expertise & solution capability across the entire supply chain spectrum, a

client setting up a solar power project in Gujarat tied up with Arshiya International to handle their entire leg of supply chain starting from the port to the final destination. The client, who is importing solar panels for this project, is also using Arshiya’s FTWZ to benefit from the infrastructure, regulatory and operational environment.

for the client to ensure safe storage and damage-free transportation.



Flexible Racking Solution • The existing racking system was proactively customised using the expertise of Schaefer to accommodate pallets of 1.75 m height – higher than the standard dimension of the racking system • All the pallets, which were kept at Level 1 and above on the racks, were strapped as the cargo pallet was slightly wider than the Euro pallet. Innovative MHE Process • Given the fragile nature of the cargo, i.e. solar panels, the Arshiya team devised an innovative method of foam padding for MHEs (BOFLs’ & BORTs’)

Arshiya’s innovative operational expertise resulted in zero damage storage and transportation of solar panels. Additionally, the client also benefitted from Arshiya’s integrated value proposition. Arshiya’s FTWZ offers state-of-the-art infrastructure along with regulatory benefits. Its SCM holds the inventory on behalf of the client. In addition, its FTWZ performs value optimising services and Arshiya Transport & Handling apart from ensuring safe and timely delivery of cargo from the port to FTWZ as well as from the FTWZ to the final destination. This proves to be beneficial for the client as he is only dealing with one logistics service provider which translates into reducing coordination, having more control over inventory, reducing costs and improving efficiency. Commenting on the same, Ajay S Mittal, Group Chairman & MD, Arshiya International, avers, “This is one of our hallmark cases where we have demonstrated how operational excellence and innovation can result in huge savings for our clients. Companies from across sectors have been using our FTWZ for the stateof-the-art infrastructure and the conducive regulatory environment. With such innovations fuelled by our operational expertise, many clients today are outsourcing more and more value optimising services like packaging, labelling, kitting, blending, consolidation and quality control, to us. It is through such innovations that we have become and will continue to be an integral part of our client’s value chain.”

OUTBOUND Packing Initiatives • Each container was lined with cardboards of suitable dimensions to safeguard against the potential impact while in-transit • Twenty pallets were meticulously placed on each container and secured to each other using nylon ropes • The ropes were secured with hooks


while in-transit from Arshiya’s FTWZ to Gujarat.

This is one of our hallmark cases

where we have demonstrated how Solar panels are extremely operational excellence and innovation fragile and during can result in huge savings for our transportation, nearly five clients. per cent of the cargo gets Ajay S Mittal, Group Chairman & MD, Arshiya International damaged. This translates into huge losses for the and airbags/dunnage bags were client. In order to avert this situation, the placed to provide buffer against any clients were looking for an innovative impact and longitudinal movement. solution, which would minimise Two wooden planks were placed in-transit damage. between the container’s door and bags, to foolproof the stuffing. SOLUTION Tamperproof Initiatives Arshiya International, with a • All the containers were secured with combination of its state-of-the-art Arshiya bottle seals to safeguard customisable infrastructure and expert against any potential tampering personnel, created innovative solutions

Information sourced by Sumedha Mahorey



Taking the Tough Route Out Agility brings a new spirit of enterprise, flexibility and personal service to the delivery of logistics solutions for its customers. The service provider was faced with the challenge of successfully loading the cargo – 100 mt each unit of Cryogenic Tank with the total volume of 1,700 CBM – on the vessel OXL Lotus amid Thane cyclone. To tackle the adverse impact of inclement weather, particularly in respect of project cost and time frame, the company had used a specialised fleet such as hydraulic axles and a well-trained team to ensure that world-class safety procedures are embedded into the entire logistics chain. FROM roots in emerging markets, Agility brings efficiency to supply chains in some of the world’s most challenging environments, offering unmatched personal service, a global footprint and customised capabilities in developed countries and emerging economies. The case study on how it successfully loaded the cargo – 100 mt each unit of Cryogenic Tank with the total volume of 1,700 CBM – on the vessel OXL Lotus amid Thane cyclone proves how this logistics service provider thrives on challenges and consistently goes above and beyond for its customers.

CHALLENGE The important challenge to transport this cargo required pre-planning activities, risk assessments and ensure on-time project delivery. Thane cyclone formed during the loading of this cargo on truck in the factory was the biggest challenge faced. Commenting on the criticalities involved in the project, P Anand, Regional Manager – Projects, Agility Logistics, averred, “At Chennai Port, a storm warning flag signal Number 9 had been hoisted, which indicated ‘great danger’. This meant that the port would experience severe weather – a cyclone was expected to move keeping the port to the right of its track. All vessels from Chennai Port were evacuated and moved to the outer anchorage for safety. A control tower had been set up and all employees had been evacuated from the port. Our targeted vessel was anchored, due to the endangered situation & alerts given by the port officials.” Despite the chaos, the company


The important challenge to transport the cargo required pre-planning activities, risk assessments and ensure on-time project delivery.

needed to move the cargo, considering all the odd situations en route the port. Anand explains, “We applied all techniques to mitigate health/safety and environment risks involved in this transportation. Despite the cyclone threat, the Chennai project team acted as a forefront in the logistics operations and completed the inland movement successfully & safely as per customer’s requirement. The vessel under the agency of Everett loaded the cargo in 10 hours at Chennai Port.” The company also ensured that due cost-effective solutions already given to the vendor for transportation of the equipment to maximise commercial outcomes without exceeding its target price was realised.

SOLUTION The company had used a specialised fleet such as hydraulic axles and a welltrained team to ensure that world-class safety procedures are embedded into the entire logistics chain, thus greatly mitigating the adverse impact of inclement weather, particularly in respect of project cost and time frame. Anand elaborates, “With the influence of Road Transport Authority/local electricity board/highways department including local police coordination, our

cargo reached the port safely on New Year’s Eve. Adapting all precepts and local formalities, without begrudging the given situation, our team won over all obstacles & en route challenges, thus leading to an accident-free final delivery at both ends.”

BENEFITS The company was able to uphold their banner high in the market, thereby proving to the world that ‘Agility Project Logistics’ is a market leader in ODC/project-heavy lift movement both in India & abroad. Anand says, “More than achieving honours/certificates that measure our systems and applications, there was a total transformation in our team mindset, bearing the slogan ‘Standing Alone Spirit’ to adopt innovative methods. Without retreating despite the challenge, there were minds seeking to learn, experiment & achieve value creation along with the individual growth gained by the team’s success.” The project was successfully realised due to the wholehearted support of the Agility Chennai team including Sampath, Krupakaran & Suresh headed by P Anand. Information sourced by Sumedha Mahorey


Circumventing Unforeseen Supply Chain Risks Turning leaner and flexible has become the need of the hour for supply chains. While most supply chains will turn to technology to become leaner to emerge as real winners in the marketplace, supply chains have to become agile in order to keep pace with the evolving trends. This will not only enable businesses to become operationally responsive to changing conditions, but will also help them capitalise on new opportunities, drive greater efficiencies and reduce risk. LEADING software provider Progress Software Corporation predicts that faced with increasing pressures in 2012, supply chains will look to technology to enable greater flexibility and the ability to quickly understand and respond to changing circumstances. According to Henry Hicks, Industry VP – Supply Chain, Progress Software, “In 2012, supply chains will continue to drive cost out as the quest to become leaner will dominate strategy. This will only increase the risk exposure to unplanned events of all shapes and sizes. In order to not only survive, but achieve success in this chaotic environment, supply chains will need to gain real-time visibility, understand the impact of these events and finally have the capability to react within a short-time horizon.” “Organisations that are soon to recognise changes in the supply chain

and quick to implement a plan of action to circumvent the issue will be the real winners over the coming year,” Hicks adds.

PREDICTIONS FOR 2012 The software provider’s supply chain predictions for 2012 include: Long live planning Even with the sophisticated planning tools available




today, the best supply chain plans yield less than 50 per cent accuracy. While the advances in planning brought the industry some remarkable promises, it also proved how difficult it was to predict the future by simply relying on historical data. However, without going through the planning exercise, businesses and their supply chains cannot determine an end goal and path to get them there. So, planning is not dead, but organisations should use it for the purpose it serves – setting the end goals and determining the direction in which to head. Bidirectional elasticity a must For many years, the supply chain world has been ‘flat’ and materials are sourced from all corners of the world as organisations chase low-cost manufacturing. However, some sacrifice lower costs to be closer



Supply Chain Predictions For 2012, continued

to their customers and reduce time to market. For example, manufacturers moving plants from Asia to Mexico to speed the time from the production floor to the shelf in the North American market. Additionally, many of these ‘low-cost’ countries have themselves become the end client. To accommodate these changes, supply chains will have to demonstrate a level of bidirectional elasticity to address both the wide reach of production, as well as the growing mix of customers. Floods, earthquakes and wars force companies to rethink their supplier strategy, but at what cost? The Thai floods and tsunami in Japan have made organisations recognise the sensitivity and level of risk exposure supply chains have when reliant on a small number of vendors, especially those located in volatile environments. Organisations will attempt to avert risk by on-boarding new suppliers. However, this will be a challenge as relationships and business trust are not developed overnight. Predictive time horizons will shorten With leaner supply chains, being able to understand and react to changing circumstances quickly is vital. Organisations will try to add short window predictive analytics for real-time event processing. Business intelligence solutions promised the ability to take data, analyse it, understand correlations and provide the user with a deeper understanding of the cause & effect within the business. While all that is important, the speed at which it is done is crucial. Desperately seeking centralised command and control The ability to have a seamless view of what is happening across the entire supply chain network will determine the success of organisations, and, in 2012, supply chains will continue to


seek a centralised system of command and control. Although technology is evolving to make a single view of the supply chain possible, the challenge of disparate parts and siloed systems remains. Successful companies will build a ‘touchless’ supply chain Rather than actually touch the product, large brands will simply orchestrate all the moving parts that comprise their supply chain. Apple is a great example. The company manages all the moving parts of its supply chain without actually ‘touching’ the product at every stage. Companies will continue to gravitate towards this model, with some even outsourcing, the management of the supply chain itself. Logistics providers will evolve into information and management hubs As supply chain managers continue to feel the pressure of a leaner supply chain, they will rely on logistics firms to do more with the information






In 2012, supply chains will continue to drive cost out as the quest to become leaner will dominate strategy. Organisations that are soon to recognise changes in the supply chain and quick to implement a plan of action to circumvent the issue will be the real winners over the coming year.



on the brake that controls the velocity of free cash flows. Discrete manufacturers will tackle the service side of the supply chain Parties in the supply chain network will continue to clear out carrying costs and leverage service as a competitive advantage. More & more companies, especially high-technology manufacturers, are recognising the importance of better managing their services. Organisations will maximise the opportunity by managing inventory and human capital while orchestrating the service level agreements held with the client base. Smart companies will continue to push the knowledge they gain from this end of their supply chain all the way back to the beginning – and enable better forethought and planning. Businesses will be able to tackle the ‘C-A’ in ‘P-D-CA’ (Plan, Do, Check, Act) The success of enterprises and their partners across an extended supply

Henry Hicks, Industry VP – Supply Chain, Progress Software

they hold. Logistics providers will be seen as the perfect outsourcer for the supply chain, as they are able to see the movement of inventory at every stage of the supply chain. Finance will become increasingly involved in the supply chain With the uncertain economic climate, it is no surprise that the CFO’s office will become increasingly interested in the day-to-day activities of the supply chain function and interactions between these departments will intensify. Supply chains, at their core, are manipulating and managing inventory or better said – working capital. In many cases, they have their foot on the accelerator, and


chain will depend more on a manager’s ability to gain more visibility across their supply chain. In the iterative four-step ‘PDCA’ management process used in business for the control and continuous improvement of process and products, this enhanced visibility is only useful if managers can act instantly on events as they occur. The ability to tackle the ‘checking’ – both on the events themselves and the correlating impact these events have across the supply chain – and to act almost simultaneously on these events will become even more important in 2012. Courtesy: Progress Software


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Farmers are faced with a vicious poverty cycle. Low incomes lead to low risk taking ability which, in turn, leads to low investment and low productivity. By enabling information-based coordination, companies like ITC are reducing the costs incurred by farmers and are increasing the profitability of the entire supply chain. OVER 70 per cent of India’s 1.2 billion population is rural and lives in over 6,27,000 villages. Since agriculture accounts for about 18 per cent of the GDP, rural procurement supply chains hold the promise of unprecedented economic development and wealth creation. One of the successful innovations in the rural procurement supply chain is the introduction of computer kiosks. The largest and widely known case of such use of computers is the ITC e-Choupal implementation. There are about 6,500 successful kiosks serving about 40,000 villages. Other modes of information dissemination based on mobile phones also have the potential of impacting the rural supply chain in profitable ways. A key information dissemination step in the rural procurement supply chain is the dissemination of price information. The price of crops is based on the price at the commodities exchange. However, the price is negotiated between the farmer and the buying agent for the corporation or government mandi. With price information being dispersed among the different actors in the supply chain and because of the numerous tasks involved in getting the

price, transporting the crop, having the crop quality evaluated and sales completed, the rural procurement supply chain is coordination intensive. Furthermore, the business processes at the base of the pyramid (BOP) and rural procurement supply chains are different from conventional business processes in crucial ways. First, the rural procurement supply chain uses human activity or previous generation technology to substitute for the lack of infrastructure support. Second, the rural procurement supply chain depends on a shared use of resources instead of an individual use of critical resources such as the computers at the kiosk or the tractors. Subsequently, the rural procurement supply chain is replete with coordination and decision making problems. Any understanding of the potential for wealth creation in the rural procurement supply chain should begin with an understanding of such coordination and decision making problems. Such an analysis can yield insights into efficiencies in the rural procurement supply chain.

EFFICIENCIES IN THE SUPPLY CHAIN There are five distinct sets of activities in

the rural supply chain. These include the information dissemination and farmer’s decision making, trolley and inspector scheduling, auction mechanism for crop sale, task assignment and resource allocation and transfer of cash & goods. The rural procurement supply chain begins with the farmer getting the price of the crop. The farmer might get this price from the commodities exchange, through a mobile phone or from the village computer kiosk. The village kiosks are operated by the Sanchalak. Other mechanisms such as the Reuters Market Light send the price information directly to the mobile phones of the farmers. Once he has the price information, the farmer makes a decision on whether to transport the crop to the mandi or to a warehouse. He then transports the crop to the warehouse of his choice. At the warehouse, the crop is quality tested and the farmer sells it for the price he had determined before leaving his village. By utilising information technology and novel means of transmitting information, multinational corporations like ITC can improve coordination in the rural procurement supply chain.


Rural procurement supply chain, continued

Coordination in the rural procurement supply chain involves the management of dependencies between the tasks through mechanisms that enable the execution of tasks with optimal efficiency. Information-based coordination leads to the substitution of many manual dependencies with better coordination mechanisms. Information about price and demand are supplied to the farmer through IT-based information dissemination mechanisms. The farmer’s transportation of crops is also coordinated and scheduled at the mandi. Other coordination mechanisms such as ‘first come first serve’ or preset schedules can be arranged for increasing efficiencies in the delivery of crops. Efficiencies in the supply chain can be gained by identifying the dependencies and by developing novel mechanisms for coordination. For instance, the information search activity for getting the price has a flow dependency, which can be coordinated by broadcasting the price through a portal or through an information dissemination service. Similarly, the valuation activity involves negotiating and determining the price for the transaction, which can be coordinated through an auction Activity Search Sharing The Price Information Valuation Negotiation And Discovering A Purchase Price Logistics Coordinating Delivery Of Goods And Services Payment Ensuring The Settlement Of Invoices Authentication Authenticating parties and monitoring contract compliance Communications And Computing Communication And Computing Product Representation How Product Attributes Are Specified Legitimation Validating The Trading Agreement And Defining The Rules Influence Structures Enforcing Obligations And Penalties For Non-Compliance Dispute Resolution Resolving Disputes And Specifying Decision Rights


mechanism. The logistics involved in coordinating the transfer of goods requires a transportation resource such as a tractor, while the payment activity has a task dependency with the valuation activity. The online portal can be used to sequence the authentication activity and the usability of the website can be enhanced to manage product representation to list the crops and other information. The legitimation and influence structures have a prerequisite dependency that should be fulfilled before other activities in the supply chain can be executed. These dependencies can also be managed through an intermediary. The last activity in the rural supply chain is dispute resolution, which needs synchronisation with conflict resolution agencies and intermediaries.

information about warehouses and the prices they offer. The farmer can then decide whether to transport the crop. The farmer incurs significant costs in transporting the crop to the mandi that has the right price. So, it is an important decision. Moreover, having the price and location information is critical for making a well informed decision. Many times, farmers will have to decide among a set of mandis and the corporation-owned warehouse. Ideally, the farmer would decide on the warehouse with the highest price and nearest location. However, based on the costs of information gathering and the costs of transportation, farmers will attempt to optimise their decisions to yield maximum profitability. Such decision making also lowers the costs of storage & inventory holding for the farmers and reduces the bullwhip effects for the corporation.

IMPROVEMENTS IN DECISION-MAKING The farmer’s decision making is improved dramatically through information-based coordination. The farmer initially makes a decision on whether to get price and location information for warehouses. There is a cost (in terms of time and effort) associated with acquiring this

Dependency Flow

Coordination Mechanism Broadcast Through A Portal


Sequencing Through The Intermediary And Online Auction


Arranged Between Buyer And Seller Using Transportation Resource Arranged Through The Online Auction Mechanism Using Rules Sequencing or tracking through the online portal or intermediary

Task/subtask Prerequisite

Transfer/ Communication Usability

Managed Through Online Portal


Tracking Through Online Portal Or Intermediary


Tracking Through Online Portal Or Intermediary


Resolved Through A Online Conflict Resolution Agencies Or Intermediaries

Through Online Display

WEALTH CREATION Farmers are able to break out of the poverty trap by making more income and increasing their productivity. Such growth in villages is visible at the national level. India is on track to reduce its national poverty rate to 22 per cent and the rural population rate at the poverty line, which is 30 per cent, is set to improve dramatically. Such increased wealth in rural areas lead to increased demand for other consumer goods. Many times, the existing rural procurement supply chain also serves as a retail supply chain. Almost 50 companies use the e-Choupal network to sell products ranging from seeds and fertilisers to bicycles & insurance policies. Corporations such as ITC also maximise their profit through efficient supply chains, by purchasing crops directly from farmers and by guaranteeing the quality and supply of crops. Corporations also gain from selling additional consumer goods to the farmers. Vijay Dakshinamoorthy, Predictive Modeling Specialists E-mail:



S UCC Benchmarking E S S 3PLss’ 3PL Every 3PL organisation has set targets in the form of service level agreements to achieve. But if they seek to achieve these targets, they need to have a good understanding of the same. Therefore, key results area (KRA) setting and key performance indicator (KPI) measurement needs to be part of the organisations’ performance appraisal & management system. These will help organisations achieve their targets of meeting committed cost, service quality and delivery schedules. IT is necessary to know the ‘target’ before you aim. Without knowing what you are aiming for, all efforts will, most probably, be futile. It will be just like searching for a needle in a haystack. This general guideline applies to 3PL operations as well and is relevant to all the functions and at the every level within a 3PL set up.


support from other internal functions like HR, maintenance, finance & administration, etc. In a small 3PL set up, all these functions generally get bundled under operations. Thus, internally, operations will be the client to all service functions, each of which will have key results areas (KRAs) identified to it. The KRAs identified to the functions should directly or indirectly help operations in meeting the committed cost, quality & schedules, i.e., cost of operation (on which the price to the client is based), quality of services and schedules of deliverables. The process of analysing, if the KRAs were achieved, is done through a system of prescribing KPIs and then periodically measuring and interpreting the same. Thus, in a

For a 3PL, the target is set by the client in the form of service level agreements (SLAs). The client specifies the service standards and deliverables expected from the operations managed by the 3PL. Evolved SLAs may have provisions for incentives and penalties. Once the SLAs are agreed upon, the drill down exercise of finding the way up begins. If SLAs are the pinnacle, then the key SLAs (part of the performance indicators (KPIs) signed contract) are the steps leading to it. In such a scenario, a top-down approach will work well as KPI 1 KPI 2 KPI 3 the focus then remains on the KRAs client’s expectations. In a 3PL, Operations the operations function does the front ending with the client KPI 1 KPI 2 KPI 1 KPI 2 KPI 1 KPI 2 and is responsible for achieving KRAs KRAs KRAs HR Finance Admin. the SLAs. But for operations to perform successfully, it will need Figure 1: KRA-KPI leading to SLA in a 3PL model

nutshell, KRAs lead to KPIs and then KPIs to SLAs. The same is pictorially explained in Figure 1. Let us now look into how the system works through the following example with sample SLA, KPI, KRA and one support function of HR. • SLA of Client A: On time delivery to their outlet at 96 per cent • KPI to operations function to meet the above SLA: On time delivery at 98 per cent • KRA of operations function: Meeting SLAs of clients 100 per cent, every time • KPI for HR: Driver absenteeism at three per cent • KRA for HR: Providing adequate manpower resource to operations. The above example takes into consideration the timely availability of drivers as one of the key requirements for achieving the SLA of on time delivery. It also recognises the responsibility of providing drivers rests with HR function and sets a standard of three per cent driver absenteeism, beyond which it will hurt the operations.

CRITICALITY OF KPIs To the client However good a product may be, an efficient supply chain is a must to make


KPIs for 3PLs, continued

it a success. The degree of criticality of the supply chain varies with factors like product, market, customer, etc. There are examples of great products bombing at the marketplace because of a deficient supply chain. Every business recognises this and takes steps to build a strong supply chain. Outsourcing the function to a specialist 3PL is one of the steps. Outsourcing does not take away the responsibility of ensuring the expected performance of the supply chain. At the same time, it is important to minimise the direct day-to-day involvement, otherwise the purpose of outsourcing will get defeated. It is here where the relevance of KPIs comes in. The client defines and specifies the key performance expectations as a part of the contractual obligation with the 3PL service provider. The method of data collection, format and frequency of reporting KPIs and reviewing the same is also part of the arrangement. Generally, clients would like to see the performance dash board. Through the periodical review of performance indicators, clients come to know the exact health of the supply chain operations. Wherever necessary, deep diving may be resorted to and course correction plans chartered. To the 3PL • What is the basis by which a 3PL player can claim that his operations are in best shape or otherwise? • What is the performance trend? How to be proactive before the client calls up? • How to identify operational controls areas? • How will he highlight his performance to the client and claim incentive? • How will he justifiably reject the debit passed on by the client? • What is the way to identify weak spots in the operations and effectively address it? • How to identify performers in the system? • What marketing tool to use to


develop new businesses? • Could the Operations Head have access to one statement which gives him all critical information? There is only one answer to all the above questions – a well-structured KPI reporting and review system. This shows the criticality of KPIs to a 3PL. Thus, an evolved KPI system is a must for progressive 3PL service providers.

CRITERIA FOR SELECTING KPIs The following guidelines will help in identifying the KPIs: • It should be well defined. The objective and benefit of the data should be understood.

handled per dock per shift’ could be a KPI in a situation where dock is a bottleneck in the operations.

INCULCATING A KPI-DRIVEN APPROACH First on the list to inculcate a KPIdriven approach is that the 3PL organisation needs to be service/ customer-centric in its approach to business. The entire organisation, irrespective of the function or role, should be aware of how their action or inaction will impact the deliverables to the client. Once the commercials on the contract are agreed and finalised, the focus needs to be then fully on

Figure 2: 3PL KPI System - Implementation Process


1 - Identify the objective of operations in terms of internal service level standards/clients SLAs

Say the SLA for a grocery retailer for supplies from a DC is - ’on time in full’ (OTIF) rate of 95%

2 - Identify the key performance areas to be measured and the structure of the data presentation to align with the above.

Number of line items per order/ordering to delivery window/delivery v/s number of line items delivered and time of delivery

Meeting the service level standards as in 1, as the KRA of the team/function

3 - Identify the team/function responsible for the delivery of above KPAs

Here it could be the ‘Warehouse/Operations Manager ‘

Make the deliverables the KRA for the function/team

4 - Identify all other critical performance standards across functions which need to be achieved to support to fulfill 2 above

For the OTIF - Inventory management/ customer service/IT/transport/HR & warehouse management have measurable roles to play.

Part of the organisation’s performance appraisal management & reward system

5 - Specify data collection and reporting system for 2 & 4 - data source, frequency, format, computation, responsibility, reporting hierarchy, etc. 6 - Establish review mechanism Frequency, quorum, venue, presentation, standard agenda, mechanism to address deviations/concerns.

• It should be simple to compute and explain. It is important that the person responsible for the KPI should be able to understand and calculate the same. For e.g., in transportation, the ‘km per litre’ of fuel is one of the important KPIs. This comes under the control of the driver and he could very well work out the same without any support. • The KPI should be assigned to a function or a group or to a person. • The KPIs should be aligned to the end objective i.e. cost, service quality and schedule of deliverables or with the SLAs. Simple data like – number of docks in the warehouse, cannot be a KPI. ‘Number of vehicles

For example the quorum could be internal or with the client or multi levels follow on meetings.

the operations and SLAs. The spirit should be that ‘we need the customer more than they need us’. Everyone in the system should have access and knowledge of the KPIs trend – like we say, ‘information on their fingertips’. Visibility should be created on achievements through display, communications, rewards, etc. There should be excitement and encouragement. Review meetings should happen as planned and need to be conducted seriously. Commitment on action plans need to be fulfilled and frequent defaulters need to be pulled up. Performers need to be rewarded. H Shriram, MD, ImpelPro SCM Solutions




Challenges lie many in the logistics sector, but challenging the biggest hurdle is a job that requires precision planning, technical know-how and unquestionable faith in people handling it. As we scrutinise the above requirements for transportation of wind turbine components, one more challenge comes in the form of the Brobdingnagian size of blades, nacelle and tubular towers. Mastering the art of logistics for these components, the Suzlon Group, has fast emerged as a global leader in the wind energy sector through on-time delivery, installation and zero damages. Decoding its transportation USPs for the wind energy sector... SUMEDHA MAHOREY

OVER the last decade, Suzlon has emerged as one of the top players in the wind energy market globally. Along with the company’s growing market share, the need for better, efficient and timely logistics services have taken centre stage in its global logistics operations. Moving wind turbine components like nacelle assembly, hub assembly, nose cones, rotor blades and tubular towers from factory to site is not an easy task, especially because of the differing dimensions and weight of the turbines depending upon the product model. It involves handling sensitive components that weigh several tonnes and extend well over a hundred feet in length. But this

transportation and logistics challenge has been successfully taken up by the Suzlon Group. The company has outsourced shipping and logistics to a firm having expertise in handling and transportation of wind turbines. The firm works with Suzlon’s time, cost & quality requirements, and is backed with a well formulated service level agreement. To ensure global on-time delivery, the company has a subsidiary SE Shipping, perfectly suited for wind mill transportation, while a team of experts from the logistics function of Suzlon is responsible for inbound, surface transport and business auxiliary support required for logistics.

PLANNING FOR INCREASING GLOBAL DEMAND With Suzlon Group winning 151 MW in new orders worldwide, the planning that goes behind the transportation and logistics of the wind turbines needs to be done well in advance. Based on market inputs, the company formulates a business plan for an entire year. On the basis of the business model, the budget and plan for the Indian business, export and import shipments are decided. According to the company spokesperson, a route survey of the wind turbine installation site is conducted ahead of time, in order to clear the transportation routes, make the necessary modifications


Suzlon Group , continued

and discuss the port arrangements with the business units and logistics service providers. This ensures that the company meets the deadline for delivery and installation.

PERFECTIONISM IN TRANSPORTATION Transportation is one of the biggest challenges that a wind turbine manufacturer faces – nobody wants a massive wind turbine blade jammed on a highway. To ensure smooth transportation, the company takes utmost care. The company finalises the transportation rates after floating a request for quotations in the market. Necessary amendments to the business plan are also made based on the periodical strategy and operation planning inputs. All the changes are then incorporated in production and shipping plans released regularly by the planning department. Special purpose over dimension consignments (ODC) trailers are custom-made to transport the nacelle assembly, hub assembly, rotor blades, nose cones and tubular towers. The various modes of road transportation are as follows: • Standard transport vehicles are used to transport in-gauge cargo parts of the main turbines • Containerised trucks are used to transport sophisticated electrical and electronic components • Hydraulic (eight-axel) trailers are used to transport heavy-lift components of the turbine, i.e., nacelle • Mechanical trailers are used for the transportation of lower capacity turbine nacelles


Logistics best practices@Suzlon • Within the logistics department, the company has a quality measure to ensure product quality, root-cause analysis and continual improvements • A strategic zero point is finalised for site delivery to achieve operational efficiency in domestic projects transportation • GPS system • Financially sound, highly trained and experienced (with in country specialisation) logistics vendors are retained on a long-term basis • Efficient order execution cell to monitor ex-works to site delivery • A logistics expert team dedicated for route surveys, modification and clearance for project execution • Suzlon has a logistics engineering function within the department • High quality, experienced workforce: experts in documentation and communication, with extensive knowledge of equipment, local haulers and manufacturers • Time tested process document for logistics operations, which incorporates all the past experiences • Logistics manual for training operators and handling all components. • Telescopic trailers are used to transport rotor blades. The blades are loaded on the trailers with a specially designed fixture • Custom-made double-axel and single-axel trailers are used to transport tubular towers. To reduce the cost of transportation, transport racks for Suzlon products are designed to optimise the volume of cargo to be transported and thus facilitate cost-efficient reverse logistics. With the unusual length, shape and weight of wind energy components, logistics & transportation becomes complex. Suzlon successfully handles this. “We have an efficient and experienced team with a long-standing experience of over 15 years in overcoming logistical challenges over the most difficult terrain. We work to ensure highest standards of quality and safety,” avers

the company’s spokesperson. The sequential processes that are followed in Suzlon’s logistics processes include vendor selection and logistics capacity finalised on the basis of the business plan; region-wise vehicle allotment & dispatch after the vehicle has been accepted by the plant quality assurance department; storage arrangements and end route site/port; clearing forwarding for exports & imports; loading and unloading arrangements at plants, storage, sites, ports; Intra-port transportation & delivery under hook and delivering cargo to site & securing acknowledgment. For smooth reverse logistics, the jigs & fixtures are designed for reuse and recycle. The recyclables are transported efficiently as they are loaded onto vehicles on their return trips from sites.

payment realisation is checked and bank certificate of export is prepared and certified. These processes are completed in time to ensure reduced time of delivery. The company spokesperson asserts, “With the expertise of FT, the logistics team and a dedicated shipping line, Suzlon has been able to deliver products to the installation sites on time, regardless of geographical location. We have a dedicated wind Additionally, to ensure zero damage & volume optimisation, continuous improvements are taking place in the packaging process as well. A quality handoff punch list has been implemented as a precautionary measure to hold the concerned agency accountable for damages (if any). There is a logistics engineering team within the logistics department, in addition to manufacturing engineering, for driving the innovation & improvement process and to take CAPA.

COORDINATION: KEY TO SMOOTH TRANSPORTATION Suzlon exports turbine components to its subsidiary, REpower Systems SE. For this, extensive coordination, communication and scheduling are required. According to the company spokesperson, “Successful execution of export orders requires effective coordination with logistics vendors, port authorities, crane operators, vessel owners, barge operators, clearing & forwarding agents, customs and other tax authorities. At Suzlon, all service providers are aligned in advance to the business plan, for execution of every stage. Based on the vessel ETA received at regular intervals, the necessary follow up on the products is conducted. The pre-shipment documentation is completed alongside production and after custom clearance, the parts are loaded onto the vehicles (which have already undergone quality checks).” Once out of the factory, logistics support services are responsible for

Custom-made double-axel and single-axel trailers are used to transport tubular towers.

the cargo – wind turbine components – from plant to port/warehouse. The company’s manufacturing plant in India is located in a region wellconnected by road, rail, sea and air, which ensures smooth transportation. Once the cargo reaches the port/ warehouse, the crane operators and cargo cleaning team take charge and delivery under hook is completed. The handoff punch list is signed by the concerned service provider once the cargo is loaded and secure. Advance cargo shipment forms are filled for the shipping line and the consignee abroad. The bill of lading (BOL) draft is approved by Suzlon as per the shipping instruction and the original BOL is released from the shipping line. The certificate of origin is obtained, document requirements as per the orders and post shipment documentation is prepared and the NND is forwarded to the consignee. The original documents are negotiated through banks, statutory compliances are made to various authorities;

turbine-specific (end-to-end) transport fleet. Excellent handling of equipment, ocean going vessel and talented EXIM and operation teams to deliver the turbines anywhere in the world, in a cost effective and timely manner.”

WINNING OVER THE CHALLENGE Years of experience in hand, a wellqualified logistics team and planning ahead of time, have ensured that Suzlon’s wind turbine components reach the site safely and on time. The challenges involved in the transportation of huge wind turbine components seem to diminish when one takes a look at Suzlon’s smooth logistics operations. With the wind energy sector gaining strength year after year, the logistics operations supporting Suzlon’s manufacturing will become more and more complex, but even then, the necessary factors of on-time delivery, zero damage, safety and security will be ensured.



Creating a Benchmark for

Impeccable Cargo Handling

Known for impeccable cargo handling, Associated Container Terminals (ACTL) inland container depot has been servicing customers in North India. With a capacity to handle 12,000 TEUs monthly and deploying best in class technologies and equipment, ACTL has been making a mark in the logistics & warehousing space. A visit to this 25-acre facility offers a fresh perspective on the ideal container freight stations… ARINDAM GHOSH

POISED to be one of the perfect locations to set up base, Faridabad has been luring various manufacturing companies lately. Part of the credit goes to its strategic location – the district shares its boundaries with the National Capital Region and Union Territory of Delhi in the north, Gurgaon district in the west and Uttar Pradesh in the east and south. Catering to almost hundreds of large-scale companies like Lafarge, Shova, Imperial Auto, JCB, Escorts, Yamaha and the hub of 25,000 small-scale industries, Faridabad has become an industrial hotspot in India. In such a scenario, there is no doubt that the movers & shakers of the industry – the logistics fraternity – would want to capitalise on the big opportunities.


The moment we entered Faridabad, the sheer opulence of manufacturing facilities as well as the surrounding container freight stations & warehouses enthralled us. The city, coming under the purview of the Delhi-Mumbai Industrial Corridor, offers nothing less than unlimited business for companies. With a strong motive and desire to be a part of the India growth story, Associated Container Terminals (ACTL) had set up its inland container depot (ICD) in Faridabad. For starters, before CONCOR was formed by the government, ACTL Group was appointed as the turnkey handling contractor for Indian Railways’ first container terminal at Pragati Maidan, New Delhi. This was a landmark because this project became

the launching pad for containerisation for the entire North India. The strategic location offers the company immense possibilities for transporting goods from one place to another. Commenting on the time taken for the delivery of cargo from the facility in Faridabad to Nhava Sheva Port, Hitendra Joshi, Director, ACTL, says, “Customs clearance in ACTL is said to be the fastest. If the cargo comes in the morning, we can very well stuff the container after clearance from the customs on the same day. The transit time from the facility to Nhava Sheva is about 36 hours, thus making it less than two days. This is considered the shortest time of delivery to the port.” Highlighting on the initiatives taken by ACTL to ensure faster cargo movement at the facility, Hitendra

informs, “We have heavily invested in software and equipment. We always have a backup for all our operations to ensure that there is no downtime or least possible time is consumed while transferring the operations to another machine, especially when a machine breaks down during any operation. We also have our own fleet of trailers, forklifts, reach stackers, cranes, etc. Further, we offer customised and single window services to customers at controlled costs, which, in turn, ensures faster movement of clearances from our facility in Faridabad.” Along with equipping the facility with the best of material handling technologies, ACTL has allotted separate spaces to customers to park their cargo. Each of the parking areas has a separate carting & stuffing bay, which facilitates loading and unloading of cargo. Additionally, the dedicated & trained staff at various levels ensure that the cargo is handled with utmost care and stacked in the best possible manner – with dedicated timelines for each operation. However, Bharat Joshi, Director – Business Development, ACTL, points out, “As is the case in most businesses, including ICDs, one major challenge is dealing with government agencies. If this is streamlined or if there is one agency or a single window clearance, it will prove to be a huge boon.” “Nonetheless,” he adds, “The government is playing an important role in improving the public infrastructure.” “ACTL is known for impeccable cargo handling. We are fully equipped and continue to invest in the best possible technologies to ensure that there is no damage to the cargo,” Rahul avers.

CONTINUOUS TECHNOLOGICAL ADVANCEMENTS The company constantly invests in the continuous development of terminal infrastructure and its facility

in Faridabad works closely with business partners to provide quality services at all times. The customs has successfully launched software, ICES 1.5 at the facility, which ensures online transmission of shipping bills. The major advantages of online transmission of shipping bills include faster processing, no physical presence required and no waiting queues. Customs and Excise have also implemented the risk management system (RMS) at the facility, which allows the clearance of selected consignments within minutes on the basis of importers’ self-assessment, thereby requiring no examination. The ACTL ICD in Faridabad is the first customs location in India where the service has been introduced. “The fact that both the systems were launched here shows that customs has confidence in our facility to maintain and as well as execute the systems very well,” Hitendra says. ”In addition to these systems, we have our own software, which is linked to the customs systems. Also, we have track & trace and IT systems in place, which offers our customers customised reports,” Hitendra adds. The facility also has motion sensors and intrusion alarms, which can detect any small movement and make workers aware of the same.

KEY USPs OF ACTL ICD • The facility is equipped to provide all the solutions related to easier and smoother facilitation of export-import to shipping & forwarding containers and customs clearances along with highly specialised transport services to it customers. • ACTL ICD is the closest private ICD to Delhi and is located close to Gurgaon and Noida. Further, Faridabad is an upcoming industrial belt. • The transit time for cargos to reach the Nhava Sheva Port is about 36 hours, which makes it one of the fastest. • The facility has an impeccable cargo handling facility. There is an active container repair team, which can access the damage and takes the necessary actions. • ACTL ICD’s facility in Faridabad is C-TPAT compliant, which ensures high levels of safety and security of cargo.

our security systems so that we can make more improvements in our facility here,” Hitendra says. Elaborating further, Hitendra states, “We maintain internal key performance indicators (KPIs), which help us audit our own systems and performance levels. These include factors like the time taken to place a The warehouse container from the time taken is constructed in to offload once it is placed in such a way that the carting bay.” it utilises maximum Such practices help the natural light company maintain and during the day. improve their security systems. Bharat explains, “Further, in ensuring the safety of cargos for our customers, we not ENHANCING CARGO SAFETY only follow our systems and the legal Given the fact that a major chunk of mandate, but go much beyond that. cargo is US bound, the ACTL ICD We also comply with certain guidelines facility in Faridabad is Customsof our customers. Many of them have Trade Partnership Against Terrorism very stringent requirements. We (C-TPAT) compliant. This is follow them not only to ensure greater mandatory for US bound cargo. “We customer satisfaction, but because it also have external agencies who check


Associated Container Terminals, continued

also helps raise our safety and security bars.” The company also sometimes invites customers to visit its facility to audit their cargo. Meanwhile, in a step towards further improving service standards at ACTL, the facility’s premises are always monitored by CCTV cameras.

ACTL’s MAJOR PROJECTS • Nhava Sheva Port construction project for Mitsui & Co, lead Japanese consortium • Farakka Power Project on behalf of Italy’s Ansaldo • Anpara Power Project of Mitsui & Co. lead consortium of 17 Japanese companies • Gandhar Power Project for Marubeni Corporation • National Fertilisers Corporation’s captive power plant at Panipat and Bhatinda in North India • IFFCO heavy-duty movement for Phulpur Fertiliser Project.

LOCATION ADVANTAGE The company’s Faridabad facility is conveniently located around 25 km from ICD Tughlakabad. It is also strategically located on the Mumbai-Delhi Highway 2 and is adjacent to the Mumbai-Delhi Main Rail Line. With respect to connectivity with Gurgaon and Noida, Hitendra says, “We are right in the middle of the entire catchment area. The ACTL ICD facility is the closest to Delhi. We are equidistant from Gurgaon & Noida.” With regard to accessibility to Gurgaon and with the Kundli Manesar Palwal (KMP) Highway, there is direct access to Manesar, Kundli and Panipat. Moreover, the Taj Expressway provides accessibility to Greater Noida. More peripheral highways and roads are coming up in the nearby industrial areas. Commenting on the prospects that DMIC will offer, Bharat elaborates, “DMIC, being in close proximity, would push towards the creation of new economic centres on

of awareness and importance of going green, opting for energyefficient equipment has become the need of the hour. Discussing the green initiatives taken in the facility, Hitendra comments, “We have used energy-efficient lighting in the entire facility. The entire building, including the warehouse and the administrative block, is constructed in such a way that it utilises maximum natural light during the day. Additionally, all our equipment go through strong maintenance programmes so that they ensure lesser amount of emissions. Further, we are constantly trying to find new energy-efficient technologies that can be implemented in our facility.”

A NORTHERN INDIA LOGISTICS CORRIDOR In some ways, the ACTL ICD facility in Faridabad can be looked at as an ideal platform for facilitating import and export of cargos. Besides, the

PROMOTING HEALTHY WORKING ENVIRONMENT The company frequently hosts various training programmes to keep its staff motivated and ensures that they are abreast with the latest technologies. “We conduct regular fire safety and first aid programmes. These programmes are not only conducted by us, but also by external consultants,” Hitendra explains. Further, the company has given its staff standardised boots for safety and has provided them with reflective jackets, which shine during the day as well as during the night. Besides this, there are areas demarcated on the shop floor wherein workers are allowed to enter only after wearing protective gear like helmets and gloves. Additionally, workers are also provided with protective eye gear. With such systems in place, the company has tried to ensure maximum safety of workers in the facility.


the entire stretch from north to west. This will generate new demand as well as new opportunities along with the setting up of infrastructure to tackle the same in a structured manner. We are very optimistic about it.” The project would give a strong push to the level of exports and imports in the country.

GREEN INITIATIVES Given the rising levels

company has all the state-of-the-art technologies in place. After visiting this facility, we are sure that developing such facilities would play an important role in strengthening the growth of the logistics & supply chain infrastructure in India.


Generating a Reliable READING SOLUTION Advancements in illumination techniques and machine-vision algorithms have permitted the development of robust and reliable reading solutions. The first step in ensuring high read rates is to make sure that the marking process puts down a good code. The recently approved Association for Automatic Identification and Mobility (AIM) Direct Part Mark (DPM) Quality Guideline DPM-1-2006 is intended to handle a variety of marking techniques and part materials used in DPM applications. CONVENTIONAL barcodes have gained wide acceptance in applications ranging from checkout and inventory control in retail sales to tracking printed circuit board serial numbers in electronics manufacturing. To increase the character content and store the information in smaller spaces, companies have developed twodimensional (2D) alternatives. One of these, called Data Matrix, adopted as a standard, places square or round cells in a rectangular pattern. Its borders consist of two adjacent solid sides (the ‘L’) with the opposite sides made up of equally spaced dots. This symbology allows users to store information such as manufacturer, part number, lot number and serial number on any component, subassembly or finished good. For example, up to 50 characters can be stored in a 3mm square. Using such a code successfully requires reading it at rates that meet or exceed what companies have achieved with barcode technology. Guaranteeing that, in turn, means establishing a reliable standard procedure to verify the code’s quality. Initial attempts to create such a standard assumed that 2D codes, like their 1D barcode predecessors, would be printed in black

ink on white labels. Manufacturers, however, had other ideas. Labels can become defaced or fall off. So, companies began applying the code directly to the product being identified. Marking parts by applying the codes using methods such as ‘dot peen’ or ‘laser etching’ often produces codes with low contrast, poor cell position or inconsistent cell size. In addition, the surface being marked can be matted, cast or highly reflective and is seldom as clean & uniform as a white label. Reading such marks has been an enormous challenge until recently.

MARKING TECHNIQUES Manufacturers can mark parts with lasers, as well as by dot-peening, electrochemical etching and inkjet printing. Each technique addresses certain applications, depending on part life expectancy, material composition, likely environmental wear & tear and production volume. Surface texture also influences the choice, as does the amount of data that the mark needs to contain, the available space for printing and the mark’s location. Dot-peening With dot-peening, a carbide or diamond-tipped stylus pneumatically

or electromechanically strikes the material surface. Some situations may require preparing the surface before marking to make the result more legible. A reader adjusts lighting angles to enhance the contrast between the indentations forming the symbol and the part surface. The method’s success depends on assuring adequate dot size and shape by following prescribed maintenance procedures on the marker and monitoring the stylus tip for excessive wear. The automotive and aerospace industries tend to use this approach. Laser marking In laser marking, the laser heats tiny points on the part’s surface, causing them to melt, vaporise or otherwise, change to leave the mark. This technique can produce either round or square matrix elements. For dense information content, most users prefer squares. Success depends on the interaction between the laser and the part’s surface material. Laser marking offers high-speed, consistency and high precision, an ideal combination for the semiconductor, electronics & medical device industries. Electrochemical etching Electrochemical etching produces marks


2D data matrix codes, continued

by oxidising surface metal through a stencil. The marker sandwiches a stencil between the part surface and a pad soaked with electrolyte. A low-voltage current does the rest. Electrochemical etching works well with round surfaces and stress-sensitive parts; including jet engine, automobile and medical device components. Inkjet Inkjet printers for Direct Part Mark (DPM) work the same way as familiar PC printers do. They precisely propel ink droplets to the part surface. The fluid of the ink evaporates, leaving the marks behind. Inkjet marking may require preparing the part’s surface in advance so that the mark will not degrade over time. Its advantages include fast marking for moving parts and very good contrast. In all cases, manufacturers should put a clear zone around the mark whenever possible, so that no features, part edges, noise or other interference comes in contact with the code. The range of DPM techniques means that the appearance of the marks can vary dramatically from one situation to the next. In addition to the selected marking method, the parts come in different colours or shapes and can be made from different materials. Surfaces include smooth & shiny, furrowed, striped, streaked or coarse granular. Any verification method must provide reliable and consistent results under all conditions.

STANDARD VERIFICATION METRICS The following metrics and methods comprise the Automatic Identification and Mobility (AIM) DPM standard for assessing a mark’s overall quality: • Decodability: This pass/fail metric uses a reference decoding algorithm that the AIM DPM standard has improved to address and decode marks that have disconnected finder patterns. The reference decode algorithm is responsible for establishing the grid-centre points required for verification.


• Cell Contrast (CC): The name changed from symbol contrast in 15415 to reflect significant differences in what it measures. Instead of determining differences between the brightest and darkest values – which are highly variable – CC measures the difference between their means. The ability to distinguish between a black and a white cell depends on the closeness of the two distributions in the histogram. • Cell Modulation (CM): As noted above, a well-marked code requires a tight distribution for both light and dark values. If the standard deviation of each peak increases, some centre points will approach the threshold and may even cross over. Cell modulation analyses the grid-centre points within the data region to determine the proximity of the grayscale value to the global threshold after considering the amount of error correction available in the code. Typical problems that lead to poor modulation include print growth and poor dot position. • Fixed Pattern Damage (FPD): This metric resembles cell modulation, but instead of looking at the data region itself, it analyses the finder ‘L’ and clocking patterns as well as the quiet zone around the code. The first step in reading a code is finding it. Problems with the finder pattern or the quiet zone will reduce the fixed-pattern damage score. • Unused Error Correction (UEC): Data Matrix incorporates Reed/ Solomon error correction. Every grid-centre point should fall on the correct side of the global threshold. If so, the binarized image will look like a perfect black and white representation of the code. It is not uncommon for some centre points to fall on the wrong side. Any such bit is considered a bit error that requires processing through the Reed/Solomon algorithm. The

• •

amount of error correction needed increases with the number of bit errors. A perfect mark that requires no error correction would achieve a UEC score of 100 per cent. The more error correction, the lower the UEC score. A code with a score of 0 would not be readable with one additional bit error. Axial Non-Uniformity (ANU): This describes the modules’ squareness. Minimum Reflectance (MR): The NIST-traceable card that is used to calibrate the system creates a calibrated system reflectance value. The image brightness is adjusted on a new part, after which this calibrated value is compared with the reflectance of that part. Parts that are less reflective than the NIST standard card will need more light energy for the camera to achieve the appropriate image brightness. MR is the ratio of the parts reflectance to the calibrated reflectance. Every part must provide at least some minimum level of reflectance. Grid Non-Uniformity (GNU): This qualifies the module placement by comparing to a nominal evenly spaced grid. Final Grade: Like ISO/IEC 15415, the code’s final grade is the lowest of the individual metrics. Because the grading system uses letter grades, users often feel compelled to achieve the best possible grade. In this case, however, grades of D or better denote perfectly readable codes. In fact, most readers on the market today can reliably read codes graded F. Companies that demand grades of, say, B or better are incurring very high additional costs with little benefit. When using the AIM DPM guideline, we recommend passing marks that score C or better and pass but investigate any code that gets a D.

Didier Lacrorix, Sr VP – Global Marketing & Sales, Cognex Email:


CHUGGING ALONG THE PATH OF SUCCESS Recently, Railways Minister Dinesh Trivedi proposed the establishment of an independent body to take decisions on critical issues such as rail fares and freight rates. The proposal is a welcome step for the Indian railway sector. If implemented in a transparent manner, the move will give the Indian railways a new outlook and a fresh approach towards tackling any issue. But more importantly, it will enhance the ability to make decisions on important subjects, which would be free from any political influences. ARINDAM GHOSH

RAILWAY Minister Dinesh Trivedi recently announced a proposal for establishing an independent regulatory body – a move which reflects the focus of the minister towards bringing in a new model of operations that would not only help generate higher revenue volumes for the Railways, but would also demarcate political affairs from that of the Railways. Speaking at an event, Trivedi says, “The time has come to de-politicise Indian Railways and modernise the system, which has become obsolete in today’s time.” He adds that the Railway Board may be reshaped by bringing in members in charge of customer service, freight, etc.

FACTORS PLAGUING INDIAN RAILWAYS Indian Railways is one of the largest railways network in the world carrying

about 22 million passengers every day and transporting around 923 million tonne of freight a year. A combination of ‘populist’ measures, the inability to create newer sources of revenue generation, the ever-rising fuel prices, the cost of electricity and other input costs have mounted huge financial pressure on the Indian Railways. The net revenue surplus of the Railways has declined from `13,431 crore in 2007-08 to `75 lakh in 2009-10. In one of the prescribed steps towards improving the Indian Railways’ financial health, the Planning Commission along with Parliamentary Panel on Railways recommended that the ministry rationalise the rail fares, which have remained unchanged for nearly a decade despite the everincreasing costs. However, driven by

the term ‘populism’, the concerned authorities in the Indian Railways have been reluctant to make even a minor increase in fares. In terms of freight, the Indian Railways has posted a growth of 9.7 per cent. They had generated `55,382.80 crore of revenue earnings from commodity-wise freight traffic during April-January 2012 as compared to `50,487.91 crore during the corresponding period last year. However, over a period of time, rail continues to face strong competition from road and air transportation.

INDEPENDENT BODY REQUIRED As far as the passenger fare structure is concerned, there has been a downward revision of passenger fare since 200203. Further, input costs and passenger fares have been completely independent


Independent regulatory body for Railways, continued

of each other. As a result of this, the level of cross subsidisation has also increased dramatically. In 2009-10, the total losses in passenger services amounted close to `19,000 crore from `6,159.41 crore recorded in 2004-05. In view of the steady rise in the losses incurred in passenger services, the percentage of cross subsidisation for passenger services by freight earnings has gone up from 20 per cent in 200405 to 32 per cent in 2009-10. “Unless the trend is arrested by rationally linking passenger fare to input costs, the Railways will be out priced in the freight market sooner than later,” opines the Planning Commission. Sajal Mittra, CEO, Arshiya Rail Infrastructure, however, believes, “If implemented in the right spirit, this proposal will surely have a positive impact on the rail sector. However, what needs to be ensured is that officials in the proposed regulatory authority are not people from the rail sector, but from varied sectors such as telecom, shipping, airlines, etc. This will help create a fresh outlook towards the rail sector and its issues. Further, as officials from these sectors would have witnessed their fare share of privatisation and regulations, the experience will surely help in formulating unbiased and objective-driven policies.”

NEED TO WIDEN AMBIT OF SCOPE Mittra is of the view that although the minister’s proposal is a bit late, the move is surely a positive step forward. “We have been propagating the need for an independent rail authority ever since various issues cropped up in the sector post privatisation. Most of these issues are a result of the multiple and conflicting roles of the Indian Railways such as that of an operator, a licensor, a competitor and a policy maker,” Mittra commented. As the Indian Railways is driven by a social cause to provide transportation facilities at an affordable cost to all, especially to the economically weaker sections of society in the country, it


REVIEW OF 11TH PLAN PERFORMANCE FREIGHT BUSINESS Period Loading (MT) Growth (%) NTKM (billion) Growth (%) Original Target for Terminal 1,100 8.6 702 7.8 (CAGR) Year 2011-12 Mid Term Review Target for 1,020 7 674 7 (CAGR) Terminal Year 2011-12 Performance in 2007-08 794.21 8.98 511.8 7.7 (YoY) Performance in 2008-09 833.31 4.92 538.23 5.16 (YoY) Performance in 2009-10 887.99 6.56 584.76 8.65 (YoY) Performance in 2010-11 921.5 3.77 605.99 3.63 (YoY) Target for 2011-12* 993 7.76 658.54 8.67 (YoY) CAGR for XI Plan Period 5.75 6.51 *Loading of 970 mT is expected in 2011-12 Source: Planning Commission

cannot function fully on commercial interests. Moreover, road and aviation are giving rail tough competition in the freight as well as passenger segments due to their competitive pricing policy. Given such a scenario, the Planning Commission along with the Finance Ministry has supported the formation of an independent tariff regulatory body. In one of the recommendations made to the Railways towards improving its performance and tightening productivity losses, the Finance Ministry proposed an authority which would be working independently for tariff fixation. Mittra feels that the proposed authority should be made more powerful and its ambit should not be restricted to a few areas. “We firmly believe that the scope of the independent regulatory authority should not only be limited to fares & freight, but also to various policies, especially privatisation initiatives, to safeguard the interest of consumers & investors and uphold positive competition in the space,” he elaborates.

THE WAY FORWARD Driven by the robust growth and expansion of the Indian manufacturing sector, the market for the logistics industry is one of the fastest growing markets in India. The logistics industry in India is expected to cross over $200 billion by 2020 from the existing figure of $110 billion – a factor that offers the Railways ample growth opportunities.

It terms of passenger’s fares, Indian Railways need to design a policy wherein it is able to meet its social objectives as well as link the fares with the input cost. With respect to the freight rates, Indian Railways has, so far, been following the Dynamic Pricing Policy announced in the Railway Budget 200607. However now, it needs to pursue the same more aggressively. Earlier in October 2011, Railways had announced a six per cent hike on its freight charges for all commodities to meet the growing financial burden that the body is facing due to rising operating costs. Under the Dynamic Pricing Policy, tariff measures are taken in response to the prevailing market conditions. Any volatility in international pricing will have an impact on the price structure of the freight. Highlighting the importance of participation from the private sector will also be crucial in the direction of strengthening the Railways to aggressively capture more market share in logistics. “It would need to re-instill this faith by introducing investmentfriendlier policies; maintain consistency with the existing policies; treat private players as partners and not competitors; and put in place a regulatory body that overlooks aspects related to private investments, redresses grievances, policy matters related to privatisation, over and above freight and haulage rates,” concludes Mittra.


S top Preaching S tart Practicing Gone are the days when going green was just a business imperative. Today, it is the mandate not only from the government, but also from the consumers to deliver products in the most efficient manner. Taking a cue from this thought, many 3PLs have started practicing green initiatives that not only offer the biggest bang for the buck, but also ensure sustainable paradigms. PRERNA SHARMA

INDIAN logistics & supply chain infrastructure in India has been slowly & steadily keeping up with the major developments happening abroad. First, it was green awareness that informed and educated companies on the impact of going green. And now, it is the actual implementation on which the entire 3PL market is putting in efforts to reap sustainable benefits going forward.

EVALUATING IMPACT OF SUPPLY CHAIN ON ENVIRONMENT Our world is changing. Companies are increasingly evaluating the environmental impacts of their supply chains and scrutinising raw materials used in production as a part of their commitment to protect and preserve the environment. Efforts are being made by the industry, government and businesses to protect and preserve valuable natural resources by looking for ecological supply chain best practices. Consumers are becoming more conscious and the young generation, in particular, is very much ‘clued-up’ on environmental sustainable options in their decision making process.

GOGREEN SERVICE One such company is Blue Dart & DHL who have started a novel ‘go green carbon neutral service’ for Indian customers. Going by the wide acceptance in the global market, the company recently launched the service in India. Powered by Blue Dart in India, the GOGREEN service aims at allowing customers to neutralise their carbon footprint by paying a small premium over and above their shipping rates. The premium will be calculated on per document (DP) or per kg (Apex, SFC) and the distance to be travelled. It will be available on both domestic and international shipments. Carbon emissions from customer shipments will be offset by reinvesting the premium paid in environmental protection projects verified by Geneva-based SGS (Societe Generale de Surveillance), a United Nations independent auditor. These include Blue Dart’s three CER standard certified climate protection projects – a hydro-electric plant for the creation of renewable energy in Brazil, wind farms for the creation of clean & sustainable electricity in China and biomass power plant for

the generation of electric energy in India. A certificate verified by SGS, mentioning the total amount of carbon dioxide offset per customer, will be issued to the customer annually. Commenting on the service offering announcement, Malcolm Monteiro, SVP & Area Director, DHL Express, South Asia, said, “As a socially responsible organisation, we firmly believe in striking the right balance between economic benefits and environmental responsibility. This new GOGREEN Carbon Neutral Service will allow customers to be our co-stakeholders in ensuring a cleaner, safer environment and do their bit towards ensuring a carbon neutral shipment. Since the launch of the environment protection programme in 2008, we have seen a lot of interest evinced by customers who already have sustainability on their agenda. Through this roll-out in India, we will enable customers to become responsible social citizens.” Dr Keith Ulrich, VP, DHL Solutions & Innovations and Head of Research & Innovation Management, added, “Transportation and logistics industries are seen as key contributors to global greenhouse gas (GHG)


Green initiatives by 3PLs, continued

emissions. As a globally operating transport and logistics provider, we therefore strive for innovative solutions for today’s challenges. This includes delivery concepts for mega cities, clean transport and environment-friendly services alike.”

CARBON FOOTPRINT CALCULATOR By 2020, Boots wants to reduce the carbon emissions from their business operations by 30 per cent. To achieve this target, Boots had to identify the current level of carbon emissions from their supply chain. To equip the company achieve the set goal, Maersk Logistics used their fourstep methodology to review Boots’ supply chain. The first step quantified Boots’ carbon footprint from ocean transport, aviation, trucking, rail, barge, port operations and warehousing. After defining the main drivers of carbon emissions, simulations of alternative supply chain set-ups were made. Boots and Maersk Logistics then evaluated the carbon reduction possibilities, based on strategic fit, impact on carbon dioxide emissions, supply chain costs and ease of implementation. Boots decided to implement the following initiatives: • Reduce percentage of cargo shipped by air • Consolidate cargo to increase container utilisation • Improve container split (converted from 20’ to 40’ containers). The study findings helped Boots understand the drivers of their carbon emissions and provided alternatives to reduce their carbon footprint and supply chain costs. By using the new ‘Maersk Carbon Footprint Calculator’, Maersk Logistics was then able to document the effects of these initiatives.

CARBON FOOTPRINT REPORT Aramex has recently come up with its first carbon footprint report. The report identified key areas where Aramex


has been successful in reducing its emissions, including the reduction of fuel consumption by 24 per cent since 2006 and saving 72 tonne of paper through the automation of internal processes, enforcement of printing restrictions and increased utilisation of Aramex’s intranet forum for internal communications. “This is another strategic step towards reiterating our commitment to the communities we operate in, and minimising our impact on the environment. Our first carbon footprint report opens the door for regional corporations to follow suite and to facilitate transparent dialogue concerning corporate sustainable business practices, performance and commitments,” commented Fadi Ghandour, Founder & CEO, Aramex.

Reducing costs, realising profits Nortel shifted from air to sea transportation to deliver significant cost reduction and took major adjustments in production planning and order scheduling to make it work. For Nortel, the increased use of sea freight has saved more than $1,000,000 versus the more expensive air freight cost, as well as the opportunity to negotiate improved pricing that has realised approximately $500,000 of cost reduction. Commenting on the significance of the report, Raji Hattar, Chief Sustainability & Compliance Officer, Aramex, stated, “In this report, we are announcing our commitment to the environment and holding ourselves accountable to our stakeholders for those commitments. We will aim to make significant progress in minimising our impact on the environment by introducing environment-friendly services, adopting sustainable business practices and increasing carbon efficiency in our operations, with the

aim of delivering our services with the least amount of impact on the environment.”

CARBON REDUCTION STRATEGIES At UPS, logistics is the path to sustainability. UPS has one of the most robust and detailed programmes for measuring and reporting the carbon impact of their operations, as well as that of their customers. The efficiency of their network helps them to better calculate carbon dioxide emissions. They also maintain an impressive set of carbon reduction strategies, which include: Decarbonisation Synergy for Energy and Emissions Yes, it is a mouthful, but it simply means that UPS simultaneously pursues multiple strategies for carbon avoidance in a way that makes each strategy stronger and more effective than it would be on its own. These would include: • Modal shifting: Use of the most fuel-efficient transport mode or combination of modes to meet service requirements • Network efficiencies: The ability to handle express, ground, domestic, international, commercial and residential shipments through one integrated collection and delivery system • Air fleet efficiencies: This is UPS’ most energy-intensive mode of transport and makes up the largest portion of its carbon footprint. UPS continually measures and manages this environmental impact by operating one of the youngest and most fuel-efficient air fleets in the package delivery sector. It also maintains lower flight speeds; computer-optimised flight plans; computer-managed aircraft gate departures and arrivals & taxi times; fuel-efficient biodiesel towing tugs; environment-friendly paint that reduces drag and cleaner engines • Ground fleet efficiencies: To maintain efficiency on the ground, UPS uses

a variety of strategies like telematics, a set of technologies innovated by UPS to monitor vehicle performance; mile-reduction plans and testing & implementation of alternative technology vehicles like the composite car • Integration of technological and human factors: UPS won regulatory approval for its pilots to fly more efficiently, thereby leading to reduced engine emissions. While these are company-wide measures, equipment pooling as a concept can prove to be significant when shifting towards green practices. Pooling brings in the benefits of supply chain efficiencies, cost benefits and most importantly, has a huge positive impact on the environment. According to Pranil Vadgama, President, CHEP India, CHEP’s returnable plastic crate system for produce has been found to deliver environmental performance and financial value in the supply chain by an independent lifecycle study from RMIT University Melbourne, Australia. The study found the CHEP system generated significant benefits for customers in comparison to a single-use corrugated cardboard packaging system in Australia. Based on the results of the study, the estimated benefits on a daily basis are: • More than 175 tonne of greenhouse gas emissions saved • More than 1.2 million litre of water saved • More than 20 tonne of solid waste avoided. The key results from the study highlight the sustainability efficiencies of the CHEP system when compared with a single-use corrugated cardboard system. The efficiencies identified include greenhouse gas emissions were 70 per cent less than a singleuse corrugated cardboard system; 95 per cent less solid waste than the single-use corrugated cardboard system because of a reduction in manufacturing process waste, even if

all cardboard is recycled after use; it takes 85 per cent less water to wash the CHEP crates than is required for the manufacture and recycling of a single-use corrugated cardboard system. As far as India is concerned, Vadgama highlighted, “In India, we are witnessing and seeing the same level of advocacy, focus and interest from the industry. CHEP provides returnable plastic crates in the automotive industry replacing conventional cardboard packaging where benefits are already being realised by auto component suppliers like Bosch, Delphi TVS, Valeo, Continental, Autoliv, Rane TRW and OEMs including Maruti, TATA, M&M, Fiat and VW, across India. Using the CHEP solution means fewer truck movements due to lower equipment relocations and replacement of cardboard, which has a direct impact on reducing greenhouse gases.” The CHEP system of pooling where standard returnable packaging is shared across multiple customers is highly environmentally sustainable. For example, fewer trees are felled in pallet pooling as individual entities would no longer need to purchase their own pallets; instead, they join part of a pool in sharing those resources. This has no longer become a concept in India, but a reality with almost 150 entities across India adopting pooling.

GREEN IN DEED In summary, organisations that wish to start on green supply chain projects must ask some fundamental questions. The answers will then help to illuminate their way towards innovation, profitability and sustainability. As is the case with all groundbreaking endeavours, the first mover advantage is enormous, as are the challenges. So, stop thinking green, start practicing green!

Statement about ownership and other particulars about SMART LOGISTICS, as required to be published in the first issue every year after the last day of February. 1. Place of Publication: Ruby House, ‘A’ Wing, JK Sawant Marg, Dadar (W), Mumbai-400028. 2. Periodicity of Publication: Monthly 3. Printer’s Name: Mr. Mohan Gajria Nationality: Indian Address: Infomedia 18 Ltd, Ruby House, ‘A’ Wing, JK Sawant Marg, Dadar (W), Mumbai-400028. 4. Publisher’s name: Mr. Lakshmi Narasimhan Nationality: Indian Address: Infomedia 18 Ltd, Ruby House, ‘A’ Wing, JK Sawant Marg, Dadar (W), Mumbai-400028. 5. Editor’s Name: Mr. Lakshmi Narasimhan Nationality: Indian Address: Infomedia 18 Ltd, Ruby House, ‘A’ Wing, JK Sawant Marg, Dadar (W), Mumbai-400028. 6. Names and addresses of Individuals who own SMART LOGISTICS & partners or shareholder holding more than 1% of total capital: Infomedia 18 Limited (formerly known as Infomedia India Limited), Ruby House, ‘A’ Wing, JK Sawant Marg, Dadar (W), Mumbai-400028. Is the owner of SMART LOGISTICS Details of the shareholders of Infomedia 18 Limited who are holding more than 1% of the paid up equity share capital of the company as on 20-02-2012: a. Network18 Media & Investments Limited 503,504 & 507, 5th floor, Mercantile House, 15 Kasturba Gandhi Marg, New Delhi-110001 B. ACACIA Conservation Fund LP Citibank N A, Custody Services 3rd Flr, Trent House, G Block, Plot No. 60, BKC, Bandra - East Mumbai 400051 C. Pramod Premchand Shah & Kalpana Pramod Shah Agra Building, 1st Floor, 121/4 MG Road, Mumbai, Maharshatra, India 400023 D. ACACIA Institutional Partners, LP Citibank N A, Custody Services 3rd Flr, Trent House, G Block, Plot No. 60, BKC, Bandra - East Mumbai 400051 E. SPS Capital & Money Management Services Pvt Ltd 66, Tamarind Lane, 4/5, Haji Kasam Bldg, 1st Floor, Fort, Mumbai, Maharashtra, India 400023 F. Sanjiv Dhireshbhai Shah 201-203, Sapphire Complex, Nr Cargo Motors, C.G.Road, Ahmedabad Gujarat India 380006 G. The Oriental Insurance Company Limited The Oriental Insurance Company Limited, Oriental House, P B 7037, A-25/27, Asaf Ali Road, New Delhi 110002 H. Accurate Finstock Pvt. Ltd. 9th Floor, Shikhar, Adani House, Nr. Mithakhali Six Road, Navrangpura, Ahmedabad 380009 I, Lakshmi Narasimhan, hereby declare that all particulars given above are true to the best of my knowledge and belief. Dated: (20th February 2012) Sd/LAKSHMI NARASIMHAN Signature of the publisher






Palletising and shrink-wrapping form an essential component in the transportation of goods to its destination. While shrink-wrapping enables goods and pallets to perform as a unit, palletising is essential to handle heavy goods with ease. Some tips on how palletising and shrink-wrapping the right way can help companies save on time, costs and potential shipping damage…

PALLETISING and shrink-wrapping play small, but significant, roles in logistics. Palletising improves the stability of goods & their packages, ensures proper handling of goods and protects them from elements like moisture, external pressure and dust. The shrink-wrapping process makes the plastic stronger, and when installed correctly, it can form an effective seal around odd shaped, large or cumbersome objects for storage or transport. It also provides a barrier to moisture and debris. Today, palletising and shrink-wrapping are getting automated. All kinds of palletisers – manual, semi-automatic and automatic – are available. Apart from the need for having a state-of-the-art palletising and shrink-wrapping unit with skilled workers, the following are some of the few, but important etiquettes, which will help save time, cost, pallets and mishandling damage:



Select the right kind of pallet and most suitable wrapping method as per your goods’ quality, cost, sustainability and weight. Different types of pallets – from wood pallets to reusable Chep pallets, one-way pallets and plastic pallets – are available in the market for different types of goods. iGPS pallets are fire-retardant. Also, if an iGPS pallet gets damaged, it can be remolded into a new one.



The pallets should be of accurate size and shape and should be in accordance with the size of the goods. Pallets are available in different shapes and sizes – double-deck non-reversible, double-deck reversible, four-way entry, two-way entry, etc. Choosing pallets of the correct size will not only strengthen the pallet and goods as a unit, but will also save time, reduce costs associated with the tearing of plastics around the sharp corners of pallets.

as per the counts. Before finishing, the wrapping must be perfect. When going over the top, check whether it is working as a unit or not. If not, carry it till the bottom, and then recheck.


Do not tie shrink-wrap to the pallet with a knot; instead, use adhesives. Today, plastic films available for palletising easily stick to it. Hence, the time elapsed in tying the knot and then cutting it, is unnecessary. Moreover, it saves on labour cost as well.


Placing the material and pallets as close as possible will facilitate shrinkwrapping, strengthen product safety & security and decrease the presence of moisture within. This step following a perfect shrink-wrapping makes the whole unit tougher than tarp.


Wrap the base of the pallet depending on the mass of goods. If goods are heavy, it must be wrapped several times. Putting a good foundation will erase further potential shipping damages resulting from mishandling since in the end, it is base that has to be handled.


While wrapping, it is essential to ensure that goods and the pallet work together as a unit. There must not be any kind of wobbling while moving it from one place to other. Do not wrap

Water-based adhesives form a chemical bond with package surfaces that holds firm until it is time to unstack the pallets. These are invisible and do not leave behind any harmful residue, like pressure sensitive materials. Also, water-based adhesives can withstand wide temperature ranges and are non-inflammable.


Always place the pallets one over the other in such a way that the corner of one pallet must make a 45 degrees angle with the corner of the other. This would not only enable one to pick each pallet with ease, but would also avoid unnecessary efforts to be made at corners otherwise. In addition, this step would also prevent damage while moving the goods.




A Bottom-up Approach In this cutthroat competitive world, operations management has become integral for efficient supply chain management. Today, the role of Chief Supply Chain Officers (CSCO) has evolved and has become critical in managing the set of processes that enable a firm to supply products and services at the right time. With the intent to provide a platform to decision makers, Supply Chain Leadership Council hosted CSCO Congress on February 2-3, 2012, with Smart Logistics as the media partner. A report... SUMEDHA MAHOREY & NISHI RATH

THE Chief Supply Chain Officers (CSCO) Congress, organised by the Supply Chain Leadership Council, on February 2-3, 2012, was a first-of-its-kind attempt to elevate the role of supply chain management (SCM) within companies and to demonstrate that effective SCM can be an enabler as well as a winning differentiator in the increasingly competitive and volatile global marketplace. In addition, the Congress attempted to create a concerted push for greater outsourcing of logistics services by establishing its rationale and economics jointly between logistics service users and providers.

DAY 1 HAPPENINGS On Day 1, in conjunction with CSCO, India’s first Fork Lift Grand Prix was organised at a circuit specially created for the purpose at the Ocean Gate Container Terminal, near Mumbai. The circuit was designed to test skill, agility, safety consciousness and speed of operation instead of speed of driving. Four companies put their best forklifts and drivers forward for a unique sporting action cheered by top supply chain professionals. The trophy was lifted by Ankush Phulse of Ocean Gate Container Terminal after a nail-biting tie between Ocean Gate, LCL Logistix and Transport Corporation of India of merely six seconds. RK Foodland stood the runner up. The event was compered by Aryan Gajaria, the official Master of Ceremonies of Force India. Gautami

Seksaria, Founder & Partner, Supply Chain Leadership Council, avers, “The longer term positive impact of mutually sharing ideas and experiences even with peers and competitors far outbalances the gain, if any, from hoarding them. This is what the CSCO Congress provides a platform for. The forklift championship is truly of, by and for the industry’s blue-collar workforce. I am glad we could convert their daily routine work into some fantastic sporting action while highlighting that safety comes first.” A field trip to Arshiya’s state-of-the-art free trade warehousing zone, near Mumbai, was also organised to give firsthand information of the benefits of the FTWZ for supply chain managers.

EVENTS ON DAY 2 The second day was divided into a few categories like ‘CSCOs in the board rooms’. Here, the delegates discussed how SCM has been viewed by the top management as a cost that needs to be consistently pushed down. Taking it ahead, in the section ‘SCM-driven market leadership – In good times and bad’, they focussed on how in an increasingly cluttered global marketplace, ‘place’ is finding great footing with ‘product’, ‘price’ and ‘promotion’ as a key driver of growth. This was followed by a discussion on ‘The Mathematics of outsourcing SCM’. During this session, they focussed on how through the help of service user side and service provider side

case studies, one can try and establish the mathematics of outsourcing as well as focus on the new dynamics that are transforming the way service users approach outsourcing decisions. Lastly, the section, ‘The Grand Indian SCM debate – CEOs wish list for the Budget’, comprised of a high-level debate between C level executives from different industries. This section was designed to converge thought leadership from different quarters towards greater growth and sophistication in Indian logistics and supply chain in the new decade.

SUCCESSFUL CONCLUSION The India CSCO Congress had a successful conclusion in the company of chief supply chain officers of some of India’s best and biggest manufacturing and retail companies. According to the delegates present there, the session gave them a better understanding of outsourcing, cost and customer expectation, among others. The participants could connect to some points and learn from their counterparts during the discussions. “Today, the supply chain is not how it used to be. It needs a lot more focus and is serious business. The supply chain plays a very important part in a company’s success. This event was very informative. It gave an insight into the industry from another leader’s point of view,” concluded Arvind Kalra, Sr VP – Supply Chain (Manufacturing, Operations and Sourcing), Amway.



This section gives information about products, equipment and services available in the market. If you know what you want. . . refer to Product Index on Page 64 to find it quickly


supported load wheel for smooth operation; precision machined case hardened alloy steel gears benefiting longer life span & noiseless operation; fully pocketed malleable/SG iron cast load chain wheel for safe & smooth running; and anti-rust & better aesthetics with anti-corrosive powdercoated zinc-plated parts.


he Venture-445 is a metal pallet available in two models with/without MS sheet platform in mild steel in order to avoid wooden pallets to save trees. Some of the advantages include: protect trees & save nature, lightweight & heavy-duty, stackable & save transport cost for movement of empty pallets, long life & cost-effective, reusable & long-term savings, export ready, resale value even in scrap condition, maintenance-free, customisation based on requirements, can be used all four sides by hand pallet & fork lift, good strapping with the product, weather-proof, and other value-added features. Pushpak Products India Pvt Ltd Bengaluru - Karnataka Tel: 080-28382031, Mob: 09845048998 Email: Website:



he adjustable PCB rack is available in a wide range to stack and store or transport PCBs. Th is rack is manufactured in both conductive and nonconductive plastics and can handle all sizes of PCBs. It is used for protection of boards during storage or transport in assembly line or integrates with automatic component insertion machines. The rack is stacked one upon the other. Each rack has distinctly numbered on white background 31 slots, which holds a maximum of 31 PCBs. Special aluminium guides have a unique design, which remains flush with the PCB rack. Alkon Plastics Pvt Ltd Mumbai - Maharashtra Tel: 022-26042168 Email: Website:



he standard chain pulley block is tested for 50 per cent overload and deliver assured safety levels. Th is chain pulley block is equipped with a grade 80 load chain for long chain life. Salient features include: double ball bearing


Hercules Hoists Ltd Dist Raigad - Maharashtra Tel: 02192-274087 Email: Website:



he cable trays and cable ducts are available in aluminum or steel materials of construction. Salient features include free from corrosion, seepage and destruction resulting from under ground laying; easy installation instant approach for repairs & replacement; can be fi xed to any structure wooden plank or steel angle in any running length; slotted pattern ensures regular airflow, cooling the cables naturally; and aluminum cable trays, fabricated with mild steel/CR sheets & can be painted or galvanized as per the suitability at site. Standard length is 250 mm, but the same can be manufactured in longer sizes depending on the availability or raw material. Pilco Storage Systems Pvt Ltd New Delhi Tel: 011-27110024, Mob: 09810074596 Email: Website:



he storage and handling system includes multi-range pallet racking system, mobile storage system (compactors), heavy-duty rack, multi-tier slotted angle storage system, cable tray, etc. Multi-range pallet racking is used for heavy-duty storage. Conventional pallet racking is universal systems for direct access to each pallet allowing easy stock control adaptable for any height to all load

types both in terms of weight and volume. The mobile storage systems (compactors) glide on a steel track and consist of mobile base units onto which different shelving options can be assembled. Divakaran Storage and Handling Systems Pvt Ltd Umbergaon - Gujarat Tel: 0260-2562103 Email:

stations, airports and various other heavy-duty maintenance jobs on aircrafts, inside heavy industrial machine shops and plants. Vanjax Sales Pvt Ltd Chennai - Tamil Nadu Tel: +91-044-42821000, Mob: 09789976611 Email: Website:



he model SE-1613/42-TC multi-scissors hydraulic lifting platform is mounted on Tata Chassis. Four outriggers with built-in fail-safe safety features, such as platform cannot be raised without stabiliser being fi rmly positioned; stabilisers cannot be retracted unless the platform is fully collapsed; and provision of manual system in case of failure of prime mover PTO power connection. The multiscissor hydraulic lifting platform is used for various maintenance jobs in heavy industry, railways, chemical plants, thermal power

Vol. 02 | Issue 06 | SEPTEMBER 2011



he telescopic fork is an attachment that provides benefits, such as save loading/unloading time dramatically, reduce fuel consumption and wear & tear of lift trucks, improve operational safety by eliminating blind turns when accessing other side of trucks for loading with normal forks, reduce space required for loading unloading as it can be done from one side, inside the warehouse it can improve space usage dramatically enabling double-deep stacking, and reducing number of forklift operational gangways. It can also be used for double pallet

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transportation. The forks’ length is altered hydraulically and ensures the load is always fully supported. Qualipack Logistics Pvt Ltd Bengaluru - Karnataka Tel: 08110-415001, Mob: 09845083719 Email: Website:

Tel: 0294-2492200, Mob: 09829042424 Email: Website:



his gantry crane is used for handling blocks at processing base. Rational structure is of the box construction is adequately designed and reinforced by stiffening ribs to take care of all types of loadings. The complete structure is mounted on four wheel base each having two double rimmed steel wheels provided with flexible bushing to take care of any misalignment. The top beam is fi rmly fi xed or heavily fabricated steel bracket. The crab carriage is in steel section. Friends Engineering Works Udaipur - Rajasthan



he truck loading conveyor is used for loading/unloading bags, cartons, boxes, crates, etc, from trucks. It comes with completely motorised operation with operator control panel on loading/ unloading end. The height of the loading and unloading ends can be changed, independently. The conveyor is completely mobile, mounted on sturdy wheels for easy mobility. It has telescopic arms for greater reach inside the truck. The truck loading conveyor has a choice of powerised rollers or heavy duty belt, choice of various belts depending on the application, choice of lighting on the conveyor to facilitate unloading/loading of containers, etc. Aravali Engineers Noida - Uttar Pradesh Tel: 0120-2401105, Mob: 09810076877 Email: Website:

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he logistic services available include bulk transportation through company owned tank lorries for transportation of chemicals, furnace oils, acids, etc. Some of the advantages of these services include wide distribution network, skilled & trained logistic personnel, use of safe & secure transportation system, tankers available in 12 and 20 KL capacity, SS & MS tankers, etc. M K Trading Company Indore - Madhya Pradesh Tel: 0731-2460392, Mob: 09302103439 Email:



he hydraulic floor crane provides an efficient low-cost alternative to other material handling equipment. Th is crane is strong, robust, sturdy and built to very high standards. It is easily maneuverable and has a very small turning radius. The hydraulic floor crane is ideal for loading/unloading and shifting of heavy loads. The crane structure consists of the chassis, vertical column, derrick and the hydraulic cylinder assembly. All models above one-ton capacity have a double column box frame made of steel pipes.



acked by a state-of-the-art infrastructure, an extensive range of master carton is offered. The carton is ideal for freight consolidation and is extensively used for shipping of goods in bulk consignments. The range of carton fi nds applications in various industrial sectors for packaging purposes and is also offered in various customised sizes. Known for high holding capacity these master cartons are offered at industry leading rates to clients. Cargo International Packagings Sonepat - Haryana Tel: 0130-6991036, Mob: 09315337070 Email:

Tel: 022-27619185 Email: Website:



he metallic conveyor belt achieves high standards of engineering and construction. One can choose from different types of standards. Belt weaves are often used for diverse belt applications across the entire span of industry. When additional strength is required and belt-tracking needs to be controlled, chain-driven belts are best. Flat wire belt is economical strongman of the conveyor belt family. Available in different belt specifications, the metallic conveyor belt is manufactured with various types of belt edges.

Hydropack India Pvt Ltd Belgaum - Karnataka Tel: 0831-2442559, Mob: 09449595040 Email: Website:



he multi-stage scissors lift has load capacity up to 1500 kg, height up to 4.5 m (14.75 ft), platform size up to 10 ft x 4 ft fi xed type. Th is lift is power operated and widely used in various industries, like plywood, laminated sheets, ceramics, paper lamination, plastic moulding, packaging, automobiles, rubber moulding, textile and pharmaceutical. The multi-stage scissor lift is also used in rack storage systems and container loading. Customised models are available in all the products. Hydro Mech Engineers Ahmedabad - Gujarat Tel: 079-25890771, Mob: 09825019905 Email: Website:

The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

T N F Engineering Navi Mumbai - Maharashtra



To know more about the products & advertisements featured in this magazine, write to us at or call us on 022-3003 4640, and we will send your inquiries to the companies directly to help you source better. Products

Pg No


Pg No

Automotive dealership excellence award ......................................6

Logistics services .................................................................. 7, BC

Cable trays and ducts .................................................................60

Metal pallet ................................................................................60

Carton ........................................................................................63

Metallic conveyor belt ................................................................63

Chain pulley block .....................................................................60

Multi-level steel car parks ............................................................4

Chassis carrier .........................................................................FIC Cold form sections .......................................................................4 Exhibition - EngineeringExpo ....................................................8

Multi-stage scissors lift ..............................................................63 PCB rack ....................................................................................60 Pre-engineered metal building .....................................................4

Financial institute ....................................................................BIC Roofing & cladding sheet ............................................................4 Gantry crane ..............................................................................62 Growth capital and equity assistance for MSMEs .................BIC Heavy industrial steel structure ....................................................4 Hydraulic floor crane .................................................................63

Storage and handling system .....................................................60 Structural floor decking sheet ......................................................4 Telescopic fork ...........................................................................61

Hydraulic lifting platform ..........................................................61

Trailers and truck body ...........................................................FIC

Liquid transportation services ....................................................63

Truck loading conveyor ..............................................................62

Pg No


Tel. No.







Engineering Expo


7, BC

Safexpress Private Limited



Seamless Autotech Pvt Ltd



Small Industries Devt Bank Of India


United Steel & Structurals Pvt. Ltd +91-44-42321801

Our consistent advertisers COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover


Use this form for free additional Information on advertisements published in this issue. We will send your inquiries to the advertisers and ask them to send you the details or contact you directly.

HOW TO USE THIS FORM: • Please tick against the box of advertiser(s) you are interested in: • Mention specific product/service you need, against the advertiser’s name • Complete all the details on this form. • Tear the form & mail it to us. (It is a prepaid mail) Tel.: +91-22-3003 4640 • Fax: +91-22-3003 4499

E-mail: PRODUCT INQUIRY FORM  Automotive dealership excellence award .................6  Logistics services ............................................. 7, BC  Cable trays and ducts ...........................................60  Metal pallet ..........................................................60  Carton ..................................................................63  Metallic conveyor belt ...........................................63 First Fold Here  Chain pulley block ................................................60  Chassis carrier .....................................................FIC  Cold form sections ..................................................4  Exhibition - EngineeringExpo ...................................8

 Financial institute ............................................... BIC  Gantry crane .........................................................62  Growth capital and equity assistance for MSMEs BIC  Heavy industrial steel structure ...............................4

 Multi-level steel car parks .......................................4  Multi-stage scissors lift.........................................63  PCB rack ..............................................................60  Pre-engineered metal building ................................4  Roofing & cladding sheet ........................................4  Storage and handling system ................................60  Structural floor decking sheet .................................4

 Hydraulic floor crane .............................................63  Telescopic fork ......................................................61  Hydraulic lifting platform ......................................61  Trailers and truck body ......................................... FIC  Liquid transportation services ...............................63  Truck loading conveyor ..........................................62

Second Fold Here

ADVERTISERS’ INQUIRY FORM  Seamless Autotech Pvt Ltd

 Engineering Expo

 Small Industries Devt Bank Of India

 Safexpress Private Limited

 United Steel & Structurals Pvt. Ltd


Third Fold Here


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Smart Logistics - March 2012  
Smart Logistics - March 2012  

‘SMART LOGISTICS’ is a techno-commercial magazine aimed at providing smart solutions for the logistics companies to spearhead the growth mom...