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PAGES 84 inclusive of cover


VOL X ISSUE VI may 2019 `20

Postal Registration No.: DL (S)-17/3372/2019-2021 WPP No.: U(S)-81/2019-2021 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

India Betting on

warehousing Boom 10 Apparel

Value Chain trending: on time

36 How

far would India’s Air Cargo market spread wings?

42 India’s

forwarders need to buckle up in a softening market

TURKISH CARGO, THE FRESH WAY FOR PERISHABLE CARGO We t ra n s po pe ri sh abl e goods s uch as vegetables , fruits , fis h, meat , and flowers to a ll co rn e rs of th e worl d wi th s pecial sto rage ro o ms and co ld chain equipment to keep them fres h.



Volume X • Issue Vi • may 2019

Publisher Smiti Suri Special Correspondent Upamanyu Borah Senior Reporter Smita Kumar Director Ajeet Kumar



India Betting on Warehousing Boom


Apparel Value Chain Trending: On Time technology

Marketing Manager Rahul Arora Asst Manager Marketing Mehuli Choudhury Marketing Executive Akash Gupta Accounts & Administration Nitish Kumar Sr Designer & Visualiser Ashok Saxena Designer & Visualiser Mayank Bhatnagar

Making the Autonomous Supply Chain a Reality .................................................52



How far would India’s air cargo market spread wings? ........................................36 feature

Lim Ching Kiat

Managing Director, Air Hub Development, Changi Airport­Group ....................................................54

Glyn Hughes,

Global Head of Cargo, IATA ...............................56

FRONTLINE ..............................................6 buzz ........................................................8 SHIPPER SPEAKS ...................................58 NEWS ...............................................60-67 EVENTS ............................................68-76 SPOTLIGHT.............................................78 UPCOMING EVENTS ................................80 APPOINTMENTS .....................................81 PEOPLE CONNECT

India’s forwarders need to buckle up in a softening market ....................................42

wilson kwong

Chief Executive, Hactl ..............................................82

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

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

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frontline We have finalised the industry policy. I am sure that the new government will announce that soon. We are trying to bring in more FDI. FDI will

come either in greenfield area or it could be through acquisition. So,

we must prepare a strategy on both. We should target those companies that can invest because they have investable surplus and same time, we must have a matching sectoral strategy wherein inbound investments can be absorbed. In 2018-19, India’s exports of goods and services would touch about US$ 540 billion.

Commerce and Industry minister Suresh Prabhu informed during CII’s Annual session 2019

$107.82 billion

Government will invest over 2018-2022 for construction of new roads and highways Massive works are underway to develop waterways. Of the 111 rivers to be converted into waterways, projects are underway on 11....This year, 80 lakh tonne of cargo was transported through the Ganga which was going to swell to 280 lakh tonne as a draft of 3 metre has been maintained on Varanasi to Haldia stretch of 1,680 km... Now we have paved the way for exports to Bangladesh and Myanmar through Varanasi...

If we reduce our logistics cost by just 4 per cent then our exports will boost by 25-30 per cent... Union minister Nitin Gadkari said while kicking off PSU Concor’s maiden containers voyage through coastal shipping

The budget allocation for roadways has increased at a CAGR of 21 per cent from FY09 to FY19. For FY18–19, $18.69 billion has been allocated for roadways by the government, out of which 59 per cent is allocated for national highways. Focus has been given to rural development as well, with the government allocating $2.93 billion for rural roads under the Pradhan Mantri Gram Sadak Yojana in order to increase urban-rural connectivity. Various MoUs with investment potential worth $29.74 billion were signed by the Ministry of Road Transport and Highways last year with private and public companies. - NITI Aayog Our effort is to make India a fiscally prudent economy. Our effort is to ensure that we do not waste the opportunities that we get to make India a strong economy and probably the world’s best economy!

We have been the fastest growing economy for the first time for five years. We have had the

lowest inflation for the first time for five years. We have brought down fiscal deficit. We have brought down current account deficit. On every score, this has been the most fiscally prudent government India has seen since Independence. Railway minister Piyush Goyal asserted


CargoConnect - may 2019

Special Economic Zones (SEZ) or Free Trade Zones (FTZ) will be established at or adjacent to major international airports to promote the use of India as a global transshipment hub. Current land requirement and other norms for the setting up of SEZ/FTZ will be be reviewed in a timebound manner in order to promote setting up of SEZ/FTZ keeping in view the limited land availability and higher value to land ratio. – National Air Cargo Policy Outline-2019

may 2019 - CargoConnect




MIAL becomes the first Indian airport to receive CEIV Pharma Delhi Airport ranked # in India and Central Asia



CargoConnect - may 2019


he Mumbai International Airport Limited (MIAL), a joint venture between Airports Authority of India (AAI), and a GVK-led consortium has become the first Indian airport and third in Asia to achieve the International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) Pharma certification. MIAL has achieved this quality milestone for pharma logistics following successful completion of training courses, on-site assessment, and complex validation processes. Acknowledging the importance of this initiative, MIAL has initiated the certification process in a community approach m a n n e r toge t h e r with its air cargo supply chain partners. T h e I ATA CEIV Pharma certification is introduced to prevent temperature excursions of pharma products during air transport with the key objective of patient safety and reduction of losses attributed to logistical issues. It aims to improve the handling of pharmaceutical cargo by complying with existing national and international regulations. The authorisation ensures seamless handling, adequately equipped facilities, safety & security, standardisation and transparency in the pharma supply chain across the air transport.

State-of-theart Import Cold Storage facility – “Import Cold Zone”

SPECIAL feature

Apparel Value Chain Trending: On Time Fashion trends move at a fast pace, change quickly, making it imperative for new product lines get to the stores as soon as possible. Success in the fashion industry requires an intelligent supply chain; responsive to smart reconfigurations to meet volatile consumer purchasing patterns, seasonal shifts, etc. Lead times, accuracy, availability and reliability are all of critical importance. Fashion supply chains are extended and complex, as manufacturing moves to lower cost countries. Pace being constant, we figure other success dynamics of fashion supply chains. Ajeet Kumar

10 CargoConnect - may 2019

SPECIAL feature

rive Insight Fashion is a highly demanding trade where obsolescence is swift, efficient and flexible supply chain is critical to get the garments to market on trend and on time. Reducing the transit time across the supply chain to ensure the

products reach the shelves on time for the season, sale or even heavy shopping days like Sunday across geographical regions, are fashion supply chain imperatives. Expertise in demand planning including range availability, optimum inventory levels and shorter cycle times, are key dynamics. Expedited service has become an increasingly attractive solution for ensuring guaranteed deliveries of time-sensitive apparel shipments. A shipment of shirts, for example, sitting in a warehouse in Delhi but set to go on sale in a few days throughout Europe stores, could seamlessly be delivered via an expedited solution.

Pace or Perish

Fashion and Apparel companies need to take an omnichannel approach. That means companies need to provide a seamless experience whether shipping freight to DCs, from DCs to stores, storeto-store, or direct to consumers.

Apparel industry is going through unprecedented challenging times these days due to internationalisation and rapid changes in seasonal trend cycles combined with increasing online consumer demand behaviour. “It’s literally a pace or perish scene for the fashion industry, if any of their supply chains fail,” believes Praveen Dadala, Managing Director, Awot Global Logistics (India) Pvt Ltd. “With so many International brands getting into the hot retail market, vying for the same space, the critical point for success of any apparel brand is to ensure that their supply chain processes are effectually planned and products are delivered right on time,” says Dadala. The global fashion industry is fastpaced, dynamic and seasonal which means they must bring an item from design stage to the sales floor in the shortest possible time. Essentially, staying on top of the supply chain is crucial for the ultimate success of any fashion house- be it a manufacturer or buyer. Ketan Kulkarni, Head - Marketing, Blue Dart says, “Time management is critical for the success of the apparel supply chain. Poor planning of timelines can often lead to last minute hiccups like replenishment issues, breakdowns which make the supply chain more vulnerable. Forecasting, scheduling and following lead times are imperative as customers expect their partners to deliver quick services like click and collect, same day delivery, etc.”

Safe to Shelf Delicate fashion products must be handled with extreme care at all times. As fashion trends propagate from Tier I to Tier II and III cities, the need is to ensure that unsold products move accordingly safely. Fashion apparel is easily prone to alarming shrinkages, pilferages, and damages while moving on the supply chain routes. According to Dadala, “It is rumoured that India has one and half to two times more theft as compared to our global counter parts. Many SCM solutions provider and their clients try different methods during different situations to ensure safety of the shipments. Those include specific identified taping of cartons, shrink wrapping of cartons to avoid moisture, and securing the movements of Garments on Hanger (GOH), etc.” From inbound raw materials and drop shipments to worldwide sample distribution and customer returns, the only constant in the apparel business is change. So the requirement is of a shipping provider who’s smart, flexible and able to provide tailored solutions every step of the way. Many LSP’s reverse logistics services are convenient, single point solutions for retailers. It includes assessing the products to be returned, assisting disposition decisions, repacking and finally returning the shipment. “At Blue Dart the best in class and industry leading safety standards are a part of operating protocol,” says Ketan. “We conduct safety audits periodically where our hub/facility managers are evaluated based on the safety scores of their operations. We also implement safety training programmes for all employees in their domain expertise,” mentions Ketan.

Vendor Management Fashion industry need to meet the critical demands of production flow between apparel manufacturers and their suppliers i.e., automatic replenishment, inter-store movement, stock repositioning, fulfilment, and much more. Though the apparel industries are capable of producing most of their requirements by in-house manufacturing, time to time they often prefer outside may 2019 - CargoConnect


SPECIAL feature

A number of apparel manufacturers concentrate their production capacities in certain regions due to large investments in machinery/ infrastructure, therefore as distance between production facilities and customers increases, so do cost. An effective multi-lateral geographical integration is crucial in order to manage the critical demands of the production flow and achieve superior performance. Ketan Kulkarni

Head - Marketing, Blue Dart

Fashion retailers and manufacturers need every advantage when it comes to shipping, such as express services to get their products at a given place on time. And visibility tools that show the locations of shipments in transit. 12 CargoConnect - may 2019

sourcing than the in-house manufacturing. The reasons could be the limited time availability, the quality level expected by the customer, and higher manufacturing cost of the product. Whenever there is a specific requirement in fabric or trims or accessories, for which there is a lack of expertise in-house to produce, the manufacturer prefers outside sourcing. To get cost benefit, apparel retailers and manufacturers prefer relocation of their operations to overseas, and the sourcing of components from, low-labour cost countries. “The global fashion industry is a diverse and heterogeneous industry which covers an important number of activities from the transformation of fibres to yarns and fabrics to the production of a wide variety of products such as hi-tech synthetic yarns, wool, bed-linen, industrial filters, geo-textiles, clothing, etc.,” says Ketan. A number of apparel manufacturers concentrate their production capacities in certain regions due to large investments in machinery/infrastructure, therefore as distance between production facilities and customers increases, so do cost. “Thus, having an effective multi-lateral geographical integration is crucial in order to manage the critical demands of the production flow and achieve superior performance,” adds Ketan. Arun Kumar Dutta, Operation, Logistics and Warehouse- Flyjac Logistics Pvt Ltd points out the most common problem, the difficulty of effectively balancing demand with supply, faced by manufacturers across all industries. Kumar says, “It is the ratio between outputs and inputs. This can

be used to compare productivity across products factories or manufactures. Manufactures continuously face the challenge of demanding what to make so as to better manage the delicate balance of demand and supply from functional areas immediately linked to management, sales and marketing.”

Consolidation Anyone who knows fashion and luxury knows that it’s not just about getting products from A to B. It’s about being as flexible as spandex and as reliable as gold. And of course, it’s about timing. So, fashion retailers and manufacturers need every advantage when it comes to shipping, such as express services to get their products at a given place on time. And visibility tools that show the locations of shipments in transit — which helps them plan their line and keep their promises. Apparel retailers and manufacturer have to cut costs where they can, while offering a product and level of service that keeps customers coming back. Also, consolidating for cost efficiencies at multi-supplier sources, warehousing at domestic or regional basis, for delivery to local retail stores, is gaining traction. A variety of functions is being shared, from order reception, to transport, delivery, and storage. The global network of facilities of a service provider also allows them to perform buyer’s consolidation or regional distribution consolidation across borders and continents. For importers receiving small shipments from multiple locations throughout a region and other global locations, the shipper pro-

SPECIAL feature

vide a practical, convenient service that considerably reduces ocean freight costs. Consolidation also allows an appropriate product mix to be achieved for further distribution within the region. Logistics is one of the main factors which affect fabric sourcing drastically. There are several aspects: 1. Time required for transportation, 2. Infrastructure for logistics, 3. Cost of logistics. The time required for transportation is very important to achieve the accurate lead time of fabric/trims procurement. Absence of adequate infrastructure will lead to delay in fabric procurement. Cost of logistics will directly affect the cost of garment; hence merchandiser should be well aware about these aspects of logistics. International firms with high level of economies have tried international business expansion in both inbound and outbound logistics. The current level of uncertainty and variability makes it imperative to bring about collaboration to increase profit margins starting from supplier’s efficiency to retailing. Talking about collaborative logistics, Ketan expresses, “Sharing transportation infrastructure can lead to rationalising logistics work, improving work efficiency at delivery points, and cutting transportation costs and environmental impact when compared with the conventional system of a separate set-up. A collaborative delivery method can be cost-effective and can benefit the entire eco-system.”

Multimodal Transportation Speedy response and excellent quality and convenient delivery that the indus-

try demands, especially in this era of multiple sales channels and online retailing, requires multimodal transportation usages. Most importantly, costs and time combined with safety are the critical factors in fashion supply chains. Dutta says, although, sea is the most preferred one, the mode of transportation mostly depends on the dispatch type and urgency of the merchandise. In this case, enterprises or company chose their convenient transport mode which is cost effective for their business. Air freight is a critical mode of transport. It serves markets and supply chains that demand speed and therefore the best suited mode of transport for the industry, believes Ketan. “Air cargo would be the best bet if speeding up the delivery process is the need. Further, sea freight can cause additional delays as there are custom issues, port hold ups,” points out Ketan. According to Dadala, “Air freight is an expensive affair, and therefore, fashion industry moves either on sea or a combination of sea-air. However, for season launches and late production deliveries, it is common to see that considerable airfreight is utilised.”

Technological Interventions As the apparel industry attempts to catch up to the speed at which consumer expectations are rising, many companies are racing to digitise their processes. Technology can be a great equaliser and its solutions can be quite effective at helping companies reduce lead times. Certainly, lead time reduction has been the holy grail of fashion industry for years, says Dutta. Apparel sourcing

It’s literally a pace or perish scene for the fashion industry. With so many International brands getting into the hot retail market, vying for the same space, the critical point for success of any apparel brand is to ensure that their supply chain processes are effectually planned and products are delivered right on time. Praveen Dadala,

Managing Director, Awot Global Logistics (India) Pvt Ltd

Creating a hasslefree shopping experience includes inventory availability, convenient fulfilment options and flexible returns policies. The common threads in achieving these capabilities are technology-based logistics strategies. may 2019 - CargoConnect


SPECIAL feature

As a government body, the first commitment that we have made is the cargo clearance process at the ports and the airports to be completely paper-free. We have come up with a Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations 2018. The regulations are designed in such a way that there is no assumption to the use of hardcopy paper in the clearance process. Satya Prasad Sahu

Commissioner (Single Window), Ministry of Finance, Central Board of Excise and Customs (CBEC)

Apparel Supply Chain typically needs high focus on managing thefts and pilferage across the entire network, and also on-time delivery to stores where sales would otherwise be lost if a certain Stock Keeping Unit (SKU) is not available. Returns management of unsold stock is also a critical part of apparel supply chain and needs very different pick-up and delivery strategies. Abhik Mitra

CEO & MD, Spoton Logistics Pvt Ltd

14 CargoConnect - may 2019

executives continue to cite ‘lead time optimisation’ as a top business and technology priority. Today, cycle time reductions of any garment manufacturing company using software technology tools are available. Creating a hassle-free shopping experience includes inventory availability, convenient fulfilment options and flexible returns policies. The common threads in achieving these capabilities are technology-based logistics strategies. After all, it’s all about bringing speed into the supply chain and technology is certainly one of the ways to make this happen. Like any other industry expert, Dadala firmly believes on the potential advantage acheived by leveraging technological solutions. “Technology enables real time end-to-end data which in turn enables companies to manage demand signals more correctly and thereby aid their strategies to work out their inventory levels and place their products to customer fronts, faster and accurately,” says Dadala. However, most importantly, in order to compliment the ‘Just-in-time’ (JIT) inventory management system of India’s customers globally, the need is to enhance our country’s domestic logistics set up in a way that suppliers/ exporters/manufacturers are able to meet the global standards of supply chain. This requires all the stakeholders in the supply chain to be in sync and connected with each other through technology. Live tracking of consignments is instrumental in this model of supply chain. “The ability to shorten product cycles drastically to get products to market faster, or the use of technology like

Artificial Intelligence (AI) or big data to predict style and colour trends and forecast the future, are all examples of how brands and retailers can gain a competitive advantage,” avows Marc Compagnon, Executive Director & Group President, Li & Fung. Needless to mention, we see a lot of innovation at the retail and consumer level, but where companies need to be investing is in their supply chain. “Digitalising the supply chain is a process that takes time and it’s about taking that first step. For example, 3D design and virtual sampling is one of the digital services that is easy to experiment with and the business benefit is tremendous – with the possibility of reducing product cycles from months to weeks or even days. So again, I go back to speed being key in staying competitive in today’s digital economy,” maintains Compagnon. “Apparel firms and suppliers that both understand, connect and respond to their consumers should be on track for a winning format. Harnessing digital will enable them to remain connected to their consumers and develop products and experiences with a value proposition that they love and will pay for,” says Rajiv Sharma, Group Chief Executive, Coats Group. “Quality, speed and flexibility are key drivers of success and need to support a sourcing ecosystem that can run different models of complexity. Again, digital is key and can help transform every single part of operations to drive greater efficiency,” further states Sharma.

Distribution Management Model Traditional distribution solutions have been upended by out-of-the-box think-


SPECIAL feature

Apparel firms and suppliers that both understand, connect and respond to their consumers should be on track for a winning format. Harnessing digital will enable them to remain connected to their consumers and develop products and experiences with a value proposition that they love and will pay for. Rajiv Sharma

Group Chief Executive, Coats Group

Lead time reduction has been the holy grail of fashion industry for years. Apparel sourcing executives continue to cite ‘lead time optimisation’ as a top business and technology priority. Today, cycle time reductions of any garment manufacturing company using software technology tools are available. Arun Kumar Dutta

Operation, Logistics and Warehouse- Flyjac Logistics Pvt Ltd

16 CargoConnect - may 2019

ing that allows merchandise to travel directly to retail stores. This eliminates unnecessary and inefficient distribution center stopovers. It used to be that shipments were routinely shipped to a distribution center, often located hundreds of miles off-route, just to be sorted and re-loaded. By allowing shipments to move directly to their end destination, a company can save threeto-seven days from its transit time. Direct-to-store model provides visibility of all orders from beginning to end. Depending on the specific business parameters it is even possible to track a shipment on in-store date, thus eliminating unpleasant surprises or half-informed decisions. Bypassing the regional Distribution Centers (DCs) and delivering the orders directly to the store will result in lower labour costs and save storage space at the DC. Also, because logistics value-added services are typically executed at a consolidation centre at origin, companies will benefit from lower processing costs. Some companies choose to apply the direct-to-store model only or mainly, to handle their seasonal freight flow. In this situation, the main benefit is that the model will alleviate the pressure on the company’s own DCs. And in all cases the improved efficiency of distribution at destination will drive significant carbon emission reductions - a major issue for many fashion and lifestyle brands. When it comes to the fashion and apparel industry, companies need to take an omnichannel approach. That means companies need to provide a seamless experience whether shipping freight to DCs, from DCs to stores, store-to-store, or direct to consumers. The key to making this approach work in terms of a transportation solution is integration and visibility. “It is essential to have extensive coordination and integration in order to maintain sustainability and compatibility in the fashion supply chain,” says Ketan. Inventory management and transportation management are extremely important factors to stay ahead in the fast-paced fashion industry. “Companies should believe in using models that provide solutions of supply chain and logistics op-

timisation like integrated network design, control towers, network modules, cost and demand analysis, scenario prediction analysis, etc.” adds Ketan.

Reducing Customs Delays Customs clearance is an integral part of the apparel supply chain. With fashion trends changing quickly, it is essential that new product lines get to the retail stores as soon as possible. But, when it comes to retail front, the store management always faces challenges such as visibility issues, controlling challenge and freight cost challenge as well as clearance issues at the ports. Managing customs clearance is indeed a key area. “Customs clearance areas are usually where entry level barriers are experienced and a good customs clearance agent will help save costs and time for fashion industry clients,” shares Dadala. While many governments have upgraded their clearance processes with technology-based document filing systems, the risk of customs delays remains a real threat. Satya Prasad Sahu, Commissioner (Single Window), Ministry of Finance, Central Board of Excise and Customs (CBEC) responds, “As a government body, the first commitment that we have made is the cargo clearance process at the ports and the airports to be completely paper-free. We have come up with a Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations 2018. The regulations are designed in such a way that there is no assumption to the use of hardcopy paper in the clearance process. Likewise, the single window initiative allows for the paper work that we filed electronically at a single point for clearance purposes; the decisions for the same will come back to the exporter or the broker directly on their systems, without the broker or the exporter having to approach any office. So, typically as a shipper, we do not expect fashion retailers and manufacturers budge from their office and let a logistics service provider do the rest for them when it comes to cargo clearance.” However, to manage the uncertainties, companies are turning to experienced logistics providers to manage the

SPECIAL feature

The ability to shorten product cycles drastically to get products to market faster, or the use of technology like AI or big data to predict style and colour trends and forecast the future, these are all examples of how brands and retailers can gain a competitive advantage. Marc Compagnon

Executive Director & Group President, Li & Fung

process on their behalf, and for insight about the nuances of each government’s customs procedures. Ketan asserts, “Blue Dart, as the undisputed leader in the express logistics industry in India, is engaged in the business of clearing and forwarding of time sensitive air cargo packages and is a registered Air Cargo Agent with the International Air Transport Association (IATA) and licensed Custom House Agent under the provisions of Customs Act, 1962.” Blue Dart is also engaged in the business of clearance of import cargo in addition to export cargo at Mumbai and has a valid break-bulk license to handle consolidated shipments.

Returns Management

We expect the following areas to be the top three priorities for apparel companies in 2019: investment in omnichannel integration and digital strategies, increasing full-price sell-through, and improving customer experience (in stores and online). Dr Achim Berg

Senior Partner- McKinsey & Company; Leader- McKinsey’s global Apparel, Fashion & Luxury Group

18 CargoConnect - may 2019

The industry is marked by a high percentage of returns. These need to find their way back to a re-distribution or a disposition warehouse. An inevitable aspect of retail, product returns can amount to as much as 30 percent of an apparel company’s total sales. But retailers now see potential in those returns — both as a way to satisfy customers with a hassle-free returns policy, and as a source of revenue. Trends in returns are also aiding companies in developing robust inventory management models. According to a recent IBM survey, 94 per cent of retailers have shown interest in investing in cognitive computing. Predictive analytics and cognitive computing help predict future customer preferences and minimise return possibility. An experienced logistics provider can work directly with a business to build a returns process that addresses key variables including a process for consumers to use when returning an item (i.e. including returns label with original packaging, RMA authorisation), a process for accepting online purchases for return at retail store loca-

tions, and for ensuring undamaged returns are reflected in inventory levels. Here, Ketan, as a service provider simply defines their role and the recognition that they have built over the years. Ketan says, “Blue Dart is acknowledged for the value, quality, speed, efficiency, responsiveness and service excellence that we offer. Our returns/reverse service comprises Open & Closed and is on a strong growth momentum since introduction. In terms of deploying automation in the reverse logistics space, to ensure the service is fulfiled in a short period of time, has become a benchmark and best in class.” “As part of the return service, we also have the capability for vendor pickups as well as for reverse pick-ups from online shoppers across Blue Dart Country,” concludes Ketan.

Bottom Line Worldwide apparel retailers understand their industry is in a continual state of motion, with today’s ‘standards’ soon to be replaced by ever-faster and efficient ways of operating. Smart retailers are embracing these changes, and recognise the exciting role technology is playing in enabling capabilities that have been unattainable in the past. Dr Achim Berg, Senior Partner at McKinsey & Company and Leader of McKinsey’s global Apparel, Fashion & Luxury Group remarks, “With volatility continuing as a megatrend for the years to come, fashion companies will need the ability to transform into agile organisations and have the courage to ‘self-disrupt’ if they are to emerge as winners. We expect the following areas to be the top three priorities for apparel companies in 2019: investment in omnichannel integration and digital strategies, increasing full-price sell-through, and improving customer experience (in stores and online).



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Our services Ready To Use Warehouses & Factory Sheds Available Across India On Lease More Than 20 Million Sq.Ft. Warehouse Space At Multiple Locations Across The Country National and regional distribution centers Specialized product storage and handling Conventional and high-density storage Warehouse management system integration On-site assembly and packaging services

Corporate Office: 130, Transport Centre, Ring Road, Punjabi Bagh, Delhi - 110035 Ph: +91 - 11 - 45970200 |Fax: +91 - 11 - 28316533 Email: warehousing@omlogistics.co.in Website: www.omlogistics.co.in Contact Us: 9811681184 | 9953622722

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OM TRAX Relocation

cover story

India betting on

Warehousing Boom

20 CargoConnect - may 2019

cover story Driven by the demand in manufacturing segment, and need for storage of raw materials and finished products, the warehousing industry in India has evolved significantly. From the cluster of warehouses outside Delhi to Bhiwandi and Pune in Maharashtra, to the Sriperumbudur-Oragadam cluster on Chennai’s outskirts, to the JeedimetlaMedchal cluster near Hyderabad, the race to secure warehousing space near hubs of demand is manifesting in corridors of large and modern warehouses. Even smaller cities such as Ahmedabad and Pune are seeing a mushrooming of such facilities. Upamanyu Borah

may 2019 - CargoConnect


cover story



Asia and India in particular, stands out as areas where warehousing foresees enormous potential for growth. In fact, Asia represents one-third of global Gross Domestic Product (GDP) and is expected to account for two-thirds of global growth over the next five years. Real GDP growth over the last two years has averaged 7 percent, the highest rate among the largest economies in the world. In India, bold structural reforms, such as implementation of the Goods and Services Tax (GST), other government policies, setting up of a new Logistics Division have improved processes. Enormous growth in the E-commerce segment is adding to the development in logistics and warehousing sector. The very first headway made, was around the government’s decision to give logistics and warehousing sectors infrastructure status in 2017. This greatly gives a much needed fillip to this marginalised sector, thereby spawning interest from some of the biggest players who are keenly looking to invest in it. Many of them looking to invest over 2 billion US$ into creating mega warehousing spaces in India, as the warehousing sector gears up for transitioning through a revolutionary phase. Besides, there are many factors, at the micro and macro-economic level that are coming to play, making warehousing an attractive proposition for investors looking to leverage the significant tailwinds witnessed around it. In fact, the growth prospects for warehousing is so favourable, that as per recent re-

22 CargoConnect - may 2019

The growth prospects for Warehousing is so favourable, that as per recent reports significant investments are being made in the tune of US$ 8 to 9 billion, for creation of warehousing facilities across the country over the next two years. ports significant investments are being made in the tune of US$ 8 to 9 billion, for creation of warehousing facilities across the country over the next two years. This in turn would result in creation of over 20,000 jobs at different levels of specification and specialisation. From the developer’s point of view the sector seems promising, as very little adjustments to the physical structure are needed to transform a warehouse to a manufacturing space. Hence, developers are increasingly moving ahead with speculative spaces to cater for either need. Also, an interesting trend that is being witnessed in this space is that - Ecosystems are being built around warehouse and the likes, i.e. residential, hotel, exhibition centre etc. so that goods can be displayed.

According to ‘India Industrial and Logistics Market View, H2 2018’, by CBRE South Asia Pvt Ltd, the overall space take-up in the logistics and warehousing sector crossed 24 mn sq ft in 2018 – an all-time high. Recording a growth rate of more than 40 per cent compared to 2017, the report said that implementation of GST led to far reaching implications on industries, more so in the warehousing and logistics sector. Overall in 2018, Mumbai, followed by NCR, Bangalore and Chennai dominated leasing, accounting for more than 70 per cent of the space take-up. The second half of 2018 witnessed robust leasing activity with about 14.3 mn sq ft of space take up, a 46 per cent increase on a half-yearly basis. Mumbai dominated leasing activity with a share of about 21 per cent, followed by DelhiNCR (20 per cent) and Chennai (16 per cent). Greenfield projects or new developments attracted more than two-third of these investments followed by 27 per cent for acquisition of complete projects. Private equity and venture capital firm’s interest in warehousing space is also brisk as indicated by a five-fold jump in investments in the segment. Warehousing is attracting foreign players and there have been multiple initiatives associated with large investments within this segment, clearly underscoring the upcoming trend. With many players investing, there could be higher supply and the rent escalation will be critical.

cover story

How Warehousing is changing

grade a and b warehouses: how supply increased in top 8 cities


Warehouse space (mn sq ft)

















2021 Source: JLL

Warehouse consolidation, from multiple facilities to a few large centres Institutional investors making a beeline for the sector

Tectonic shift in industry, from fragmented, unorganised players to large organised ones

Pruned inventory carrying costs for major companies

Automation and smart warehousing solutions in operations

Source: Knight Frank

More power to the warehouse, from just storage to providing value added services

Projected Investments: Warehousing

Figures in ` crore. Source: JLL



cold storage

agri storage

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cover story Yogesh Shevade Senior Director, Head – Industrial Transaction, JLL Auto sector is growing continuously in the same pace as economy and increasing income level. As a result, existing players are planning to optimise/increase production capacity, launch new and improved models, and higher interest from a number of global brands to capture Indian market is also apparent. FMCG and retail segment is spreading its consumer reach to all urban centers and also rural areas.

actors driving growth Demand from 3PL, E-commerce and retail sectors These sectors are the largest demand drivers of warehousing space. The expansion would also be seen in inland container depots which offer services for handling and temporary storage and warehousing of import and export laden and empty containers, carried under customs control. Agriculture Logistics, cold chain management, etc. is opening up opportunities for large warehousing and logistics infrastructure. A wide range of warehousing infrastructure including private, common warehousing, specialised warehouses, cold storages and free trade warehousing zones and logistics parks will come up in the coming years. “Among sectors, E-commerce, auto and auto-ancillary, third party logistics (3PL) companies and retail/FMCG accounted for around 60 per cent of the absorption in 2018,” points out Yogesh Shevade, Senior Director, Head – Industrial Transaction, JLL. “3PL is gaining its momentum due to infrastructure boost, removal of state boundaries in terms of state taxes, open-

A wide range of warehousing infrastructure including private, common warehousing, specialised warehouses, cold storages and free trade warehousing zones and logistics parks will come up in the coming years. 24 CargoConnect - may 2019

ing up multimodal connectivity and growing urbanisation escalates future potential of logistics companies. E-commerce is emerging as a big boom for wa rehou si ng needs due to change in life style, brand censuses and increasing internet and smartphone penetration, not only in major cities but Tier II & III cities as well, where people have limited access to brands but keeps high aspirations. Auto sector is growing continuously in the same pace as economy and increasing income level. As a result, existing players are planning to optimise/ increase production capacity, launch new and improved models, and higher interest from a number of global brands to capture Indian market is also apparent. FMCG and retail segment is spreading its consumer reach to all urban centers and also rural areas. National and international brands are gaining popularity amongst consumers. Increasing income base with higher disposable income supports high growth potential for both the segment,” says Shevade. Absorption by






Auto & Ancillaries






According to Shaishav Dharia, Regional CEO, Lodha Group, “The biggest growth driver for increasing demand is the consistent increase in rural and urban consumption. Companies are investing in expanding manufacturing capacity while also setting up wider distribution networks across the country. Alongside, there are large investments in organised retail and E-commerce space to meet the broad-based consumer demand, which has further increased the demand for Grade A Industrial Real Estate in India.”

Growth across Tier II cities Industrial growth is going out of cities and the peripheral locations of Tier I and II cities are expected to be the prime beneficiaries of the new wave of growth in warehousing. These cities are strategically located to be in proximity to other major markets and allow transportation to happen to their feeder locations in less than 6 hours. Further, these cities provide favorable policies for set up of businesses and have high manufacturing potential. “The demand is emanating from all across with mega metros leading the

cover story pack. Delhi-NCR, Mumbai and Bangalore are at the forefront of it,” states Sandeep Chadha, Founder & CEO, Warehouster Capital Advisors India Pvt Ltd. “We are seeing the mushrooming of the logistics hubs in the peripheries of these key markets. Alongside, Hyderabad, Chennai, Pune, Ahmedabad and Kolkata are adding up to the volume. These pivotal 8 markets account for the bulk of the demand with as much as 80 per cent of the pie. However, with the economy booming and newer Tier II cities enforcing their case, we are seeing a parallel story being written there. Cities like Lucknow, Jaipur, Coimbatore, Guwahati and Amritsar are some of the upcoming destinations,” says Chadha.

Ac c o r d i n g t o J a s m i n e Shaishav Dharia Singh, Senior Executive DiRegional CEO, rector- Advisory and TransacLodha Group tion Services, India, CBRE South Asia Pvt Ltd, “MumCompanies are investing in expanding bai dominated leasing activmanufacturing capacity while also setting up ity with a share of about 21 wider distribution networks across the country. per cent, followed by DelhiAlongside, there are large investments in organised retail and E-commerce space to meet NC R (20 p er c e nt) a nd the broad-based consumer demand, which Chennai (16 per cent). Delhas further increased the demand for Grade A h i-NCR, fol lowed by Industrial Real Estate in India. Mumbai, Bangalore and Chennai dominated space take-up, accounting for a Delhi-NCR (20 per cent) and Chennai share of almost 74 per cent. In H2 2018, (16 per cent), closely followed by Banthe overall demand for logistics and galore (15 per cent). Hyderabad and warehousing space was largely concentrated in Mumbai (21 per cent), Kolkata accounted for shares of 14 per

key trend expected in 2019

Cities that led demand in 2018

  Growth of the sector will be boosted by government initiatives such as Make in India and Digital India campaigns.   Strong leasing momentum is likely to continue throughtout the year; 3PL and e-commerce players are expected to drive demand for logistics space.   Key factors which are expected to drive demand across the country: consolidation and expansion by existing players and entry of new players.   Large and better-quality warehouses are more in demand; leasing trajectory in tier II and smaller cities likely to pick up.

share in 2018

share in 2018

share in 2018

share in 2018

  Indian logistics players are going to continue to adopt automation and robotics to revolutionize their operations.   In the coming year, foreign participation in the Indian logistics market is likely to propel the development of tech-enhanced warehouses across the country.   The sector is likely to observe increased levels of institutional funding and more formal sources of capital – prominent private equity firms and developers are already indicating interest to acquire land parcels across various locations. Source: CBRE India Market Monitor 2018/2019

26 CargoConnect - may 2019

cover story cent and 9 per cent in the overall space t a ke -up. T he c it ies of P u ne a nd Ahmedabad collectively held a share of 5 per cent. “Mumbai, Delhi-NCR and Bengaluru continue to be the most active transaction markets, and manufacturing locations like Pune, Ahmedabad, and Chennai are also adding thrust to the demand,’’ states Rajesh Jaggi, Managing Partner, Real Estate, Everstone Group. “In addition, Kolkata is quickly emerging as the next growth cluster, so are Tier II cities like Ludhiana, Kanpur and Coimbatore. Warehousing space in India’s top seven cities is esitimated to grow from 621 mn sq ft in 2016 to 839 mn sq ft in 2020,” says Jaggi. Shevade explains, “While Chennai and Ahmedabad registered significant demand from the manufacturing sector, Kolkata emerged as a major logistics hub due to its consumption and distribution

operations across every nook and corner of the country, there has been a corresponding rise in demand for space from these companies in both Tier I & II markets,” adds Shevade.

Sandeep Chadha Founder & CEO, Warehouster Capital Advisors India Pvt Ltd GST for one, has not only made One-Nation, One-Tax dream possible, it has catapulted the sector towards greater consolidation and enhanced throughput. The scale to minimise costs and to enhance profits is now available. Similarly, industry status to the logistics sector has made possible the smooth inflow of foreign institutional money. Ease to access in money allows superior state-of-the-art facilities in line with the global standards.

Undoubtedly, Bhiwandi, near Mumbai, is the largest warehousing market in the country in terms of the space for warehouses and attracting Grade A and B investments. It is closest to the largest port. However, the National Capital Region is becoming a hotbed to locate warehouses catering to North India. The spurt in demand has led to real estate prices and rentals rising in some regions, like that on Tauru Road and in Bhiwandi. The demand for quality warehouses is far outstripping supply at the moment. While new warehouses are coming online nearly every month, the supply scenario isn’t going to change

Mumbai, Delhi-NCR and Bengaluru continue to be the most active transaction markets, and manufacturing locations like Pune, Ahmedabad, and Chennai are also adding thrust to the demand.

advantage. Gurgaon NH-8 of NCR region; Bhiwandi of Mumbai; Chankan and Telegaon of Pune; Haskote of Bangalore; Irrungattukottai, Poonamalle and Sriperumbudur of Chennai; NH-6 of Kolkata; and Changodar and Bhayla of Ahmedabad are the few key clusters having investor’s interest and high growth potential.” “Apart from top cities, growing demand observed for warehousing space from tier II cities like Coimbatore, Guwahati, Lucknow, Jaipur and Ludhiana. With E-commerce players expanding

28 CargoConnect - may 2019

anytime soon. According to industry watchers, it could take nearly two years for the market to be flooded with enough ‘Grade A’ and ‘Grade B’ stock, the industry’s lingo for better warehouses. According to Dharia, “Industrial real estate segment in India has largely been unorganised and lead to formation of informal clusters around larger Government industrial parks or at vantage locations in the erstwhile tax regime to optimise local levies such as Octroi.” Dharia adds, “Demand has now shifted to strategic locations with good infra-

structure and connectivity for serving major consumption markets. Supply for such locations, especially in land starved cities like Mumbai is quite constrained and companies are willing to pay a significant premium to have their presence close to the key markets. Mumbai is also favourable for those operating a global supply chain, due to its status as the prime gateway port and airport for the country.”

Impact of Government policies The commitment of the government towards integrated development of the logistics sector through policy amendments, infrastructural development, tax reforms and technology adoption is certainly helping deliver desirable results. Further, it will enhance trade competitiveness, create jobs, shoot up India’s performance in global rankings and pave the way for the country to become a logistics hub. Shevade expresses, “Policy intervention both from central/state front is another driver to push investment attraction for investors. GST, Real Estate Investment Trust (REIT), Electronic Way Bill (E-way bill) and Automated Toll facility are the major pillars towards sustainable investment into the sector.” “The upcoming Industrial Policy, Aviation Cargo Policy, dedicated and focused team for the country’s logistic requirements would help to build investor’s confidence. Various government measures have been taken up to

cover story promote investments in the field of warehousing by modifying policies in order to ease land acquisition and also make land available for logistics under the newly formed logistics policies of various states; monetisation plan through unlocking various government lands, like those belonging to port, railways and highway authorities, through independent implementing agencies,” says Shevade. Singh expresses that the key initiatives by the government to reshape the industry include the single uniform tax, which has reduced price differences between states and tax liabilities across India. Sigh says, “The new structure has provided an advantage to companies as they can now make their decisions on supply chain management freely and solely based on operational efficiency. Further, the GST system, through its provision of the E-way bill has brought down check-posts at state borders, enabling faster and seamless movement of goods between states.” Further, Singh adds, “Another critical

initiative, which aims at providing integrated logistics network, includes dedicated freight corridors spread across 15 states for faster movement of freight and development of 35 logistics parks to cut transportation costs and enable swifter movement.”

Indian economy will need an efficient and fairly vast network of warehouses and logistics facilities. Being the market leader in Grade A warehouses, we are very positive about the sector. IndoSpace has taken its total commitment to India to well above US$ 3.2 billion and we plan to build a pipeline of 120 million sq ft of modern logistics infrastructure to support the growth and modernisation of India’s supply chain.

According to Chadha, “The government has implemented several key policy measures which have oiled the industrial and warehousing asset class towards momentum and on a growth trajectory. GST for one, has not only made One-Nation, One-Tax dream possible, it has catapulted the sector towards greater consolidation and enhanced throughput. The scale to minimise costs and to enhance profits is now available. Similarly, industry status to the logistics sector has made possible the smooth inflow of foreign institutional money. Ease to access in money allows superior stateof-the-art facilities in line with the global standards.”

Dharia believes that the Make in India initiative has set the direction for attracting large scale manufacturing for catering to the Indian market. “The focus has been on both, import substitution as can be seen for mobile phones, but also for increasing the capacity in existing domains such as FMCG, automobiles, pharmaceuticals, etc. Backend changes in the processes have also led to overall increase in ‘Ease of Doing Business’ rankings for India, which has boosted investor’s confidence. It is an

Various government measures have been taken up to promote investments in the field of warehousing by modifying policies in order to ease land acquisition and also making land available for logistics. 30 CargoConnect - may 2019

Rajesh Jaggi Managing Partner, Real Estate, Everstone Group

ongoing exercise and we are confident that the improving business environment will add further momentum to the investments and new capacity developments across sectors,” explains Dharia.

Role of Technology Warehouses are not just about storage anymore. They function as fulfilment centres, distribution centres, return centres, and at times as showrooms. Supply chain processes are under immense pressure to efficiently and effectively meet the growing demand within a stipulated time and cost. If the right product does not reach the right customer within the prescribed time then the company not just loses business but also reputation. As a result, warehouse floors are always under high pressure. It is therefore imperative to improvise on functional, technological as well as warehouse development aspects to efficiently handle these additional functions. Today’s warehouses need fewer operatives and hence, fewer line managers, because certain labour-reducing technologies have either made labour more efficient or eliminated it altogether. Technologies such as Warehouse Management System (WMS), Scanning Technologies, Voice Technologies and warehouse automation are gaining prominence. India’s warehousing technology market is growing steadily, with the upswing in demand from the thriving logistics, retail and manufacturing sec-

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cover story tors, as well as government promotion. As the booming manufacturing and retail sectors are the main users of these technologies, sustained demand from these areas is ensured. For instance, Wal-Mart made it mandatory for its suppliers to deploy RFID. The growth of India as a major sourcing nation for the world’s leading retailers is also ramping up demand. Until recently, the logistics industry was highly unorganised, comprising predominantly medium and small-sized LSPs. However, the trend is changing with the increase in the number of organised LSPs and improvement in the services offered by them through 3PLs and 4PLs. To obtain the cutting edge in the market, logistics and dedicated warehousing companies are adopting these technologies to improve warehousing and supply chain management. This enables them to achieve maximum warehousing efficiency. The Special Economic Zones (SEZs) established by the government for auto manufacturers, usually close to the ports, to cater to the growing demand in the automobile sector, provide manufacturers with dedicated as well as shared-user facilities wherein, two or more manufacturers share the warehousing services in order to cut down their supply chain costs. This has also increased the need for the use of modern technology such as RFID and WMS to track the goods in the warehouses. Amazon who is a known master at automat ion, repor tedly has over 1,00,000 robots installed in warehouses across the world. In India, it uses automation to measure operational efficiency and improve customer experience. Akhil Saxena, Vice President, Asia Operations at Amazon.in says that whenever a new product enters its warehouses, it goes through a cubiscan process that helps record its dimensions and details- height, length, width, weight. “This insight is what enables a packing associate use the right box to pack the product. It also prompts him when there is a product that is fragile, and needs special packaging,” says Saxena.

32 CargoConnect - may 2019

In one of the company’s fulfilment centres in Delhi, it has a 1.2 km long conveyor belt with colour based automatic sorting. Automation such as this is possible in larger warehouses. With the newer crop of Grade A stock coming online, automation is only headed north. Today, material handling equipment is available on rent. Things like this make the cost of automation cheaper. “Lot of optimisation will happen in labour because larger warehouses can use more automation. It would reduce manpower requirements significantly going forward,” asserts Saxena. “A one lakh sq ft warehouse now would have around 200-250 people. The number can vary depending on the type of goods being handled. Even partial automation can bring down manpower requirements by 20-25 per cent,” adds Saxena. 3PL companies, such as Mahindra Logistics, have therefore invested in WMS and Transport Management System (TMS) that provide visibility of goods shipped and its lifecycle, from FMCG companies to distributors. The use of fleet management software (pro-

India’s warehousing technology market is growing steadily, with the upswing in demand from the thriving logistics, retail and manufacturing sectors, as well as government promotion.

Jasmine Singh Senior Executive Director- Advisory and Transaction Services, India, CBRE South Asia Pvt Ltd In H2 2018, the overall demand for logistics and warehousing space was largely concentrated in Mumbai (21 per cent), Delhi-NCR (20 per cent) and Chennai (16 per cent), closely followed by Bangalore (15 per cent). Hyderabad and Kolkata accounted for shares of 14 per cent and 9 per cent in the overall space take-up. The cities of Pune and Ahmedabad collectively held a share of 5 per cent.

vides live tracking of goods), RFID systems for inventory identification and automated pallet storage is growing quickly, as is the number of start-ups aimed at bridging the technology gap, CBRE states in a report. Certainly, new trends are shaping the 3PL sector, says Sushil Rathi, Chief Operating Officer, Mahindra Logistics Limited. “The industry is moving towards technology led innovations, which is resulting in better visibility and transparency. It is also moving from a cost plus model to a variable pricing model. Today, customers are increasingly looking at end-to-end offerings from warehousing, to secondary distribution,” states Rathi. “The Indian market for warehouse automation is projected to grow at a CAGR of 10-12 per cent to touch $3.49 billion by 2020. The widespread deployment of IoT would revolutionise operations by creating smart warehouses that improve supply chain efficiencies,” points out Singh.

cover story Akhil Saxena Vice President, Asia Operations, Amazon.in Lot of optimisation will happen in labour because larger warehouses can use more automation. It would reduce manpower requirements significantly going forward. A one lakh sq ft warehouse now would have around 200250 people. The number can vary depending on the type of goods being handled. Even partial automation can bring down manpower requirements by 20-25 per cent.

uture Outlook We have already witnessed a great deal of investments during 2018 and this trend is only likely to gain momentum going forward. An anticipated increase in demand from manufacturing companies will spur supply of quality warehousing, which is likely to lead to emergence of new warehousing hubs as well as expansion of the existing hubs. An improving domestic economy and legislative reforms have been encouraging an increasing number of foreign firms to establish their manufacturing bases in India. Warehousing and food storage service providers have expressed particular interest in serving the growing industry needs of the country. The entry of multiple global brands may help raise the existing technological know-how in the field here to global standards, and create more employment opportunities in the sector.

Undoubtedly, Bhiwandi, near Mumbai, is the largest warehousing market in the country in terms of the space for warehouses and attracting Grade A and B investments. It is closest to the largest port.

34 CargoConnect - may 2019

Sushil Rathi COO, Mahindra Logistics Ltd New trends are shaping the 3PL sector. The industry is moving towards technology led innovations, which is resulting in better visibility and transparency. It is also moving from a cost plus model to a variable pricing model. Today, customers are increasingly looking at end-toend offerings from warehousing, to secondary distribution.

Shevade asserts, “Indian Economy is now shaping up as one of most favoured investment destination for investors. The perception of Indian consumers along with sustainable GDP growth exhibits internal strength of the economy, and suppliers are taking up necessary measures to reach door step of consumers within reasonable time and also control in-transit deterioration of product quality. As a result, warehousing is gaining its due importance in the overall logistics chain and product supply chains. To achieve the objectives, warehousing space requires quality with maximum standards on material handling facilities along with safety and security at the right location, providing hassle-free passage to its consumers with minimum time loss.” “Governing laws are the determinant in development plan for every developer, as it is the driver for efficient material/vehicle handling, inclusive of volumetric storage space with ensuring adequate storage environment. Though India has not reached the peak of full automation, the future potential is not far. Innovation in material handling and storage environment is at the door steps and about to enter. The proposal to set up a separate department for Fisheries and an integrated approach for all perishable products in processing, preservation, packaging and maintenance will help in consolidating the cold chain and temperature controlled warehouses across the country. This will result in transforming the fragmented, unorganised segment into an organised one,” observes Shevade.

Chadha says, “The fundamentals are strong and augurs for a well-laid-out growth realm. The demand is steady and is growing; the supply is catching up and is heading towards more globally compliant facilities. So for both, near as well as long term, we can expect the momentum to continue. The onus then lies in meeting the customer’s demand, in adopting technology and prudence in selecting the logistics hubs to be invested into. The key markets of NCR, Mumbai and Bengaluru will continue to hold sway. At the same time, up and coming cities needs to be nurtured to accommodate the burgeoning demand.” “Indian economy will need an efficient and fairly vast network of warehouses and logistics facilities. Being the market leader in Grade A warehouses, we are very positive about the sector,” says Jaggi. IndoSpace has taken its total commitment to India to well above US$ 3.2 billion and we plan to build a pipeline of 120 million sq ft of modern logistics infrastructure to support the growth and modernisation of India’s supply chain. Dharia says that they have seen consistent investments coming to the Grade A developments in major markets over the last few years and this trend is likely to continue in the coming years. “From our perspective, we are looking to leverage the overall ecosystem in Palava, its location within MMR and proximity to the port and airport by providing the best platform for companies looking to set up their large scale facilities in Mumbai,” states Dharia.


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How far would India’s

air cargo market spread wings?

The National Civil Aviation Policy 2016 document by government set the vision to reach cargo volumes of 10 mn tonnes by 2027. To achieve this vision, cargo industry needs to grow at a rate of 12.9 per cent every year from 2018 to 2027. Except in FY’17 and FY’18, the growth rate in air cargo industry has never been in double digits for the past one decade. Therefore, there is an urgent need to uplift the Indian cargo market to achieve the overall vision of the aviation ministry. Ajeet Kumar in conversation with industry leaders, tries to anticipate the immediate actualities of India’s ‘air cargo market’ and the related ‘air cargo infrastructure’ that would drive the dream.

The Growth Story The Indian air cargo industry is in the process of aligning itself with global developments and taking up crucial issues such as infrastructure. Recently, the government also unveiled its much-awaited national air cargo policy, which seeks to make India among the top five air freight markets by 2025, besides creating air transport shipment hubs at all major airports over the next six years. India is the leading international freight market in the sub-continent, which also comprises Afghanistan, Bangladesh, Bhutan, the Maldives, Nepal, Pakistan and Sri Lanka. The idea of India being a global hub for cargo services and international freight traffic, propelling the country into the league of Dubai or Singapore, may sound grandiose. However, industry experts believe that even before this dream takes shape; it will be the domestic need which will fuel the growth of Indian cargo industry. With a huge young population in the domestic market and improving trade relations with

36 CargoConnect - may 2019

other countries, the potential for air cargo business both domestically and internationally looks very good at the moment, at least for the next ten years.

Ground Forecast P Balasubramanian, Founder & CEO, Air Cargo Consultancy International Services (ACCIS) is counting on the potential India has to develop its large domestic air freight market, apart from being one of the largest international air trade hubs. The need of the hour is to optimise the use of the available infrastructure and bring in efficiency in processes, use technology such as e-freight and other digitalisation initiatives. Balasubramanian shares a top priority, “Trade continues to deliver the majority of their export cargo only

feature around and after 3 pm to major air cargo terminals, directly contributing to sustained inefficiency. This issue needs to be seriously addressed by all stakeholders. We still are shy to even consider optimal utilisation of real estate within a cargo terminal by insisting on physical bifurcation of exports and imports areas. Parcels don’t walk or move unless a human being makes them move. We need to change our mindset of not allowing an import package stored next to the export package as long as it is ensured that the area is sterile from security and customs perspective. This is one of the critical features of successful and efficient air cargo terminals globally. If we don’t dare to think and act positively, attaining our growth goals will continue to be challenging.” Reports say that India is expected to sustain double-digit growth in freight traffic for a major part of the time period till 2027, buoyed by the fact that it is one of the fastest growing economies

of the world and driven by factors such as increased demand from the E-commerce sector, lowering costs (principally due to dip in crude oil prices) and considerable focus of the policy establishment on the logistics sector among others.

Inclusion of all relevant stakeholders in the Single Window System, adoption of the same by stakeholders, seamless operations/ avoidance of breakdowns, etc. would be essential in achieving paperless transactions at all levels.

However, Afaq Hussain, Director, BRIEF says that to achieve a steep target of 10 mn tonnes of cargo volume handled by 2027, there need to be concerted efforts from all relevant stakeholders. Capacity augmentation of existing air cargo terminals as well as the introduction of new cargo terminals would be the key to handle increased volumes. Further, the entire supply chain needs to be analysed for stage/custodianwise dwell time, operational bottlenecks and procedural impediments, to iron out issues faced on the ground and subsequently bring down TAT and costs in a phase-wise manner. Afaq feels that the extent of digitisation would also be a key determinant of the realisation of the government’s with respect to air cargo. “Inclusion of all relevant stakeholders in the Single Window System, adoption of the same by stakeholders, seamless operations/avoidance of breakdowns, etc. would be essential in achieving paperless transactions at all levels. As far as compliance aspects are concerned, 24X7 customs operations along with efforts by the trade towards clearance of cargo on around the clock, along with required manpower enhancements basis, is imperative. Cargo handling needs to be consistent, wherein the role of all relevant stakeholders becomes crucial,” says Afaq.

Of similar opinion, Balasubramaniun believes that the industry must truly get rid of its self-imposed shackles. Besides, the industry needs continued support from enabling key regulatory agencies, particularly customs on all aspects of their interaction. The country has everything economically going well set to sustain high growth for the next decade despite global glitches, be it US-China trade dispute or Brexit, and so on. When trade grows at that rate, there is no reason for air cargo to fall behind.

What needs to be done? Increased trade activity, especially physical goods with the AsiaPacific region has opened new opportunities for air cargo market in India. As domestic cargo market matures, the need for cargo handling capacity at Tier II and Tier III airports is going to rise. Therefore, pro-active measures need to be undertaken to identify Tier II and Tier III cities where common user domestic cargo terminal (CUDCT) should be established. Airports Authority of India (AAI) has already established CUDCT at Coimbatore, may 2019 - CargoConnect



For the air cargo industry in India to grow at the desired ambitious rate, official recognition at the national level from the government is essential. It is in place through set up of Logistics Division under the Ministry of Commerce. Next, a cohesive pragmatic policy like the NACP is critical.

The entire supply chain needs to be analysed for stage/ custodian-wise dwell time, operational bottlenecks and procedural impediments, to iron out issues faced on the ground and subsequently bring down TAT and costs in a phase-wise manner.

P Balasubramanian

Afaq Hussain

Founder & CEO, ACCIS (Air Cargo Consultancy International Services)

Director, BRIEF

Jaipur and Lucknow airports. Such cargo hubs need to be promoted in other Tier II and Tier III airports with dedicated terminal space and facilities for express airlines as required. Balasubramanian observes that the National Air Cargo Policy outline, unveiled during the Global Aviation Summit at Mumbai this January, has tried to address most of the issues positively and pragmatically. However, there is a strong underlying overall ‘control’ mechanism in the industry, much more than what security and customs related requirements demand. “We must take full advantage of our country’s strategic location connecting Australasia with Europe, Middle East and Africa. The much-awaited policy on truly enabling ‘transshipment’ needs to be implemented right away,” says Balasubramnian. Delhi Airport has decided to upgrade, develop and construct facilities to expand cargo terminal capacity to 2.2 mn tonnes per annum by 2034. Other international airports/cargo terminal operators (CTOs) should also initiate such plans to increase freight carrying capacity and improve connectivity. Standard Operating Procedure (SOP)s and optimal service guidelines with fixed timelines for performing on ground functions need to be defined for CTOs. Afaq states, “With the air cargo segment poised to

38 CargoConnect - may 2019

witness considerable growth in the coming years, the importance of a dedicated policy on air cargo handling cannot be overemphasized. There is need for standardised SOPs in the sector, and a policy document on air cargo would go a long way in providing a necessary framework for target-based capacity enhancements, streamlined operations and mandatory compliance by all stakeholders.”

Pro-active measures need to be undertaken to identify Tier II and Tier III cities where common user domestic cargo terminal (CUDCT) should be established.

“To begin with, for the air cargo industry in India to grow at the desired ambitious rate, official recognition at the national level from the government is essential. It is in place through set up of Logistics Division under the Ministry of Commerce. Next, a cohesive pragmatic policy is critical — the NACP from MoCA as an outline now and likely to be released soon,” says a hopeful Balasubramanian. But, the most critical challenge among all is the sustained professional implementation of such a policy. Unfortunately, it faces a high level of inconsistency in this area, at times between two cities or two different sets of officials or on two different occasions as well. “We must focus on optimal use of the available infrastructure while simultaneously creating more infrastructure with resource optimisation and efficiency as their basic governing principles. The MoCA, having taken several positive steps to actively promote air cargo would do well to bring

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Making Air Cargo affordable is an objective and a challenge we have, for internal freight movement as well as for external freight. The initiatives of Customs with SWIFT and ICEGATE have facilitated improved efficiencies at airports and ports.

The appointment of an Additional Secretary rank officer as Economic Adviser in the Ministry of Civil Aviation (MoCA) to look after the cargo business shows currently the wind is blowing in right direction.

N Sivasailam

Tushar Jani

Special Secretary (Logistics), Department of Commerce, Government of India

President - Air Cargo Forum India (ACFI) and Chairman - Cargo Service Center India Pvt Ltd

in this segment too into policy recommending body, Air Cargo Logistics Promotion Board (ACLPB). We should leverage regional expertise in this area both in the Middle East and countries to our East/South East,” feels Balasubramanian.

which is visible in its performance in the Logistics Performance Index and Ease of Doing Business Index. Afaq adds, “Also, with the government focusing extensively on air cargo handling, considerable improvements in infrastructure and processes are expected shortly. However, awareness regarding policy initiatives among stakeholders, active participation of stakeholders in policy implementation in a coordinated manner, consistent monitoring of progress and independent review (Time Release Study, Qualitative Appraisals, etc.) of all stages of the supply chain will be key to achieving the envisaged goals.”

Here, Afaq points out that measures such as periodical meetings – with participation from the policy establishment as well as the stakeholders – conducted by the ACLPB can go a long way in ensuring consistent monitoring of progress and achievement of targets by stakeholders in a time-bound manner.

Final Destination Development of logistics will determine the growth of the cargo industry. Absence of adequate facilities such as refrigerated trucks and warehouses needs immediate attention. Perhaps, the development of the same will see air cargo traffic moving from limited, low-volume products to high-value products such as garments, pharmaceuticals and perishable products. With the policy establishment putting substantial thrust on logistics efficiency, India has improved its position considerably in the area,

40 CargoConnect - may 2019

The required is, more support from the stakeholders in enhancing process efficiency, productivity, embracing digital techniques, and intensive interaction and contribution at the global level.

“Our ambitions are in the right direction. Government has shown the will and action to create the required conducive environment at the policy level,” says Balasubramanian. However, Balasubramanian mentions two big challenges that stare – consistency in implementation, the mindset of certain regulatory authorities who still do not see their role as complementing and partnering the industry, but as supervisory. The required is, more support from the stakeholders in enhancing process efficiency, productivity, embracing digital techniques, and intensive interaction and contribution at the global level. Most importantly, Subramanian feels that as a huge resourceful nation, instead of being so content in merely following global regulations, India should be at the forefront to ‘create, influence and enhance’ such global regulations. Further, until air cargo education is part of any University curriculum, a strong awareness and thus keenness to join industry will be a distant dream. “An industry full of people who entered it by accident; in such a case professionalism is only a hope rather than being a plan,” sighs Balasubramanian


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forwarders need to buckle up in a softening market Freight forwarders in India must cease acting as ‘mom-and-pop shops’ as they face industry disruption from ocean carrier consolidation, automation and a tax system overhaul. Forwarders are working hard to manage the obstacles and leverage the opportunities. Many are increasingly offering robust integrated solutions, facilitating end-to-end cargo delivery processes, enabling exporters to focus on their core competencies. Upamanyu Borah

42 CargoConnect - may 2019


may 2019 - CargoConnect





freight handling capacity of Indian ports

The current modal mix for cargo transportation is sub-optimal and skewed towards roads, which accounts for about 60-65 per cent of the total freight transported. Growth in freight traffic has almost plateaued at 0-1 per cent, with the rail modal share declining to 30 per cent. Indian ports have a freight handling capacity of over 1,700 mn tonnes. Of the total freight handled at ports, major ports account for a 57.19 per cent share, while non-major ports account for a 42.8 per cent share. Air freight contributes a mere 1 per cent in the total cargo movement in India, moving around 35 per cent of the total shipment value. railways - Bharat Mala, Setu Bharatam, disCoastal and inland waterways lack dedicated infrastructure and thus remain trict connectivity, Sagarmala, port-rail largely untapped for movement of connectivity, 106 national waterways freight. With just 0.6 per cent of Indevelopment - have been a ndia’s freight transported through nounced by the government, the inland waterways route dewhich will directly benefit the spite vast network of rivers freight industry in future. across its geographical corThe Ministry of Railways ner that form about 20,000 has also identified additional dedicated freight corrikm of navigable waterways, dors - North-South Corrithe need for developing additional National Waterdor (Delhi-Chennai); EastThe challenge for India, with no direct or very limited freighters to way is essential. West Corridor (Kolkatamany countries, is also dependent upon freighter capacity between Mumbai); and East Coast all ports the line haul is transiting through. The composition of exports from India has less freight compatible to a freighter. Most Market Forecast Corridor (Kharagpur-Viof India’s airfreight exports include generic pharmaceuticals, jayawada) - for implementagarments, leather goods, and these can be transported The industry structure overtion in the coming decade. using wide bodied passenger airplanes. all is highly fragmented, with The overall outlook of the K Narayanankutty unorganised players accountfreight industry in India is very Head- Airfreight - India, DHL Global ing for the largest share of busibright. However, to handle the Forwarding ness. A shift from pure transportagrowing traffic, significant investtion business to end-to-end service ments need to be made for expanding, providers has emerged, thereby facilitatmoderniising and upgrading infrastrucing growth of third-party logistics (3PL) and ture, deploying advanced equipment and supply chain management industries in India. technology, and setting up of new storage and The rising scale of freight transportation has further encourtransit facilities. aged a trend towards outsourcing non-core activities like logistics, warehousing, and associated activities to integrated players Changing Trends which has increased the share of the organised segment. Trends in the global airline industry also impact the Indian Six major projects in roads, ports, inland waterways and airfreight forwarding market. One is the shrinking number of wide-body planes. Large-size wide-body airplanes accounted for 11 perc ent of the in-service fleet in 2016, down from 36 per cent in 1995, according to Boeing's Current Market Outlook, 2016-2035. Many freight forwarders are fighting for space in the same narrow-body planes. For instance, rolls of carpet that would fit easily on wide-body passenger planes now move via cargo planes. That's a concern, as most airlines' flight routes are determined by passengers, rather than cargo. In addition,

With just 0.6 per cent of India’s freight transported through the inland waterways route, the need for developing additional National Waterway is essential.

44 CargoConnect - may 2019

1,700+ mn tonnes % share of major ports

57.19 per cent

% share of non-major ports

42.8 per cent

feature when shipping a large volume of available.” goods, keeping all units toBesides, the challenge for gether is preferable. That beIndia, with no direct or very comes more difficult on limited freighters to many narrow-body planes. countries, is also dependent Airline consolidation upon freighter capacity between all ports the line also impacts the Indian airThe industry in India is still fragmented, and some companies do freight forwarding indushaul is transiting through. not have a national or global presence. Encouraging the growth try, as it usually leads to “The composition of exof the organised sector within the market will help improve ports from India has less fewer routes. That cuts carthe overall profile and efficiencies. Also, it’s important for go space and has prompted freight compatible to a freight forwarders, to focus on internal efficiencies and some shippers and airfreight freighter. Most of India’s productivity through operational excellence, technology, forwarders to rely on multiple airfreight exports include and innovation. carriers and stock inventory in generic pharmaceuticals, garMadhav Thapar ments, leather goods, and these different places. Vice President - South Asia, can be transported using wide K Narayanankutty, Head- AirC H Robinson freight - India, DHL Global Forwardbodied passenger airplanes,” exing says, “The declining trend in the presses Narayanankutty. number of freighters in circulation over the Stating a relevant issue, Narayanankutty says, “We have had to move some metro past few years is well-known. The impact of this coaches from Mexico to Chennai, we had to make has been significant on transporting heavy engineering, large electrical components, airplane engines and medical arrangements to transship this freight from Hong Kong between two different airline operators.” equipment like full body scanners. The dwell time of these “The approach of airlines to use wide-bodied aircraft to goods at origin and destinations have significantly gone up feed cargo to their hubs to consolidate them on to freighter because they need to wait for the day when there are freighter and transport it to the main gateways is another approach operations. At times, such situations demand these goods to be being taken, but it comes with limitations. These situations trucked to certain ports from where freighter operations are


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feature have increased the dwell time of freighter cargo, increased the transit time and cost of transportation. At times, within intraAsia, ocean freight is considered to mitigate these impacts,” adds Narayanankutty. Freight forwarders had been ‘squeezed on both sides’: a reduction in the number of shipping lines and strengthening freight rates. Customers are still not willing to shell out on the increased freight levels and shipping lines are reluctant to drop prices, so yields have come under significant impact. This is very challenging in India and has led to many businesses folding – companies that had been in operation for 50 years or more have not been able to survive with such low yields. Madhav Thapar, Vice President - South Asia, C H Robin-

Customers are still not willing to shell out on the increased freight levels and shipping lines are reluctant to drop prices, so yields have come under significant impact.

help a great deal in terms of which type of freight contracts and rate negotiations one must enter into with the shipping service provider,” asserts Vohra.

Real-time Challenges

With initiatives such as Ease of Doing Business, Make in India, Digital India, Single Window Clearances, etc., is the Indian freight forwarding sector actually receiving any relief? It is well understood that freight forwarders from the nation have had challenging times before due to many reasons. However, son is of the opinion that increased operating costs and dropefforts thrown in by private and public unit players have ping yields were some of the economic drivers that led to promised inputs for exports and imports, which shall smoothen functioning of freight movements in future. carrier consolidations. “Some view the consolidations as Despite the progresses in India’s freight forwarding induscreating supply constraints and higher freight rates, on the try of logistics, we cannot fail to notice the major problems other hand, it could bring a greater capacity to invest in technology, operate larger vessels, and offer more predictable that currently plague it. schedules,” says Thapar. Lack of Infrastructure- Even in the Union Budget 2019-209, “From the freight forwarder perspective, opportunity lies a lot many initiatives were introduced for honing logistics in providing comprehensive solutions through end-to-end infrastructure. However, it is true that such projects are timelogistics,” believes Thapar. intensive and by the time these are completed, the freight Vipin Vohra, Chairman, Continental Carriers Pvt Ltd beforwarding agents and companies succumb to the deficiency lieves that the rapid unpredictability in shipping trade of infrastructure. The major concern is shortage of occur in the form of fluctuation of available connectivity to airports, roadways, terminals, shipping capacity and price. Vohra says, freight stations etc “Before and during peak trading seaEarlier this year, Bibek Debroy-led son, there is a huge demand for Logistics Development Committee space on ships which in turn will has suggested creation of an independent logistics department increase ocean freight rates. within commerce ministry Similarly, during low demand, entrusted with the responsithere is excess availability of bility to develop a national space which causes freight logistics plan with a long rates to drop.” term perspective (five to 10 However, with local year) and yearly operationshippers experienci ng The rapid unpredictability in shipping trade occurs in the form al plans with constant regradual increases in adof fluctuation of available shipping capacity and price. One can view and monitoring. hoc freight rates, one poalways be in a win-win situation by understanding business tential side-affect – and an T he commit tee had needs as it can help a great deal in terms of which type of upside for forwarders – is asked the Government to freight contracts and rate negotiations one must enter the trend towards long-term reduce rail freight tariff into with the shipping service provider. contracts. structure (both slabs and absolute tariff rates) and rational“One can always be in a Vipin Vohra ise at least on select pilot routes win-win situation by underChairman, Continental Carriers standing business needs as it can like Delhi-JNPT, Delhi-Mundra, Pvt Ltd

46 CargoConnect - may 2019

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feature etc. and facilitate running of timethe wave of digitisation. Most other tabled freight trains for some small to medium forwarders will select pilot rain routes to proneed to tie-up with digital vide trade superior rail transfreight market-places to ensure port services and arrest the they can accelerate into the fall in its freight modal mix. future or be risked being left Outlining the need for behind,” expresses Katgara. Besides, the basic issues of infrastructure, differences in supporting the truck indusExcise Policies and Cusexcise policies and customs procedures, and inadequate try, the committee had sugtoms- Differences in excise use of technology, large credits being given and rampant gested the government to policies and customs harshly bad debts are the complex hurdles that the new players amend the existing regulaaffect both importers and exare facing in the freight forwarding segment, as the tions to make road transport porters. If this can be improved, market already has been spoilt in this respect. experience seamless and effithen function of freight forwardcient and incentivise trucking ing agents will ease down. Due to Sam N Katgara industry to move towards formal stringent regulations at various Partner, Jeena & Company and organised operators. The commitstages of cargo movements, time and tee has asked the government to intromoney are wasted, and greater are the duce the one nation, one permit, one tax complaints from traders, customers, etc system and amend the provisions of the Motor Highlighting the challenges pertaining to Transport Workers Act to incentivise trucking industry to trade facilitation at the border, Bibek Debroy-led Logistics Development Committee suggested doing away with increase its scale and size. physical examination, to be resorted only in exceptional cases, Inadequate Use of Technology- Though traditional forwarders have become adept at juggling details, they are unable to and shift towards fully facilitated ‘trust-based’ clearance process. The committee had asked to create a fully automated provide the same level of visibility as those offering a digital paperless trade environment, set up a single window digital experience. For customers who truly prefer a manual system, portal integrating all stakeholders and monitor key outputs accommodation may be made, but it's far easier to go backward across all major trade gateways. on occasion than refuse to go forward for the majority. Global Business Scenario- India’s export-import trade has A recent survey by online freight-marketplace provider taken an impact due to weakened demand in key developed markets such as that of the US and Europe. Because of economic challenges and political instability in European Union (aggravated by Brexit), has somehow also affected the logistics front of India. The freight forwarding business has thus become fragile in a way that hardships in emerging markets has slumped the trade.

A recent survey by online freightmarketplace provider Freightos revealed that just 1 of the top 20 global freight forwarders could provide an instant quote online for an anonymous prospective client.

Freightos revealed that just 1 of the top 20 global freight forwarders could provide an instant quote online for an anonymous prospective client. From load boards to Big Data-enabled route or rate calculators, new technologies promise to improve access, reduce delays and increase visibility for those who choose to use it. “Most of the forwarders lack an overall vision and compelling plan for digital adoption. However, various players from across the spectrum (including both traditional logistics players and new entrants) are adopting digital technology to provide seamless, end-to-end services,” says Sam N Katgara, Partner, Jeena & Company. “If the business model of these forwarders succeeds, competitors run the risk of losing direct contact with some of their most profitable customers, primarily the small and midsize freight forwarders,” believes Katgara. “Most of the multi-national forwarders are looking at making acquisitions in 2019 to increase their market share and improve their freight tech solutions as they look to benefit from

48 CargoConnect - may 2019

Challenges faced by New Players The challenges faced by new players in the Indian freight forwarding market are many. “Basically, from finding skilled man power to build a team of talented individuals, determining the best option with best rates- the most time-consuming exercise, documentation, delays, safety and tracking of the shipments, and surging fuel prices, tops the list,” says Vohra. Thapar jots down four key quantifiers:  Differentiation- Today, many customers question what differentiates a company from the rest. Continuous innovation and evolution have become imperative to stay pertinent in the industry. As a corollary, commoditisation of the standard products has made the differentiation question even more relevant.  Volatility- Trade wars, economic policy shifts, political developments, and security incidents have increased volatility in the freight market place. Despite unpredictability in the industry, many customers are increasingly looking for stability and predictable costs.  Human Resources - The industry is still under resourced in terms of qualified talent.

feature  Building a Network –Many shippers have high expectations of on-time freight arrival, or it could cause a ripple effect of disruptions in their supply chain. There is an increasing focus on delivery and not just dispatch, and this is where established organisations with a global network have an edge. Here, Katgara feels that, besides, the basic issues of infrastructure, differences in excise policies and customs procedures, and inadequate use of technology, large credits being given and rampant bad debts are the complex hurdles that the new players are facing in the freight forwarding segment, as the market already has been spoilt in this respect.

warding part within the perimeters of the airports, which is disappointing. The new policy needs more liberalisation to empower freight forwarders to tender cargo ready for uplift to airlines,” adds Narayanankutty.

Futuristics Solutions

Looking ahead, forecasts are mixed, though the overall outlook of India’s freight forwarding industry in India seems to be bright. However, to handle the growing demand, significant investments need to be made for expanding, modernising and upgrading infrastructure, deploying advanced equipment and technology, and setting up of new storage and transit facilities. On the Move “The industry in India One of the major factors is still fragmented, and behind un-competitivesome companies do not ness of Indian products in have a national or global The ‘National Air Cargo Policy Outline 2019’ has commendably the international markets presence. Encouraging the addressed the key issues that make our air freight very expensive. is huge logistics cost due growth of the organised To ensure faster, smooth, time bound and transparent to high transaction time sector within the market cargo operations, the ‘Policy Outline’ has intended to fix and transaction cost. Unwill help improve the overresponsibilities in the value chain (both private and doubtedly high logistics all profile and efficiencies,” government organisations), end-to-end. cost makes domestic goods feels Thapar. costlier in the international Further, Thapar says that S Ramakrishna market. The cost of logistics in it’s important for freight forChairman, Federation of Freight warders, to focus on internal efIndia is 14 per cent of its GDP Forwarder’s Associations in ficiencies and productivity through and it is quite high as compared to India (FFFAI) operational excellence, technology, and other countries. It has been calculated innovation. The offering to the customer that a 10 per cent decrease in the cost can must be built around complete solutions backed give boost to 5-8 per cent of exports. by visibility and IT. “The ‘National Air Cargo Policy Outline 2019’ has Narayanankutty believes that new policies of the Governcommendably addressed the key issues that make our air ment are creating a conducive environment for manufacturing freight very expensive. To ensure faster, smooth, time bound and ease of doing business, which in turn is demanding imports and transparent cargo operations, the ‘Policy Outline’ has of capital goods and exports of finished goods. This demands intended to fix responsibilities in the value chain (both private a very agile supply chain for which freight forwarders need to and government organisations), end-to-end,” explains S Ramakrishna, Chairman, Federation of Freight Forwarder’s have great capabilities of digitisation, giving visibility to shipment status and reaching goods within the promised time. This Associations in India (FFFAI). will mean that forwarders have captive capacity and the ability “As announced in the Cargo Policy, reduced dwell time of to scale their capacity up or down and still make their services cargo at airports, replacing paper interaction with digital reliable, predictable and consistently dependable. transactions by optimising and digitising each of the process Narayanankutty feels that the ability of forwarders to within and across stakeholders, embracing global e-cargo, eliminate waste from the logistic expenditures will enable shifting towards fully facilitated ‘trust-based’ clearance processes through state-of-the-art RMS with robust scanning and lowering the cost of transportation. To reach these high standards expected from forwarders, startup forwarding organisaidentification methodology, development of off-airport infrastructure/facilities, etc. would definitely address the perentions will have to make significant investments and operate nial issues to a greater extent,” believes Ramakrishna. between two point pairs on a common platform. “Establishment of off-site air freight stations is certainly a Going ahead, steps must be taken to enhance the training way forward to reduce costs involved in air cargo operations,” models for IT professionals involved in freight forwarding and feels Vohra. logistics sector. Using appropriate balance sheet potency to Meanwhile, Narayanankutty expresses that the new air obtain niche players in vital locations and routes will be crucial objective. Another key factor will be to encourage better cargo policy should have adopted a lot more from how logistics are conducted world over, especially from the matured understanding of customers; needs and then respond to those markets. “The policy still retains the large scope of the forwith advanced logistics solutions.

50 CargoConnect - may 2019

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Making the Autonomous Supply Chain a Reality


upply chains are evolving in the face of greater customer demand, soaring expectations, and endless purchasing opportunities. Retailers, manufacturers and third-party logistics (3PL) companies have to move quicker and produce more with shorter turnarounds and greater transparency. Companies are digitising their supply chains to meet these new challenges, but this alone isn’t enough to answer the questions businesses are asking every day: what’s going to happen tomorrow, next week, next month and next quarter? An autonomous supply chain can help businesses respond with immediacy and decisiveness. This technology is designed to deliver on-demand, navigate disruptions months in advance and help keep your business ahead of any changes in customer buying behaviour. The three core tenants for an autonomous supply chain are:

Reading the signals

The more information a business has access to and uses, the more it can help understand any changes in supply and demand. In the past, the main challenge was having the processing capability necessary to collect reliable data and harness it to represent the realities of changing conditions. The capacity to measure and recognise external conditions is critical to predicting supply and demand. The autonomous supply chain

52 CargoConnect - may 2019


requires a significant increase in external signals, which relies on the reporting of evolving climate and market conditions in real time. So how can you read the signals? Using Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT), you can manage and interpret signals such as weather events, temperatures jeopardising fresh products and any online social trends influencing customer demand. Businesses need to make use of as many signals as possible, because if dimensions are missing it will difficult to get a clear picture.

It sees everything

To truly understand their entire supply chain, businesses need to manage the complexity and volume of intelligence — billions of pieces of information that are time-stamped with their own varying amounts of information. Let’s set the stage: imagine sensors inside a lorry, which is on its way to deliver fresh goods to a grocery retailer. Sensors are able to detect the temperature inside

Drawing conclusions

The capacity to both store and manage every piece of information is necessary, but without translating these billions of nuggets of information, every detail is rendered powerless. A standard approach of applying a rule under specific conditions could miss dozens of other factors. The autonomous supply chain uses AI and ML to connect all the seemingly unrelated pieces for a clear picture of supply and demand. Leaving it to dashboards that report conditions or status systems, an approach commonly used across the supply chain, won’t fuel the autonomy required to respond to the growing pressures across industries. The anticipatory shipping technology that Amazon patented in 2013, which calculates the expected demand for items in certain locations, is the perfect example. The ability to predict supply and demand in advance enables Amazon to move products with efficiency and precision so they can ship to a customer sooner and at the lowest possible cost. Calculating demand and

Making the autonomous dream a reality

Whatever industry it may be, achieving an autonomous supply chain can seem impossible at first. The good news is, whether you’re navigating a changeresistant culture or using technologies which lack the processing capabilities necessary to collect data and provide insights, an autonomous supply chain is still achievable. The seeds of change can be sown by educating influencers on how an autonomous supply chain can prevent the business from being left behind in a fast-evolving business landscape. Then, they can move on to highlighting the gaps in the organisation’s own supply chain that result in lost revenue, wasted inventory and late deliveries, showing where they can be averted with a laser focus on product and demand. Once this is completed, they can enlist a network of partners with the digital capabilities and technologies the organisation needs to move toward an autonomous supply chain. As with any jump to a new technol-

The autonomous supply chain can drive value and efficiency at every turn with learned recommendations to stay ahead of the curve. The self-learning and selfhealing approach predicts challenges, transforming them into opportunities for growth. and outside of the lorry, the speed it is travelling at, and if there are any road blocks which will slow the delivery down. Every detail is pinpointed with time and date stamps. Now think of thousands of sensors everywhere; the autonomous supply chains need to capture and process every detail in real time. To do this, organisations need to build a platform that can manage and interpret all the signals and insights with a processor capable of managing and integrating data from AI, ML and IoT.

pre-positioning supply can offer a formidable edge over competitors, something Amazon has clearly taken advantage of. To help businesses draw the right conclusions from the data they gather, they must apply ML and AI that’s trained to understand what’s happening across the supply chain and predict how demand and supply will look in the future. That means having algorithms that are capable of supporting ML and AI as they progress and evolve over time.

ogy, adoption won’t happen overnight, but it will be undeniably transformational. The autonomous supply chain can drive value and efficiency at every turn with learned recommendations to stay ahead of the curve. The self-learning and self-healing approach predicts challenges, transforming them into opportunities for growth. Implement these steps well, and just imagine what’s possible for your business. By Girish Rishi, CEO, JDA Software

may 2019 - CargoConnect


Interview Changi Airport has been ranked best global air cargo airport for performance, value and facilities. Please share the strategies work that goes in ensuring this performance.

We believe in value creation for our customers through three key pillars: Connectivity- A critical value proposition of an airport, and we are continuously strengthening our air connectivity through the years. Changi Airport handles 7,400 weekly flights, connecting Singapore to more than 400 cities in 100 countries. In 2018, FedEx added four weekly freighter ser-

7th in the World Bank’s 2018 Logistics Performance Index. Handling Capabilities- Over the years, our partners have also developed specialised capabilities to handle niche cargo products. Our ground handlers, SATS and dnata, have dedicated temperature-controlled facilities to handle and store temperature-sensitive cargo such as pharmaceuticals and perishables. Apart from having the right infrastructure, our logistics community has also been focusing on enhancing their capabilities in the handling of pharmaceuticals, by attaining the IATA CEIV Pharma certification. To date, the Changi community

Global cross border E-commerce sales are projected to grow at 25 per cent per year on average, reaching US$900 bn, with Asia-Pacific as the dominant market. Southeast Asia is set for promising E-commerce growth. By 2025, the region’s E-commerce sector is expected to exceed US$100 bn. vices to Sydney, strengthening Changi Airport as a gateway to Southwest Pacific. 10 new passenger city links were also added to Changi Airport’s network, providing more options to our customers. Operational Efficiency- Operational efficiency is a key driving force of a global air cargo hub, and this is achieved through collaborative efforts by all stakeholders- logistics partners, authorities and government agencies. Changi Airport Group continually works with partners to streamline processes while upholding standards. It is the collection of these efforts that led to Singapore being ranked

has the largest number of IATA CEIV-certified organisations in Asia Pacific. In September 2018, Singapore Airlines (SIA) launched its THRUCOOL product – an enhanced service to transport pharmaceutical cargo that entails dedicated cold chain services such as priority uplift, quick ramp transfers and use of thermal blankets. One of the key features of THRUCOOL is the introduction of a ‘quality corridor’ along the Zurich-Singapore-Sydney route, which aims to reduce product losses attributed to handling and environmental factors by having its terminal operators in

Operational efficiency is a key driving force of a global air cargo hub, and this is achieved through collaborative efforts by all stakeholders, such as logistics partners, authorities and government agencies. Lim Ching Kiat, Managing Director for Air Hub Development at Changi Airport GROUP outlines to Ajeet Kumar on how Changi Airport Group continually works with partners to streamline processes while upholding standards that led to Singapore being ranked 7th in the World Bank’s 2018 Logistics Performance Index, and more. Excerpts from the interview:

India is Changi’s 5th largest cargo market 54 CargoConnect - may 2019

all three airports to comply with standards adopted from the IATA CEIV Pharma programme. More ‘quality corridors’ are expected to be launched in due time. On the E-commerce front, SATS has also enhanced its capabilities, as well as that of its partner Singapore Post (SingPost) through their SATS eCommerce AirHub facility. The facility boasts full automation, enables SingPost to increase its mailbag processing capabilities, and also offers enhanced track & trace status via data interface, resulting in better customer service satisfaction. In addition, SATS has also developed a virtual neutral B2C/B2B4C platform that links any logistic player in the E-commerce ecosystem and equips them with cross-border fulfillment capability with real-time tracking of Ecommerce parcels.

As a leading air cargo airport, what are the limitations or challenges you face in the areas of infrastructure and security and how do you overcome them?

The rise in E-commerce has been offering great opportunities for the air cargo industry, yet it requires a greater need for speed, reliability and transparency. There is also rising need for more complex security requirements at piecelevel. We are working with our security agencies and key stakeholders on the approach towards air cargo security without compromising on speed and efficiency. The Changi East development is Changi Airport’s largest expansion project to date, which aims to secure our aviation logistics future and Singapore’s air cargo hub status. Ready in the early 2030s, the development includes the future Terminal 5, the three-runway system and the Changi East Industrial Zone (CEIZ). CEIZ will be developed for airfreight, air express and Maintenance, Repair and Operations (MRO) activities. Together with the remodeled Changi Airfreight Centre, Changi’s handling capabilities will increase from 3 mn tonnes per annum today, to 5.4 mn tonnes per annum in its end-state. With the ever-changing logistics landscape, the challenge for us is to stay nimble and

flexible to adapt to the needs of the industry, and ensure that the airport infrastructure stays ahead of time. To this end, we maintain close engagements with our partners to remain relevant to rapidly-changing air cargo industry.

Omnichannel in E-commerce and eRetail markets is seeping in with changing times. How do you see this as a paradigm shift in terms of air cargo? How is Changi Airport coping up with increasing demand of these markets?

E-commerce is causing a paradigm shift in supply chain requirements and models. With more E-Commerce parcels having a higher Average Order Value (AOV), consumers are demanding greater transparency and speed that require digitalisation and automation throughout the supply chains. Ecommerce cargo entails piece handling, which also necessitates a re-think in custom and cargo security regimes due

We are planning to introduce new pharmaceutical capabilities both on a local and global level by the end of 2019 to strengthen Changi Airport’s position as a reliable pharmaceutical air cargo hub in the Asia Pacific. to piece-level screening. In view of the above trends, we have been collaborating with agencies such as the Economic Development Board, Enterprise Singapore, Singapore Customs and our seaport operator PSA to anchor cross-border ecommerce cargo flows through Singapore via innovative and intermodal means. Together with these agencies, we are pursuing major E-commerce players to establish regional Ecommerce fulfillment centers in Singapore by leveraging on our reliable and excellent air and sea connectivity. Our ground handler SATS has also developed a virtual neutral B2C/B2B4C platform that links logistic players in

the E-commerce ecosystem and equips them with cross-border fulfilment capability with realtime tracking of Ecommerce parcels. In December 2018, ASEAN Economic Ministers signed the ASEAN Agreement on E-commerce on the sidelines of the 33rd ASEAN Summit to help develop the E-commerce industry in the region by creating a conducive environment for E-commerce growth through facilitating electronic transactions, as well as accessing and moving data cross-border with ease. We welcome the move as it aids in facilitating more seamless flows of E-commerce goods across Southeast Asia.

How important is the India route link for Changi Airport?

India is Changi’s fifth largest cargo market, and was our fastest growing market with an 8 per cent growth yearon-year. We are currently connected to 18 cities in India, including three new city links - Pune, Vijayawada, Guwahati – that were established in 2018. Look i ng a head, t here is h igh growth potential for India due to its expansion of production activities. With the boom in E-commerce and rise of pharmaceuticals, India is regarded to be an emerging logistics hub. Due to our strategic geographical location and extensive air connectivity, Singapore is well positioned to be a conduit of South Asia-Southwest Pacific and South AsiaSoutheast Asia cargo flows.

What are the initiatives planned for 2019?

In 2019, we will continue to strengthen the three mentioned pillars- Connectivity, Operational Efficiency and Handling Capabilities. Specifically, we look forward to working with our partners, authorities and government agencies to enable new trade flows and drive pharmaceuticals, perishables, E-commerce, and advanced manufacturing cargo volumes. We are also planning to introduce new pharmaceutical capabilities both on a local and global level by the end of 2019 to strengthen Changi Airport’s position as a reliable pharmaceutical air cargo hub in Asia-Pacific.

may 2019 - CargoConnect



Consumer behavioUr patterns present a great opportunity for air cargo Tell us about Cargo Vision 2025 outlook.

Air Cargo has very strong prospects and many industry analysts, including our own economics department see an average of 3-4 per cent annual growth continuing. E-commerce is a significant driver of this projected business growth. But new systems, procedures and facilities will be needed to cater to the increase.

How significant is the role of E-commerce in facilitating the global growth of air cargo? What are other commodities driving air cargo growth?

E-commerce is a growth driver for the air cargo industry, and therefore there’s an increasing need for speed, visibility and easy returns, all of which will impact the logistics chain. E-commerce today accounts for less than 10 per cent of global retail shopping. Continued growth in cross border E-commerce presents huge opportunities for air cargo and reflects modal shift from ocean to air. Special cargo which includes phar-

IATAs role is to work with the entire supply chain to help develop the standards and initiate solutions required to support the changing global marketplace.

56 CargoConnect - may 2019

maceuticals, perishables and live animals are also continuing to grow, reflecting an aging population which is focused on good quality food and desire for fresh fruits, vegetables and flowers. Pharmaceuticals are driving up air cargo volume and leading the industry into a period of sustainable growth. Perishables are the commodity to watch for air cargo over the coming few years while demand from the high tech industry has tailed off.

Which trade lanes look promising for air cargo?

Trade flows have become much more balanced than in previous years. For instance, flows into and out of China, both showing growth. Flows into Africa are not balanced to flows out, but the global picture is more harmonious. In terms of geography, the APAC region currently controls the global air cargo market and is expected to grow progressively to gain more market share throughout the forecast period. Factors such as the growing demand for online retail stores, especially fashion stores and growing demand for the Just-inTime (JIT) production of goods are expected to lead to the strong growth of this market in the APAC region.

Share the initiatives and strategies for making a meaningful impact on the world of air cargo.

Safety, Security, Digitalisation, Modernisation, use of advanced technology, and quality are just some of the key

themes around which we have built programs designed to support industry growth, and desire for efficient and effective solutions.

What are the megatrends and disruptions observed in the air cargo business? How are you preparing to leverage and manage the same?

I prefer to use the word opportunity rather than disruptions and there are plenty of them. We have already talked about E-commerce and special cargo, but I think the overall pattern of consumer behavior is a great opportunity for air cargo. People are traveling more and are acquiring greater taste and appreciation for what the world has to offer. This trend is a great opportunity for aviation and air cargo, as we connect people to places and people to things. IATAs role is to work with the entire supply chain to help develop the standards and initiate solutions required to support the changing global marketplace.

How does the air cargo market look for 2019?

The current questions which surround BREXIT and the trade dispute between the USA and several nations are resulting in some consumer caution when it comes to spending. This does have a consequential effect on air cargo volumes, but we hope the current uncertainty will be replaced by clarity and growth for the year.

Steadily increasing volume from the E-commerce and pharmaceuticals sectors is starting to look sustainable, and the outlook for air freight over the next five years would be supported by a brighter economic and trade backdrop than what was seen between 2012 and 2017. Glyn Hughes, Global Head of Cargo, IATA, in a conversation with Upamanyu Borah, elucidates the sector-wide forecast, their designed to support industry growth programs, and global air cargo market outlook.

Where does India stand in terms of infrastructure to support air cargo growth?

The Made in India program has targeted several industries which are premised on global supply chains and any growth in these remanufacturing sectors will have a positive impact on India’s air cargo volumes. Additionally, the government of India is looking at new national policies which will strengthen the air cargo sector by focusing on efficiency and digitalisation and by creating an important framework which supports air cargo expansion.

The Made in India program has targeted several industries which are premised on global supply chains and any growth in these remanufacturing sectors will have a positive impact on India’s air cargo volumes.

may 2019 - CargoConnect


Shipper Speaks

Scalability and the capacity to meet high demand is essential for the FMCG Supply Chain


To stay competitive, FMCG logistics require adapting to the new realities of the retail market, by reducing costs and improving their ability to predict and respond to changes that customer demand places. Praveen Jain, General Manager Supply Chain, Adani Wilmar Limited, outlines to Smiti Suri, the supply chain strategies for delivering their products, which constitute items of daily usage in the lives of customers, on time in full.

mportance of Supply Chain Management

Supply C ha i n Ma nagement (SCM) is considered to be the backbone of any industry, especially FMCG and logistics that constitutes a larger portion of the given segment, helping in delivering the output to its maximised efficiency. While, logistics is a field which is shaping up at a fast pace in the current Indian scenario, giving an edge to the companies who are striving to make each logistical parameters optimised. Having said that, scalability and the capacity to meet high demand is essential for the Fast Moving Consumer Goods (FMCG) supply chain. At Adani Wilmar Limited (AWL), supply chain management is divided into primary logistics and production planning. We have seen a humungous increment of dispatch at pan India level which helped AWL in exploring various opportunities to minimise the freight and order cycles as well as maximise the deliverance of products at the customer level. We also included the use of multi-model at various locations to meet customer demands at the earliest, and looking forward to more such options to make the best out of it.

Supply Chain Strategies

FMCG moves in staggering quantities.

58 CargoConnect - may 2019

We care for the fact that these are goods with a fixed shelf life and have to be replenished quickly in the market. These products constitute items of daily usage in the lives of customers, and we help to get it to them, on time in full (OTIF). Best practices can be different for different industries as based upon their style of business or their depending on their sector. Some of the best practices which we include in the SCM field are:  Improved supplier performance,  Maximised inventory management,  Implementing and sustaining the best tools for decision making,  Segmenting the supply chain, and  Compressed cycle times.

At AWL, we monitor, analyse, evaluate, and develop the criticality of the LSPs parameters so that they can be much more efficient in the future, attaining benefit for themselves as well as for the associated company.

Innovations and Best Practices To stay competitive, FMCG logistics require adapting to the new realities of the retail market by reducing costs and improving their ability to predict and respond to changes that customer demands bring in. The right technology can give the company the agility needed to stay competitive while confirming to retailers on very high service level requirements. We have included various techniques for faster & seamless SCM operations, such as:  Software for Freight Negotiation & Transporter Management,  VIMS- Vehicle Integrated Management System for E2E visibility,  WMS- Warehouse Management Systems, and  AIMS & CRS for optimised production & dispatch planning.

Warehousing Tactics

Warehouse tactics and strategies revolve around the throughput of the given warehouse. To maintain and gain the edge over the throughput in the warehouse the different strategies adopted are:  Implementation of EWM for plant and fulfillment centers,  Using of inventory at sub-stockists level, and  Better serviceability model or PDP generation for better execution. Talking about the execution level, we have a flexible pattern of mix load Stock Keeping Unit (SKU)s to satisfy customer demands at the micro level. We have also optimised our dispatch plan, such that the mother warehouse should be efficiently and effectively be the service guidable to the spokes. For this, we have created extra warehouse spaces in the existing scenario as well as nullified dispatches from various warehouses.

Shipper Speaks Leveraging Partnerships Smooth coordination only develops between associates and the company when the flow of information tends to be perfect. To develop this situation and sustain the same, we have introduced a patter n of online biding amongst the associates which helps us in getting the transparency regarding the freight as well as performance monitoring of transporters. This particular software helps us to rectify and develop the performance of lower level associates and also helps in monitoring their daily freight behaviour pattern, which in the long run will make us a highly effective banner of freight negotiation and vendor management. LSPs have been a crucial part of any company. LSPs are those drivers which help in satisfying the need of customers. At AWL, we consider our LSPs to be the prime mover of materials from origin to destination. Though sales are considered to be the front channel of any company, at the backhand, LSPs work in silence so that the demand at the micro level can be satisfied at the earliest. At AWL, we monitor, analyse, evaluate, and develop the criticality of the LSPs parameters so that they can be much more efficient in the future, attaining benefit for themselves as well as for the associated company. At AWL, movements from plant to

depot and customers as well as entire warehousing across the nation, is outsourced. The logistics service provider only deals with the vehicle placement, in transit movement and delivery of goods at destination. Moreover, internally we monitor the performance as well as freight matrix of the transporters. We also explore the multi-model opportunities at various locations through different associates. Our Expectations from LSPs Timely vehicle placement at the plant,  Offer best freight rates,  Minimal damage and loss while handling products,

Humungous increment of dispatch at pan India level has helped AWL in exploring various opportunities to minimise the freight and order cycles as well as maximise the deliverance of products at the customer level. We also included the use of multi-model at various locations to meet customer demands at the earliest.

 Timely arrival at destinations, and  Better forecast on rail indent placed. Our major LSPs in India are CTA logistics, East West Road Lines, Surat Goods, BLR Logistics, Universal Logistics, among others.

Creating Value

Customer value is only defined when the product delivered has satisfied the following circumstances:  Delivering the right product at the right time,  Minimum transit loss and damage to the product, and  Visibility of in-transit movement. At AWL, we have various policies that safeguards product delivery as well as transit loss. The policies ensure that the customer gets the maximum benefit out of it. Besides, for in-transit movement, we have GPS enabled systems which help the customer to track the delivery.

Tackling Challenges

At AWL, the various problems we face are:  Timely placements of the vehicle – By Transport software inclusion we identify the indent vs placement efficiency at the plant level.  Transit loss and damages – By quarterly evaluation of transporters at plant level.  Arrival at destination – By GPS and SIM based tracking solutions.  Lashing – We have started cargo securing for intact delivery at destinations.  VIVO- We track E2E vehicles visibility from the point of contact to delivery as well as vendor payments.


The below emerging forces are likely to have a significant impact:  Unexpected crest and trough of demands pattern,  The inclusion of decision-making tools and relevant innovations, and  Development of existing vendors to get the best output.

may 2019 - CargoConnect


n ews Bengaluru airport posts 11% increase in total cargo throughput in 2018-19

Adani Logistics buys InLogistics for `331.5 cr



he Kempegowda International Airport, Bengaluru (BLR Airport) has witnessed a sharp increase of 11 per cent in cargo throughput, handling 386,780 metric tonnes (MT) in 2018-19 as against 348,403 MT in the previous year. The international cargo processed during this period

dani Logistics Limited (ALL), a wholly owned subsidiary of Adani Ports and SEZ Limited (APSEZ), will acquire up to 100 per cent stake in Innovative B2B Logistics Solutions, an entity controlled by private equity firm True North, for `331.5 crore. The transaction will be an all-cash deal and is expected to be completed by first quarter of the next fiscal, said ALL.

was 242,650 MT (10.3%) compared to 2017-18 which recorded 219,899 MT, while the domestic cargo was 144,130 MT (12.2%) as against 128,504 MT last year. Bangalore International Airport Ltd (BIAL), the operator of the BLR Airport has undertaken a massive `13,000 crore capacity expansion to

cater to the long-term demands of the aviation market in India. This includes the first-phase construction of a 255,000 square metre Terminal 2, an advanced Cat-IIIB Code-F Capable Runway and landside expansion, which, once ready will give the airport a substantial capacity boost.

NMPT registers tepid traffic growth in 2018-19


ew Mangalore Port Trust (NMPT) handled 42.5 million tonnes (mt) of traffic in 2018-19 as against 42.05 mt in 2017-18, recording a growth of 1.07 per cent. Cargoes such as crude oil and containers contributed significantly to the traffic during 2018-19. The container cargo handled at the port recorded a growth of 13.95 per cent in terms of TEUs (twenty-foot equivalent units) and 10.10 per cent in terms of tonnage. The port handled 1,31,613 TEUs of containers during 2019-19 as against 1,15,498 TEUs.

The acquisition is complementary to ALL adding meaningful size, scale and diversification. It enables ALL to expand its total addressable market, enhance network coverage and create a value chain to handle dry cargo segment. Karan Adani, CEO and whole-time director of APSEZ said with this acquisition, ALL will become the largest private rail and logistics park operator in India.


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n ews CONCOR moves a record cargo of 43.32 MTs by rail

Apac services exports won’t make up for India’s imports of goods


he Container Corporation of India (CONCOR) of the Ministry of Railways has achieved 43.32 million tonnes of cargo by rail, 8.4 per cent higher than the previous year 2017-18 of 39.97 million tonnes, thereby clocking the highest ever in its history. There has also been a 30 per cent increase in doublestack trains from 2,303 trains to around 3,000 trains in 201819, said Chairman and Managing Director, Kalyana Ra-

I man, along with Directors, Sanjay Swarup and Manoj Kumar Dubey, and General Manager, K Sambasiva Rao. Giving details of the performance in the just-concluded financial year, he said along with Krishnapatnam, three terminals have been

commissioned, including two at Bodhjungnagar (Tripura) and Barhi (Haryana), while a distribution logistics was commissioned in Chennai in March last week. With this, the company has a presence across the country with 83 terminals in total.

DHL Express launches Yellow Yatra for Indian MSMEs to succeed globally (L-R) Bharat Mandot - Founder and Director, Stelcore Management Services; Vargab Bakshi - Partnerships Lead International, Shopify; R S Subramanian - Country Manager - DHL Express India; Sandeep Juneja - VP Sales and Marketing, DHL Express India; Sahil Singh - Head of Sales, Payoneer and Anubhav Kumar Advisor - Business Development, Alibaba.com





HL Express has launched the ‘Yellow Yatra’ programme, a multi-city series of events focused on equipping entrepreneurs from micro, small and medium enterprises (MSMEs) in different Indian cities with the know-how to succeed in international E-commerce. RS Subramanian, Country

Manager, DHL Express India, said, “The launch of ‘Yellow Yatra’ is part of our ongoing commitment to promote the growth of Indian SMEs through participation in cross-border E-commerce trade. Our extensive local, regional, and global network is a key enabler for SMEs who want to venture out of their cities.”

India’s E-commerce industry is expected to reach approximately US$ 100 billion by 2020. The Yellow Yatra program aims to be the single platform that connects entrepreneurs to the wider ecosystem, made up of tax consultants, digital marketers and experts with deep knowledge of online market places, web development platforms and payment gateways.

ndia is likely to gain only $2-10 billion by exporting services to 15 Asia-Pacific countries under the proposed mega regional trade agreement, a premier think tank has told the government. The likely gains from services exports will not compensate for the higher amount of goods imports, especially from China, under the Regional Comprehensive Economic Partnership (RCEP) trade pact. India exported $38 billion worth of services to the grouping last year In the April-January period of 2018-19, India’s merchandise exports to the region were $55.3 billion while imports were $145.9 billion, leaving a trade deficit of $90.6 billion. The trade gap with China alone was $53.4 billion for the whole of FY19.

Top ports record marginal upswing in FY19 cargo handling at 699 MT


he 12 major ports, Deendayal (erstwhile Kandla), Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) handled 699.04 MT of cargo during 2018-19, as per latest data by the Indian Ports Association (IPA). These ports, under the command of the Centre, had recorded 4.77 per cent growth in 2017-18 over the previous fiscal. Increased demand from various sectors including coal, containers, fertilisers and POL (petroleum, oil and lubricant) was the main reason behind the growth in traffic, IPA said.

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n ews Kerry Indev signs agreement with Make Easy for parcel delivery


hennai based Kerry Indev Logistics has signed an agreement with Tamil Nadu based Make Easy Logistics for transportation and express delivery of parcels. Kerry has already signed agreements with midsized courier companies who are

Vallarpadam posts 14% growth in January-March container traffic Kerry Indev Chairman, S Xavier Britto (centre) with officials of Make Easy Logistics during signing of the agreement

having more than 3000 pin codes all over India, and the latest comes so as to meet the company’s objective to have another 2000 pin codes added by the end of this year. Together with courier and parcel service, all verticals of

Stellar Value Chain acquires Patel Roadways Business


tellar Value Chain Solutions Pvt Ltd (Stellar), backed by Warburg Pincus, has announced the 100 per cent acquisition of ‘Patel Roadways’ business, the surface transportation arm of Patel Integrated Logistics Ltd (PILL). Innovative Logistics Services Pvt Ltd, a 100 per cent

subsidiary of Stellar will acquire Patel Roadways division of PILL including Express, Less-than-truck-load (LTL) and Full-truck-load (FTL) segments by way of slump sale in an all cash deal. The acquisition of Patel Roadways sig n i f ic a nt ly strengthens Stellar’s opera-

Kerry Indev would be able to showcase the new product and service offering which will enhance the value added services to its customers and in turn will support Kerry Indev Express growth and thereby the overall growth of Kerry Indev. tional capabilities and augments its road network reach to over 350 branches servicing more than 15,000 pin-codes pan-India. This latest acquisition also complements Stellar’s Contract Logistic’s warehousing capabilities and enables value chain transformation for its customers across E-commerce, Consumer Retail, FMCG, Auto, Pharma, Telecom, Industrial, Chemicals & Electronics sectors.

Freightos WebCargo acquires Air Freight Bazaar India


reightos e-booking company WebCargo has acquired Chennai-based regional air cargo rates and sales platform Air Freight Bazaar. The acquisition combines WebCargo’s advanced air cargo rates, sales and e-booking platform, used by over 1,400

forwarders with Air Freight Bazaar’s 300 regional air forwarders. Air Freight Bazaar customers will receive access to WebCargo’s platform, including access to on-demand air rates, dynamic pricing and e-booking. These include with air

cargo carriers like Lufthansa Cargo and Air France KLM. Frightos said the acquisition sets the stage for future regional expansion of its suite of digital freight sales and management platforms.


he International Container Transshipment Terminal at Vallarpadam has posted a 14 per cent growth in the first quarter of 2019, surpassing the average industry rate of 9 per cent. South India’s premium transshipment terminal operated by DP World recorded the highest quarterly throughput of over 1.6 lakh TEU and recorded its all-time highest monthly throughput of more than 56,000 TEU in March 2019. The terminal also witnessed a 48 per cent improvement in transshipment volumes during the first three months of 2019. This is due to the excellent feeder connectivity the terminal boasts to the major as well as minor ports and inland waterway ports in India.

Singapore investors bet big on India’s real estate sector


ingapore-based investors are betting big on India’s commercial realty and other sunshine sectors, including logistics and warehousing, real estate consulting firm ANAROCK said in a report titled Private Equity in Indian Real Estate. Top Singapore-based private equity (PE) firms such as GIC, Ascendassingbridge and Xander are funnelling billions of dollars into India’s realty sector, particularly in South Indian cities, according to the report. About one-third of the total $14.01 billion PE investment in India’s realty sector between 2015 and 2018 was made by Singaporean firms, the highest among both domestic and foreign investors, according to ANAROCK’S report.

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Speakers at PHARMACONNECT 2020






BHARAT THAKKAR Joint Managing Director Zeus Air Services

GM - International Business Logistics Indoco Remedies Ltd





Special Secretary - Logistics Ministery of Commerce and Industry Dept of Commerce (Govt of India)

Sr GM - Supply Chain & Demand Planning Lupin Ltd

Dy GM - International Business Div Head- Supply Chain Management Bharat Serums and Vaccines Ltd Cadila Pharmaceuticals Ltd

Head- Logistics - APAC/China/Japan Teva Pharmaceuticals


GM - Distribution RPG Life Sciences Ltd

VP - Materials Management Reliance Life Sciences

Head- API Planning Global Logistics Biocon


ROYSTON FERNANDES Head- Global Supply Chain Cipla Ltd




Head- Packaging Service OSD India Mylan Laboratories Ltd


General Manager Director - Supply Chain Export Logistics J&J Pharma (Janssen) India Sun Pharmaceutical Industries Ltd Johnson & Johnson Pvt Ltd








Sr Vice President and Director - Customer and Head- Cargo Logistics Services Mumbai International Airport Pvt Ltd Johnson & Johnson India

CEO Celebi Delhi Cargo Terminal Management

Sr Vice President Supply Chain Management Kopran

Director - Global SCM Dr Reddy's Laboratories


International Expert Pharma Supply Chain

Head- Logistics Om Logistics


International UPS Drones Are Delivering Medical Samples in North Carolina


PS has started using unmanned drones to t ra n sp or t med ic a l samples at a North Carolina hospital system, part of its longer-term plan to incorporate drones into its delivery of

supplies and samples to medical facilities. The logistics and delivery giant is partnering with Matternet, a drone-logistics startup, to shuttle medical samples among scattered facilities at

WakeMed. The 941-bed hospital system includes three fullservice hospitals and other facilities in North Carolina’s Triangle area. The drone deliveries are part of a pilot program that the Federal Aviation Administration launched last August to test practical applications of drones and analyze how they could be used safely to speed deliveries and reduce costs. UPS and Matternet are also working with North Carolina’s Department of Transportation to conduct the drone flights.

Cathay and Lufthansa Cargo fully implement freight tie-up


athay Pacific and Lufthansa Cargo have recently expanded their joint business arrangement to cover eastbound shipments. The partnership has allowed customers to book cargo space on flights operated by Cathay and Lufthansa from Hong Kong to Europe since February 2017, but has only recently been cleared to accept shipments in the other direction. Both carriers signed their

initial co-operation agreement in May 2016, and since then have worked on IT a nd s e r v ic e enhancements across their operations. They have also introduced joint cargo handling facilities in Hong Kong and Frankfurt. The expanded arrangement covers 280 direct flights

L to R- Saudia Cargo CEO Omar Hariri and Yasser Al-Mayoof, vice president of aviation standards at GACA

66 CargoConnect - may 2019


allas Fort Worth International airport (DFW) is working with India’s Hyderabad airport to develop pharma product flows after the US hub’s cargo community gained IATA’s CEIV Pharma certification. John Ackerman, executive vice president of global strategy and development at DFW Airport, said, “We have been spending time in Hyderabad and Mumbai over the past year because there is a tremendous demand for pharma trade flows to DFW. We are actively talking to a couple of airlines and several Indian pharma producers about that.” DFW’s cargo team is working with Indian airports group GMR, which runs Hyderabad, to develop those pharma flows.

Kroger’s driverless delivery revs up in Houston each week between Hong Kong and Europe, both on dedicated freighter jets and bellyhold capacity on passenger services, and road feeder services on both ends.

Saudia Cargo gains ground services certificate


Dallas Fort Worth looks to India for pharma flows

audia Cargo has gained a Ground Service Provider Certificate (GACAR 151) from the Middle East nation’s General Authority of Civil Aviation (GACA). Saudia Cargo’s chief executive officer, Omar Hariri said, “This licence will further enhance Saudia Cargo’s ground handling capabilities and opportunities thus increasing the logistical income into the Saudi economy in line with the Saudi vision 2030 that aims to transform the Kingdom into a global logistics hub.”


roger, America’s largest grocery retailer, and Nuro, the robotics company transforming local commerce, have launched their autonomous grocery delivery service in Houston, later this spring. Kroger and Nuro’s innovative service provides a new type of delivery service option for Houston residents. Like the first pilot market in Scottsdale, Arizona, Kroger and Nuro are starting the service with Nuro’s manual and self-driving Toyota Prius fleet, and will introduce the next generation of Nuro’s custom driverless vehicle later this year.

International Ceva Logistics begins FCL truck service from China to Europe


Turkish Airline’s massive move to new Istanbul hub


u rk i sh A i rl i nes ha s moved to Istanbul Airport, the biggest airport project of the world. Following the first opening stage back on last October, the great move began on April 5, 2019. After 6 hour time period, 38 per cent of this great transportation operation was completed successfully from Atatürk Airport to Istanbul Airport.

Unique in the global aviation history, the moving operation took 45 hours in total and was concluded on April 6 Saturday night at 23:59. In order to complete the operation within the parameters of the prior planning, Atatürk Airport and Istanbul Airport remained closed for all passenger flights between 02:00 and 14:00 on April 6. The last pas-

senger flight from Atatürk Airport was the scheduled Istanbul – Singapore flight of Turkish Airlines. Within the moving process, operations started from Istanbul Airport at 14:00 on April 6. The first f l ig ht du r i ng t he “Gr eat Move” was conducted between the Istanbul Airport – Ankara Esenboğa Airport. In the following process, Turkish Airlines’ flights from Istanbul Airport were gradually increased according to a set plan.

Cargo-Partner to offer Temperature-Controlled Solutions at their Prague Logistics Center


he privately owned fullrange info-logistics provider offering a comprehensive portfolio of air, sea, land transport and warehousing services, cargo-partner, have added a temperaturecontrolled warehouse section at their Logistics Center near Vác l av Havel A i r p or t i n Prague. The new facility provides a storage capacity of 1,400 m² providing 1,800 pallet slots in temperature-controlled conditions between +2 °C and +8 °C. The new addition was made to meet the increased demand from their clients in both the

eva Logistics is to begin twice-weekly full container load (FCL) road services between China and Europe following the arrival of its first truck from China to Spain in 16 days. The 70 cubic metres load of 7,000kgs of garments destined for Zara left South China and travelled over 13,600 kilometres via Kazakhstan, Russia, Belarus, Poland, Germany and France. No inspection was required during the TIR transit after the truck was sealed by Customs at Khorgos on the China-Kazakstan border and unsealed in Spain.

According to Kelvin Tang, director of Road & Rail for Ceva Logistics North Asia, the cost is 40 percent less than air and 10 days faster than rail.

Cathay Pacific joins Pharma.Aero


Foodstuffs & Perishables sectors in the Czech Republic. The center offers a whole host of value-added services, such as, including repacking, sorting, labelling, bundling,

assembling, customs clearance and logistics consulting, along with standard distribution services like container unloading, palletisation, pick & pack and reverse logistics.

ong Kong-based Cathay Pacific has joined the cross-industry Pharma.Aero initiative, which aims to achieve excellence in the transportation and handling of pharmaceutical products. According to Cathay Pacific general manager cargo commercial Nelson Chin, “As Hong Kong’s home airline, Cathay Pacific is working closely with Airport Authority Hong Kong to develop a pharma ‘corridor’ to connect airport members of Pharma. Aero and provide customers with a superior service.” Nathan De Valck, chairman of Pharma.Aero added, “In collaboration with Pharma.Aero and our pharma shipper members, key performance indicators of the pharma corridor will be clearly defined, targeting to set A2A pharma handling standards.” may 2019 - CargoConnect


EVENTS FMCGCONNECT 2019 hailed tremendous appreciation from participating delegates

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rganised by Surecom Media, FMCGCONNEC T 2 019 – FMCG Supply Chain Conference was convened at Shangri- La’s - Eros Hotel, New Delhi on April 11, 2019. This year’s edition was endowed with participation by more than 200 delegates- logistics head of leading FMCG firms, LSPs, airlines, shipping lines, road transport companies, facilitators, and vendors of FMCG. Five intriguing panel discussions were held in the conference which touched each and every aspect of India’s FMCG supply chain. Ajeet Kumar, Surecom Media’s Director, provided the opening remarks and noted the organisation’s commitment to delivering first-rate logistics conferences from their CONNECT series of confer-

ences, to the entire industry. The conference formally commenced with the lighti ng of lamp by dig n itar ies- Samir Chaturvedi, Head- Supply Chain Mangement, Patanjali Ayurved Ltd; Amit Dhume, National Head - Logistics, Hindustan Coca-Cola Beverages; Vineet Kanaujia, Chief Marketing Officer, Safexpress Pvt Ltd; Piush Goyal, Managing Director, Kelley Material Handling Equipment India; and Smiti Suri, Publisher– Surecom Media. The 1st panel discussion of the conference on ‘Balancing Well Connected Distribution Networks on Low Operational Costs’ elucidated the distribution channel structure in India, which is largely traditional and quite unique. With a significant part of the market including

unorganised players selling unbranded and unpackaged products, the industry is facing intense competition, characterised by complex distribution networks, forcing firms to constantly work on supply chain innovation. In order to develop and maintain an efficient supply chain, the companies focus on availability of products in the complex distribution network. The panel saw eminent speakersSamir Chaturvedi, Head - Supply Chain Mangement, Patanjali Ayurved Ltd; Divyanshu Tambe, Executive Director Transport & Logistics, M&A, Ernst & Young; Sanjiv Chopra, Chief Operating Officer, RSPL Group; Amit Dhume, National Head - Logistics, Hindustan CocaCola Beverages; and Anil Arora, Founding Partner, Aetos Growth Partners, who converged to discuss and deliberate on

may 2019 - CargoConnect



the challenges that companies in India face in designing, constructing, and managing distribution channels on the ground. In the 2nd panel discussion, Mihir Mohanta, General Manger (SCM)- International Business, Mother Dairy Fruit & Vegetable; Praveen Jain, Head- Supply Chain, Adani Wilmar Ltd; K Udyan Kohli, Head- Supply Chain, Hyfun Foods; Keyur Doshi, Head- Supply Chain, Vadilal Group; Atul Holkar, Head- Supply Chain Management, Varun BeveragesPepsico; Kannan Thangaraj, Head- Centre of Excellence, Sical Supply Chain Solu-

70 CargoConnect - may 2019

tions, brainstormed on the issues pertaining to ‘Distribution Networks - Winning Platforms’. The wide canvas of questions that were debated ranged from critical issues like achieving efficiency in sales and distribution of Fast Moving Consumer Goods, to complex ones such as greater standardisation and visibility, network design and planning, etc. The 3rd panel discussion of the conference ‘Opportunities in FMCG Logistics – Rural India’ brought on stage Sagar Anand Kurade, Managing Director, Suman Project Consultants Pvt Ltd; Rajesh Pednekar, International Expert,

Pharma Supply Chain; Ajith John, Senior General Manager - Supply Chain, Diageo India; and R Parameshwaran, National Manager (Corporate & Major Accounts), V-Xpress (a division of V-Trans India Ltd), who briefed on integrated and collaborative approaches to develop sustainable supply and value chains that will enable Indian FMCG companies to steadily reduce costs, increase their flexibility and delivery reliability by maintaining a strong distribution network across rural India, and benefitting from the contribution of technological advances such as internet and better logistics services. And, that in order to maximise their vol-

ume sales and product penetration the companies need to identify the most feasible sales channel route. The post lunch session kicked off with the 4th panel discussion on ‘Purchase order management/ Contract Logistics.’ Addressing a dozen of questions of relevance on highly distributed supply chains in the FMCG industry, characterised by contract manufacturing and packaging models as well as cross-company inventory management methods, and contract manufacturers, co-packers, multiple tiers of suppliers, and thirdparty logistics providers (3PL)s who also

play a key role, industry leaders- Debajit Bhattacharyya, Vice President Procurement, Havmor Ice Cream Ltd; Rajat Sharma, Head- SCM, Hamilton Warehouses Pvt Ltd; Ajith John, Senior General Manager - Supply chain, Diageo India; Keyur Doshi, Head- Supply Chain, Vadilal Group; and Sumit Sharma, Co-Founder, GoBOLT- a Delhi-based logistics tech startup run by Camions Logistics Solutions Pvt Ltd, discussed on the various factors that aims to rationalise success of FMCG companies with increasingly requiring them to integrate vertically and virtually to create – and compete as – ecosystems of partners and suppliers.

The 5th and last panel discussion witnessed professionals and specialists from the field- Shobhit Jain, Head- Supply Chain Capability, Technology & Planning, Jubilant Foodworks Ltd; Sumeet Jha, Manager- Supply Chain, Mrs Bector Food Specialities; Kailash Kodvani, Deputy General Manager - Operations, RSPL Group; and Arka Ghosh, Assistant Manager - Planning, Colgate Palmolive, sharing their knowledge and expertise on the topic ‘Re-engineering FMCG supply chains’ and mapping out logistics strategies that need to be closely aligned with a company’s manufacturing and commercial strategies.

may 2019 - CargoConnect


EVENTS About FMCGCONNECT FMCGCONNECT- FMCG Supply Chain Conference; the largest and most prestigious annual event of its kind, brings together key stakeholders from the entire FMCG supply chain. FMCGCONNECT, powered by CARGOCONNECT Magazine, is part of Surecom Media’s CONNECT series of conferences that also includes AUTOCONNECT: Automotive Logistics Conference, APPARELCONNECT: Apparel Supply Chain Conference, and PHARMACONNECT: Pharma Supply Chain Conference. These conferences are market leading unique platforms for the logistics industry to connect, network, share information and leverage opportunities for moving ahead in a fast forward mode in India’s highly at-

tractive industry domain – Logistics. FMCGCONNECT 2019 was crafted with dexterity to supplement the overall objective of knowledge sharing by the professionals of the respective panels. The participating professionals were proactively and enthusiastically engaged in the proceedings of the conference to make it a great success. FMCGCONNECT and other domain-specific conferences by Surecom Media are created with efficacy and at-

FMCGCONNECT 2019 honours

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tention is given to every detail while conceptualising and conceiving. A conference is a highly skilled endeavour, and an excellent conference which offers knowledge sharing/creating and networking opportunity for a set of stakeholders, is only possible by being active in a particular domain for decades. Today, CARGOCONNECT stands as the leading magazine in the logistics industry, and presently is the highest circulated logistics industry magazine in India with presence across the Indian SubContinent.

Testimonials Samir C haturvedi Patanjali Ayurved

It’s a commendable initiative. We don’t see much conference being organised, highlighting the various aspects of India’s F MCG i n d u st r y. At t im e s lik e th e s e , conferences like FMCGCONNECT become crucial, also when the country is progressing as a leading economy. M ihir Mohanta Mother Dairy Fruit & Vegetable

Hap p y to s e e i n d u st r y p rofe s s io n al s managing time to come together on one single plat for m . Par t ic ipants are enthusiastic. They are able to view and feel the industry; understand and analyse the issues and raise voices to find the best of solutions for a cumulative growth. Atul Holkar - Varun Beverages (Pepsico)

Today, across the supply chain, things are moving very fast. Every day there is a new product coming up. One hardly finds time to keep up with the information or attend industry events. I am quite happy that I am out of office for the day and concentrating on my course case- Supply Chain. A mit Dhume Hindustan Coca-Cola Beverages

We l l - c u r a t e d a n d f o c u s s e d o n e - d a y programme on the FMCG supply chain, br inging all exper ienced industr y professionals together. Much satisfied to be a part of this interesting event. Shobhit Jain Jubilant Foodworks

Always good to hear and learn from the industry veterans. Attending the event was immensely fruitful for me. I hope to be part of it next year as well. Debajit Bhattacharyya Havmor Ice Cream

The sessions were quite thought provoking. I see it as a fantastic knowledge enhancing oppor t unit y for me, and hopef ully for everyone who was part it. Ajith John - Diageo India

Personally, got to learn a lot of from the industry practitioners. Also, heartened to know that Indian FMCG companies have implemented such many standards and are catching up with the pace. Sanjay T ripathi – Adani Wilmar

A good platform to meet and greet industry professionals. The value addition is going to boost supply chain business, and thereby support India’s FMCG industry growth.

Ashish R ai Aveny Logistics & Warehousing

All the big names from the FMCG industry were here and therefore a good platform to interact with them. Seeing the kind of responses this year, I am sure the next edition of FMCGCONNECT will come up bigger. A nil A rora - Aetos Growth Partners LLP

As the whole theme of the programme focussed on FMCG, it was overall a good idea to get more and more people onboard from this particular industry. P iush G oyal Kelley Material Handling Equipment India

I have attended a lot of conferences, but FMCGCONNECT is unique in its own way. It has dedicatedly focussed on FMCG, that too in a well-organised and competent way. Sumit Sharma - GoBOLT Logistics

The event is amazing with respect to the kind of footfall. The conversations helped us to understand what the industry wants. All panels were real-time and of utmost value-addition. Rohit Baweja Ahmedabad Roadlines

Def initely, it is a good plat for m and opportunities were created to realise that as industry members, we need to help each other and be more organised, creating more lanes for business. K annan T hangaraj Sical Supply Chain Solutions

Industr y veterans, top most people of F MCG c o m p a n i e s a n d s u p pl y c h a i n solutions providers coming together and shar ing their exper ience, is indeed an achievement in itself. R ajat Sharma - Hamilton Warehouses

Much appreciable; getting the right people into the right seats for the right things, in the right way. Personally, I have gained a lot through all the interaction I had with other professionals. I am taking certainly back action points for my organisation. Sunil A rora - Delta Air Freight

C a r g o C o n n e c t ’s e n t i r e s e r i e s o f conferences has been deeply knowledge focussed and so was FMCGCONNECT. I congratulate the organisation for binding logistics and all other sectors to bring out efficiencies in business by focussing on overall industry related issues.

may 2019 - CargoConnect



ACFI organises conference on ‘India- Future Air Cargo Leader in South East Asia’


he Air Cargo Forum India (ACFI)’s conference on ‘India- Future Air Cargo Leader in South East Asia’ held on April 10, 2019 at The Leela Palace, New Delhi, witnessed participation of more than 200 delegates from the Ministry of Civil Aviation, Ministry of Commerce and Industry, Ministry of Finance, senior government regulatory agencies, and members of air cargo logistics trade and industry (Airlines, Freight Forwarders, Cargo Terminal Operators, Airport Operators, Integrators, Courier & Express Operators, Customs House Agents) and several associations connected to the Air Logistics Industry viz. FFFAI, ACAAI, EICI, DCCAA, BAR, DACAAI, etc.

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Pradeep Singh Kharola, IAS, Secretary, Ministry of Civil Aviation (MoCA), Government of India, graced the seminar as the Chief Guest, while Guest of Honor was Vandana Aggarwal, Economic Advisor, Ministry of Civil Aviation (MoCA), Government of India.

EVENTS Capt Anoop Sharma, CMD of SCI receives ‘NMD Award of Excellence’

FFFAI’s 10th EC Meeting zeroed in on the future of Customs Brokerage business


he 10t h Exec ut ive Com m it te e Me et i ng of t he Federat ion of Freight Forwarder’s Associations in India (FFFAI) was held from April 12 - 13, 2019 at Holiday Inn Hotel, Kolkata. Attended by all office bearers including a large number of EC Members of the Federation, the EC Meeting was majorly focused on interactions on the future of Customs Brokerage business in India at the backdrop of rapid changes in government rules and regulations, policies and

customer’s expectations. Apart from S Ramakrishna, Chairman, FFFAI, and Samir J Shah, Immediate Past Chairman, FFFAI; Ankit Kanodia, CA, S K Kanodia & Associates and Pulak Saha, Partner, PwC India in their addresses and presentations discussed on the various aspects and new avenues of customs brokerage and freight forwarding business in India, while responding to critical issues faced by the participants as well as the community at large.

Almajdouie Logistics wins Business Innovation Award


lmajdouie Logistics was honoured with the Mohammed Bin Rash id A l Ma ktou m (MR M) Business Innovation Award for their commitment to ingenuity and continu-

ous improvement. Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates Group, and Chief Executive of the Emirates Group presented the award to the CEO, Baheej Al Biqawi, during a ceremony at Dubai Opera own February 26. In attendance were more than 1,500 delegates, including dignitaries, government officials, and business leaders from the UAE and GCC. The accomplishment reflects the efficacy of the Almajdouie Logistics Spark idea submission platform.


apt Anoop Kumar Sharma, Chairman and Managing Director of The Shipping Corporation of India Ltd (SCI), has been awarded the prestigious ‘NMD Award of Excellence’ for his outstanding contribution to Indian shipping and the maritime industry for close to four decades. The Award and Citation was conferred at the prestigious ‘Grand Finale’ of the 56th National Maritime Day Celebrations 2019 held at Y B Chavan Auditorium, Mumbai. Sanjay Bhatia, Chairman, Mumbai Port Trust was the Chief Guest while P A Jennings, Chairman, International Group of P&I Clubs was the Guest of Honour at the prestigious event.

Another feat for Lufthansa Group


he Association of Former Members of Cong ress (FMC) paid tribute to the Lufthansa Group for its sustainable corporate actions. At its annual Statesmanship Award Dinner in Washington DC, Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG, accepted the organisation’s award.

may 2019 - CargoConnect


EVENTS Kerry Indev Chairman S Xavier Britto honoured with DLitt


X av i e r Br it t o, Chairman of Kerry Indev Group has been conferred the prestigious Doctor of Literature (DLitt) degree (Hono-



r i s C a u s a) b y t h e B o a r d o f M a n ag e ment of M/s Vels Ins t it ut e of S c ie nc e, Technology and Advanced Studies (VISTAS), in recognition

of his eminence, attainments and contributions in the field of L o g i s t ic s, a nd h i s philanthropic work benefitting the society at large. T he deg ree was pronounced by t he Founder Chairman of Vels University Dr Ishari K Ganesh at the 9th Convocation of VISTAS on April 23, 2019 and was awarded by Hon’ble Vice President of India Venkaiah Naidu.

Bahri to bolster its commitment to India’s maritime sector


ahri, a global leader in logistics and transportation, recently hosted its customers and partners at a gala dinner held in Mumbai, India, underlining the company’s commitment to strengthening partnerships and enhancing customer satisfaction and shareholder value. More than 250 senior leaders, executives, and representatives from across the shipping and logistics industry in India, as well as major export-import trading companies, attended the event that took place on March 29, 2019 at The Taj Mahal Palace, Mumbai.

Top-grade High Speed Doors from Gandhi Automations

owadays, many manufacturing industries need a controlled environment which limits the amount of dirt and dust in their premises. Medical instrument manufacturer, electronics and computer manufacturer, food industry, pharmaceutical industry and some military applications are but a few examples that have strict requirements for maintaining dust free environment. As such, High Speed Doors- automatic doors used for fast access between internal and external areas of buildings have become integral to every industry. A wide range of Prime High Speed Doors are available for various operations, including areas with special requirements for temperature control, hygiene, storage and handling of frozen foods.

76 CargoConnect - may 2019

Prime Atex High Speed Doors are used in explosion proof areas, while Deep Freezer Automatic Roll Up Doors are installed in cold storages, warehousing, loading bays and on conveyor systems. A t y pica l High Speed Door must have 2 out of the 3 following attributes: a. Made-to-order for exact size and custom features. b. Designed to withstand equipment impact (break away if accidentally hit by a vehicle).

c. Designed to sustain heavy usage with minimal maintenance. Does your manufacturer satisfy the above criteria for high-speed doors? If not, Gandhi Automations is the right choice. Gandhi Automations offer a variety of high-speed doors across a range of industries. Pr i me Hig h Perfor ma nce Doors by Gandhi Automations are designed and factory-made with German collaboration using state-of-the-art

and resourceful engineering technology for frequent use in high traffic areas with opening speeds up to 2.5 m/s. The high opening speed reduces time taken in movement of material, thus hastening the logistics process. Gandhi’s team of skilled engineers visit sites and recommends the most suitable rapid door to clients, manufactured and installed keeping in mind international standards. For further details, visit www.geapl.co.in

A premium product for the warehousing industry, containing the most relevant articles, information, data, trends, projections and figures for the entire year, packed in an aesthetically designed, hardbound and jacketed superior quality coffee table book format.



ogistics L e h t r o f ntent ead format o c t n a v e l to r t re s y s o a m e e n h a t n g i Presentinstry professionals indu

INDIA WAREHOUSING HANDBOOK 2019 India Warehousing Handbook has always been a grand success and is considered an asset for the entire warehousing industry. The next edition is only going to get bigger and better. We invite you to be a part of this excellent media product, highly appreciated by the industry, by booking your spot to place your advertisement message. For advertisement please contact:

Ajeet Kumar: 9810962016, cargoconnect@gmail.com, ajeet@surecommedia.com | Smiti Suri: 9711383365, smiti@surecommedia.com Mehuli Choudhury: 9810730347, mehuli.surecommedia@gmail.com | Rahul Arora: 9899211616, rahul.surecommedia@gmail.com


4/23B, First Floor, Jangpura-B, Mathura Road, New Delhi-110014

spotlight EFL pioneering in cross-border movement of cargo


ontinuing their strong momentum in cross-border movements, Expo Freight Limited (EFL) achieved another milestone in March 2019 as they pioneered a cross-border land-sea movement from Dhaka (Bangladesh) to Nhava Sheva (India) via Petrapole Border. Followed by the cross-border road transhipment in August 2016, under the BBIN Motor Vehicles Agreement signed in June 2015 by Bangladesh, Bhutan, India and Nepal, and crossborder air transhipment in November 2018, EFL offices in India and Bangladesh with creating tailor-made solutions for their global customers, once again partnered to facilitate the landsea movement in March 2019, for one of the leading European retail brands. Cargo weighing 4.1 tonnes from Benapole border of Bangladesh was trucked down through Petrapole border of

India to Nhava Sheva port in Mumbai for loading on a vessel set to a Europe. With the use of major airport and seaport gateways in Bangladesh and India to handle various modes of transshipments to European countries, EFL h a s c r eated t hei r n ic he i n handling cross-border movements, successfully. This development has further enabled the ease of transportation between the two countries to enhance trade routes and offers global brands the option to mix and match their production and logistics to streamline their supply chain with efficient solutions. At a time, when connectivity and visibility of the supply chain is driving investments into new technologies and infrastructure, EFL’s innovative solutions are an example of how companies can still achieve results on ground for the ultimate benefit of the customer.

We acknowledge the support and encouragement provided by our customer, on whose behalf we coordinated this cross-border sea initiative. We are also proud to be making history in freight forwarding and trade relations between Bangladesh and India by pioneering multi-modal transhipments between the two countries. S Senthilnathan

CEO, EFL Group, and Managing Director, EFL India

NTC Logistics unveils new service offerings We strive to meet every customer’s dynamic supply chain demands with accuracy, and aiming to become a $1 billion company by 2025. The new service offerings include identification of land, data analysis to ascertain project viability, permits and approvals; land aggregation and development, including civil and electrical works, logistics, and installation and commissioning.

K Chandramohan

Chairman & MD, NTC Group

78 CargoConnect - may 2019


he `1,000 crore NTC Logistics India Pvt Ltd (formerly Namak kal Transport), a market leader in the Over Dimensional Cargo (ODC) transport segment, has expanded its footprints in the logistics sector with the launch of two new offerings — Everrenew Energy and SCINNTC. While Everrenew is a project management solution to the renewable industry, SCINNTC delivers synchronised supply chain solutions. SCINNTC is expected to garner a turnover of `500 crore

in the next five years, while Everrenew will achieve `300 - `400 crore in next 2-3 years. NTC is the largest fleet owner in India in the niche Renewable Energy, Project & Engineering, and Freight Forwarding and Contract Logistic segment. To ensure upkeep of its fleet, the company has also invested in seven state-of-the-art service centres situated across the country, and has established its own institute to train drivers to ensure safety and best practices on the roads. So far, NTC has created a track record and set new benchmarks in global logistics through its innovative, technology-driven solutions, amid a rapidly changing industry scenario.





Warehousing | Logistics | Supply Chain | Material Handling

20-21-22 JUNE, 2019

Pragati Maidan, New Delhi, India

The only logistics event you ever need to visit!

Show Highlights 250+ exhibitors International pavilions 80+ First time exhibitors

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Air Cargo

EVENT: 15th Annual 3PL & Supply Chain


Apparel Supply Chain Conference Organised by: Surecom Media Date: May 16, 2019 Where: Shangri-La, New Delhi APPARELCONNECT 2019, will bring together more than 200 leaders and key stakeholders from India’s apparel supply chain, who will deliberate on the challenges, aspects and new avenues of apparel logistics in India. To know more visit www.apparelconnect.com

Summit: Europe ORGANISED BY: Eye For Transport DATE: October 14 – 16, 2019 WHERE: Sheraton Brussels Airport Hotel, Brussels, Belgium European 3PL & Supply Chain Summit is an annual meeting which brings together the leading C-Level 3PL executives and their manufacturer and retailer supply chain counterparts to explore the future of supply chain and logistics. Over 450+ senior supply chain and logistics executives attend the event every year. To know more visit www.events.eft.com/eu3pl

Event: Air Cargo Europe Organised by: MesseMünchen Date: June 4 - 7, 2019 Where: Munich

This year at the world’s largest exhibition and conference for the air cargo industry, four days of exhibition and a half-day conference will provide air cargo professionals the perfect platform to expand knowledge, network and initiate business. To know more visit www. aircargoeurope.com


Event: India Warehousing Show Organised by: Reed Manch Exhibitions Date: June 20 - 22, 2019 Where: Pragati Maidan Exhibition EVENT: 2nd International RAC India ExCon ORGANISED BY: PHD Chamber of

Commerce and Industry, NIRATA, and Orange Marcom Services DATE: October 17 – 19, 2019 WHERE: NSIC Grounds, Okhla, New Delhi RAC India ExCon is North India’s major exhibition of HVAC&R and Cold Chain. The exhibition is focused on the manufacturers and suppliers of Refrigeration, Air-conditioning, Cold chain and allied industries. The comfortable environment facilitates holding negotiations, meetings, signing of contracts. To know more visit www.racindiaexcon.com

EVENT: 8th India Cold Chain Show ORGANISED BY: Reed Manch Exhibitions DATE: December 04 – 06, 2019 WHERE: Bombay Exhibition Centre

(BEC), Mumbai, India India Cold Chain Show brings together Indian and international manufacturers and suppliers to meet end-users, distributors, consultants and other key industry players from across the globe. The show allows visitors and exhibitors to build new and strengthen existing contacts, learn new industry trends, technologies and upgrade their products and services. To know more visit www. indiacoldchainshow.com

Complex, New Delhi A platform where one can see the latest technologies available, make new business contacts and catch up with industry colleagues at the exhibition while getting first-hand exposure to latest market trends & insights. To know more visit www.indiawarehousingshow.com

Road Transport

Event: World Road Congress Organised by: World Road Association EVENT: Breakbulk Europe ORGANISED BY: ITE Group DATE: May 21 - 23, 2019 WHERE: Messe Bremen, Bremen, Germany

Breakbulk Europe is the world’s largest exhibition for the project cargo and breakbulk industry. Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialised industry. To know more visit www.europe.breakbulk.com

80 CargoConnect - may 2019


Date: October 6 - 10, 2019 Where: Abu Dhabi, United Arab Emirates

With more than 1,200 international experts, leaders in the field of transport and active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies.” To know more visit www.aipcrabudhabi2019.org

APPOINTMENTS JSW Infrastructure appoints Maheswari as new joint MD & CEO

JSW Infrastructure, the privately held ports arm of Sajjan Jindal’s JSW group, has elevated its in-house veteran Arun Maheshwari to the post of joint MD & CEO. Maheshwari has been associated with JSW Steel since November 1995 and has handled multiple roles within JSW Group. He has been responsible for sourcing major steel and power generating raw materials, framing corporate strategy and international marketing.

Don Colleran named as new CEO of FedEx Express

Stellar Value chain solutions appoints Sharon Thomas as CEO

Don Colleran, executive vice president and chief sales officer of FedEx Corporation, has been named the new president and chief executive officer of FedEx Express. Colleran has spent nearly 30 years with FedEx, serving in various executive-level positions at several operating companies and international regions. He most recently served as executive vice president and chief sales officer of FedEx Corp.

Stellar Value Chain Solutions has appointed Sharon Thomas as the chief executive officer of the contract logistics business. Thomas took charge of the role in February. Thomas comes with 36 years of business transformation experience spanning key verticals of e-commerce, retail, food, consumer goods as well as 3PL companies across geographies in UK, Europe and Dubai.

Alberto Nobis heads up DHL Express Europe

ACP Worldwide promotes Entwistle

DHL Express has appointed Alberto Nobis as its new CEO for Europe, paving the way for his return to the company’s global management board. Nobis has over 10 years of experience at DHL Express, including several management positions as CFO and CEO for the time-definite shipping provider of the Deutsche Post DHL Group.

Aviation management company ACP Worldwide has promoted Rod Entwistle to the newly created position of managing director. Entwistle has a total of 33 years experience in the aviation industry. He joined the ACP Worldwide in 1996 and has been responsible for the running of its day-to-day functions both in the UK and overseas.

Dr Iain Barton is the new healthcare head for Imperial Logistics

Imperial Logistics has named Dr Iain Barton; currently Imperial Logistic’s Healthcare Strategy executive based in Cape Town in South Africa, as executive vice president - Healthcare. Barton is a medical doctor with 10 year’s clinical practice experience followed by 22 years in developing and implementing best practice supply chains for major healthcare organisations.

B&H Worldwide ropes in Megan Laws to drive CustomerFirst! Programme

B&H Worldwide, aerospace logistics provider, has appointed Megan Laws as Customer

Care manager. Laws will be responsible for maintaining and enhancing the CustomerFirst! Programme, and will be based at the company’s London Heathrow headquarters.

Neil Dursley joins Chapman Freeborn

Chapman Freeborn Airchartering has appointed Neil Dursley to the role of chief commercial

officer. With more than 25 years of experience in global, customerfocused logistics companies, he brings extensive leadership and business development capabilities to the role.

may 2019 - CargoConnect



Chief Executive, Hactl

What is the biggest challenge you have faced in your career? Joining Hactl and following the footsteps of the legendary Mark Whitehead – particularly, with his sad and untimely demise, just within weeks after I took over as the Chief Executive. He left me an incredible legacy and gave me some sound advice. However, he also cast a big shadow and I honestly wondered if I could carry on from where he left off. But, our staff and customers have offered me immense support as I eased my way into the new post, and I now know that I have nothing to worry about. What is your success mantra? And, whom you consider your Guru in business? Many people have influenced me, but no one has had to that extent. However, today, my philosophy is formed from

the pearls of wisdom that I have acquired from people over the years. Indeed, I believe that our only limitation is our self-doubt – so, self-confidence is vital, but it must be based on experience and knowledge. Beyond that, it is not fair to ask of others what you are not willing to do yourself. Always treat others the way you would wish to be treated. And, remember that people are always your biggest asset; look after them, and they will look after you.

Apart from work, what are your other interests and hobbies? Apart from work, in the limited hours, I spend as much time as possible with my growing family. Besides, I like to go jogging every day – because I truly believe that a healthy mind resides in a healthy body. Any message you would like to give to those who aspire to work in this industry? Logistics is the biggest and most important business in the world, and air logistics is its pinnacle. We move sensitive goods every day that helps save and improve lives. The industry has become ever more sophisticated and larger. This spells a fantastic opportunity for those who are ready to work and has the imagination and can drive the industry to even greater heights. Its great fun and we even get paid to do it!

Self-confidence is vital, but it must be based on experience and knowledge... 82 CargoConnect - may 2019

Interviewed by Upamanyu Borah

Tell us about your journey so far! My journey at Hactl has been the best of my career till date. The industry has matured greatly since my early days at the airport over 20 years ago, but it’s still a dynamic and exciting business, and always full of wonderful people. I love my job, and I’m proud of the great team I have inherited. They are so dedicated and passionate about what they do.

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Cargo Connect May 2019  

Cargo Connect May 2019