Cargotalk January 14

Cargotalk

Vol XIV No.2 Pages 60 Rupees 50 cargotalk.in

By DDP Publications

South Asia’s Leading Cargo Monthly

january 2014

No.1 in Circulation & Readership

Postal Reg. No.: DL (ND)-11/6002/2013-14-15. WPP No.: U (C)-272/2013-15, for posting on 25th-26th of advance month at New Delhi P.S.O.

RNI No.: DELENG/2003/10642 Date of Publication: 22/12/2013

Cold Chain

Management

the Creambell way

Projection Safeducate

plans big

for skill development

A year of revival?

PLUS Lithuania woos Indian 3PLs for warehousing

Air Cargo

Security and compliance to EU ACC3

Cargotalk

editorial

Editor SanJeet

Sr. Assistant Editor Ratan Kumar Paul

Cargotalk

Sr. Sub Editor HRitvick sen Vol XIV No.2 Pages 60 Rupees 50 cargotalk.in

CARGO MONTHLY SOUTH ASIA’S LEADING No.1 in Circulation & Readership

U (C)-272/2013-15, 02/2013-14-15. WPP No.: Delhi P.S.O. Postal Reg. No.: DL (ND)-11/60 of advance month at New for posting on 25th-26th

JANUARY 2014

RNI No.: DELENG/2003/10642 Date of Publication: 22/12/2013

COLD CHAIN

MANAGEMENT ll way

A

midst tough times in 2013, the cargo and logistics industry is hoping for better times with early signs of recovery in both domestic and international markets. A number of leading companies have already announced their investment plans for this year with cautious optimism.

In addition to changes in the market development in the days to come, the Indian industry also expects support from policy-makers. Immediate implementation of the much-awaited GST, for instance, may be the most sought-after gift for them, until a pragmatic logistics policy is in place.

Industry practitioners also urge the government to set up standards and accreditation procedures for all firms operating in the industry. In addition, the government should focus on the creation of special tax provisions to encourage private sector investments in infrastructure.

Moreover, documentation should be computerised, so that less number of forms are needed at checkposts. A centralised toll policy and mechanism is needed to ensure uniformity in the toll charges paid by truckers or drivers at various checkposts.

However, the logistics industry itself has to be strengthened and organised too. Stakeholders would have to keep on investing in new designs of terminals, containers and handling technology with the help of policy-makers who need to SanJeet Editor

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Deputy General Manager Harshal Ashar Regional Head: North & West shiv kumar

the Creambe

Mission 2014: Get GST implemented

Asst. Vice President Gunjan Sabikhi

By DDP Publications

PROJECTION

AIR CARGO

SECURITY and compliance to EU ACC3

Assistant Manager: West Roland Dias Sr. Marketing Co-ordinator Gaganpreet Kaur

SAFEDUCATE

Design ruchi sinha

PLANS BIG

for skill development

A YEAR OF REVIVAL? PLUS

Lithuania woos Indian 3PLs for warehousing

extend benefits of schemes to the industry so that massive investment envisaged are utilised in the most economic and productive manner. At the same time, steps need to be taken to encourage long-distance hinterland movement of containers by rail to guard against the present trend of majority of containers getting ‘stuffed’ in port town CFSs, resulting in congestion.

It is desirable that the year 2014 and ensuring years bring the much-needed pace to infrastructure. The industry expects that this should be one of the key priorities for our policy-makers as challenges at the gateway points have an adverse impact on the overall logistical performance. The logistics industry also wants to see stability in the foreign currency which can have an positive impact on the import traffic to India. There should be a long-term policy visibility in Foreign Direct Investment (FDI) to regain the investors’ confidence.

Implementation of sustainable and longterm investments will bring stability in foreign investments.

Photo Journalist simran kaur Advertisement Designer Vikas Mandotia, Nitin Kumar Aarushi Agrawal Production Manager Anil Kharbanda Circulation Manager Ashok Rana DDP Publications Private Limited New Delhi: 72 Todarmal Road, New Delhi – 110001, India.

Tel.: +91 11 41669575, 41669576 Fax: +91 11 41669577 E-mail: cargotalk@ddppl.com, Website: www.cargotalk.in Branch Offices

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No part of CARGOTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing.The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code.The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear. CARGOTALK is printed & published by SanJeet on behalf of DDP Publications Private Limited. and is printed at Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Industrial Area, New Delhi – 110028 and is published from 72Todarmal Road, New Delhi – 110001.

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Contents January 2014

SECTORS

National News

8 I IRU and IRF come together for truck drivers’ safety in India Logistics industry and insurance service providers come together to manage risk factors CII to host summit in Delhi on logistics technology

Events Calendar

20 I Calendar of International Cargo and Logistics Events

Technology Services 28 I Cloud based computing for logistics on the rise Cargo Performance 34 I Airlines wise exim cargo performance for November 2013 at Delhi International Airport

10 I Indian Railways

35 I Airlines wise exim cargo

News in Brief 12 I APM Terminal introduces Token Management System

38 I Airport wise Domestic

emphasises on new transport policy

Celebi Cargo Terminal showcases facilities at IGI Airport Imphal Airport starts International Flight

14 I Schenker India

strengthens multi client warehousing services Kale Logistics introduces solution for RORO services IATA appoints new Sr VP for safety and flight operations

International Airports 16 I Kempegowda International Airport, Bengaluru registers 15% growth in cargo traffic International news 18 I Endorse MC99, IATA, FIATA urge states 6 i cargotalk i january 2014

performance for November 2013 at Mumbai International Airport Cargo Performance at Indian Airports in September 2013 Airport wise International Cargo Performance at Indian Airports in September 2013

Industry Associations 40 I New Cold Chain Policy to address industry issues

42 I CCPL emphasises on integrated supply chain

44 I ACFI Security Conference

n Cover story

22 I Projection 2014:

Is it a year of revival?

After facing volatility in domestic and international markets because of the unprecedented depreciation of Indian rupee and sluggish demand from the international market in 2013, the cargo and logistics industry in India is expecting a revival in 2014, depending on the early signs of recovery.

Cargotalk spoke to leading trade-practitioners to present the ground reality.

highlights challenges and compliances

outstanding exporters

Family Album 48 I Air cargo security: Awareness programme by ACFI

Conference on Cold Chain Financing

50 I All-round performers

honoured by Swiss WorldCargo

51 I AEPC felicitates

52 I PHD Chamber hosts

COLUMNS Business Opportunities 30 I Destination Lithuania: Positioning itself as a logistics hub in European Union

Face of the Month 46 I Skill Development for Logistics: Safeducate all set for big strides Guest Column 56 I Solar Energy for Cold Storage: Utilising grids to reduce cost User’s Perspective 58 I Cold Chain Management: The Creambell way www.cargotalk.in

National News New initiatives

CII to host summit in Delhi on

logistics technology – Institute of Logistics Teventhe(CIL)onCIIis“Role organising a summit of Technology in Logistics and Supply Chain 2014” Edition II on February, 13-14, 2014 at The Grand, New Delhi. This conference is focusing on across the verticals logistics and supply chain. According to CII sources, this conference will provide a vast networking and knowledge-sharing platform. The participants will get an opportunity of experiencing nextgeneration global transportation and logistics technologies.

Logistics industry and insurance service providers come together to manage risk factors ecently several leading exporters, R logistics companies, banks and service providers from insurance sector met at a Conclave on Export Risk Management in Mumbai. With the theme ‘Managing Risk in Volatile Times’, the Conclave discussed risk mitigation issues and techniques in critical areas of exports related to insurance, foreign exchange fluctuation, supply chain management and geo-political movements.

Speaking at this conclave, Deepal Shah, CEO – Hindustan Cargo, pointed out that the advent of globalisation and outsourcing inter-dependencies on various factors

affecting global SCM is leading to higher uncertainties and increased complexities.

Nimbleness in operations backed by global SCM knowledge is the only way forward to mitigate risks and improve costs and deliverables. N Shankar, Chairman cum Managing Director, Export Credit Guarantee Corporation of India pointed out that credit insurance stands out from other non-life insurance products.

Export Credit Insurance plays an important role in enhancing the competitiveness of exports, especially of developing economies.

IRU and IRF come together for truck drivers’ safety in India ecently, the International Road R Federation (IRF) and the International Road Transport Union (IRU) has decided to work togeter to address truck driver safety in India.

At the occasion of the 67th meeting of UNECE Working Party 1 on Road Traffic Safety held recently in New Delhi; IRU and IRF jointly launched the dissemination of informative safety cards in Hindi. These cards provide tips and guidelines for truck drivers to ensure a safe and comfortable journey, explain the risks of using mobile phones while driving and outline how to respond in accident or emergency situations to save lives.

According to Kiran K. Kapila, Chairman, IRF, it is a great beginning to 8 i cargotalk i january 2014

support drivers’ education to enhance their safety in India with a very practical contribution through the driver safety cards. “It gives a very tangible shape to our commitments to the UN Decade of Action for Road Safety,” he said.

Commenting on the new initiatives Umberto de Pretto, Secretary General, IRU maintained that for true road transport professionals, every road accident is crucial. Effectively improving road safety requires professional drivers to be constantly aware of risks and best practices, as well as high quality training.

“This is what the IRU is pursuing through IRU Academy Training Programmes and our safety cards for drivers. We are very pleased to team up with IRF to disseminate such initiatives,” he added. www.cargotalk.in

National News New Initiatives

EICI praises

Commerce Ministry’s WTO initiative

T

he Express Industry Council of India (EICI) has commended Anand Sharma, the Minister of Commerce and Industry and his core team led by SR Rao, Commerce Secretary and Rajeev Kher, Additional Secretary on their success at the recently-held Bali meet of WTO. “It is a fine balance between the

Indian Railways

emphasises on new transport policy Recently, the Institute of Rail Transport (IRT) organised a seminar in New Delhi on ‘Resurgence of Transportation and Logistic in India’. The seminar was addressed by Arunendra Kumar, Chairman, Railway Board and President, IRT; Subodh Jain, Vice President, IRT and Member (Engineering), Railway Board; DP Pandey, Vice-President, IRT and Member (Traffic), Railway Board; besides several other IR officials.

p Jain, Kumar and Pandey releasing a Report at the seminar.

The seminar featured discussions on how to maintain the increase in the growth rate of this sector.

Vijay Kumar Chief Operating Officer, EICI need to ensure India’s sovereign right to an independent foodsupport programme, while at the same time, keeping in view the urgent need for trade facilitation that would ensure significant gains to the global economy,” said Vijay Kumar, Chief Operating Officer, EICI. According to EICI, the creation of a secure, predictable, and efficient system governing movement of goods across borders by reducing transaction costs for businesses, not just in India, but globally will initiate a great beginning. “Reduced transaction costs, would have special meaning for those small and intermediate scale entrepreneurs who are often unable to participate in global trade networks due to high costs of trading across borders,” added Kumar.

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was established in 1964 as an Iin RTautonomous society with its headquarters New Delhi. Kumar highlighted the crucial role being played by IRT in the development of railway transport and logistics industry in India. “Transportation and logistics are the backbone of any economy. Plus, there is a need to draw a road-map for sustainable growth of this sector,” he said. As the Government of India is soon going to finalise the National Transport Policy, the logistics industry in India will play the very significant role in the years to come, he said. The National Transport Development Policy Committee (NTDPC), which drafted this policy, has already put an interim report of this policy in the public domain. Kumar pointed out that the interim report has highlighted the need for creating sufficient capacity for the next 20 years in key transport modes. Kumar said that the Ministry of Railways is also gearing up to meet future requirements of this sector of Indian economy.

Jain emphasised that the country would need an efficient transportation and logistics infrastructure to meet the demand in terms of both volumes and value addition of its services. He said appropriate strategies need to be evolved for addressing the issues faced

by this sector.

In his address, Pandey said that growth in this sector is essential for the country’s economic growth. “The world has started seeing a resurgence in the demand for rail transport. There is a shift towards intermodal logistical solutions. There will be a need to amend laws, induct technology and change mindsets, if we have to take steps to meet customer demands,” he observed.

Pandey also maintained that pricing policy, investment and financing strategy will have to be analysed for growth in this sector.

The two-day seminar had four sessions, namely, ‘Current State of Transportation and Logistics Sector in India’, ‘Expectations of Consumers of the Transportation and Logistics Sector and Solutions for their Realisation’, ‘Vision and Strategy for the future growth of the Transport and Logistics Sector’ and ‘Future Roadmap for the Transportation and Logistics Industry’.

The seminar was a part of its Golden Jubilee year celebrations, intending to focus on present and proposed future of the transport and logistics sector in areas of policy, its implementation and synergy with the national and global economy. www.cargotalk.in

Industry News News in Brief

APM Terminal introduces Token Management System PM Terminals Inland Services A South Asia has introduced token management system to expedite supply chain through cost effective innovation. Token Management System is integrated with CONTRACK and Radio Frequency Identification (RFID) technology. The touch screen customer service kiosk is similar to the kiosk in the retail banking industry. RFID, mapped to the container freight station (CFS) management system (CONTRACK), is linked to this customer service kiosk.

The kiosk located in the custom’s area enable the custom house agent (CHA) to check the arrival status of the container at the CFS and the exact location of the container within the CFS. On entering container details, the kiosk prints a receiving note to the CHA on the arrival status which is then presented as part of the documentation process for clearance of container.

Celebi Cargo Terminal showcases facilities at IGI Airport n the occasion of completion of four O years of operations recently, Celebi Delhi Cargo Terminal Management India organised a special event for Shiela Dikshit, former Chief Minister, Delhi, to showcase its facilities at the IGI Airport.

Greeted by the Celebi and DIAL team, Dikshit visited the facility along with her convoy and was greeted by their officials.

The event started with a brief presentation made by Celebi in order to share an overview about the developments undertaken in the cargo terminal and ground handling activities.

Dikshit appreciated the infrastructural and procedural developments undertaken. She acknowledged Celebi’s contribution towards strengthening the economy of the country.

Inlecom Systems launches new reporting technology for maritime industry

nlecom Systems (Inlecom), the transport Icompany, and logistics research and innovation has launched the ‘Guide and Check List’ to enable maritime authorities and trade organisations to fulfill their obligation to deliver ship-reporting formalities in electronic format via a Single Window. This is a very significant initiative, because under the EU Directive 2010/65/EU, commonly known as the ‘FAL Directive’, Member States are

mandated to adopt a Single-Window system

by June 1, 2015.

This development has been undertaken within the eMAR research and development project which has been part-funded by DG MOVE, the European Commission’s executive body responsible for Mobility and Transport.

Imphal Airport starts international flights mphal Airport, which is operated by the Ifirst-ever Airports Authority of India, has started its international flight between Imphal and Myanamar. Recently, the flight GMR803 carried 200 delegates to the state for a meeting with the Chief Minister of Manipur and other State government officials.

12 i cargotalk i january 2014

The Chief Minister, Manipur in the presence of Secretary, DONER and other senior officers emphasised that efforts put in

by Airports Authority of India were of great significance and this will further boost the economy of State in particular and of the North-East Region in general. www.cargotalk.in

Industry News News in Brief

Schenker India strengthens multi-client warehousing services

chenker India has announced its expansion plans, which envisages expanding the S warehousing footprint of the company by 50 per cent to 3 million sqft. Meanwhile, the company has also doubled its Schenker Logistics Centres (large sized, multi client facilities) to 11 this year as part of the expansion plan. In total, Schenker India operates warehouses in 53 locations, 50 dedicated trucks (branded as DB Schenker) and additionally operates 200-300 trucks on a daily basis. In the export-import segment, DB Schenker handles about 80,000 tonne of air cargo and 80,000 twenty foot equivalent units (TEU) of ocean containers a year.

Kale Logistics introduces solution for RORO services

ale Logistics’ CFS/ICD system called ‘CAPELLA’ is now ready for the RORO (Roll on-Roll K off) functionality, which will help Vehicle Freight Stations (VFS) to manage their import process of vehicles coming to their depot for further processing. The RORO functionality enables the VFS to manage vehicles coming in containers, trailers or being driven directly from the port to the VFS. The new CAPELLA offers its users better tracking of shipment and vehicle/ cargo visibility, enhanced irregularity monitoring, proactive system alerts, support for handheld devices, technologically superior – web based application, easy maintainability and EDI support.

According to Rajesh Panicker, SVP, keeping a global perspective, all of Kale IT systems incorporate industry best practices and CAPELLA is no exception. It is a complete integrated and web-based application that can cater to end-to-end needs of a VFS/CFS/ICD/DEPOT/ Terminal, he added.

IATA appoints new Sr VP for safety and flight operations

he International Air Transport Association (IATA) has announced the appointment of TFebruary Kevin Hiatt as Senior Vice-President, Safety and Flight Operations. Hiatt will join IATA on 17, 2014 and be based at the Association’s headquarters in Montreal. He will succeed

Kevin Hiatt Senior Vice President Safety and Flight Operations

Guenther Matschnigg, who is retiring from IATA. Hiatt joins IATA from the Flight Safety Foundation (FSF) with the capacity of President and CEO since January 1, 2013, having joined FSF in 2010 as Executive Vice-President. He was subsequently promoted to the position of COO. Hiatt previously served as Vice-President for Corporate Safety and Security for World Airways, and was with Delta Air Lines for 26 years in various positions, including Chief Pilot at the Hartsfield-Jackson Atlanta International Airport Pilot Crew Base from 2002 to late 2005.

Kolkata Port Trust dredging to be continued with `1,501 crore

Union Cabinet has approved the proposal for extension of financial assistance to Kolkata TthehePort Trust (KoPT) to meet the dredging expenditure incurred by KoPT for maintenance of river/channel. This will make transactions through the port commercially viable for the port users.

The scheme of financial assistance to KoPT towards dredging will be continued for a total amount of `1,501.35 crore for the period from 2012-13 to 2015-16. The extant policy for awarding the dredging work in other major ports will be followed in respect of the dredging work to be carried out in Kolkata Port.

An ‘on account` payment up to 90 per cent of the amount payable towards financial assistance during the previous year may be made to KoPT in the following years in equal quarterly installments based on audit certificate for the previous year.

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International Airport Exclusive Interview

Kempegowda International Airport, Bengaluru registers

Sanjay Reddy Managing Director, BIAL

15%

growth in cargo traffic

According to Sanjay Reddy, Managing Director, BIAL; India is in a good position today with increased use of technology, airport and cargo infrastructure on par with international standards, enhanced freight and freighter capacity, and significant government and customs support.

Ratan Kr Paul

I

n Reddy’s opinion, the relative stability of the economy post the 2009 downturn is reflected in the air cargo industry, which has grown in terms of total tonne transported over the previous calendar year.

“In fact, according to the Airports Authority of India, average freight tonnes/kilometre (AFTK) capacity for India has increased from Asia-Pacific, Africa and Europe, opening new opportunities for air-freight,” he pointed out. To give a global perspective, Reddy highlighted IATA figures that project two per cent growth in air cargo traffic in 2013, compared to a drop of 1.1 per cent in 2012. In comparison, the total tonne transported from India (export and import) for FY 2013-14 (up to September 2013), stood at 1,102,165.

Reddy informed that Kempegowda International Airport, Bengaluru witnessed a 15 per cent YTD growth vs 2012 in total tonne carried, led by initiatives to reduce dwell times at cargo facilities at this airport and collaborative measures to boost and simplify business for shippers across South India.

“Growth and positive import-export balance from Western\Eastern nations continues to be encouraging for industries and exporters in Bengaluru and parts of India,” he said.

Reddy observed that the growing strength and demand for India’s industrial capabilities is also creating new supply chain 16 i cargotalk i january 2014

opportunities. “Kempegowda International Airport, Bengaluru is a one-stop solution today for shippers in pharma, textiles and engineering, as we can assist them in reaching South India as one entity” he emphasized.

Expectations from 2014

Reddy was of the opinion that the air freight industry globally and in India looks positive in 2014. “International Monetary Fund (IMF) has forecasted positive growth of three per cent in 2014 vs. 2013 for goods exported from different countries. Europe’s recovery and strengthening of the US private sector are positive developments for the global economy. In India, industries like engineering, pharmaceuticals, textiles, perishables and auto ancillaries are expected to grow,” he explained.

He also maintained that improved infrastructure for the air freight supply chain has contributed significantly to the industry’s growth. Privatised airports and cargo infrastructure, better connectivity to industrial areas from gateway airports, increased frequencies, newer players and customs support play a key role in driving the sector.

BIAL is focused on making Kempegowda International Airport, Bengaluru the Gateway

to South India – from a passenger and cargo point of view. “We have invested substantially to develop cargo infrastructure with state-of-the-art cargo terminals for faster turnaround,” said Reddy.

The airport recently inaugurated seven new dedicated freighter aircraft bays, with cutting-edge technology to achieve the highest levels of operational efficiency and service. BIAL is also evaluating a dedicated perishable cargo facility. “With the aim of improving connectivity via Bangalore to various locations across the region, reducing dwell time of total air cargo supply chain and achieving ease of trade through BIAL, we are in continuous conversation with stakeholders, government bodies, airlines, freight forwarders and other entities,” Reddy concluded. We continue to engage trade bodies in South India to stay abreast of industry requirements and align them with our strategy.

Achievements

Menzies Aviation Bobba Bangalore Cargo Terminal was recently certified with IATA’s Security Audit for Ground Operations. In fact, BIAL was recently recognised with two major industry awards as ‘Best Cargo Airport at the South East Cargo & Logistics Awards 2013’ and 2nd Runner up for ‘Best Cargo Airport 2013 by ACAAI’. www.cargotalk.in

International News Air Cargo

Endorse MC99:

IATA, FIATA urge states

Lufthansa

strengthens Africa services by ‘Jambo Kenya’

Recently, the International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) released a joint position paper calling for states to ratify the Montreal Convention 1999 (MC99) treaty to promote trade facilitation. and FIATA emphasised on the ItalksATA recently-held World Trade Organisation in Bali, where states have been urged to

ufthansa Cargo has received ‘Jambo Lat Frankfurt Kenya’ the second Boeing 777 freighter Airport, just one week after

take steps to stimulate greater world trade.

For those states who have not yet done so, the ratification of MC99 would be an important step in helping improve the speed, security and efficiency of air cargo.

a Lufthansa Cargo Boeing 777F made its maiden commercial flight. The new aircraft Jambo Kenya (Hello Kenya), symbolising the significance of Africa as one of the most important growth markets for global air freight services. Lufthansa Cargo already flies to four destinations within the emerging continent at present.

MC99 provides the legal framework for the use of electronic data as a record of carriage in place of paper documents, thus paving the way for freight forwarders and airlines to use the electronic air waybill and other e-freight documents such as the electronic Cargo Security Declaration.

According to the Lufthansa Cargo sources, the ‘Jambo Kenya’ greeting also illustrates the special bond between the air freight carrier and Nairobi. Lufthansa Cargo not only flies four times a week to Kenya’s capital, but is also deeply socially rooted there. By investing in five brand new Boeing Triple Sevens as part of the Lufthansa Cargo 2020 future programme, the cargo airline is not just focussing on modernisation, but also growth. Each of these freighters can carry up to 103 tonne of freight, transporting it non-stop for more than 9,000 km.

Today, over 33 per cent of global trade lanes have fully electronic customs procedures. However, wider adoption of e-freight cannot take place while some 88 states, mainly in South-East Asia and Africa, have yet to ratify MC99. The importance of this issue to governments was emphasised at the 38th ICAO Assembly in SeptemberOctober, where states passed a resolution urging all remaining states to ratify MC99.

According to Des Vertannes, Global Head of Cargo, IATA, this joint position paper shows that FIATA and IATA have united to push forward with the e-freight agenda.

Implementation of data messaging across all trade lanes would increase safety and efficiency of air cargo shipments” Des Vertannes Global Head of Cargo, IATA “$6.4 trillion of world trade is carried by air and the successful implementation of electronic data messaging across all trade lanes would dramatically increase safety, security, efficiency and speed of air cargo shipments,” said Vertannes.

IAG Cargo offers relief flight for The Philippines

ollowing the devastating damage caused by Typhoon Haiyan, IAG Cargo has Fcapacity offered aid agencies the use of a freighter aircraft, a Boeing 747 freighter with for up to 120 tonne, to fly emergency aid and supplies to the Philippines. It carried aid from Oxfam, Save the Children, The Reina Sofia Foundation and UNICEF. In addition, IAG Cargo and Iberia flew six tonne of medicines on November 15 on behalf of The Reina Sofia Foundation from Spain to London to join the relief flight.

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Calendar of Events Logistics & Supply Chain

Calendar of International Events 8th Indian Ocean Ports and Logistics 2014

Le Meridien Hotel, Mauritius January 23 and 24, 2014 Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com

Cargo Logistics Canada

January 29 and 30, 2014 Vancouver Convention Centre West Contact: Registration Manager Phone: 604.730.2058 Email: gillian.wright@informacanada.com

IATA Legal Symposium 2014 February 23 - February 25, 2014 The Westin St. Francis Union Square San Francisco, California Details: www.iata.org

Retail Supply Chain Conference

February 23-16, 2014 San Diego Convention Centre San Diego California, USA Contact Phone: (703)-600-2040 E-mail: danielle.saralegui@rila.org

6th Intermodal Asia 2014

Intercontinental Melbourne The Rialto, Australia February 27 and 28, 2014 Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com

Middle East Air Cargo and Logistics Exhibition & Conference 2014 April 9 to 10, 2014 Abu Dhabi National Exhibitions Centre (ADNEC) 20 i cargotalk i january 2014

Abu Dhabi Phone : +971 4 445 3222 Fax: +971 4 812 6777 Email: customercare@dubaitrade.ae

10th Trans Middle East 2014

InterContinental Doha, Qatar May 21 and 22, 2014 Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com

12th ASEAN Ports and Shipping 2014

JW Marriott, Jakarta, Indonesia June 11 and 12, 2014 Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com

Air Cargo China

June 17-24, 2014 Shanghai New International Expo Centre Contact: Messe München GmbH Air Cargo China Messegelände 81823 München, Germany Phone +49 89 949-20277 info@transportlogistic-china.com

3rd Black Sea Ports and Shipping 2014 September 3 and 4, 2014 Istanbul, Turkey Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com

Dry Bulk Europe 2014 September 21-23, 2014 Passenger Terminal Amsterdam

Amsterdam, The Netherlands Contact: Telephone: +44 (1206) 562 560 email: info@dc-int.com

LogiAfrica

October 1 and 2, 2014 The Gallagher Convention Centre Johannesburg, South Africa Phone: + 44 (0) 20 7368 9465 Fax: + 44 (0) 20 7368 9401 info@wbr.co.uk

Global Logistic and Cargo Symposium 2014 October 29–30, 2014 Kuala Lumpur, Malaysia Contact in India: Phone +91 12 0416 6822 Fax +91 22 4090 7272 Phone +91 44 4202 4819 Fax +91 22 4090 7272

The Supply Chain and Logistics Forum November 2-4, 2014 The Four Seasons Scottsdale, Arizona Delegate Manager 212-651-8770 jehrlicher@richmondevents.com

Intermodal Europe 2014 November 11-13, 2014 Rotterdam Ahoy Rotterdam Contact: Event Director Tel: +44 (0)20 7017 5112 Fax: +44 (0)20 7017 7818

9th Southern Asia Ports, Logistics and Shipping 2014

ITC Grand Chola Chennai, India November 27 and 28, 2014 Contact: JRB Eventz Management Mob: +91 99 102 01 927 Tel: +91 11 460 55 250 / +91 11 417 35 022 Email: sales@jrbeventz.com www.cargotalk.in

Cover Story Year Round Up

I After facing volatility in domestic and international markets because of the unprecedented depreciation of Indian rupee and sluggish demand from the international market in 2013; the cargo and logistics industry in India is expecting a revival in 2014, depending on the early sign of recovery. Cargotalk spoke to leading trade practitioners to present the ground reality.

A Sakthivel, Chairman AEPC, has expressed satisfaction over the growth in export for the month of November 2013. “The garment exports have been registering a positive growth since last 8 months. The growth of RMG for the month of November 2013 is 21.29 per cent, registering to the tune of US$ 1,051 million; the cumulative growth of 16.15 per cent for April-November 2013,� he said.

Projection

Ratan Kr Paul

ndian exports, which contribute up to 70 per cent of the growth in GDP in July-Sept quarter after clocking four months of double-digit growth, posted a 5.9 per cent increase in November, 2013. A close analysis of the overall exports and product profile suggest that Indian exporters are on track to not only realise the export target, but also exceed it by US$ 10-15 billion. In the meanwhile, gems & jewellery sector bounced back showing over 20 per cent growth in October.

f o r a e y a Is it 22 i cargotalk i january 2014

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According to him, apparel exporters’ constant efforts to work on technology upgradation, up-skilling, innovation in terms of product and design, along with stringent compliance practices has yielded this kind of growth. AEPC has organised 24 shows across the world in 2013, and responses from buyers were very encouraging. “We have to leverage our strengths of raw material, and design, to grab the space left open by China. We can do much better if government accepts our demand of a separate chapter for pre/post packing credit rate of 7.5 per cent,” Sakthivel maintained.

US has posted recovery with unemployment rate of less than 7 per cent and increase in consumer spending, but housing market and business spending have slowed. EU is still trying to come out of the woods and its GDP grew by 0.1 per cent in third quarter over previous quarter. “We are concerned with the instability in Middle-East, North Africa expropriation and legal dispute with many Governments of Latin America. The foreign exchange of Argentina has come down to US$ 30 billion and Venezuela has imposed many restrictions on current and capital accounts,” he observed.

manufacturing by augmenting investment in the sector both for modernisation and expansion. The new manufacturing policy and new Investment & Manufacturing Zone should be given thrust to achieve this objective,” the FIEO President maintained.

However, said Rafeeque Ahmed, President of the Federation of Indian Export Organisations (FIEO), “The general forecast is that 2014 will be a better year than this year. However, the global situation is still very fluid. There are a few green shoots here and there, but the situation will continue to be uncertain in 2014.” He pointed out that

In his opinion, the major challenge lies at home where manufacturing is not back on track. After four months of modest IIP growth, the country witnessed negative growth in October. “I would like to reiterate that exports cannot be sustained even on medium-term basis, unless manufacturing backs exports. There is need to push

LSP Perspective

He also pointed out that the transaction costs should be reduced through ongoing improvements. The Trade Facilitation Agenda would provide Indian exporters an opportunity to quickly address the transaction cost issue imparting competitiveness to our exports.

According to Vikram Mansukhani, National Operations Head, DIESL; the macro economic performance so far in FY1314 has by and large been one of gloom, tightening of purse-strings and looking at every expense through a microscope. “3PL service providers and logistics players at large have been in front of this battering ram and have had to find ingenious ways of dealing with spiraling input costs in terms of manpower, land, rentals and infrastructure,” he said. According to him, the majority of the larger 3PL operators have participated in bids this year, which to a large extent have just been dipsticks by SCM groups of various organizations, to check if their current rates are competitive. Cargo agents still seem to rule the roost with their local “jugaad” capabilities which are perceived as responsiveness by customers.

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january 2014 i cargotalk i 23

Cover Story Year Round Up

A Sakthivel Chairman AEPC

Rafeeque Ahmed President, the Federation of Indian Export Organisations (FIEO)

Vikram Mansukhani National Operations Head, DIESL

Commenting on the demand side, he pointed out to the slide of two major sectors; viz, automotive sales have reached an all time low and the severe slide of the rupee has forced consumers to defer the purchase of that ‘fancy smartphone’.

“The year ahead also does not seem to be very different from 2013 at least until the political impasse is resolved with a ‘change’ in government. For instance, implementation of GST seems to have been a passing wish-list of a progressive few, which has been put on the back burner for now,” he pointed out. In such a scenario, he felt, “3PL operators will have to showcase their effective utilisation of space and manpower within the warehouse and optimise utilisation of vehicles. It is again going to be survival of the lean, mean delivery machine.”

Vineet Kanaujia, Vice President - Marketing, Safexpress, observed that presently the logistics industry in India is at an inflexion point and is undergoing an adoption of numerous best supply-chain practices due to the entry of various global players. There is also a considerable amount of consolidation taking place in the industry presently.

In his opinion, supply chain & logistics would be in focus more than ever in 2014, due to the industrial shift that India is witnessing. The rapidly-changing business dynamics, coupled with the entry of big international firms, would lead to further re-structuring of the supply chain industry.

Also, 2014 will witness significant expansion of industries like pharmaceuticals, retail and manufacturing in India. This would give rise to more integrated supply chains having

Air cargo shows slight recovery

A

ccording to the recent IATA study, airline cargo businesses are starting to see a slightly better demand environment and further improvement in forward-looking indicators, but continued increases in capacity have kept downward pressure on yields and revenues. Air freight growth has improved in 2013 compared to 2012, in line with positive cyclical developments in business conditions. Business confidence has been on the rise since the start of Q3. Consumer confidence in Europe is at the highest levels since 2011, and stronger economic performance has stopped earlier declines in Chinese consumer confidence. These developments have supported a rise in demand for air-freighted commodities like semi-conductors. But expected gains have been limited by an on-shoring of production, which has limited international trade growth. Moreover, continued increases in capacity have countered the modest improvements in demand, causing yields to decline.

This trend could continue as new aircraft deliveries come into service in 2014. Cargo heads surveyed in October 2013 remain broadly optimistic, expecting yields to improve slightly over the next 12 months, supported by views of an increase in traffic growth.

Freight Traffic Growth

Source: IATA, ACI

Vineet Kanaujia Vice President - Marketing Safexpress 24 i cargotalk i january 2014

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Reiner A. Allgeier Managing Director, Schenker India

Frederic Chapellier National Sales Manager, Geodis Overseas

better services, automated technology, alongside efficient storage and handling systems. “So, the coming year will bring in plenty of challenges as well as opportunities for the industry, and it could prove to be an interesting year for those who are willing to innovate,” he said.

Samir Shah Partner, JBS Group

Pratik Mehta Assistant Vice President, Cargo Operations, AISATS

“The outsourcing trend continues – more and more companies focus on their key business and give the warehousing and distribution activity to a service provider like DB Schenker. There is a continued demand for value added services,” pointed out Reiner A. Allgeier- Managing Director, Schenker India.

Container Shipping Volume Growth by Region

Source: Drewry

Anil K. Gupta CMD, Concor

For Schenker India, the challenge was the reduction in the import volumes, both air and ocean due to the generally lower demand and the low currency. The opportunities were the increased volumes in the export market, mainly in ocean export where the company was able to grow more than the market. Another opportunity was the continuous growth in contract logistics where it has increased its footprint from 1.3 million sq feet to 2 million sq feet. “2014 will not see much growth in the freight volumes (air / ocean) but contract logistics will continue to grow on a rate of 10-15 per cent,” he said.

In 2014, DIESL will be working more closely with customers on KPI-based contracts, develop a stronger in-city delivery model, focus on safety and increase the levels of standardisation across the operating areas. “With a few of our customers, we would more engaged in designing the overall supply chain network in a manner that optimizes costs and service levels to their end-customers,” said Mansukhani.

International Freight growth by major routes

Source: IATA ODS

According to Frederic Chapellier, National Sales Manager, Geodis Overseas; the year 2013 had its own set of challenges, including continuous slow sourcing especially from European countries, slow reformations in terms of policies and instability in foreign exchange.

“Keeping in view that development took place in the latter part of the year, we feel 2014 will have positive indications for the business. There has been recovery and improvement in US economy and encouraging developments in Europe expects to firm up the market for the industry,” he underlined.

He also hoped that Goods and Service

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january 2014 i cargotalk i 25

Cover Story Year Round Up

Tax (GST) implementation would see light in 2014 and expects to revamp the warehousing and distribution network in the country. “Also, much-needed stability in foreign exchange may lead to improvement in inbound movements in India. We are hopeful 2014 will bring some reformation and developments in our infrastructure to ease out the bottle-necks at the gateway points,” Chapellier added.

Samir Shah, Partner, JBS Group, however, appeared to be less optimistic about the revival. “Being a member of many industry associations, I have noticed that the mood is not upbeat. Most exporters and importers in Gujarat do not foresee any major growth at least in the first two quarters of 2014,” he said.

Supplementing Shah’s viewpoint; Pratik Mehta, Assistant Vice-President, Cargo Operations, AISATS maintained that adverse economic conditions such as the weakened currency, high costs and dampened industrial output have induced a sluggish growth in 2013. However, the air cargo industry has been witnessing a trend towards consolidation and increasing operational efficiency, valueadds and product innovation. In 2014, AISATS foresees a boost in domestic demand as well as in exports caused by the recovery in the US and Eurozone economies.

Container Movement

As per the latest figures released by Indian Railways, the containerised tonnage moved over rail by all CTOs (Container Train operators) has increased from 26.64 million tonnes in April-Nov 2012 to 28.05 million tonnes in April-Nov 2013, signifying an increase of 5.29 per cent. “This is a very healthy sign, under the given economic circumstances and indicates that the year-wise tonnage is most likely to exceed the budgeted target of 42.5 million tonnes for 2013-14. For CONCOR, this increase has been 7.2 per cent till now. Accordingly, we expect to finish with reasonable numbers, despite the fact that the economic slowdown has affected all CTOs including CONCOR. There are already encouraging signs during current fiscal. We are hoping for better trends in next fiscal,” said Anil K. Gupta, CMD, Concor.

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Plans for 2014

Concor is developing a large number of facilities in form of logistic parks in strategic locations. These facilities would cater to specialised warehousing and handling requirements for catering to multi-modal traffic with a view to contain overall logistics costs. Concor will invest for catering to requirements in other relevant areas including acquisition of wagons, and investment in various complementary facilities being developed by CONCOR along industrial areas, including DMIDC/DFC (corridors). “Basically, we are concentrating on increasing our capacities by being

As per latest figures released by Indian Railways, the containerised tonnage moved over rail by all CTOs has increased from 26.64 mn tonne in AprilNov 2012 to 28.05 mn tonne in April-Nov 2013, an increase of 5.29% aggressive on investment in terminals. This will help us expand our existing network along existing as well as new emerging industrial corridors. This way, we are readying ourselves for meeting future demands of containerised traffic. Side by side, we are also gearing ourselves to handle bulk cargo in our terminals and also engage in provision of various ‘value added’ activities the demand for which is likely to grow in future,” informed Gupta.

Safexpress is planning a number of initiatives for 2014. A major initiative for Safexpress in the coming year would be to augment IT integration across all business processes of our firm. “We will also concentrate upon continuing our infrastructure development drive in a big way next year, but with an enhanced focus on Tier-II and Tier-III cities. This will include setting up new offices, logistics parks and transhipment hubs across the country. Also, in 2014 we intend to launch a few innovative training programmes for our employees as well as industry,” Kanaujia shared.

With value-added services in its total supply chain, Schenker India will focus on end-to-end solutions. “We will continue to invest in additional warehouse facilities and increase our footprint to 2.5 million sq feet. We will increase our focus on National Distribution and also build up our capabilities in our fairs & exhibition and projects services,” said Allgeier.

“We will continue to diversify our business solutions and presence keeping in view the Indian market development and customer behavior to changing business environment in 2014. We are aligned with our global strategy where India is one of the key focus i.e. BICU Development (Brazil, India, China and USA) and will strive to increase our business share,” shared Allgeier.

The company has also identified superand key-verticals for the Indian market to capitalise on the opportunities available.

The super vertical includes industrial project, fashion and lifestyle and key vertical market includes industrial, automotive, FMCG, Pharma, and hi-tech.

JBS Group has already started reinventing processes to reduce cost as well as timeframe in execution. “This is leading to us being in a position to give a better service and continuous flow of information. We are not looking at reducing our rates, but giving more to clients in the same prices which we charge presently,” Shah said. According to him, retention of client base is the key for the immediate future. A large number of smaller exporters and importers would be going slow with their international movement which would result in drop in overall volumes leading to undesired competition and a ratecum-credit war.

AISATS will introduce a community system, which will serve as a platform to facilitate seamless Electronic Data Interchange (EDI). This will be the digital foundation for AISATS’ e-freight initiative and will help reduce documentation and provide better shipment visibility. AISATS will also enhance the services it provides to the pharmaceutical sector which has been witnessing exponential growth. AISATS in Bangalore intends to set up a dedicated, temperature-controlled facility for the handling of international pharmaceutical and perishable cargo, which will complement its existing cold chain facilities. www.cargotalk.in

Technology Services Current Trends

Cloud based computing for logistics on the rise The present market trends are to automate workflow and introduce cloud based computing in logistics sector.

Parvinder Singh, MD, Hans Infomatic, expects more and more people getting on cloud platform and industry will reduce usage of paper and cut unnecessary processes based on earlier practices.

S Parvinder Singh MD, Hans Infomatic

28 i cargotalk i january 2014

ingh pointed out that one of the key point of the recent WTO agreement is to reduce dwell time for clearance of cargo at ports within the stipulated time frame. India was earlier opposing this, but has given consent to the final draft.

“Without technology, the implementation of this key agreement point is not possible and government has to invest in IT infrastructure,” he highlighted. In light of above, he perceives greater penetration and dependence of IT in logistics sector and sharing and integration of information among various trade partners.

Hans Infomatic has embarked upon providing complete supply chain management solutions and products which will enable the company to expand its

customer base wider to retail and FMCG sector. “We are also focussing on integrating various trade bodies for seamless and online exchange of documents,” Singh said..

According to Singh, with the WTO trade agreement coming into effect the world over, the buzz is going to be to ‘go paper less’ or reduce paper as much as possible to reduce dwell times. Adoption of IT in trade and logistics will not only lead to reducing dwell time, but also promote efficiencies in the system and foremost reduce costs considerably. “Our expectation from the governments/policy makers and industry stakeholders is work towards legislating the laws and policies to support this initiative at the earliest to take lead in the world,” he maintained.

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Lead Story Business Opportunities

Lithuania is one of the European Union’s prime transport centres because of two strategic Trans-European Network (TEN) corridors and their branches which run through Lithuania—the NorthSouth highway and the rail route connecting Scandinavia with Central Europe and the East-West route linking the huge Eastern markets with the rest of Europe. Diana Mickevičienė, Minister Counsellor, Embassy of the Republic of Lithuania in India spoke to Cargotalk on other major advantages and facilities.

L

ithuania is located on the crossroads of two huge markets: EU and CIS. Transport and logistics generate around 15 percent of Lithuania‘s GDP. The country has four modern international airports, in which one is solely for cargo operations. In addition, the airport at Helsinki in Finland is very close by.

On seaport side Klaipėda, the northernmost and only ice-free seaport on the eastern shore of the Baltic Sea is located in the western part of Lithuania.

The port is capable of receiving ships up to 14.5 metres draught and emerged as the leading port on the eastern shores of the Baltic Sea. Klaipėda State Seaport is a regional transport hub connecting sea, land and railway routes from the East to the West. Compared to neighbouring Eastern Baltic seaports, the port of Klaipėda has

the widest shipping line network with other seaports. Klaipėda services around 35 million tonne of cargo a year.

Railway transport in Lithuania provides efficient long-distance passenger and cargo services. Lithuania belongs to the Transport Corridor Europe-Caucasus-Asia (TRACECA), an international transit network that enables cargo containers from Lithuania to Central Asia and China. Another example is the Sun Train, which connects Western Europe with China. It passes through Lithuania’s sea port, Klaipėda, before continuing through Belarus, Russia and Kazakhstan.

“Lithuanian railways carry approximately 50 million tonne of cargo a year. Direct rail routes link Lithuania with Russia, Belarus, Latvia, Poland, Ukraine, Germany and the rest of Europe, the main transit route

Destination

Lithuania

Positioning itself as a logistics hub in European Union Ratan Kr Paul

30 i cargotalk i january 2014

MAP-Lithuania transport routes

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Transport corridors

SEZ Advantages n Klaipėda Free Economic Zone With superb road, rail and sea access, Klaipėda Special Economic Zone (Klaipėda SEZ) forms part of the hub of a multi-modal transport network.

It was identified in the European Union Transport Infrastructure Needs Assessment (TINA) programme as a site for the establishment of a logistics centre, forming part of a Europeanwide network of these centres.

Klaipėda SEZ occupies a strategic location that is ideal for companies looking to relocate or expand production, to establish packing and distribution centres, and minimise logistics problems.

n Kaunas Free Economic Zone 534 Ha of Industrial land ready for development, coupled with tax incentives.

We are highly optimistic that exporters, importers, manufacturers and logistics service providers from India will make profit, if they use Lithuania as their logistics hub in this region” Diana Mickevičienė

Minister Counsellor, Embassy of the Republic of Lithuania

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between Russia and its Kaliningrad district passes Lithuania,” she added. The combined traffic train Viking, which connects the Black and the Baltic Seas (the train leaves from Ilyichevsk port, goes through Kiev, Minsk and Vilnius and reaches Klaipėda in 55 hours covering 1,734 km), has been successfully operated over the years. “The delivery time is extremely short, although the train has to cross the state borders of two European Union nonmember states on its way. The procedures of crossing the borders take less than 30 minutes. The costs of Lithuanian railways are around half of the costs of the German railways and make up around one third of the costs of French railways,” said Mickevičienė.

She also asserted that Lithuania has regionally best network of roads and highways.

“Lithuania is an integral part of the continental TRASECA railway network enabling easy transportation of cargo from Lithuania to Asian countries, including China.

India’s major markets the United States and the United Kingdom, Germany and France also use Lithuania’s transport infrastructure as a logistical hub for transportation to and from Afghanistan.

Kaunas FEZ offers both a strategic geographic location and excellent development conditions. Situated next to Kaunas International Airport and within proximity of the ice-free Klaipėda Seaport, Kaunas FEZ is conveniently accessible via road and railways systems.

A well-developed infrastructure and safe business environment, in combination with low-cost qualified workforce and substantial tax incentives, give Kaunas FEZ a competitive edge with regard to investment.

Logistics Centres in Lithuania

Lithuanian logistics centres are very modern and well-integrated into the network of European logistics centres and ensure the interoperability of different transport modes in trans-European transport corridors.

The greatest supply of modern warehousing facilities (according to the figure published in 2010) is in Vilnius (334.400 m2), with Kaunas following in the 2nd place (184.300 m2), and Klaipėda in the 3rd place (123.600 m2). The overall supply of modern january 2014 i cargotalk i 31

Lead Story Business Opportunities

warehousing facilities in Lithuania in 2010 accounted for approximately 703,000 m2.

In 2010, the rents of both new and old warehousing premises in Vilnius, Kaunas and Klaipėda regions have seen an average decrease of approximately 10 per cent (with 2009 fall of rents of approximately 35- 40 per dnt). New warehousing premises are now offered for rent in Vilnius at 2.3–4.3 EUR/ sqm, and of old premises of 1.2–2 EUR/sqm.

Kaunas and Klaipėda show rents of new warehousing premises at 2-3.8 EUR/sqm, and the rents old premises at 0.9-2 EUR/sqm.

In the early 2011, warehousing rental costs remained stable and varied from 1.2 to 4.1 EUR in Vilnius, from 0.9 to 3.5 EUR in Kaunas and from 0.9 to 3.8 EUR in Klaipėda. The Lithuanian Government has set a strategic goal to become the Northern Europe Service Hub by 2015. “The share of exports of services should be approximately 1/2 of Lithuania’s total exports,” said Mickevičienė.

Advantage Lithuania

According to her, Lithuania is a logistics hub or transit point by default. “Strategically

32 i cargotalk i january 2014

located on the EU map, the country provides huge cost benefits (from one-third to half the cost, as compared to Western European countries because of less tax and low labour cost) to shippers and logistics service providers. We are highly optimistic that exporters, importers, manufacturers and logistics service providers from India will profit, if they use Lithuania as their logistics hub in this region,” emphasised Mickevičienė.

She also informed that the Lithuanian government and private companies are keen to strengthen business relationships with India by offering multiple infrastructure facilities, financial incentives (like tax benefits) and other support to interested parties. “Our Embassy in New Delhi is open to discuss any such proposal. Also, we want to extend our support to joint ventures between Indian and Lithuanian companies for any project either in Lithuania or India,” she added. In days to come, the Embassy of Lithuania will organise trade meets in different parts in India, especially in New

Delhi, Mumbai, Kolkata and Chennai.

Mickevičienė maintained that there are huge trade opportunities between India, particularly for exports of perishables like seafood, shrimp, fish, flowers and pharmaceuticals.

Major Benefits

º Favourable geographical location crossroads of North, East and West º Two Trans-European transport corridors crossing the country º Northernmost ice-free seaport on the eastern shore of the Baltic Sea; is among the regional leaders º Very competitive transport and logistics costs º Expertise and experience in cooperation with Western and Eastern cultures º Well-developed and maintained rail and road transport network º Four international airports º Four multimodal public logistic centres, interconnecting sea, rail and road transport routes

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Cargo Performance Export/Import

Delhi International Airport Cargo Department, IGI Airport, New Delhi (Airline-wise Import/Export Cargo Performance for the month of November 2013) S. No. Airlines

Export With- Out Peri- shable (MTs)

1 Jet Airways 2 Cathay Pacific 3 Emirates 4 Air India 5 British Airways 6 Singapore 7 Etihad Airways 8 Fedex Express Corpation 9 Thai Airways 10 Lufthansa Cargo Airline 11 Air France 12 Qatar Airways 13 Kalitta Air 14 Uzbekistan 15 Swiss Intl Airline Ltd 16 Klm 17 Malaysian Airline System 18 Virgin Atlantic 19 Turkish Airlines 20 M/S All Nippon Airways 21 China Eastern Airlines 22 Japan Airlines 23 Saudia 24 Finnair 25 Aeroflot Cargo Airlines 26 United Airlines 27 Austrian Air Cargo 28 Air China 29 Hercules Aviation 30 Indigo Cargo 31 China Air 32 Kalitta Air 33 Spice Jet 34 Martin Airline 35 Air Shagoon Pvt. Ltd. 36 China Southern Airlines 37 Blue Dart 38 Dhl Express 39 Mahan Air 40 Gulf Air 41 Oman Air 42 Air Arabia 43 Air Mauritius 44 Asiana Airlines 45 Ariana Afghan Airlines 46 Ethopean Airlines 47 Sri Lankan Airlines Ltd 48 Air Astana 49 Biman Bangladesh 50 Kuwait Airlines 51 Kenya 52 Royal Jordanian Airlines 53 Mihin Lanka Airlines 54 Ups 55 Turkmenisthan Airlines 56 Tajik Air 57 Jetlite 58 Pakistan International 59 Eva Air 60 Iraqi Airways 61 Kam Air 62 Druk Air 63 Safi Airways Total Cargo handled in November ‘12’ % VARIATION

990 732 775 1065 990 613 539 574 320 521 675 481 485 409 387 422 187 300 374 315 203 78 205 310 230 234 136 113 255 156 114 0 103 72 174 84 94 0 79 77 52 78 75 42 39 35 47 24 24 1 30 23 16 0 14 11 1 4 0 2 1 1 0 14389 14577 -1.28%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs) 164 38 1055 157 41 23 129 1 24 59 7 133 1 69 17 22 14 0 5 5 0 7 174 4 86 33 8 2 0 0 1 0 0 14 0 0 0 0 15 22 26 0 4 0 8 7 0 21 0 25 0 0 0 0 0 1 0 0 0 0 1 0 0 2425 2238 8.36%

1154 770 1830 1222 1031 636 668 575 344 581 683 615 485 478 404 445 201 300 379 320 203 85 379 314 316 267 143 115 255 156 115 0 103 86 174 84 94 0 94 99 78 78 79 42 46 42 47 45 24 26 30 23 16 0 14 12 1 4 0 2 2 1 0 16815 14074 19.47%

Import (MTs) 1733 2084 605 1059 852 946 830 872 960 615 260 320 382 272 286 176 359 257 120 171 241 332 15 78 24 57 161 143 1 64 94 209 92 106 5 88 54 137 39 2 5 4 3 33 21 22 13 2 11 7 3 1 3 14 0 0 10 3 5 1 0 1 1 15265 13911 9.73%

Total Cargo (MTs) 2888 2854 2435 2281 1883 1583 1498 1447 1305 1195 943 935 868 750 690 620 559 557 499 491 444 417 394 392 340 324 304 258 256 220 209 209 196 191 179 172 147 137 133 101 83 82 82 75 67 64 60 47 35 33 33 23 19 14 14 12 10 7 5 3 2 2 1 32079 27985 14.63%

% of Total 9.00% 8.90% 7.59% 7.11% 5.87% 4.93% 4.67% 4.51% 4.07% 3.73% 2.94% 2.91% 2.70% 2.34% 2.15% 1.93% 1.74% 1.74% 1.55% 1.53% 1.38% 1.30% 1.23% 1.22% 1.06% 1.01% 0.95% 0.80% 0.80% 0.69% 0.65% 0.65% 0.61% 0.60% 0.56% 0.54% 0.46% 0.43% 0.41% 0.32% 0.26% 0.26% 0.26% 0.23% 0.21% 0.20% 0.19% 0.15% 0.11% 0.10% 0.10% 0.07% 0.06% 0.04% 0.04% 0.04% 0.03% 0.02% 0.01% 0.01% 0.01% 0.01% 0.00% 100.00%

Airlines whose figures are not available have not been mentioned

34 i cargotalk i january 2014

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Export & Import cargo tonnage handled at CSIA for the month of November 2013 (Freight in Metric Tonne)

S. N. Airlines 1 Jet Airways 2 Emirates 3 Lufthansa Airlines 4 Air India 5 Etihad Airways 6 Singapore Airlines 7 Cathay Pacific 8 British Airways 9 Qatar Airways 10 Turkish Airlines 11 Saudi Arabian Airlines 12 Federal Express 13 Ethopian Airlines 14 Delta/KLM/Martin Air 15 Thai Airways 16 Swiss Intl. Airlines 17 Air France 18 Virgin Atlantic 19 Malaysia Airlines 20 UPS 21 Kuwait Airways 22 Kenya Airways

Export

Import

Total

S. N Airlines

2550 3137 1266 1991 1153 948 955 1121 993 752 950 565 855 320 349 420 518 394 388 170 275 374

2852 1935 1632 826 945 1022 919 686 763 297 75 323 16 488 446 372 152 261 256 382 139 4

5402 5072 2898 2817 2098 1970 1874 1807 1756 1049 1025 888 871 808 796 791 670 655 644 552 414 378

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

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

Total

Export

Import

Total

0 299 235 198 168 123 121 55 146 89 84 59 70 43 22 0 21 13 18 9 98

334 10 55 40 62 65 49 109 4 56 58 78 1 0 6 22 0 7 0 1 13

334 309 291 239 230 187 170 164 150 145 142 136 70 43 28 22 21 19 18 10 111

22312

15763

38075

International Airport Technology

MIAL Introduces GMAX

for better communication Mumbai International Airport Private Limited (MIAL), along with its strategic IT technology partner Kale Logistics, has launched India’s first air cargo community portal of this kind, called ‘GMAX-GVK MIAL Air Exchange.’ The objective of GMAX (GVK MIAL Air Exchange) is to foster better communication and effective dissemination of information to trade partners.

T

he portal was officially launched by MIAL at the 40th ACAAI Convention held at Jaipur this year. The project, which was conceptualised in early 2013, offers an integrated electronic communication platform and a central base for data sharing with MIAL’s trade partners.

“MIAL is delighted to introduce the country’s first air cargo community portal at Mumbai International Airport. GMAX is the first of its kind ‘Air Cargo Community Portal’ offering a comprehensive EDI service platform connecting all the air cargo stakeholders at Mumbai,” said Manoj Singh, Vice President (Cargo), MIAL. Highlighting the key features of the service, Singh informed that GMAX is a multi-modal unified electronic platform that will strengthen digital interface between cargo terminal operator and

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all air cargo stakeholders including Customs, Customs brokers, airlines, freight forwarders, shippers/consignees and other statutory bodies.

Singh asserted that GMAX would bridge the communication gap and improve visibility, quality and reliability of the air cargo supply. “We are sure GMAX will develop into a vital asset for MIAL to connect with global air transport and transform Mumbai airport as an e-freight station,” he maintained.

According to Sumeet Nadkar, CEO and MD of Kale Logistics; this is a very significant milestone for the company. “It is a demonstration of the capability of our solution GALAXY to power e-freight at CSI Airport. We are confident that this will take trade and customer facilitation at MIAL to the next level,” he emphasised. january 2014 i cargotalk i 35

Cargo Performance Airports in India

Traffic statistics D omestic F reight

S. No. Airport

Freight (in Tonnes)

For the Month For the period April to September

September 2013 September 2012

% Change 2013-14

2012-13

% Change

39847 40684 17776 1355 738 129 3139 1035 1718 3138 3263 143 54 200 855 114074

-12.0 2.3 -0.2 -21.0 14.5 -34.1 8.2 38.1 19.2 12.8 -7.3 -7.7 25.9 2.0 32.0 -2.4

(A) 16 International Airports 1 Chennai 2 Kolkata* 3 Ahmedabad 4 Goa 5 Trivandrum 6 Calicut 7 Guwahati 8 Lucknow 9 Srinagar 10 Jaipur 11 Coimbatore 12 Mangalore 13 Amritsar 15 Varanasi 16 Portblair

Total

5602 6987 2941 173 148 13 674 238 279 511 520 31 6 46 173 18342

6563 6821 2780 164 118 38 570 176 292 547 486 18 18 23 178 18792

-14.6 2.4 5.8 5.5 25.4 -65.8 18.2 35.2 -4.5 -6.6 7.0 72.2 -66.7 100.0 -2.8 -2.4

35066 41606 17735 1070 845 85 3395 1429 2047 3540 3024 132 68 204 1129 111375

(B) 6 JV International Airports 17

Delhi (DIAL)

18 Mumbai (MIAL)

18845

15377

22.6

98548

96746

1.9

14980

15040

-0.4

89884

92856

-3.2

19

Bangalore (BIAL)

7662

6741

13.7

44939

41773

7.6

20

Hyderabad (GHIAL)

2973

2705

9.9

17664

16547

6.8

21

Cochin (CIAL)

862

707

21.9

4607

4557

1.1

22

Nagpur (MIPL)

457

413

10.7

2501

2461

1.6

Total

45779

40983

11.7

258143

254940

1.3

1814 104 375 367 231 86 2977

1502 62 170 239 25 90 2088

20.8 67.7 120.6 53.6 824.0 -4.4 42.6

9691 929 2288 1684 897 606 16095

10236 786 988 1384 715 389 14498

-5.3 18.2 131.6 21.7 25.5 55.8 11.0

422 436 163 249 811 173 377 81 191 93 90 13 26 3125

314 379 138 146 606 149 354 82 187 48 78 13 27 2527

34.4 15.0 18.1 70.5 33.8 16.1 6.5 -1.2 2.1 93.8 15.4 0.0 -3.7 23.7

1846 2373 835 1598 3643 940 2043 441 1130 382 548 91 149 16025

1581 2150 688 1299 3077 1089 2271 504 848 392 631 111 157 14815

16.8 10.4 21.4 23.0 18.4 -13.7 -10.0 -12.5 33.3 -2.6 -13.2 -18.0 -5.1 8.2

142 70365

145 64535

-2.1 9.0

739 402377

859 399186

-14.0 0.8

(C) 7 Custom Airports 23 Pune 24 Visakhapatnam 25 Patna 26 Chandigarh 27 Bagdogra 28 Madurai

Total

(D) 17 Domestic Airports 30 31 32 33 34 35 36 37 38 39 41 43 46

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

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

36 i cargotalk i january 2014

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Cargo Performance Airports in India

Traffic statistics

I N T E R NAT I O NAL F R E I G H T

S. No. Airport

Freight (in Tonnes)

For the Month For the period April to September

September 2013 September 2012

% Change 2013-14

2012-13

% Change

126969 21691 6206 776 24708 14279 675 97 283 803 1313 197800

-11.4 2.4 31.3 18.6 -43.1 -15.9 -17.8 15.5 60.8 -13.1 76.2 -12.0

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

Chennai Kolkata* Ahmedabad Goa Trivandrum Calicut Lucknow Jaipur Coimbatore Amritsar Trichy Total

18336 3758 1246 132 1761 1637 80 19 89 60 347 27467

20060 3635 1086 94 2418 1852 59 3 48 245 149 29649

-8.6 3.4 14.7 40.4 -27.2 -11.6 35.6 533.3 85.4 -75.5 132.9 -7.4

112497 22217 8150 920 14062 12005 555 112 455 698 2313 173994

(B) 6 JV International Airports 17

32286

29963

7.8

192376

177916

8.1

18 Mumbai (MIAL)

Delhi (DIAL)

36590

38667

-5.4

227300

234660

-3.1

19

Bangalore (BIAL)

12062

11352

6.3

76466

71988

6.2

20

Hyderabad (GHIAL)

3795

3631

4.5

24646

22451

9.8

21

Cochin (CIAL)

3240

2934

10.4

21591

18293

18.0

22

Nagpur (MIPL)

36

32

12.5

179

197

-9.1

Total

88009

86579

1.7

542558

525505

3.2

(C)

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

0 115476

71 116299

- -0.7

0 716552

71 723376

-0.9

* Estimated

Cargo recently introduced Lto beufthansa new tracking facilities for its customers kept fully informed of the location

Lufthansa Cargo offers real-time tracking facilities

of their shipment. Through the use of GSM transponders, the customers will now be able to check online where their consignment is at all times.

The Lufthansa sources also asserted that GSM mobile technology will be used to transmit the data. The tracking devices have been specifically designed for use on board aircraft and are the first officially certified consignment trackers. The transmitters will switch off automatically during flight.

“With this service, Lufthansa Cargo is offering its customers maximum transparency and precise, real-time consignment tracking,” said Lufthansa sources.

Lufthansa Cargo will provide the required number of devices, which weigh just 50 grams. The shipper can place a tracker in any consignment and simply

38 i cargotalk i january 2014

return the device by post after the goods have been transported.

“By using GSM technology, we are offering our customers genuine added value and increased transparency throughout the entire transport chain,” said Thilo Schäfer, Vice President Global Handling Management, Lufthansa Cargo. He also maintained that with its ease of application, the new offering will appeal to all air freight customers, big and small.

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Industry Association PHD Chamber

New Cold Chain Policy for addressing industry issues

Speaking at PHD Chamber’s Conference on Financing of Cold Chain in New Delhi, Sanjeev Chopra, Joint Secretary & Mission Director, National Horticulture Mission, Ministry of Agriculture, Government of India informed that within ensuing three months, the Government of India will announce the new Cold Chain Policy to facilitate the industry.

A

ccording to Chopra, there is a huge requirement of cold chain infrastructure to maintain the quality of agro-based products and pharmaceuticals. The government has accepted major recommendations of the National Centre for Cold Chain Development (NCCD), which has been constituted by the government as well as industry representatives.

Chopra emphasised on the financing of the cold chain industry and appealed the banking sector to introduce different models in this sector. He also maintained that cold chain operators also will have to think about a viable financial model for benefits. “Focus on high-value products like certain fruits and vegetables. There is huge domestic market for quality products. Only viable commercial projects should be the prime agenda,” he advised.

Though there is demand for fresh products, the cold storage facility available is only for about 10% of the produce

p Speakers and dignitaries at the PHD Chamber’s Conference on Financing of Cold Chain in New Delhi.

Rakesh Gupta, GM, Punjab National Bank; Amit Bhatnagar, VP and Regional HeadNorth, Agriculture Finance Business, Kotak Mahindra Bank; Ravindra Sahni, Assistant Vice President and NSM-Rural Initiatives, HDFC Bank; Vinod Asthana, MD, CRWC; Pankaj Kumar, Director, Ministry of Food Processing Industries; P Alli Rani, Director (Finance), Concor and CEO, Fresh and Healthy Enterprise; PN Shukla, Director, Gati and several other industry experts.

Chaudhuri maintained that apart from quality fruits and vegetables there is a good market for fish and meat both in domestic and international market. “Government will provide all kind of support top make the cold chain industry robust,” he assured.

He emphatically said that there is a need to go beyond cold storage-centric concept. “Cold chain is not only about cold storage. Think about an integrated and total supply chain (cold) for all perishable and temperature-sensitive products to make the industry beneficial for growers/ manufacturers as well,” said Kohli.

The conference was also addressed

by Suman Jyoti Khaitan, President, PHD Chamber; RS Bedi, Chairman, Task Force on Logistics Management, PHD Chamber; Saumitra Chaudhuri, Member Planning Commission, Government of India; Pawanexh Kohli, Chief Advisor, NCCD;

Earlier, Bedi highlighted the industry’s perspective. In his opinion, though there is a huge demand for fresh, quality products, the cold storage facility available in India is only for about 10 per cent of the produce, resulting in post-harvest losses of up to 30 per cent in the farm sector. In 2012, India had

40 i cargotalk i january 2014

approximately 6,300 cold storage facilities, with a capacity of 30.11 million metric tonne.

Of the total number of facilities, about 60 per cent are located in Uttar Pradesh, Gujarat, West Bengal and Punjab.

India’s cold storage market has a multitude of players, with over 3,500 companies in the value chain. Cold chain solution provider companies constitute 85 per cent of the market, while transportation services, such as refrigerated trucks account for the remaining 15 per cent.

“In 2010, for the transportation of perishable products, there were 250 reefer transport operators running around 25,000 vehicles in India. Of these vehicles, 80 per cent were utilised for milk transportation, leaving only 5,000 vehicles for other produce,” Bedi highlighted.

“Large investments are needed to develop cold chain infrastructure in India and the third-party logistic service providers in India do not have the bandwidth to support huge investments into cold chain,” he pointed out. www.cargotalk.in

Industry Events Pharmaceutical Logistics

CCPL emphasises on integrated supply chain

The 2nd Edition of ‘Cold Chain Pharmaceutical Logistics’ (CCPL) which was held on November 22 in New Delhi, discussed issues related to handling of pharma products across the country. The conference was addressed

by Radharamanan Panicker –Group CEO, Cargo Service Centre; Pawanexh Kohli - Chief Advisor, NCCD; manufacturers, drug distributers, customs and airport authorities, warehousing, and health facility providers.

T

he theme of this event was “Benchmarking Indian Cold Chain Pharmaceutical Logistics”. The conference provided a unique platform for industry experts involved in temperature-sensitive logistics to share their experience on topics like distribution and management system, regulatory approvals, emerging trends and challenges, technological innovations in cold chain logistics, infrastructure development, cost-effective logistics strategies within the country and its impact on the Indian pharmaceutical industry.

The CCPL was organised by leading business intelligence organisation Nispana, in association with Cargo Service Centre Integrated Cargo Terminal Partner. The event was supported by leading associations such as Indian Private Ports and Terminal Association and Confederation of Indian Pharmaceutical Industry. Solution providing expertise such as Soft Box also extended their support by participating in this event.

The topics discussed at the conference included the e-enabled supply chains for air cargo logistics, taking positive steps towards utilising smart technologies to improve cold chain process, effectiveness

42 i cargotalk i january 2014

The conference provided a unique platform for industry experts across pharmaceutical, logistics, airline and air cargo

of third-party logistics in providing strategic and operational value and effective institution of modern low temperature storage centres across the domestic region.

Poised for Pharmaceuticals

Cargo Service Center India showcased its capabilities and infrastructure as the ‘Integrated Cargo Terminal Partner’ at the Cold Chain Pharmaceutical Conference 2013.

The daylong conference provided a unique platform for industry experts across

the pharmaceutical, logistics, airline and air cargo sectors to deliberate and share their experiences on a wide range of issues.

The conference included a site visit to Cargo Service Center’s Integrated Air Cargo Terminal – ‘Cargo Terminal 2’ for all the delegates at the conference to gain a first-hand insight to air cargo handling and Cargo Service Center’s proven expertise in Pharmaceutical Handling. Chairing the conference, Radharaman said, “Aircargo is highly regulated by design and purpose. Efficient cargo operations are about infrastructure, process, people and technology. It is therefore imperative to involve the cargo terminal operator in the process and supply chain design.” He also maintained that maintaining the pharma cool supply chain is a collaborative team effort by shippers, forwarders, transporters, airlines and cargo ground-handlers. www.cargotalk.in

Industry Associations Current Issues

ACFI Security Conference

highlights challenges and compliances In view of increasing security issues across the world, and especially the EU decision on implementation of ACC3 (Air Cargo Carrier of 3rd Country), the Air Cargo Forum India (ACFI) recently organised a national conference in New Delhi on compliances and challenges before the industry. Attended by a large number of industry stakeholders and government organisations, the conference urged for mutual responsibilities to make cargo traffic safe and secure.

Ratan Kr Paul

44 i cargotalk i january 2014

I

n his welcome address, Pradip Panicker maintained that the objective of ACFI is to make the air cargo industry internationally competitive by complying all existing rule & regulations and coping up with forthcoming challenges. “It should be underlined that in India about 85 per cent cargo is carried by passenger aircraft. Hence, safety and security of an aircraft would be the utmost task for the air cargo supply chain industry.� He however, emphasised on reducing of delay to clear a shipment without compromising security aspect.

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There is additional screening at the last point of departure under the new EU ACC3, according to Latest EU Commission drafts policy: Export of own security regime to 3rd countries instead of bilateral or multilateral recognition Delivering the theme speech, “Air Cargo Security—Future Outlook”; SIS Ahmed, Director, GMR Group and former DG, CISF and CRPF, said that the air cargo supply chain security issue witnessed a paradigm shift after 9/11 and subsequent terrorist incidents across the world. He emphasised on common responsibilities to adhere to the ICAO and other international rules & regulations pertaining to air cargo security as well as harmonisation of those rules & regulations. “Security systems and requirements differs from country to country.

However, there is a need of a unified system.

The standardisation can be done by adopting appropriate technology. On the other hand, any additional measures cannot be taken as barrier for the air cargo industry,” he observed. He also emphasised on end-to-end security, rather than security only at airports.

in India we have introduced 100 per cent screening (x-ray) to strengthen the security system. Nevertheless, we will have to resolve a number of issues and challenges,” said, RN Dhoke, Addl. Commissioner of Security, BCAS. He maintained that in India, one of the key challenges is to introduce Regulated Agent concept. He also emphasised on coordination between the security agency and industry stakeholders and adequate training to further strengthen security system at the airport level.

Presenting the airlines perspective, Vipan Jain, Head Bar India Cargo (NR) and Regional Manager, South Asia and Middle East, Lufthansa Cargo maintained that the EU ACC3, which is being implemented in July 1, 2014, will have huge significance for the air cargo movement to EU countries.

“The recent efforts of the European Commission favouring EU air carriers in their discussions with the US TSA are highly appreciated. But there is still a long road ahead. Since most EU carriers operate a hub and spoke system, one stop security starting

Proposed recommendations º Creation of strong links between Customs and Security at one location

at the first point of loading is of paramount importance,” Jain pointed out.

There is additional screening at the last point of departure required under the new EU ACC3, according to the Latest EU Commission drafts policy: Export of own security regime to 3rd countries instead of bilateral or multilateral recognition.

As a result, there will be an interruption of logistics processes. “In addition, implementation of 3rd country RA/KC through EU air carriers is not a feasible solution.

Validation of 3rd country handling sites is an additional requirement. The target may be 3rd country air carriers, but EU carriers will be also affected, although they already safeguard security through their Aviation Security Programmes,” explained Jain. He also maintained that new technologies recommended by TSA and followed by EU for air cargo screening is a challenge.

Commenting on the Indian air cargo security scenario, Jain said that BCAS’ circular no. 8/2008 on Comprehensive Security Procedures in respect of cargo, express cargo, mail and courier bags is valid which allows four categories of security measures: Account Customer (for freighter class cargo), Known Consignor (original producer or manufacturer of goods), Regulated Agent Concept (warehouse operator at or off the airport) and Airlines Security Measures.

Blasé D’Souza, Director Materials, Ingram Micro India, presented the user’s perspective at this conference. According to him, often shippers have to face delay and discomfort owing to untoward incidences like theft and pilferage. “In addition, our agencies often confuse security and customs issues. The security agency should do their job without getting influenced by other agencies like Customs,” he stressed. Though D’Souza urged for utilisation of technology to hasten security clearance, he appealed for not to burden air cargo by imposing additional costs. “Encourage e-freight, do away with paper documents and too many agencies to handle a shipment,” he recommended. He also recommended for a proper Risk Management System.

º Creation of Air Freight Stations

º Installation of video surveillance with 30 days’ recording footage

Jain also highlighted the challenges related to security at Indian airports. Cargo comes in loose condition (rarely on skids or in ULDs). It comes to airport during a short duration due to traffic restrictions and consolidation at agent premises (24/7 not in full use). Packages required for examination are identified after entry in examination area which itself is a threat (except Delhi Airport). Other challenges include multiple agencies performing X-ray inspections; insufficient security staff with Cat. 12 qualification; warehouses not designed according to 100% X-ray requirement; transportation chain is not linked with certification (open entry for truckers) and various agencies involved in truck dock, examination & bonded area.

“There are lots of screening and technologies used for passenger/baggage security. Compared to these there is less investment for cargo security. However,

º Participation from shipper –trucking co – forwarders – H/A – Carrier – GHA in entire supply chain with responsibility to have secured freight

The Conference was also addressed by Rajinder Chana, First Secretary, Aviation Department for Transport, British High Commission, New Delhi.

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º Introduction of RMS by Customs and availing of advantages of certified under known shipper concept º Sniffer Dog or any other technology without heavy investment º Introduce BUP/SLU concept º Installation of CCTV in parking, truck dock, examination, bonded, ramp area and transportation road to ramp side with full coverage

january 2014 i cargotalk i 45

Face of the Month Training Institute

Skill Development for Logistics Safeducate all set for big strides In view of the huge shortage of skilled manpower in the logistics industry and of organised institutions in India, Safeducate has tied up with Chartered Institute of Logistics & Transport to establish a powerful structure. Speaking to Cargotalk, Divya Jain, a young entrepreneur and CEO, Safeducate discussed the significance of the training initiatives for the larger interest of the industry.

Ratan Kr Paul

E

stablished in 2007, the initial objective of Safeducate, a training firm which is a venture of supply chain & logistics industry leader Safexpress, was to train its own manpower to enhance overall efficiency and reduce cost.

The aim was also to create a good image of the industry – that logistics industry is not all about unskilled manpower who work in an unorganised way. Gradually, the firm expanded its area of operations by focussing on training external people from logistics industry and students fresh out of college.

On being asked about her interest in training by creating a separate organisation,

Jain said, “Not only is the logistics industry a sunrise industry, it is also the backbone of the country’s economy. Without efficient logistics operations, the country cannot compete in the international market. Unfortunately, the very same industry in India is suffering tremendously from an acute shortage of trained manpower.” She added that, “The logistics industry in India requires about 20 million trained people by 2020.”

It is true that logistics industry has multiple challenges because of its multiple functions. Hence, offering proper training to create trained logistics professionals is a huge task before the industry. “Accordingly,

A brief profile >> Divya Jain, CEO, Safeducate, who is leading a competent team of trainers, has a thorough knowledge of the supply chain industry and is able to identify skill requirements at each operating level to ensure that learning and development programmes develop the rightskilled individuals as per industry needs. She completed her B.A. (Honours) Economics from Hindu College (Delhi University) and Masters in Management from Cambridge University (UK). She also acquired a Law Degree (LL.B.) from University of London. Jain has coauthored ‘Horn Please’ – a book focussing on the trucking profession in India. The young entrepreneur believes in a strong mix of theoretical and practical knowledge.

46 i cargotalk i january 2014

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there should be very strong and wellorganised institutions for logistics training in the country. Presently, there is a huge gap between the demand and supply of trained/ skilled manpower because of the absence of institutions for logistics industry. Safeducate is well-equipped to fill this gap in the industry,” Jain added.

Led by the alumni of Stanford and Cambridge University, Safeducate has trained more than 20,000 people from across the country. The institute has opened its branches in 22 locations in different parts of India. Out of the 20,000 trained people, a significant number of people have been from different logistics companies and individuals. The logistics courses range from elementary level to higher level. The courses are accredited by the Chartered Institute of Logistics & Transport (CILT).

Unveiling the future plans, Jain said, “We will achieve our target of offering training to 90,000 people over next 10 years. In addition, we are tying up with various state governments for conducting training programmes. Presently, we are in talks with the Government of Madhya Pradesh to train from 500 to 1,000 people a month,” she said.

She maintained that though the skill development exercise is basically an industry task, it cannot go without support from

Nurturing an Industry º The focus is on elementary level and middle rank; higher level also included º The faculty is a strong mix of experienced industry practitioners and academicians º The course material is wellbalanced by theory and hands-on training º The firm follows global best practices, brought in by international logistics experts

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‘Safeducate-CILT Learning Forum’ introduced for logistics industry in New Delhi Safeducate, a specialist in supply chain & logistics training, recently launched the Safeducate-CILT Learning Forum at their corporate office in New Delhi. According to Divya Jain, the idea behind this initiative is to encourage dialogue between senior professionals from the supply chain & logistics industry about various logistics issues prevailing in the industry. More than 25 eminent representatives from the industry were present at the launch function. Jain also informed that this forum would now be a monthly affair and Safeducate would extend its support for more of such forums.

the government at various levels. She also made it clear that the venture of training institutions cannot be just a CSR activity.

The commercial aspect has to be taken into account, to make training and skill development initiative a success. “However, imparting training to unskilled manpower is itself playing the vital role of corporate social responsibility for the greater interest of the industry and the country’s economy.

For instance, drivers’ training is largely a CSR activity,” Jain observed. She also made it clear that to make a training institute profitable in India, especially in supply chain & logistics industry, the entrepreneurs have to go through a long gestation period. It is because of the fact that companies are a little hesitant to pay the bill to acquire skills for their employees. “We are optimistic that, in due course of time, Indian companies will definitely understand the benefit of skill development in terms of its impact on cost reduction and efficiency increase, resulting in an increase in the overall volume of business,” Jain pointed out. She also emphasised on attracting young people to this sunrise industry as a lucrative career option.

Led by Stanford and Cambridge alumni, Safeducate has trained more than 20,000 people across the country. The institute has opened its branches in 22 locations in different parts of India january 2014 i cargotalk i 47

Family Album Industry Association

ACFI Conference

Air cargo security:

Awareness programme

by ACFI The recently-held conference on air cargo security, organised by the Air Cargo Forum India (ACFI) in New Delhi, was a very well organised event attended by a number of industry majors including airlines, airports, terminal operators, ground handlers, freight forwarders, regulating agencies, MoCA officials and manufacturers.

48 i cargotalk i january 2014

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january 2014 i cargotalk i 49

Family Album Airlines Events

Swiss WorldCargo

All-round performers

Honoured by Swiss WorldCargo

The Swiss WorldCargo Customer Events in Delhi and Mumbai were recently held to celebrate partnership with its clients.

According to Shankar Iyer, Director, South-East Asia & Middle East; Swiss WorldCargo, despite the present tough economic scenario, the airline wanted to acknowledge the contributions of its clients, who as business partners extended all support to the airline. Top freight forwarders of Swiss WorldCargo were felicitated by the airline officials.

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Family Album Exporters Awards

AEPC

AEPC felicitates

outstanding exporters Recently, the Apparel Export Promotion Council (AEPC) organised its annual export award function 2013 for outstanding export performance for the year 2012-13, at apparel house, Gurgaon. Dr. K S Rao, Union Textiles Minister, was present on this occasion to deliver awards. Also present were at this event was Zohra Chatterji, as the Guest of Honour.

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january 2014 i cargotalk i 51

Family Album Industry Events

PHD Chamber

PHD Chamber hosts Conference

on Cold Chain Financing

The second edition of the National Conference on Cold Chain, hosted by PHD Chamber in New Delhi, discussed one of the major areas i.e financing for this sector. Remarkably, a number of officials from different banks were present on this occasion to unveil the facilities to create cold chain infrastructure in the country. Also present were government officials and logistics companies and cold-chain operators.

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Cargo Performance Shipping & Ports

TRAFFIC HANDLED AT MAJOR PORTS

(DURING APRIL TO NOVEMBER’2013* VIS-A-VIS APRIL TO NOVEMBER’2012) (In ‘000 Tonnes)

Fertilizer

Coal

Container

Port Traffic period P.O.L Iron Fin. Raw Ther- Cooking Ton- TEUs Other Total

Ore mal nage Cargo

KOLKATA Kolkata Dock System

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

%Var. against 2012-13

431 459

104 83

5 21

- -

- -

207 12

4734 4644

306 309

2700 2536

8181 7755

5.49

3873 4298

1465 999

156 89

214 185

1072 1239

3742 3143

1486 1769

77 93

7257 6309

19265 18031

6.84

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

4304 4757

1569 1082

161 110

214 185

1072 1239

3949 3155

6220 6413

383 402

9957 8845

27446 25786

6.44

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

11818 10718

3502 1200

74 30

2482 2628

16469 13133

4619 3228

52 111

5 8

5419 4417

44435 35465 25.29

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

8935 10123

8031 7755

1473 1879

512 506

1952 2013

4511 4597

3300 3029

175 166

8862 9513

37576 39415

-4.67

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

1369 662

- -

- -

- -

13983 8352

240 576

- -

- -

1557 1169

17149 10759

59.39

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

8701 8764

27 32

105 190

178 203

- -

- -

19148 20189

992 1046

5843 6204

34002 35582

-4.44

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

332 537

- -

307 433

449 420

4569 4395

- -

6506 5928

328 313

6723 6754

18886 18467

2.27

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

9953 9279

- -

36 22

124 240

- -

- -

3275 3149

241 229

956 609

14344 13299

7.86

16320 15491

1892 1672

372 394

50 17

1786 -

3539 4402

481 439

33 31

1279 1141

25719 23556

9.18

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

347 565

- 7421

93 78

- -

- 768

4951 4168

143 137

14 14

1869 1068

7403 14205

-47.88

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

23433 23161

- -

98 156

71 239

2869 2910

- -

279 620

24 42

11471 11798

38221 38884

-1.71

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

3337 2703

- -

- -

- -

- -

- -

35487 38482

2677 2840

1601 1674

40425 42859

-5.68

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

34910 35452

473 706

2087 2873

613 724

5157 2439

199 317

452 1239

29 76

15628 17944

59519 61694

-3.53

123759 122212

15494 19868

4806 6165

4693 5162

47857 35249

22008 20443

75343 79736

4901 5167

71165 71136

365125 359971

1.43

1.27

-22.02

-22.04

-9.09

35.77

7.66

-5.51

-5.16

0.04

1.43

Haldia Dock Complex

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

TOTAL: KOLKATA

PARADIP

VISAKHAPATNAM

ENNORE

CHENNAI

V.O.CHIDAMBARANAR

COCHIN

NEW MANGALORE

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

MORMUGAO

MUMBAI

J.N.P.T.

KANDLA

ALL PORTS

TRF APRIL-NOV.’2013 TRF APRIL-NOV.’2012

% Variation from previous year

Source: Indian Ports Association

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Guest Column Green Logistics

Solar W Energy for Cold Storage

hy do stand-alone SME industrial units, homes, and I include cold storages, shy away from installing solar panels to generate electricity? Yes, cost is a factor as always. But that is one factor that is continually showing a downwards trend. The other reason quoted is the hassle of operation and maintenance.

Utilising grids to reduce cost

Pawanxh Kohli Chief Advisor NCCD

Today, if reports are true, the selling price per watt of solar photo voltaic is about 0.5 USD. Reports also suggest that this price is expected to come down to 36 cents per watt in five years. Past records show that, in 1977 the price stood at US$ 76 per watt. However, it can be reduced drastically by implementing a scientific method of using solar energy for cold storage.

People often worried about the hassles of operations and maintenance. This is typically because the implied concept of Solar PV panel requires the use of a ‘bank’ of batteries to store the cheap electricity. And batteries need to be replaced every now and then. The electricity that is generated from solar insolation would need to be stored in batteries, which in turn would be sourced to create AC power for use in common utilities.

Another limitation for industries is that they may need tri-phase input into their machines.

But why store this electricity, why bother with batteries and et al? What if the solar power is fed directly into the local grid? I am not talking about sharing the surplus generated with the grid… the concept is to feed ALL that the sun generates for you, straight into the grid.

What one uses off the grid, one pays for as usual. But what your panels feed into the same grid, earns you the same rate per kWh. This means you keep both circuits independent of the other, the grid being the main backbone.

We have about 6,000 cold stores in the country, and if we had 30% of them feeding the grid at 100kw each, it would mean the grid gets 200 MW of green electricity during sunlight hours.

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Sure, such a mechanism does not serve the purpose of continuity of power or as an off-grid reserve system – there are no batteries.

No batteries mean none of that initial cost, no recurring cost for replacing them, no worries of maintaining a separate ventilated room, compliance concerns, etc. In fact, in all likelihood, the sole maintenance cost would be that incurred for an odd clean-up of the solar panels surfaces.

The other advantage is that a meter measures what you output off your panel installation, and you get paid for the electricity generated. For example, if you consumed 20kWh in a day, and fed 10kWh into the grid, you end up paying for only half the power you consumed.

I came across this concept and though it would be a great idea for our cold stores, most of which are in rural or semi-urban areas. Most complain of the high cost of energy which bite into their operating margins.

What if each cold store was empowered to install solar PV panels, say with an average 100,000 watt output. Going as per peak power loads in such a facility, 100 kilowatts generated every hour would help a cold store’s needs, but imagine the number of batteries that would need to be maintained.

Yet this 100kw when fed into the grid, could help power the equivalent of one thousand street lights of 100 watts each.

We have about 6,000 cold stores in the country, and if we had 30% of them feeding the grid at 100kw each, it would mean the grid gets 200 MW of green electricity during sunlight hours. The panels would additionally reflect the solar incidence on the cold store roofs, reducing heat load in turn reducing the refrigeration load.

What do you say, can this be done?

Should this be done? Will the experts advise if this will make sense?

It may be pertinent to mention that 100kw of solar panels would cost about Rs. 32 lakhs, dropping 25% in coming years.

Electricity charges per 100 kW is Rs. 5,500 per day if used 8 hours every day, and is expected to go up 15% in next 5 years. www.cargotalk.in

User’s Perspective Supply Chain

Managing a Cold Chain

The Creambell way In India, the estimated icecream industry worth is Rs 4,500 crore in 2013. It is expected to grow to Rs 7000 crore in 2018. North and West India account for 70 per cent of total sales. Currently, profit margins are ranging between 20-30 per cent. However, there is tremendous shortage of cold and supply chain facilities.

ML Arora, Vice President, Devyani Foods Ind, discusses the role of requirement of these facilities and their role behind the success story of leading ice cream brand—Creambell.

Ratan Kr Paul

C

reambell Ice Cream is one of the fastest growing ice cream brands in the country. In a modest span of 10 years, Creambell has cemented its place amongst the top five ice cream players of the country.

One of the hallmarks of Creambell’s attributes is embedded in its strive for excelling in the area Cold Chain Management.

Creambell has around 12.0 lakh cft of cold stores and 300 refrigerated vehicles to reach its panIndia customers.

Currently, Creambell has three state-of-theart manufacturing plants at Baddi (Himachal Pradesh), Goa and Kosi (UP). The fourth plant is coming up in 2014 in the Eastern Sector.

“Creambell boast of world-class standards in the area of product quality. Every batch of ingredients goes through a stringent quality control, before being taken for production. The quality standards are in consonance with international norms, and no effort is spared to ensure world-class products reaches the hands of the end-users,” said Arora.

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“We are currently having a pan India retail reach of over 32,000 outlets and our 60,000 Push Carts are constantly delighting consumers all over India. Our exclusive outlets are also serving flyers at airport lounges,” added Arora. He also maintained that Creambell parlours are not only spread strategically across the nation, it is also present in neighbouring countries.

Creambell product innovation coupled with its aggressive catering strategy and approach is now sweeping the market share.

“Our multiple variants in 5 litre packs are addressing our catering business into every nook and corner of all territories we operate in.

To further stamp authenticity on our products, quality hospitals like Medicity, Apollo and Max Hospitals have chosen us to serve at their hospitals.

In the hospitality industry, our partners are hotels such as Oberoi, Leela Kempinski and The InterContinental,” said Arora.

Role of Efficient Supply Chain The supply chain is very crucial in the ice cream industry to maintain the shape, size, colour, texture and the taste of the product.

“You do the best in the manufacturing of the product and if the supply chain is broken, all your efforts are wasted. We improved the supply chain/cold chain and reduced the losses to a great extent and become a national player,” Arora asserted.

Creambell’s model of supply chain is mixed one. It has its own vehicles, dedicated vehicles from reputed transporters and take from open market in case of extreme exigency.

“However, we are not taking services from 3PL services at the moment, but planning to have in the coming years ML Arora in the future,” Vice President, Devyani said Arora.

Foods Ind According to him, there are only a few 3PL service providers at this moment and they are little costlier because of their higher admin expenses and limited business available to them. “They are in the evolution stage and expected to grow in a big way once international retailers open their enterprises in our country,” he maintained.

“We expect them to be more efficient, competitive, committed, quality-conscious and deliver in time,” he concluded. www.cargotalk.in