Cargotalk March 14 by Ashish Chakraborty

Cargotalk

South Asiaâ&#x20AC;&#x2122;s Leading Cargo Monthly

March 2014

RNI No.: DELENG/2003/10642 Date of Publication: 22/2/2014

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Cargo handling procedures How to streamline it

editorial

Cargotalk Editor SanJeet

Sr. Assistant Editor Ratan Kumar Paul Sub Editor SHUBHI TANDON Asst. Vice President Gunjan Sabikhi Deputy General Manager Harshal Ashar

Doing away with procedural hassles

Regional Head: North & West shiv kumar Assistant Manager: West Roland Dias Sr. Marketing Co-ordinator Gaganpreet Kaur

he air cargo industry in India is poised to leap forward. The projections and initiatives suggest that the country has immense potential to position itself as one of the attractive hubs, in respect of manufacturing and distributions. However, the country has to take some drastic steps to make the entire air cargo supply chain, smooth and hassle-free. Regulations have to be simplified with a trade-friendly mindset. There should be a collective and collaborative responsibility for everyone to do away with the procedural hassles. At the operational level, the industry stakeholders may adopt some pragmatic steps for mutual benefit. Industry experts say, there are a number of procedures which are the best and are implemented in some international airports. However, it is not easy to implement them on another international airport within India. Under these circumstances, the Ministry of Civil Aviation and Custom Board should have an open session with the trade members and implement the same by way of notification. For instance, the generation of shipping bill by customs which is later handed over to carriers is not required and there should be a minimum number of physical sets of documents for customs. Moreover, very less handling agents are required at certain international airports in India. It is also suggested that there should be Document and Supervision Services to SanJeet Editor

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Design ruchi sinha Photo Journalist simran kaur Advertisement Designer Vikas Mandotia, Nitin Kumar Aarushi Agrawal

manage all the documentation on behalf of airlines, including management of counters and back office support. For import cargo, delivery should be within four hours from the arrival of an aircraft. For export cargo, acceptance and loading should be within four hours from ETD for RFC AWBs. Dwell time is the cumulative result of various factors and Customs clearance plays a crucial part in this regard. In India, Customs introduced the EDI in 1997. However, we are still dealing with manual interventions as our mindset is more on policing rather than on trust based acceptance. Industry stakeholders firmly believe that the country should create a proper interlinked EDI platform capable of handling cargo without any human involvement. Efforts should also be made to move to a complete and comprehensive mode of safe, secure data transfer that can be shared by the different players of the air logistic chain. In addition, a comprehensive skill development programme has to be initiated jointly by the industry and the government to adopt modern methods of cargo handling procedures.

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Contents March 2014

National News

Academic Institutions 20 I Infosys and USC partner for Center on supply chain management

President, DACAAI

40 I IIMM Chandigarh

SECTORS

8 I Arvind Nayak takes over as DHL Supply Chain to open new facilities at Tier-I cities Industry Events 10 I Pharma Shippers’ Forum pushes for information sharing Strenghtening aviation security for air cargo

12 I Safexpress unveils ‘Horn Please’ book on trucking in India

International news 14 I e-Award for cargo handlers by Lufthansa IATA welcomes e-AWB initiatives from forwarders Emirates wins Top Cargo Handling Airline Award in Cochin for 2013 Success & Achievements 16 I ACAAI President felicitated by Finance Minister Shirish Gariba, CIO DIESL voted among Top 50 CIOs

International Airlines

17 I Etihad Airways to start

Abu Dhabi-Jaipur services from April 2014

Logistics Services 18 I Harpreet Singh MalhotraMD, Tiger Logistics 6 i cargotalk i march 2014

celebrates 29th Annual Day

Family Album 41 I ACCB Annual Ball sees an increase in attendees

42 I Celebi Cargo Terminal

celebrates 4 years of operation

44 I Aviation Conference on Security

Shipping & Ports 46 I DP World Chennai launches Chennai Colombo Gulf service Adani Petronet Dahej Port handles longest project cargo Shashi Kiran Shetty conferred with ‘Business Leader of the Year’ award International Airport 48 I IGI Airport completes 8 years of EDI operations

24 I Cover story

Cargo Handling Procedures

How to streamline it

The cargo handling procedures in India, is an area of serious concern in the context of the end-to-end logistics management. During the last couple of years, apart from the initiatives taken by the government at the policy level, ground handling and terminal operator companies, have taken some remarkable initiatives to streamline the system. However, there is still a long way to go for improving them in India. In this issue Cargotalk highlights some key developments, challenges and recommendations for air cargo handling procedures.

COLUMNS Lead Story 30 I Shortage of Skilled Manpower: The industry initiatives Guest Column 50 I Indian Aviation Academy: Lack of skilled manpower

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National News News in Brief

Arvind Nayak takes over as President, DACAAI

Arvind Nayak President, DACAAI

he recently held Annual General meeting of the Domestic Air Cargo Agents Association of India (DACAAI) has elected its new managing committee for 201415. Arvind Nayak has been elected as President for the second time. He was the founder President of the association. Other office bearers are Suraj Aggarwal - Vice President, Amit Bajaj - General Secretary, Sanjay Aggarwal - Joint Secretary and Ravijeet Sherawat-Treasurer. The Executive Body members include Gaurav Ghuwalewala (Immediate Past President), Hari Nair, Raj Kumar Gosh, Inderjeet Sherawat, Dinesh Digga, Amit Singh, Ismail Khan, Sanjay Khanna and Sajjan Kumar. The AGM also discussed the Road Map for 2014-15 that focussed on training and world standard work procedure for the domestic air cargo agents in India. The AGM also decided that the DACAAI Convention will be held in Delhi in August, 2014. In this year, the association will organise more training programs in association with airlines on DGR awareness and IATA-certified DGR programmes. In addition, efforts will be made in developing Domestic Cargo Operations Training Programme. Inter-member Cricket Matches called ‘DACAAI Cricket League’ and ‘Member International Study Tour’ will also be organised this year, for greater exposure to DACAAI members.

DHL Supply Chain to open new facilities in Tier-I cities

D Vikas Anand Managing Director DHL Supply Chain India

HL Supply Chain has announced additional new investment in its important business in India. Since its recent announcement to invest `685 crores (USD 110.5 million) to strengthen logistics infrastructure in India, the company has moved swiftly to execute these investments by adding one million sq ft of warehousing space with three multi-user sites in Mumbai, Pune and Gurgaon. Plans are also on track to open additional facilities in Tier 1 cities this year. “According to recent research, the 3PL market in India is growing at a faster pace than its GDP due to increased outsourcing. It will account for 13 per cent of the total logistics market in 2015, up from 6 per cent in 2008,” said Vikas Anand, Managing Director, DHL Supply Chain India.

DIPP launches integrated payment gateway

he Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry, recently announced the launch of the second phase of eBiz platform along with two DIPP services and an integrated payment gateway. The eBiz project is one of the integrated mission mode projects under the National eGovernance Plan of the Government of India. The project aims at transforming the business environment in the country by providing efficient, convenient, transparent and integrated electronic services to investors, industries and businesses with of information on forms & procedures, licenses, permits, registrations, approvals, clearances, permissions, reporting, filing, payments and compliances throughout the life-cycle of an industry or business entity. The first phase of the eBiz portal, comprising information on forms and procedures, was earlier launched by the Anand Sharma, Union Minister of Commerce & Industry, at the CII Partnership Summit in Agra on January 28, 2013.

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Industry Events Air Cargo

Strenghtening aviation security for air cargo

ith the complexity of the aviation security issue, various institutions like German University of Applied Sciences Frankfurt (FH FFM) and Centre for Aviation Studies of University of Petroleum and Energy Studies (UPES) are taking special initiatives in India for creating awareness about their programmes among the trade practitioners. Recently, they organised the second Aviation Conference at the Leela Palace Hotel, Mumbai on ‘Aviation Security: Current Threats and Challenges’. The Conference was attended by a large number of industry stakeholders, students of the MBA Aviation Management Programme. “The main objective of our programme is to strengthen the booming aviation sector

by educating highly qualified employees. One educational measure sponsored by the European Union is our MBA Aviation Management programme that we have launched in Delhi, Mumbai and Bengaluru with over 50 Indian students.”, said Dr. Yvonne Ziegler, Programme Director of EU-India Aviation project and Professor at FH FFM. The conference was addressed by Sanjay Karve, Director - Civil Aviation, Government of Maharashtra, Dr. João Cravinho, Ambassador of the European Union to India and Prof. K C Gandhi, Head of Centre for Aviation Studies – UPES, Peter Andres, Vice President Corporate Security, Deutsche Lufthansa, Kapil Kaul, CEO, India

Pharma T Shippers’ Forum pushes for information sharing The Pharma Shippers’ Forum, which was recently organised by Amsterdam Airport Schiphol in Mumbai witnessed 40 leading pharma shippers, together with representatives of logistics service providers, cargo handlers, airports, airlines and regulators. 10 i cargotalk i march 2014

& ME, CAPA, Manoj Singh, Vice President Cargo, MIAL and David Mann, Aviation Security Manager Asia-Pacific & Middle East of Lufthansa Cargo. Dorothy Reimold, Assistant Director of IATA joined the event on video from Washington DC. “IATA, in conjunction with stakeholders around the world, are working on to enhance passenger and cargo security, optimise efficiency and improve the passenger experience,” she underlined. Cyrus J. Guzder, Chairman, Dachser India, moderated the panel discussion on “What will be the impact of the new security requirements for air cargo and mail destined for the EU (ACC3) on Indian Airports and Airlines?”

he forum unveiled many of the problems and concerns facing India’s multi-billion dollar pharma industry as it steps up its export drive. Speaking at the forum, Ryan Viegas, VP Supply Chain & Procurement, Watson Pharma, pharmaceutical is India’s third biggest industry, employing 350,000 people in 10,000 companies. He added that India has the largest number of FDA-approved sites outside the USA, and that the sector is growing at 20 per cent per annum. The event that followed the popular ‘Schiphol Format’ and was moderated by Enno Osinga, Sr VP, Schiphol Cargo.

often extreme difference between climates at origin and destination.

The Pharma Shippers’ Forum discussed many challenges including danger of temperature excursions rendering medicines ineffective; the need to secure supply chains from counterfeit products; the lack of transparent pricing from forwarders; and the

According to pharma handlers, the industry needs a running document from the origin up to the destination to control the process. It is important because if something goes wrong, the handlers can see where it went wrong.

At this event, one airline representative spoke of the challenges faced by the airlines themselves, in selecting handling partners with the resources and correct procedures to handle temperature-controlled shipments. “There is no one standard. All the forwarders, shippers, airlines and handlers are busy designing their own, and they can be conflicting. The only way out of this impasse is for everyone to cooperate and seek a single solution that is uniform throughout the supply chain.”

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National News Logistics Services

Safexpress unveils ‘Horn Please’ book on trucking in India

Safexpress has taken a pioneering initiative by publishing a coffee table book titled ‘Horn Please-Trucking in India’ to highlight the hardship faced by the Indian trucking industry and the drivers— the backbone of this sector. It is expected that this book with its fascinating appeal through fabulous pictorials will be successful to sensitise the entire industry and the common people at large to change their perception of the beleaguered industry. Divya informed that the book discussed the daily difficulties encountered by the truck drivers who bear the brunt of administrative and police officers, besides the general public. “We have featured their small indulgences in terms of their favourite food at their local dhabas, their little recreational activities like playing cards or smoking an occasional beedi, their struggle against AIDS, hygiene and sanitation issues, and much more,” Divya maintained.

he coffee table book was unveiled by its authors Pawan Jain, CMD, Safexpress and Divya Jain, CEO, Safeducate (a firm which specialises in supply chain & logistics training), on February 15, at the Delhi World Book Fair 2014. Commenting on the innovative steps, Pawan said, “The story is simple to bring to light the beauty, the excitement and the soul of trucking, and how it plays a very vital part in our everyday lives, whether we realise it or not. I have spent my entire professional life working amidst and loving an industry most would find not-so-fascinating. The truck drivers and trucks themselves are easily associated with accidents, drunk driving, traffic jams, pollution and even AIDS. However, people seldom give thought to the larger-than-life role trucking plays in India.” Speaking to Cargotalk, Divya informed that the book captured every aspect of the trucking sector meticulously and the lives of drivers on road, from every nook and corner of the country. There were tremendous 12 i cargotalk i march 2014

efforts from the authors to highlight the ground reality. “It took about four years to complete the task. The book also sends socio-economic messages from drivers’ conscience,” she said. “We are trying to send the message to our society that truck drivers are not less than any celebrity. They deserve full respect as we do for soldiers or pilots. At the same time we are taking special initiatives to enhance their education and skill,” she added.

The book captured every aspect of the trucking sector meticulously and the lives of drivers on road, from every nook and corner of the country. There were tremendous efforts from the authors to highlight the ground reality

“Indian truck is a very essential part of our lives. The Indian truck is a very integral part of celebrations and sorrows alike, playing its role in the Ganesh Visarjan in Mumbai and Durga Puja in Kolkata, as well as doubling up as a hearse for the death of leaders of the nation (Mahatma Gandhi, for example),” underlined Pawan. The same has been commendably presented in the book. Working with a team of designers, internationally famed photo-editors and photo-enthusiasts, the authors have together created this remarkable coffee table book and, in fact, created a new history of Indian trucking and logistics industry. “This book is a homage to the Indian Truck driver - that unknown face who traverses the complex geographies of India, day in and day out, negotiating the troubled conditions of India, bringing us food, basic amenities, luxury goods and all we consume, right to our doorsteps, yet remaining anonymous that we don’t even know him nor do we understand him. Hopefully this book will help us all appreciate and understand the community of lakhs of truck drivers who form the foundation of the entire Indian economy,” concluded Pawan. www.cargotalk.in

International News Success & Achievements

e-Award for cargo handlers by Lufthansa

t its recently held two-day conference titled ‘Lufthansa Cargo in Dialogue’, more than 200 logistics industry representatives were present to discuss the digitisation of air freight. At the event, the airline presented awards to Ipsen Logistics, Kuehne + Nagel, MT Logistik, SDV Geis and Quick Cargo Service.

Speaking on the occasion, Dr. Andreas Otto, Board Member Products and Sales, Lufthansa Cargo said that systematic digitisation of the air freight business and further quality improvements are right at the top of Lufthansa Cargo’s 2014 agenda. “We are collaborating with our customers to ensure that goods find their way through the complex supply chain even faster, even more p J. Florian Pfaff, Vice President Area efficiently and with even greater Management Germany, Lufthansa Cargo reliability,” added Otto. In (right) compliments Dieter Haltmayer, CEO, addition to significant investment Quick Cargo Service in a brand new aircraft and state-of-the-art logistics infrastructure, the major expansion of electronic processes is a key element in the ‘Lufthansa Cargo 2020’ future programme. The Lufthansa subsidiary invited its customers to take part in an ‘e-Award’ for the first time last year. It is aimed at further supporting the rapid expansion of digital processes between forwarders and airlines.

IATA welcomes e-AWB initiatives from forwarders

msan Logistics, a leading Turkish independent freight forwarder, has become one of the first three logistics providers in Turkey to complete full e-AWB shipments in association with Worldwide Information Network (WIN) connectivity platform. Both IATA and Turkish Airlines have commended this important achievement as a significant step forward for SME forwarders. As an pioneering initiative, Omsan used a single platform (WIN) for the entire process, from joining the IATA Multilateral e-AWB Agreement, to approval and then electronically transmitting all relevant data and documents. Commenting on this initiative, Des Vertannes, Global Head of Cargo, IATA said, “The experience of Omsan demonstrates that for SME forwarders the efficiencies and process benefits of joining the Multilateral e-AWB Agreement and adopting the e-AWB are real and tangible.” According to John DeBenedette, Managing Director, WIN, Omsan’s early success can be replicated across the independent freight forwarding sector.

Emirates wins Top Cargo Handling Airline Award in Cochin for 2013

mirates has recently been declared the ‘Top Cargo Handling Airline of Cochin 2013’. V. M Dinesh, Cargo Manager in Kerala, Emirates accepted the award from the Chief Guest P.K. Hormis Tharakan, IPS (Retd.), former DGP (Kerala) and DG (RAW) at the event held in Kerala. Commenting on the achievement, Nabil Sultan, DSVP, Cargo, Emirates said that the award is a testimony of the unflagging efforts by the team to make Emirates SkyCargo a successful cargo airline in the India market. “We are delighted to win this year and I would like to congratulate the entire India team for the 14 i cargotalk i march 2014

constant effort they have put in to make this possible,” he said. The airline carries over 1,400 tonnes of weekly cargo combined from Chennai, Hyderabad, Bengaluru, Kochi, Thiruvananthapuram and Kozhikode. Additionally, it operates two weekly freighters with a capacity of over 200 tonnes payload on the Dubai-Mumbai-Dubai route as well as the Dubai-Chennai-Hong Kong-Dubai route. Overall, Emirates SkyCargo carried over 2 million tonnes of cargo inclusive of imports and exports in the calendar year 2013. www.cargotalk.in

Success & Achievements Recognition

ACAAI President felicitated by Finance Minister P. Chidambaram, Minister for Finance, Government of India awarded SL Sharma, as the President of the Air Cargo Agents Association of India (ACAAI) with ‘WCO Certificate of Merit’ at the International Customs Day 2014 function held on January 27, 2014 at FICCI Auditorium, New Delhi.

Shirish Gariba, CIO DIESL voted among Top 50 CIOs At the recently held ‘India Best 50 CIOs – 2013’ in Mumbai, Shirish Gariba, Chief Information Officer, Drive India Enterprise Solutions (DIESL) was voted among the Top 50 CIOs. India Best 50 CIOs – 2013, is a first of its kind initiative by CIO Association of India and Dell. The top 50 CIOs were selected for the honour of India’s Best CIOs – 2013 on the basis of an innovative selection criteria. Each CIO was asked

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to vote for three of his / her peers in order of ranking one to three. The CIOs voted for their peers whom they admire the most, having benefitted from them, in their respective careers and personal learning along with the criteria that CIOs were allowed to only nominate CIOs who were not members of their enterprise, its subsidiaries or associated business entities. Heads of IT and equivalents were allowed

to participate in the nomination process. Self-nominations were not permitted.

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International Airlines New Initiatives

Etihad Airways to start

Abu Dhabi-Jaipur services from April 2014 The 2013 performance figures of Etihad Cargo show that the airline carried a record 486,753 tonnes of freight and mail last year, up a staggering 32 per cent compared to 2012. In an interview with Cargotalk, David Kerr, Vice President, Cargo, Etihad Airways, talks about the airline’s strategy for 2014. Ratan Kr Paul

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ooking ahead in 2014, we’ll see double digit cargo capacity growth continue, as we take delivery of one Airbus A330-200 freighter, in addition to offering new bellyhold cargo capacity on the recently announced routes from Abu Dhabi to Los Angeles, Zurich, Dallas, Rome, Perth, Yerevan, Jaipur and Medina,” said Kerr. Commenting on the overall cargo market trends, Kerr maintained that Etihad’s view is broadly in line with that of IATA, which predicts sustained cargo growth till 2017, with the UAE being one of the largest international freight markets. “Our own cargo business continues to perform well, and we see that the future in this region and internationally is extremely positive,” Kerr added. According to Kerr, Etihad Cargo achieved a number of record milestones in 2013 and is now approaching a US$1 billion

business, representing approximately 20 per cent of Etihad Airways’ transport revenues. In 2013, the airline launched a new freighter route to Guangzhou in China; consolidated its bellyhold and maindeck cargo operations at Frankfurt International; took delivery of three new wide-body freighters; started a round-the-world Boeing 747-8 freighter service with its partner Atlas Air; launched its CargoConnect customer loyalty programme; and signed a contract with Jettainer for 250 ultra lightweight Unit Load Devices (ULDs). Kerr explained that Etihad Cargo signed partnerships with Singapore Airlines Cargo, Swissport and WFS, and became the first airline in the Gulf region to implement Cargo XML. The airline had a number of record breaking months in terms of tonnage carried. “India remains one of our most important markets and that’s reflected in the significant bellyhold and maindeck capability

India air cargo business is one of our top five markets and that’s reflected in the significant bellyhold and maindeck capability we continue to deploy. We will see a strong demand throughout 2014” David Kerr Vice President, Cargo, Etihad Airways

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Focus 2014 Etihad Cargo’s focus for 2014 is to build on the record tonnage success it had in 2013, offer cargo services to an even greater number of world destinations, increase frequencies on key cargo routes, and ultimately, continue to offer its customers choice and flexibility.

we continue to deploy. We look forward to working with our partner Jet Airways to find opportunities to create value for both our companies,” he shared. According to Kerr, the trade between India and the rest of the world is expanding rapidly. He added,“Indian air cargo business, which is one of our top five markets. We will continue to see strong demand throughout 2014.” The airline operates more than 70 passenger flights a week to nine Indian cities – Mumbai, New Delhi, Chennai, Kozhikode, Kochi, Trivandrum, Ahmedabad, Bangalore and Hyderabad – providing its cargo customers with significant bellyhold cargo capability to and from its Abu Dhabi hub. Jaipur will be added to that list from April 2014, connecting via Abu Dhabi to all corners of the globe. “Our commitment to Indian trade is also served by virtue of the fact that we continue to operate maindeck freighter capability to four Indian cities – Bangalore, Chennai, Mumbai and New Delhi, providing our customers with enhanced options for shipping large goods and larger quantities of goods, all over the world with us,” Kerr added. march 2014 i cargotalk i 17

Logistics Services New Initiatives

Tiger Logistics enters public equity market

ommenting on the new development, Malhotra maintained that raising finance from the market and increasing credibility is a major issue. “With this listing, it will help us to increase the credibility of the company in the market and give a message to the banks, to take the company more seriously. Along with this, there are various organisations that are 30-40 years old in the logistics industry, but still not listed. So, it will give us more advantage if we are going for a

Tiger Logistics has recently been enlisted with Bombay Stock Exchange (BSE) which paves the way for listing on the Bombay Stock Exchange, BSE SME platform. Speaking to Cargotalk, Harpreet Singh Malhotra, MD, Tiger Logistics informed that it is the first and the youngest logistics company to be listed on the BSE SME exchange. It is also the 10th logistics company in India to go public.

competitive bidding,” he explained. Malhotra also elaborated that getting the right kind of human resource was a big challenge for the company so far, but the listing of the company has removed this hindrance as well and increased credibility. “Now people from multinational companies are joining us as they know that this is a well-organised and credible company,” he explained. Meanwhile, after the dilution of 25 per cent of total stake of Tiger Logistics, it raised around `7.5 crore of capital. The funds are being utilised as per the company’s plan for the working capital. “We have entered in all the products and are expanding project business with a bigger team of professionals. The most interesting thing is that Tiger Logistics has successfully opened its new offices in some of the remote areas as well. We are now majorly focussing

on Southern domestic markets also,” Malhotra shared. Moreover, Tiger Logistics is also planning to open offices in South America in Brazil and Mexico. This will give advantage to its existing and potential customers to avail all logistics solutions under one roof. “In the coming days, we are sure that Tiger Logistics would be a pan India player with its presence in all segments ranging from normal containers to reefers, flexi tanks, road transports, break bulk and project cargos,” Malhotra added.

On Market Scenario In spite of the economic decline in the previous year, the logistics industry has been one of the industries gearing up to surge ahead. It has the huge potential to attract new players in the days to come. “There is a paucity of organised players in some of the emerging markets in India and overseas as well. There are still no players who can provide all logistics solutions under one roof and this is an attractive opportunity for the logistics organised companies, including Tiger Logistics, to expand its operation,” Malhotra said. In his opinion, automotive, retail, healthcare and manufacturing sectors, are some areas which majorly demand 3PL services to source and distribute their products. He also believes that the market is ready to provide new opportunities and the good thing about the logistics industry is that the 3PL market has given support to it. With the advent of FDI in retail sector and the government fostering the infrastructure sector, the 3PL service industry has seen major improvements and fresh demand. “However, there are larger parts of India still waiting for the government investment in the infrastructure sector which can further give the new heights to the logistics industry. In this journey of success, Tiger is ready to prove its sharp and spectacular presence on pan India basis,” Malhotra concluded.

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Skill Development Academic Institutions

Infosys and USC partner

for Center on supply chain management Infosys recently announced a partnership with the University of Southern California (USC), one of the world’s leading private research universities, to work closely with the Center of Global Supply Chain Management (CGSCM) at the University’s Marshall School of Business. Speaking to Cargotalk, Nick Vyas, Director, CGSCM said that India is a huge market for logistics and supply chain management and technology companies. Ratan Kr Paul

he Institute will focus on advancing global supply chain management through three core activities establishing a robust industry network, offering a variety of education programmes and performing advanced research.

The global supply chain space is seeing strong growth, with the United States alone spending nearly 10 per cent of its GDP on supply chain activities every year“ Nick Vyas Director, CGSCM

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According to him, Supply Chain Management is a growing field and accounts for $10 trillion or roughly 14 per cent of the Gross World Product. The United States alone will need over 1,000,000 qualified professionals in this field by 2016. USC Marshall’s CGSCM will offer the first globally integrated Master’s programme on supply chain management aligned to its mission of NEAR (Networking, Education and Advanced Research). “The global supply chain space is seeing strong growth, with the United States alone spending nearly 10 per cent of its GDP on supply chain activities every year. Capitalising upon the Center’s global network and industry experience, along with

The Institute will focus on advancing supply chain management by establishing a robust industry network, offering a variety of education programmes and performing advanced research www.cargotalk.in

the university’s renowned faculty, we hope to cultivate top talent and become the principal thought leader in the realm of global supply chain management,” said Vyas. The USC Marshall CGSCM will work closely with Infosys and other companies across the globe to bridge the existing gap between supply and demand for skilled executives, who can meet the growing and complex demands of the supply chain industry. According to Rakhi Makad, Industry Principal, Infosys and Programme Director from Infosys for USC Marshall CGSCM, the major challenges that the logistics and supply chain industry is facing are risk management, visibility, speed to explore new markets and accuracy in forecasting. By working closely with manufacturing companies around the world, Infosys has developed a unique insight into today’s highly complex supply chain system. “We also have our sights set on how companies will best manage and optimise their supply chains in the future,” she said. According to her, technology and skill development will play the greater role. “Mobile space and social network will also play a greater role,” she said. She also emphasised on the importance of setting up

Core Activities of CGSCM n As a founding member, Infosys in partnership with USC Marshall, will play a key role on the CGSCM board to design the Center’s charter of activities and its future growth n Infosys will contribute topics for advanced research and thought leadership papers n It will also coordinate with other CGSCM members including industry experts, organisations, trade bodies and local authorities, to conduct the Center’s activities n CGSCM’s multi-faceted programme comprises of a Master’s degree, specialised training courses and Six Sigma Certification classes for working executives n The Master’s programme, offered online and on campus, will include two experiential learning trips to key supply chain hubs n The Center will also host roundtable conferences, industry forums and panels, networking events and speaker series

We have our sights set on how companies will best manage and optimise their supply chains in the future” Rakhi Makad Industry Principal, Infosys and Programme Director, USC Marshall CGSCM

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n Additionally, it will conduct research on challenges faced by companies operating in and contributing to the supply chain space n CGSCM’s other partners include leading multinational corporations from various industries

CGSCM will work closely with Infosys and other companies across the globe to bridge the existing gap between supply and demand for skilled executives of a robust supply chain management system up to the rural area in India. The industry will have to understand the customers’ mindset. Vyas endorsed, “Challenge in India is infrastructure—both physical and soft version. The process and execution of policies need to be very fast. There should not be several tax structures,” he felt. CGSCM will offer students an opportunity to learn from the professors and business leaders and solve real business problems. “Our partnership with the USC Marshall School of Business will allow us to bring together some of the brightest minds spanning academia and the industry, to help shape the future of the industry,” she added.

The Marshall School of Business Ranked among the nation’s premier schools, USC Marshall is internationally recognised for its emphasis on entrepreneurship and innovation, social responsibility and pathbreaking research. Located in the heart of Los Angeles, one of the world’s leading business centers and the U.S. gateway to the Pacific Rim, Marshall offers its 5,700plus undergraduate and graduate students a unique world view and impressive global experiential opportunities.

About the Center USC Marshall Center for Global Supply Chain Management exists to connect the world through Global Supply Chain Management with Network, Education, and Advanced Research (NEAR). Capitalising upon its global network, industry experience and renowned faculty, USC Marshall is poised to become one of the top thought leaders in the realm of global supply chain management. As an industry leader in cultivating top business talent, the Center for Global Supply Chain Management aims to lead the effort to streamline efficiency and supply chain in global economy. march 2014 i cargotalk i 21

Cover Story Cargo Operations

Cargo Handling

Procedures How to streamline it

The cargo handling procedures in India, is an area of serious concern in the context of the end-to-end logistics management. During the last couple of years, apart from the initiatives taken by the government at the policy level, new private companies, viz, ground handling and terminal operator companies, have taken some remarkable initiatives to streamline the system. However, there is still a long way to go for improving them in India. In this issue, Cargotalk highlights some key developments, challenges and recommendations for air cargo handling procedures. Ratan Kr Paul 24 i cargotalk i march 2014

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t is often said that the air cargo handling procedure in India is not up to world standards. However, there is a serious debate on the definition of ‘world standard’. “How do you define ‘world standard’? Would a swanky building with an automated system be called world standard or a system which delivers to the customer’s expectation be called world standard? Can getting an ISO certification be termed as world standard? Or is it something that meets or exceeds some standards established by global expert groups? So there are different interpretations to the term world standard?”, said Radharamanan Panicker, CEO, CSC India. He firmly believes that there is no defined standard globally

against which the cargo handling methods or a facility can be measured yet. The IATA ground handling working group is now working on defining global standards for cargo handling. Panicker points out that India has its own set of problems that play the critical role against meeting global requirements. “We have difficulties in some airports in terms of inadequacy of infrastructure, lack of process and lack of trained human resources. When some of the elements are missing, it leads to customer dissatisfaction. Accordingly, even if ultimate service standard is of the highest order, the overall impact is unsatisfactory”, Panicker opined.

We have difficulties in airports in terms of inadequacy of infrastructure, lack of process and trained human resources” Radharamanan Panicker CEO, CSC India

www.cargotalk.in

march 2014 i cargotalk i 25

Cover Story Cargo Operations

The 24x7 customs clearance policy, along with simultaneous working by all the trade partners, has reduced the dwell times”

On paper, the cargo handling procedures are up to global standards. However, in ground reality, we are not there yet”

Overlapping roles of intermediaries and warehouse operators creates serious problems for the industry”

Rajesh Goel CEO, Celebi Delhi Cargo Terminal

Vipan Jain Head Bar India Cargo (NR) and Regional Manager, South Asia and Middle East, Lufthansa Cargo

Shankar Iyer Director-Cargo, South East Asia & Middle East, Swiss World Cargo

According to Rajesh Goel, CEO, Celebi Delhi Cargo Terminal, the current cargo handling procedures in India have been streamlined a lot as compared to the older days. However, the processing time for major export handling activities and import cargo clearance are far below the international standards. Earlier, restricted working hours for cargo clearance congested the cargo terminals. This led to piling up of cargo which put tremendous pressure on the capacity and cargo operations. However, the recently implemented 24x7 customs clearance, along with simultaneous working by all the trade partners has significantly reduced the dwell times.

we try to keep things very simple and not make it complicated. Aided by IT, we are slowly moving towards paperless freight in our terminal,” said Panicker. CSC has started hand-held terminals for data entry and messaging. Presently, the company is working on barcoding all the import cargo.

Goel informed that at the Celebi Terminal at the Delhi International Airport the dwell times have been visibly reduced and this can be attributed to simplification and streamlining of procedures and cooperation by related stakeholders. “There has been more automation in the terminals and increased adherence to e-freight initiatives.

Innovative Solutions Panicker was of the view that every organisation, every region, every country will have different business models depending on their local environment. But it is important to know and understand whether the three elements –infrastructure, process and people, are integrated and aligned to meet the expectations and requirements of the customer. “We work to ensure that there is a high degree of alignment between our infrastructure, process and people. We work on the airline SLA and aim to achieve all the goals despite difficulties. These are monitored by our quality teams. Furthermore, 26 i cargotalk i march 2014

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Recently, we have also been recognised by IATA as a 100 per cent e-freight terminal. However, there is still a lot to achieve to reach the levels of the international cargo hubs, where the dwell times are significantly lower,” he admitted. Recently Celebi introduced many value-added services that include Document & Supervision Services, Import Priority, Export Priority, Pharma Logistics, Transit Mail Sorting, Direct Flight Segregation/ Delivery and many others.

User’s Perspective The innovative ideas from service providers are commendable. But the question remains— that can the deliverables yield the desired results. “On paper, the cargo handling procedures are similar to the global standards. However, when it comes to ground realities we are not there yet. We (India) have ratified MC99 and entered it into force in 2009 as MC99 allows the use of electronic means in lieu of a paper air waybill for preserving the record of carriage. We are still lacking in replacing the paper with electronic means and EDI just works as back-up to paper,” said Vipan Jain, Head Bar India Cargo (NR) and Regional Manager, South Asia and Middle East, Lufthansa Cargo. Jain raised various issues pertaining to export and import shipment clearance. He pointed out that the Government of India took major trade initiative and introduced 24x7 clearance at main airports from customs side. However, the airlines still face a problem of underload of flights, whenever there are two or more consecutive holidays, including second Saturday. “I feel all the players do not have sufficient resources and so they would like to propose seven days working during the day to begin with followed by 24x7 working, once we are all prepared,” stated Jain. On the import front, amendments in the manifest or the arrival of shipments and part shipments due to last minute off-loading at the last point of entry is still a major bottleneck in the process, even though it is only two-three per cent. “A lot of time is spent by carriers and consolidators for amendments with customs and handling agents. We are in EDI mode for more than 18 years now. However, everything is still on paper, when it comes to permission from authorities,” Jain underlined. www.cargotalk.in

Keeping EDI apart, the physical infrastructure is not conducive either. “Major challenges include unrealistic infrastructure and sometimes even lack of vision. Overlapping roles of intermediaries and warehouse operators creates serious problems for the entire air cargo industry in the country,” maintained Shankar Iyer, Director-Cargo, South East Asia & Middle East, Swiss World Cargo. Bharat Thakkar, Immediate Past Presient, ACAAI, maintained that the Public Private Partnership (PPP) model was a turning point in the Indian history of economic growth especially to the ports and airports. As a result, at Green Field such as Bengaluru or Brown Field such as Delhi and Mumbai, significant changes have been brought in by PPP models. Unfortunately, there has been no remarkable progress in cargo handling methods. “We do agree that passengers should be given adequate facilities and priorities at the airports. But it should not be done grossly at the cost of and at the neglect of the cargo facilities,” he said. “The cargo handling procedures in India are far from world standard. The export dwell time at the metro ports is over 24 hours, whereas the world standard is less than 12 hours. We still have long waiting hours for the trucks before the cargo is off loaded. This is followed by a long process of cargo sitting in the examination area before it is moved to the bonded area even though only a small fraction of shipments are to be examined (Delhi being an exception in this respect). We still have many paper documents required to transact business between the forwarder, the custodian and the airline, which is increasing the transaction cost,” pointed out Cyrus Katgara, Partner, Jeena & Co. However, Umesh Tiwari, Chairman, Perfect Cargo Movers maintains that there are a lot of developments at the airport level thanks to the entry of private terminal operators. Though, there are some airports (e.g. Mumbai) still facing space constraints. In his opinion, the 24x7 working policy of Customs is also playing a very positive role for smooth handling of cargo and currently about 90 per cent export shipments are going on time.

We agree that passengers should be given priorities at the airports, but it should not be done at the cost of the cargo facilities” Bharat Thakkar Immediate Past Presient, ACAAI

Paper documents are still required to transact business between the forwarder, custodian and airline, which increases the transaction cost” Cyrus Katgara Partner, Jeena & Co

Interestingly, there are some significant developments in domestic air cargo handling. march 2014 i cargotalk i 27

Cover Story Cargo Operations

“There has been a drastic change in the handling of domestic air cargo. The handling has moved from small individual airlines warehouses to Common User Terminals. The IT infrastructure has improved immensely. The implementation of e-AWB by the airlines has eased the information and handling flows,” highlighted Amit Bajaj, General Secretary, DACAAI and Director, Mituj Marketing.

There are a lot of developments at the airport level thanks to the entry of private terminal operators” Umesh Tiwari Chairman, Perfect Cargo Movers

The implementation of e-AWB by the airlines has eased the information and handling flows” Amit Bajaj General Secretary, DACAAI and Director, Mituj Marketing

28 i cargotalk i march 2014

“We are heavily dependent on manpower for handling of cargo. Simple mechanisations like large base trolleys, movable conveyors, weigh bridges, large pallets X-ray machines, etc. are missing. CCTV monitoring is also lacking at most airports. The terminal operators and the airlines need to invest in mechanisation to justify the handling charges they are charging,” he added.

Recommendations According to Panicker, cargo has to become important in the minds of policy makers, the government and airport operators. It plays a large role in the economy of the region and city in which the airport is located. “If we have to move cargo to air mode of transport, we will have to make the entire air cargo supply chain cost-competitive versus sea mode of transport. It is a collaborative responsibility of everyone in the supply chain,” he observed. Panicker maintained that regulations have to be simplified and interpreted correctly and should be followed in same manner every where in the country. “There should be a clear-cut policy to enhance the efficiency of all the agencies working at the airports. Apart from Customs, several other agencies are also responsible for clearance of goods at airports and everybody should improve their processes for easy and fast clearance,” Goel added. He feels that the policies should be to improve efficiency through automated material handling system and IT system, for making paperless environment and e-freight with a collaborative approach. “We clearly need guidelines from the Ministry that wherever we have electronic transmissions, no physical paper is required. And, my first recommendation is to adopt the best practices of each airport in India and introduce them at other airports as well,” said Jain. He pointed out that the industry has seen number of procedures which are

the best, and of international standards. However, it is not easy to implement them on another international airport within India. “We would request the Ministry / Custom Board to have an open session with the trade members and implement the same by way of notification,” he appealed. Commenting on some recommendations on regular operational methods, Jain said that the responsibility of the export side counting of packages should lie with the handling agent and not the carrier or customs. Similarly, after customs clearance LEO, it should be the handling agent’s responsiblity to release goods to the carriers and not customs or CISF. However, random checks can always be made by regulatory authorities, instead of routine ones. He also advocated for early adoption of e-freight. “There should be a seamless movement from truck dock acceptance to aircraft and vice-versa. It should be facilitated with reasonable timelines, reduced documentation and procedural rigmaroles. Servicing should be by skilled, customer-oriented and eye to compliance personnel,” emphasised Iyer. “Reduce dwell time, improve efficiency, enhance facilities, provide better procedures and move over to a system-driven process,” endorsed Thakkar. He pointed out that the dwell time is the cumulative result of various factors, some are even before arrival of the aircraft. Primarily the triggering point for the dwell time is the filing of IGM or Import General Manifest with Customs. ACAAI has been advocating that this can be from the point of wheel-up of the aircraft at the origin airport (like followed in US and most of the EU/Japan/Korea). Thakkar also pointed out that timely handling of cargo from touchdown of the aircraft by the custodians plays a significant role in reducing dwell time. According to Thakkar, processing time of documents by Customs has come down in the past decade. But this is not sufficient to drastically bring down dwell time. “We need a new look at the entire Customs process which should be driven by systems. Nontraceability and damage to cargo increases dwell time and both are controllable, if proper system is in place and is monitored,” he said. He further pointed out one more challenge, which is the restricted / congested approach both inside and outside the airport terminals for vehicular movements. It slows www.cargotalk.in

down clearance process and increases dwell time. Katgara urged for standardisation of the process of seamless, paperless movement of cargo from forwarder to the bonded area at all airports. Only the shipments required for examinations should be recalled from the bonded area similar to what is being done in Delhi. “The transactions at the airport should be paperless and the dwell time at all airports should come down to 12 hours,” he said. Tiwari appealed that terminal operators have to be more careful about mishandling and missing of cargo. Cargo should not be loaded or sent without a manifest.

We should bring in mechanisms for interactions between shippers and terminal operators for the greater interest of the industry” Suman Dhaulta Managing Director, KVM Aircargo

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According to Bajaj, more common user terminals need to come up, for ease of handling of cargo. Infrastructure in B-class cities lacks this, even though the domestic cargo is growing. “To sustain this growth, we need to look at the infrastructure at the smaller cities urgently,” he recommended. In his opinion, to increase efficiency in handling cargo and to minimise breakages, the operators need to invest in handling equipment. There is a lack of basic

equipment like large base trolleys, weigh bridges, conveyors, etc. “On the IT side, the transparency is lacking. No stakeholder is willing to hold data transparently and define a SLA. There is a desperate need for transparency in the working of the stakeholders. We need to define SLAs for each agency which can be viewed transparently and reviewed on a regular basis,” he stressed. According to Suman Dhaulta, Managing Director, KVM Aircargo, there should be more job responsibilities from the private terminal operators. It is because of private investments and initiatives that the infrastructure has improved significantly. But there should be a skill enhancement to utilise the infrastructure optimally. There should be more facilities for handling temperature sensitive cargo and more truck docks for smoothening operations. “We should bring in some serious mechanisms for interactions between shippers and terminal operators for the greater interest of the industry and the country’s economy,” she concluded.

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Lead Story Viewpoint

Shortage of Skilled Manpower The industry initiatives

According to a recent study by the National Skill Development Corporation, the global annual logistics spend is valued at about USD 3.5 trillion. The annual logistics cost internationally varies between 9 per cent and 20 per cent of the GDP. In India, it is about 13-14 per cent of the GDP. However, with skillful handling and management it may significantly reduce. Unfortunately, the industry is still plagued by a huge shortage of skilled manpower. Cargotalk presents the industryâ&#x20AC;&#x2122;s perspective and the initiatives taken to address it. Ratan Kr Paul

he study reveals that the logistics market is the largest in the world and accounts for one-third of the world logistics market. The global logistics industry has registered a significant growth in the last decade, wherein the big driver has been the emergence of Third Party Logistics (3PL) and Fourth Party Logistics (4PL) players in the industry who are expected to play a much more important role in the years to come.

The current level of skills of the people in the sector does not meet the growing demands of the industryâ&#x20AC;? Malcolm Monteiro SVP & Area Director, South Asia, DHL Express

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The global logistics industry is characterised by high costs of operations, low margins, shortage of talent, infrastructural bottlenecks, alongside increasing demand from clients for providing one-stop solutions to all their needs and for investing in progressive technology. All these factors will further decrease the margins involved in this industry and fasten the process of consolidation in the industry through acquisitions, mergers and alliances.

The Indian Scenario

Malcolm Monteiro, SVP & Area Director, South Asia, DHL Express, believes that the Indian logistics sector is on a growth trajectory, driven by an increase in domestic consumption and increasing global trade. India is fast becoming a global manufacturing and sourcing hub for many industries. Other global practices such as e-commerce are also driving demand, compelling businesses to outsource distribution and logistics requirements to specialised service providers. This is contributing to an increase in the need of integrated solution providers. However, manpower training for the sector has not kept pace with the changes, resulting in severe skills shortage. Logistics providers today are expected to provide complete end-to-end logistical support throughout the supply chain cycle of a business, cutting down costs and lead time. â&#x20AC;&#x153;Thus the skills and expertise required within www.cargotalk.in

the industry have grown with the advent of sophisticated supply chain management. The current level of expertise and management skills of the professionals in the sector does not meet the growing demands of the industry,” said Monteiro. Unni Nair, Chairman, LCL Logistix (India) explained that the logistics industry in India is facing a talent crunch along with the paucity of skilled manpower. Perhaps because of this, the industry has not received an industry status yet, although it is of a massive size. Also lack of customised courses and training programmes introduced at the institutes and varsities aggravated the problem. “There are very few designated institutes (most of them are private) offering customised industry specific logistics and supply chain management programs/ courses,” he pointed out. Today, the crowd of premier institution heads towards taking a consulting job or joining a leading consulting firm handling logistics and supply chain as assignments, but does not jump into the mainstream logistic and supply chain industry. “Also, the graduates would happily join diversified conglomerates, holding an in-house logistics and supply chain arm, rather than them starting a venture in the typical logistic and supply chain industry,” he added. In his opinion, there is a lack/absence of recognised industrial training institutes specifically for imparting training towards operating and handling modern, heavy and ultra-heavy machines/equipment’s used in the logistics and transport industry.

There is a lack of recognised industrial training institutes for imparting training towards handling modern equipments used in the logistics industry A less attractive industry

According to Vineet Kanaujia, Vice President-Marketing, Safexpress, the logistics sector in India is huge and contributes 10 per cent to the country’s GDP. However, it is still an unrecognised industry and hence, an underrated sector, though its role is massive in strengthening the backbone of www.cargotalk.in

the country’s economy. Accordingly, this segment is not attractive enough to woo new talents resulting in acute shortage of skilled manpower. He observed that, despite multiple challenges and economic slowdown prevailing in the market, the industry has been witnessing six to seven per cent yearon-year growth. Paradoxically, this sunrise industry remains unsuccessful to attract qualified people. There is a serious problem at the bottom level too. Because of the fact that the logistics industry in India is completely unorganised and has a negative image, drivers and warehouse workers are also reluctant to join the logistics industry. For them, the financial benefits from this sector are not viable vis-à-vis other industry sectors. Questioned on his inclination and long association with this segment, the young and highly qualified Kanaujia said, “I saw enough potential in this industry and fortunately got an opportunity to work with a company, which is the leader in this space.” He maintained that though the industry is not glamorous yet, the things are changing for sure. According to him, there are indications many young and well-qualified executives are joining the industry. Srikanth Rapaka, Head – Human Resource & Administration, DIESL, finds two main reasons behind the shortage of skilled manpower. “Logistics industry is the least attractive industry for new graduates. Moreover, considering that this is still an emerging industry, there is a serious lack of technical courses available, similar to the ITI, which are more focussed towards the manufacturing sector, resulting in nonavailability of skilled or trained manpower for the logistics sector. Absence of vocational courses also adds to the challenges the industry is facing currently,” he said. In Rapaka’s opinion, the approach has to be to ‘develop skilled manpower within the industry’. “Jobs are tough at a warehouse and are not so attractive opportunities. However, the deliverables are not rocket science. Companies need to adopt certain methods similar to that of direct sales companies. Select young undergraduates or graduates and conduct an in-house training/ induction program to equip them with the

There are very few designated institutes offering industry specific logistics and supply chain management programs” Unni Nair Chairman, LCL Logistix (India)

Logistics is still an unrecognised industry even though it plays a massive role in strengthening the country’s economy” Vineet Kanaujia Vice President-Marketing, Safexpress

march 2014 i cargotalk i 31

Lead Story Viewpoint

required skills,” he stressed. While there are already certain 3PL companies who have tied up with external training & placement firms established as a partner of National Skill Development Corporation, however, the supply has to match the requirement. “Under the current circumstances, this is the best available source of skilled/trained manpower for the 3PL industry. On a longer term basis, companies should create a vocational training atmosphere within the organisation, similar to the manufacturing sector,” he added.

Absence of vocational courses adds to the challenges the industry is facing currently” Srikanth Rapaka Head – Human Resource & Administration, DIESL

Most of the young, educated people are not aware of the logistics trade as an important part of the economy’s growth” Ram Tiwari Director Marketing, Shine Logistics

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Need to be recognised first

Ram Tiwari, Director Marketing, Shine Logistics highlighted that everywhere in the world and in all the developed countries, domestic and international logistics sector has been recognised as an essential tools, part of the country’s economy growth. Without proper and timely logistics/supply chain services, none of the industries can grow - whether its domestic or international markets to produce and deliver new products in market. “Unfortunately, in India, the logistics sector (mainly international logistics/supply chain) has not yet been given industrial status to promote and support the logistics industries. Most of the young, educated people are not aware of or do not acknowledge the cargo/logistics trade as an important part of the economy’s growth as there is no such government institution to educate the peoples about logistics industries,” he said. Tiwari emphatically said that the first task of the industry should be to pursue the central government to recognise cargo and logistics as one of the important industries. “We should urge the government to highlight the opportunities of logistics industry to the upcoming young generations by establishing an institute and offering them job opportunities in the cargo industry. It will help to get educated and trained personnel for our industries,” said Tiwari.

Industry Initiatives “At DHL, motivating our people is fundamental and we invest in them as our most valuable assets. We invest in our people to strengthen organisational capability and develop a talented global workforce that gets results the first time so that we have the right people with the right skills at the right place at the right time. In 2010, DHL introduced

the Certified International Specialist (CIS) initiative for all employees and in 2012, the Certified International Manager (CIM) program was introduced for managers across all countries,” highlighted Monteiro. CIS is focussed on developing knowledge of the DHL network, the soft skills needed to deliver best in class customer service and the power of employees working together ‘as one’. The CIS program has been externally recognised for its huge success in global implementation leading to a positive cultural change in the company. All the 100,000 DHL express employees, including all DHL Express India employees, are CIS certified. CIM program is designed to transform our leadership thinking for the 21st century.

The first task of the industry should be to pursue the Central Government to recognise cargo and logistics as one of the important industries “Our company has taken several initiatives to change the image of the industry through its products and services and campaigns. Some of them are: launching of ‘Safeducate’, ‘Campus to Home’ and a landmark coffee table book titled ‘Horn Please’ to demonstrate the hardship of truck drivers with an objective to sensitise the industry people. The process will continue, for the interest of the entire industry,” Kanaujia emphasised. He urged for an effective collaboration between the government and industry people to set up academic and training institutes across the country to create talents for the logistics industry. Rapaka candidly informed that DIESL has just made a beginning. “At DIESL, we have recently introduced a programme to approach local industrial training institutes, graduate and under-graduate colleges, at 16 cities of Tier III cities across India. We would be approaching students who are primarily looking for jobs, immediately after completing their courses and those students www.cargotalk.in

Key Findings on the Logistics Industry n Shortage of talent with right competencies n Need to invest resources in training the new employees n Lack of industry standards to align competencies and curriculum n Lack of industry-driven accreditation, certification

The way forward

n Competition for acquiring talent within the industry n Competition for acquiring talent with other industry segments n Lack of research on labour market and best practices n Lack of trainers n Non-alignment with training organisations which conduct 95 per cent of skill training n Passive involvement of the industry in the shaping of policies to boost productivity, thereby, improving company competitiveness and individual employability n Training people about the ever-changing environment, technology, customer service and business needs (Source: NCCD) www.cargotalk.in

who would not be going for further studies after graduation. These students would also be from the nearby locations, closer to our warehouses to ensure that we don’t get into issues such as accommodation,” he informed. Selected students would undergo a combination of classroom and on-the-job training at our warehouses for a period of 10 days. Faculty would also be in-house. There is a need for promotion of and creating awareness of logistics as a viable career option vis-à-vis other conventional careers. Leading institutes should not only introduce but also encourage bright minds towards adopting this career. There is no dearth of growth in the logistics and supply chain industry. Rather it is at par in comparison to the other sectors. “Corporates should tie up with institutes, training centres and offer crash courses and weekend courses to its employees/staff. There should be a larger focus towards training and skill development via arranging customised tailormade induction trainings to the employees. Corporates should also ensure that the training modules are regularly updated along with the skill-sets kept on, in a revision mode,” Nair concluded. march 2014 i cargotalk i 33

Cargo Performance Export/Import

Delhi International Airport Cargo Department, IGI Airport, New Delhi (Airline-wise Import/Export Cargo Performance for the month of JANUARY 2014) S. No. Airlines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61

Export With- Out Peri- shable (MTs)

Cathay Pacific Jet Airways Emirates Air India British Airways Singapore Fedex Express Corpation Kalitta Air Etihad Airways Thai Airways Lufthansa Cargo Airline Air France Qatar Airways Malaysian Airline System Swiss Intl Airline Ltd Uzbekistan Turkish Airlines Virgin Atlantic M/S All Nippon Airways Klm Japan Airlines Hercules Aviation China Eastern Airlines Saudia United Airlines Aeroflot Cargo Airlines Finnair Lufthansa Cargo Ag Air China China Air Spice Jet Indigo Cargo Martin Airline China Southern Airlines Dhl Express Air Arabia Ariana Afghan Airlines Oman Air Blue Dart Ethopean Airlines Mahan Air Kalitta Air Air Shagoon Pvt. Ltd. Gulf Air Sri Lankan Airlines Ltd Air Mauritius Kuwait Airlines Asiana Airlines Kam Air Flywell Aviation Kenya Biman Bangladesh Air Astana Ups Royal Jordanian Airlines Pakistan International Turkmenisthan Airlines Jetlite Tajik Air Druk Air Iraqi Airways Total Cargo handled in January ‘13’ % VARIATION

722 1029 828 1000 890 493 622 526 532 299 478 659 452 335 403 407 461 332 407 340 151 442 215 156 257 255 212 146 107 163 115 177 94 96 0 130 62 89 101 57 91 0 78 67 56 61 20 55 5 0 29 24 19 0 15 5 4 0 4 1 1 14773 13128 12.53%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs) 74 176 1251 202 50 24 2 0 129 34 75 16 161 27 28 44 5 3 6 34 7 10 0 181 16 39 3 20 0 0 0 0 1 0 0 0 0 30 0 2 4 0 0 22 0 6 39 0 0 0 0 0 3 0 0 0 8 0 2 0 0 2737 2590 5.68%

796 1205 2079 1202 940 517 625 526 661 334 553 676 612 362 431 452 466 335 413 374 158 452 215 337 273 294 214 166 107 163 115 177 95 96 0 130 62 119 101 60 95 0 78 89 56 67 59 55 5 0 29 24 21 0 15 5 12 0 6 1 1 17511 15718 11.40%

Import (MTs) 2191 1585 583 911 719 1113 810 680 542 817 423 272 330 384 275 160 116 225 127 161 334 0 186 27 78 19 95 129 158 94 129 40 121 74 133 1 68 1 17 53 15 103 18 3 17 2 8 10 53 55 2 6 0 19 0 7 0 8 0 0 0 14504 13307 8.99%

Total Cargo (MTs) 2987 2790 2662 2113 1659 1630 1435 1206 1203 1151 976 947 942 746 706 611 582 560 540 535 492 452 401 363 351 313 310 294 264 257 244 217 216 171 133 131 130 121 118 113 111 103 96 91 72 69 67 66 58 55 31 30 21 19 15 12 12 8 6 1 1 32015 29025 10.30%

% of Total 9.33% 8.72% 8.32% 6.60% 5.18% 5.09% 4.48% 3.77% 3.76% 3.59% 3.05% 2.96% 2.94% 2.33% 2.21% 1.91% 1.82% 1.75% 1.69% 1.67% 1.54% 1.41% 1.25% 1.14% 1.10% 0.98% 0.97% 0.92% 0.83% 0.80% 0.76% 0.68% 0.67% 0.53% 0.41% 0.41% 0.41% 0.38% 0.37% 0.35% 0.35% 0.32% 0.30% 0.29% 0.23% 0.21% 0.21% 0.21% 0.18% 0.17% 0.10% 0.09% 0.07% 0.06% 0.05% 0.04% 0.04% 0.02% 0.02% 0.00% 0.00% 100.00%

Airlines whose figures are not available have not been mentioned

34 i cargotalk i march 2014

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Export & Import cargo tonnage handled at CSIA for the month of January 2014 (Freight in Metric Tonne)

S. N. Airlines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Jet Airways Emirates Air India Lufthansa Airlines Etihad Airways Singapore Airlines Cathay Pacific Qatar Airways British Airways Federal Express Turkish Airlines Saudi Arabian Airlines Swiss Intl. Airlines Ethopian Airlines Thai Airways Air France Delta/KLM/Martin Air Malaysia Airlines UPS Kuwait Airways Virgin Atlantic Kenya Airways

Export

Import

Total

S. N Airlines

2449 3357 2316 1184 1226 1145 1167 1176 1003 739 603 789 458 789 329 547 244 411 144 348 194 409

2584 1329 728 1381 1107 1114 998 673 618 286 332 133 420 16 475 177 438 223 388 182 262 9

5033 4685 3044 2566 2332 2259 2166 1849 1621 1025 935 922 878 805 804 724 682 634 532 530 456 418

23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

South African Airlines Aerologic Gulf Air Indigo Air Oman Air Air Arabia Blue Dart Air Mauritius EL-AL Airlines Srilankan Air Korean Air United/Continental Airlines Spice Jet Bangkok Airways Iran Air Yemenia Airways Pakistan intl Airlines Air China Egypt Air Royal Jordanian Others

Total

Export

Import

Total

285 0 217 197 160 162 48 170 108 81 92 72 67 77 51 41 27 9 10 9 25

15 286 48 32 62 58 137 2 61 62 48 67 12 0 0 1 1 5 2 0 17

300 286 265 229 222 220 185 172 169 143 140 138 79 77 51 42 28 14 12 9 42

22934

14789

37723

AIRLINE-WISE TRAFFIC STATISTICS

DURING JULY - SEPTEMBER 2013 - INTERNATIONAL airlines in indian airports S.N Airlines

Freight (in tonnes)

% Share

S.N Airlines

Freight (in tonnes)

% Share

S.N Airlines

Freight (in tonnes)

% Share

Emirates

46018

12.89

Kallita Airlines

2348

0.66

Mahan Air

359

0.10

Jet Airways

32023

8.97

KLM Royal Dutch

2131

0.60

Biman Bangladesh

336

0.09

Cathay Pacific Airways

25169

7.05

Uzbekistan Airways

2113

0.59

Asiana Airlines

322

0.09

Air India

23560

6.60

Dragon Air

2050

0.57

Bankok Airways

202

0.06

Singapore Airlines

22494

6.30

United Parcel Services

1839

0.51

Maldivian Airlines

197

0.06

Thai Air Asia

195

0.05

Fly Dubai

172

0.05

Iran Air

158

0.04

RAK Airways

152

0.04

Yemen Airways

126

0.04

Air Astana

119

0.03

Royal Jordanian

118

0.03

Turkmenistan Airlines

111

0.03

Lufthansa

21339

5.98

All Nippon Airways

1670

0.47

Qatar Airways

20057

5.62

Air Asia

1636

0.46

Ethiad Airways

16583

4.64

Kenya Airways

1440

0.40

British Airways

16158

4.52

Finn Air

1434

0.40

Thai Int’l Airways

12939

3.62

Nordic Global Airlines

1307

0.37

Saudi Arabian Airlines

8516

2.38

Aeroflot

1279

0.36

Malaysian Airlines

7087

1.98

Japan Airlines

1279

0.36

Federal Express

6533

1.83

China Eastern Airlines

1239

0.35

Air France

5651

1.58

Spicejet

1238

0.35

Martin Air

5623

1.57

South African Airways

1118

0.31

Srilankan Airlines

5592

1.57

China Southern

1097

0.31

Swiss Airways

5144

1.44

United Airlines

1083

0.30

Aerologic Freighter

4913

1.38

Air Mauritius

1022

0.29

Turkish Airlines

4820

1.35

Delta Airlines

933

0.26

Air Arabia

3782

1.06

Austrian Airlines

898

0.25

Virgin Atlantic

3618

1.01

Tiger Airways

848

0.24

Kuwait Airways

3487

0.98

Air China

741

0.21

Ethopian Airlines

3276

0.92

Silk Air

720

Gulf Air

3029

0.85

China Airlines

Indigo Airlines

2891

0.81

Oman Air

2566

0.72

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Ariana Afghan

110

0.03

Pakistan Int’l Airlines

0.03

FITS Air

0.02

Egypt Air

0.02

Kam Air

0.01

Mihin Lanka

0.01

Eva Air Cargo

0.01

Tajik Air

0.00

Air Austral

0.00

Druk Air

0.00

0.20

Iraqi Airways

0.00

594

0.17

El-Al-Isreal Airlines

408

0.11

Safi Airways Other Non-Schd Operators

3 8369

0.00 2.34

Korean Airlines

384

0.11

TOTAL

357105 100.00

march 2014 i cargotalk i 35

Cargo Performance Airports in India

Traffic statistics D omes t ic F reigh t

S. No. Airport

Freight (in Tonnes)

For the Month For the period April to November

November 2013 November 2012

% Change 2013-14

2012-13

% Change -9.4 3.5 -0.6 -16.8 35.7 -39.9 9.0 45.9 18.5 3.6 -2.4 5.2 11.8 25.5 30.1 -0.9

(A) 16 International Airports 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Chennai Kolkata Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Srinagar Jaipur Coimbatore Mangalore Amritsar Varanasi Portblair Total

5991 6858 2684 272 119 12 614 255 268 655 520 16 4 33 239 18540

6532 7130 2823 301 108 30 628 175 220 561 479 27 10 10 206 19240

-8.3 -3.8 -4.9 -9.6 10.2 -60.0 -2.2 45.7 21.8 16.8 8.6 -40.7 -60.0 230.0 16.0 -3.6

47823 56089 23637 1608 1322 116 4560 1955 2637 4736 4160 204 76 295 1640 150858

52778 54194 23775 1932 974 193 4183 1340 2226 4572 4261 194 68 235 1261 152186

18472 14410 7184 3064 791 370 44291

15345 14743 6570 2913 673 422 40666

20.4 -2.3 9.3 5.2 17.5 -12.3 8.9

138240 121226 60636 24241 6226 3386 353955

127102 122499 55502 22277 5906 3230 336516

1836 109 335 253 254 100 2887

1587 75 225 241 60 132 2320

15.7 45.3 48.9 5.0 323.3 -24.2 24.4

13565 1144 2983 2309 1299 811 22111

13406 925 1352 1852 895 612 19042

1.2 23.7 120.6 24.7 45.1 32.5 16.1

320 243 133 215 547 197 335 61 207 116 107 0 13 1 16 2511

265 437 137 181 463 146 341 78 157 66 82 1 40 4 33 2431

20.8 -44.4 -2.9 18.8 18.1 34.9 -1.8 -21.8 31.8 75.8 30.5 -100.0 -67.5 -75.0 -51.5 3.3

2527 2881 1123 2101 4636 1325 2739 569 1590 531 728 0 118 14 193 21075

2100 2991 963 1668 3987 1381 2841 670 1071 530 805 16 175 15 210 19423

20.3 -3.7 16.6 26.0 16.3 -4.1 -3.6 -15.1 48.5 0.2 -9.6 -100.0 -32.6 -6.7 -8.1 8.5

160 68389

149 64806

7.4 5.5

1045 549044

1135 528302

-7.9 3.9

(B) 6 JV International Airports 17 18 19 20 21 22

Delhi (DIAL) Mumbai (MIAL) Bangalore (BIAL) Hyderabad (GHIAL) Cochin (CIAL) Nagpur (MIPL) Total

8.8 -1.0 9.3 8.8 5.4 4.8 5.2

Pune Visakhapatnam Patna Chandigarh Bagdogra Madurai Total

(D) 17 Domestic Airports 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Bhubaneswar Indore Jammu Raipur Agartala Vadodara Imphal Bhopal Ranchi Aurangabad Leh Tirupati Rajkot Jodhpur Dibrugarh Total

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

36 i cargotalk i march 2014

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Cargo Performance Airports in India

Traffic statistics

I NT E R N AT I O N A L F R E I G H T Freight (in Tonnes)

S. No. Airport

For the Month For the period April to November

November 2013 November 2012

% Change 2013-14

2012-13

% Change -8.9 4.4 30.8 -10.3 -39.7 -17.2 42.9 -17.4 18.2 75.1 - 26.2 86.9 -100.0 -9.4

(A) 16 International Airports 1 2 3 4 5 6 7 8 10 11 12 13 14 15

Chennai Kolkata Ahmedabad Goa Trivandrum Calicut Guwahati Lucknow Jaipur Coimbatore Mangalore Amritsar Trichy Varanasi Total

17904 3862 1342 116 2043 1636 1 90 13 87 21 23 339 0 27477

18941 3694 1047 413 2656 2460 7 103 8 38 0 76 163 2 29608

-5.5 4.5 28.2 -71.9 -23.1 -33.5 -85.7 -12.6 62.5 128.9 - -69.7 108.0 -100.0 -7.2

149860 30405 10910 1174 17986 15446 10 733 143 641 32 1281 3092 0 231713

164433 29110 8339 1309 29842 18647 7 887 121 366 0 1015 1654 6 255736

(B) 6 JV International Airports 17

Delhi (DIAL)

32079

27985

14.6

259017

236109

9.7

Mumbai (MIAL)

38077

34890

9.1

305915

307414

-0.5

Bangalore (BIAL)

11676

11341

3.0

100041

94740

5.6

Hyderabad (GHIAL)

4105

3914

4.9

32455

30009

8.2

Cochin (CIAL)

3014

2805

7.5

27762

25539

8.7

Nagpur (MIPL) ( )

11.1

254

264

-3.8

Total

88991

80971

9.9

725444

694075

4.5

Pune

Total

(C)

17 Domestic Airports Grand Total (A+B+C)

0 116468

131 110710

- 5.2

0 957167

202 950013

0.8

News in Brief

AEPC organises Source Zone at Apparel House

he Apparel Export Promotion Council (AEPC) organised the 4th Edition of Source Zone from January 22-24, 2014 at Apparel House, Gurgaon, Haryana. The event was inaugurated by Sudhir Sekhri Chairman (Export Promotion), AEPC and Puneet Kumar, SG, AEPC. Speaking on the occasion, Chairman

38 i cargotalk i march 2014

EP, stated that,â&#x20AC;&#x153;Source Zone offers apparel exporters a great opportunity to source their requirements for fabrics, laces, trims, embellishments and accessories under one roof.â&#x20AC;? Leading domestic suppliers from

across India and international suppliers were there to exhibit at the show. Several well known suppliers like Grasim, Donear, Winsome, KRF Limited, K G Denim, Pallava Group, Pratibha Syntex, Optitex, Talco-Talreja, Nuvozymes, Ecotech Software, Kandoi Impex, Krish Fashion have also displayed latest trends in suit shirtings (cotton, linens), value-added yarns and fabrics, woven labels, printed labels, denim fabrics, yarns, spun, dyed and viscose linen, 2D & 3D solutions, cotton interlinings and enzymes for the textile industry just to name a few.

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Academic Institutes News in Brief

IIMM Chandigarh celebrates 29th Annual Day

ndian Institute of Materials Management (IIMM), Chandigarh Branch recently celebrated its 29th Annual Day at Punjab University Campus. IIMM is a professional body of materials management professionals which strives for enhancing professional efficiency of its members. The institute has 45 branches and 15 chapters in India and is a chartered member of International Federation of Purchasing and Supply Management. The Institute has over 10,000 members in India.

The institute offers a variety of educational programmes through its Head office in Mumbai and branch offices in different cities in the country. During its annual day celebration the Chandigarh branch organised ‘Spark-2’ wherein a number of speakers deliberated on issues pertaining to supply chain management. On this occasion, DBS Longia, Chairman, Chandigarh branch

welcomed the members, professionals from the industry and the invited dignitaries. Piyush Kumar Singh – Founder & Executive Director of INDUS B2B Solutions, a leading logistics company was one of the panel speaker of the Technical Session. He addressed aspiring management students of Logistics & Supply Chain Management. He stressed upon the need of supply chain excellence which is indeed essential for customer delight.

Indian Aviation Academy to receive IAE Award

ndian Aviation Academy has been selected to receive the ‘International Arch of Europe’ (IAE) award. According to the Academy sources, a Global Consulting Firm has selected the Indian Aviation Academy to receive the prestigious award for exceptional achievements. The Award will be presented in Frankfurt, Germany at the annual International Arch of Europe Convention on April 13 and 14, 2014.

40 i cargotalk i march 2014

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Family Album Club Function

Air Cargo Club

ACCB Annual Ball

sees an increase in attendees

The Annual Ball was hosted by the Air Cargo Club of Bombay for its members on February 8, 2014 in Powai, Mumbai. Majorly supported by CSC India and MIAL, the event was full of entertainment coupled with dance & music.

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march 2014 i cargotalk i 41

Family Album Cargo Terminal

Celebi Terminal

Celebi Cargo s Terminal celebrate

4 years of operaedtiaoconcktail rminal host Celebi Delhi Cargo Te ers on January 30, dinner for its custom e on the occasion of th 2014 in New Delhi, years of operation at completion of its four sh Goel, CEO, Celebi the IGI Airport. Raje Management India Delhi Cargo Terminal ficials of the terminal and several other of esent at the event to management were pr welcome the guests.

42 i cargotalk i march 2014

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Family Album Awards Function

Mahindra Awards

Mahindra Transport Excellence Awards

An effort to recognise ground workers

The third edition of the Mahindra Transport Excellence Awards for 2013, held recently in New Delhi, was a serious effort to drive a positive change, in the mindset of the end users of trucking and logistics services. The event brought together the whoâ&#x20AC;&#x2122;s who of the industry from across the country apart from Oscar Fernandes, Union Road Transport and Highways Minister. At the event, a truck driver won a truck, a lady truck driver was given special honour and several logistics companies were felicitated.

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march 2014 i cargotalk i 43

Family Album Industry Event

Conference

Aviation Conference on Security The German University of Applied Sciences, Frankfurt (FH FFM) together with its Indian partner, Centre for Aviation Studies of University of Petroleum and Energy Studies (UPES), organised the Aviation Conference at the Leela Palace Hotel, Mumbai on ‘Aviation Security: Current Threats and Challenges’. The meet was well attended by the leading aviation and logistics trade practitioners and was organised create awareness about the Universities’ programmes among them.

44 i cargotalk i march 2014

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Shipping & Ports News in Brief

Adani Petronet Dahej Port handles longest project cargo Adani Petronet Dahej Port, the solid bulk cargo handling port on the west coast of India, announced that it has achieved the benchmark of dispatching the longest cargo measuring 101.6 meter, in a single piece. The heavy equipment project cargo handled for Isgec Hitachi Zosen was a Quench Tower, weighing 383 tonnes and measuring 101.6 meter in length, making it the longest cargo handled at the port. The cargo was transported on a single ply of 42 SPMT axles from port’s storage yard to the South berth of Adani Dahej Port. The previous record was 91.15 meter long, 880 tonnes heavy C2 Splitter shipped on dumb barge using Ro-Ro Facility of the port to IOCL, Paradip during May 2013. The 20 MMTPA port infrastructure is capable of handling bulk (dry), break bulk and project cargo, with a total berth length of 490 meter and equipped with state-of-the-art equipment and world-class technology.

DP World Chennai launches Chennai Colombo Gulf service DP World Chennai hosted the launch of Simatech Shipping L.L.C’s Chennai Colombo Gulf Service (CCG Service) which will link South and East India to Arabian Gulf and East Africa transshipping, at Jebel Ali recently. The service with MV Sima Perfect made its maiden call. Simatech owns and operates three vessels namely Sima Perfect, Sima Prestige and Sima Sapphire which offers a fixed weekly sailing from Chennai. The weekly service will be calling on Chennai every Friday and sailing out on Saturday. Sima Perfect carried no import containers for discharge at Chennai since it was commencing the service afresh from

Chennai, whereas the ship carried export boxes to Colombo and Jebel Ali. The major commodities carried by this service comprises of garments, granite, foodstuffs, seafood & general cargo. The new service will have a direct, dedicated and fast coverage from Chennai to Arabian Gulf. The CCG service will deploy 3x1200 TEU capacity vessels and operate with the following port rotation: Chennai - Colombo - Cochin - Jebel Ali Cochin - Colombo - Chennai. This service also offers an efficient and fast feeder link via Jebel Ali into the entire Arabian Gulf region and China, Bangladesh & Pakistan via Colombo.

Shashi Kiran Shetty conferred with ‘Business Leader of the Year’ award Shashi Kiran Shetty, Founder and Executive Chairman, Allcargo Logistics has been felicitated by one of India’s oldest foundations ‘CHEMTECH’ in their ‘Annual Leadership & Excellence Awards 2014’ recently held in Mumbai. He has been conferred with the prestigious ‘Business Leader of the Year’ award in the logistics category. The Leadership & Excellence Awards ceremony was part of the foundation’s ‘Annual Shipping, Marine & Port (SMP) World Expo 2014’. The International Exhibition & Conference was organised to provide insights, discuss challenges and opportunities for Indian Marine, Shipping, Ports and logistics service providers and manufacturers, to become globally competitive by showcasing latest innovation and bridging the gap between technology providers and users. 46 i cargotalk i march 2014

Shashi Kiran Shetty Founder and Executive Chairman, Allcargo Logistics

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International Airport Terminal News

IGI Airport completes 8 years of EDI operations On February 13, 2014, IGI Airport Cargo Terminal, Delhi, has completed eight years of implementing web-based EDI operations in export. Cargotalk speaks to KS Kunwar, Director General, Air Cargo Forum India and a former AAI official and one of the architects of the project about his experience.

and honest approach towards unwar appears to this task who gave his life be satisfied with to this passion,” he further the success the added. EDI initiatives have brought in for the shippers. Kunwar also commended “There was a lot of resistance the AAI management, the from the user’s side about CHA and Freight Forwarding the credibility of our system. community, local Customs But we succeeded due to the IT department/NIC, the then relentless efforts made by Secretary Commerce and DDG the whole cargo team - the KS Kunwar for their support to make the committed workforce down Director General, Air Cargo venture a reality. the line with unbelievable Forum India team coordination by HODs “IGIA implemented EDI and hardwork and excellent in imports during 2009 and accordingly professionalism shown by the IGIA Cargo IT implemented web-based EDI in both team, headed by Late Gurmeet Singh and export and import cargo operation and MD Kala,” said Kunwar. “On this occasion. documentation in its true spirit,” we would like to pay our humble tribute to Kunwar pointed out. Late Gurmeet Ji for his dedication, sincerity

Congratulations from the Industry Edmund Evans Jones

Regional Director – North India Global Air Transport Services “Congratulations to KS Kunwar and the stalwarts in the team that made it happen. Of course, we cannot ever forget Gurmeetji. May his soul rest in peace!”

Mahesh Trikha

Sanjiv Edward Cargo Head, DIAL

“Congratulations to the entire team, who initiated EDI at IGIA under KS Kunwar’s visionary leadership. This has been possible due to contribution of Late Gurmeet ji and MD Kala. The legacy has continued with now Delhi being recognised by IATA as the first ‘e-freight compliant’ station in India.”

Chairman-NR ACAAI

Tushar Jani

“The freight community always looked at KS Kunwar for the best of options and implementation by him and his team. I still remember the brief discussion I had with him on EDI and other custom and infrastructure related issues, which our fraternity along with exporters and importer had been witnessing on daily basis, which always proved to be bottleneck for growth.”

“Congratulations to the team. I know and have experienced personally, the energy injected by PS Nair right from beginning to establish the modern cargo terminal then, which is serving till now, added with KS Kunwar’s hard work.”

48 i cargotalk i march 2014

Chairman, CSC India

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Guest Column Enhancement of Efficiency

Indian Aviation Academy fulfils Dinesh Kumar

lack of skilled manpower

The air cargo industry has a shortage of skilled manpower. Traditionally, the Indian logistics and air cargo industry relied on training the employees on-the-job. The situation is changing now but the pace is yet to pick up.

t is heartening that many of our industry operators have adopted well with the modern systems with collaborations from the import partner and exporting counterparts in other countries. The operators in other Asian countries, Europe and Americas are much more advanced with modern infrastructure, technology, state-of-art facilities and highly skilled manpower. There is a need for formal training in different processes of air cargo management and logistics industry in India, if it has to keep pace with the fast-paced developments elsewhere in the world. Today, logistics is not merely movement of goods. It has been replaced by supply-chain management. It is logistics, end to end. Technology has become an important enabler. It interfaces at each stage of the movement of goods. It could, at the same time, be a hindrance, if the organisations involved in supply chain management are not adept or prepared. Today, every market operation is online. The air cargo operators are connected with the production and distribution centres. They have to act in real-time to meet the timelines, being an important link in the distribution process encompassing all modes of transport.

What should the industry do Airports Council International (ACI) has predicted doubling of air cargo movement i.e. approximately 260 million metric tonnes by 50 i cargotalk i march 2014

2031. India has seen just over 22 million metric tonnes in all its 127 airports and combined for domestic and international air cargo. India is predicted to become the third major economy after USA and China by mid-century. It has already overtaken Japan in purchase power parity. But just imagine the difference in the total value of GDP 1.8 trillion compared to over 6 trillion dollars of China. All this means that there is a lot of potential for growth of air cargo and logistics and that sky is the limit. So if we have to reach the required volumes of the GDP, we have to think seriously. We ought to think of getting together with the Universities, Education and Training organisations to secure industry specific courses for their employees so that they can match the highest standards of knowledge and skills needed to perform efficiently in the system.

Indian Aviation Academy I had the privilege of heading the Indian Aviation Academy as a Founder Director and develop the industry specific training courses in diverse aviation management fields. The courses included air-cargo management, DGR (basic and refresher) and AV-SEC air cargo. The Academy is the first autonomous organisation of its kind in the country, recognised by ICAO and IATA, dedicated to capacity building in civil aviation sector. It is jointly promoted by Airports Authority of India, Director General of Civil Aviation

and the Bureau of Civil Aviation Security. The academy is fully established with approximately hundred training programmes from 3 days to 10 weeks in airport operations, air cargo management, DGR, airport engineering, commercial aspects and general management functions such as finance and human resources. ICAO international fellowships are also held at the academy along with BCAS courses including Aviation Security, Aviation Security Auditors trainings. Meanwhile, IAA has been recognised internationally. It has been handpicked and awarded â&#x20AC;&#x2DC;International Arch of Europeâ&#x20AC;&#x2122; for its exceptional achievements in quality education and training in aviation.

Recommendations After being a part of air cargo and aviation industry for over 36 years, I think a lot is yet to be done in the area of preparing human resources to meet the challenges. There is no short cut to achieving efficiency. One has to take a holistic view of the human resource requirements and its development to shoulder the responsibilities in different areas of operation with appropriate specialised training. ACAAI and FFFAI have devoted considerable effort in this direction and I am sure they are aware of its importance in meeting the challenges and growing their business. (The author is the former Director, Indian Aviation Academy and former Executive Director -Cargo and Airport Director, Chennai Intl. Airport, Airports Authority of India)