Cargotalk
SOUTH ASIA’S LEADING CARGO MONTHLY
APRIL 2013
No.1 in Circulation & Readership
Postal Reg. No.: DL (ND)-11/6002/2013-14-15. WPP No.: U (C)-272/2013-15, for posting on 25th-26th of advance month at New Delhi P.S.O.
RNI No.: DELENG/2003/10642 Date of Publication: 22/3/2013
Telematics
in India An emerging technology to streamline logistics
Ministry for Logistics Demand is increasing after ‘Budget 2013’
PLUS
Vol XIII No.5 Pages 60 Rupees 50 cargotalk.in By DDP Publications
Eastern DFC TATA begins construction
MERCURIO PALLIA VENTURES INTO STOCKYARD MANAGEMENT
editorial
Cargotalk Editor SANJEET Sr. Assistant Editor RATAN KUMAR PAUL Desk Editor ALIYA ABBAS General Manager GUNJAN SABIKHI Deputy General Manager HARSHAL ASHAR Regional Head: North & West SHIV KUMAR Assistant Manager: West ROLAND DIAS
Telematics for Logistics
Assistant Manager Marketing YOGITA BHURANI Sr. Marketing Co-ordinator GAGANPREET KAUR Design RUCHI SINHA
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elematics, the technology of sending, receiving and storing information via telecommunication devices in conjunction with control on remote objects, is becoming popular. Telematics, however, is not only limited to Global Positioning System (GPS) technology integrated with computers and mobile communications technology in automotive navigation systems. The term has evolved to refer to the use of such systems within road vehicles, in which case, the term vehicle telematics may be used. The solution (telematics) for commercial vehicle space in India is growing. Albeit logistics industry in India is yet to adopt the technology, the country offers tremendous opportunities to the solution providers because of the multiple challenges the industry has to face in the divers geographical terrain. Accurate route directions, traffic information, easy tracking and tracing, and security of vehicles are the key concerns for the logistics companies. The internationally acclaimed telematics solution providers are expected to address all these issues by catering to local requirements. It is pertinent to mention that the solutions used in developed countries like the US and Europe, may not fit for this largely unorganised logistics market. Accordingly, the solution providers have to put more value added services in their software. For instance, traffic rules and regulations that vary state to
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Photo Journalist SIMRAN KAUR Advertisement Designer VIKAS MANDOTIA Production Manager ANIL KHARBANDA
sate and weather related information in local languages needs to be added to the solution. On the other hand, they will have to assure uninterrupted telecommunications to the remote areas where truck operators often face serious problems. Above all, the solution should be cost sensitive. Since the transport industry in India is dominated by small and medium-sized players, it has to be within their reach. The price point in India is something the service providers will have to work with, to understand which subscription cost makes sense. However, it was found out that many third-party providers and OEMs have had to roll back the telematics positions they took. Roaming costs were very unpredictable, and customers were not happy with that. Logistics service providers, on the other hand, need to be sensible about value addition to their services. Since technology makes the real difference to grab new markets and save cost/time, it paves the way for the long-term win-win benefits for both logistics service providers and their customers.
Circulation Manager ASHOK RANA
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4 I CARGOTALK I APRIL 2013
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Contents April 2013
35
36
37
Airlines wise exim cargo performance for February 2013 from Mumbai Airport Airport wise domestic cargo performance in India for April to December 2012 Airport wise international cargo performance in India for April to December 2012
New Appointments 40
z Geodis Wilson appoints Pedersen as Executive VP z Divya Mohan becomes PR Manager, SIA and Silk Air
Corporate Social Responsibilities 42
20
COVER STORY
Telematics:
An emerging solution to streamline logistics
The relationship between automakers and telecoms in India is still somewhat fractious. This has impeded the development of large third-party telematics service providers. Currently, there is a void that needs to be filled for launching telematics services in areas like traffic information, convenience and emergency response, especially by the logistics companies. An analysis…
SECTORS
National News
25
18
34
48
ACCD Annual Ball: A gracious evening for ‘who is who’ of the industry NISAA Cup 2012-13: PMA Hamburg Sud win the finals
Shipping & Ports
Mercurio Pallia ventures into stockyard management
HAL Ozar Airport Nasik: Aim is to make air transport hassle-free
Cargo Performance
12
44
WCA conference sets a new record
International Airport
8
Family Album
Logistics Services 14
ACFI discusses air cargo for today and tomorrow z DRS Group celebrates silver jubilee of Agarwal Packers and Movers z DTDC launches DotZot to strengthen e-commerce logistics
Earth Talent: SDV reveals commitment towards women empowerment
Airlines wise exim cargo performance for February 2013 from Delhi Airport
50 51
Hazira Port: Completely paperless operations in place Eastern DFC: TATA Projects begins work
COLUMNS
Lead Story 26
Ministry for Logistics: Demand is increasing after ‘Budget 2013’
Guest Column 54
Streamlining goods flow with global standards
International Events 11
Intralogistics is a way to transparent, future-oriented processes
6 I CARGOTALK I APRIL 2013
Current Issues 56
IATA emphasises on priorities to grow
In Conversation 58
Filling the skill gap in aviation, travel and cargo industry WWW.CARGOTALK.IN
National News Trade Associations
ACFI discusses air cargo for today and tomorrow The Air Cargo Forum India (ACFI) recently organised an industry Meet to discuss the current scenario and future projection regarding air cargo traffic. Several industry practitioners and air cargo experts spoke on the occasion, including airlines, airport and terminal operators, freight forwarders and manufacturers/ exporters. On this occasion, Ram Menen, DSVP, Emirates SkyCargo highlighted some key issues that need to be resolved by the industry for an early revival. „ NEHA OBEROI
8 I CARGOTALK I APRIL 2013
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ccording to Menen, rising fuel prices have been a factor in air cargo traffic slowdown since late 2004, diverting air cargo to road transport and maritime modes, which are less sensitive to fuel costs. The price of jet fuel has tripled over the past 8 years, and prices are likely to remain volatile as the threat of supply disruption persists. In the near term, high unemployment in developed economies, tight fiscal policy in Europe and the United States, and overall restrained consumer spending will also dampen air cargo growth. “No doubt increasing oil prices are likely to dampen global trade. There is a little doubt that technology and innovation, along with steps toward conservation, will ultimately reduce
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National News Trade Associations
X(L-R) Sanjiv Edward, Yashpal Sharma, Pradeep Panicker, Ram Menen, Shantanu Bhadkamkar, Varun Singh and Rakesh Prashar attending Air Cargo Forum India meet
the share of petroleum in the transportation sector. But such a development will take time, and until this happens, oil will remain the lion share of the world’s transportation,” said Menen. He also pointed out to a few researches that showed that deficiencies in the physical movement of goods are a greater deterrent to trade growth than institutional trade barriers. Often, these logistical constraints are not confined to the borders, but extend across the internal infrastructure and freight market. The importance of these constraints is not sufficiently recognised by trade negotiators. Partly, this is because they lack an understanding of modern supply chain practices. According to Menen, inventories-tosales ratio is a strong indicator of demand for air cargo lift and 1:1 is the most efficient ratio. Any disruption to supply causes volatility. Currently, the inventory is on the higher side. Efficient inventory management should be a healthy situation for the air cargo industry. “More research is needed for guiding the freight forwarders when confirming their ordered capacity with the airlines. A better capacity management on the freight forwarders’ side will translate into a better service level to the shippers and a more reliable relationship between the airlines and the freight forwarders,” he said. Emphasising on the importance of China and India as air cargo market, Menen highlighted facts that world’s manufacturers are eyeing to these two markets in particular 10 I CARGOTALK I APRIL 2013
for outsourcing. However, he also felt that there would be lot of air cargo movement from these countries to the US to get the final touch done on a finished goods. “It’s a great opportunity for the air cargo industry,” he felt.
X Ram Menen addressing the Meet
He further maintained that air cargo supply chain is heavily reliant on the globalisation of trade. “As strategic impact, we may see production and procurement of goods and components locally or closer to market. Leveraging economies of scope while we go forward is important. Especially, outsourced manufacturing activities are imperative but they need to be controlled,” he observed. Menen also cautioned on maintaining quality of services despite being cost conscious. “We need to look at the bigger picture. Manage cost out of the efficient supply chain management should be the
Planning and cooperation between industry stakeholders using e-commerce as an enabler could transform the air cargo industry into one that can provide customised services to individual shippers
right approach. In this regard, practising e-freight will be the game changer. It provides a virtual market for agents of the air cargo industry, enabling them to develop and engage in logistics integration. It also facilitates tracking and tracing, and minimises inventory costs. Planning and cooperation between industry stakeholders using e-commerce as an enabler could transform the air cargo industry into one that can provide customised services to individual shippers,” Menen opined. To achieve this goal, Menen praised the formation of ACFI as a greater platform. He suggested that ACFI should be associated with other like-minded organisations in the world for a greater cause. The meet was also addressed by Pradeep Panicker, President, ACFI; Shantanu Bhadkamkar, Chairman, FFFAI; Varun Singh, Director logistics and trade compliance, Indian Subcontinent, ME & Mediterranean, GAP; Rakesh Prasher, Director, global supply chain, Ranbaxy Laboratories; Ramesh Mamidala, COO, Celebi Delhi Cargo Terminal Management India; Cyrus Katgara, Secretary, ACFI; Rajiv Khanna, Country Head, Customs Clearance, Jeena & Co; Sanjiv Edward, Head Crago Business, DIAL and Yashpal Sharma, Treasurer, ACFI. WWW.CARGOTALK.IN
International Exhibition Update
Intralogistics is a way to transparent
future-oriented processes
‘t
ransport logistic 2013’, one of the world’s leading trade fair for logistics and supply chain management event from June 4-7, 2013 will also focus on intralogistics. The ‘transport logistic 2013’ will feature product and system innovations for the professional, economical and sustainable solution and demands in the area of intralogistics, warehouse management systems, automatic identification systems and packaging. The Fraunhofer Institute for Material Flow and Logistics (IML) will stage a forum on the topic of “Intralogistics for logistics service providers – highly flexible and versatile as a chameleon” on June 5, 2013. One of the focal points of the forums will be logistics service providers.
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In cooperation with Deutsche Messe, Hanover, intralogistics will be extended and strengthened under the motto “CeMAT@transport logistic”. The focal point of transport logistic as an “International Exhibition for Logistics, Mobility, IT and Supply Chain Management” is an indication of the great importance of intralogistics systems offering the highest possible availability, flexibility and efficiency: A supply chain, for example, can only be ideally organised if the respective nodes and stations function perfectly in terms of logistics. The products and services presented by manufacturers and suppliers will range from systems, technologies and components for storing, transporting, handling, picking, packing, transferring and distributing goods. System control units, logistics IT
systems and warehouse management systems will also be displayed during the event, while ensuring data communication and online transparency along the entire process chain. “During transport logistics, we will showcase the topic of warehouse management systems for logistics service providers, industry and commerce,” said Dr. Matthias Schweizer, Marketing Manager of viastore systems. This primarily involves scalability and the simple addition of other functions depending on requirements. That is because the software increases without a change of system in line with the demands of the user, for example, when adding additional warehouse areas, manual and automatic picking systems, or when creating multi-warehouse and multi-client handling capability in the system.
APRIL 2013 I CARGOTALK I 11
National News Logistics Service
DRS Group celebrates Silver jubilee of Agarwal Packers and Movers The leading logistics company, DRS Group recently celebrated the completion of 25 years of its brand ‘Agarwal Packers and Movers’. The DRS Group is one of the largest operators in the domestic organised home relocation business in India.
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ayanand Agarwal, CMD, of the company, started the transport business with a single truck under the name ‘Agarwal Tempo Transport’ 25 years ago. Prior to starting his own business, Agarwal worked with the Economic Transport Organization in different capacities and has gained rich experience in the transport industry. Currently, supported by his two sons—A K Agarwal and S K Agarwal, he is well aware of diversified interests in education sector besides the core business of logistic services.
The company intends to consolidate its position in this segment by increasing its reliability on marketing, establishing further stations across India” Dayanand Agarwal CMD, Agarwal Packers & Movers
According to the company sources, Agarwal Packers & Movers was established as a brand name for services related to the household relocation segment. Since its commencement, the company has shifted more than 15 lakhs homes till now and caters to large corporate clients as well. The brand has achieved a strong customer recall and strong Brand Equity among the retail customers in India. The company intends to consolidate its position in this segment by increasing its reliability on marketing, establishing further stations across India. The Group is also engaging more corporate clients while maintaining the leadership position among retail household relocation business.
The DRS sources underlined that the Group is the first company in India to launch new concepts like Double Door Carriers, Portable Homes and Perfect Boxes for enhancing its profitability by offering quality services to its clients. The company is also venturing into warehousing business with a 3 million sq ft space and plans to build warehouses across the country. In addition, DRS Group, under the brand MDN Edify has 32 (Edify Schools) K-12 Schools and 148 (Edify Kids - Pre schools) under franchisee arrangement, across the country. Education being their passion and a noble cause associated with it; MDN Edify Education is growing rapidly.
DTDC launches DotZot to strengthen e-commerce logistics
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TDC Courier & Cargo has launched its specialist logistic company for e-commerce – ‘DotZot’ – a pan-India delivery network with a reach of 8000 plus pincodes and 2,300 cities focussing exclusively on the e-retail space. The e-commerce industry is currently estimated at USD 10 billion. However, the key gap that affects the future growth of this industry is lack of logistics infrastructure bundled with customised systems, processes and technology that are imperative to grow the e-retail business. According to Abhishek 12 I CARGOTALK I APRIL 2013
Chakraborty, Executive Director, DTDC Courier & Cargo, the new e-retail logistics specialist ‘DotZot’ will bridge this gap faced in logistics infrastructure by providing superior logistics solutions to e-retailers who are increasingly looking for processes and technology fine-tuned to enhance their customers shopping experience. “We are excited about the launch of DotZot as it marks another new milestone in DTDC’s journey. With this initiative, DTDC has created a more direct and emotive link with the online shoppers looking for superior online shopping experience from
e-commerce sites and to address the logistic demands of the growing e-commerce industry,” said Chakraborty. Commenting on the launch, Sanjiv Kathuria, CEO, DotZot further added, “E-retail needs a focussed, different and an innovative approach for order fulfillment. DotZot will be decisive for merchants who are looking at growing and retaining their e-powered customers. E-commerce customers are becoming increasingly demanding and a great delivery experience is the key differentiator that e-retailers can provide.” WWW.CARGOTALK.IN
Logistics Services Infrastructure Update
Mercurio Pallia
ventures into stockyard management In a bid to add value to its core business, i.e., transportation of finished vehicles for leading car manufacturers in the country, Mercurio Pallia Logistics has recently entered into an agreement with Fiat India Automobiles to design and manage a new stockyard, recently launched at Ranjangaon industrial area in Pune, Maharashtra. „ RATAN KR PAUL 14 I CARGOTALK I APRIL 2013
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uilt on a 12-acre land with a capacity to park over 2,000 cars in the first phase, the Greenfield stockyard will be for the exclusive use of FAG India, which is a fully-owned subsidiary of Fiat India Automobiles (FIAL) and its marketing arm. The stockyard is in the close proximity of FIAT’s manufacturing plant. A number of officials from FAG India, FIAL, Mercurio Pallia Logistics and special guests from industry were present to witness the gracious inaugural ceremony of the yard and to have a look at the stateof-the-art facilities. It is expected that this stride will open a new vista for both the manufacturers as well as service providers to increase their market share remarkably in the near future. WWW.CARGOTALK.IN
Logistics Services Infrastructure Update
Christophe Poitrineau Head, GEFCO Asia
Gurpratap Boparai CEO, FIAL
Addressing the gathering during the inauguration, Vipul Nanda, Chairman and Managing Director of Mercurio Pallia Logistics, said, “This stockyard is the demonstration of fulfilling commitments on delivery of services before time.” The stockyard was designed and launched within two months time. Nanda emphasised that for logistics service providers need of the hour is to venture out for real development by offering value added services for the benefits of their customers. “Customers want great experience pertaining to the services offered by third-party logistics companies with the help of adequate IT services and zero tolerance to any damage. Mercurio Pallia is committed to do so and this stockyard will be the unique model in the country,” he stressed. In order to ensure that the cars are stored in safe and spectacular condition, the storage area is paved with a concrete paver block. The stockyard also comprises a separate loading area to allow loading of cars into car carrier trailers. It has been developed adhering to the safety, security and environmental requirements of the FIAT Group. Mercurio Pallia Logistics is a joint venture between Pallia Transport Company of India and Gefco of France. Mercurio Gruppo SPA of Italy, the original partner of Mercuiro Pallia was taken over by the French 3PL major, belonging to Peugeot of France. Nanda also clarified that the core strength of the company will remain on transportation of finished vehicles (passenger cars and heavy commercial vehicles). “We have decided to move into yard management to add value to our services. This is one of our future-ready moves to offer the whole gamut of 3PL services in the outbound segment particularly in the automotive segment to begin with,” he added. 16 I CARGOTALK I APRIL 2013
Kalpesh Pathak VP, Corporate SCM Fiat India Automobiles
Robert DeCrick Head-SCM, APAC FIAT Chrysler
Vipul Nanda CMD, Mercurio Pallia Logistics
Commenting on the launch of this stockyard, Enrico Atanasio, MD, FIAT Group Automobiles reiterated FIAT Group’s commitment to Indian market. “We view India as a key strategic market and it will soon be one of the five automobile markets in the world. This state-of-the-art stockyard is in accordance with our expansion strategy for the Indian market,” he said. FIAT is confident that India will be a driving force in terms of volume for the Group. “The development of this stockyard in association of our logistics partner Mercurio Pallia will enable us to bridge the demand-supply gap and put us in a strong position to achieve our objective,” Atanasio added.
To supplement Atanasio, Robert DeCrick, Head-SCM, APAC FIAT Chrysler said that the development of this stockyard is in alignment with the Group’s strategy to replicate its global operational standards. “Our objective here is to establish a modern, high quality distribution facility that will support our plan to provide a high level service to our dealers and customers,” he maintained.
According to Andrea Conti, President, Gruppo Mercurio, the company has been doing this kind of business for over 50 years and we achieve a high quality system for stock, PDI, wash and de-protection, body activities and special market activity. “Hundreds of employees provide the service in 50 countries. Compounds in the main Mediterranean ports allow us to provide one of the most complete logistic services to our clients. Barcelona Foss, Setubal, Livorno, Civitavecchia and Salerno are the best links in the Mediterranean Sea and to North Europe. Thanks to compounds and through them, we have a real multimodal service (ship/ train/truck),” he highlighted.
Salient features of the stockyard
The state-of-the-art stock yard is set up in a 12 acres plot Can easily accommodate parking of over 2,000 cars Storage area is paved with paver block Separate loading area - two acres and asphalted Total IT interface with Fiat & FAG India 100 per cent European training back up CCTV surveillance for utmost safety High mast lighting Water harvest system with rainwater drainage facility Effluent treatment plant from environmental safety perspective
Top class PDI booth for 100 per cent quality check before loading into the car carriers
A Great Journey Mercurio and GEFCO are leaders in compound activities in Europe and handle the entire biggest compound in terms of surface, such as Markolsheim in France and San Polo in Italy. The Group utilises compounds in Europe (both West and East), South America and now in Pune. About four millions of car transit through its compounds, mostly PSA but also GM/ Opel/Chevrolet, Suzuki, Honda, Fiat, Iveco, Renault, BMW and Nissan and Dacia, Daimler commercial vehicles.
“Our goal in India will be to develop the compound facilities in the way to reorganise the flows and logistics systems. Our IT technology allows us to provide the highest quality service on compound. Enormous efforts have been taken into account to maintain quality. We have been awarded by our clients for that,” he pointed out. WWW.CARGOTALK.IN
International Airport Cargo Operations
HAL Ozar Airport Nasik
Aim is to make air transport hassle-free
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larion Solutions, a Transworld Group Company performs the air cargo operations at Ozar Airport Nasik. The company offers comprehensive air and sea cargo handling services, such as terminal management and operations, regulated agent and comprehensive ground handling services from Lear jet to AN 124 aircraft at Ozar Airport. The cargo infrastructure at Ozar Airport has been developed by HALCON, a joint working Group of Hindustan Aeronautics Ltd. (HAL) and Container Corporation of India (CONCOR). The cargo facilities include Integrated Pack House for grapes, mangoes and other agri-products, cold storages and Centre for Perishable assisted by APEDA for all types of temperaturecontrolled EXIM cargo. Hans is confident that soon the Greenfield airport will lure a significant number of airlines because of its world standard as well as hassle-free services. “There were many organisations, including IATA and international and domestic airlines that visited our facilities. They expressed commitment to promote Ozar airport as an alternative to save fuel burn and control pollution,” he said. Ozar Airport has received a DGCA Licence as per ICAO standards. Meanwhile, the airport has successfully handled widebodied aircraft operated for odd dimensions 18 I CARGOTALK I APRIL 2013
HAL Ozar Airport at Nasik is all set to position itself in the world aviation map. NS Hans, Chief Operating Officer, Clarion Solutions, Ozar Airport Nasik shared information regarding the services available and recent developments at the airport in an interview with Cargotalk. RATAN KR PAUL and project cargo. “In addition, EDI 1.5 version is fully-operational at this airport and Nasik Customs is regularly conducting interaction sessions for the air cargo industry to facilitate the trade and to ensure seamless operations,” Hans pointed out.
charters and business jet aircraft. Major commodities that the airport is currently handling include engineering goods, pharma, defence cargo, electronics, automobiles, perishables and project cargo.
Currently, only non-schedule airlines Commenting on the expectations of and business jet aircraft are operating to performance in the months to come, he Ozar Airport. Hans opined many leading pointed out, “Overall markets are down. A airlines, including DHL and Blue Dart slackening demand in developed economies are planning to start hub & has hit outbound shipments spoke operations from Nasik. from India, even to countries “International schedule airlines and regions with which it has are also conducting visits to economic partnership and see our facilities,” he added. To free trade agreements. The increase efficiency, the airport demand for raw material and has started the construction intermediary products from of a new passenger terminal India has consequently fallen building and is expected to be as advance economies are completed by December 2013. currently under stress.” This new passenger terminal NS Hans is likely to increase flight He appeared bullish about Chief Operating Officer, operations to and from this the traffic from this airport Clarion Solutions, Ozar airport, resulting in increase of in future owing to its several Airport Nasik belly-hold cargo capacity and advantages and USPs. “We traffic. To woo more airlines, the Fueler has have made an honest attempt to offer lowalso enhanced aircraft refuelling capabilities. cost product and service with reliability and Hans also asserted that Bonded ATF is consistency in service standards. This is cheaper at Ozar airport in comparison to any India’s first Greenfield project, where we other metro airports. provide multi-modal logistics and integrated air and sea cargo services. Geographically, In 2012, Ozar Airport handled this airport is well placed and near to approximately 1,253 flight movements. production and consumption areas of the Presently, traffic mainly consists of cargo Nasik region,” he said. WWW.CARGOTALK.IN
T Cover Story Emerging Technology
The relationship between automakers and telecoms in India is still somewhat fractious. This has impeded the development of large third-party telematics service providers. Currently, there is a void that needs to be filled for launching telematics services in areas like traffic information, convenience and emergency response, especially by the logistics companies. Sanjay Gupta, Head of Telematics and Fleet Management services at Tata Motors and Chandrika Shetty, VGT Head for Volvo India elaborates on the importance of Telematics.
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‘Telematics Update (TU)’ survey unveiled that respondents had no agreement about what Telematics services customers there were most likely to pay for. They were evenly split among the four choices: navigation, fleet and security, in-car entertainment, and diagnostics/ emergency and roadside assistance. According to the survey, on-board navigation with pre-loaded maps has not caught on in India, even though it has been around for several years. There are several reasons for this. First, there are inaccuracies in maps due to road or POI changes between upgrades as well as inadequate detailing. There is also a high prevalence of chauffeur-driven cars in India where the chauffeur is also the navigator, while, mostly, people drive on familiar local routes. Finally, most smartphones have navigation, which suffices for the infrequent instances when navigation is required.
ELEMATICS
An emerging solution to streamline
logistics RATAN KR PAUL
20 I CARGOTALK I APRIL 2013
WWW.CARGOTALK.IN
Cover Story Emerging Technology
The TU survey highlighted that Telematics is already a paid service in heavy trucks as well as fleet cabs, and that will continue to grow. For location-based services to catch on, more value addition will be required. Tracking in commercial vehicles is already fairly common. Accurate traffic information and journey time estimation along with navigation will make a lot more people interested. Due to the high incidence of theft, reliable security services will find takers. For in-car entertainment, Internet radio has still not caught on in India. Even when it does, it is still hard to say whether people will opt for direct subscription against advertising consumption-based models. “Currently, there is an absence of large third-party service providers for emergency and roadside assistance services in India. However, demand exists, and people will pay for them,” the survey observed. “Talking about India, I can foresee partnerships between auto OEMs and full-scale telematics service providers, telecom companies, software companies, such as Google, and providers of third-party services,” said Gupta.
services getting added. In passenger cars, smartphone integration will be first off the block and will enable navigation and in-car infotainment.
Fleet telematics, which is presently limited to trackingbased services, will see diagnostics and safety and security services getting added.” Sanjay Gupta
Head of Telematics and Fleet Management services at Tata Motors
According to him, third-party services are currently a void that needs to be filled for launching Telematics services in areas like traffic information, convenience and emergency response. He also maintained that in the fleet and commercial vehicle space, the benefits of using Telematics are tangible and demonstrable. The challenge will be to change habits, mindsets and a certain diffidence towards technology through information and education of customers. “Reliability and value of services will have to be established and demonstrated before customers will open their wallets. Automakers will have to consciously look at upfront risky investments with long payback periods. Another barrier that most automakers will face is that their competency and systems cater to product marketing. Service development and marketing will be a new area they will have to learn,” he opined. Commenting on the future role of auto manufacturers to introduce Telematics, Gupta said, “Fleet telematics, which is presently limited to tracking-based services, will see diagnostics and safety and security 22 I CARGOTALK I APRIL 2013
We’ll be supporting both global development and local solution development for Volvo trucks, buses and construction equipment in India” Chandrika Shetty
VGT Head for Volvo India
On the other hand, as Volvo eyes increasing sales in India—and increasing vehicle connections—Shetty is charged with leading automotive infotainment and solutions development for Volvo Group and then bringing the most relevant services into India and APAC. Volvo started to set up in India in 2011, and she has been supporting the Indian site setup. There will be two global sites for Volvo Technology, Göteborgand Bangalore, with aggressive ramp-up plans. “We’ll be supporting both global development and local solution development for Volvo trucks, buses, and construction equipment here in India and also supporting Eicher Motors, our joint venture partner,” she informed. According to Shetty, Globally, Volvo is looking at having a common platform. The company has two different platforms now, one for the external market, working with car OEMs that are not part of the Volvo Group, and there it has the NGP-based platform. The company is developing complementary services there. Then, there is the Volvo Group’s internal group platform. “Our strategy for next year is to be able to move all our services onto these platforms and to be able to use the services and best practices from all our solutions. Locally, we are looking at how can we leverage what has been developed and localise it for market-specific services or the complements we need,” she said. Volvo is looking at two different types of partnerships. One is providing open interfaces from its solutions. “We have a quadrant strategy, where we have services mainly for customers and providers and services for OEMs and dealers. We manage solutions for OEMs and dealers in-house. For customer- and driver-specific services— that is, revenue-making services that support their logistics and transport operations—we try to partner with third-party providers to create services,” she added. The company is looking for partnerships, and it is creating an open platform to enable this kind of partnership. “We also have preferred partners to develop solutions both here and globally,” Shetty informed. Commenting on the ground reality of Indian market to adopt Telematics as a WWW.CARGOTALK.IN
Cover Story Emerging Technology
TELEMATICS INDIA AND SOUTH ASIA 2013 IN BENGALURU ‘Telematics India and South Asia 2013’, which has been organised on April 17 and 18 at Chancery Pavilion in Bengaluru will be addressed by several automobile manufacturers and technology experts from India and abroad including Infosys, TATA, Volvo and Mahindra Satyam, Daimler and Bosch. At the Telematics India & South Asia Conference participants will be debating more region-specific telematics deployment strategies. Conference sessions will cover key services for the Indian and South Asian market. It will ponder upon how the market is moving from security needs, towards navigation and connected infotainment services in order to plan your strategy for market penetration. A crucial update on how Europe and the US are utilising infotainment systems, such as traffic management and real-time information will also be discussed at the event. Other highlights of the conference are: Examining automotive OEM investment in the fleet space with an emphasis on RVD (remote vehicle diagnostics), driver profiling and tracking services to reduce fleet operators’ costs
24 I CARGOTALK I APRIL 2013
Examining the evolving relationship between OEMs, service providers and local partners to create a mutually beneficial telematics partnership paradigm Discussing how the latest solutions, including navigation and LBS solutions from mapping providers will allow the industry to improve concerns over positional accuracy and data quality to win over local customers Understanding how SVR solutions are being used to track taxis, school buses and other commercial fleets to safeguard both drivers and passengers/ goods against theft and route changes Designing an integrated and cost-effective services bundle to provide comprehensive features such as navigation, music, safety and emergency apps all in one bundle and at the right price-points Determining which services will be most popular and can be further customised to suit the subcontinent, such as points of interest, digital radio and regionalised social media and streaming services
In India, we are working with our joint venture partner Eicher to understand what is required. It is a long journey. We need to look at what should be the strategy technology, Shetty maintained, “Today, we are just starting off. When it comes to Europe and North America, we have the technology and services, and we’re continuously improving how we provide these to customers. In India, we are working with our joint venture partner Eicher to understand what is required. It is a long journey. We need to look at what should be the strategy and what should be the services.” Volvo currently is prioritising the needs of Volvo Group’s commercial vehicles. Here it has been revealed that even though the customer today is more aware of trackand-trace and fuel consumption, in the long run, having remote diagnostic services and dynamic service planning will make sense. “Also, the price point in India is something we will have to work with, to understand what subscription cost makes sense. We know that many third-party providers and OEMs have had to roll back the telematics positions they took. Roaming costs were very unpredictable, and customers were not happy with that. The quality of service was also something they had a lot of complaints about. These are affected by many factors, like telecom coverage and map availability. The market itself is maturing. Customers are aware, and they want more. We have to find the right service that makes sense for the customer and for the telematics provider,” she shared. WWW.CARGOTALK.IN
International Events News Update
sets a new D record WCA Conference
The 2013 WCA Family Annual Conference Week set a new record in which more than 2, 400 freight forwarders participated. The WCA Week was held in Bangkok from 4-10 March.
uring the week, more than 90,000 individual business meetings were scheduled and conducted – using WCA’s industry leading One-on-One meeting software. With participation restricted to WCA members and vendor partners only, the 25 per cent rise in attendance reflected the increasing strength of the network, which now encompasses over 4,800 freight forwarding offices in 189 countries around the world. The event witnessed the launch of new WCA Events Application for iPhone/iPad that allowed each delegate to instantly schedule one-on-one meetings, access their daily meeting schedules, research profiles of each attending company and view the full agenda and conference layout.
S Delegates seal another deal at one of 90,000 successful One-on-One business meetings conducted during the WCA Family Conference Week
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At this event, there were several announcements pertaining to new initiatives by various participant companies. David Kerr, Vice-President
Cargo, Etihad Airways informed, “We are now seeing around 1,000 tonne per month through the programme and so far, we have only scratched the surface. Our engagement with WCA has provided a springboard for us to actively engage much more effectively with the SME freight forwarding community.” He also announced that a new SME forwarder loyalty programme that will reward agents with flights, upgrades and other benefits based on their spending with Etihad. World Information Network (WIN) Managing Director, John DeBenedette revealed that a new partnership with CHAMP Cargosystems would ensure that WIN remains the leading e-communications solution for SME freight forwarders. From June onwards, WIN will be able to offer a full forwarder-to-air carrier electronic transmission of all data, whatever system the forwarder currently operates.
APRIL 2013 I CARGOTALK I 25
Lead Story ‘Budget-2013’ Reaction
Ministry for Logistics
Demand is increasing after ‘Budget 2013’ It appears the cargo and logistics industry once again failed to attract the attention of the Railway and Finance Ministers, because of the absence of a strong industry voice and a formal institution at the corridor of power. Cargotalk spoke to industry professionals to share their thoughts if this is the right time the industry should demand for a nodal ministry called the ‘Ministry of Logistics’ in view of an ensuing new government scheduled to be formed in 2014. RATAN KR PAUL
CUSTOMS DUTY ANNOUNCED IN BUDGET 2013 Customs Duty on imported luxury goods increased The customs duty on imported luxury goods, such as high-end motor vehicles, motorcycles, yachts and similar vehicles has been increased Environment-friendly vehicles given benefit of Extended Period of Concession Aircraft manufacture, repair and overhaul industry also given certain concessions 26 I CARGOTALK I APRIL 2013
T
he cargo, logistics and supply chain industry in the country expected some serious and bold announcements from the Finance Minister in his ‘Budget 2013’. According to the sector experts, when the country’s economy is undergoing slowdown, supply chain and logistics sector, in particular, has a pivotal role to play in the swift recovery of its economy. In India poor infrastructure viz inadequate roads and railways, congested ports and airports, insufficient power, complex state regulations, complex customs regulations, irrational tax regime (multiple taxes) and multiple paper works (documentations), are primarily hindering the growth process of the supply chain and logistics sector. Above all, the government should have announced a centralised toll mechanism to bring about uniformity in the toll charges across different checkpoints. In addition, more budgetary support was expected to develop more access-controlled expressways, for the free flow of heavy vehicles. Apart from roads, warehousing has been the vital element to grow the supply
chain and logistics industry. The industry experts say, in order to create worldclass warehousing facilities in India, the government needs to create conducive environment. There is a need for long-term investment from public as well as private players for building warehousing facilities. The government on its part, needs to bring about land reforms, which will help in setting aside lands for creation of logistics facilities. Unfortunately, the Budget 2013 did not attempt to address these issues. Rather, it added burden on the industry.
Disappointing for the Logistics Industry Reacting to the Railway Budget in particular, Subhasish Chakraborty, Chairman & Managing Director, DTDC Courier & Cargo said that it is not a pro-industry as far as logistics industry is concerned. On one side, railway freight is increased and on the other side, most of the belly space in trains is given to SLR or leased to vendors. As such, the space available for retail booking is negligible. Whereas, the freight rates for retailers is very high and it is in no way helpful for the industry. Thus cargo and logistics industry is unable to either increase their freight WWW.CARGOTALK.IN
On one side railway freight is increased and on the other side, most of the belly space in trains is given to SLR or leased to vendors”
$ PRUH VSHFL¿F announcement on the roadmap to GST would have addressed some of the core policy concerns logistics sector”
For a healthy growth of the logistics sector, the much talked about one trillion dollar investment in the logistics infrastructure has to come at the earliest”
Subhasish Chakraborty Chairman & Managing Director, DTDC Courier & Cargo
Malcolm Monteiro SVP & Area Director, South Asia, DHL Express
Shantanu Bhadkamkar Chairman, FFFAI
business or offer the most competitive rates to their customers.
faster than GDP, and investment in logistics infrastructure needs to be made 10 years ahead of requirement. “India had a poor infrastructure at the time of Independence. We cannot aspire to have double-digit growth rates without accelerated investment in the infrastructure, including logistics infrastructure. As the budget doesn’t seem to show this direction even as a policy statement, we don’t expect growth in the cargo,” he maintained.
LR Thapar, MD, Rail Operations, Hind Terminals, too expressed concerns over the increase of rail freight. “Since rail freight is already burdened with extra pressure of fuel price of Rs 10 per liter as compared to road transport, the decision will further put the container train operators (CTOs) in a critical position. Already, the CTOs are facing serious problems and struggling for their survival because of unfriendly policies,” he highlighted.
SL Sharma, Vice President, ACAAI pointed out that the hike of rail freight will have an adverse effect on transaction costs and exports from India. “This will definitely affect the export industry seriously, despite the positive efforts by the Ministry of Commerce,” he said. Hence, the government must take immediate steps to arrest the factors that are responsible for obstructing the growth of the logistics industry.
Shridhar Subramaniam, Secretary, NISAA, was of the opinion that there is nothing much to talk about for the cargo and logistics industry in the Rail Budget. CTOs have been requesting the Ministry of Railways for relaxations, which the Railway Minister has assured them of policy interventions, expecting to boost container movements on trains. However, recent hike by the Ministry of Railways to the tune of almost 31 per cent between December,2012 and February,2013, has put CTOs and shipping lines in a very uncomfortable position. We do expect such steep increases will add to fragmentation of cargo and imbalances. This will lead to further increase in transaction cost.
According to Malcolm Monteiro, SVP & Area Director, South Asia, DHL Express, the ‘Budget 2013’ aims to create the basis for a stable macro-economic environment, which is in the interest of the economy as a whole, including the logistics sector. SMEs will be the growth drivers for logistics industry in India, and the Budget has many proactive measures targeted at SMEs. However, a more specific announcement on the roadmap to GST, and some more proactive reform measures on trade facilitation would have addressed some of the core policy concerns of the logistics sector. “It’s important that both manufacturing sector and agricultural sector grows, so that the logistics sector can grow. However, for a healthy growth of the logistics sector, the much talked about one trillion dollar investment in the logistics infrastructure has to come at the earliest. This investment needs to be done at the right place in the right manner,” said Shantanu Bhadkamkar, Chairman, FFFAI. In his opinion, the logistics sector grows at rates WWW.CARGOTALK.IN
“I did not notice any positive provisions for promoting growth of logistics industry. Increase in freight rates by railways will deter multi-modal choice. There were no steps for development of terminals, warehouses and container transport,” endorsed RC Dubey, President, ACTO.
APRIL 2013 I CARGOTALK I 27
Lead Story ‘Budget-2013’ Reaction
“Rail Budget and General Budget is very general and do not offer much to trade. Being located in dry ports, a lot is depending on rail haulage which is very expensive and making North India shipper difficult to compete,” endorsed Ashish Mahajan, Director, Perfect Cargo Movers. In his opinion, Rail Budget might have carried some relief for exporters and importers. “If railways can offer better handling of loose cargo (that are plenty) we can have even goods train specially meant for exports as well as domestic movement can be planned by the logistics service providers,” he observed. He also maintained that the dedicated rail corridor project must have some timelines. S Natraj, Director, Atlas Shipping Services, underlined that given India’s large longitudinal and latitudinal extent, railways is the most important mode of transport between product point and market point. Accordingly, logistics sector had high expectation from the Railway Budget. On the other hand, the industry was also expecting the GST to be announced in the General Budget. “Again there is an utter disappointment. GST implementation would have helped
to have better and faster connectivity and would simplify the complicated tax method. This will not only improve the efficiency on transport movements but also will reduce cost,” he said. Milind Shahane, CEO, DIESL, however, has different viewpoint. According to him, the Rail and the General Budgets for 2013 had allocation for investments in various products related to infrastructure like railways, roads, airports and ports. These investments would definitely be positive to give thrust to economic activity and boost the industry. “This would help the growth of logistics cargo handling, material movement and would be positive for the logistics sector in the coming years,” he argued. He also maintained that there has been some focus on cargo and logistics in the budgets of 2013, though the government has not fulfilled many of the requirements of the industry like tax concessions, GST roll-out, additional infrastructure and reduction of administration procedures. “These long pending demands would definitely have given more boost to the logistics industry,” he added.
Manufacturers and Exporters Perspectives According to Kalpesh Pathak, VP, Corporate SCM, Fiat India Automobiles, there is nothing exciting in the rail as well as General Budget, which will help overall economy to grow. Unless overall economy grows, it is difficult for logistics industry to grow. Finance minister has definitely tried to keep focus on infrastructure growth but has very limited funds for budgetary support to expedite the same. However, if the government is able to come up with good PPP investment schemes for infrastructure growth, certainly things will work on faster track. With political compulsions and limitations, it looks difficult for the government to build consensus and fast clear PPP projects. Same is the case with Railway Budget. They lack funds to allocate for critical projects like DFC, track infrastructure expansion, which can certainly put logistics growth on different trajectory. “In given situation, both Railway and General Budgets are okay but certainly not going to help putting logistics industry growth in the fast lane,” he said. M Rafeeque Ahmed, President, Federation of Indian Export Organistions
7KLV ZLOO GH¿QLWHO\ affect the export industry, despite the positive efforts. The government must take steps to enhance the growth of the logistics industry”
I did not notice any positive provisions for promoting growth of logistics industry. Increase in freight rates by railways will deter multi-modal choice”
Since rail freight is already burdened with extra pressure of fuel price as compared to road transport, the decision will further put the CTOs in a critical position”
SL Sharma Vice President, ACAAI
RC Dubey President, ACTO
LR Thapar MD, Rail Operations, Hind Terminals
28 I CARGOTALK I APRIL 2013
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Lead Story ‘Budget-2013’ Reaction
(FIEO) showed concern over the increase in freight rates upto five per cent and the possibility of imminent hike in freight due to increase in fuel costs as per the dynamic freight policy announced. He said that, it would add on to the cost of inputs / business at a time when there is a general slowdown in the economy with GDP levels plunging to a decade low of five per cent. This may also add to inflation.
The recent hike by the Ministry of Railways to the tune of 31 per cent between Dec,2012 and Feb,2013, has put CTOs and shipping lines in uncomfortable position”
If railways can offer better handling of loose cargo, we can even have goods train specially meant for exports and so that we can plan better logistics service”
Shridhar Subramaniam Secretary, NISAA
Ashish Mahajan Director, Perfect Cargo Movers
GST implementation would have helped to have better and faster connectivity and would simplify the complicated tax method” S Natraj Director, Atlas Shipping Services
30 I CARGOTALK I APRIL 2013
There has been some focus on cargo and logistics in the budgets of 2013, though the Government has not IXO¿OOHG PDQ\ RI the requirements of the industry ” Milind Shahane CEO, DIESL
Ahmed also stated that as far as trade is concerned, the recent approval of three investment proposals, including a doubling of 247.75 km Palan-Samakhiali Section in Gujarat will relieve bottlenecks in evacuation from ports of Mundra and Kandla enabling off-take from the northern hinterland, provided it does not suffer backlog as has happened in similar projects in the 11th plan.
Need a Strong Voice In view of the apathy towards logistics industry shown by various ministries, is it the right time to put serious thoughts about having a separate ministry for logistics? “At present, there is no exclusive platform available for the cargo and logistics industry to bring out the pertinent issues for deliberations and arriving at industry friendly solutions. I think that it is the right time to have an exclusive responsibility for the development of logistics industry— either by Railway Minister or Transport Minister or a separate minister dedicated for logistics and express industry,” stressed Chakraborty. “Yes, the government should work out some modalities to address logistics industry. Though logistics is playing a significant role, however, there are no significant policies and measures to support this industry,” supplemented Balaraju G, MD, Sindhu Cargo Services. Sharma also maintained that it is exceptionally essential that the government must contemplate seriously about creation of Logistics Ministry. All trade and industry associations and allied agencies must impress upon the Government to implement it at the earliest as it will be more beneficial for the growth of cargo and logistics as well as exim industry. “No ministry is looking at logistics industry as its special task. It is a good idea to think of a separate ministry to remove the sectoral biases,” Dubey viewed. Thapar also expressed similar perspective. WWW.CARGOTALK.IN
Lead Story ‘Budget-2013’ Reaction
There is nothing exciting in the Rail and General Budget, which will help overall economy to grow. Unless economy grows, LW LV GLI¿FXOW IRU ORJLVWLFV industry to grow. ”
An increase in freight UDWHV XSWR ¿YH SHU FHQW and the possibility of imminent hike in freight due to increase in fuel costs would affect the economy”
Kalpesh Pathak VP, Corporate SCM, Fiat India Automobiles
The government should work out on modalities to address logistics industry. Though it is playing a huge role but there are no measures to support this industry”
M Rafeeque Ahmed President, Federation of Indian Export Organistions (FIEO)
Balaraju G MD, Sindhu Cargo Services
Monteiro maintained that the requirement is a single comprehensive platform within the government that seeks to address the diverse problems of logistics in India. The government can be the best judge as to which Ministry is best suited to create and administer such a platform. Pathak pointed out that there is a lack of co-ordination between different government departments which impact cargo and logistics industry and certainly having nodal agency or ministry of logistics will do good for the nation as well as the industry. “Personally,
I feel due to fragmented nature of the industry, there are very limited platforms and opportunities available to raise the voices for the same. To me it appears, it requires a visionary leader to take charge in 2014 who can think differently at the helm of affairs of our country to rescue the industry by having a nodal agency to ensure co-ordination between different ministries or having dedicated ministry for logistics,” he advocated. “Yes, the Ministry of Logistics will definitely help address various issues faced by the industry, and a separate ministry for all logistics-related matters could provide a
LAND ACQUISITION FOR DFC NEARING COMPLETION The Minister of Railways, Pawan Kumar Bansal has said that land acquisition for nearly 2,800 km of the eastern and western freight corridors is almost complete. The first major civil construction contract on the 343 km KanpurKhurja section of the eastern corridor has already been awarded and by the end of 2013-14, construction contract to cover up to 1,500 km on the two corridors would be awarded and the work started. Preliminary Engineering-cum-Traffic Studies (PETS) have been taken up on four future Dedicated Freight Corridors.
32 I CARGOTALK I APRIL 2013
much-needed solitary point of contact,” observed Subramaniam. Taking cue from Subramaniam, Natraj said that as of now, the logistics sector encompasses multiple agencies that work at cross-purposes. Accordingly, one single umbrella will help in bringing in more focus and efficiency to improve this important sector. “The Ministry of Logistics can be a platform for all logisticians to take their trade related issues,” endorsed Mahajan. According to Shahane, there is a need for improved coordination between the various departments in the government, and the logistics industry needs to represent more strongly to these agencies in order to act on some of the issues. “It is time that all the stakeholders forget their difference of opinions and form a good alliance and raise our voices to be heard to the powers that be. This industry is one of the life lines of our economy and it needs recognition. I hope the new government which will be formed in 2014 pay attention to this life line sector,” appealed Robert Sands, Joint Managing Director, Jupiter Sea & Air Services. “It is not enough to have a ministry for logistics, it needs to be a powerful ministry,” Bhadkamkar concluded. WWW.CARGOTALK.IN
Cargo Performance Export/Import
DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT, IGI AIRPORT, NEW DELHI (AIRLINE-WISE IMPORT/EXPORT CARGO PERFORMANCE FOR THE MONTH OF FEBRUARY 2013) All wt. in mt. S. No.
1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 51 52 53 54 55 56 57 58 59 60 61 62 63 64
Airlines
Jet Airways Emirates Air India &DWKD\ 3DFLÂżF British Airways Singapore Thai Airways Lufthansa Cargo Airline Fedex Express Corpation Air France Kalitta Air Qatar Airways Swiss Intl Airline Ltd Etihad Airways Virgin Atlantic Malaysian Airline System Turkish Airlines Uzbekistan Finnair KLM M/S All Nippon Airways Japan Airlines Saudia China Eastern Airlines $HURĂ€RW &DUJR $LUOLQHV United Airlines Martin Airline Lufthansa Cargo Ag Air China Kam Air Indigo Cargo Mahan Air China Air Blue Dart Air Shagoon Pvt. Ltd. Ariana Afghan Airlines Oman Air Air Mauritius Gulf Air Spice Jet Sri Lankan Airlines Ltd Dhl Express Hercules Aviation Flywell Aviation Eva Air Air Arabia China Southern Airlines Ethopean Airlines Asiana Airlines 6DÂż $LUZD\V Air Astana Philippine Airlines Turkmenisthan Airlines Kenya Pakistan International Kuwait Airlines Mihin Lanka Airlines Ups Royal Jordanian Airlines Jetlite Druk Air Iraqi Airways Sam Aviation Elal Israel Air Total Cargo handled in Feb ‘12’ % VARIATION
34 I CARGOTALK I APRIL 2013
Export (MTs)
Export Perishable Cargo (MTs)
1029 1048 1015 782 602 341 509 460 524 435 383 452 355 414 286 367 295 335 313 280 92 229 172 209 144 137 124 177 132 147 114 112 116 79 83 67 74 31 51 0 95 0 23 63 52 39 40 40 25 10 14 6 2 12 0 7 2 1 1 0 0 13921 13086 6.38%
257 916 342 39 5 30 62 3 13 0 125 28 31 3 32 13 54 17 24 2 4 100 0 4 1 1 1 8 2 12 3 0 4 2 13 22 22 0 2 0 0 0 7 6 1 16 0 4 0 5 1 0 9 0 0 0 0 0 0 0 0 2304 2544 -9.44%
Export (with Peri.) (UPL) (MTs) 1286 1964 1357 821 607 372 570 463 538 436 508 480 386 417 318 380 350 352 338 283 95 329 172 213 145 138 125 185 134 158 117 112 120 80 96 89 97 31 53 0 95 0 30 69 53 54 40 44 25 15 15 7 11 12 0 7 2 1 1 0 0 16224 15630 3.80%
Import
1422 503 977 639 731 932 501 407 301 402 285 257 285 245 304 160 143 135 146 122 281 12 165 61 125 117 91 0 39 12 43 26 0 38 20 15 4 69 46 97 0 85 54 4 15 9 19 1 10 3 3 7 2 0 11 0 4 0 0 0 0 11655 12683 -8.10%
Total Cargo
2708 2466 2334 1460 1338 1304 1072 870 839 838 792 737 672 662 622 540 493 487 483 405 376 341 337 274 270 255 215 185 173 171 160 138 120 118 115 104 101 100 99 97 95 85 84 73 68 63 59 44 35 18 18 13 12 12 11 7 5 1 1 0 0 27879 28313 -1.53%
% of Total 9.71% 8.85% 8.37% 5.24% 4.80% 4.68% 3.84% 3.12% 3.01% 3.01% 2.84% 2.64% 2.41% 2.38% 2.23% 1.94% 1.77% 1.75% 1.73% 1.45% 1.35% 1.22% 1.21% 0.98% 0.97% 0.92% 0.77% 0.66% 0.62% 0.61% 0.57% 0.49% 0.43% 0.42% 0.41% 0.37% 0.36% 0.36% 0.36% 0.35% 0.34% 0.30% 0.30% 0.26% 0.24% 0.23% 0.21% 0.16% 0.13% 0.06% 0.06% 0.05% 0.04% 0.04% 0.04% 0.03% 0.02% 0.00% 0.00% 0.00% 0.00% 100.00%
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MUMBAI CSI AIRPORT
EXPORT/IMPORT CARGO TONNAGE HANDLED IN FEBRUARY 2013
S.No.
1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 49 50 51
Airlines
Jet Airways Emirates Air India Lufthansa Singapore Airlines &DWKD\ 3DFLÂżF British Airways Etihad Airways Qatar Airways Turkish Airlines Swiss Intl. Airlines Saudi Arabian Airlines Air France Ethopian Airlines Malaysian Airlines Federal Express Thai Airways Delta/KLM Airlines UPS Virgin Atlantic Martin Air South African Airlines Fin Air Gulf Air Kenya Airways Air Mauritius Korean Air Air Arabia Kuwait Airways Air Cargo Arologic C/O Lufthansa Indigo Air EL-AL Airlines Oman Air United/Continental Airlines Blue Dart Srilankan Air Yemenia Airways Bangkok Airways Iran Air Pakistan intl Airlines Egypt Air Charters Royal Jordanian Air China NorthWest Airlines Island Aviation (Maladvian) Baharin Airlines .LQJÂżVKHU $LUOLQHV Qantas Royal Joradian Others
TOTAL %Variation over January 2013 %Variation over February 2012
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Export General
Export Perishable
Total Export
Import
Total Exp+Imp
1085.04 1547.92 752.99 440.82 848.38 602.47 837.99 581.13 511.93 285.73 592.94 369.12 629.11 294.62 344.25 178.59 233.30 150.86 73.52 0.00 265.26 216.51 62.24 200.58 182.44 114.71 61.49 86.89 0.00 91.04 92.42 71.63 27.60 62.16 48.23 45.34 40.26 21.97 19.60 17.82 0.00 19.17 9.17 0.00 8.48 8.20 0.00 0.00 89.76
1016.66 1233.18 1221.00 567.46 351.16 563.70 86.40 254.31 50.11 106.28 148.35 75.95 9.87 99.83 40.20 100.52 104.64 0.00 4.88 0.00 1.10 20.81 168.46 2.93 14.27 17.97 103.01 56.06 0.00 30.20 1.74 46.11 7.96 0.00 7.95 9.63 7.54 2.44 0.21 0.00 0.00 0.00 0.00 11.61 0.00 0.00 0.00 0.00 91.84
2101.70 2781.10 1973.99 1008.28 1199.54 1166.17 924.39 835.44 562.04 392.01 741.29 445.07 638.98 394.45 384.45 279.11 337.94 150.86 78.39 0.00 266.36 237.31 230.70 203.51 196.71 132.69 164.50 142.96 0.00 121.24 94.16 117.74 35.56 62.16 56.18 54.96 47.80 24.41 19.81 17.82 0.00 19.17 9.17 11.61 8.48 8.20 0.00 0.00 181.60
2016.52 1141.88 741.78 1528.97 912.52 605.00 503.06 440.23 331.89 429.61 65.20 252.97 7.13 208.13 205.83 271.03 166.07 247.35 294.31 338.48 16.68 0.00 2.53 1.53 2.39 44.08 1.28 11.25 154.01 30.61 50.72 1.64 69.93 20.53 18.47 2.06 1.48 1.51 2.51 3.18 20.37 0.00 3.66 0.00 1.42 0.00 0.00 0.00 362.38
4118.21 3922.98 2715.77 2537.25 2112.06 1771.17 1427.45 1275.67 893.93 821.62 806.50 698.04 646.11 602.57 590.28 550.14 504.01 398.21 372.70 338.48 283.04 237.31 233.23 205.04 199.10 176.77 165.77 154.20 154.01 151.85 144.88 119.38 105.50 82.69 74.65 57.02 49.28 25.92 22.31 21.01 20.37 19.17 12.83 11.61 9.90 8.20 0.00 0.00 543.98
13257.34 4.05 10.30
6745.58 (-) 7.69 (-) 0.29
20002.92 (-) 0.22 6.49
12409.05 (-) 0.04 (-) 11.92
32411.97 (-) 0.15 (-) 1.40
APRIL 2013 I CARGOTALK I 35
Cargo Performance Airports in India
TRAFFIC STATISTICS DOMESTIC FREIGHT
Freight (in Tonnes) For the Month S. No. Airport
Deccember 2012 December 2011
For the period April to December % Change
2012-13
2011-12
% Change
(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11
Chennai Kolkata* Ahmedabad Goa Trivandrum Guwahati Calicut Jaipur Srinagar Amritsar Portblair Total
6694 6761 2879 256 138 474 48 554 233 4 245 18286
7104 6970 1454 447 132 557 13 530 185 6 252 17650
-5.8 -3.0 98.0 -42.7 4.5 -14.9 269.2 4.5 25.9 -33.3 -2.8 3.6
59472 59983 26654 3498 1112 4657 241 5126 2459 72 1506 164780
63404 61984 11173 2990 1015 6234 143 4971 1836 63 1751 155564
-6.2 -3.2 138.6 17.0 9.6 -25.3 68.5 3.1 33.9 14.3 -14.0 5.9
16191 15568 6965 2896 773 422 42815
18013 16407 7371 2993 801 418 46003
-10.1 -5.1 -5.5 -3.2 -3.5 1.0 -6.9
143293 138107 62467 25173 6679 3652 379371
149768 143794 62861 26087 6369 3609 392488
-4.3 -4.0 -0.6 -3.5 4.9 1.2 -3.3
1669 303 458 219 91 0 25 198 19 108 121 0 3211
2316 291 569 271 44 0 24 310 28 171 77 0 4101
-27.9 4.1 -19.5 -19.2 106.8 4.2 -36.1 -32.1 -36.8 57.1 -21.7
15075 1643 4719 1570 1016 0 214 2050 254 1002 733 0 28276
17237 2934 5613 2728 698 0 204 2265 274 1230 595 0 33778
-12.5 -44.0 -15.9 -42.4 45.6 4.9 -9.5 -7.3 -18.5 23.2 -16.3
306 504 138 482 144 259 152 55 70 64 125 0 40 0 29 1 29 2398
165 386 105 516 249 299 240 145 70 102 136 0 75 3 34 7 34 2566
85.5 30.6 31.4 -6.6 -42.2 -13.4 -36.7 -62.1 0.0 -37.3 -8.1 -46.7 -100.0 -14.7 -85.7 -14.7 -6.5
2406 3495 1101 4469 1812 3100 1532 1126 739 594 930 0 215 16 239 16 263 22053
1679 3731 873 5301 2102 3895 1620 1281 618 985 1100 0 549 24 246 37 419 24460
43.3 -6.3 26.1 -15.7 -13.8 -20.4 -5.4 -12.1 19.6 -39.7 -15.5 -60.8 -33.3 -2.8 -56.8 -37.2 -9.8
77 66787
122 70442
-36.9 -5.2
975 595455
1125 607415
-13 3 -2.0
(B) 6 JV International Airports 12 13 14 15 16 17
Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total
(C) 9 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29
Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total
(D) 20 Domestic Airports 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
Bhubaneswar Indore Jammu Agartala Raipur Imphal Vadodara Ranchi Bhopal Aurangabad Leh Udaipur Rajkot Tirupati Dibrugarh Jodhpur Silchar Total
(E) Other Airports Grand Total (A+B+C+D+E) * Estimated 36 I CARGOTALK I APRIL 2013
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Cargo Performance Airports in India
TRAFFIC STATISTICS
I N T E R N AT I O N A L F R E I G H T Freight (in Tonnes) For the Month S. No. Airport
Decemmber 2012 December 2011
For the period April to December % Change
2012-13
2011-12
% Change
(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11
Chennai Kolkata* Ahmedabad Goa Trivandrum Guwahati Calicut Jaipur Srinagar Amritsar Portblair Total
18904 3240 1105 334 1892 5 1689 10 0 151 0 27330
23131 3411 936 343 4341 0 1959 6 0 774 0 34901
-18.3 -5.0 18.1 -2.6 -56.4 -13.8 66.7 -80.5 -21.7
183337 32046 9444 1643 31734 12 20336 131 0 1166 0 279849
211412 34216 9046 1417 33854 0 18235 161 0 5170 0 313511
-13.3 -6.3 4.4 15.9 -6.3 11.5 -18.6 -77.4 -10.7
30516 35754 12165 4323 2757 30 85545
29101 38182 12236 3782 2468 53 85822
4.9 -6.4 -0.6 14.3 11.7 -43.4 -0.3
266625 343168 106905 34332 28296 294 779620
279200 355888 105693 33156 27002 288 801227
-4.5 -3.6 1.1 3.5 4.8 2.1 -2.7
0 59 51 0 0 237 0 0 1 0 0 0 348
0 44 32 0 0 92 0 0 0 0 0 0 168
34.1 59.4 157.6 107.1
0 946 417 0 0 1891 0 0 7 0 0 0 3261
0 575 347 0 0 1633 0 0 1 0 0 0 2556
64.5 20.2 15.8 600.0 27.6
0 0 113223
0 0 120891
-6.3
202 0 1062932
0 0 1117294
-4.9
(B) 6 JV International Airports 12 13 14 15 16 17
Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total
(C) 12 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29
Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total
(D) (E)
17 Domestic Airports Other Airports Grand Total (A+B+C+D+E)
* Estimated
38 I CARGOTALK I APRIL 2013
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On the Move New Appointments
Divya Mohan becomes PR Manager, SIA and Silk Air D
ivya Mohan has been appointed as the Public Relations Manager for Singapore International Airlines and Silk Air. In her new role, Mohan will be handling all PR aspects in India for Singapore International Airlines and Silk Air.
Prior to this, she was the part of the pre-opening team of the showcase property of Four Seasons Hotels & Resorts in India. Mohan was associated with the Group for over five years. Besides this, she was also involved in the launch of India’s highest roof-top bar, AER. Divya Mohan holds a Bachelor’s degree in Mass Media with a specialisation in Advertising from SIES College of Arts, Science and Commerce. She has also done her MSC in Marketing Management from Aston University, UK.
Geodis Wilson appoints Pedersen as Executive VP G
eodis Wilson, one of the leading global logistics providers has appointed Kim Pedersen, as its Executivee Vice President. He will be heading the global freight forwarding division of Geodis. He also becomes a member of the Group’s executive management. Pedersen joined Geodis Wilson in 1994 (former Wilson Logistics) and became Managing Director in Denmark and later on Regional Vice President of the entire Scandinavian organisation. In 2009, he was appointed as the Deputy CMO and subsequently joined the Board of Management as Global Head of Sales & Marketing of Geodis Wilson. “The dynamics of a volatile global economy forces our clients to a high level of adaptability when it comes to their supply chains. Our constant drive towards innovation in freight forwarding is the key differentiator to master their challenge. It drives our clients’ and subsequently our success,” said Pedersen commenting on his focus area.
Products & Services
Gandhi Automations
High-speed roll-up doors G andhi Automations’ high-speed roll-up doors are equipped with a modular counterweight balancing system. The doors comes with a sturdy and compact, galvanised steel (T1 model) or satin-finish AISI 304 stainless steel (T1Y Model model) self-bearing metal structure, which integrates driving unit, fast wiring and safety photocells. These doors are ideal for fast access, goods and people transit purposes ensuring a high level of operation and safety. In fact, its modular counterweight balancing system comprises strong driving belts that allow the motor to work with minimum effort, thus extending the operational lifespan of the automation. Moreover, its three-phase motor for heavy duty is composed by gear motor with a brake, a limit switch and lock release, all integrated in an exclusive module. In addition, according to the company sources, its self-bearing transom, positioned 40 I CARGOTALK I APRIL 2013
on the vertical uprights, enables easy and quick assembly thus resulting in a troublefree installation. The transom incorporates and protects all transmission gears. Its polarised fast wiring ensures correct connections and contributes to making installation quick and simple. Its compact size, both in terms of height and width, enables trouble-free installation even when there are space problems.
Sector comes with a wide range of safety devices, including instant reverse safety edge with rubber border and aluminum extrusion anodised with ACS Anti-crash system in CPA (electro-pneumatic with self-controlled photocell) versions. It protects the curtain from accidental crash damage. It also features emergency reopening mechanism, available on both sides of the door, which enables semiautomatic reopening of the curtain. These doors have IP 55 external electronic control panel, with openclose push-button station, emergency stop and self-test function. Sector’s curtains are available in a range of colours and transparent sections, which increase visibility and result in higher safety. Modular sections make provision for various combinations to meet different operational requirements and enable easy and quick replacement in case of damage. WWW.CARGOTALK.IN
Corporate Social Responsibilities Logistics Service Providers
Earthtalent
SDV reveals commitment towards women empowerment A CSR initiative, Earthtalent is the international social innovation laboratory created by BOLLORE in 2008, working on new technology as an accelerator for local development. NEHA OBEROI
OTHER PROJECTS UNDERTAKEN BY SDV INDIA PROJECT 1: Addressing the menace of female foeticide through sensitisation and implementation of PC & PNDT Act effectively in Bargarh district,Odisha. This sensitisation programme started five months ago, with the help of Earthtalent-SDV grant: posters and banners have been put up on clinics and across the city.
42 I CARGOTALK I APRIL 2013
PROJECT 2 : Promotion of Girl Child Education of Primitive Tribal groups in Rayagada Block, Odisha. The school started a few months ago with the support of EarthtalentSDV funds. The programme has reached areas where even the government does have an access. SWABHIMAN INITIATIVE, BY BLESS (BLOOMING LIFE
EDUCATIONAL AND SOCIAL SERVICE) : Nangloi Village (Delhi, India)- This is the story of a confident couple, Abhay Kumar and his wife, who started a small school for deprived children in their locality near Delhi. Moving ahead, they also decided to build a cooking training centre for helping underpriviledged rural women to empower themsleves. This
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T
he role of any commercial business is to contribute to the improvement of the quantity & the quality of life. SDV seeks to contribute to the society through their CSR initiative, Earthtalent. Earthtalent is the international social innovation laboratory created by BOLLORE in 2008, working on new technology as an accelerator for local development. Its social network “Earthtalent.net” is designed to promote international solidarity based on employees’ mobilisation. Its conviction and axis is the support for the UN Millenium goals for development with a particular focus on Women empowerment. Women represent a half of humanity which has not gained its legitimate place yet, and every Bolloré’s employees worldwide, men and women, is concerned. Earthtalent’s ambition is to place emphasis on Gender Equality and Women Empowerment (UN Millennium Goal n°3) as the key to economic and social progress. Aware of the fact that women are key factors for the development, the Bolloré Group wants to play its role as a global economic player. Through Earthtalent, the Group expresses itself by immensely contibuting for societal innovation in the countries it is active in and fully contribute to womens development and their families and communities. Now Earthtalent supports 16 local solidarity projects for women in 5 countries (10 projects in Africa, Mali, Burkina Faso and Cameroon and 6 in Asia, India and the
is a Swabhiman initative. The project started four months back with the help of Earthtalent-SDV grant. The women are trained to produce homemade and organic jams, juices and pickles. The NGO encourages them to sell their product in a local market on weekly basis, so that they could empower themselves and generate livelihood for a better future. JAGRITI - A PIONEERING SOCIETY : Mayapuri (Delhi, India)- This NGO is run by a WWW.CARGOTALK.IN
Dorothée Van der Cruyssen Founder, Earthtalent & Bolloré Group Manager
Thomas Duplan CEO SDV South Asia
Philippines). Each year, a call for projects is broadcasted on Earthtalent’s website www.earthtalent.net and awards projects promoting solidarity specifically in favour of women empowerment in countries of the South. The commendable part is the method adopted for gauging the effectiveness of the project. For the projects to be eligible, they had to: 1) Be submitted by a current or retired employee of SDV/the Bolloré Group in India, directly involved in the project (as a volunteer, leader or founder) 2) Be implemented by an organisation of legal existence: association or NGO, officially registered with local government, or is under process of getting registered. 3) The mission of the project should be in accordance of the theme chosen by Earthtalent: Women empowerment as a way to promote local development (Goal
couple who opened a shelter for 17 deprived and abandoned girls offering education and other support. This project is the extension of a vocational sewing training centre for women created 3 years ago. Here, under priviledged women learn to make handicrafts, detergent and kids apparels. The Earthtalent-SDV grant has supported the NGO. The project was initiated in the slum 3 months ago, with the support of the Earthtalent-SDV Grant.
Sasmita Mohanty Regional HR & QHSE Head, SDV South Asia
Monalisa Choudhury Ambassador, Earthtalent, India
3 of the UN Millennium Goals) 4) The project must have a clearly defined social or cultural objective, connected to the year’s theme and associated to local development. Then, as selection criteria between the eligible projects, their effectiveness is assessed. Project management (realistic objectives established after identifying constraints), Budget management (balanced and with diversified financing sources) and Human Resources (how many volunteers/ employees to help) are examined precisely. The project must include some kind of economical empowerment and/or revenue generating activity for its beneficiaries and the project should be able to last beyond the three years of Earthtalent’s support. Earthtalent is efficient where SDV is established as the subsidiary, which operates in 93 countries in the world. This initiative was created by Dorothée Van der Cruyssen, Founder, Earthtalent & Bolloré Group Manager in France. She was in Asia to meet the winners and visited the supported projects. Also supporting the project are Thomas Duplan, CEO, SDV South Asia, Sasmita Mohanty, Regional HR &QHSE Head, SDV South Asia and Monalisa Choudhury, Ambassador, Earthtalent, India. Van der Cruyssen states, “The future of Eathtalent is bright as it will continue to spread within the Bolloré Group. Our first goal is to help winner projects gain in sustainability and effectiveness, thanks to our employees and company support. The idea is to develop projects holding sense and solutions for building the future with a real impact on local development. In that prospect, we will also search for links with other organisations who will be able to help us in pursuing these goals.” APRIL 2013 I CARGOTALK I 43
Family Album Club Function
ACCD Annual Ball
A gracious evening for Who’s Who of the industry A recently held Annual Ball 2013 of the Air Cargo Club of Delhi (ACCD) was a spectacular event attended by a huge number of industry majors along with their spouses. The event was full of entertainment and surprise gifts thanks to lucky draws sponsored by several companies.
44 I CARGOTALK I APRIL 2013
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Family Album Club Function
46 I CARGOTALK I APRIL 2013
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APRIL 2013 I CARGOTALK I 47
Family Album Trade Associations
NISAA Cup 2012-13
30$ +DPEXUJ 6XG ZLQ WKH 多QDOV PMA Hamburg Sud lifted the NISAA Cup 2012-13 by defeating Maersk in the last ball of the game by two runs to script a glorious chapter in their cricketing history. Capt. AK Kaura, President NISAA along with other NISAA EC members graced the occasion to encourage the finalists. Renowned coach Gurcharan Singh was the Chief Guest of the event.
48 I CA C CARGOTALK ARGO RGO RG GOTA TAL T ALLK I A A APRIL AP APR PR P RILL 2201 RIL 20 2013 00113 48
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APRIL 2013 I CARGOTALK I 49
Shipping and Ports Infrastructure Update
Adani Hazira Port
Completely paperless operations in place The lines started calling at Hazira Port in December 2012. This is the only terminal in India to have completely paperless operations, informed Capt. Ramnath C. Vaidyanathan, Container Business Development, Adani Hazira Port.
I
n the meanwhile, four lines have started operating viz Maersk, CMA CGM, PIL and coastal service of Shreyas have started operations from Hazira Port. So far, the port has operated 500000 TEUs.
cargo being exported from Hazira port is polypropelene products, agricultural commodities and chemicals.
Commenting on the advantages of the port, Vaidyanathan maintained that Hazira Port is ideal and attractive location serving as The facilities that the port an alternate port for Nhava According to Vaidyanathan, the port is offering to its customers Sheva (JNPT). The port is can berth vessels up to 305 mtrs LOA with include customs house, located 120 nautical miles a maximum draft of 13 mtrs at present. paperless operations and webnorth of Nhava Sheva. It is 38 The turnaround time of a vessel is less than based container enquiry. The kms from the industrial city of eight hrs (as the volumes are low now). port is planning to increase the Surat in Gujarat and 280 kms Capt. Ramnath C. The destinations connected by the port are capacity to three million TEUs from Mumbai. The port gate Vaidyanathan, Container is connected with NH6. An Middle East, East and West Africa and in the next 3-5 years. Business Development, Eastern Mediterranean. Major containerised alternate NH6 extension has Adani Hazira Port also been planned by NHAI up to the port. Centrally located, this port has good connections to hinterland. In addition, on dock CFS facilities are also ACTOS is the new web-based container terminal operating software available, including all other necessary developed by Adani & CMC-TCS facilities viz marine, bunkering, and ICEGATE 1.5 compliant hence can interchange EDI messages breakbulk up to 135 tonne without floating directly with Customs. crane. E-systems, reputed CHAs inside the port, 24-hr helpdesk, dedicated window Ability to receive EDIFACT messages from Lines, enabling paperless times and Green Channel are some of the transactions and faster processing of requests initiatives focussed on customers’ amenities.
Innovative Terminal Operating System
Provides real time information of containers and online request for terminal transactions First terminal in India to control operational movements using RFID technology First terminal in South Asia to implement OCR technology for container number input and verification
50 I CARGOTALK I APRIL 2013
Currently, Gujarat has three private container terminals, of which two are located at Mundra in Kutch - one is operated by Mundra International Container Terminal and another by Adani Group’s Adani Port and one is located at Pipavav near Bhavnagar, operated by APM terminals. WWW.CARGOTALK.IN
Shipping and Ports Connectivity
Eastern DFC TATA Projects begins work TATA Projects, one of India’s fastest growing infrastructure companies recently announced that it has commenced work on the eastern dedicated freight corridor project in partnership with Aldesa of Spain. The Aldesa Group is one of the ten leading infrastructure groups in Spain and Mexico. The Group is actively involved in the industrial, renewable energies and concessions sectors. with the standard in America, Russia and China. Dedicated freight network is a key infrastructure project for Indian Railways, as it will segregate the passenger network from freight network. The corridor will also increase the speed of freight trains upto 100 kms per hour. Tata Projects will leverage its execution expertise and Aldesa will provide its technical expertise on track laying for high speed trains to create an excellent freight corridor that will reduce goods transit time and help grow the economy.
Vinayak Deshpande Managing Director – TATA Projects
T
his is the first major contract awarded for the Eastern DFC (Dedicated Freight Corridor) through an international competitive bidding process and involves construction of a 337 kms double track line, and 14 kms of single line - between Bhaupur and Khurja in Uttar Pradesh. The World Bank has sanctioned $975 million for this project. This will be a Design-Build lumpsum contract and will be executed within four years. DFC is an ambitious programme of the Ministry of Railways, Government of India, involving construction of two corridors, which are the eastern corridor from Ludhiana to Dankuni covering a length of 1,839 kms and the western corridor from Dadri to Jawaharlal Nehru Port, Mumbai covering 1,499 kms for promoting a seamless movement of rail freight traffic. This corridor has been designed for 32.5-ton axle load as compared to the current carriage tracks of 22.5 ton- axle load, which is at par
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On this occasion, Vinayak Deshpande, Managing Director – TATA Projects said, “We are delighted to commence work on this prestigious project. TATA Projects with its technological capabilities and execution excellence is best suited to deliver this project at par with global standards. Award of this contract is testimony to our capability in this area. This project is an important milestone towards modernisation of India’s railways freight transportation and we at TATA Projects look forward to pioneer new initiatives that contribute to the development of India and accelerated growth.” TATA Projects has a dedicated business unit for Railways and significant expertise in this area. Some of the important projects the company has executed include: 240 track km Over Head Electrification (OHE) of Chhapra to Gorakhpur section; 355 track km OHE, Signalling &Telecommunication of Gooty to Yehelanka section for Rail Vikas Nigam Ltd. (RVNL); 350 Track km OHE of Kondapuram – Guntakal section for Rail Vikas Nigam Ltd. (RVNL) and EPC of Railway Infrastructure for 1050 MW Thermal Power Plant for GMR. APRIL 2013 I CARGOTALK I 51
Shipping and Ports Cargo Performance
TRAFFIC HANDLED AT MAJOR PORTS
(DURING APRIL TO FEBRUARY’2013 VIS-A-VIS APRIL TO FEBRUARY’2012) (In ‘000 Tonnes)
Fertilizer 3RUW
7UDI¿F SHULRG
Coal
Container
3 2 /
,URQ Ore
)LQ
5DZ
7KHU &RRNLQJ mal
7RQ nage
613 622
140 434
39 14
29 -
-
29 8
6344 6130
5475 7202
1554 3824
109 164
260 256
1804 2173
4188 4786
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
6088 7824
1694 4258
148 178
289 256
1804 2173
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
15383 13719
1584 6517
142 279
3789 4159
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
13900 17076
11130 15169
1959 3588
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
1015 493
-
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
12069 12088
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012 TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
7(8V
2WKHU Cargo
7RWDO
9DU against 2010-11
424 379
3451 3934
10645 11142
-4.46
2425 2244
126 126
9307 7974
25122 28623
-12.23
4217 4794
8769 8374
550 505
12758 11908
35767 39765
-10.05
19120 14839
4522 5245
157 93
12 7
6718 4993
51415 49844
3.15
557 751
2720 2943
6258 6347
4176 3740
227 209
13244 12570
53944 62184
-13.25
-
-
12842 11615
643 297
-
-
1655 1175
16155 13580
18.96
52 51
190 353
224 263
610
351
27279 27583
1414 1429
8844 10001
48658 51300
-5.15
741 788
33
486 1108
564 792
6095 5339
-
8457 8300
434 436
9292 8788
25635 25148
1.94
12677 12668
-
22 115
331 292
28 16
-
4230 4339
300 311
872 735
18160 18165
-0.03
21841 20416
2561 2569
477 763
17 21
2249 -
4074 3410
612 591
42 41
1784 1995
33615 29765
12.93
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
761 830
7421 26652
78 93
-
768 657
5885 5419
202 215
20 20
1599 1373
16714 35239
-52.57
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
30962 30089
-
156 230
355 173
3909 3822
-
712 525
49 54
16907 15384
53001 50223
5.53
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
3876 4685
-
-
-
-
-
52824 53204
3881 3950
2124 2336
58824 60225
-2.33
TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012
48919 42456
1000 978
3477 5157
929 703
3528 3748
374 110
1754 2546
106 153
26101 19692
86082 75390
14.18
168232 163132
25442 56227
7135 11864
7055 7410
53063 45762
25973 25973
109172 109510
7035 7115
101898 90950
497970 510828
-2.52
3.13
-54.75
-39.86
-4.79
15.95
0.00
-0.31
-1.13
12.04
-2.52
KOLKATA Kolkata Dock System TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012 Haldia Dock Complex TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012 TOTAL: KOLKATA
PARADIP
VISAKHAPATNAM
ENNORE
CHENNAI
V.O.CHIDAMBARANAR
COCHIN
NEW MANGALORE TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012 MORMUGAO
MUMBAI
J.N.P.T.
KANDLA
ALL PORTS TRF APRIL-FEB.’2013 TRF APRIL-FEB.’2012 % Variation from previous year
Source: Indian Ports Association
52 I CARGOTALK I APRIL 2013
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Guest Column Logistics Issues
Streamlining goods flow
with global standards Ravi Mathur CEO, GS1 India
A wide range of value-added transport and warehouse management applications and services are now associated with the movement of goods from the material suppliers to the manufacturers to the end customers. This in turn, makes logistics a strategic function capable of providing a unique competitive advantage to an organisation.
I
n fact, the strength of the logistics sector is likely to be one of the key determinants of the pace of future growth of the economy. Despite holding promises, the logistics sector in India remains mired in several complexities, including significant inefficiencies in transportation, poor storage infrastructure and a complex tax structure. Many of these require interventions by policy-making bodies for their satisfactory resolutions. However, there are key challenges that can be addressed through supply chain integration.
Addressing key challenges with technology The major drivers of complexities in T&L The increased demand for automation across multiple logistics channels Managing warehouse processes and inventory levels The growing security risks associated with theft, smuggling and terrorism The global concern for sustainability opportunities, such as filling empty miles for lowering CO2 emissions and transport costs and avoidance of traffic congestion However, it seems that the industry needs to pay serious attention to supply chain integration to improve automation in information sharing, vehicle tracking and warehouse management systems. End-to-end integration and alignment of supply chain processes are possible 54 I CARGOTALK I APRIL 2013
and share information vary considerably, using suitable technologies. Developments but these core elements are present in all in RFID, bar code and other Automatic successful supply chain integration. There Identification and Data Capture ( AIDC) can be no supply chain integration until there technologies and communications is a standard method to identify, capture and technologies like cloud computing, mobile share information. computing and wireless communications involved in ‘identificationcapture-share’ of data will help. Adoption of these Supply Chain Technologies will enable Statement about ownership andother particulars about newspaper T&L supply chain partners to &DUJR7DON WR EH SXEOLVKHG LQ WKH ¿UVW LVVXH HYHU\ \HDU DIWHU WKH streamline the flow of goods last day of February by linking the information flow 1. Place of publication : 72 Todarmal Road, across the supply chains.
Form IV
However, seamless technology implementation across supply chain is perhaps not an easy task, especially considering language barriers, traceability regulations, border safety concerns, and the ongoing struggle against illegal imports and counterfeiting. Therefore, technology-enabled applications can thrive only if they are comprehensive, consistent, effective and interoperable by multiple supply chain partners and allow the supply chain partners to adapt to the ever-changing technological environments.
Adopting global standards in Technology The technologies and processes used to identify, capture
2. Periodicity of its publication 3. Printer’s Name Nationality Address
: : : :
4. Publisher’s Name Nationality Address
: : :
5. Editor’s Name Nationality Address
: : :
6. Name and address of individuals who own the newspaper and partners or shareholders holding more than one percent of the total capital
:
New Delhi - 110001 Monthly SanJeet Indian 72, Todarmal Road, New Delhi - 110001 SanJeet Indian 72, Todarmal Road, New Delhi - 110001 SanJeet Indian 72, Todarmal Road, New Delhi - 110001 SanJeet, 72, Todarmal Road New Delhi - 110 001
I, SanJeet, hereby declare that the particulars given above are true to the best of my knowledge and belief. Date : 01/03/2013
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Supply chain integration by adopting global standards, can benefit T&L supply chain stakeholders – whether regulators, retailers, manufacturers, transport carriers or logistics service providers - from two major capabilities: 1. Visibility of goods as they move from manufacturing sites to distribution centres - and eventually onto retailers’ shelves. All trading partners can effectively track and trace their products, achieving visibility beyond the “four walls” of the enterprise; rather, across multiple channels, multiple carriers and multiple service providers. 2. Business process interoperability which drives information exchange within the supply chain. All trading partners can effectively collaborate and enhance operational efficiency by achieving interoperability.
Leveraging standards for visibility A global standard based framework to ‘identify-capture-share’ provides organisations enabling them to make moreinformed business decisions. In fact, global standards for unique and universal identification provide the link between a product and the information pertaining to it. For e.g., a company can assign this unique identification code called a GS1 identification key, in accordance with the GS1standards which are designed and developed in collaboration with the industry itself. To ensure interoperability, industries have agreed on the use of GS1 standards, which define how these unique GS1 identification keys are used for different supply chain elements. Using suitable GS1 identification keys, organisations are able to identify trade items, locations, assets and logistic units. These keys are encoded in GS1 barcodes or EPC/RFID tags for the ease of Automatic Identification and Data Capture (AIDC). While scanning of a GS1 bar code or reading an EPC/RFID, the unique identification number automatically provides access to the information related to the item stored in a database. This data can then be shared amongst supply chain partners by using various WWW.CARGOTALK.IN
standards and technologies that the framework supports. When this automated identification system is combined with master data synchronisation and transactional messaging standards, including Electronic Data Interchange (EDI) then a full chain visibility is ensured.
Bringing interoperability with standards T&L supply chain partners need solutions based on common business processes, communication and identification to be able to overcome barriers of interoperability and scalability. These solutions will lead to more transparency and take out unnecessary cost of the supply chain. With the objective to lead the development, the GS1 Logistics Forum developed a framework called the Logistics Interoperability Model (LIM).
Road transport Management: GS1 standards were used to maintain the Empty Miles service – an online service developed by the Voluntary Interindustry Commerce Solutions Association (VICS), GS1 Canada and GS1 US. It enables transport carriers, Logistics Service Providers and Logistics Service Companies to share, plan and book truck/trailer capacity and space. Rail transport management: In rail transport, the Sweden Transport Administration is leading the way of testing various RFID solutions for many years. It ended up with EPC Gen 2, the RFID passive tags based on GS1 standards –that can be read even when trains are running at high speed.
The LIM describes the high-level business processes and covers the following business functions: Procurement, Planning, Warehousing and Transport Financial settlement.
Asset Management in rail: The Finnish state-owned railroad operator VR Group and its VR Trans point subsidiary deployed GS1 standards based EPC Gen 2 RFID tags and handheld devices to track 10,000 rail-freight wagons, locomotives and passenger cars at 50 locations throughout Finland.
Thus, it provides an open, independent and comprehensive framework that allows T&L supply chain partners to collaborate without the need for re-inventing the wheel for each one-to-one connection.
Shipments Tracking: GEFCO, one of the leading transport and logistics companies in Europe, is tracking goods along the entire supply chain, working closely with suppliers, manufacturers and retailers.
One of the most important efficiency measures in the trade and logistics relations is the possession of a common language between the different actors in the supply chain. GS1 introduced the Standard International Logistic Label (STILL) to drive common approach to the identification and bar coding used on labels on logistic units as a worldwide reference point.
Warehouse Management: Unilever has improved its warehouse management operations through the standardisation of processes, the establishment of electronic messaging and the consolidation of connectivity using a business process model. A set of 16 standard interfaces based on GS1 eCom standards were established to cover all the business requirements for warehousing.
It helps businesses to avoid the successive relabelling of logistic units and provides the cost effective benefits to use only one logistic label.
Looking forward
Standards at work in multimodal transport
The growth in the Indian economy is likely to be driven by the increased activity in the manufacturing and retail sectors. However, the logistics sector will have to step up to provide value-enabling services to these sectors.
Cross Border Procedure Management: GS1 is working with customs organisations worldwide to ensure supply chain efficiency and security. The World Customs Organization (WCO) and GS1 signed an agreement to optimise the fight against counterfeiting and piracy.
The T&L sector of the country will not be able to cope up and support this demand unless the major stakeholders, including consigners, consignees and 3PLs operate collaboratively to integrate supply chain operations by adopting global standards. APRIL 2013 I CARGOTALK I 55
International Event Current Issues
World Cargo Symposium
IATA emphasises on priorities to grow The International Air Transport Association (IATA) called on airlines and their partners in the air cargo supply chain to work together to make air cargo more competitive and address the challenges of safety, security and sustainability.
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peaking at the World Cargo Symposium in Doha, Qatar, Tony Tyler, Director General and CEO, IATA highlighted that the cargo is vital to the global economy, transporting more than $5 trillion worth of goods annually, or more than a third of world trade by value. For airlines, it accounts for about 12 per cent of industry revenues. But, like the rest of the airline industry, air cargo is a tough business. The last two years have been particularly difficult. Last year saw a two per cent decline in both air cargo demand and yields. “There are early signs that an upturn is on the way. To seize the opportunity we must strengthen the industry’s competitiveness,” said Tyler.
56 I CARGOTALK I APRIL 2013
To fight the challenges before the air cargo industry Tyler stressed on the four key factors viz modernisation of processes, secured supply chain, strictly following the dangerous goods regulations and environmental sustainability.
of $1-$2 billion over five years. “Air cargo is a global network. We need a risk-based approach with states mutually recognizing their security regimes,” said Tyler.
He also maintained that safety is the industry’s top priority. “Recent concerns over According to him, lithium batteries transported as Tony Tyler transitioning to a paperless air cargo have reinforced the Director General and CEO need for greater education and operating environment is IATA critical to improving air cargo’s communication over the rules competitiveness. The Global Air Cargo for shipping these items. We don’t need Advisory Group (GACAG) endorsed an more regulation. But we need to ensure that e-Freight roadmap that reflects agreement the regulations we have are followed. With on roles and responsibilities for pushing over 50 million tonne of cargo transported this critical project by air annually, it is a big challenge. And forward. “IATA this is being made even bigger as the number is committed to of shippers proliferates—particularly with implementing the the growth of e-commerce,” observed Tyler. e-Air Waybill (eAWB)—targeting “In addition, the ability to manage our 20 per cent carbon emissions is our license to grow. implementation by That is why we are committed—as an the end of 2013 and industry—to improving fuel efficiency 100 per cent by the by 1.5 per cent annually to 2020, capping end of 2015,” CO2 emissions from 2020 with carbonsaid Tyler. neutral growth (CNG2020) and cutting net emissions in half by 2050 compared to IATA called 2005,” he stressed. on governments to implement mutuallyHe also underlined the importance of a recognised secure united voice for the greater interest of the supply chain regimes. air cargo industry. “I hope that GACAG The ‘Secure Freight’ will facilitate a joint action plan to focus on initiative which has persuading key governments of the need been championed by to put cargo at the heart of their economic IATA is being piloted strategies,” said Tyler. Tyler announced that in eight locations work with FIATA to modernise the Cargo worldwide. The Agency Programme, which will put the first was Malaysia airline-freight forwarder relationship on a where studies have stronger footing, was making satisfactory estimated that Secure progress. A series of proposals will be Freight also brings submitted to the Cargo Agency Conference an economic benefit later in the year. WWW.CARGOTALK.IN
In Conversation Skill Development
Filling the skill gap
in aviation, travel and cargo industry With an objective of fulfilling the huge demand for skilled manpower for aviation, travel & tourism, and air cargo industry, GMR Aviation Academy has decided to expand its horizon from in-house to the industry at large. In an interview with Cargotalk, PS Nair, CEO-Corporate, Airport Sector, GMR Airports, under whose charge the GMR Aviation Academy falls, elaborates on the importance of the Academy. „ RATAN KR PAUL
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pon entering into aviation infrastructure business at the Greenfield airport in Hyderabad and Brownfield JV Airport in Delhi, GMR Group realised tremendous crunch of skilled human resources for the entire aviation and travel & tourism industry in India. The company, therefore, decided to upskill their personnel by setting up an Aviation Academy. In 2009, the company launched GMR Aviation Academy at the premises of GMR Hyderabad International Airport. “We had an immediate objective of providing professional training and enhancing the knowledge and skillset, predominantly of GMR Airports’ personnel,� said Nair. The focus was to address the technical competency gaps, minimise dependence on external vendors in designing various training programmes and systematically ramp up to provide talented manpower for the aviation industry, especially for Asia-Pacific region. Within a very short span of time, the Academy has emerged as an acclaimed gateway for aviation learning, thanks to its accreditation by world-renowned aviation bodies like ACI, IATA, ICAO, DGCA and BCAS. GMR Aviation Academy has already started offering training to fresh students as well as industry professionals. Meanwhile, it is also planning to tie up with renowned universities that have excelled in aviation studies. “As a significant step, about 3,500 AI-SATS people from Passenger Service and Ramp Service disciplines are being trained. We have also recently signed an MoU with Celebi Ground Handling in Delhi to train about 500 of their employees in DGR� informed Nair. In view of the increasing demand from the industry, including airlines and agents, GMR 58 I CARGOTALK I APRIL 2013
Aviation Academy has decided to intensify its initiatives for the industry.
GMR Aviation Academy is an Authorised Training Center (ATC) for various IATA and ACI professional courses. With its successful launch and completion of training IRU WKH ¿UVW ,$7$ EDWFK the Academy is all set to conduct the second batch� PS Nair CEO-Corporate, Airport Sector GMR Airports
Nair asserted that GMR Aviation Academy is known for its professional standards and is an ideal training centre for students and professionals belonging to airports, airlines, cargo agents, travel agencies, tour operators and safety & security, airport service providers and corporate aviation. The academy offers opportunity to familiarise the trainees with the airport facilities and systems for hands-on practical experience. Plans to amalgamate the GMR managed Asia Pacific Flight Training Academy for Pilot Training with the GMR Aviation Academy is also on the anvil. It has already acquired three Diamond DA 40 aircraft for Pilot training. “We have a strong faculty for catering to training in all aspects of the aviation, travel & tourism and air cargo industry. Depending on the nature of training, we also depute our faculty members to the clients’ premises to conduct trainings,� Nair added. GMR Aviation Academy is an Authorised Training Center (ATC) for various IATA and ACI professional courses. With its successful launch and completion of training for the first IATA batch, the Academy is all set to conduct the second batch. The ongoing training programmes include IATA (3 months part-time) courses in travel & tourism, airport operations, cargo introductory and DGR courses. Apart from these trainings, the Academy offers two-day airport visit for IATA course participants to get hands-on experience of aviation functions at the airport candidates who have completed their 10+2/Intermediate and have English communication skills are eligible for the courses. Students who are pursuing graduation and working professionals are also eligible to enroll for the courses. WWW.CARGOTALK.IN