1. business and industrial
2. logistics
3. air freight

Pages: 40
` 50/-
CargoTalk.in
ddppl.com
Vol. XV Issue 4; March 2015
Postal Reg. No.: DL (ND)-11/6002/2013-14-15. WPP No.: U (C)-272/2013-15
for posting on 04th - 05th of same month at New Delhi P.S.O
RNI No.: DELENG/2003/10642, Date of Publication: 03/03/2015
Port, customs authorities key to speed of business ....................................................08
MIHAN: A benchmark or a learning experience? ........................................................12
Realising the true potential of coastal shipping ..........................................................28
Cargo ‘alive & kicking’
With the opening of new routes, the specific and unique requirement for transportation
of live animals has also increased. CARGOTALK finds out what hurdles a consignment of live
animals entails, how these can be overcome and more.
K ALPANA LOHUMI
ew people understand the
large logistics exercise involved
in transporting animals. Logistics
fraternity, however, knows that
transporting animals needs a
strategy and knowledge necessary
to make the transportation safe
and humane. In India, live animals
are transported by via modes, ie air,
rail and road. Over the last 15 years
in the country, Live Animal logistics
technology has advanced dramati-
F
said, “Today, the industry has no
problem bringing Live Animals to a
warehouse and delivering it within
24 hours. Export of hatching eggs
and day-old chicks has increased
for all parts of world out of India.
Major movements out of India are for
Gulf countries, African countries,
Nepal and some of Fareast destinations.” He said increased inland
air transport has helped to connect
live animals shipment from different
countries and opened new routes
What LAR entails:
more airports and air freight stations
in hinterlands,” he said.
•
The International Air Transport
Association (IATA) has specified global standards for transportation of live
animals by air. The IATA Live Animals
Regulations (LAR) is an essential
guide in transporting animals by air in
a safe, humane and cost-effective
manner. Whether you are a shipper,
a freight forwarder, an airline, or an
animal care professional, the LAR is
a must for transporting animals
•
•
•
Up-to-date airline and government requirements pertaining
to the transport of live animals
Requirements related to
handling, marking and labeling
Information about the necessary documentation needed
when transporting live animals
A comprehensive classification
of animal species along with
the container specifications
required for their transport
Pradeep Panicker
Vipan Jain
Chief Commercial Officer – AERO
Delhi International Airport (P) Limited
Regional manager – Logistics, South Asia &
Middle East, Lufthansa Cargo
cally. Manpreet Singh Dahri,
Manager - Sales and Business
Development, Namaste Aviation,
for live animal logistics out of India.
“India is slowing moving towards
the top tier of live animal logisticsfriendly nations globally with
•
humanely and in compliance with
airline regulations and animal
welfare standards.
Guidelines for the non-air
transport of live animals
and plants
Cathay Pacific
gives Kolkata 2nd
freighter service
Cathay Pacific Airways is
introducing freighter service in
Kolkata, boosting the city’s trade
opportunities. From March 11, the
freighter will carry goods into
Kolkata late on Wednesday and
Saturday and lift cargo on
Thursday and Sunday. It will
operate a Boeing 747-400 aircraft
with a capacity of 100 tonne, but
Kolkata’s share is likely to be
25 tonne because it will go to
Delhi first.
Cargo James Woodrow,
Director, Cathay Pacific said,
“India is a very important market
for us. The new Kolkata service
will boost the flow of garments
and food products to and from
India, taking advantage of our
world-class facilities in Hong Kong
to connect to our comprehensive
global cargo network.”
The cargo situation at
Kolkata airport is not very bright
with the state-of-the-art facility
remaining largely unutilised. While
there are some exports — primarily leather goods to Europe and
the US and perishables like fresh
vegetables, frozen fish and live
crabs to Singapore, Taipei, Beijing
and Shanghai — the import
quantum is poor.
Contd. on page 6 Railway Budget: Cargo sector looks for more
CT
BUREAU
ailway Minister Suresh Prabhu,
presented his outlay for railway
freight sector in his maiden budget.
The proposed investment plan in the
Rail Budget for 2015-19 made provisions to facilitate connectivity to new
and upcoming ports through PPP
model. This has also been done
R
keeping in mind need for speedy
work on critical coal connectivity lines
to bring nearly 100 MT of incremental
traffic to Railways and facilitate transportation of coal to power houses.
To modernise operations
government announced logistics
parks and private freight terminals on
PPP model. Provision has been
made for special milk tanker trains in
association with National Dairy Board
and Amul to facilitate transportation
of milk through rail and boost movement of fruit and vegetables in
partnership with CRWC at 10 locations. Prabhu also assured close
monitoring of Dedicated Freight
Corridor Project (DFC) and
implementation of Eastern and
Western DFCs setting a target
of nearly 1,000 kms of civil
construction contracts.
As per the Budget proposal,
average speed of freight trains will be
enhanced. Freight rates of cement,
coal & coke, iron or steel & petroleum
products have been raised, but salt
has been exempted.
Highlights:
Plan to raise annual freight
capacity to 1.5 billion tonnes
Expected freight earnings:
`1,05,770 cr
Extension of logistics support to
various E-commerce companies
Paperless offices in Indian
Railways in five years
TECHNOLOGY
Cathay Pacific App
for cargo customers
athay Pacific Airways has launched ‘Cathay
Pacific’, a new cargo mobile application that offers
cargo agents, forwarders and customers greater convenience when tracking shipments, through their smart
phone or tablet device at any time and from anywhere.
In addition to accessing information relevant to the
operations of Cathay Pacific Cargo, customers can
also review the e-booking status of their shipment by
logging into the app.
C
MARCH 2015
CARGOTALK
3
Kale Logistics enters Iraq market
he international air cargo management system of
Kale Logistics, Galaxy, is now being actively used in
the Iraqi ground-handler, Azmar Air. Based at Sulaymaniyah
International Airport, Azmar will use the system for
e-freight compliance, warehouse management and
vehicle management, and it will be able to offer
real-time updates to customers’ trade partners and
EDI messaging. Galaxy is already in use by
handlers including Bahrain Airport Services, Mumbai
International Airport and leading international airports
in India, plus Lusaka and Ndola in Zambia amongst others.
T
“We are now
able to automatically
collect all data, create
better flight planning
and arrange the operations in advance. Our
customers including
airlines, forwarders,
GSAs are happy to see online updates and track shipments.
More importantly, we attained this without having to increase our
staff count,” said Indrajit Marath, General Manager, Azmar.
ZIMonitor for sensitive Reefer Cargo
IM integrated shipping services
has launched a new monitoring,
tracking and security services
package called ZIMonitor, specifically
designed for valuable and sensitive
cargo stowed in reefer containers. The announcement of the
launch was made at the Cool Chain & Temperature Controlled
Logistics Europe conference in Frankfurt, where it was
showcased between January 26th and 29th.
Z
The functions available include:
•
•
•
•
•
•
Tracking of multiple air waybills through Track
& Trace
Saving airway bills in My Favourites
Checking flight schedules and the latest arrival
and departure times
Checking shipment loadability
Cathay Pacific office locations
The latest news about Cathay Pacific Cargo
The online monitoring service is also
suited for other types of valuable or sensitive cargo such as for medical lab equipment; aviation products; perishable foodstuffs; wines and other alcoholic beverages; agriculture (seeds); electronics; art work and antiques;
as well as hazardous or IMDG code goods.
Some of the system features are:
•
The system has been successfully tested in an
international pilot with a global pharmaceutical company.
ZIMonitor is particularly suited for the Pharma industry,
designed to comply with GDP regulations and provide ongoing
data flow, alerts and automatic reports, along with a 24/7 professional response along the cargo route to prevent damages.
•
•
•
Online alerts to mobile and email, monitoring
temperature, humidity, route deviation and unauthorized
door opening 24/7 dedicated ZIM response team to
prevent damages
GDP compliance
Predefined reports for logistical & operational analysis
Reducing insurance costs
#1
IN CIRCULATION
&
REPORT
READERSHIP
EDITORIAL
Time to rise!
he Indian air cargo industry is in a
balanced upswing. After several
years of stagnation, the air cargo
business is growing again. Projections
and initiatives suggest that the country
has immense potential to position
itself in the international market.
However, this calls for collaborative
efforts from everyone, be it stakeholders, freight forwarders, airlines or
airport operators. The idea is to
develop more Indian airports as international sky cargo hubs and upgrade
them to international standard.
T
The Air Cargo Forum of India (ACFI)
summit held in the capital also
discussed the importance of designing
airports as integrated multimodal
hubs, so that they provide the best
quality services. We need more than
one multimodal international air cargo
hub with state-of-the-art infrastructure
to reduce logistics cost and dwell time.
Dwell time is the cumulative result of
various factors and Customs clearance plays crucial part in this regard.
At the summit, officials from the
Ministry of Civil Aviation (MoCA)
assured the industry of cooperation
from the government and asked the
ACFI to focus on three problems such
as congestion and dwell time, rather
than push through a big wish list.
In this issue, we have also focussed
on the challenges and measures of
coastal shipping. Despite its huge
coastline and port connectivity, India
is still lagging behind in exploiting the
coastal cargo potential. On the other
hand, the Jawaharlal Nehru Port Trust
has also introduced paperless
transactions at port gates.
From airports to cargo hubs
The Air Cargo Forum of India organised a seminar on ‘Transforming Indian
Airports into International Cargo Hubs’ wherein key players gave their views on
government, infrastructure and airline support for developing air cargo hubs.
CT
The initiatives which have been
taken by the Air Cargo Forum of
India (ACFI) for the development
of air cargo industry in India
is noticeable.
I assure all the help and cooperation from the government.
SanJeet
Editor
Harshal Ashar
Deputy General
Manager
Rajiv Sharma
National Head - Sales
Kalpana Lohumi
Abeer Ray
Reporter
Gaganpreet Kaur
Sr. Marketing
Co-ordinator
Tushar Upadhyay
Nityanand Misra
Design
Simran Kaur
Photo Journalist
U22210DL2012PTC230432
Renu Singh Parmar
Union Minister of Civil Aviation,
Government of India
Economic Advisor, Ministry of Civil Aviation,
Government of India
We need some sort of
efficiency and reduction in cost in order to make it
successful.
Indana Prabhakar Rao
CEO, Delhi International Airport Private Limited
It is necessary that the
produce reaches its desired
destination on time. Hence,
air is the best mode of transportation and air freight has
a significant importance.
Airlines need innovative
products with an objective of
reducing cost. However, it’s not about creating
more infrastructure, but to improve the efficiency
and bring innovation.
Rafeeque Ahmed
Ashok Rana
Circulation Manager
Pradeep Panicker
President, ACFI
Airline support is necessary
in the development of air
cargo hubs, but they cannot
work independently.
We need to work strategically. From airline point of
view, to develop hubs,
infrastructure at the smaller
airports has to be developed in tandem
growth with the capacity.
Sanjiv Kumar
Executive Director – Cargo, Air India
Infrastructure support is necessary for developing cargo hubs
and here space is an important
factor. We do have sufficient
infrastructure but we need to
change a way to measure
things so as to use it efficiently.
It’s a myth that India has lack
of infrastructure, the need is
to use the available infrastructure efficiently. ‘Make in
India’ would never be successful if cargo is sitting outside. Thus, customs should
play a role only when cargo
is moving out of the terminal, thereby reducing
the turnaround time.
Chairman, ACFI, Bengaluru Chapter & CEO,
Menzies Aviation Bobba Bangalore
Anil Kharbanda
Production Manager
Here the question is how
and what can be done to
convert Indian airports into
international sky cargo hub.
An integrated multi-modal
hub should include connectivity as well as accommodation and other services. It is
essential that related sectors such as access to
manufacture, business, and tourism and pilgrim
centres are also developed.
President, FIEO
Venkata Reddy
Vikas Mandotia
Nitin Kumar
Roohi Rais
Advertisement Designer
I would like to ask Air Cargo
Forum of India (ACFI) to
submit industry’s three
important issues before
MoCA for its active consideration. Three points would
be way better than a wishlist.
P Ashok Gajapathi Raju
Sound infrastructure till the
end point, rationalised policies
and networking are three
factors to make an efficient
cargo hub. There is a need
to make an end to end
value chain.
On these lines, there is an optimistic
feeling in the Indian cargo and logistics
SanJeet
industry as the sector is getting Editor
the
desired attention from the government
as well as the assurance that efforts
are being put in to clear congestion
and reducing dwell time.
Gunjan Sabikhi
Asst. Vice President
BUREAU
CARGOTALK is a publication of DDP Publications Private
Limited. All information in CARGOTALK is derived from
sources, which we consider reliable and a sincere effort is
made to report accurate information. It is passed on to our
readers without any responsibility on our part. The publisher
regrets that he cannot accept liability for errors and omissions contained in this publication, however caused.
Similarly, opinions/views expressed by third parties in
abstract and/or in interviews are not necessarily shared by
CARGOTALK. However, we wish to advice our readers that
one or more recognized authorities may hold different views
than those reported. Material used in this publication is
intended for information purpose only. Readers are advised
to seek specific advice before acting on information contained in this publication which is provided for general use
and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No
part of CARGOTALK or any part of the contents thereof
may be reproduced, stored in retrieval system or transmitted
in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the
article is taken from another publication. An exemption is
hereby granted for the extracts used for the purpose of fair
review, provided two copies of the same publication are sent
Tushar Jani
Vice President, ACFI & Chairman, DCSC
to us for our records. Publications reproducing material either CARGOTALK is printed, published and edited by SanJeet
in part or in whole, without permission could face legal on behalf of Durga Das Publications Pvt. Ltd., printed at
Cirrus Graphics Pvt. Ltd., B-62/14, Phase II, Naraina
action. The publisher assumes no responsibility for returning
any material solicited or unsolicited nor is he responsible for Industrial Area, New Delhi - 110 028 and published at
72, Todarmal Road, New Delhi - 110 001
material lost or damaged. This publication is not meant to
Tel.: +91 11 41669575, 41669576 ; Fax: +91 11 41669577
be an endorsement of any specific product or services
E-mail: [email protected], Website: www.cargotalk.in
offered. The publisher reserves the right to refuse, withdraw,
MUMBAI:
amend or otherwise deal with all advertisements without
504, Marine Chambers, 43, New Marine Lines, Opp. SNDT College,
explanation. All advertisements must comply with the Indian
Mumbai - 400 020, India, Ph.: +91-22-22070129; 22070130
and International Advertisements Code. The publisher will
MIDDLE EAST:
not be liable for any damage or loss caused by delayed pub- Durga Das Publications Middle East (FZE); Z1-02, PO Box: 9348, Saif
Zone, Sharjah, UAE; Ph.:+971-6-5528954, Fax: +971-6-5528956
lication, error or failure of an advertisement to appear.
AIRPORT
MARCH 2015
CARGOTALK
5
MIAL rated e-freight compliant by IATA
Mumbai International Airport Limited has been rated e-freight compliant by IATA after it successfully achieved its
initiative aim at minimising and subsequently eliminating the vast quantities of paper documents needed for its air
cargo operations in Mumbai.
CT
BUREAU
VK-Mumbai
International
Airport Limited (GVK MIAL)
has been rated as e-freight compliant by the International Air Transport
Association (IATA) for adopting
paperless initiatives at the
air cargo operations in Mumbai an initiative aimed to minimise the
vast quantities of paper documents
the air cargo industry relies on to
support movement of air freight.
G
Manoj Singh
Vice President and
Head (Cargo) - MIAL
AISATS accredited
with IATA’s ISAGO
certification
Air India SATS Airport
Services (AISATS) received the
IATA Safety Audit for Ground
Operations (ISAGO) certification
for adhering to IATA’s stringent
and high safety standards at The
Rajiv Gandhi International
Airport, Hyderabad as well as
their headquarters at Mumbai.
The certification ensures
safer ground operations, fewer
accidents and injuries, uniform
audit processes, eliminates
redundant audits and effectively
improves quality standards. Key
parameters like Organisation and
Management (ORM), Load
Control (LOD), Passenger and
Baggage Handling (PAB), Aircraft
Handling and Loading (HDL) and
Aircraft Ground Movement
(AGM) were taken into account
by IATA while certifying AISATS.
Willy Ko, CEO, AISATS
said, “This is just the start of our
journey. Our other business
units are working on achieving
this certification too. ”
The e-freight compliance by
GVK MIAL involves air carriers,
ground
handlers,
shippers,
customs authorities and freight
forwarders to effectively streamline
processes, cut costs and improve
speed and reliability. This has resulted in expeditious processing, quality
improvement and substantial time
savings in cargo operations. The initiative will help in eliminating the use
of paper documents.
“We would like to thank the
entire trade fraternity for making
this globally accepted industrywide initiative a great success at
Mumbai and our technology partner
Kale Logistics and stakeholders
Lufthansa Cargo, Freight Wings
and Khimji Poonja for official
participation in the e-freight
audit process,” said Manoj Singh,
Vice President and Head
(Cargo) - MIAL.
6
COVERSTORY
CARGOTALK M A R C H 2 0 1 5
Smooth and safe transit for animals
Contd. from page 1
Talking about the requirements
for transportation of live animals,
Pradeep
Panicker,
Chief
Commercial Officer – AERO, Delhi
International Airport (P) Limited, said,
“Air transportation of live animal is
more organised and is governed by
IATA’s Live Animal Regulations, under
proviso of which airlines book, handle
and uplift. The animals can be carried
either through passenger terminal on
payment of applicable charges or
they can be booked in cargo terminal.” “Few airlines even allow speci-
are spreading the awareness on pet
relocation.”
•
The IGI Airport has recently
opened a helpdesk to ensure a
friendly journey for pets, taking care
of formalities including quarantine,
passport, Custom clearance, travel
(domestic and international), flight
booking, pick, drop, inspection and
consultation. The Help Desk also
provides physical handling of the pet
during check-in at airline counter and
facilitates security.
Talking about the current
scenario of live animals logistics
industry in India, Vipan Jain,
Regional manager – Logistics, South
Asia & Middle East, Lufthansa
Cargo, said, ‘The live animal industry
in India is still quite limited. The business is more related to expiates moving with their families in India and getting with them their pets such as cats
and dogs. Hence, there is a minor
increase of pet movement in the
recent years.” Corresponding to this
increase, Jain said, “There is also an
increase of professional touch and
specialised people in this sector who
Cathay
Pacific
Airways
recently uplifted a shipment
of five horses from Mumbai to
Colombo
Manpreet Singh Dahri
Manager, Sales and Business Development,
Namaste Aviation
“A major challenge is correct
documentation related to various
country regulations pertaining to
Anand Yedery
fied type of pets in the passenger
cabin. Cargo terminals at the airport
generally have dedicated area for
handling of the live animals,”
he added.
Animals on the move:
imports as well as exports of pets.
At some airports like CCU, live cargo
movements are mostly constrained
up to live crabs to Far East and on
very few instances, live pets are
handled for both import and exports.
Anand Yedery, Regional Cargo
Manager – South Asia, Middle East
& Africa, Cathay Pacific Airways said,
“The infrastructure at some airports
or cargo terminals is a challenge.”
Regional Cargo Manager – South Asia,
Middle East & Africa, Cathay Pacific Airways
at the international and domestic
airports in comparison to
western countries.”
What is required to make
animal logistics easier?
According to Panicker, the
pet has to be carried in kennel of
appropriate size and strength having
arrangements of food and water and
proper locking arrangements to prevent its escape. Handling and carriage under proper ambient temperature as well as oxygen supply
should not be ignored at any cost.
“During air carriage, a pet may face
Challenges ahead
Despite various developments
with regard to animal transportation,
there are several challenges yet
to be addressed. Only six airports
in India have animal quarantine
facility and can handle complete
Process of transporting live animals:
The shipper has to carry the record certified by a veterinarian claiming the animals
is physically fit to fly and NOC from wild life department. During the flight, the pet
is required to be placed on an IATA specified packing ensuring to give it enough
space to turn about normally while standing and to lie. There are more 20 regulatory
processes involved in global live animal movement.
67 showjumping horses were
transported on Qatar Airways
Cargo freighters from Liège,
Belgium to Doha in November
2014
Hong Kong Air Cargo Terminal
Limited (HACTL) has handled 62
showjumping horses by carrier
Emirates SkyCargo
Live animal cargo movement at IGI Airport
Year
Export
Import
2013-14
274
106
2014-15
174
86
(Figures reflect number of live animals)
Growth factors
Dr S K Choudhary, Director
(PetFly) Veterinarian & International
Pet Travel Expert, said, “Now a day’s
pet owners are concerned about
their pet's well being and safety during the travel. Thus, the industry is
still learning and evolving with latest
trends and equipments for pet's safety and comfort.”
“People moving back to India
on transfer of residence are entitled
to get a maximum of two pets,”
Jain said.
followed for import and export
in the respective country
By following simple tips
provided by expert veterinarian
and pet travel consultants
Dr S K Choudhary
Director, (PetFly) Veterinarian & International Pet
Travel Expert
health checks and the necessary
approvals from the government or
designated veterinarian before the
commencement of the journey,” Jain
said, adding, “The shipper must
check for the requirement before
sending their animals to and
from other countries.”
When asked about challenges
you face while transporting live animals, Choudhary said, “Pet friendly
cabs are difficult to find and airport
staff is also not pet friendly. Facilities
for pets are still lacking by far
longer duration of air travel with
intervening transit halt at an
airport too. The concerned airline
should take care of its all needs such
as walking, freshening, refilling of
food and water bowls and also
medical needs, if required,” he
said. Choudhary listed thefollowing
points that should be considered
before relocating animals to domestic
and foreign cities:
•
Utmost safety and comfort
•
Creating awareness about
travel of pets, which is now
becoming a general trend
•
Informing pet owners about the
rules and regulations to be
However, there are several
factors that can drive growth
in this sector. The transportation
has become more user friendly with
few companies providing exclusive
facilities to transport pets.
According to Jain, modern infrastructure, separate animal clearance terminal or lounge, more
trained professionals in industry
and more transparency and electronic mode of various permissions
will facilitate the customers and
drive growth in this sector.
“Growth in this sector cannot
be created however a combination
of simplified process, better facility
and events like the Derby, dog
shows, etc can drive further growth
in this sector,” Yedrey said.
“Establishment of proper
care and handling facilities at
the airport for departing, arriving
and transiting animals and
simpler regulatory clearances
can alsoadd to the growth,”
Panicker added.
8
INTERVIEW
CARGOTALK M A R C H 2 0 1 5
Port, customs authorities key to speed of business
Speed of customs and port operations is critical in deciding the pace of imports and exports as any delays
tend to have a ripple effect. Talking about the speed of port operations in an interview with CARGOTALK
Vishwapati Trivedi, Chairman, National Shipping Board says while bigger ships mean better business Indian
ports have limited capacities.
conditions. Since private ports do
not have to go through too many
procedures, they have been quick
in evacuating cargo and hence
they has been a shift of cargo
from public ports to private ports.
A BEER R AY
Public ports have not
been able to perform
Q
as well as the private
ports. What factors
would account for that?
The major ports, have in the
last one-and-a-half years, been progressing pretty well and because the
averaging is done, some ports have
done very well, while some have not
been able to. So the averaging gives
the impression that these ports are
not doing as well as the private ports,
but some of them are doing very well.
JNPT has been asked
to introduce
‘paperless’ gate-in
operation to ease gate
delays. What are your
views?
Q
Vishwapati Trivedi
Chairman
National Shipping Board
There has been a
shift of cargo from
Q
public ports to private
private train operators can also come
into the picture.
The Prime Minister
has stressed on
Q
port-led development.
What are the steps being
taken to achieve
progress in this regard?
JNPT, in fact, has in the last two
or three months been asked to operate at a paperless level. The Ministry
had planned to use it as a ‘proof of
concept’ and replicate it to all other
major ports. Though they have done
something, there is an issue of digitising the entire transaction. JNPT
The Prime Minister is not only
worried about the ports; he has tied
it up with the development of hinterland of the ports. Gujarat has 41
ports, but they all have some anchor
industry to cater to and they are all
doing well. For example, when the
PM took charge and floated the idea
of port-led development, the Ministry
also took note and got the SEZ sanctioned just behind JNPT. That is
going to be a big industrial township
was advised to go
for an electronic gate
pass instead of a physical
gate pass. Though JNPT
is working on that but they
need a lot of cooperation from
the customs.
itself,
which is there
because of the port; so
that’s port-led development. The
new concept of port-led development
at the hinterland will itself generate
much cargo.
The Ministry has
been thinking of
Q
connecting ports with
Does the government
have any plans to
Q
develop coastal shipping
railways. Has there been
any development in
this regard?
for movement of cargo?
a suspicion, they can always check.
So the concept of ‘Green Channels’
was established at many ports, but
not all. Now as shifting of cargo
through coastal movements is a big
challenge; the government has
brought forward an incentive to promote the same in the form of a subsidy scheme to shift cargo from rail /
road to the coastal route.
What are the current
plans of the
Q
government regarding
development of ports?
The GDP of the country is
surging due to renewed investor
confidence in the country.
The projected cargo as per
Rakesh Mohan Committee is
already obsolete. The cargo profile
ports. Why is that?
In the cargo sector, there is
always, as they say, 95 per cent by
volume and 70 per cent by value. As
the GDP of the country goes up and
as we exert more and more of our
choices and import and export to
meet our needs, the total throughput
cargo is definitely going to go up.
Some ports have developed very
smooth systems of doing logistics,
while there are others which
have tried very hard but have not
yet been developed.
The non-major ports have been
able to do a far better clearance of
cargo in terms of time. In the major
ports sector, some ports have done
a great job. For example, JNPT has
done very well in terms of efficiency
of evacuation, though there are some
issues in clearing it to the hinterland.
Exports are fast because export is
not so much subject to scrutiny and
paperwork; imports get stuck.
The two critical operators in the
fast clearing of imports are the port
guys and the customs authorities.
Due to the customs authorities being
slow in clearing processes there is a
problem, for example, trucks do not
move out fast, the storage capacity
at the port is not evacuated or
cleared fast due to which the new
stuff cannot be dumped again.
Also in the ports on the East
side, there has been a large spurt in
the last four months in imported coal
due to various reasons. The power
plants are also under pressure to
increase their plant load factors and
capacities and they have been using
a lot of imported coal that mostly
comes from Australia, Indonesia or
lands on the East coast. All those
ports are choked to capacity and bigger the ship that comes more is the
efficiency in terms of pricing and
costing. But our capacity to dock big
ships is also limited. The government
has been trying to build up extra
space for offloading. Imported coal
spurt is very periodic and so people
operating at the ports are a bit
reluctant in putting permanent
infrastructure to import so much as it
is difficult to put a structure which will
serve for 30 years for a demand
which is expected to last only five
years. Our ports have to make
do with the current capacities and
gear them for at least for five to six
years according to the needs. In the
major ports, there is not too much
flexibility because they have to
go through procedures as everything
is subject to some regulatory
Some months back, the
Ministry of Shipping moved a note to
have a port railway company which
will connect ports or construct
railway lines connecting the same to
the main trunk route or even buy or
lease some rakes. Also since
they are basically targeting
coal, once this company is
established the monopoly over
coal by the railways is the first
issue that would be discussed
and the monopoly of the Railways
may be threatened and then the
Talking about coastal cargo, it
has immense potential; in the US it
is called short sea cargo. All these
ports are in a custom bond area and
there are transaction costs along with
other formalities that pose minor
obstacles. So the government has
thought of bringing coastal jetties outside the customs bond area,
but since that takes time the government has floated a scheme for
all those ports who wanted to invest
in coastal shipping in the form of
‘Green Channels’. The coastal cargo
is brought and sent through the
Green Channel. If the customs have
will be far beyond what he has
projected. So the Ministry, in fact, is
now using that extra bullish c
argo growth to decide the port
capacities rather than what was
set earlier. The Ministry is already
planning along these lines and
a lot of such projects are in pipeline,
but the same cannot be applied
to all ports.
Port capacities will need to be
increased, made efficient and
calibrated in a manner that typical
cargo goes to these ports. Every
port cannot have every kind of cargo.
As we do not have big ports as JNPT
on the East coast, so the government
is planning to build a big port
in Dubrajpur. Several new small
ports are coming up; we have a
great country which has huge
potential and the current emphasis
on ports as infrastructure is being
given high importance. The latest
in line is the Sagarmala Project
which the Prime Minister has defined
as port-led development.
10
INTERNATIONAL
CARGOTALK M A R C H 2 0 1 5
IATA takes World Cargo Symposium to China
With ‘Improving the Customer Experience’ as its theme, IATA is looking to harness the creative brilliance in the
air cargo industry. With the event taking place in Shanghai IATA will also get a chance to work closely with the
Chinese air cargo community.
CT
BUREAU
Are you optimistic
Q
about the air cargo
business in 2015?
I am optimistic on volumes
but getting revenues back is
still proving hard. After several
years in the doldrums, the cargo
volumes expand strongly in 2014
with 51.3 million tones. But
the revenue, at $62 billion, is still
$5 billion less than the peak
year in 2011. So we are working
harder to deliver more, but earning
less for it, which is not an
enviable business model.
The changing freight environment is something we all have been
aware of for some time now. Nearshoring, trade protectionism, and
competition from other modes are
trends that are not going to go away
any time soon. So the industry
needs to be ready and adjust to the
new reality.
What is the thinking
behind this year’s
Q
WCS theme of ‘Improving
What are you most
looking forward to at
Q
the WCS?
the Customer
Experience’?
What are the main
Q
reasons for bringing
the 9th World Cargo
Shippers are demanding a
much higher-quality service, and the
air cargo industry is evolving to
match those expectations. We are
seeing more and more complex time
and temperature-sensitive shipments, dangerous goods that must
be handled with great care or vulnerable commodities that must be
moved with speed and discretion.
Therefore, as the user demand
becomes more sophisticated, air
cargo facilities and processes are
adapting. We are no longer about
speed, quality control is crucial.
There’s always a lot to enjoy
and plenty of thought-provoking
discussion at WCS. We always
get some fascinating key speakers,
and the discussion tracks often
illuminate a challenge, new trend,
or best practice.
Symposium (WCS)
to China?
It is exciting to be coming to
Shanghai. We all know about China’s
export strength, but its import market
is becoming no less important. China
is going to move an extra one million
tonnes of cargo a year by 2018.
However, this will generate some sig-
nificant quality, reliability and security
challenges and we want to work
closely with the Chinese air cargo
community and regulators to help
them smoothly leap those hurdles.
Glyn Hughes
Global Head
IATA
But we need to go further in
understanding our customer’s needs.
That’s why, as part of our preparations for WCS, we are conducting our
first shipper survey for at least five
years. We want to know why shippers
use air cargo and what their
experiences are, and then only we
will be in a better position to improve
their experience.
US port strike hits exports
But this year I am particularly
excited by the first ever Air Cargo
Innovation Awards. IATA is looking to
harness the creative brilliance in the
air cargo industry by offering seed
investment up to $20,000 for an idea
that increases the quality or decreases the cost of operations, increases
revenue or optimizes capacity.
$10,000 will also be available for two
runners-up.
The winners will be voted by
the WCS delegates at the closing
plenary, from a shortlist judged by an
independent panel of industry
experts. It should be a fascinating
and uplifting finish to what promises
to be a really excellent and memorable WCS.
Another freighter to
Burkina Faso, Africa
As India’s key exports suffer due to the shutdown at the US West
Coast ports, exporters talk about the various challenges that they Emirates SkyCargo has added the capital
have to face because of the strike by the port workers and the impact city of Ouagadougou in Burkina Faso,
it would have on the trade relations between the two countries.
Africa to its existing list of destinations.
CT
The existing port shutdown,
triggered by a bitter dispute,
is a cause of concern for
Indian exporters.
BUREAU
he long-standing dispute on the
US West Coast between
International Longshoremen and
members of the Warehouse Union
has stalled the export of products
and items from India to various
countries. The strike that has been
on for over two months has lead to
ports becoming congested and
goods from vessels not being
unloaded for further transhipment to
other countries. As there is an imminent fear of the ports being shut
down, exporters from India are facing
losses due to port delays as a result
of which the supply chains between
the US importers and Indian
exporters have been badly hit.
T
US is an important market for
Indian chemical products as it
Satish Wagh
Vice Chairman
CHEMEXCIL
accounts for around 11.6 per cent
(USD 1.523Bn) of total exports
falling under the purview of the
Basic Chemicals, Pharmaceuticals
& Cosmetics Export Promotion
Council (CHEMEXCIL).
“The slowdown will hinder
the ability of US importers to meet
end-user requirements. Besides,
the delays in ports will also lead to
piling up of demurrage and detention charges which will hurt margins
and competitiv ness. If this stalemate continues, it might adversely
impact flow of repeat export orders
for Indian exporters. Since India
and US are currently strengthening
their partnership in various fields at
the leadership level. Therefore, it is
in the interest of Indian exporters
that an agreement between shipping companies and dockworkers
is arrived and the situation is normalised,” said Satish Wagh,
Vice Chairman, CHEMEXCIL
CT
BUREAU
he capital city of Ouagadougou
in Burkina Faso, Africa, has
been added to Emirates SkyCargo's
destinations, becoming the airline’s
27th destination in the
T
continent.
The new route begins in Dubai
with stops in Ouagadougou,
Dakar and Frankfurt before
returning to Dubai.
The 777F aircraft being
operated on the route can carry
103 tonnes of cargo. With a range
at maximum payload of almost
5,000 nautical miles, the aircraft
easily covers the nonstop
10-hour sector lengths. The flight
will leave Dubai every Tuesday
morning at 9 am and return the
next morning.
Emirates will bring
imports to Burkina
Faso, such as pharmaceuticals and electronics from Asia and return to
Frankfurt and Dubai with local
Burkina Faso products such as fresh
mangoes and beans. “We offer
thousands of tonnes of capacity
each week on our routes into
Africa and the new scheduled
freight service to Ouagadougou
will take Emirates SkyCargo's import
capacity to Africa to 3,700 tonnes
per week,” said Nabil Sultan,
Divisional Senior Vice President
Emirates SkyCargo.
12
DEBATE
CARGOTALK M A R C H 2 0 1 5
MIHAN: Is it a benchmark
Multimodal International Cargo Hub and Airport at Nagpur (MIHAN) was conceptualised as a logistics project
with the Special Economic Zone (SEZ) as a supportive facility. The project has been path breaking and first-ofits kind. However, it has also struggled with bottlenecks to find a footing since its inception in 2008. CARGOTALK tries
to explore if this project served as a learning experience for others or if it has set a new benchmark.
K ALPANA LOHUMI
Sanjiv Kumar, Executive Director-Cargo, Air India
The initiative to develop Nagpur as Multi Modal International Cargo
Hub (Mihan) at Nagpur is a promising start for Indian Airports to develop
as multimodal cargo hubs with integrated road and rail connectivity
as also a developed industrial and services pockets nearby to cater
to the hub.
One of the key features is to have a viable model which
would take into account the cost of investment and
development of the multimodal cargo hub.
The first step has been taken and all action needs to be taken
for making MIHAN a success story before venturing into developing
new multimodal cargo hubs.
The challenge is to ensure the success of
Multimodal International Cargo Hub and Airport
at Nagpur (MIHAN) and replicate the experience
derived from this site in one or two more airports in
the country. Out of the airports to be selected
for such a project, at least one should preferably
offer sea connectivity.
Tulsi Mirchandaney, Managing Director, Blue Dart Aviation
So far, we have no evidence to corroborate the viability
of Nagpur as a model for a hub, but I do agree that multimodal connectivity is one of the key imperatives for a competitive hub in India. Successful hubs like Dubai and
Singapore are useful benchmarks, but India is uniquely positioned because of its geographical size and demand, and
the opportunity for domestic distribution as well as manufacturing for exports are immense, with our attributes and
potential more comparable with China and the USA.
However, we first need to set right our operating environment for
air cargo transportation. Air Cargo and Air Express need to achieve for
India what mobile communication has accomplished for the country –
connecting every citizen. This will provide the momentum for growth.
High quality services delivered at competitive rates and policies to attract investment
into our segment of aviation are vital. Our policy of 74 per cent FDI in cargo airlines is a
non-starter because it still inhibits international operations, whereas foreign airlines are
free to operate into India under the Open Sky Policy of 1992, giving them an unfair advantage over an Indian carrier.
Finally, it is important to recognise that cargo airlines must co-exist with business and
commerce, and cannot be relegated to isolated airports. Cargo airlines provide the essential connectivity for economic development and are essential at major airports. A separate
policy within the framework of the Civil Aviation Policy must be framed for cargo airlines
to include FDI, allocation of airport infrastructure and facilities, the regulation of tariff for
such essential infrastructure, and service levels of key performance indicators at airports.
There have to be compelling reasons for airline to shift from their
current preferred hubs to the new hubs in India. Multi-modal connectivity
in itself is not a sufficiently compelling reason. It is essential to grow the
domestic and international distribution strength of the country.
highlights:
The initiative to develop Nag
International Cargo Hub (MIHApur as Multi Modal
promising start for Indian Air N) at Nagpur is a
ports to develop as
multimodal cargo hubs
It’s time to repeat the
MIHAN pro
airport with sea connectivity pre ject in one or more
ferably
Multimodal cargo hub
s are a need of the hour especially
in India due to severe infrastruc
ture constraints at
existing airports
However, Cargo hubs
can be create
only if infrastructure is developed d but it will develop
simultaneously
Air Cargo and Air Express
need to achieve for India what
mobile communication has acc
country, i.e. connecting every citi omplished for the
zen
Multi-modal connectivi
ty in itself is not a sufficiently
convincing reason, there has to be
for airlines to shift from their cura undeniable reasons
and their comfort zones to the newrent preferred hubs
hubs in India
The Hub airports sho
uld have manufacturing centres
nearby for feeding these hubs wit
h airfreight for export
and import value additions
These hub airports sho
uld also be
rail and road connections for a well connected with
smooth multimodal
transportation
DEBATE
MARCH 2015
CARGOTALK
13
or a learning experience?
KS Kunwar, Director General, Air Cargo Forum of India
Nagpur MIHAN project has not picked up since its
establishment by the Government of Maharashtra because
neither it’s near the manufacturing areas nor well connected
with international air routes of leading airlines as well as
domestic carriers. When it comes to establishing a
multimodal air cargo hub following ingredients are must to
consider;-
•
Such airports should have well established air connectivity with many international
foreign airports/cities as well as with many
domestic airports/cities with the help of international airline operations and national carriers to reach as many as national airports.
It should also have nearby satellite airports to perform hubs and
spokes.
•
The Hub airports should have manufacturing centres nearby for feeding these hubs
with airfreight for export and import value additions.
•
Hub Airports should also prove to be international transhipment
hubs with shortest dwell time fastest connectivity.
•
These hub airports should also be well connected with rail and road connections for
a smooth multimodal transportation.
•
The success of a Hub airport lies with a simplified processes duly
supported by a well established Cargo Community System for online
transaction.
I suggest Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bengaluru airports should
be considered for developing multimodal international cargo hubs in India. Government
is also considering on the above similar lines.
Ravinder Katyal, Director, UTi
Creating more Indian airports as multimodal cargo hubs is
the need of the hour. The Nagpur MIHAN initiative will help
improving the operational excellence, better control, cost control
and will de-congest the main airport terminals.
Consolidation is the way forward concept and
multimodal cargo hubs will help. I suggest this
initiative should be considered across all the
industrial hubs and cities in India.
Sujeen Paulose, Director Commercial, Hercules
Aviation
Cargo hubs have to be increased in India
but we should study why OZHAR Nasik failed.
The whole airport was very close to BOM and
HYD but due to limited infrastructure, less confidence of the exporter, non realisation of drawbacks to exporter, non bonding facility between
major airports, exports good allowed out of BOM
under bond which led to the failure.
We can create Cargo hubs but it will develop only if
infrastructure is developed simultaneously. All agencies
have to come together and make this happen. We should
not make polices which will only develop some airports
and only grow them as they have been privatised.
Right now, all policies is being made in overview of creating more
and more traffic to airports which are already busy and not even have
space to cater.
Huned Gandhi, Managing Director India,
DACHSER India
Multimodal cargo hubs are a need of the
hour especially in India due to severe infrastructure constraints at existing airports and
the shipments are having to spend a lot of
time in transit from the shipper's location to
the gateway airports and vice versa. This is
also leading to additional cost which is highly
unproductive for the industry.
MIHAN is a very interesting project and has several unparalleled
advantages like strategic location i.e. Central India, excellent infrastructure
i.e. manufacturing facilities, SEZ's to name a few. Also the government has
directed the state-run Central Warehousing Corporation (CWC) to set up
air-freight stations in 10 cities which I believe, is a great initiative towards
expeditious handling of airfreight shipments.
Another important area is to de-congest the roads leading to and from
the cargo terminals to reduce the lay time of trucks waiting to load/unload
import and export cargo. Here, infrastructure will play a major role in India's
development and this is where the industry needs specific attention.
Sandeep Pingle, Country Manager, Rhenus Logistics India
MIHAN as a concept was excellent and the aim to exploit
the central location of Nagpur and convert the present airport
into a major cargo hub with integrated road and rail connectivity
was very promising.
The idea was to make Nagpur an international
air cargo hub, with aircraft flying across
the globe stopping here for refueling, while
the cargo got redistributed. With long haul flights
now being available, the need of stopping midway does not arise.
Still, Nagpur due to its central location can become a domestic multi modal cargo
hub. Unfortunately since 2008, this project has been mired into numerous controversies
and is not making headway in terms of its completion.
It would be good to develop the existing international
airports at Delhi and the New International airport at Mumbai
as the cargo hubs due to proximity to the industrial/commercial
hubs, port and advantage of carriers already operating from
these airports.
Raajeev A Bhatnagar, Chairman, UFMI
India would need more than one Nagpur and
the reason for this is our geography and multiple
airports and ports we operate from. So creating
only one hub at Nagpur is not an answer, other
places to consider could be one down south and
one in either Eastern or Northern corridor.
More than creating a Cargo Hub,
what is important is an efficient connectivity between the cities, airports and ports for smooth
movement.
Currently our infrastructure, that is in terms of road or rail transportation
is not at its best, for example it still takes three days for cargo to move
from Delhi ICD to Nheva Sheva by road, and this can be improved
upon by improving the road infrastructure, single point of entry
and exit, reduction in paper work, and then efficient handling at the airport
or port. By building the world class infrastructure we would be able to reduce
the cost of logistics which currently is the highest in India.
14
FAMILYALBUM
CARGOTALK M A R C H 2 0 1 5
PHD outlines the needs of
Indian air cargo sector
PHD Chamber of Commerce recently organised a PHD-GMR Aviation 2015 Summit with
the aim to discuss new regulations and policies so as to address the key challenges of the
aviation sector. The conference saw a discussion on guidelines and suggestions by the
industry on setting up Air Freight stations (AFSs) across the country.
Efficient Cold Chain:
Lifeline of perishables
The one-day conference on Cold Chain organised by the PHD Chamber of
Commerce & Industry saw a discussion on the challenges facing the sector.
The participants discussed the need for latest technologies, trained
manpower and upgradation of infrastructure facilities such as roads and
power so as to meet the demand of food in the country.
16
GUESTCOLUMN
CARGOTALK M A R C H 2 0 1 5
A portly challenge: Questioning the benchmark
It is time to question the old parameters instead of blindly following on the line of ‘Emperor’s New Clothes’,
notes Mihir Das, Independent Port Consultant and faculty member, CEPT University. He argues that it is
not possible to advise a common benchmark for all ports as uniform expressions of performance do not
address the same requirements for individual ports.
EOs of outstanding service
organisations spend little time
simply setting profit goals or focusing
on market share, which had been,
the management mantra of the
1970s and 1980s. Instead, they
understand that in the new economics of service frontline workers and
customers need to be the centre of
management concern.
ues on ‘soft’ measures thus, establishing relationships between profitability, customer loyalty, employee
satisfaction, loyalty and productivity.
C
Ports are now a very large part
of the Indian infrastructure with Rs
2.77 lakh crores set aside for the
12th plan and an expected EXIM traffic in the range of three billion tonnes
by 2020. Thus, building and managing the existing and added infrastructure, no doubt, remains a daunting
task. The port competition has
reached a fever pitch and thus the
effectiveness – process modification
or re-engineering has to be put in
priority arena – in addition to the
right kind of performance measurement practices.
Ports nurture a paradigm of following indicators suggested by UNCTAD about two decades ago. They
have evolved and now undertake
ship related industrial and commercial services in its ambit of
cargo loading, discharging, storage
and navigational services, thus,
directly a part of supply chain
management influencing logistics
We can examine the berth
occupancy, pre-berthing detention,
turnaround time, ship day output,
yearly berth utilisation, total throughput, berth-day output, crane
utilisation, ROI/RONA and so on. All
these indicate different pictures
for different ports.
and distribution services and
positively impacting control.
Time has come to question
these measures instead of blindly following the above parameters on the
line of ‘Emperor’s New Clothes’. In
most cases, it is not possible to
advise a common benchmark that is
applicable to all ports as uniform
expressions of port performance do
not address the same requirements
for individual ports. Careful identification of problems to be monitored
and main characteristics of the commercial activity might lead to more
accurate indicators and targets that
help stakeholders also to judge performance. The other ‘Catch 22’ situation faced by the ports is that the
needs of the ship owners (including
their agents and freight forwarders)
are not aligned to those of the
shippers or the cargo owners.
The service-profit chain, developed from analyses of successful
service organisations, puts ‘hard’ val-
A port having a very efficient
ore loading capability and handling
only ore will be in an advantageous
position to highlight the yearly
throughput as the efforts are minimal
being a mechanised unit. But
throughput of ports, which perforce
need to handle break bulk commodities in large numbers, needing lots of
efforts and resources may not be glorious. Older ships in mid-sized ports
lie for longer periods for surveys and
repairs yielding greater berth
occupancy bearing a positive appeal
to the port-finance team. On the
other hand, the ports having capacity
to handle larger vessels find their
berths less occupied; much to the
dismay of the auditors.
Sustainable ports will measure
performance in order to monitor
and control, drive improvement,
‘Paperless’ gate-in by JNPT
maximise the effectiveness of
the improvement effort, achieve
alignment with organisational goals
and objectives and reward and
align customers.
Indian ports are also entities
operating in an extremely complex
and competitive environment
wherein measuring, monitoring,
controlling and improving port performance are key elements of port
competitiveness. Assessing port
performance is a rather complicated and multileveled task. That might
be a core explanation behind
the observed gap in a holistic
approach in Ports Performance
Measurement (PPM) that would be
in line with BMP.
Mihir Das
Independent Port Consultant and faculty member
CEPT University
DHL to connect Tuticorin
with Hamburg
As part of an initiative to introduce faster turnaround improvements and
potentially cut dwell time for the truckers waiting outside the ports, JNPT DHL Global Forwarding is expanding its services
has been instructed by the Ministry of Shipping to introduce paperless connecting India and Germany by means of a
gate-in or paperless customs documentation program.
newly launched weekly container service.
CT B UREAU
awaharlal Nehru Port Trust
(JNPT) has been asked by the
Ministry of Shipping to operate at a
paperless level. The move is being
aimed as a move to ease businesses
aimed at accelerating growth. The
port officials have been instructed
to simplify the procedures and
documentation presently being
followed in exports.
J
The Ministry had planned to
use it as a ‘proof of concept’ and
replicate it to all other major ports.
Though the JNPT is working on the
same, there is an issue of digitising
the entire transaction. JNPT
has been advised to go for an
electronic gate pass instead of a
physical gate pass.
Significance:
Introduction of electronic gate
pass
This program will be used as
‘proof of concept’ for all other
major ports
CT B UREAU
HL Global Forwarding is launching a new weekly direct service
for container cargoes between India
and Germany. The new service will
reduce the transit time for LCL transports from Tuticorin to Hamburg from
33 to 26 days.
D
“Germany is India’s number one EU
trade partner. The launch of this new
LCL route connecting Tuticorin to
Hamburg will further facilitate foreign
trade between the two countries and
support the growing needs of small
and medium enterprises. This will be
particularly beneficial to companies
in the textile, chemical, metal, leather
and electronics sectors,” said
Samar Nath, CEO, DHL Global
Forwarding India. DHL Global
Forwarding is expanding its LCL
network. From Asia alone, consolidations are being moved from 45
terminals to 56 European container
freight stations every week.
Key points:
It will further facilitate foreign trade
between India and Germany
The new service will reduce
transit time
18
INTERVIEW
CARGOTALK M A R C H 2 0 1 5
‘Optimise with asset light & heavy models’
One of India’s leading supply chain solution providers, LCL Logistix has made its presence felt across not
only the entire country but also across continents. Arup Chatterjee, Managing Director, LCL Logistix
discusses the nuances of the logistics sector, the unique capabilities of the company and suggests models
that can create scope for optimisation.
CT B UREAU
What are the
strategic investments
Q
made by LCL Logistix to
improve efficiency in the
supply chain process?
We are an integrated service
provider with presence across the
value chain of logistics and supply
chain management solutions. LCL
Logistix has finished its capital
expenditure cycle pertaining towards
its strategic investments, e.g., expansion of the existing fleet across the
length and breadth of the country for
its surface transportation, CFS in
Gujarat, West and East of the country. We have open bonded, nonbonded warehouse facilities in South,
East and West of India. LCL Logistix
will focus on growth, and will invest
in Indian and overseas markets as
and when opportunities arise.
What strategies do
you suggest to the
Q
existing LSPs to evolve
and reinvent the supply
chain process needed to
achieve a leading
position in the industry?
The abstract of logistics being
a sunrise sector and India possessing strong macro-economic fundamentals cannot simply overcast that
globalisation brings massive opportunities and enormous challenges;
that too when the sector is not structured enough and scattered into
handful of standalone value chains.
Hence, today's LSPs should be firm
in adopting international best practices, standard operating measures
and dynamism though flexible action
plans at every service offered. An
asset light model with an asset heavy
business model should be looked at
as a combination which can give
plenty of scope for re-shuffling,
optimisation of revenue structure,
etc. Applications of modern IT
and system platforms/modules
should be adopted.
What are the different
trends currently in
Q
the logistics sector?
Indeed there is a sector consolidation happening, although at a slow
pace and logistics as a term being
widely known today. The sector is
attracting investments hereby footing
up their growing ambitions, equity
dilution is rolling on; perhaps it could
be an infliction point for this sector.
The long drawn cost of talent crunch
pertaining to this sector is also washing out slowly; young minds are willingly upholding the logistics careers,
probably not in the mainstream but
still there is a change.
The Indian coastal water
deserves super critical infrastructure
and industrial corridors, ports,
airports, etc. are slowly attracting
the required push from the
administration. Mergers, takeovers,
acquisitions and joint ventures
playing their role saddled with
backward and forward integration
among the companies are active in
this sector.
Arup Chatterjee
Managing Director
LCL Logistix
growth. Hence in line with carrying
our legacy the company put loads of
focus on putting the ‘precise manpower in the right occupation at the
right time’ improvising his or her skill
sets and abilities by way of customised vocational training and inhouse mentorship. The company
duly encourages its employees in
pursuing both inbound and outbound training programmes and
academic qualifications to grow
themselves, meet their objectives
and ambitions in life along with
aggressive emphasis on its information technology platform to keep its
business information management
system steadfast.
What are the key
infrastructural
Q
challenges facing the
logistics industry?
What is LCL Logistix
doing to turn its
Q
supply chain into a
powerful source of
competitive advantage?
At LCL Logistix, we firmly
believe the human resource to be
crucial in achieving consolidated
Cost-effective movement of
goods involves a blend of different
modes of transportation into seamless synergy. Problems like road
conditions, poor connectivity, inadequate air and sea port capacities
and lagging alternates like inland
water transport and domestic aviation have been constant nuisances.
Due to these challenges, costs per
transaction in Indian logistics sector
is much higher compared to those
in the developed markets.
The bulk of Indian trade is carried by sea, whereas the existing
port capacities at major ports are
with little infrastructural upgrades
making them inefficient to handle
free trade flows. World-class infrastructure like modern integrated
logistics cum transport hubs and
freight corridors at major locations
across the country will facilitate
more efficient logistics operations
going forward.
What are the
methods and tools
Q
does LCL Logistix use to
evaluate its supply
chain?
The company, since inception,
imbibed some critical propaganda
into its DNA like ‘customers first’ offering customised and cost-effective
solutions aiming at minimising cost
at the customers’ hand, ‘competitive
scorecard system’ – each and every
activity is duly clipped with an
evaluation parameter sheet (operational and financial) which later on
being brainstormed at the weekly,
quarterly meets.
‘Troubleshooting’ of operational
or financial hindrances is done at par
involving the line managers and vertical heads simultaneously aligning
with the company’s information
reporting system. Also ‘information
free flow’, where customer is updated
at every move with our instated real
time information process system,
‘open door approachability’– customer interaction is beyond the
organisational hierarchy and ‘one
stop solution” – being an intenerated
player we try to address the 360
degree service needs of a customer
under one single roof.
Changing the face of logistics with FTWZs
As a concept designed to facilitate import and export of goods and services FTWZs can prove to be great tools
to provide seamless logistics support. Nishchal Padhya, Joint Managing Director, Siddhartha Logistics India
explains how this can usher an era of ‘Ease of Business’ in India.
ogistics play a very important
role in international trading
transactions of which warehousing is
an important element. Free Trade
and Warehousing Zones (FTWZs)
offer multiple options to stakeholders
in any international trading transaction. FTWZs offer multi-flexible
operations and legal support to
carry out a particular type of
international trading transaction.
Some FTWZ units like the one in
L
Sricity are planned to initially offer
incubational services.
Contrary to the traditional procedure, when goods are declared to
arrive at any FTWZ unit the same
can easily be taken to FTWZ upon
arrival at port directly on simple transshipment procedure. The supplier
from abroad can store the goods at
any FTWZ unit no local registrations
or incorporations is required.
Vendor managed inventory is
one of the most important trade models which could be carried out from
any FTWZ unit. Any supplier who
supplies goods to importers in and
around India could first ship the stock
into FTWZ and supply from the
FTWZ itself. Exporters and foreign
companies who buy goods from
India can get the material inside the
FTWZ from DTA and complete the
export formalities there and subse-
quently ship the material out of India
or work upon it (except processing)
or even re-sell to any DTA
importer in India.
Since FTWZs are ports under
the Customs laws as well, the same
are likely to have a huge impact on
the future of logistics in India. Thus
logistics players are expected to get
into value added services due to flexibilities offered under the FTWZ laws.
Nishchal Padhya
Joint Managing Director, Siddhartha Logistics India
20
CARGOTALK M A R C H 2 0 1 5
FAMILYALBUM
Asia Manufacturing Supply
Chain Summit
The fourth Asia Manufacturing Supply Chain Summit was held on
February 18-19, 2015 at The Westin, Mumbai. The theme of the summit was
“RAIN: Rapid Innovation”. The summit featured 50 speakers from across
industries who shared their experience with the audience through panel
discussions, presentations and case studies. The much anticipated
Manufacturing Supply Chain Awards were held on the first evening. The awards
were presented by Future Supply Chain Solutions. The award recognises the
hard work and applauds true leaders for their commitment and dedication
towards manufacturing and supply chain industry.
22
CARGOEVENTS
CARGOTALK M A R C H 2 0 1 5
24/7 facilities by Safexpress
DIESL wins award for
warehouse management
With an endeavour to develop 32 ultra-modern logistics parks at key
industrial hubs in India, Safexpress has introduced two more facilities DIESL was felicitated with the ‘Indian Supply
— Udaipur and Jammu — with not just state-of-the-art amenities but also Chain Logistics Excellence Award 2015’ under
round the clock services.
the Warehouse Management category.
CT B UREAU
CT B UREAU
panning over an area of 4500 sq
feet, Safexpress has recently
opened an ultra-modern warehousing facility at Udaipur on February 13,
2015. Built with a column-less span
of over 90 feet, it enables
rive India Enterprise Solutions
Limited (DIESL), the logistics
arm of Tata group, has won the
‘Indian Supply Chain Logistics
Excellence Award 2015’ under the
Warehouse Management Category.
S
D
Pawan Jain, CMD, Safexpress
said, “Udaipur is a commercial hub
of handicrafts and marble mining
such as emerald, lime stone and calcite, the transportation of which is
very difficult. Udaipur holds vital
importance due to its focal location,”
says Jain.
Pawan Jain
CMD
Safexpress
loading/unloading of several vehicles
simultaneously. The Logistics Park
has a floor load capacity of 6 metric
tonnes per square meter. Also it
has a truck docking area width of
over 40 feet and is strategically
located on NH 8.
The company has also
launched another facility at Jammu
on February 15, 2015. The Logistics
Park at Jammu is also built with a column-less span of over 100 feet and
enables loading/unloading of more
than 26 vehicles simultaneously.
Spanning over an area of 80,000 sq
feet, this ultra-modern Logistics Park
is strategically located on JammuPathankot National Highway 1A.
Jammu region has a large
count of food-grain mills and its economy is predominantly dependent on
agriculture and allied activities.
PHD outlines the needs
of cold chain sector
Keeping this in mind, Safexpress has
developed an ultra-modern facility
at Jammu, which will serve as
a trans-shipment hub as well
as a warehousing facility.
The awards, organised by
Indian Chamber of Commerce (ICC),
is now in its 5th year and was held on
February 12, 2015 at New Delhi. The
event endorsed by Deliotte was also
the official audit partner for the
award ceremony. The winners of
the awards were selected by
a panel of industry leaders.
The Jury panel was chaired by
SS Khurana, Former Chairman,
Railway Board.
The panel members included
Anwar Ul Huda, Former MemberPlanning Commission, Brijeshwar
Singh, Former Chairman, NHAI,
Bharat Thakkar, Immediate Past
President, ACAAI amongst others.
Both the Logistics Parks will be
operational 24x7, 365 days in a year
to provide time-definite deliveries.
Due to the non-stop operations, the
facilities will be providing the fastest
transit time for deliveries all across
India to over 610 destinations from
Udaipur and Jammu.
Figure Facts:
6 metric tonnes per sq.m floor
load capacity
Deliveries to over 610 destination
from Udaipur & Jammu
Loading/unloading of more than
26 vehicles simultaneously
(2nd from left) Aditya Gupta – Zonal Business Head, North, DIESL (3rd from left) Sanjeev Khatri
– Zonal Finance Manager, North, DIESL
ACAAI targets smaller cities
At the PHD-GMR Aviation 2015 summit, S L Sharma, President, Air
At the National Conference on Cold Chain Cargo Agents Association of India pitched for better implementation of
speakers called for investment support and government guidelines on setting up AFS.
discussed the guidelines by NCCD.
CT B UREAU
CT B UREAU
HD Chamber of Commerce and
Industry organised a National
Conference on Cold Chain Technical Guidelines & Standards on
January 29 in the capital.
P
Sanjeev Chopra, IAS, Joint
Secretary, MIDH and International
Cooperation & Managing Director,
NCCD stressed for seamless
integration of various stakeholders
and called for transparency and
easier financial transactions.
Pawanexh Kohli CEO & Chief
Advisor, NCCD, said Rs 5,000 crore
warehousing infrastructure fund has
been set up by the NABARD in
October 2014 to finance the cold
chains under priority sector lending
arrangements. He also sensitised
the industry about the technical
guidelines and standards set up
by NCCD for the cold chain in
the country.
Ranjeet Mehta, Director, PHD
Chamber underlined that considering
the current level of wastage of fruits
and vegetables, cold chain facilities
will play an important role in meeting
the demand of food in the country.
Guidelines to Govt:
Provide relevant incentive to
private stakeholders
Guidelines and standards should
to promote innovation
he PHD Chamber of Commerce
recently organised PHD-GMR
Aviation 2015 summit to discuss new
regulations and policies besides
addressing the key challenges
facing the aviation sector. The theme
of the conference was “Wings for
Indian Aviation”.
T
The summit also saw the
release of a white paper on
“Developing Regional and Remote
Connectivity” which sought lower
taxes on the ATF (air turbine fuel) in
order to fuel connectivity to regional
air and cargo hubs.
S L Sharma, President, Air
Cargo Agents Association of India
(ACAAI) discussed the government
guidelines on setting up Air Freight
Station (AFS) across the country.
“This is the best way to decongest
the airports but a lot needs to be
done to achieve the benefits mentioned in the guidelines such as
greater efficiency, reduced dwell
time, maximum utilisation of installed
capacity etc,” he said. According to
the guidelines, AFS will create an
enabling environment to promote
international air cargo operations by
reaching out to hinterland regions of
the country besides de-congesting
the air cargo terminals in some
gateway international airports.
Suggestions include:
•
•
•
At AFSs, the airline to bring their
own containers for break and bulk.
The terminal handling charges
should not be levied twice.
The AFS should have an x-Ray
facility for airlines containers.
S L Sharma
President
Air Cargo Agents Association of India (ACAAI)
•
•
Special corridor for vehicles
connecting the AFS to air
cargo complex.
AFS must be established in small
cities like Aligarh, Moradabad.
24
CARGOSTATISTICS
CARGOTALK M A R C H 2 0 1 5
Delhi International Airport Cargo Department, IGI Airport, New Delhi
(Airline-wise Import/Export Cargo Performance for the month of JANUARY 2015)
S.No Airlines
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Export
Export
Export Import
without Perishable
with
(MTs)
Perishable Cargo Perishable
(MTs)
(MTs) (UPL)(MTs)
Cathay Pacific
970
Emirates
1058
Etihad Airways
1174
Jet Airways
936
Air India
1011
Qatar Airways
998
Singapore
504
Thai Airways
333
Fedex Express Corpation 386
Kalitta Air
500
British Airways
517
Lufthansa Cargo Airline
489
Swiss Intl Airline Ltd
434
Malaysian Airline System
325
Air France
506
Japan Airlines
280
Uzbekistan
461
Finnair
348
KLM
348
M/S All Nippon Airways
390
Turkish Airlines
311
Virgin Atlantic
282
Saudia
213
Hercules Aviation
382
Lufthansa Cargo Ag
210
United Airlines
194
Ethopean Airlines
91
China Eastern Airlines
177
Air China
185
Korean Airlines
16
Aeroflot Cargo Airlines
156
China Air
112
25
1102
193
125
372
147
23
24
1
0
71
59
11
33
12
2
32
0
4
4
5
3
175
0
24
10
3
0
2
0
37
0
994
2159
1367
1061
1383
1145
527
357
387
500
588
549
444
358
518
282
493
348
352
394
316
285
388
382
234
204
94
177
187
16
194
112
2706
824
1498
1514
1169
509
914
848
510
379
280
295
347
394
226
383
129
177
171
121
153
167
29
17
157
186
265
176
148
309
8
63
Total
Cargo
(MTs)
%
of
Total
3700 11.08%
2983 8.93%
2865 8.58%
2574 7.71%
2552 7.64%
1654 4.95%
1441 4.32%
1205 3.61%
897 2.69%
879 2.63%
868 2.60%
843 2.53%
791 2.37%
752 2.25%
744 2.23%
666 1.99%
622 1.86%
524 1.57%
523 1.57%
516 1.54%
469 1.41%
452 1.35%
417 1.25%
399 1.20%
391 1.17%
391 1.17%
359 1.08%
353 1.06%
335 1.00%
324 0.97%
201 0.60%
174 0.52%
S.No Airlines
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
Export
Export
Export Import
without Perishable
with
(MTs)
Perishable Cargo Perishable
(MTs)
(MTs) (UPL)(MTs)
Air Arabia
Oman Air
Mahan Air
Indigo Cargo
China Southern Airlines
Gulf Air
DHL Express
Air Mauritius
Blue Dart
Sri Lankan Airlines Ltd
Asiana Airlines
Flydubai
Spice Jet
Kuwait Airlines
Air Shagoon Pvt. Ltd.
Air Astana
Kenya
Kam Air
UPS
Turkmenisthan Airlines
Pakistan International
Ariana Afghan Airlines
Jetlite
Cargolux
Iraqi Airways
Tajik Air
Safi Airways
Druk Air
Air Moldova
135
95
103
91
72
87
0
60
83
45
50
49
22
4
26
16
21
15
0
10
3
8
3
0
6
3
0
3
0
Total
Cargo Handled In January'14'
% VARIATION
28
36
11
0
1
26
0
15
0
0
0
9
0
30
0
10
1
0
0
3
0
0
0
0
0
0
0
0
1
163
132
114
92
73
113
0
75
83
45
50
58
22
34
26
25
22
15
1
13
3
8
3
0
6
4
0
3
1
3
3
11
30
45
2
113
19
5
30
23
0
16
3
0
1
0
0
15
0
8
0
5
6
0
0
3
0
0
15308
2671
14773
2737
3.62% -2.42%
17979
17511
2.67%
15411
14504
6.26%
Total
Cargo
(MTs)
%
of
Total
166
135
125
122
118
115
113
94
88
75
73
58
38
37
26
26
22
15
15
13
10
8
8
6
6
4
3
3
1
0.50%
0.40%
0.37%
0.37%
0.35%
0.35%
0.34%
0.28%
0.26%
0.23%
0.22%
0.17%
0.11%
0.11%
0.08%
0.08%
0.07%
0.05%
0.04%
0.04%
0.03%
0.02%
0.02%
0.02%
0.02%
0.01%
0.01%
0.01%
0.00%
33390 100.00%
32015
4.30%
Export & Import cargo tonnage handled
at CSIA for the month of JANUARY 2015 (Freight in Metric Tonne)
S.N Airlines
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Export
Jet Airways
Emirates
Etihad Airways
Lufthansa Airlines
Cathay Pacific
Air India
British Airways
Qatar Airways
Singapore Airlines
Saudi Arabian Airlines
UPS
Ethopian Airlines
Turkish Airlines
Federal Express
Kuwait Airways
3088
3008
1418
1193
879
1169
1275
1146
773
780
494
891
586
757
480
Import
Total
S.N Airlines
2544
1908
1594
1243
1338
988
600
721
977
368
490
43
345
155
376
5632
4916
3012
2436
2218
2157
1876
1867
1750
1148
984
934
931
912
856
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Swiss Intl. Airlines
Air France
Thai Airways
Delta/KLM/Martin Air
Malaysia Airlines
Virgin Atlantic
Srilankan Air
Gulf Air
Kenya Airways
Oman Air
South African Airlines
Air Arabia
Indigo Air
EL-AL Airlines
United Airlines
Export
Import
Total
S.N Airlines
Export
445
495
276
349
309
124
177
220
297
149
244
165
192
131
29
331
255
345
236
275
272
174
102
22
104
7
84
54
83
148
776
750
621
585
584
396
350
322
319
253
251
249
245
214
177
31
32
33
34
35
36
37
38
39
40
41
42
43
0
147
87
24
64
46
42
39
17
34
13
10
2
40
22104
Aerologic
Air Mauritius
Korean Air
Blue Dart
Bangkok Airways
Fly Dubai
Iran Air
Yemenia Airways
Spice Jet
Pakistan intl Airlines
Air China
Egypt Air
Air Seychelles
Others
Total
Import
175
5
64
123
3
11
1
0
20
1
7
3
1
58
16655
Total
175
152
151
147
67
57
43
39
37
35
20
13
3
98
38759
CARGOSTATISTICS
MARCH 2015
25
CARGOTALK
Traffic Statistics
Domestic Freight
S.N Airport
Freight (in tonnes)
For the Month
For the period April-November
November November %Change 2014-15 2013-14 %Change S.N Airport
2014
2013
(A) 17 INTERNATIONAL AIRPORTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Chennai
Kolkata
Ahmedabad
Goa
Trivandrum
Calicut
Lucknow
Guwahati
Srinagar
Jaipur
Bhubaneswar
Mangalore
Coimbatore
Amritsar
Varanasi
Port Blair
Imphal
Total
(C) 6 CUSTOM AIRPORTS
5991
6858
2684
272
119
12
255
614
268
655
320
16
520
4
33
239
335
19195
15.8
9.2
28.7
-1.5
-36.1
100.0
43.1
24.8
64.2
-67.8
52.2
50.0
13.8
800.0
0.0
66.1
10.1
14.4
53885
61673
28173
2060
821
252
2261
6325
4457
1064
3393
242
5016
277
429
1916
3013
175257
47823
56089
23637
1608
1322
116
1955
4560
2637
4736
2527
204
4160
76
295
1640
2739
156124
12.7
10.0
19.2
28.1
-37.9
117.2
15.7
38.7
69.0
-77.5
34.3
18.6
20.6
264.5
45.4
16.8
10.0
12.3
(B) 6 JV INTERNATIONAL AIRPORTS
18 Delhi (DIAL)
24083
18472
19 Mumbai (MIAL)
17858
14410
20 Bengaluru (BIAL)
9671
7184
21 Hyderabad (GHIAL) 3698
3064
22 Cochin (CIAL)
949
791
23 Nagpur (MIPL)
370
370
30.4
23.9
34.6
20.7
20.0
0.0
178008
141543
76215
28701
7539
3827
138240
121226
60636
24241
6226
3386
28.8
16.8
25.7
18.4
21.1
13.0
27.9
435833
353955
23.1
Total
6940
7486
3454
268
76
24
365
766
440
211
487
24
592
36
33
397
369
21968
56629
Freight (in tonnes)
For the Month
For the period April-November
November November %Change 2014-15 2013-14 %Change
2014
2013
44291
24
25
26
27
28
29
Pune
Visakhapatnam
Patna
Chandigarh
Bagdogra
Madurai
2678
133
452
0
280
88
1836
109
335
253
254
100
45.9
22.0
34.9
-100.0
10.2
-12.0
18343
2501
3452
3224
1955
786
13565
1144
2983
2309
1299
811
35.2
118.6
15.7
39.6
50.5
-3.1
Total
3631
(D) 14 DOMESTIC AIRPORTS
30 Indore
524
31 Jammu
147
32 Raipur
371
33 Agartala
423
34 Vadodara
214
35 Ranchi
207
36 Aurangabad
146
37 Udaipur
5
38 Bhopal
46
39 Leh
136
40 Dehradun
4
41 Rajkot
11
42 Jodhpur
2
43 Dibrugarh
25
Total
2261
(E) Other Airports
158
2887
25.8
30261
22111
36.9
243
133
215
547
197
207
116
0
61
107
0
13
1
16
1856
160
115.6
10.5
72.6
-22.7
8.6
0.0
25.9
-24.6
27.1
-15.4
100.0
56.3
21.8
-1.3
4332
1165
2679
4208
1286
2184
868
14
622
862
23
84
8
189
18524
938
2881
1123
2101
4625
1325
1590
531
0
569
728
0
118
14
193
15798
1045
50.4
3.7
27.5
-9.0
-2.9
37.4
63.5
9.3
18.4
-28.8
-42.9
-2.1
17.3
-10.2
68389
23.8
660813
549033
20.4
Grand Total
(A+B+C+D+E)
84647
Traffic Statistics
International Freight
S.N Airport
Freight (in tonnes)
For the Month
For the period April-November
November November %Change 2014-15 2013-14 %Change
2014
2013
(A) 13 INTERNATIONAL AIRPORTS
1
Chennai
17739
2
Kolkata
4309
3
Ahmedabad
1701
4
Goa
105
5
Trivandrum
2407
6
Calicut
1758
7
Lucknow
106
8
Guwahati
1
9
Jaipur
76
10 Mangalore
38
11 Coimbatore
88
12 Amritsar
83
13 Trichy
332
Total
28743
S.N Airport
Freight (in tonnes)
For the Month
For the period April-November
November November %Change 2014-15 2013-14 %Change
2014
2013
(B) 6 JV INTERNATIONAL AIRPORTS
17904
3862
1342
116
2043
1636
90
1
13
21
87
23
339
-0.9
11.6
26.8
-9.5
17.8
7.5
17.8
0.0
484.6
81.0
1.1
260.9
-2.1
151127
32494
12124
801
18599
14534
910
12
417
193
617
348
3051
149860
30405
10910
1174
17986
15446
733
10
143
32
641
1281
3092
0.8
6.9
11.1
-31.8
3.4
-5.9
24.1
20.0
191.6
503.1
-3.7
-72.8
-1.3
27477
4.6
235227
231713
1.5
14
Delhi (DIAL)
35719
32079
11.3
288414
259017
11.3
15
Mumbai (MIAL)
40660
38077
6.8
320738
309831
3.5
16
Bengaluru (BIAL)
13745
11676
17.7
111649
100041
11.6
17
Hyderabad (GHIAL) 4642
4105
13.1
36421
32455
12.2
18
Cochin (CIAL)
3689
3014
22.4
43425
27762
56.4
19
Nagpur (MIPL)
61
40
52.5
253
254
-0.4
98516
88991
10.7
800900
729360
9.8
0
2
0
0
-
0
3
10
0
-100.0
-
2
0
-
4
10
-
(D) Domestic Airports
0
Grand Total
127261
(A+B+C+D)
0
116468
9.3
86
1036217
0
961083
7.8
Total
(C) 2 CUSTOM AIRPORT
20 Pune
21 Bagdogra
Total
26
INTERVIEW
CARGOTALK M A R C H 2 0 1 5
LSPs face a changing lighting market
The lighting industry is undergoing a transformation and the logistics sector has been modifying itself to
meet the requisites of this industry. Satnam Singh Grover, Senior Manager – Supply Chain Management,
OSRAM India talks about the scope for logistics services from managing operational efficiencies to providing
innovative and effective solutions.
CT
required, reverse logistics as well,
is under a single umbrella. We have
adopted direct customer delivery
options for project orders to cut
down on lead time and minimise the
handling with overall logistics
cost optimisation.
BUREAU
How do you foresee
the future of logistics
Q
market of lighting
industry in India? Vision
2020.
The lighting industry is
experiencing a paradigm shift with
the introduction of LED and replacing
conventional light sources; this shift
also has an effect on the
logistics sector.
This shift has directly impacted
the transport volumes (downwards).
Instead of incandescent lamps
or fluorescent lamps (transporting
vacuum) now solid state lighting
(more compact and lighter) products
are being made available to end consumers. There has been impact on
warehousing as well for want of
space optimisation and modernisation in warehousing operations for
accuracy and material handling. The
logistics sector also has to align with
changing business requirements
of the lighting industry. Such
shift requisites efficient distribution
service provider (3PL) to
meet delivery service levels within
cost brackets.
What percentage of
your logistics work
Q
is outsourced?
Satnam Singh Grover
Senior Manager – Supply Chain Management
OSRAM India
How important is
efficient logistics for
your growth? Tell us
about your overall
growth also.
Q
Logistics impact on overall
growth goes beyond delivering
goods to the end customers.
With 8-10 per cent logistics
cost, any optimisation will
contribute to bottom line. All
are affected by the shipper’s
ability to assure the customer that it
will receive delivery of the shipment,
at the right time, at the right place
and in good condition with right
transport cost.
Is there any specific
strategy that you
Q
have adopted for better
supply of products?
Integration of supply process
from customer order or demand
planning to customer invoicing
leads to better delivery service
levels. We have mainly customised
well-established processes for the
supply of products for our industry.
Material movements from vendor
till the customer and wherever
As we are operating on Hub
and Spoke model, our all inbound
materials movement operations are
directly controlled by company and
being received at PDC (Primary
Distribution Center) like imports,
local merchandised and own
manufactured. We have outsourced
warehousing and outbound
operations (secondary delivery) to
LSPs. Warehousing operations and
secondary delivery are awarded
to same LSPs and other than
statutory inventory audits, vendors
are required to submit monthly
self certifying inventory report
(Self Certification).
Customer invoicing is controlled by delivery service level
measurement that all due clean
orders must be invoiced as
per schedule and customer
delivery
confirmations
are
auditable and PODs are audited
at regular intervals.
What are your
expectations from
Q
LSPs?
The global players entrants,
have introduced concept of integrated logistics or supply chain solution
providers, but local expertise and
understanding is still lacking. LSPs
must act as solution providers. It is
expected that LSPs must come up
with innovative approach for
operation efficiencies and cost
optimisation as well; this should be
a continuous process.
Key Points:
Infrastructure
and complex
tax structures are hindrances
in smooth execution of logistics
activities
Dependence on road network,
underutilised waterways and
no separate rail freight corridor are
some infrastructural bottlenecks
for the logistics sector
Transforming logistics landscape with GST
With the booming competition, there is urgent need to cut down transaction cost which is currently 10-12 per cent
of the cost of goods and services. Raaja Kanwar, Vice Chairman & Managing Director, Apollo LogiSolutions says
GST is needed to bring these down to admissible levels so that Indian goods and services can compete globally.
he existing landscape of fragmented, unorganised small
godowns and container depots will
undergo significant reorganisation
with the rollout of the much overdue
uniform Goods and Services Tax
(GST). The development of large
hubs in key locations coupled with
smaller spoke warehouses closer
to production and consumption
centres are expected to emerge
following the rollout.
T
This change in legacy tax structure is expected to be the largest
driver of modern warehousing infrastructure. By subsuming a large
number of taxes, enterprises will shut
down several branches and godowns
purportedly set up to take advantage
of existing tax laws. It will result in efficient tax administration, improved
logistics, transparent dealings, digital
compliance, faster and efficient clearance of goods at ports and dry ports.
Since IT will be used extensively, it will give auto the benefit of tax
paid at earlier stages with the result
that a trader or manufacturer will pay
logistics sector and go a long way in
addressing the government’s initiatives to make India a major manufacturing hub and create millions of new
jobs for rapid inclusive growth.
the additional tax only. Thus a
large chunk outside the tax orbit will
now land in tax compliance. Since
almost all goods and services
(except for a select negative list)
will be covered and the tax chain will
bring substantial relief to all, the
tax net will increase manifold
resulting in higher tax realisations.
Once GST replaces all multiple
taxes, it is going to be the biggest
tax reform in independent India’s
history. Reduction in tax cost will lead
to a favourable impact on tax
compliance, economies of scale and
supply chain efficiencies. The
National Council of Applied
Economic Research (NCAER) has
estimated that the introduction
of GST could push up GDP rates
by 1.7 per cent.
GST will be the first serious
step addressing the needs of logistics industry of which only 10 per cent
of activities are in organised sector.
It will lead to corporatisation of
Raaja Kanwar
Vice Chairman & Managing Director
Apollo LogiSolutions
28
SHIPPING
CARGOTALK M A R C H 2 0 1 5
Realising the true potential of coastal shipping
While coastal shipping has the potential to offer tremendous business opportunity in India, bottlenecks have
plagued its full-fledged development. CARGOTALK brings you the views of shipping lines on the challenges and speed
breakers they face and the ways and means by which these can be overcome.
A BEER R AY
oastal shipping has the advantage of
being more environment-friendly and
economical than the rail/road transport, yet it
has not received due attention from the
government. Despite extensive discussions
on the subject, few concrete steps have
been taken to accelerate the pace of
coastal shipping as a preferred mode
of transportation.
C
It is interesting to note that despite 70 per
cent of Indian vessels being engaged in
coastal shipping, domestic freight is transported via other modes of transport that are
already overburdened and operating at 100
per cent capacity.
Despite the compelling need for shift of
cargo to waterways, there are challenges
and roadblocks that have resulted in low utilisation of this rather safer and cheaper mode
of transport.
Developed nations rely heavily on coastal
shipping as it contributes substantially to their
economy. While in India coastal shipping comprises only seven per cent of the local freight,
in the European Union nearly 43 per cent of
the cargo traffic is moved by coastal shipping
and in the US it accounts for a 15 per cent
share of the cargo traffic.
Vivek Kumar Singh
Chief Executive Officer, Shreyas Shipping and Logistics
Challenges
The advantages of cost and time, which arise out of coastal shipping, get reduced due to first and last mile transportation as well
as multiple handling. The country has a peninsular coastline and
unfortunately lesser industries are located in the peninsular region
resulting in imbalance in cargo movement.
Measures
If the cargo base is made to shift in the closer hinterland of the ports by way of developing industries and warehouses in areas which can reduce the first and last mile then coastal shipping
can surely overcome its main challenge. Alternately, there is a need to look at providing better
connectivity to the ports.
While the government looks determined
to fight the challenges, industry veterans point
to certain issues that need to be resolved.
Philip Mathews
Managing Director, LOTS Shipping
Prem Pal Singh
Challenges
Asst. Vice President, Bharati Shipyard
The coastal shipping industry has been seriously compromised
by lack of capital. Even the capital that becomes available from
traditional banking sources has serious impediments in securitisation and other banking norms.
Challenges
Lack of separate berths at a majority of ports for handling
coastal cargo.
Multiple handling costs are involved in coastal vessel trade
High costs of wharfage and maritime dues
Inadequate cargo handling facilities at several minor ports
Lack of adequate repair facilities for vessels in most
of the ports
Measures
Measures
Ministry of Shipping should be delinked from road transport
Separate dedicated berths in all the major and minor ports for coastal cargo
Customs formalities for the vessels purely on coastal trade should be eliminated
Road and other infrastructure in, around and from the ports needs to be boosted
Wharfage and port dues for coastal ships need to be reviewed and rationalised
Suitable incentives to boost coastal cargo need to be provided
on an all-India basis
Banking norms must be diluted and existing loans in this sector need to be urgently restructured to accomplish completion of the ongoing projects
Indian National Centre for Ocean Information Services (INCOIS) must be made mandatory
for reception of data on RSV vessel
Suitable initiatives need to be put in place to migrate the RSV model to LNG fuels
A River Sea Shipping Conference of India should be established
Amit Seth
Director, ACE Resources and Solutions
SK Shantagiri
Managing Director, Advanza Logistics
Challenges
Challenges
Very limited financial resources are available to a coastal ship
owner at very high rate of interest; apart from that absence of
foreign equity investment is also a discouraging factor.
Lack of policy stability creates a volatile environment
Non availability of qualified coastal crew
Poor infrastructure and draft restrictions at many minor ports
act as a deterrent for owners to go for a bigger tonnage
One of the biggest challenge coastal shipping faces is port infrastructure. Ports always accord step-motherly treatment to coastal
trade vis-à-vis the EXIM trade due to lower revenues. Lower priority results in berthing delays and slow customs processing leads
to rising cost.
Measures
Measures
While ports should be incentivised by the government to treat coastal ships at par with foreign
going vessels, customs processing needs to be computerised. Though the government declares
incentives for coastal shipping lines, there is a need to lay down clear procedures to avail them;
also there is an urgent need to communicate them. Lastly, the Cabotage Rules need to be
amended so that charter of foreign going vessels for coastal trade becomes easier.”
A stable policy with tax benefits and other incentives will boost coastal shipping
Coastal shipping should be given infrastructure status like roads, ports and railways
More training institutions should be set up
Capital dredging can be of great help to overcome the challenge of poor infrastructure
Ashok K Shrivastava
Chief Executive Officer, Allcargo Shipping Services
Despite the coastal mode of transport having an inherent advantage, there is a lack of awareness amongst the cargo mover about the existence of
coastal shipping. If this mode has to take off, we need to do a thorough market mapping and make those who want their cargo moved aware of coastal mode
of transportation.
Coastal mode of transport loses its advantage as in its current stage there is lack of cargo flow in both direction and hence the voyage itself becomes unviable
due to lower cost expectations from the shippers. Here again unearthing more customers and cargo will ensure a balanced cargo movement. The government
can also assist by diverting a part of the cargo under its control to coastal mode.
30
CARGOTALK M A R C H 2 0 1 5
FAMILYALBUM
Transforming airports into cargo hubs
Air Cargo Forum India (ACFI) organised a Seminar on Transforming Indian Airports into International Cargo Hubs which saw participation of key players from
the entire Air Cargo Supply Chain including the Government departments, airlines, freight forwarders, cargo terminal operators, airport operators, customs brokers.
Contd. on page 32 SHIPPING
MARCH 2015
CARGOTALK
Hazira Port breaks Kandla Port record
Adani Hazira Port surpassed Kandla Port’s all-time best record handling
of 182,748 metric tonnes of cargo in June 2012 by handling 188,684 metric
tonnes of rock phosphate important for making fertilisers and acids.
CT B UREAU
he Hazira Port of Adani Ports
and Special Economic Zone
(APSEZ) handled a record quantity
of rock phosphate of 188,684 metric
tonnes, the highest amongst
any commercial port in a single
calendar month.
T
Key points:
Adani Hazira Port was able
to surpass the record feat of
Kandla Port because of the
sustained patronage of the
SSP manufacturers of phosphate
on the west coast of India
Due to its strategic location,
Adani Hazira Port serves the
hinterland of South and
Central Gujarat, Madhya Pradesh,
North
Maharashtra
and
North Rajasthan
Adani Hazira Port has five
fully operational berths out of the
13 planned
The five fully operational
berths of Adani Hazira Port
have a potential to handle
75 MMTPA of cargo in the
coming years
India & China to
get direct service
o cater to the growing exim
trade between India and
China and far East and South
East Asian countries, a weekly
direct service called ‘Falcon’
has been launched by
Mediterranean
Shipping
Company SA (MSC), which will
also meet the long standing
demand of MSC customers for a
direct service between the two
countries apart from catering to
the exim trade to Malaysia,
Indonesia, Thailand, Taiwan,
Vietnam, Korea and Japan
via Singapore.
T
The introduction of Falcon
service would enable MSC to
provide improved transits from
North-West India to the US
West Coast and Australia
and New Zealand.
The first vessel, MSC
Pamela ETA Mundra will call
India on April 25, 2015.
The feat achieved by Hazira
Port beating the all-time best record
of Kandla Port handling 182,748 metric tonnes in June 2012 could
be achieved due to sustained patronage of the SSP manufacturers’ phos-
phate on the west coast of India and
also due to its strategic location
advantage to serve the hinterland of
South and Central Gujarat, Madhya
Pradesh, North Maharashtra and
North Rajasthan.
31
32
CARGOTALK M A R C H 2 0 1 5
FAMILYALBUM
Finding ways to bring efficiency in airports
Contd. from page 30
34
INTERVIEW
CARGOTALK M A R C H 2 0 1 5
‘Call in to record toll delays, bottlenecks’
While the government has been trying to modernise the cold chain industry, the NCCD has launched a Reefer
Vehicle Call-in-centre. In an interview with CARGOTALK, the first part of which appeared in the February issue,
Pawanexh Kohli, CEO & Chief Advisor, NCCD says the industry must participate in this e-governance initiative.
CT
BUREAU
Could you throw
some light on the
concept of pack houses?
Q
Pack houses are infrastructure
pieces where you can pre-condition
the freshly harvested produce, so as
to take advantage of the cold-chain
as a conduit to market. Without such
preconditioning, sensitive produce
cannot reach markets. Just like we
prepare and pack glass items or
eggs to reach markets safely, without
damage, similarly, we need to
prepare fruits and vegetables to
reach distant markets in saleable
condition. Without pack houses,
virtually, there is no gainful entry
for fruits and vegetables in the
cold chain.
We have invested huge money
to build large cold storage infrastructure but we do not have sufficient
pack houses in the country. It is now
the right time to move backwards
along the chain, back to village level
and build pack houses which
become a source point for the cold
supply chain.
Pawanexh Kohli
CEO & Chief Advisor
NCCD
The only way fresh fruits
and veggies can take advantage of
the cold chain is to be subjected
through this preparatory stage before
moving to market. If we do not
do so, our cold stores will continue to
serve as a channel for foreign
produce and our domestic farm
produce will never have a chance
to enter this cold supply chain.
pack houses in our country
along with associated reefer
transport units.
What is your to-do-list for 2015?
Train state-level teams in the right skill sets and delegate responsibility
NCCD has recently
launched a Reefer
Q
Vehicle Call-in-centre
Ensure right technology is adopted to develop multi-modal cold chain
(RVC). What is it about?
Push India towards a future ready food distribution system
Temperature control effectively
buys time by enhancing the saleable
life of fresh foods. This time is
best utilised to travel to markets.
But, if during travel, the time is
wasted in unnecessary delays
then it is contradictory to the
essence of cold chain.
These delays are informally
stated as bottlenecks on highways,
such as extortion, toll point delays,
documentary inspections at check
points, etc. These are all governance
issues and so we launched a toll free
number so that formal reports
of these complaints can be recorded.
Modernise to use existing capacity in an environmentally viable manner
Harmonise concepts and procedures with global practices
Unshackle from restrictive norms and open up to indigenous innovation
This is called RVC and te number is
1800-267-2663. RVC will serve as a
single point telephonic contact for
recording all forms of in-transit bottlenecks while transporting perishables in the cold chain. It will help create a database of bottlenecks and
the response generated from this
exercise will help work out long term
plans and policies to alleviate bottlenecks and thus to make sure those
delays do not happen again.
Foreign producers, for say kiwi
in New Zealand, don’t build cold
stores to store the harvested kiwi
locally; instead they create pack
houses through which the fruit is
rapidly shipped to India. Here, the
goods arrive safely and sit in our
cold stores as a platform to access
our market. So, we need to create
TN gets another chemical warehouse
The 55,000 sqft warehouse with two multi-user facilities will cater to the
chemical sector and industry in Tamil Nadu.
CT
BUREAU
henus Logistics India, opened its second warehouse near Chennai, spread
in an area of 55,000 sqft the warehouse,
has two multi-user facilities, with about 1 lac
sqft of warehousing space near Chennai.
The new warehouse will exclusively cater to
the chemical sector and boost the industry
in Tamil Nadu.
R
The warehouse is a state-of-the-art
facility and fully enabled with latest technologies facilitating the company to handle
chemical products with the highest level of
efficiency and safety. The warehouse is
endowed with modern equipments and has
a capacity of 6,000 Pallet Positions with
further scalability options, efficient reach
trucks with the lifting capacity of G+7 racking
systems for 1,100 kgs and forklifts for
floor management.
“In India we have about 11 lac sq. ft.
of warehousing space of both multi user
facilities and customer specific dedicated
facilities in the cities of Mumbai, Delhi,
Chennai, Pune and Ahmedabad. We plan
to add 4-5 lac sqft of warehousing space
every year. We lease the space and invest
in mechanization of operations”
says Vivek Arya, Managing Director,
Rhenus India. “It shows our commitment to
improving our already eminent customer
service. We will continue to invest in infrastructure and logistics, to maximize our
capability to perform as a leading integrated
logistics player,” added Arya.
How many calls you
have received till
Q
then?
So far, we have received 256
calls wherein only two calls were for
extortion which is a pretty positive
sign. But we have got equally few
calls on toll delays and documentation checks. It looks like that there are
negligible bottlenecks, and maybe
the small numbers reflect the estimate that there are only about
10,000 actively refrigerated trucks in
India. A low complaint base is a good
sign, and till date we do not have
enough information to act upon, but
this RVC will continue for at least one
year. If this industry feels the need to
help develop policy support, they will
genuinely participate in this e-governance opportunity. With their reports,
positive interventions can be planned
for a better future. In any case, having
this facility also serves the purpose
to send a strong signal to investors
that we are serious about clearing
bottlenecks and in promoting ease of
doing business. The business of
uninterrupted farm-to-fork cold-chain,
cannot tolerate interruptions.
Form - IV
Statement about ownership and other particulars about
newspaper CargoTalk to be published in the first issue every
year after the last day of February
1. Place of publication
: 72 Todarmal Road,
New Delhi - 110001
2. Periodicity of its publication
: Monthly
3. Printer's Name
Nationality
Address
: SanJeet
: Indian
: 72, Todarmal Road,
New Delhi - 110001
4. Publisher's Name
Nationality
Address
: SanJeet
: Indian
: 72, Todarmal Road,
New Delhi - 110001
5. Editor's Name
Nationality
Address
: SanJeet
: Indian
: 72, Todarmal Road,
New Delhi - 110001
6. Name and address of individuals who own the newspaper and
partners or shareholders holding more than one percent of the total
capital : Durga Das Publications Pvt. Ltd. Shareholders: 1. Vikramajit,
2 B, Friends Colony, West, ND-65. 2. SanJeet, 72, Todarmal Road,
New Delhi-1. 3. Sumati Jeet, 72, Todarmal Road, ND-1. 4. Urmila
Vikramajit, 2 B, Friend Colony, West, ND-65
I, SanJeet, hereby declare that the particulars given above are
true to the best of my knowledge and belief.
Date : 01/03/2015
Sd/SanJeet
Signature of the Publisher
36
ACADEMY
CARGOTALK M A R C H 2 0 1 5
EVENTS Calendar
DOMESTIC EVENTS
National Conference on
India Supply Chain
Management
PHD House, New Delhi
March 19, 2015
Supply Plus South 2015
Bangalore International
Exhibition Centre,
Bangalore
April 1-4, 2015
ChemLogistics India
Bombay Exhibition Centre,
Mumbai
April 16-17, 2015
CII SCALE Supply Chain
and Logistics Excellence
Awards
Chennai
May 21-22, 2015
India Ports & Logistics
Conference 2015
Hyatt Regency Mumbai,
Mumbai, India
May 26- 28, 2015
India Logistics Show
Pragati Maidan, New Delhi
June 10-13, 2015
Logmat
Chennai Trade Centre,
Chennai
June 19-21, 2015
India Warehousing
Show
Pragati Maidan, New Delhi
July 01-03, 2015
India Material Handling
& Logistics Show
Pragati Maidan, New Delhi
July 01-03, 2015
India Transport &
Logistics Show 2015
India Expo Centre, Greater
Noida Expressway
July 2-3, 2015
Supply Plus
Pragati Maidan, New Delhi
July 30-August 02, 2015
10th Southern Asia
Ports, Logistics &
Shipping 2015
Leela Kempinsky Hotel,
Mumbai
September 17-18, 2015
INTERNATIONAL EVENTS
European Shipping
Week
Brussels, Belgium
March 2-6, 2015
Cargo XML Workshop
Pudong Shangri-la, China
March 9, 2015
World Cargo
Symposium
Shanghai, China
March 10-12, 2015
Europort Istanbul
Istanbul Exhibition Centre,
Turkey
March 11-14, 2015
ICLT 2015 : XIII
International Conference
on Logistics and
Transportation
Dubai, UAE
April 8-9, 2015
As logistics solutions are increasingly being customised to meet the
growing demands of the growing economy, Meera Sethu, Assistant
Professor (International Business), Indian Institute of Tourism and Travel
Management, Nellore talks about the need to develop curricula, course and
modules for effective logistics education in India.
argo education in India is still at a
nascent stage. The flourishing cargo
industry of India is expected to bestow
employment opportunities and the
existing trend in cargo education needs
to be reviewed in entirety to cater to
the burgeoning demand of skilled
human resources.
C
The buoyant growth in cargo and
allied sectors has been attested; the
Indian freight industry is expected to grow
at a rate of 10 per cent with the Indian
logistics sector expected to record a
growth of 15 per cent to 20 per cent per
annum vis-à-vis the average world
logistics industry growth of 10 per cent.
As per NSDC Skill Gap Analysis
report, the demand for human resources
in the transportation, logistics and warehousing sector is expected to increase
from about 7.3 million to about 25
million, leading to an incremental human
resource requirement for about 17.7
million in next 15 years. The McKinsey
report as cited in Maritime agenda:
2010-2020 states that global cargo growth
is expected to grow at 5 per cent to 7 per
cent. Beyond doubt, manpower requirement will concomitantly rise. Total manpower requirement at airports alone is to
increase from 20000 to 30000 by 2016-
There are claims of logistics and allied
sectors not luring women and management graduates who are being wooed by
companies from other segments. This
leaves room for many apprehensions in
terms of the future of the cargo industry.
As fretting on the backlog of
unemployment from economy’s perspective reigns on one side, seemingly voluntary unemployment persists in the logistics and cargo sectors and distinct
demand supply mismatch exists. The
inherent nature (drawbacks) of the industry, lack of awareness among employable
population of the employment potential
of the industry and mundane curriculum
without endowing necessary inputs
appropriate for the industry are three
basic reasons attributing to the demand
supply mismatch in the cargo and
logistics industry.
Striking at the roots is the only way
to resolve an attempt for bridging this gap
that is possible through education. Cargo
education in Indian context has witnessed
a paradigm shift from short term diploma
courses targeting entry level job openings
to equipping human resources for
managerial positions in cargo and
logistics segments. Comprehensive
cargo and allied courses along
A plethora of issues ought to be
addressed at this juncture like existing
quality of education imparted for aspirants
of cargo and allied sectors, lacunae in the
existing academic framework and
panacea for redressing the same in an
earnest manner.
The forthcoming columns shall
throw light on these areas, which call
for immediate attention diligent efforts
from academicians imparting cargo and
logistics education.
Panama Maritime XII
Megapolis Convention
Centre
April 12-15, 2015
Global Liner Shipping
Conference 2015
Empire Riverside Hotel,
Hamburg
April 21-22, 2015
Air Cargo 2015
New Orleans
March 13, 2015
Air Cargo Europe
Messe Munchen, Germany
May 5-8, 2015
LogiMAT 2015
Nanjing International
Expo Center
Nanjing, China
March 18-20, 2015
4th IEEE ICALT'2015
Valenciennes, France
May 20-22, 2015
3rd Med Ports
Sheraton Casablanca Hotel
and Towers, Morocco
March 25-26, 2015
Customise logistics curricula
9th International
Conference on City
Logistics
Tenerife, Canary Islands
(Spain)
June 17-19, 2015
17 and is expected to spiral fivefold by
2032. Notwithstanding this in 2010, it was
estimated that the logistics sector
employed 45 million people out of total
employable population of nearly 500 million. Documented studies indicate that the
supply side is also not very encouraging.
with appropriate pedagogy for
dissemination of technical and operational
aspects of cargo and logistics have been
evolved to meet the ever changing
dimensions of this arena. Despite all this,
more milestones need to be traversed
in the future ahead.
Meera Sethu
Assistant Professor (International Business),
Indian Institute of Tourism and Travel Management
Customs broker staff training
J
BS Academy through its chief mentor
and director Samir J Shah conducted
a two-day training programme at Adani
Hazira Port Pvt Ltd along with the Hazira
Port Customs.
of allied acts; processing; shipping bill filing; ICEGATE etc. It was an interactive
programme conducted in Gujarati, Hindi,
and English. Participants were given a
hand out to facilitate continual handling.
The training programme covered
various aspects of Customs Clearance
from IGM; Bill of entry filing; self assessment; classification; valuation; application
The programme also compared various initiatives at Hazira Container
Terminal with other CFS and terminals in
Western India. Notably the gate manage-
ment system and On Dock Exim Yard at
Hazira Port, which operates through
strong IT systems and is the best in its
segment was highlighted.
Adani Hazira Port Pvt Ltd and JBS
Academy intend to undertake similar trainings for the next two-three years on a regular basis to build good capacities within
the Customs Broker community in Hazira.
38
APPOINTMENTS
CARGOTALK M A R C H 2 0 1 5
Dredging Corporation of India
Swissport Cargo Services
Weber Logistics
Visakhapatnam
Frankfurt
America
Swissport International (Swissport), the world’s largest provider of
ground and cargo handling services to the aviation industry, named
Dirk Schmitt as its new Chief Executive Officer
Cargo Services Germany & Austria, from
February 1, 2015. Schmitt will be responsible
for Swissport Cargo Services (SCS) and his
responsibilities will include running
Swissport’s cargo operations at currently
nine online airports as well as several subcontracted European stations.
Dan Frank has been appointed as the new President of
Weber Logistics, a leading third party logistics company
serving the Western US. Prior to this,
Frank has held logistics and sales
leadership roles for domestic and
international companies in supply
chain management. Nick Weber,
Chairman, Weber Logistics said. We
look forward to Dan’s leadership as
Weber enters the next phase of our
company’s growth.”
BlueGrace Logistics
Saddle Creek Transportation
SITA
Tampa
Lakeland
Geneva
Freight logistics company BlueGrace Logistics announced the
appointment of Justin Belcher as its Chief Information Officer.
Effective February 2, 2015 Belcher has
begun leading all aspects of information
technology and software development
for the Tampa-based company. Belcher
has been with BlueGrace since 2009
and his new role encompasses much of
his prior responsibilities and will focus
greater detail on the company’s vision for
technology, business development
and supporting systems.
Saddle Creek Logistics Services announced on January 22, 2015
that John Erwin has been promoted to Vice President, Saddle Creek
Transportation.The creation of this new position
was spurred by the rapid growth of Saddle
Creek’s transportation division. Erwin
had joined Saddle Creek in 2011 as
Director of operations support/maintenance.
“John has played a vital role in the
growth of our transportation division,”
said Mike DelBovo, President, Saddle
Creek Transportation.
Murray Smyth has been appointed as the Vice President
Sales – Northern Europe by air transport IT specialist SITA
effective February 2, 2015. Prior to this,
Smyth founded and led the Airline
and Travel Services Business Unit at
IBS, a Dubai-based software provider
and systems integrator. Dave Bakker,
President, SITA-Europe, said,
“Murray is the perfect fit for SITA. I
am confident that he will help SITA
maintain its position as the leading IT
specialist for air transport community in Europe.”
DB Schenker (India)
Etihad Airways
Geodis India
Rajesh Tripathi assumed charge as Chairman and
Managing Director of Dredging Corporation of
India on February 2, 2015 pursuant to the
Orders of Ministry of Shipping,
Government of India. Prior to that, he
was working with Ministry of Railways.
Tripathi had joined Railways in 1984 and
had held several prestigious posts
including Project Director of IRCON
and Malaysia Railway Project.
Mumbai
Abu Dhabi
Gurgaon
Schenker India, part of DB Schenker, appointed Rupesh Gupta
as Director – Ocean Freight effective February 2, 2015. Gupta will
be responsible for further strengthening the
ocean freight operations, procurement
and development activities and drive
the function at national level. Gupta has
with him more than 15 years of experience in the global and Indian logistics
market. Gupta brings with him years of
expertise with Indian and global
markets, which makes him an asset
for DB Schenker in India.
Etihad Airways appointed Linda Celestino as the airline’s Vice
President Guest Services effective from February 2, 2015.
Celestino has more than 25 years’ experience
in the airline industry having held senior positions in her native Australia and the Middle
East, as well as being President of the New
York-based Airline Passenger Experience
Association. She brings a wealth of experience and expertise to this crucial role
which focuses on one of the most important aspects of the business
– the guest.
Martijn Tasma has been appointed as the new National Sales
Manager of Geodis India. Martijn has the overall responsibility
for sales and market development of
Geodis' freight forwarding and
logistics business line in India.
Martijn has been associated with
Geodis since 2006. Leif Voelcker,
Cluster Managing Director, Geodis South Asia said, “We are certain that
Martijn’s experience and knowledge
of the industry will be a key advantage
for us in India’s fast growing and
demanding market."
Ramesh Mamidala, CEO, Celebi Delhi Cargo
Terminal Management India loves
to spend time with his family
when he doesn’t work. “Kuala
Lumpur is my favourite
holiday spot. I had a fantastic
time there on a holiday with
my family,” he says, adding,
“In my free time I catch up
with my friends. Also,
meditating keeps me fresh
and in tune with my
work.” Mamidala is fond
of North Indian food
and his favourite sport
is badminton.
Bharat J Thakkar, Immediate Past President and
permanent member board ACAAI and
Joint Managing Director, Zeus Air Services
unwinds with reading books
and watching news.
“I love to watch Indian
cricket matches and
prefer swimming when
time permits,” he says,
adding, “One of the
best places to relax
with
friends
and
family is Goa because
of its lavashing beauty
and unique blend of
culture,”
reveals
Thakkar. When it
comes to food,
Thakkar says
that he loves
the flavour of
oriental cuisines.
As a New Year resolution for 2015,
Shesh Kulkarni, President & CEO, UFMI decided
to spend more quality time with his family.
“Currently work is the single
most dominant factor of my
life. However, I am also
writing a book so when I
am not working I take out
time for my book,” he
says. Kulkarni loves to eat
Pan Asian food and his
favourite sport is Golf.
“Though all my holidays
with family and friends have
memories attached to it
but my favourite
vacation spots are
Cape Town in
South Africa and
Grindelwald
in
Switzerland,”
shares Kulkarni.
Talking People is a special dedicated corner, created as a sounding board for who’s who of the Indian and International cargo industry. With Talking People, it is our endeavour to bring you face-to-face with people.Contributed by: Kalpana Lohumi