Cargotalk

contents February 2012 DEPARTMENTS National News IEP forays into domestic transport, acquires TNT Express’ road business in India

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Trade Associations 3rd DACAAI Annual Convention- 12 A bid to prepare White Paper for infrastructure

View Point Fire at IGIA Cargo - An alarm to 14 prevent future catastrophe

International News

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ECS Group: More emphasis 18 on Indian market

Middle East: P.O. Box 9348, Saif Zone, Sharjah, UAE Tel.: +971 6 5573508 Fax: +971 6 5573509 Email: uae@ddppl.com

Etihad Crystal Cargo starts 19 second weekly service from Abu Dhabi to Almaty

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International Airport Hong Kong Air Cargo Terminals 20 introduces COSAC for airlines, expects growth from India

Industry Events Air Cargo Forecast: Domestic and 23 international cargo to reach 1.7 and 2.7 million tonne by 2016-17

Cargo Performance Airlines wise exim cargo 34 performance from IGI Airport, New Delhi for December 2011 Airlines wise exim cargo 35 performance from CSI Airport, Mumbai for December 2011

Family Albums Silver Jubilee celeberation 40

By Bangalore Custom House Agents Association

4 cargotalk February 2012

www.cargotalk.in

contents February 2012

Opinion

Air Cargo Club of Delhi presents a 42 gracious evening on Founders Day

Fill up the skill gap

Shipping & Ports

The aviation and logistics industry in India is facing tremendous challenges owing to paucity of proper infrastructure and skilled manpower. It is a paradox that the country is in critical shape despite its huge potential of becoming a hub for the aviation and logistics sector in this region. Exorbitant transaction, logistics costs and excessive transit time are placing the industry players in a disadvantageous position while competing with their overseas counterparts.

Asia Pacific Maritime 2012 wooing 47 new participants from India DP World Nhava Sheva 49 handles the longest ship at Jawaharlal Nehru Port

Product Display Honeywell introduces - Vuquest 58 3310g to scan any kind of bar code

It is evident from various studies and researches that the logistics sector in particular is very disorganised.

Primary responsibility for this lies with those in charge of logistics operation; from top to bottom. The management, for instance, has to be responsive to grab opportunities for logistics companies in the country by moving from traditional working to out-of-box thinking. It should be kept in the mind hat ‘Value added service delivery’ demands proper knowledge and skill. Pitiably, at present the industry is mainly guided and operated by inadequate knowledge. Improper application of logistics jargons cannot be the device to woo seekers of logistics services.

JMD Cranes eyeing 58 logistics industry

COLUMNS Guest Column Logistics - Career with a promise 31

Face of the Month M Rafeeque Ahmed, President, FIEO: 44 Be prepared for tough times, reduce logistics and transaction costs

Significantly, a number of initiatives have been taken in the recent times by both government as well as industry stakeholders across the country to fill up the skill gap.

On the other hand, a few companies have also put serious efforts on human resource development through regular and scientific in-house training, with the help of external agencies. The number should increase in view of the emerging scenario; be trained or perish.

The small and mid sized freight forwarding, customs house agents, transport, warehousing companies need to step forward and invest in human resource and skill development in order to make a place for themselves in the logistics domain.

Study & Survey FICCI survey on trends in 2012 - 50 Shift is towards domestic market

Exclusive Interview Yusen Logistics gets new 52 president in India

Trade Opportunities Trade between India and Japan - 53 Government of India sets US$ 25 billion target by 2014

Rupali Narasimhan Editor

Cover Story

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Skill Development - The key factor behind smooth logistics operation Supply of skilled manpower for aviation and logistics industry remains a critical area keeping in mind the lack of adequate training institutions in India. However, a few academic and training institutions have been doing commendable activities to meet the growing demand. Cargotalk presents some highlights of those pioneering initiatives 6 cargotalk February 2012

www.cargotalk.in

National News Merger & Acquisition

IEP forays into domestic TNT Express’ transport acquires road business in India

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EP acquired TNT Express’ road business through an undisclosed purchase value. IEP is a leading, independent, control oriented private equity firm based in Mauritius. The company’s strategy is to make investment in logistics companies togain full control on the same. The acquisition of TNT’s road business in India is a significant move in view of the leading position of the company (TNT) and a fast growing domestic logistics business in India. Moreover, Mitra’s association with this venture is expected to provide an extra edge because of his expertise in this field. It may be recalled that Mitra has joined IEP as operating partner and CEO-logistics in July 2011, after heading TNT India as managing director, for a long time.

Prior to acquiring TNT’s road business, IEP acquired stakes in Fourcee Infrastructure - a niche liquid logistics rail transportation company; Swastik Roadlines (Coldex) - India’s leading cold chain surface transportation company and Ocean Sparkle - one of India’s largest private harbor and seaport management service providers. However, in these companies IEP does not have majority share. “IEP is evaluating its earlier policy and hence has acquired TNT’s road business by acquiring majority share with full control on it,” said Mitra. The sale, which took effect on December 30, 8 cargotalk February 2012

In a bid to have a strong penetration in the domestic express road transport sector, the US$ 450 million company, India Equity Partners (IEP), has recently acquired TNT Express’ domestic business.The company also has a plan to acquire some more companies that are established in domestic logistics sector. Speaking to Cargotalk, Abhik Mitra, CEO-logistics, IEP provides detailed strategy of IEP. Ratan Kr Paul

Sid Khanna

Abhik Mitra

2011, was made on a proprietary basis leveraging unique access through Mitra and IEP’s global relationships.

According to the industry experts, IEP’s entrance into domestic road express service sector is a crucial move in view of the emergence of the domestic distribution business. Mitra made it clear that the company is open to acquiring more companies related to distribution and warehousing business in the domestic market. He also shared that in the later phase IEP would explore investment opportunities in exim trade related services.

Commenting on the potential of the new venture Mitra said, “TNT’s domestic road express business is one of the top

KK Iyer

four competitors in the sector with an outstanding reputation for reliability, customer service and its service offerings.

The business has a strong network, www.cargotalk.in

National News Merger & Acquisition

resulting in a well-known and diversified list of customers, which includes global players as well as large and medium-sized domestic companies.”

Mitra underlined the fact that the road express business is the fastest growing segment in the Indian logistics sector, which grew over 20 per cent last year and was estimated to have done ` 21 billion business in 2010. The industry is consolidated with only four competitors comprising 50 per cent of the market. TNT’s road business in India was witnessing about 30 per cent year on year growth. “We would enhance the growth of the company through a solid combination and skill of TNT India and IEP. We would add further value to it. We will also develop new services like FTL, 3Pl services and warehousing facilities in the days to come,” he added. Mitra, however, discarded any ideas of offering cold chain services from this venture.

“Cold chain services will be provided by our existing brand-Coldex.

10 cargotalk February 2012

“IEP is excited by this acquisition and it is consistent with our strategy of investing in logistics and infrastructure services. In the logistics sector, we see tremendous growth opportunities for mid-sized companies. However, those companies would require skilled management and capital to become market leaders,” added Sid Khanna, chairman and managing director, IEP Fund Advisors.

According to KK Iyer, managing director of IEP Fund Advisors, who previously led Accenture’s logistics practice in India, this investment is consistent with IEP’s differentiated investment strategy of control platform investments and portfolio value-addition. “IEP brings together outstanding management talent, the necessary financial capital, high quality governance and best-in-class management processes to build platforms that acquire companies to drive growth and become market leaders,” he asserted. He observed that IEP viewed TNT’s domestic road express business as a first step in building

its logistics platform and intended to pursue other exciting investment opportunities in the days to come.

IEP is uniquely positioned to build and develop companies in the logistics sector due to its team’s strong operational experience in the sector and strong consulting and transformation experience, along with sector insight and exposure through its three existing portfolio companies across different segments of the logistics sector. These are Fourcee Infrastructure - a niche liquid logistics rail transportation company, which grew over 100 per cent, Swastik Roadlines (Coldex) - India’s leading cold chain surface transportation company, which grew 40 per cent and Ocean Sparkle - one of India’s largest private harbor & seaport management services providers, which grew at 30 per cent over the previous fiscal year. Mitra is highly optimistic about the further growth of TNT’s road business which has been more than 35 per cent year on year.

www.cargotalk.in

National News Trade Associations

3 DACAAI Annual Convention rd

A bid to prepare White Paper for infrastructure

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omestic air cargo has been seeing a double digit growth year after year.

However, the infrastructure has not kept pace with the growth. “DACAAI convention is the only event where the entire domestic air cargo industry gathers. We want to create a debate among all the stakeholders i.e.

The 3rd Annual Convention of the Domestic Air Cargo Agents’ Association of India (DACAAI) will be held on March 3 at Novotel Hotel in Hyderabad Airport with ‘Infrastructure’ as the convention theme. Amit Bajaj, managing committee member, DACAAI, and spokesperson for the convention provides an update and significance of the convention. Ratan Kr Paul “This year we are focussing on the infrastructure for domestic air cargo business. Accordingly, there will the talks by eminent speakers regarding airport infrastructure, cargo terminal i nfrastruc t u r e , I T i n f r a s t r u c t u r e f o r both airlines and agents and the agents infrastructure,” informed Bajaj.

The convention will also have an open house session regarding the improvements in operations and infrastructure utilisation at present. The convention will be attended

“Since the formation of DACAAI w e have s ee n a ve ry heal thy change in the industry. The conventions have been a catalyst in achieving successful collaborations between the agents and common user terminal operators,” said Bajaj. DACAAI has a plan to create a White Paper for ideal infrastructure for fault-free operations.

“We want to achieve it through healthy and constructive discussions and debates.

This would result in achieving higher

DACAAI convention is the only event where the whole domestic air cargo industry gathers by atleast 250 delegates representing all stakeholders.

Amit Bajaj

airlines, airport operators, cargo terminal operators, agent, logistic companies and express companies so that a paper defining an ideal infrastructure requirement can be prepared.” The inauguration of the convention will be held in the morning, which will be followed by Business Session-I, Lunch, Business Session-II, cocktails and dinner.

12 cargotalk February 2012

Commenting on the importance of the convention city, Hyderabad, Bajaj maintained, “The first convention was in the West (Mumbai), the second convention was in the North (Delhi) and the 3rd one is happening in the South (Hyderabad).

Hyderabad has seen considerable amount of growth in the volumes of domestic cargo, especially in pharmaceutical goods. It was also the 1st city to have a Common User Terminal at the airport.

efficiency of business. There is a long way to go. We have to create the infrastructure for managing growth for the next decade,” added Bajaj.

According to him, with better infrastructure domestic cargo agents/ shippers would be able to improve the cutoffs for booking cargo, upliftment commitments to shippers, eliminate misrouting and pilferages in the system and implement other advantages which would further help in improving the growth of domestic air cargo. www.cargotalk.in

View Point Trade Associations

Fire at IGIA Cargo

An alarm to prevent future catastrophe

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he recent fire incident at the IGI Airport Cargo Terminal has raised an alarm for the airport, terminal operators and air cargo industry at large.

According to the custodians, they have taken adequate measures to arrest any adverse impact on the business owing to the incident, by doing make-shift arrangements for the affected airlines. Vipan Jain, chairman, BAR Cargo (NR), however, made some observations.

According to Jain, inconvenience is still continuing due to the absence of proper office space for many carriers. Warehouse space on import side is also blocked. “Carriers are still suffering due to police inquiries etc.

14 cargotalk February 2012

need to wait and watch,” he said. He also maintained that the incident was an eye opener. There should be regular checks and deserving attention given to fire alarm and safety measures. In addition, quick reaction ability in handling any exigencies needs to be strengthened.

Vipan Jain

and we have been assured that the terminal operator will take care of resetting the office area in shortest time possible. However, we

“A serious and well established procedure with regular monitoring by an active and well trained team is the need of the hour.” In his opinion, extinguishers and other fire fighting material should be available in corridors and near to the doors. “Above all we need to have security guards in the building on every floor, in different areas, with basic fire fighting equipment training skill to deal with fire at initial stage,” he recommended.

www.cargotalk.in

International News Trade Associations

Global Air Cargo Advisory Group

voices objection on implementing ETS by EU

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In view of the present adverse economic scenario, the Global Air Cargo Advisory Group (GACAG) has urged the European Union (EU) to withdraw the decision of implementing the EU Emissions Trading Scheme (ETS) for aviation. It recommends for following ICAO framework for developing appropriate market based measures. CT Bureau

ccording to GACAG, the implementation of ETS will spark a divisive and ultimately costly dispute with the international community and the global aviation industry, including the air cargo sector and its customers.

EU’s intention to apply its ETS has drawn a strong objection from many countries, including USA, India and China, who have challenged the EU ETS on legal and policy grounds. They have urged EU and its member states to suspend the application of EU ETS and to return to multilateral efforts to develop international C0 2 emission standards within ICAO and other appropriate international fora.

According to Chris Welsh, secretary general, Global Shippers’ Forum (GSF), which is one of the GACAG’s four founding members & chairman, GACAG Sustainability of the Air Cargo Industry Task Force, GACAG completely agrees with this position. “We believe EU should fully support the agreed ICAO framework for developing appropriate market based measures (MBMs), including the possibility of emissions trading schemes, voluntary and other efficiency based measures,” he said. Welsh also maintained that the absence of an international framework will be chaotic and will unnecessarily cost the air cargo industry and its customers 16 cargotalk February 2012

fact that world-wide demand for air cargo services (considered by economists to be a barometre of the state of the global economy) shows that the recovery is weak.

“This is an indication that consumers simply will not be able to pay higher prices. This will have a direct impact on manufacturers, growers and the entire freight forwarding and logistics industry.

EU needs to fully evaluate the wider economic consequences of its actions before pressing ahead with the EU ETS,” Welsh emphasised.

Chris Welsh

millions of Dollars at a time when the global economy is so fragile and when every effort is being made to stimulate global demand. “International aviation is not a luxury; it is a part of a complex international supply chain upon which global trade is dependent. Every day essential products such as pharmaceuticals, healthcare equipment and fresh produce are shipped by air. After implementing ETS, consumers are expected to pay more for these items plus many others at a time when they are already struggling with economic uncertainty and rising costs,” Welsh pointed out.

In his opinion, every effort is now needed to stimulate demand in a flagging global economy. He also underlined the

He observed that GACAG reinforced the views of its other members – the International Federation of Freight Forwarders Associations (FIATA), the International Air Transport Association (IATA) and The International Air Cargo Association (TIACA) - that the correct way would be for the International Civil Aviation Organisation (ICAO) to develop a global agreement on aviation carbon emissions.

This would be in keeping with the recommendations of the Kyoto Protocol which designated ICAO as the body with the authority to set international aviation’s greenhouse gas policy.

Meanwhile, GACAG members have highlighted key concerns about the ETS to the Climate Action Commissioner at EU, stating it was violating international law and treaties. www.cargotalk.in

International News Airlines

ECS Group More emphasis on Indian market

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peaking to Cargotalk, Thominet underlined the importance of Indian market as growing air cargo market. India’s freight industry is expected to grow at 10 per cent per annum by 2014 and the air freight sector is set to expand by 8.5 per cent per year for the next 5 years.

“We will provide a sales support for the

Adrien Thominet

carriers with whom we have a worldwide contract and will explore the possible GSA opportunities in this market,” he said.

Thominet, however, expressed concern on the overall weakening of global freight markets in the months ahead. He stressed on IATA’s study in this regard, which reported a softening of global air traffic demand due to continued weakness in the global economy. IATA, Air Transportation Market Analysis, added that air cargo markets have contracted by around four per cent from January 2010 levels.

18 cargotalk February 2012

World’s leading GSA for company ECS is seeing India as one of the major cargo market for the ensuing years.The company has decided to invest heavily in building a professional set-up in India, informed Adrien Thominet, senior vice president, sales and marketing, ECS Group. CT Bureau Globe Air becomes GSA for Vietnam Airlines Recently Vietnam Airlines has chosen Globe Air Cargo as the cargo general sales agent for its new route between London Gatwick, Hanoi and Ho Chi Minh City. Globe Air Cargo is a part of the ECS Group.

The Airline is operating four Boeing 777 flights a week from London to Vietnam, each offering 12 tonne of cargo capacity. Globe Air Cargo expects to generate some 2,400 tonne per year on the route, including shipments of pharmaceuticals, perishables and whiskey. ECS will market other major destinations in the Vietnam Airlines network to customers in UK, Australia and Japan.

“The start of the direct flights between Vietnam and UK will in Mark Pulling itself act as a catalyst for increased trade between the two countries and therefore more cargo on the route,” said Mark Pulling, managing director of Globe Air Cargo.

Significantly, Thominet foresees 15 per cent growth for ECS group.

Senegal Airlines appoints ECS Group as GSA

Senegal Airlines has appointed ECS Group as its worldwide air cargo general sales and service agent. According to the agreement, ECS will be responsible for marketing the cargo capacity of

some 180 Senegal Airlines’ flights per week across its international network in Africa that also includes Burkina Faso, Cameroon, Cape Verde, Gabon, Gambia, Guinea, Ivory Coast, Mali, Mauritania and Niger.

“In the first half of 2012, the airline plans to launch a new wide-body flight from Paris. This will not only provide a direct feed from Europe to markets across Africa, but also support the requirements of the Senegalese business community and industry,” said Thominet. www.cargotalk.in

International News Airlines

Etihad Crystal Cargo starts second weekly service from Abu Dhabi to Almaty

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tihad Crystal Cargo recently started a second weekly dedicated freighter operation from Abu Dhabi to Almaty in Kazakhstan. The additional freighter service is using an Airbus A330-200F freighter with a payload of 59 metric tonne on the route.

According to David Kerr, vice president, Etihad Crystal Cargo, the new launch was to balance the demand and supply sides.

“The success of our initial freighter service to Almaty which was launched in July 2011 has exceeded our expectations. Our twice weekly freighter operations to Almaty

will continue to reinforce E t i h a d Airways’ position in the Kazakh market, on top of our three weekly passenger services between Abu Dhabi and Almaty,” he said.

Currently, Etihad Crystal Cargo operates to a total of 82 destinations internationally, 10 of which are freighter only. The Crystal Cargo fleet consists of one Boeing 777

Freighter, two Airbus A330-200F, two Airbus A300-600F aircraft and two McDonnell Douglas MD11s.

cargotalk

February 2012

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International Airport Terminal News

Hong Kong Air Cargo introduces COSAC for Terminals airlines, expects growth from India Hong Kong Air Cargo Terminals (Hactl), the major air cargo terminal operator at the world’s largest air cargo hub (Hong Kong International Airport) recently unveiled its latest Cargo Management System, called COSAC-Plus. Hactl’s more than 100-airline customers will adopt COSAC-Plus, in a phased manner, in early 2012. Ratan Kr Paul

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actl’s base is Super Terminal 1, which was opened in 1998 with 3,90,943 sqm floor area and airside frontage of 1,940 m. It has a capacity of 3.5 million 20 cargotalk February 2012

tonne per annum. The terminal achieved all-time record throughput of 2.9 million tonne in 2010 and record throughput (10,184 tonne) in one day in the same year. The terminal was built with an initial investment of US$1 billion. A

major development at SuperTerminal 1 in 2011 was the completion of COSACPlus (Community System for Air Cargo).

COSAC-Plus represents an investment o f H K $ 2 4 0 m i l l i o n ( U S $ 3 1 m i l l i o n / EUR22million/GBP19million), the www.cargotalk.in

International Airport Terminal News

Mark Whitehead

largest single investment by Hactl since the building of SuperTerminal 1. It is the culmination of three years’ intensive development and testing by a team of upto 160 professionals from IT, operations and technology experts.

COSAC-Plus has also involved the largest single training exercise ever conducted by Hactl, comprising over 350 classes held from August to December 2011, training over 3,500 users from airlines, freight forwarders, government agencies and its own staff. In addition, a self-directed Computer Based Training System (CBT) was introduced in September 2011 to help users familiarise themselves with COSAC-Plus. There will also be a 24 hour on-site support for upto seven days after each go-live phase.

COSAC-Plus is multilingual and comes with a full web interface, online help and personalisation capability. It handles images for the first time and has comprehensive cargo tracking features.

Its modular and open architectural design facilitates eFreight customisation, development and integration with airlines’ own systems.

Other major development in 2011 was Hactl’s agreement with 11 new carrier customers in 2011 (scheduled and charter). Hactl handled approximately 2.7 million tonne of cargo in 2011, which is second highest figure in its 36 year history and still the largest throughput at any single cargo terminal in the world.

Commenting on the focus area for the year 2012, Mark Whitehead, managing 22 cargotalk February 2012

director, Hactl, informed that COSACPlus will go fully live with all 100+ Hactl airline customers, within the first 4 months of 2012. “This HK$ 240 million investment will be immediately followed in 2012 by a further HK$ 1 25 million in continuing upgrades and enhancements. Meanwhile, on the handling systems front, we will be investing a further HK $ 1 80 million in equipment upgrades and renewals,” he added.

appeal of Hong Kong as an efficient gateway for China and indeed the whole Asia region,” Whitehead maintained.

Highlighting the expectations for 2012, as far as growth of air cargo traffic from Hactl terminal is concerned, Whitehead maintained that with the current economic uncertainty in Europe and USA and its impact on exports from China and on air cargo in general, Hactl expects a tough start in 2012 with gradual recovery as the year progresses. “We are budgeting for a modest decrease on 2011, but still expect to beat our pre-recession peak year, 2007,” he said.

Key Facts

As a handling agent, though Hactl does not have any influence over the development of trade lanes, Whitehead appeared to be quite optimistic that there would be a good volume of cargo traffic between Indian airports and Hong Kong International Airport. “We have observed a growing interest among carriers in services between India and Hong Kong/ China,” he stressed.

Traffic between India and Hong Kong, handled by Hactl over the past two years, has been as follows: In 2010 import and export had been 32,320 tonne and 65,196 tonne respectively while in 2011, import and export were at 34,017 tonne and 60,484 tonne, respectively.

He also underlined that Hactl is increasing its attendance and presence at all key air cargo events around the world and it will focus on India as one of the select number of markets tipped for above average air cargo growth over the next few years.

Hactl: • Launched in 1976 • Handling over 100 airlines including 53 freighter operators • Added-value by including services like third party unit build-up/breakdown, customs clearances, local collection/ delivery, scheduled road feeders to/ from 6 points in mainland China and X-ray scanning • Handles over 70 per cent of total Hong Kong throughput • B e s p o k e I T s y s t e m C O S A C - P l u s links Hactl with airlines, freight forwarders, agents, shippers/ consignees, airport authority, civil aviation authority, census and statistics department, and customs and excise department

Super Terminal 1: • Opened in 1998 • 3,90, 943 sqm floor area • Airside frontage 1,940 m

According to Whitehead, although exports to India were down by 9 per cent, thi s w as i n l i ne w i th 2011 trends as a whole. Perhaps what is more significant is the 5 per cent growth in traffic from India.

• Multilevel truck access and processing

“Hactl will continue to focus on providing the best possible service to our carriers through rigorous procedures and monitoring and continuing investment in our resources. We hope that this will enhance our airline customers’ opportunities to capture this growing market (India) and increase the overall

• 10,000 bay automated stillage storage/ retrieval system for loose cargo (box storage system)

• 3 , 5 0 0 b a y , m u l t i - l e v e l c o n t a i n e r storage system, served by 40 fullyautomated driverless ATVs • Additional storage for 1,573 empty units

• More than 400 pallet workstations • 227 truck docks • 2,700 staff www.cargotalk.in

Industry Associations Conference

Air Cargo Forecast Domestic and international cargo to reach 1.7 and 2.7 million tonne by 2016-17

T

he International Air Cargo Conference titled, Air ‘Cargo as Engine of Economic Growth’ which was organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), witnessed a significant number of policymakers and industry stakeholders. At this conference Zaidi emphasised on the guiding spirit of the ensuing Civil Aviation Policy by inviting the private sector in building air cargo infrastructure. “The new policy will encourage private sector investments and lay emphasis on setting up an air cargo promotion board,” said Zaidi. He also pointed out that with GDP growing annually at nearly eight per cent, the air cargo industry has been averaging annual growth of 12 per cent.

Zaidi also highlighted that the total c a r g o handled by In dian airports in 2010-11 was 2.33 million tonne, up from 0.5 million tonne in 2005-06. While domestic cargo is expected to increase from 0.8 million tonne to 1.7 million tonne by 2016-17, the international cargo traffic is projected to move up from 1.5 million tonne to 2.7 million tonne in the same period.

According to an ASSOCHAM study, as the key infrastructure sector expands to keep up with the rising passenger and cargo traffic, investments of ` 1.5 lakh crore will be required in the next 15

Speaking at a recently held ASSOCHAM International Air Cargo Conference in New Delhi, Nasim Zaidi, secretary, Ministry of Civil Aviation, Government of India, unveiled that the Ministry of Civil Aviation is working out a new Civil Aviation Policy to fulfill the requirements of both passenger as well as cargo infrastructure in India. CT Bureau

Nasim Zaidi ( fourth from left) along with other participants at the conference

years. India’s scheduled airlines have 430 planes now. ASSOCHAM’S study predicts that this figure is likely to go up to 1,500 by 2025.

With this projection in mind, Zaidi observed, “We need to decongest cargo terminals with simplification of customs procedures, greater use of mechanised handling and speedy clearances of shipments. India has the potential to emerge as a global trans-shipment hub.”

Taking cue from Zaidi, Najib Shah, chief commissioner at the Central Board for Excise and Customs, informed that the authorities have put in place a risk management system for self-declaration by exporters. Efforts are also being made to upscale infrastructural facilities and reduce dwell time. However, K Narayana

Rao, chairman of ASSOCHAM Civil Aviation Committee, urged for reducing transaction costs with technological improvement like paperless e-enabled transactions, improving systems, processes and technology, developing common IT platforms covering all stakeholders for speedy flow of information. “We must have modern integrated cargo terminals, cargo villages, automated storage and rack systems and cold chain facilities to support pharmaceuticals and perishable cargo,” he said.

Among the others present at the conference were DS Rawat, secretary general, ASSOCHAM, Joeri Aulman, regional manager for south Asia at Netherlands Airport Consultants and several other air cargo experts and professionals. cargotalk

February 2012

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Cover Story Academic and Training Institutions

Skill Development

The key factor behind smooth logistics operation

Supply of skilled manpower for aviation and logistics industry remains a critical area, keeping in mind the lack of adequate training institutions in India. However, a few academic and training institutions have been doing commendable activities to meet the growing demand of skilled manpower in the industry. Cargotalk presents some highlights of those pioneering initiatives. Ratan Kr Paul

A

ccording to Subburathnam Pitchai - head training & development, the School of Business Logistics, logistics is the topic most discussed but less understood. The concept 24 cargotalk February 2012

of logistics management is integrating the processes of a manufacturer’s upstream and downstream logistics functions within one or more organisation in effecting the last mile delivery. In the competitive environment, enterprises

have experimented and exhausted all the possibilities in retaining their customers. Moreover customers are also knowledgeable enough to trade off between quality and price. All that is left to a manufacturer is to concentrate on www.cargotalk.in

his logistics management enabling him to survive the competitive environment.

In India, the fragmented support services are mostly with the sector that is not organised and the few that are organised, have skill gap across their functional level. On the whole, a comprehensive approach to supply chain management is mostly absent.

The value chain gets affected because of the same.

More over there is also a perennial skill gap in the resources that are available.

This does not let the need and the fulfillment to be met at anytime. Though the top management is well versed with the principles of ‘6 Sigma’- JIT,LEAN, KAIZEN and so on - but for people other than in the managment,these are merely jargon terms.

Unless the knowledge gets percolated down the line by default, the objectives of

IAA: Dinesh Kumar presenting certificate to a 100 per cent mark obtainer

In his opinion, TSBL stands apart in their curriculum structure and teaching methods when compared to other business schools.

The strength of TSBL is in their faculty who have adequate practical experience and theoretical exposure. Whether it is a MBA or diploma, students are imparted

(IAA) has been created as an autonomous body under the aegis of NIAMAR society to cater to the requirement of training the employees of AAI, Director General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS) under one roof. A memorandum of understanding

CIL organises a conference on Skill Development for Logistics in New Delhi

supply chain management can never be met with. In his opinion, the gap between the required and available skilled manpower is widening and the Government of India has identified the same and trying to address is it through NSDC (National Skill Development Corporation). “Business schools and universities have understood the need of the hour and have designed their curriculum to fulfill the demand supply mismatch,” he felt.

with a comprehensive knowledge desired at their level. This will enable them to position themselves in any segment in the logistics environment.

Indian Aviation Academy

Sponsored by Airports Authority of India (AAI), Indian Aviation Academy

(MoU) has been signed among AAI, DGCA and BCAS to become the centre for global excellence in areas of education, training and research in aviation in the Asia Pacific region.

Its aim is to become a deemed university in due course. IAA provides training on airport operation and management, aviation safety, aviation regulation, aviation security, airport cargotalk

February 2012

25

Cover Story Academic and Training Institutions

“IAA is now open for all i.e, AAI people, industry people and freshers. We are committed to supply skilled manpower required for aviation logistics sector,” he said. He advised the air cargo industry to avail of the training opportunity to accept the future challenges. They should also invest in human resources development.

Spread over an area of 5-acre, IAA has world class training infrastructure, hostel facilities and in-house & visiting aviation experts that are at par with the renowned civil aviation training institutes around the world.

JBS Academy: At an event to felicitate sutudents

pavement designing and air cargo handling (including dangerous cargo handling).

According to Dinesh Kumar, director, Indian Aviation Academy and air cargo operation and management expert, the aim of IAA is to build capacity in aviation to fuel the rapid growth of the aviation industry.

The academy provides internationally approved training packages of one week to 10 weeks and specialisation programmes in all fields of aviation. “Our aim is to be

a pioneer training institution in aviation education training and research in the Asia Pacific region.

In 2010 IAA trained approximately 3,000 people, besides ICAO fellowship.

Recently a group of Afghanistan Civil Aviation personnel (20) has undergone an orientation programme in aviation management. IAA will offer IATA programmes on Basic Cargo Introductory Course and Airport Operation course in May 2012. Currently the registration is going on for this course.

The institute is accredited by IATA and DGCA to conduct courses on ‘Dangerous Goods Regulations’, on regular basis.

Bureau of Civil Aviation Security, India has also approved institute for training in Aviation Safety and Security. Under the guidance of ICAO, the institute has set-up a Course Development Unit under ICAO training programme for developing Standardised Training Packages (STPs) in the field of aviation. It has already developed two STPs, on ‘Bird Hazard Control Management’ and ‘Airport Pavements Maintenance’. Four more STPs on Airport Passenger Terminal Management, Contracting for Airport Construction, Contracting for Procurement of Equipment and Contracting for Airport Services are under preparation.

CII Institute of Logistics

Head quartered in Chennai CII Institute of Logistics (CIL) has an aim to gain more insights into the emerging trends and industry specific problems of national importance as well as global best practices in logistics and supply chain management. It enlightens the industry to cut down the transaction cost, increase efficiency, enhance profitability and bring solutions to macro level issues.

Annamalai Universiti: (L-R) Dr. SB Nageswara Rao - director, DDE, Dr. M. Rathinasabapathi, registrar, Dr. M. Ramanathan, vice chancellor and JP Kumaradhas

26 cargotalk February 2012

CIL presents itself to become an international centre of excellence in logistics and supply chain management and to facilitate Indian industry to be referred in global business for its best practices in supply chain management and logistics. CIL organises regular training programmes on logistics supply chain management across the country. www.cargotalk.in

Planning Comission on Skill Development

The Planning Commission identified a huge gap between the organised and unorganised sector and lack of availability of the skilled manpower, particularly in the unorganised sector. It has emphasised on the following areas: Skill development of drivers (heavy commercial vehicle) who comprise the largest portion of the LSC work force The Ministry of Shipping Road Transport and Highways are in the process of formulating one training institution on driving and research in each state (two in larger states) Transport supervisor, warehouse assistants, semi-technical position needed skill development Supervisory levels in international logistics operating at Custom House Agent (CHA), Non Vessel Operating Common Carrier (NVOCC), Freight Forwarder, Container Freight Station Operators, Liner Agent, Air Cargo Agent, IATA Agents, Sub Agent. General Service Administration (GSA) needed imparting of training

with the contemporary development in the discipline of Logistics and Supply Chain Management (LSCM). These MDPs were conducted for IOCL, BPCL, ONGC, DVC, MSTC, Lee & Muirhead, DHL, etc.

Considering the requirement of a standard text book, the ACLM Research Bureau carried out a survey and published the first ever Asian textbook on Logistics Management, Definition Dimension and Functional Application.

TEAM ACLM along with ONGC Academy officials

Its recent training progrmmes were on vendor management, good and services tax, knowledge enrichment programme on supply chain management, supply chain performance measurement, warehouse and inventory management, materials management for manufacturing competitiveness, transportation & fleet management, international logistics, general management, role of technology in supply chain management, etc.

Management (For a group of students from the same institution). Short Term Certificate programmes are also offered for corporates in Logistics Excellence and Managerial Excellence.

CIL’s regular training programmes include Post Graduate Diploma in Supply Chain Management, Post Graduate Diploma in Supply Chain Management (Lateral Entry), Diploma in Supply Chain Management, Advance Diploma in Supply Chain Management, Certificate Courses and Advanced Certificate Courses.

Asian Council of Logistics Management (ACLM) has been the first in Asia to start a certificate course on logistics management with the affiliation of West Bengal State Council of Technical Education. Some of the first (2001-02) and second batch, (2003-04) are now working at good positions in other developed/developing countries. ACLM is regularly conducting Management Development Programmes (MDPs) to empower the serving managers,

It also offers Short Term Certificate Course in Logistics & Distribution

Asian Council of Logistics Management

An updated supplement with upgradation of present chapter, like cold chain, green logistics, express logistics, packers and movers and rural logistics to the existing 20 chapters, is ready for publication.

According to Brig.(Retd.)Dr. SK Bhattacharyya, president, ACLM, there is a need of logistics university in India as well as in the world. “There should be a separate branch of learning of LSCI,” he said. He also underlined the importance of the marine colleges and universities like Petroleum & Energy Dehradun, Maritime University at Chennai and Institute of Port Management at Chennai.

“We do not have similar curriculum for aviation crew except for pilots, navigators and aeronautical engineers.

We have aviation institute viz. Institute of Aviation and logistics and other flying clubs/colleges. All these institutions can be combined and a seat of learning can be created for a compressed and integrated logistics education,” he advocated. cargotalk

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Cover Story Academic and Training Institutions

Incremental human resource requirement (in ‘000s)

2022

Incremental (in ‘000s)

15

60

44

1520

5952

4432

2008 Warehousing (organised sector and 3PL) No. of warehouse managers No. of warehouse managers

Transportation, Logistics and Packaging Sector Amit Shankhdhar

Drivers

1872

6942

5070

Helpers

2113

7833

5720

No. of Loading supervisors

281

1041

761

Source: National skill developement corporation

incorporated in the same. It also added a few sessions on soft skills for these students.

Subburathnam Pitchai

JBS Academy JBS Academy was set up in 2010 to cater to education in the logistics industry.

The idea is to create ‘industry ready employable graduates’ as well as ‘skill update existing professionals’ for the logistics industry. The academy conducts programmes at three levels - beginners or basic, working professionals or advanced and for middle and senior management.

“In all sections we undertake: two hour programmes on a specific topic, medium term programmes between 16 to 40 hours as well as long programmes extending up to 120 hours,” said Samir J Shah, partner, JBS Group of Companies. JBS Academy’s all programmes have classroom teaching coupled with tutorials.

In the beginners programmes the academy also undertakes film shows and field visits to ports in Gujarat. The beginners programme also has internship 28 cargotalk February 2012

JBS Academy has started a programme on ‘Careers in Logistics’ and take the presentation to more than 20 undergraduate colleges to sensitise the students on this subject as well as create an interest in the field. The presentations are done in Hindi and Gujarati since English is still not spoken well at this level in Gujarat.

Parallel to this we undertake the same programme in over 12 MBS colleges for the same purpose but the programme offering is different.

The academy have developed its own programmes under ‘Logiveda’ brand for port and custodian personnel, custom house agents staff, freight forwarders and consolidators, steamer agents, etc. “For logistics subjects we have a tie-up with CIL and are in dialogue with CILT for an international accreditation. We also have a tie-up with Narrotam Morarjee Institute of Shipping to cater to the niche shipping industry requirements,” informed Shah.

JBS Academy is working on a few MBA colleges for a tie-up to offer its programmes there as a value add subject for the MBA students. “We are also in dialogue with a few forwarding companies to undertake both induction training for new entrants as well as continual skill updating for existing

staff,” he added. The academy will publish books on various logistics subjects under our publication division. “The challenge is that industry engagement is still lacking which makes it difficult for dedicated players like us. The industry is poised for great growth but awareness and social acceptance is the need of the hour,” he maintained.

Annamalai University

Annamalai University, through Adithya Institute of Management Studies has developed courses in logistics, supply chain management, shipping, port management, transportation and warehouse management.

Commenting on the increasing importance of skill development for logistics and supply chain industry JP Kumaradhas, director-Adithya Institute of Management Studies said, “I foresee a bright potential in logistics and supply chain industry in India since it is a fast developing country.

Due to the industrialisation and globalisation, in every industry, irrespective of its size and nature, there is a need for logistics professionals since logistics and supply chain industry are the backbone of any economy in the world.” www.cargotalk.in

Cover Story Academic and Training Institutions

According to him, the growth in sectors such as retail, automotive, manufacturing, etc., in India is expected to give rise to more integrated supply chains requiring better services, processes and storage facilities. To compete with the present market competition, the logistics and supply chain services are playing a vital role and hence perfecting the supply chain is the only way to gain the market share.

In his opinion, presently the persons dealing with the logistics fields are only experienced but not professionally qualified. If a professionally qualified person is dealing with the same functions, he can contribute more to the said operations due to the knowledge he acquired through his qualification. “Studying a course in the said field will offer the candidate an opportunity to fast-track their career and enhance their employment prospects,” he maintained.

He observed that understanding the scope and the opportunity in the logistics

and the shipping industry, the academic institutions are now aware about the importance of professional qualification in logistics and shipping industry. Hence the institutions are coming up by introducing the educational programmes relating to this field.

“Fifteen courses were launched by Annamalai University in the field of logistics, shipping, port management, etc.

All the courses offered are correspondence courses and its contents are very extensive and understandable. These programmes are formulated in a very flexible learning system which will suit to the working professionals as well,” informed Kumaradhas.

DTDC Institute of Supply Chain Management

According to Amit Shankhdhar, general manager, north, DTDC Courier & Cargo and head DTDC Institute of Supply Chain Management (DISCM) the future of the industry is certainly bright, as growth in logistics sector will necessarily have to keep pace with the rate of growth in the Indian economy, which even as per the most conservative estimates is placed at 7 per cent.

Considering the fact that the logistics industry in India is in its nascent stage, the potential for growth appears to be high.

The pressure of international trade and its competitiveness will compel Indian businesses to look for and adopt logistics best practices

30 cargotalk February 2012

which will further propel the growth of this industry.

Shankhdhar said that at present there is an acute shortage of personnel, professionally trained to handle logistics related functions in the Indian environment.

The existing approach to filling logistics related jobs is to find functionally experienced personnel in the fields of transport, inventory and warehousing.

They can be placed as logistics heads.

Logistics being a cross functional specialisation needs to be covered through structured training and cross functional experience in a large number of areas of operation.

“Since logistics personnel are needed at all levels of operation from the blue to the white collar varieties and since the areas of employment are not only large and diverse and the economy is growing continually, it is not possible to indicate the numbers required but what can be stated quite categorically is that the requirement is continual and rapidly growing,” he said.

He argued that there are no centres of excellence in training in the field of logistics and supply chain in India and most of the training is being imparted as part of the MBA courses by management institutes and some selected universities where supply chain managment is included as an optional subject and in very few cases as a compulsory subject.

R e c e nt l y t he DT DC I ns t i t ut e has taken a pioneering role in this field and has obtained accreditation from CILT International for providing internationally recognised certificate and diploma training faculties in India. The arrangement is proposed to be spread to other metropolitan cities in the near future.

“DTDC Institute of Supply Chain Management is playing a pioneering role in the field of providing professional qualification of international standard in India both at certificate and diploma level, in which the quality of instruction and evaluation has been highly appreciated by the parent body i.e. CILT International,” added Shankhdhar. www.cargotalk.in

Guest Column Logistics Services

Logistics - Career with a promise

Logistics is one of those relatively unfamiliar terms that remain, less than fully understood in the business world and even lesser recognised as a powerful competitive tool in both domestic and international industry and trade.Yet, it is today’s ‘Mantra’ for survival in the hyper competitive environment of the globalised world. Lt Gen (Retired)

L

ogistics is now at the centrestage and the captains of this industry need to sit up and take a note of it, adopting and adapting logistics’ best practices to remain in the business. It can no longer be treated as a mere support function, unworthy of top executive attention. This recognition requires a follow up through identification of deficiencies both in our physical and human resources related to logistics.

Lt Gen (Retired) D V Kalra

India, with its rapidly growing economy and aspiration to become the third largest economy in the world in near future, by overtaking Japan, cannot remain unmindful of its logistics inadequacies which could thwart all other efforts, keeping Indian products non-competitive in the world market, because of high logistics costs.

Our Logistics Productivity Index (LPI) is rated by the World Bank as 3.12 on a scale of 1-5, placing us at the 47th position in the World. Indian Infrastructure is rated at 2.1

DV Kalra, PVSM, AVSM; Dean DTDC Institute of Supply Chain Management on the same scale. This area of weakness has been under the public gaze for some time and is now fortunately receiving governmental attention and attracting private sector involvement.

Hopefully, enough investment both Indian and foreign will continue to flow into this sector to speed up the process of building a robust infrastructure to handle the increasing flow of materials in and out of our manufacturing plants and warehouses to reach the consumers worldwide. The Dedicated Freight Corridors and High Speed Rail, set to carry a billion and a half tonne of freight by 2017, is to be seen as one of the major steps in this direction. Equally, the Golden Quadrilateral and Public Private Partnership in Port Development, as also several Port Connectivity Projects, are clear indicators of the efforts being made to upgrade our infrastructure. With these efforts, we can hope, in not too distant a future, to have infrastructure which will support and sustain the high rate of economic growth and not prove a drag on it.

Requirement of Trained Professionals

However it is not very obvious and yet equally, if not more, worrisome is the void between the need for and availability of professionally qualified and trained human resource to handle the complex and cross functional responsibilities of managing logistics. Relentless global competitive pressures, myriad rules and regulations, not to mention the International Business

Practices and Law and the uncertainties of Sea Trade, made even more hazardous because of unrelenting acts of piracy, make it imperative to identify, train and groom high calibre logistics professionals who can operate competently and confidently in highly volatile international markets.

Global sourcing, competitive procurement, efficient multi-modal transportation, lean manufacturing and responsive distribution at a global scale where the points of origin of raw materials, manufacturing units, assembly plants and the distribution networks linking with the customer are so widely dispersed over the globe, that it requires exceptional grasp of the combined effects of these factors to minimise total costs and remain both competitive and responsive. This level of comprehension, incisive analyses and decision making ability can come only through a cross functional exposure of the potential logisticians over a period of time combined with institutionalised training where logistics’ best practices and emerging trends can be learnt and honed.

Such breadth of knowledge and competence can hardly be acquired by anyone working within the organisation and continual professional development in these fields becomes an imperative need.

This requirement, in turn, indicates a need for logistics training centres of excellence, conceived and created with direct involvement of academia and industry. It is only through this collaborative approach that fully employable logistician can be produced to meet the growing need of the Indian business and industry. Such c ont.on pg-32 cargotalk

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Training Institutions Profile

T2P Consultants

An organisation for supplying skilled manpower

A

ccording to Amit Shankhdhar, general manager-north, DTDC Courier & Cargo and head DTDC Institute of Supply Chain Management (DISCM) provides details of the organisation, T2P’s activities are designed to convert talent into highly productive and skilled person, fit to work with a world class organisation.

A multi-faced team of highly qualified and experienced consultants is fully focused and putting their efforts to get a suitable job for you in India as well as abroad.

“To achieve this objective, we invest heavily in research and development, finetuned trainings methodology, hiring best in class trainer, bringing industry specialists, a dedicated department to work constantly for finding placements and follow up action aimed at ensuring a better job for the candidates,” said Shankhdhar.

T2P Consultants was started with an aim to grow into a one-stop pioneer of organised HR recruitment services in India. It offers total solutions for skilled talent, organisation and expansion of human capital which include recruitment, training and outsourcing to every organisation. CT Bureau Shankhdhar also maintained that T2P is imbued with the mission to develop and nurture young talent for companies engaged in Supply Chain Function. T2P conducts highly participative, pro-active, short and long-term in-house training programmes and seminars/workshops/symposiums for key-professionals. T2P’s programmes are developed to suit client’s specific focus and requirements. These trainings are customised to meet the requirements of our clients to increase performance and productivity of professionals – both prospective and current.

“We wish to position ourselves on a platform where companies having supply chain function can share their views and industry best practices for the betterment and upgradation of the whole industry. As a small step towards realising the goal, T2P conducts various seminars on Supply Chain function, behavioral and softskill trainings on an ongoing basis,” Shankhdhar added.

T2P’s major activities include SCM trainings, behavioral trainings and Joboriented trainings for freshers.

Corporate Training

Shankhdhar informed that T2P Training brings new thoughts, ideas and concepts, new and different ways of looking at everyday issues and problems tried and tested solutions evolved in successful organisations and a dynamic future vision.

“Even a small new input of ideas or thought, properly developed can produce marvelous benefits,” he said. T2P gives importance on improving effectiveness, efficiency and skills of individuals and work skills of employees of organisations, by creating an awareness of alternative options and solutions, logical analysis of problem and goal-orientation of strategy/ actions with a time-tested system.

cont. from pg-31 institutions would in turn require a knowledge source to draw upon, making a tie-up with internationally recognised and accredited institutions necessary.

Recognising this imperative need of the Indian industries and businesses, the DTDC Institute of Supply Chain Management, took the pioneering step to obtain accreditation from Chartered Institute of Logistics and Transport (International) 32 cargotalk February 2012

and launched internationally recognised courses like, Certificate and Diploma in International Logistics.

This pathbreaking effort has been well received in the country and alumni of the Institute now represent a core of future logistics cadres. It is to give a further fillip to this effort that the DTDC Courier and Cargo have launched a ‘Talent Hunt Drive’ to pick the logisticians of the future and

encourage them to make this promising career, their first choice. It will be in the larger interest of the industry and trade to support this effort whole heartedly, by forming a Logistics Forum that would continually endeavour to spread the message about the growing importance of the logistics and the contribution that trained logisticians can make to the growth of Indian economy and to the development of the nation. www.cargotalk.in

Cargo Performance Import / Export

Delhi International Airport Cargo Department, IGI Airport, New Delhi

( A irline - wise I mport / E x port C argo P erformance for the month of d E C E B M E R 2 0 1 1 )

S. No. Airlines

Export(MTs)

Export Perishable Cargo (MTs)

Export (with Peri.)

(UPL)(MTs)

Import

Total Cargo

All wt. in mt.

% of Total

1 Jet Airways 949 175 1124 1821 2945 10.12% 2 Cathay Pacific 787 5 792 1746 2538 8.72% 3 Emirates................................. 651.............. 889.............. 1540...............436...............1976.......... 6.79% 4 Air India 336 197 533 1016 1549 5.32% 5 British Airways 695 69 764 509 1273 4.37% 6 Kingfisher Airlines Ltd. 477 53 529 694 1224 4.21% 7 Singapore Airlines 549 14 564 607 1171 4.02% 8 Lufthansa Cargo Airline 465 43 507 624 1131 3.89% 9 Fedex Express Corpation 655 64 719 400 1119 3.84% 10 Thai Airways........................... 191................13............... 204...............758................ 962.......... 3.30% 11 Etihad Airways 337 54 391 427 818 2.81% 12 Qatar Airways 357 116 473 257 730 2.51% 13 Swiss World Cargo(India) 326 19 345 310 655 2.25% 14 Malaysian Airline System 241 29 270 295 566 1.94% 15 Virgin Atlantic.................................315..................... 2................... 317..................238....................555.............1.91% 16 KLM 300 64 364 188 552 1.90% 17 Turkish Airlines 328 37 365 146 511 1.76% 18 Air Asiax 265 13 277 211 488 1.68% 19 Air France 279 40 319 130 448 1.54% 20 Aerologic 97 0 97 333 431 1.48% 21 Finnair.............................................224..................... 6................... 230..................186....................416.............1.43% 22 Uzbekistan 217 37 254 143 396 1.36% 23 Saudia 167 200 368 17 385 1.32% 24 China Air 150 0 150 199 348 1.20% 25 American Airlines Cargo 216 2 218 121 339 1.17% 26 Austrian Airlines 166 14 180 135 316 1.08% 27 Japan Airlines....................................33..................... 1..................... 34..................250....................285.............0.98% 28 Martin Air 88 0 88 188 276 0.95% 29 Air China 151 0 151 100 251 0.86% 30 Aeroflot Cargo Airlines 136 28 163 65 229 0.79% 31 China Eastern Airlines 68 12 80 144 224 0.77% 32 Continental Airlines 115 2 116 79 196 0.67% 33 Gulf Air............................................162................... 27................... 188..................... 6....................194.............0.67% 34 Eva Air 27 0 27 143 170 0.59% 35 Blue Dart 153 0 153 8 161 0.55% 36 Ariana Afghan Airlines 49 0 49 46 95 0.33% 37 Royal Jordanian Airlines 27 42 70 10 80 0.27% 38 Ethopean Airlines 6 4 10 68 78 0.27% 39 Aerosvit.............................................52................... 22..................... 74..................... 2......................76.............0.26% 40 Air Mauritius 45 21 66 6 72 0.25% 41 Kuwait Airlines 20 43 63 7 70 0.24% 42 Asiana Airlines 32 0 32 34 66 0.23% 43 Mahan Air 57 0 57 6 63 0.22% 44 Air Arabia 52 6 58 1 59 0.20% 45 China Southern Airlines....................13..................... 2..................... 15................... 38......................53.............0.18% 46 Sri Lankan Airlines Ltd 39 0 39 14 53 0.18% 47 Oman Air 41 3 44 0 44 0.15% 48 Air Astana 24 8 32 6 39 0.13% 49 Pakistan International 9 0 9 21 30 0.10% 50 Turkmenisthan Airlines 14 2 16 0 16 0.05% 51 Jetlite.................................................. 7..................... 2....................... 9..................... 3......................12.............0.04% 52 Druk Air 0 0 0 0 1 0.00% 53 Deccan Express Log 0 0 0 0 0 0.00% 54 Indian Airlines 0 0 0 0 0 0.00% 55 Royal Nepal Airlines 0 0 0 0 0 0.00% 56 MIS 1085 16 1101 1266 2367 8.13%

Total 12243 Cargo handled in December‘10 13121 % VARIATION

2397 2437 -1.64%

14640 15558 -5.90%

14461 14570 -0.75%

29101 30128 -3.53%

100.00%

## Cargo Handled at Centre for Perishable Cargo

34 cargotalk February 2012

www.cargotalk.in

Mumbai CSI Airport Export/Import Cargo Tonnage Handled in D E C E M B E R 2 0 1 1

(Including TP Cargo)

Weight in Tonnes Export General

S. No. Airlines

Export Perishable

Total Export

Import

Total Exp+Imp

1 Jet Airways 1334.23 1410.14 2744.37 2579.03 5323.40 2 Emirates 1306.29 1122.12 2428.41 962.18 3390.59 3 Air India............................... 899.21 ......... 1343.64 .......... 2242.85 .......... 1005.11 ......... 3247.96 4 Cathay Pacific 914.05 42.81 956.86 1898.36 2855.22 5 Lufthansa 630.46 510.14 1140.60 1566.49 2707.09 6 Singapore Airlines 531.15 208.45 739.60 1000.85 1740.45 7 Kingfisher Airlines 474.81 101.27 576.08 662.76 1238.84 8 Etihad Airways...................... 598.65 ............ 54.32 ........... 652.97 ............ 572.65 ......... 1225.62 9 British Airways 485.16 311.53 796.69 407.73 1204.42 10 Air France 442.74 88.56 531.30 443.33 974.63 11 Federal Express 319.52 281.22 600.74 321.81 922.55 12 Swiss Intl. Airlines 328.04 137.50 465.54 445.25 910.79 13 Ethopian Airlines 762.34 9.06 771.40 31.56 802.96 14 Qatar Airways.............................. 224.69 .............. 236.24 .............. 460.93 . ............. 314.79 . ............775.72 15 Thai Airways 215.22 71.01 286.23 485.12 771.35 16 Turkish Airlines 351.73 6.77 358.50 282.33 640.83 17 Air Cargo Germany 0.00 0.00 0.00 516.71 516.71 18 Malaysian Airlines 321.82 16.22 338.04 176.92 514.96 19 Saudi Arabian Airlines 346.12 53.64 399.76 106.84 506.59 20 Jade Cargo 0.00 0.00 0.00 456.04 456.04 21 UPS................................................ 69.58 ..................0.00 ................ 69.58 . ............. 305.29 . ............374.86 22 Gulf Air 123.68 176.33 300.01 6.81 306.82 23 Kuwait Airways 101.05 181.27 282.32 10.31 292.63 24 South African Airlines 219.77 6.55 226.32 16.48 242.79 25 Qantas............................................ 74.41 ..................6.18 ................ 80.59 . ............. 156.37 . ............236.96 26 Delta Airlines/KLM 98.14 37.57 135.71 88.73 224.44 27 Austrian Airlines 0.00 5.13 5.13 213.46 218.59 17 Charters 0.00 0.00 0.00 210.67 210.67 28 Kenya Airways 197.02 0.06 197.08 12.94 210.02 29 Korean Air.................................... 118.10 ..................8.32 .............. 126.42 . ............... 79.14 . ............205.56 30 Airasia 116.05 0.00 116.05 89.30 205.35 31 Blue Dart 101.77 0.00 101.77 71.27 173.04 32 Oman Air 78.83 84.09 162.92 2.82 165.74 33 Continental Airlines 55.50 1.48 56.98 89.25 146.23 34 EL-AL Airlines................................ 41.81 ..................0.45 ................ 42.26 . ............... 95.14 . ............137.40 35 Air Arabia 50.33 72.33 122.66 2.33 124.99 36 Indigo Air 100.65 0.00 100.65 23.78 124.42 37 Air Mauritius 98.22 0.70 98.92 9.90 108.82 38 Srilankan Air 55.81 4.44 60.25 23.41 83.66 39 Fin Air............................................ 79.08 ..................0.00 ................ 79.08 . ................. 0.00 . ..............79.08 40 Pakistan Airways 28.77 21.98 50.75 11.69 62.44 41 Egypt Air 53.26 0.00 53.26 1.71 54.98 42 Iran Air 32.38 5.65 38.03 1.54 39.57 43 Yemenia Airways 23.99 7.16 31.15 0.13 31.27 44 Baharin Airlines 13.33 0.00 13.33 0.00 13.33 45 NorthWest Airlines........................... 0.00 ................12.41 ................ 12.41 . ................. 0.00 . ..............12.41 46 Royal Jordanian Airways 10.56 0.00 10.56 1.07 11.63 47 Bangkok Airways 0.00 0.00 0.00 6.39 6.39 48 Others 230.46 84.48 314.95 322.28 637.23 GRAND TOTAL

12658.73

6721.23

19379.96

16088.06

35468.03

Export/Import Cargo Tonnage Handled in N ovember 2 0 1 1

Cargo Handled in November ’11

13413.56

6523.63

19937.19

14684.81

34621.99

cargotalk

February 2012

35

Cargo Performance Indian Airports

Traffic statistics

I N T E R N A T I O N A L F reight Freight (in Tonnes) For the Month S. No. Airport

(A) 11 International Airports 1 Chennai 2 Kolkata 3 Ahmedabad 4 Goa 5 Trivandrum 6 Calicut 7 Guwahati 8 Jaipur 9 Srinagar 10 Amritsar 11 Portblair

Total (B) 6 JV International Airports 12 Delhi (Dial) 13 Mumbai (Mial) 14 Bangalore (Bial) 15 Hyderabad (Ghial) 16 Cochin (Cial) 17 Nagpur (Mipl)

Total (C) 11 Custom Airports 18 Pune 19 Lucknow 20 Coimbatore 21 Mangalore 22 Patna 23 Trichy 24 Bagdogra 25 Chandigarh 26 Varanasi 27 Madurai 28 Gaya

Total (D) 18 Domestic Airports (E) Other Airports

Grand Total (A+B+C+D+E)

For the period April to October

October 2011

October 2010

% Change

2011-12

2010-11

22316 3744 1055 86 3719 2002 0 5 0 313 0 33240

24782 3909 1389 115 3381 1736 0 44 0 599 0 35955

-10.0 -4.2 -24.0 -25.2 10.0 15.3 - -88.6 - -47.7 - -7.6

165315 26996 7164 791 25389 14418 0 146 0 4134 0 244353

174192 26042 8217 811 22964 12859 0 332 0 3110 0 248527

-5.1 3.7 -12.8 -2.5 10.6 12.1 -56.0 32.9 -1.7

29714 38444 11500 3255 2412 29 85354

33470 42056 11053 3366 2334 21 92300

-11.2 -8.6 4.0 -3.3 3.3 38.1 -7.5

222492 281044 82107 25866 20791 199 632499

233393 275415 76292 23800 19204 175 628279

-4.7 2.0 7.6 8.7 8.3 13.7 0.7

0 71 37 0 0 164 0 0 0 0 0 272 0 0 118866

0 27 20 0 0 156 0 0 0 0 0 203 61 0 128519

- 163.0 85.0 - - 5.1 - - - - - 34.0 - - -7.5

0 494 283 0 0 1446 0 0 1 0 0 2224 0 0 879076

0 423 251 0 0 1095 0 0 0 0 0 1769 61 0 878636

16.8 12.7 32.1 25.7 0.1

% Change

First IAG Cargo 747-8F lands at Mumbai airport The first commercial IAG Cargo 747-8F flight recently landed at Chhatrapati Shivaji International Airport in Mumbai. IAG Cargo, through its brand British Airways World Cargo has flown this next generation aircraft into India following a flight from Hong Kong.

This Boeing aircraft painted in British Airways World Cargo livery will operate in key cargo hubs across the network providing market-leading performance in terms of payload, fuel efficiency, low tonne-kilometre cost and environmental compliance.

As part of the lease agreement for three 747-8 Freighters with Global Supply Systems, IAG Cargo will utilise the airplanes on long-haul routes to cargo hubs of Asia, Africa, Middle East, India, UK, Europe and the United States.

36 cargotalk February 2012

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Cargo Performance Indian Airports

Traffic statistics

D omestic F reight Freight (in Tonnes) For the Month S. No. Airport

(A) 11 International Airports 1 Chennai 2 Kolkata 3 Ahmedabad 4 Goa 5 Trivandrum 6 Calicut 7 Guwahati 8 Jaipur 9 Srinagar 10 Amritsar 11 Portblair

Total (B) 6 JV International Airports 12 Delhi (Dial) 13 Mumbai (Mial) 14 Bangalore (Bial) 15 Hyderabad (Ghial) 16 Cochin (Cial) 17 Nagpur (Mipl)

Total (C) 9 Custom Airports 18 Pune 19 Lucknow 20 Coimbatore 21 Mangalore 22 Patna 23 Trichy 24 Bagdogra 25 Chandigarh 26 Varanasi 27 Madurai 28 Gaya

Total (D) 20 Domestic Airports 29 Bhubaneswar 30 Indore 31 Agaratala 32 Visakhapatnam 33 Jammu 34 Vadodara 35 Imphal 36 Raipur 37 Udaipur 38 Ranchi 39 Bhopal 40 Aurangabad 41 Leh 42 Rajkot 43 Dibrugarh 44 Jodhpur 45 Tirupati 46 Silchar

Total

(E) Other Airports Grand Total (A+B+C+D+E)

38 cargotalk February 2012

For the period April to October

October 2011

October 2010

% Change

2011-12

2010-11

6604 6444 1153 316 106 9 590 497 249 6 273 16247

8494 7483 1548 353 137 19 652 792 191 13 249 19931

-22.3 -13.9 -25.5 -10.5 -22.6 -52.6 -9.5 -37.2 30.4 -53.8 9.6 -18.5

49465 48531 8282 2095 784 115 4965 3943 1510 53 1249 120992

54746 48811 8900 2223 935 194 5495 4912 1077 131 1278 128702

-9.6 -0.6 -6.9 -5.8 -16.1 -40.7 -9.6 -19.7 40.2 -59.5 -2.3 -6.0

17808 15391 7017 2885 670 443 44214

17905 18661 8240 3322 707 1155 49990

-0.5 -17.5 -14.8 -13.2 -5.2 -61.6 -11.6

114208 112034 48398 20230 4874 2790 302534

120498 116663 51851 21175 5297 7117 322601

-5.2 -4.0 -6.7 -4.5 -8.0 -60.8 -6.2

1891 371 605 19 262 0 122 170 35 61 0 3536

2618 302 692 20 367 0 112 32 50 36 0 4229

-27.8 22.8 -12.6 -5.0 -28.6 - 8.9 431.3 -30.0 69.4 - -16.4

12906 2309 4434 157 2117 0 887 977 207 444 0 24438

16855 1892 3822 186 1921 0 619 176 239 308 0 26018

-23.4 22.0 16.0 -15.6 10.2 43.3 455.1 -13.4 44.2 -6.1

156 432 475 42 116 165 420 270 0 146 62 90 95 54 36 3 1 40

292 480 536 44 130 197 497 258 0 130 143 191 146 95 25 2 0 18

-46.6 -10.0 -11.4 -4.5 -10.8 -16.2 -15.5 4.7 - 12.3 -56.6 -52.9 -34.9 -43.2 44.0 50.0 - 122.2

1392 2916 4209 610 661 1205 3146 1569 0 962 483 774 844 404 185 30 19 342

1554 3324 4145 501 777 1238 3529 1361 0 670 673 1251 835 573 162 12 6 267

-10.4 -12.3 1.5 21.8 -14.9 -2.7 -10.9 15.3 43.6 -28.2 -38.1 1.1 -29.5 14.2 150.0 216.7 28.1

2603

3184

-18.2

19751

20878

-5.4

145 66745

125 77459

16.0 -13.8

855 468570

793 498992

7.8 -6.1

% Change

www.cargotalk.in

Family Album Association

Silver Jubilee celeberation

By Bangalore Custom House Agents Association Recently, The Bangalore Custom House Agents Association Ltd, (BCHAAL) celeberated its silver Jubilee in Bengaluru in a grand way. Present on the occasion were a large number of the association members, government officials and logistics experts.

40 cargotalk February 2012

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Family Album Airlines/ Logistics Services

Cathay Pacific Airways honours top cargo agents

Recently,Cathay Pacific Airways hosted its annual award function in Mumbai to honour and thank the majors of the cargo industry for their excellent support to Cathay Pacific for 2010.

PSBediGroup celebrates

Founders Day, organises blood donation camp PSBediGroup, one of India’s leading integrated logistics solutions company, recently celebrated its 36th Founders Day. On this occasion the company organised a Blood Donation Camp.

The Camp was held in its corporate office in association with the Rotary Blood Bank.

cargotalk

February 2012

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Family Album Club Function

Air Cargo Club of Delhi

presents a gracious evening on Founders Day The Air Cargo Club of Delhi completed 35 years on January 11, 2012. On this occasion, an evening function was organised at Hotel Crowne Plaza, Gurgaon. At this event the Club felicitated the Founder members and all its 17 Presidents to date.

42 cargotalk February 2012

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cargotalk

February 2012

43

Face of the Month M Rafeeque Ahmed, President, FIEO

Be prepared reduce logistics for tough times and transaction costs Padmashree M Rafeeque Ahmed has taken over as president, Federation of Indian Export Organisations (FIEO) for the second time now.

Earlier, he was FIEO president from 2002 to 2004. In an interview with Cargotalk he unveiled what his focus would be in these trying times for Indian exporters. Ratan Kr Paul

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he FIEO president is the chairman of the Farida Group of Companies, a leading company for leather export.

He was also the Chairman of FIEO’s Southern Region. Ahmed is the first leading exporter from Tamil Nadu to be elected as president of FIEO. A widely travelled and experienced exporter, Ahmed has been associated with the leather industry for a long time and has played an important part in promoting and strengthening the varied components of this top export industry in India. He is president of the All India Skin and Hide Tanners and Merchants Association, chairman of the Footwear Design and

Development Institute, chairman of the Council for Leather Exports and founderchairman of the Indian Finished Leather Manufacturers Association. Ahmed is also a Member of the All India Footwear Panel Advisory Committee. “I have taken over at a time when clouds of uncertainties are over the horizon. The present period is challenging is to say the least.

We see that the world economy is rather fragile and the consumption centres of the West seem to be drying up,” was Ahmed’s first observation as he got into a conversation with Cargotalk. He pointed out some recent studies which indicated that the consumption centres are shifting to this part of the hemisphere and more

M Rafeeque Ahmed

particularly, to Asia. “In order to cater to the shifting demographic requirements there are indications that production and redistribution facilities will be relocated in our country or our neighbours which provide a comparative advantage in terms of cost/productivity/infrastructure,” he added.

Ahmed, however, raised a valid question-“Are we geared up to take such a challenge?” In his opinion, the prime focus would be to make the export industry cost competitive, which has been severely hit by 13 staggering policy rate hikes.

The hikes made cost of credit way ahead of competitors in the vicinity. “Creditofftake is lagging behind 2.8 lakh crore below the targets set by the Reserve Bank of India. So stimulating investments

44 cargotalk February 2012

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Ahmed maintained that 2011-12 is a mixed year for exports. The country witnessed an export growth of over 82 per cent in July and then it dropped to as low as 4 per cent in November. “We are keeping our fingers crossed for the balance months of the year. Rupee has witnessed huge volatility showing depreciation of over 16 per cent but lack of demand in EU and US failed to convert it into an export opportunity. We hope that the right mix of policies and efforts from the MSME sector would enable us to move on course,” he said.

Expectations from the Union Budget 2012-13

Challenging Times Ahead Responding to the export figure for April-Dec 2011, the FIEO president said that while 25.8 per cent growth in first nine months looks impressive but the same is much less than 33.2 per cent growth achieved in first eight months of the current fiscal and points to challenging times ahead. Ahmed said that percentage of growth with respect to most of the sectors have also come down at the disaggregated level. However, with the remaining months to go, Indian exporters will be able to achieve over US$ 280 billion in 2011-12.

“The increasing trade deficit, which has already touched over US$ 133 billion, is a deep cause of concern, as it is likely to swell the import bills in rupee resulting in adverse effect on inflation,” said Ahmed.

In view of the difficult times ahead in first half of 2012, Ahmed advocated that the cost of credit needs to be brought down so that both manufacturing and exports become competitive and a beginning needs to be made in the quarterly review of the Monetary Policy. Ahmed favoured bold economic and monetary reforms, including rolling out of GST, for sustaining the momentum in exports and containing high volatility in the exchange rate.

in the industry would be essential to reap the demographic dividends and gainfully employ the youth of the country,” Ahmed said.

He also emphasised on enhancement of productivity levels through production line training. For instance, tool room courses need to be integrated to primary education and such vocational courses need to be upgraded as Graduate level courses at par with B-tech. Providing adequate infrastructure to support industry would be yet another focus area for Ahmed. While targets are quite in line with plan projections, requirements are also substantial necessitating investments in PPP mode which are still lagging.

In-house projections (as shown in the chart on the previous page) have been made for exports for next 5 years. As per the projections, FIEO projected to end this fiscal with exports of US$ 275 billion. In the first 8 months (April –November) of the fiscal year, exports from India have reached US$ 192.7 billion and thus the Indian exporters will achieve exports between US$ 275 -280 billion in 2011-12.

In 2012-13, while FIEO’s initial projection was US$ 340 billion, but weak global demand and its third country effect on many developing countries has compelled Ahmed to downwardly revise the project to US$ 320 billion. Commenting on the present and future export scenario

Given the fact that the World has gone through a depression worst seen in the 1930s and continues to reel under the same with some of the most affluent countries being downgraded and having very high debt to equity ratios, the Ministry of Finance needs to revisit the issue of exemption from Income Tax on export profit. It should plough back in business so that expansion and modernisation of production takes place. Moreover, anomalies in TDS for payment made to non-residents should be addressed quickly as the same is against the basic tenets of taxation. Inverted duty structure with respect to a few items may also be looked into so as to give fillip to domestic manufacturing.

Appeal to Logistics Service Providers

Ahmed appealed to all service providers to keep operational costs at the minimum for the export sector to enable them to do business in trying times. They should work on economy of scale and endeavour to provide efficient services.

At present, the transaction cost of Indian exports range between 8-10 per cent of fob value and besides regulatory requirement delays in whole logistic chain contribute to very high transaction cost and time. “It should be the concerted efforts of all the stakeholders including exporters, government and logistic players to bring it to the bare minimum,” he concluded. cargotalk

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Shipping & Ports International News

PD Ports in UK

starts new terminal construction at Teesport

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PD Ports in UK has started the construction of Teesport container handling facilities on the Northeast coast, as part of a multi million pound expansion project.The works involves the complete reconstruction of over 5-hectare of terminal area with new heavy duty paving designed to withstand the increased load from the container stacks and the new cranes, which are also being purchased as part of the project. Ratan Kr Paul

his is the first phase of expanding Teesport’s container terminal capacity to 4,50,000 TEU, from its current capacity of 2,35,000 TEU – an investment of over £15 million.

Subsequent phases will be investigated subject to volume growth and market stability. The port’s overall strategy is to expand port wide capacity, including RoRo traffic, to at least 6,50,000 TEU, which will position Teesport as a major player in the container market. According to David Robinson, group chief executive officer, PD Ports, this investment, which involves some £29 million of total investment, signifies a long term commitment to the port’s unitised business, on the back of major growth opportunities. This will further improve performance and productivity for the port’s growing number of customers.

In January PD Ports announced a year on year growth in excess of 45 per cent at the Teesport container terminals, adding that the port’s bosses expected to see this growth continue to climb in 2011 as its container handling expansion plans took shape. This latest investment is expected to help position Teesport as one of UK’s major container hubs.

New apprenticeship scheme at Teesport introduced 2011 marks the 10th anniversary since PD Ports first introduced its apprenticeship schemes, which over the 10 years has seen 36 young people celebrate their success. This recent scheme however is the first of its kind at the Port, which over the 18 months of training will provide the 13 apprentices with a NVQ Level 2 in Dock Operations. Historically the apprenticeship schemes at Teesport have focussed on electrical and mechanical engineering trades.

46 cargotalk February 2012

Key appointments

Recently Rob Brewster has been appointed as development director logistics and Andrew Lowdon has joined PD Ports as commercial analyst.

These new roles are designed to further emphasise PD Ports’ growth strategy and to continuously reinvigorate the business’ commercial activities and seek new opportunities in existing and emerging markets. Brewster will lead the business development teams across all elements of PD Ports’ logistics activities, with an initial focus on port centric and contract logistics. He joined PD Ports from DHL International Supply Chain where he was UK business development director for three years. Lowdon is based at PD Ports’ headquarters in Middlesbrough where he will further support the business development teams by providing research and analysis of market sectors. www.cargotalk.in

Shipping & Ports International Exhibition

Asia Pacific Maritime 2012

wooing new participants from India

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The 12th edition of Asia Pacific Maritime (APM) 2012, which is a one-stop market for the region’s maritime community is taking place from March 14 to 16, 2012 at the Sands Expo and Convention Center, Marina Bay Sands, Singapore. Ratan Kr Paul • Provides a ‘holistic business experience’ combining exhibition, conference, fringe activities and networking events

PM 2012 will be held at a brand new location spanning two levels and occupying a total area of 18,000 sqm. “Apart from exhibitions, conferences and seminars offering the latest content, APM 2012 completes the holistic business experience with networking sessions that connect quality Asia Pacific buyers to international maritime players,” said Yeow Hui Leng, project director of Reed Exhibitions, which is the organiser of the show.

• Impressive international industry endorsement and support with strong country representations • C o n c e r t e d d i r e c t m a r k e t i n g a n d e-marketing efforts to drive visitor attendance for individuals and groups

Yeow Hui Leng

For the upcoming event we have already secured the interest of key Indian maritime companies The participants of APM 2012 will include regional and international experts and industry leaders who will share industry trends and insights on key issues in the maritime industry such as, green shipping, bunker, marine electronics & communications, marine propulsion and auxiliary machinery, offshore and support vessels. Commenting on the importance of India market for this event Leng pointed out that with almost 90 per cent of ndia’s trade volume conducted by sea and with the largest merchant shipping fleet in the developing world, India’s maritime sector is set to grow to a size of US$ 80 billion by 2020. This market trend is clearly reflected in

India’s rising participation in the Asia Pacific Maritime (APM) 2012. “For the upcoming event to be held in Singapore, we have already secured the interest of key Indian maritime companies like Bansal Marine, Malwi Marine and CS India Steel. APM 2012 is expecting to draw a total of 13,000 visitors, with an anticipated 20 per cent increase in India’s participation.

Why to Exhibit at APM 2012?

• Established and proven marketplace in the region with a global maritime business perspective

• A g g r e s s i v e v i s i t o r s a n d b u y e r recruitment programme combining regional roadshows, promotional incentives, purpose-led buyer delegations, extensive hosted buyer programme and effective CRM initiatives to augment quality attendance • Targetted advertising and promotions campaign across all communication channels Leng asserted that for visitors, APM provides a holistic business experience by combining a comprehensive exhibition, high-powered conferences and seminars, and a host of networking sessions. APM has strong international country representation including China, Denmark, France, Germany, Holland, Japan, Malaysia, Norway, Romania, Singapore, South Korea and the United Kingdom. “Meet more than 900 participants from over 50 countries bringing to you the latest cutting edge maritime products, technologies and services,” Leng added. cargotalk

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Shipping & Ports E-trade

E-trade in shipping and port sector An update in progress and future plans

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ne of the key players regarding port-bound services CONCOR has mean while done commendable progress regarding e-trade. The message exchange between customs and CONCOR is live for five messages at all 39 CONCOR locations and two more messages are under testing (out of total 13 messages). Both customs and CONCOR are trying to cover about 30 private ICDs/CFSs during the current plan.

CONCOR informed that presently a r o u n d 80 p er cent of fi li ng is done electronically under four JVs at Dadri and 2 terminals have also been provided there to facilitate e-filing. Customs sources informed that Version 1.5 has been implemented at 103 locations, 5 locations are under process and 8 more locations would be covered under the current plan. In addition, in accordance with the previous plans the roll out at 116 locations, would be completed

by February 28 this year.

In regards to customs message exchange (in ICES 1.5) with Ports Community System (PCS), Customs sources informed that exchange of 9 messages have been made live, two messages are under testing and four messages are at pre-testing stage.

Two under test messages are scheduled to go live by January 31, 2012 and four more would go live by March 15, 2012.

The testing for remaining 6 messages 48 cargotalk February 2012

The Ministry of Commerce and Industry’s project e-trade seem to be geared up with required support from the industry stakeholders.Taking inputs from their respective fields, Cargotalk presents some highlights of the progress especially in shipping and port related services pertaining to e-trade. CT Bureau ObjectiveS of E-trade Through e-trade (Electronic Data Interchange) the Government of India aims to simplify procedures, by introducing electronic delivery of services by regulatory and facilitating organisations. It would provide 24x7 access to users, increase transparency in procedures, reduce transaction cost and time and introduce international standards and practices in the area of clearance of export/ import of cargo The following organisations have been selected for integrated EDI implementation: Airports , Airlines, Apparel/Textile export Promotion Councils , Banks and RBI, Customs, Container Corporation of India (CONCOR), Directorate General of Foreign Trade (DGFT), Export Promotion Organisations, DG Commercial Intelligence/Statistics and Inland Container Depots/ Container Freight Stations , Indian Railways and Port Trusts The services covered under the project are: Electronic filing and clearance of export import documents, e-payment of custom duties and charges of ports, airports, CONCOR, etc., Filing and processing of licences for DGFT, e-payment of licence fee for DGFT, Electronic exchange of documents between community partners such as customs, ports, airports, DGFT, CONCOR, Banks, etc. would be started subsequently. Customs sources also informed that mandatory e-payment for customs duties, would be made mandatory by customs in phases from January 31,2012.

Customs’ RMS is also operational in 69 locations and two more locations would be operational shortly. Customs would commence RMS at all ICES 1.5

locations by April 11, 2012 except in locations where volume is very low. RMS for export would be started from April 30, 2012.

On the Customs–DGFT message interface, a reward scheme has been implemented from Janury 3, 2012. DGFT sources said that data transmission would start once the scheme stabilises and message exchange is scheduled to begin by January 31, 2012. www.cargotalk.in

Shipping & Ports News Update

DP World Nhava Sheva handles the longest ship at Jawaharlal Nehru Port Recently Jawaharlal Nehru Port in Mumbai witnessed the berthing of the longest ever container vessel in its 22 years of operations. The Singaporean flagged vessel Maersk Seletar with a length of 319-metre and capacity of 6,478 TEU called at DP World Nhava Sheva.

According to Anil Singh, senior vice president & managing director of DP World Subcontinent, the colossal change that DP World Nhava Sheva has brought about to Indian shipping over the years, has been a strong propeller for the container trade growth, India has experienced ever since. “While NSICT commenced operations long ago, it has never lost its importance to the shipping fraternity and today still retains its position as India’s preferred container gateway for our customers,” he said.

DP World’s Nhava Sheva terminal was set-up in 1997 as India’s first and premier Public Private Partnership in the port sector. The terminal has a quay length of 600-metre and a designed capacity to handle 6,00,000 TEU annually. “DP World Nhava Sheva has been consistently handling an annual throughput well over its designed capacity for over a decade.

The terminal attained a TEU per Quay metre of 2,562 TEU in 2010-11, among the highest in the World. DP World Nhava Sheva leads the way as the container terminal handling the largest throughput with such limited infrastructure,” added Alpesh Sharma, chief executive officer, DP World Nhava Sheva.

Anil Singh

He also asserted that Maersk Line’s decision to bring the Maersk Seletar to DP World Nhava Sheva reflects the confidence of the global shipping lines in the capabilities and performance the compny has demonstrated at JN Port.

Adani Petronet’s Dahej Port lunches second jetty Adani Petronet (Dahej) Port , which operates Dahej Port in south Gujarat, today has lunched the second jetty at the port. The company is a joint venture between Adani Ports & Special Economic Zone and Petronet LNG.The commissioning of the jetty also marks completion of the second phase of expansion at Dahej Port. The port has an annual cargo handling capacity of 20 million tonne. Dahej Port handles varied commodities such as coal, silica sand, rock phosphate, steel products and project cargo/machinery items.

The coal import terminal at Dahej is equipped with two jetties with a deep draft of 14-metre each. Recently, Dahej Port has also been connected by railways, a move that will help reducing logistics costs for transporting coal to the region and rest of India.

The Adani Group is also engaged in the creation of ports and special economic zone, logistics management (shipping to container train movement), storage and movement (food grain and orchard products) as well as realty development. The Adani Group established India’s largest private sector port and Special Economic Zone at Mundra (Gujarat) and operates another port at Dahej. It is engaged in developing ports/terminals at Hazira, Mormugao and Visakhapatnam in India and Adani Abbot Point in Australia. The Group is focused on emerging as the largest port in the country by aiming to handle 200 million tonne of cargo by 2020.

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Study & Survey Market Trends

FICCI survey on trends in 2012 domestic Shift is towards market

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he FICCI survey on the Global Meltdown and its impact on the Indian industry reveals that the uncertain economic outlook has also resulted in Indian corporates (50 per cent of the respondents) holding on to higher cash balances. An increase in cash balance typically implies that corporates are

There is an increasing apprehension among Indian corporates that the current global meltdown might snowball into a full blown crisis and last, at least till the end of 2012. A recently conducted FICCI survey unveiled that 83 per cent of the respondents share this view point to a long road ahead for the Indian trade and industry. CT Bureau FY2003, when the economic outlook was uncertain in the aftermath of the ‘2000 dotcom bust’ and the ‘WTC attack’.

Within the sample, sectors like metals, cement, food and beverages reported the maximum increase in cash balances. It is also possible that monetary tightening cycle that started in March 2010 has resulted

automobile tyres, manufacturing cables, vaccines, chemicals, pumps & valves, etc.

Highlights of Survey Findings

• A majority of the respondents felt that the current liquidity situation is not as bad as that of 2008 • Clearly, there is an increasing perception that the current global meltdown might snowball into a full blown crisis in 2012 • O v e r w h e l m i n g m a j o r i t y o f t h e respondents at 83 per cent felt the current global economic meltdown will last at least till end of 2012 • Apart from conserving cash, a quarter of the respondents have shifted/ contemplating a shift to domestic market

Crisis Management holding on to their investment plans for better future opportunities.

When credit is expected to be limited, firms hold on to more cash to meet any eventualities. Interestingly, nearly 82 per cent of the 50 per cent respondents were large corporate houses. According to the FICCI survey report, this trend is akin to 50 cargotalk February 2012

in sectors like construction beginning to feel the pinch. The respondents include member associations of FICCI and individual companies. The survey drew responses from an array of sectors ranging from heavy engineering to textiles.

Some other responses that were received were from tea manufacturing, cotton & synthetic yarn manufacturing, cement &

The participating companies were also asked to indicate what measures they are taking and suggesting to deal with the problem of slowdown. There suggestions included increase of government spending so as to boost the non-food credit growth, an end to the monetary tightening and better infrastructural facilities at the ports, specially in Chennai, Tuticorin and Kochi. www.cargotalk.in

Logistics Services Exclusive Interview

Yusen Logistics

gets new president in India

Masaki Kogure has taken over as president, Yusen Logistics. Speaking to Cargotalk he shared his plans and programmes for this market. His focus will be establishing a pan-India presence for his company. Ratan Kr Paul the ensuring years,” he added. He informed that a strategy has already been put in placed to make sincere efforts in order to explore more and more opportunities available in the Indian market.

He, however, maintained that currently a low phase is prevailing in the world economy which is impacting India as well. “ The European and US markets is under an all time low and impacting our international business with these economies,” he said. According to him, it will take time to recover from this low phase. Overcoming international low is the biggest challenge at this moment. He appeared to be confident in overcoming these challenges by implementing rationale policies and controlled aggression.

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“Opportunities are coming from domestic business in a tremendous way.

We are quite hopeful to move further with dramatic progress in the coming years,” Kogure observed. Yusen Logistics is targetting three times of the current volume to be obtained in the upcoming three years.

graduate from Kobe University Kongure started his career as captain of an ocean going vessel. He also worked as sales manager of chartering/operation and logistics manager of 3PL services. He joined Yusen Logistics Singapore as director. Later, Kogure was appointed as director of NYK Logistics Japan and managing director of Yusen Logistics India.

“My primary focus will be to further build the reputation of the company as well as establishing it as a balanced 3PL service provider. Standardisation of service module, strong network of offices in India, diversification of products and services and nurturing of smart workforce and their proper development, through timely training and exposure will be the areas that I will concentrate on,” said Kogure.

52 cargotalk February 2012

Masaki Kogure

According to the new president, the future of Indian market is very bright.

“Our global head quarter and regional head quarter has been focussing on Indian market as one of the potential markets in

Commenting on the recently signed Comprehensive Economic Partnership Agreement (CEPA) between India and Japan and its impact on India-Japan trade lane Kogure viewed that CEPA is only one of the various tools adopted by both the governments to improve business atmosphere.

“With the Delhi Mumbai Industrial Corridor (DMIC) in progress, lots of Japanese companies are eyeing the Indian market with benefit granted at their doorsteps by the Indian Government,” he emphasised. www.cargotalk.in

Trade Opportunities Bilateral Trade

Trade between India and Japan Government of India sets US$ 25 billion target by 2014

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The signing of CEPA in 2011 began a new chapter in the economic partnership, unlocking the true potential of the trade between India and Japan.

Yoshihiko Noda the Prime Minister of Japan during his recent visit to India maintained that the year 2011 was a watershed year in the relations of the two countries. CT Bureau he Prime Minister of Japan stated that CEPA will further deepen the economic engagement in terms of trade in goods, services and

the bilateral trade is likely to increase substantially. He expressed hope that the target of US$ 25 billion by 2014 will be achieved during the specified period. The bilateral trade between India and Japan

Sharma expressed that over the next couple of decades, India will see massive expansion in terms of infrastructure.

In the coming five years itself, the Government of India has targetted to

Anand Sharma addressing the Business Luncheon Meeting, organised by CII, FICCI and ASSOCHAM in New Delhi The Prime Minister of Japan (extreme right), Yoshihiko Noda is also seen

investment; contributing immensely to mutual prosperity. “Japan is an invaluable and strategic partner in the process of India’s development. India-Japan has to play major role in the globally changing economic landscape,” he added.

Anand Sharma, Minister for Commerce, Industry & Textiles, Government of India, in his address to the business delegation led by the Prime Minister of Japan maintaied that due to CEPA’S coming into force,

during the year 2009-10 was US$ 10.36 billion. The bilateral trade during the year 2010-11 reached to US$ 13.823.

Providing an update about the Delhi-Mumbai Industrial Corridor the Commerce Minister said that the DelhiMumbai Industrial Corridor envisaged investment of US$ 100 billion and the Government of India has moved from the stage of planning and design to the stage of implementation.

invest over a trillion dollars in creating capacities of infrastructure which will further catalyse India’s economic growth.

India has a structured energy dialogue with Japan which seeks to promote a structured cooperation in this sector.

Sharma also underlined that in the field of agro-processing, India aims to double its food processing capabilities in the next five years. The country will establish 64 fully equipped Agro Processing Zones and Food Parks. cargotalk

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On the Move New Appointments

Patrick Mascarenhas

cargo sales manager Emirates SkyCargo Patrick Mascarenhas has been appointed as the cargo sales manager, key accounts in Mumbai. He will take the responsibility to manage and service key accounts as well as global partners across India and also assist in planning and strategising development of Emirates Cargo across India. Mascarenhas has been with Emirates SkyCargo for more than 15 years.

He started his stint in operations and then moved to sales in 2003. During his tenure Mascarenhas was working as a cargo sales manager of Maharashtra and Goa region where he was responsible for sales and business development for the region.

Dr. Mohammad Ali Seiraffi

vice president Lufthansa Cargo Dr. Mohammad Ali Seiraffi has taken over as the vice president on January 1, 2012, to lead Lufthansa’s Frankfurt logistics base, Lufthansa Cargo Center (LCC). Dr. Seiraffi, with a PhD in Engineering, has been a member of Lufthansa cargo’s management team since 2002.

Previously, he was the head of handling cargo in Munich and Leipzig, the airline’s two other major hubs along with Frankfurt. From 2004 to 2008, he was managing director of Jettainer GmbH, the globally active specialist in ULD management and a subsidiary of Lufthansa Cargo.

Tarun Sethi

new cargo manager Cathay Pacific Airways

Tarun Sethi has been appointed as the new cargo manager – Karnataka and Andhra Pradesh. In his new position Sethi will oversee cargo sales and operations for Cathay Pacific and its sister airline Dragonair in this region. Sethi joined Cathay Pacific as cargo manager – Karnataka in 2008 before moving to Mumbai as cargo manager- Western India in 2009.

Sethi began his career in 1991 in Bengaluru working for Express Kargo Forwarders as an apprentice.

He moved onto working for the GSA and GHA of Lufthansa Cargo (Bobba Aviation Services) for close to 10 years.

Punitha Edwankar

PR & Loyalty Manager Cathay Pacific Airways Punitha Edwankar has been appointed as assistant PR & Loyalty Manager. She had joined the airline in June 2008 as a customer sales agent in the reservations and ticketing department. Her total work experience has been around five years.

Christopher Fordyce

commercial manager British Airways Christopher Fordyce has taken over as regional commercial manager - South Asia. He will be based at the airline’s South Asia headquarters in Gurgaon, Haryana. Fordyce will be responsible for all sales and commercial activity for the region. Prior to this, he has held the position of commercial project manager in IAG, the parent company of British Airways and Iberia. He began his career with British Airways in 2007 and has worked in many of the airline’s key areas.

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www.cargotalk.in

National News New Launch / Celebration

DHL deploys

new generation trucks on Indian roads

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HL has announced an updation to its transport fleet by introducing stateof-the-art, new generation, 40 tonner Mahindra Navistar vehicles in India. The new fleet will be used for customer specific projects and products to be transported between a network of national warehouses and transport hubs that DHL Supply Chain is building to support growth in India. The first of these Build to Suit (BTS) warehouses, being constructed in accordance with DHL Supply Chain’s global quality standards, will be operational by the end of February 2012 in Bhiwandi, Mumbai.

The upgraded transport fleet will support in connecting these

BTS warehouses to the various transport hubs across the country.

Commenting on the new launch Vikas Anand, chief operating officer, DHL Supply Chain said that the deployment of new generation trucks was in line with the company’s strategy to bolster substantial growth in India. “With the introduction of these vehicles we expect to bring in better operating efficiency, reduce time and focus on safe and secure delivery within agreed standard transit times,” he added. The new modernised fleet will

also help reduce carbon emissions and improve fuel efficiencies, an integral part of the Deutsche. DHL’s GoGreen strategy has a target of improving the company’s carbon efficiency worldwide by 30 per cent by 2020. Additionally, on long hauls these vehicles are expected to increase capacity and reduce cost per unit.

Ocean Gate Container Terminals

LCL celebrates 1st anniversary of the CFS

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cean Gate Container Terminals, a joint venture initiative by LCL. Logistix India, celebrated its first anniversary on January 13

Unni Nair

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in Mumbai.

Unni Nair chairman, LCL while welcoming the guests said it was a special day to celebrate the first anniversary.

“Ocean Gate is one of the chains of CFS to facilitate world class services to the exim trade throughout the country,” he said.

Nair also elaborated on the plans of the company regarding setting up of such state-of-the-art facilities in Southeast

India, which is coming up and expected be ready in the next few months. He hoped that on completion, Ocean Gate will be positioned as a national player in the CFS segment. The company felicitated key customers, carriers and service providers at the well-attended evening function. www.cargotalk.in

Products Display New Launches

Honeywell introduces Vuquest 3310g to scan any kind of bar code

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oneywell recently announced the availability of the Vuquest 3310g, a powerful area-imaging scanner housed in a sleek and compact shell. The device combines aggressive scanning of virtually any bar code, even on highly reflective surfaces such as mobile phone screens, with a stylish design that blends seamlessly across a variety of retail environments.

The next generation Vuquest 3310g is a direct replacement for Honeywell’s Vuquest 4980. It delivers exceptional bar code scanning and digital image capture, plus the integration of industry-leading Adaptus™ Imaging Technology 6.0. According to

the company sources, the newly improved Vuquest 3310g also incorporates reduced illumination that minimises the annoyance often associated with the illumination used in area-imaging scanners, without sacrificing scan performance.

The sources also asserted that designed for versatility, Vuquest 3310g can be quickly and easily installed in Original Equipment Manufacturer (OEM) kiosks or price checking systems. The device is also ideal for use in space constrained environments, including in law enforcement vehicles for e-citations, at airline gates for passenger boarding and in specialty retail stores for under-the-counterpoint-of-sale scanning. Within the light

industrial sector, Vuquest 3310g can be used in electronics and semiconductor manufacturing done on manual assembly lines or slow moving conveyors.

For enhanced product stability and a longer lifecycle, the Vuquest 3310g is built around a custom sensor optimised specifically for bar code reading. This custom sensor delivers improved scanning aggressiveness and supply chain stability, as the sensor is manufactured specifically for Honeywell scanning products.

JMD Cranes

eyeing logistics industry

MD Cranes is a crane hiring company based in Gurgaon in Haryana. According to Pankaj Kalra, the spokesperson for the company though presently it caters to real estate sector, the company

is fully prepared to meet the demand from logistics sector too.

JMD Cranes is able to offer both ultra-modern cranes as well as trained manpower to oversee the logistics

operations. “As a crane rental company we are here to lend a hand with any lifting job. We provide cranes for both short as well as long term hire,” informed Kalra.

JMD Cranes include Hydraulic Telescopic Cranes (20-150 tonne capacity), Crawler Cranes (20-150 tonne) and Hydras (Escorts, ACE), 10 tonne, 12 tonne, 14 tonne and 15 tonne capacity are also available.

Grove Crane TM870 E on rental basis • • • • 58 cargotalk February 2012

Crane Capacity: 70 metric tonne crane Crane Model: Grove TM 870 E Boom Length: 34.7m boom Fly Jib: 9.8m www.cargotalk.in