Cargotalk October 13

Cargotalk

South Asia’s Leading Cargo Monthly

october 2013

No.1 in Circulation & Readership

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Express Cargo Industry losing pace due to hassles in transit

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By DDP Publications

Cargo Wise

Software gets 3,600 new users

CASS Issue

IATA underlines cost benefits and efficiency

International Air Cargo

First Gainer from economic bounce back?

Cargotalk

editorial

Editor SanJeet

Cargotalk

Sr. Assistant Editor Ratan Kumar Paul Sr. Sub Editor HRitvick sen

Vol XIII No.11 Pages 56 Rupees 50 cargotalk.in

By DDP Publications

Asst. Vice President Gunjan Sabikhi

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

The future is express

T

he air cargo industry across the globe is going through testing times. And that is visible from the trends that the price-sensitive market is showing.

There are lukewarm responses to the air cargo industry in particular, though there are signs of a reviving world economy, especially in the major markets in USA and Europe. Multiple reasons, such as escalating fuel costs, increasing security hassles, over-capacity and declining yields are continuously bleeding air-cargo operators and service-providers. The scenario in India is more critical now, owing to the unprecedented slide and volatility of the Indian currency. As a result, while the export market has shown double-digit growth during the last couple of months, the same was not translated into an increase in air cargo traffic from the country. A prolonged uncertainty is looming over this segment for quite some time now. Interestingly, the immediate gainer from the surge of Indian export is sea cargo. General cargo, which is the base of cargo traffic for majority of the carriers, is now making a beeline to shipping lines.

This is happening primarily because of two factors: less cost and no urgency in view of the sluggish demand from international buyers.

Significantly, express cargo (which is essentially air cargo) is growing fast in and out of the country. Many airlines (apart from express cargo carriers) are reportedly being fed by this vertical. The industry is one of the fastest-growing segments of the logistics industry. It is poised for high

SanJeet Editor

4 i cargotalk i OCTOBER 2013

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

OCTOBER 2013

RNI No.: DELENG/2003/10642 Date of Publication: 22/9/2013

EXPRESS CARGO INDUSTRY losing pace due to hassles in transit

CARGO WISE

Software gets 3,600 new users

CASS ISSUE

IATA underlines cost benefits and efficiency

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

International Air Cargo

Sr. Marketing Co-ordinator Gaganpreet Kaur

First Gainer

Design ruchi sinha Photo Journalist simran kaur

from economic bounce back?

growth in the future, though the same is constrained by inadequate transport infrastructure and procedural delays at gateway checkpoints (airports, state border checkpoints) in addition to threats from regulatory restrictions and the economic slowdown. A study says that, in these times, major customer industries include auto components, banking and financial services, garments, pharma, telecom products and IT components.

Other segments like organised retail and e-commerce are also emerging as large customer segments. These products generate high value in revenue terms for the carriers.

Unfortunately, India does not possess the required physical infrastructure and a clear policy framework to support the fast movement of cargo from airport and check posts on the surface network. In spite of modernisation and privatisation of airports here, the transit time is still a lot as compared to other international airports. It is time to fast-track government policies for the greater interest of air cargo industry and hence the country’s economy.

Will MoCA and the Air Cargo Logistics Promotion Board take some more pro-active initiatives and fast actions?

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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 October 2013

SECTORS

Airline News

8 I AAI installs new radar

Airways witnessing gradual progress in India

National News

system at Cochin and Thiruvananthapuram Airport

IAG Cargo adds capacity to seven from six flights a week for LondonHyderabad sector Container movement from North India to Pipavav Port to get a boost

10 I GATI-KWE conferred with ‘Best 3PL Logistics Company 2013 Award’

21 I South African

Cargo Performance

34 I Airlines wise exim

cargo performance from Delhi International Airport for August 2013

35 I Airlines wise exim

cargo performance from Mumbai International Airport for August 2013

36 I Airport wise domestic

cargo performance from Indian airports for June 2013

OM Logistics honoured at Tata Motors Supplier Conference in Macau

38 I Airport wise

CRWC organises seminar on vendor management

Family Album

12 I MOCA updates on forthcoming airports in India at ASSOCHAM conference

International News

14 I TIACA Expresses

Concerns over EU Cargo Security Deadline

Logistics Services

18 I 30th Year of Skyways

Group: Family-owned Indian company thrives on values

20 I UTi Worldwide India

conferred Best HR Strategy Award

40 I BVC Group

tie-up Brinks India for door-to-door services 6 i cargotalk i OCTOBER 2013

international cargo performance from Indian airports for June 2013

42 I Saudi Arabian Airlines Cargo hosts Award Winning Evening to honour top agents

43 I Air Cargo Club of Madras organises ‘Car Treasure Hunt’

44 I ACCD’s new

Managing Committee hosts lunch to think beyond business

45 I HS Arora elected as President of ACCB at its AGM Skill Development

46 I Million Minds meet

n Cover story

22 I International Air Cargo:

Is it reviving?

The air cargo movement, that is said to be the first gainer of the economic bounce back, is still in doldrums. The latest survey published by the International Air Transport Association (IATA) in August too reveals the marginal improvement in the air cargo traffic though there is a sign of economic revival in some major and emerging markets. In India the scenario is more critical due to unprecedented fall and fluctuation of its currency in terms of dollar, an impending General Elections and huge rise of production and transaction costs. An analysis of the current and forthcoming scenario by some industry veterans…

strengthen CSR

Shipping & Ports

50 I Dighi Port: On the way to be a multimodal logistics hub

Emerging Technology

52 I CargoWise software

management colleges to promote ‘LTH-2014’

gets 3,600 new users

Green Initiatives

Exporters’ Perspective

Uttarakhand victims to

Trail: Indian Exports

48 I Gati lends support to

54 I On The Growth

witness 13% rise in August COLUMNS

Current Issues

16 I CASS will reduce

cost, enhance efficiency: IATA

Lead Story

28 I Express Cargo

Industry: Decreasing pace due to hassles in transit www.cargotalk.in

National News News in Brief

carries the inherent risk of fraud, counterfeit, mutilation and theft which increase the operational cost of the company. Significantly, recently Yes Bank has further simplified its e-Commerce, Cash on Delivery platform through its Mobile Point of Sales (MPOS) mechanism. According to Blue Dart sources, the MPOS is a first of its kind payment mechanism that uses mobile device based GPRS connectivity to facilitate debit/credit card payments and it has proven extremely beneficial for Blue Dart. Yogesh Dhingra, COO & Finance Director, Blue Dart Express informed that this solution from Yes Bank was an ideal fit in Blue Dart’s delivery system and another opportunity to add value to customer services.

n AAI installs new radar system at

Cochin and Thiruvananthapuram Airport

A

new state-of-the-art radar system has been installed by Airports Authority of India has been inaugurated at Cochin International Airport. KC Venugopal, Minister of State for Civil Aviation has dedicated the system to the nation on September 13, 2013. Implementation of radar at the airport will provide significant benefits to the airlines and travellers. The use of radar will aid the air traffic controllers to give direct and shorter routes for aircraft thereby reducing the delays for flights landing and taking off from the airport as well as minimising the fuel consumption and environmental impact.

Later, the new RL-2000 ASR (Airport Surveillance Radar) co-located with MSSR-1 RSR (Route Surveillance Radar) is supplied and installed at Thiruvananthapuram International Airport. Airports Authority of India has undertaken the project of replacing the eighteen-year old ASR and MSSR with the new state-of-art technology radar.

n Yes Bank and

Blue Dart tie up to increase e-Commerce market share

T

he Home Delivery Model of e-tailing with “Cash on Delivery” as the USP has seen tremendous growth in last few years; however, it

n IAG Cargo adds capacity to seven from

six flights a week for London-Hyderabad sector, effective October 27

I

AG Cargo recently announced increased flights between London Heathrow and Rajiv Gandhi International Airport in Hyderabad, offering the city’s booming pharmaceutical industry additional export capacity to global markets. The number of flights will rise from six to seven a week, with the new daily service starting on October 27. The route will also see capacity increased by 50 per cent with the introduction of the larger B777-200, a model which boasts increased cargo capacity of six pallets, up from the current four. The pharma industry in India is expected to reach $35.9bn by 2016, with Hyderabad a key manufacturing base fuelling this growth.

Commenting on the additional flight, John Cheetham, Regional Commercial Manager for Asia Pacific and India, IAG Cargo said, “This announcement is excellent news for businesses in Hyderabad, offering customers more cargo space and schedule flexibility than ever before. Businesses in Hyderabad are always looking for ways to connect their production facilities with markets across the globe.”

n Container movement from North India

to Pipavav Port to get a boost

R

ecently, APM Terminals Pipavav and Concor officials met at Pipavav Port to strengthen the container train operations from North India and Gujarat. The visit of the Concor officials was organised to showcase the recently-launched APM Terminals Pipavav double-stack high-cube capabilities which, coincide with the commencement of Concor’s’s double stack hub at Kathuwas (Rajasthan). The hub is a strategic facility for Concor, which is expected to spur volumes in North and North-western India for Concor and in turn for APM Terminals Pipavav. Gujarat Pipavav Port is one of India’s fastest growing gateway ports located in Amreli district of the state belonging to the AP Moller-Maersk Group.

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National News News in Brief

n GATI-KWE conferred with ‘Best 3PL Logistics

Company 2013 Award’

G

ATI-KWE was awarded as the Best 3PL Logistics Company 2013 in the large enterprise category at ‘E & NE India Supply Chain & Logistics Summit and Excellence Award 2013’ held recently in Kolkata. The Award function was organised

by Bengal Chamber of Commerce and Industry. According to the Chamber, the Award is a recognition of the companies who have made significant contributions in the field of logistics by offering best-in-class services to their clients. Vikash Khatri, Head - Product Development & Marketing, GATI-KWE, received the award on behalf of the company.

The Gati-KWE sources said that currently, the company has a reach of 99.3 per cent covering 653 districts out of 657 districts in India. The company also has a large fleet of 4,000 vehicles and tie-ups with airlines for 28 airline sectors. “Following the joint venture, GATI-KWE offers an unmatched service offering that brings in local experience with global expertise,” added the sources.

n Om Logistics honoured at Tata Motors Supplier

Conference in Macau

O

Ajay Singhal CMD, Om Logistics

m Logistics has recently been conferred with ‘Special Citation of Distinction’ to honour and recognise its extra ordinary contributions that bring value to the partnership between Om Logistics and Tata Motors. Ajay Singhal, CMD, Om Logistics, was present at the Annual Tata Motors Supplier Conference organised at Macau.

The event was graced by the presence of Cyrus Mistry, Group Chairman, Tata Sons and Karl Slym, MD, Tata Motors, along with the top management of Tata Motors. According to the Tata Motors officials, the event was to celebrate the essence of the company’s long relationship. The annual event not only aimed at creating a formidable team to beat the ever-growing competition, but more importantly to resolve and break their own limitation.

n CRWC organises seminar on vendor management

R

ecently, CRWC organised a ‘Vender Development Meet’ to develop new vendors for its warehouse, as well as to interact with existing vendors for better performance of its warehouse. The interactive session was chaired by Vinod Asthana, Managing Director, CRWC. He emphasised on developing ‘EndUser Solution’ provider for customers. A significant number of representatives of the stakeholders/services providers/vendors attended of the interactive session.

CRWC is presently operating Railside Warehousing Complexes across India.

The company is also expanding and diversifying into other related logistics segments.

CRWC also organised a seminar on communal harmony. The seminar dwelt upon the importance of healthy relationship among people to strengthen harmony and the nation. All officers and staff of CRWC attended the seminar.

n Cargo fraternity extends support to Uttarakhand

victims

R

ecently the Air Cargo Fraternity of Delhi represented by KS Kunwar, ED, ACFI; Yashpal Sharma, Director, Skyways Air Services and Sundreysh Sarup of SGE Logistics participated in a mission to the devastated areas viz Tafana, Batoli and Chameli Villages in Uttrakhand. The mission was organised by Seemant Welfare Association Delhi(SWAD) which was established by the people from the border district of Chamoli working and residing at various parts of Delhi. They reached up to these disaster affected villagers at the top of the Uttarakhand hills.

They shared the feelings and distress of these villagers and expressed sympathy towards their hardships and distributed relief material(food & blankets) and cash to the affected villagers for their emergency needs. The team also interacted with the gathering of the villagers on the school ground and promised to extend all possible help to the Chameli villagers.

10 i cargotalk i OCTOBER 2013

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National News Events & CSR

n MOCA updates on forthcoming airports

in India at ASSOCHAM conference

T

he government has decided to set up 50 new low-cost airports this year and 50 next year, with an aim to give boost to civil aviation sector and increase air connectivity to Tier-II and Tier-III cities and also able to deliver on timeframe given by Prime Minster. Speaking at 6th International ASSOCHAM Conference on Civil Aviation & Tourism, which was recently held in New Delhi, KN Srivastava, Secretary, Ministry of Civil Aviation said that the state-owned airport operator, would set up the low-cost airports in 50 cities in Andhra Pradesh, Jharkhand, Bihar, Punjab, Uttar Pradesh,

Arunachal Pradesh, Assam, Madhya Pradesh, Rajasthan and Maharashtra.

Later, on September 10, the ministry called a meeting of ministers and secretaries of states to finalise policy of regional connectivity.

The conference was well-attended by the industry practitioners related to travel and tourism, cargo and logistics services.

Inaugurated by Chandresh Kumari Katoch, Union Minister for Culture, the Conference had three business sessions on Regulatory Challenges, Regional and

remote Connectivity and Air cargo Industry Scenario. The session on Air Cargo was addressed by K Narayan Rao, Chairman, Assocham Civil Aviation Committee; Kapil Chaudhary, Secretary, AERA; Pradeep Panicker, CCO, DIAL and Deepak Dadlani, Advisor, ACAAI. At this conference, ASSOCHAM felicitated several companies for their outstanding contribution towards the aviation, tourism and air cargo logistics industry. Safexpress won the award for “Best Air Cargo Logistics Company”.

n Siddhi Vinayak Logistics

celebrates Drivers’ Day

S

iddhi Vinayak Logistics recently announced the launch of ‘Drivers’ Day’ campaign, a one of its kind CSR initiative in appreciation of truck drivers. Actress Karisma Kapoor and industry veterans graced the occasion in support of the noble cause.

As part of its CSR initiative, the company celebrated as ‘Driver’s Day’ on September 17 to recognise the hard work and contribution of thousands of drivers towards the growth of the logistics sector in India and their role in nation-building.

Commenting on the occasion, RC Baid, Chairman & Chief Mentor, Siddhi Vinayak Logistics Ltd. said, “The Logistics sector is the backbone of the Indian economy, 12 i cargotalk i OCTOBER 2013

and drivers play a pivotal role in shaping the future of this industry. Our company is very concerned about the situation of Indian drivers who face a serious challenge as the infrastructure, security and support provided for drivers in India is close to non-

existent. There is pressing need to orient these drivers, accord them the security, dignity and respect they truly deserve for their relentless day-to-day struggle and contribution towards economic development of the country.” www.cargotalk.in

International News Trade Associations

TIACA Expresses Concerns

Over EU Cargo Security Deadline The International Air Cargo Association (TIACA) expressed concern that the new EU Regulations on cargo security, which will be effective on July 1, 2014 fall outside industry goals of a common, unified approach to global security standards. Although TIACA welcomes the European Commission’s recent meetings with industry stakeholders in preparation for the launch of the new regulations, it says, much work remains to be done.

U

nder the new EU rules, all carriers wishing to transport cargo or mail into the EU/EFTA from a non-EU/ EFTA airport must ensure that an EU aviation security validation of their cargo and mail operations has been carried out, at each such airport, by an independent expert. Successful independent validation of a carrier’s non-EU airport operations will allow the carrier to be designated as an ‘Air Cargo or Mail Carrier operating into the Union from a Third Country Airport’ (ACC3). Airlines that have not obtained the necessary validation before July 1, 2014 will therefore not be allowed to continue transporting cargo or mail into the EU. “While the EU views these ACC3 regulations as an important step towards ensuring a more secure and efficient supply chain over the long term, there are significant challenges to implementing them so quickly. Although we welcome the

It is essential that airlines and cargo handling organisations should obtain validation before July 1, 2014, in order to continue transporting cargo into the EU, but they should advise the EU immediately of any impediments” Oliver Evans

Chairman, TIACA

14 i cargotalk i OCTOBER 2013

European Commission’s recent outreach to industry stakeholders, there is still little consistency among EU/EFTA Member States regarding the implementation process, and significantly more outreach is needed between the EU and non-EU civil aviation authorities,” stated Oliver Evans, Chairman, TIACA. TIACA supports the process of developing standards on a global, rather than regional or unilateral basis. “We also fully support recognising the audit methods of other countries’ civil aviation authorities, similar to the mutual recognition between the EU, Switzerland, the USA, and Canada as a logical means to accomplish global security effectively and efficiently,” said Evans. According to the association, it is critical to find ways forward that enhance security but which do not disrupt vital commercial air cargo flows.

TIACA appeals to the European Commission to maintain vigilance over the regulation’s implementation and continue engagement with the industry, in order to avoid the air cargo supply chain being disrupted. “It is essential that airlines and cargo handling organisations continue to take steps to obtain validation before July 1, 2014, in order to continue transporting cargo into the EU, but they should advise the EU immediately of any significant impediments to undertaking the validation process,” observed Evans. He also pointed out that as airlines of different nationalities mostly operate out of multiple user facilities in foreign countries, validation and accreditation should be a matter of international recognition to avoid the huge cost and disruption of multiple audits.

TIACA has expressed its commitment to participate in continued dialogue between the European Commission and industry stakeholders on the development of risk-based air cargo supply chain security. www.cargotalk.in

Industry Associations Current Issues

IATA

CASS will reduce cost, enhance efficiency: The issue of IATA’s CASS (Cargo Account Settlement System) implementation in India has created commotion among the agents’ community. In their latest statements in Cargo Talk (September 2013 issue), ACAAI raised some points pertaining to CASS. As an industry platform, we present explanations from Amitabh Khosla, Country Director India, IATA. Cargotalk invites more viewpoints on this important issue. n Ratan Kr Paul

CT:

According to the fact sheet, the CASS Programme helps airlines and cargo agents to reduce costs, and at the same time improve efficiency. However, the Air Cargo Agents Association of India (ACAAI) has maintained that CASS will not be beneficial for the air cargo agents in India (please see Cargotalk September 2013 issue). According to ACAAI, implementation of CASS is a unilateral decision of IATA. Also, they say that the terms and conditions of IATA are ‘inequitable and unfair’ to the forwarders.

What is your opinion?

We are aware

Khosla: that ACAAI has

a different view on CASS. The fact is that CASS has been serving airlines and agents since 1979, and is now operational in over 80 countries around the world.

CASS processes over 18 million air waybills each year on behalf of over 300 carriers and general sales agents, sending billings to over 8,000 agents and freight forwarders around the world.

parties. Through a single platform, agents can receive common layout invoices from all participating carriers, have a standard process and tool to query any billings, and process payments efficiently as a single payment is made that will cover all carriers.

CT:

ACAAI mentioned that most of Indian air cargo agents have already automated operations. ACAAI has also introduced technology platform called UPLIFT (Universal Platform for Logistics and Integrated Freight Transport), an EDI platform or CCS for the air cargo stakeholders. Hence, they say CASS is not required from adoption of technology’s point of view as well.

ACAAI has done a

Khosla: lot of good work to

increase the use of technology within the Indian air cargo market. UPLIFT and CASS are complementary services with little overlap. UPLIFT Amitabh Khosla provides a tool to increase Country Director - India automation with the agents’ IATA operational activities. On the other hand, CASS enhances the technology interface between carriers CASS has been introduced under the and their agents in the transaction billing auspices of Resolution 851, which has process. existed for several decades. Every change to the Resolution is discussed within the How are you addressing the IATA / FIATA consultative Council, of concern of ACAAI on adequate which ACAAI is a long-standing member. data protection arrangements at the IATA ACAAI has argued that there is no system? requirement of CASS in India to CASS has a long standing improve cash flows in collecting funds, history of operational success since in India the success rate of agent and processes millions of transactions payments to airlines has been on-time and each year. Data integrity is of paramount in full for last 40 years without CASS. importance and the highest level of CASS isn’t just about payments. security is built into CASSlink, which is CASS is an industry-based tool the internet-based data processing and designed to make both the invoicing and customer management system for CASS, to settlement process more efficient for all ensure that data is fully protected.

CT:

CT:

Khosla:

Khosla: 16 i cargotalk i OCTOBER 2013

www.cargotalk.in

Logistics Services Success & Achievements

rd ) along with Team p SL Sharma (3 from left

Skyways

30 Year of Skyways Group th

nd left) adressing the people p Yashpal Sharma (2 from

s e lu a v n o s e v ri th y n a p m o c n Family-owned India Skyways Group completed its 30th year of operations on August 8, 2013. In an exclusive interview with Cargotalk SL Sharma, CMD and Yashpal Sharma, Director reveal the success mantra of a family-owned Indian freight forwarding company. Starting with a small office and a team of five members at Nehru Place, New Delhi, the Group is now one of the leading freight forwarders in India with presence in 11 cities in the country.

18 i cargotalk i OCTOBER 2013

H

eadquartered in New Delhi, Skyways Group is one of the leading freight forwarders in India and has its presence in Ahmedabad, Bangalore, Bhadoi, Chennai, Hyderabad, Jalandhar, Jaipur, Kolkata, Mumbai and Pune. Recently, it has expanded its operations internationally and has opened an office in Frankfurt in 2012. It has now strength of over 200 employees.

“I feel the success of a company depends largely on its values, ethics, commitment, customers and team members. From the inception, we always ensured that these five attributes were given the highest importance. Our dedicated team and customers have always stayed with the company, due to our values and ethics. This continued connection has ensured that the company has grown consistently over the past three decades,” said Sharma. Skyways believes in short and long-term goals.

According to Sharma, the periodical review

of the plans ensures the company never loses sight of its goals. “We involve our Senior Managers in the effective creation of the plans. Each and every team member including the promoters has a role to play, and they ensure they carry out their role to perfection, while respecting the roles performed by other team members. We have always believed in vertical growth and that helps the company through rough waters, if any,” he added.

Past and Present

According to Sharma, the world of logistics has changed drastically over the years.

Since the formation of the company in 1983, the needs and demands of customers and the industry have changed drastically. Customers had little options and competition was very little in those years. Though, execution of shipments took much time and the transit took far longer than today. The communication is one area which has seen a world of change. www.cargotalk.in

Logistics Services Success & Achievements

It used to take hours to put a message across to someone and now the same can be done in a matter of seconds.

Over the years, the role of a forwarder has expanded into various related activities. The customers expect a one-stop shop and want all facilities to be provided by the same service provider. From being a mere broker or a forwarder, now the service provider is known as a Logistics Service Provider (LSP) and should offer the full spectrum of services.

should bring more efficiency and discipline and not just a numercial growth” said Sharma.

The Generation Next

“All family-owned businesses start with the passion of one entrepreneur (SL Sharma). The growth of this company over the years SL Sharma depends on the principles CMD and values of this person, Skyways Group and subsequently they are passed on to various team members. He ensured the team and further encouraged other family Message to young entrepreneurs members follow these effectively over “The world is becoming highly competitive the years. Another aspect of growth and commercial. At times, the personal for family-owned businesses is the touch is seen to be missing and so are acceptance to ‘change’. The world the values. Everyone only talks about changes very quickly now, and one numbers. If your customer wins more needs to adapt to these changes,” shared business, you will get an automatic growth Yashpal. In his opinion, the companies without looking for new customers. If you who do this will surely grow and that is are sincere and committed to your work, what Skyways has done effectively— results are sure to happen. Professionalism ‘Evolve and change constantly’.

“All Indian companies will need to either create their own niche or scale up to compete with the global players,” he said.

Yashpal also mainly believes in organic growth. “In the initial years, it is always advisable that companies grow organically.

This makes them get a better grip of the business, and get the ‘connection’ with their customers and suppliers. They are also able to create a brand through this,” he argued. According to him, after some years and reaching a certain size, a bigger growth requires each company to look at more options. “One of the high growthrate options is the inorganic route. We, as Skyways, have spent 30 years in business growing on our own. We are now looking at opportunities to acquire certain strategic businesses over the next 5 years,” he underlined.

Currently, Skywas offers an array of services to its customers that include Air Freight, Ocean Freight, Custom Brokerage, Fairs & Exhibitions, Door-to-Door and 3PL / Contract Logistics.

UTi Worldwide India

Conferred Best HR Strategy Award

U

Ti Worldwide India has recently been recognised at the 4th Asia’s Best Employer Brand Awards 2013 held in Singapore, amongst over 600+ companies who participated in these awards across various categories this year. The award for ‘Best HR Strategy in Line with Business’ was given to UTi Worldwide, India, for their commendable HR initiatives.

20 i cargotalk i OCTOBER 2013

The ‘4th Asia’s Best Asia where its HR, as a Employer Brand Awards’ function, has contributed is a well-known forum in immensely by aligning the the HR conclave. These HR strategy with Business. awards are organised every year jointly by Employer Commenting on the award, Branding Institute, Rohit Hasteer, Director, World HRD Congress People Management & Stars of the Industry & Human Resources Group and is endorsed by Indian Sub-Continent, Asian Confederation of UTi Worldwide India, Rohit Hasteer Businesses. The Employer said, “We at UTi Director, People Management have centred our HR Branding Institute is a & Human Resources - Indian virtual organisation where strategy on the three Sub-Continent senior HR leaders from pillars of transparency, UTi Worldwide India over 100 partner countries collaboration and interact in the cyberspace accountability with the to share the best practices in Employer underlying mantra being to make the Branding and reward companies for HR and the senior leadership team more their outstanding efforts. approachable. The initiatives taken by us may be basic hygiene related when The award for ‘Best HR Strategy in it comes to service industry. However, Line with Business’ recognises the such initiatives are unheard of in the contribution of an organisation across logistics industry.”

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Airline News Regional Focus

South African Airways

Witnessing gradual progress in India South African Airways (SAA) is the National flag carrier and largest airline of South Africa. It has a strong network of important destinations within the Republic of South Africa, regional African destinations and is a gateway hub to South America over Sao Paulo and Buenos Aires.

S

AA has the largest network in RSA and Africa operating schedule freighter services to many airports, besides regular passenger flights and 11 weekly flights between Johannesburg and Sao Paulo with A343/ A332 aircraft and three weekly flights between Johannesburg and Buenos Aires with A343 aircraft. SAA also has a fleet of four dedicated cargo aircraft (two Boeing 737-300Fs and two Boeing 737-200Fs).

The airline started its operation in India as an online carrier from 1995 and now operates daily flights from Mumbai to Johannesburg with A332 aircraft having weekly capacity of about 100 tonnes.

SAA announced an addition to its existing Johannesburg-Mumbai frequency

FACT-SHEET SAA’s cold rooms cover an area of 156 m2 and are divided into five sections with a storage capacity for 38 pallets or 114 tonnes.

SAA is the only direct carrier between Mumbai and Johannesburg.

The route is being serviced with an Airbus A330-200 with a cargo capacity of 15-16 tonnes per flight. www.cargotalk.in

(four flights a week) from June 16, 2012.

Due to a stronger demand on this route, one more frequency was added from August 21, 2012. The frequency was further increased from six a week to daily from October 4, 2012.

The gradual increase of frequency on Johannesburg- Mumbai route was prompted by the consistently huge demand. “The increase in frequencies echoes SAA’s commitment to the Indian market. This is also SAA’s response to market demand as over the past three years, where there has been a consistent growth in the market between Southern Africa and India,” said the airline sources.

SAA is the only direct carrier between Mumbai and Johannesburg. The route is being serviced with an Airbus A330-200 with a cargo capacity of 15-16 tonnes per flight.

Service Offering

SAA has a commendable storage and logistic facilities, including Unit Load Devices (ULDs). For those who plan to use the airline’s services on a regular basis, it offers frequent freighter programme (applied to South Africa based market only).

Its hub at Johannesburg International Airport SAA Cargo offers a 23,830 m² ground and first floor semi-automated warehousing with dedicated Build Up Unit

acceptance and delivery areas. Exports build up and imports check-in bays are fully fitted with roller-beds to ensure proper handling of ULDs. SAA’s cold rooms cover an area of 156 m2 and are divided into five sections with a storage capacity for 38 pallets or 114 tonnes.

SAA has a very robust IT system for cargo operation. To ensure safe and efficient movement of cargo, SAA cargo employs some of the most technologically-advanced systems and facilities. It not only provides the exact status of cargo to the airline, but also to the shippers.

SAA Cargo also offers freight forwarders an electronic invoicing solution. By registering on the site, they can access the faster and more accurate electronic waybill (e-waybill) at their own convenience, and locate reverse collections with greater ease.

SAA Cargo implemented an electronic air-waybill system for the domestic market, offering customers a fast lane for cargo check-in. In addition, SAA Cargo has introduced a new integrated web-based system called i-Cargo, which keeps the businesses up to date with technological developments within the cargo environment. The system replaces the legacy system called Safron and Zebra.

OCTOBER 2013 i cargotalk i 21

Cover Story International Air Cargo

The air cargo movement, that is said to be the first gainer of the economic bounce back, is still in doldrums. The latest survey published by the International Air Transport Association (IATA) in August too reveals the marginal improvement in the air cargo traffic though there is a sign of economic revival in some major and emerging markets. In India the scenario is more critical due to unprecedented fall and fluctuation of its currency in terms of dollar, an impending General Elections and huge rise of production and transaction costs. An analysis of the current and forthcoming scenario by some industry veterans‌ n Ratan Kr Paul

International Air Cargo

Revival 22 i cargotalk i OCTOBER 2013

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T

he IATA study says that airline cargo businesses are starting to see an improvement in forward looking demand indicators, but continued increases in capacity have placed downward pressure on yields and revenues over recent months.

The demand environment and drivers are showing some positive signs, despite sluggish world trade growth and high jet fuel prices. There are indications that finished goods inventories are falling and business confidence has started to increase in Q3 after several months of no change.

Consumer confidence in Europe is at the highest levels since 2011, following the first quarter of Eurozone growth in Q2 after 18 months of contraction, and US consumer optimism continues to increase.

Some of this improvement is being offset by slowdown in the Chinese economy where confidence has slipped, suppressing demand for air-freighted commodities like semi-conductors. But most notably, the better demand conditions are being countered by capacity increases which have caused yields to decline. The trend could continue if future demand fails to meet capacity expansion in coming months.

Nonetheless, cargo heads surveyed in July 2013 are broadly optimistic, saying they expect yields to remain stable and volumes to increase over the next 12 months.

Or a Case of Uncertainty? www.cargotalk.in

OCTOBER 2013 i cargotalk i 23

Cover Story International Air Cargo

IATA Insights

n The global economic outlook for 2013 remains weak, despite recent positive improvements in the Eurozone n Traffic Growth has shown some early signs of improvement, in line with positive developments in business confidence, but growth remains weak and the upturn has been modest so far n Demand Environment has started to show signs of improvement. Business confidence has picked up although world trade growth remains slow, several emerging market regions continue to see solid trade expansion n Demand Drivers look a bit better.

Consumer confidence in Europe is now the highest it has been since 2011 and US consumer optimism is also on the rise n Weakness in emerging Asia is reflected in the decline in demand for air-freighted commodities like semiconductors. But in Japan, economic stimulus has helped support capital investment n Freight load factors remain weak as capacity continues to rise n Decline in air freight rates has intensified over recent months n Although there has been some improvement in air freight demand over recent months, capacity growth has kept load factors low n Owing to surge in jet fuel, cargo profitability continues to face downward pressure from high input costs n However, the outlook for air freight is broadly optimistic according to heads of cargo surveyed in July 2013. According to them, traffic volumes to increase over the next 12 months but yields to remain unchanged

speed than in the years before. “The country will also need a solid development plan for industrial production to achieve sustainable economic growth and wealth,” he said.

He does not see an immediate turnaround of the Indian market. “The current rupee development reflects to some extent the expectations of the future of trading. In fact, the rupee development is not the problem, but a symptom of the problem.

However, while India is facing some head winds, there might be some positive factors which will stimulate economic demand in US and Europe, which will have impact on the Indian exports,” he argued.

Commenting on the demand side in future, he maintained that the pharma sector is expected to continue its growth in the next twelve months as well. “It remains to be seen, however, to what extent competitive pressure and further government regulations will affect the development of the pharmaceutical industry in India,” he was quick to make a caution.

24 i cargotalk i OCTOBER 2013

Keki Patel, Cargo Manager, India and Nepal, Emirates too appeared to be cautious in making any forward looking statement. “The air cargo market from India is still gloomy, despite some sign of recovery in the US and EU market.

Ideally there should have been a surge in air cargo export because of the decline of the value of ` against US$. However, we are witnessing inconsistency of air cargo

Nevertheless, “Lufthansa Cargo remains committed to the Indian market.

Our capacity offer will continue to meet the requirements of the market and so is our commitment to highest quality standards,” said Hernig. Lufthansa Cargo is investing in a fleet of new Boeing 777F, the world’s most efficient and environmentally friendly freighter, in a new logistics hub at its home base Frankfurt, which will further improve capacities and transit times.

“In addition, we will continue our drive to push for e-cargo,

Indian Market Scenario

According to Carsten Hernig, Regional Director, South Asia and Middle East, Lufthansa Cargo, there was a decline in air cargo growth rates at Indian airports in the past two years. This development has two reasons—a deterioration in the global economic environment and international and domestic investors have lost a degree of trust into the economic policies of the government and hence are holding back their investments. This is in particular hurting the growth of air freight since the industrial production is growing with lesser

in particular for e-booking and e-AWB implementation in India in order to modernize and ease the business transactions of our industry. The implementation of CASS in the Indian market will be another key focus,” shared Hernig.

Ashish Kapur Regional Cargo Manager-S. Asia, Middle East and Africa, Cathay Pacific Airways

Carsten Hernig Regional Director, South Asia and Middle East, Lufthansa Cargo

Keki Patel Cargo Manager, India and Nepal, Emirates

JP Singh Area Cargo Sales & Operation Manager-India, Thai Airways

Anurag Birla MD, Air Shagoon

Cyrus Katgara Partner, Jeena & Co

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Cover Story International Air Cargo

trafficfrom Indian airport, and which is a declining mode in general,” he underlined.

Except pharmaceuticals, chemicals and perishables, Emirates has witnessed decline of volume for other traditional goods like auto, telecom and garments. According to him, because of the price factor and less urgency from customers, air cargo is being shifted to sea transport.

Taking cue from Patel, JP Singh, Area Cargo Sales & Operation managerIndia, Thai Airways, said that because of the unstable ` and government policies air cargo, export hadn’t seen any improvement. In the near future too, there is very bleak possibility of any revival. “At this time, we are struggling for maintaining the load factor for our allotted capacity for cargo. Fortunately we are able to maintain it at an satisfactory level, thanks to the increase in of courier volume. We are also focussing on yield rather than volume, and of course new clients to maintain our revenue flow,” he added.

Ashish Kapur, Regional Cargo Manager-S.Asia, Middle East and Africa, Cathay Pacific Airways, maintained that though the overall market scenario is not very promising, the airline witnessed 26 i cargotalk i OCTOBER 2013

growth primarily because of additional capacity it has for this market. Cathay Pacific Airways is enjoying 90 per cent load factor in its freighters and about 80 per cent in passenger aircraft. “We are confident that we will be able to sustain our load-factor and growth in the months to come as well,” he emphasised. He, however, declined any possibility of increasing capacity at this moment, because of the prevailing uncertainty in the market. In addition, managing the yield is very challenging now.

“At present, we have the right amount of capacity across the country and especially from Hyderabad, which is the emerging hub for pharmaceuticals,” said Kapur.

“In the first quarter of 2013, the market trend was favourable to all those who are into cargo business. However, in the prevailing circumstances wherein the Indian rupee is fluctuating against the US dollar, the market become volatile,” said Anurag Birla, MD, Air Shagoon.

According to him, both importers and exporters have interest in the promotion of their products, and there are chances for further enhancement in their cargo productivity. Therefore, in order to meet the growing overseas customers’ demand, the shortest way is to transport the same by air.

However, there are still problems prevalent in order to fulfill the requirements in time.

Cyrus Katgara, Partner, Jeena & Co also highlighted that air cargo handles roughly 25 per cent of the total exports and import and is very critical for developing exports of products with high value addition. However this sector does not get the requisite attention.

“Our facilities remain extremely poor particularly in Mumbai and Delhi that account for over 50 per cent of the export by air. Presently, it’s the indirect costs due to poor infrastructure and delays causing huge damage in terms of tangible and intangible costs such as inventory carrying, uncertainties in meeting delivery schedules and loss of confidence of buyers,” he added.

“With such delays, air freight mode coupled with increasing costs due to currency depreciation, more and more buyers are turning to sea mode of transport,” explained Katgara. The situation in imports is much more critical and causes higher imports costs for the inputs and compounds the factors present in the economy causing delays and uncertainties in the production cycles. www.cargotalk.in

On the Move Appointments

Samar Nath is new DHL Global Forwarding CEO (India) Global Managing Director for India & South Asia DHL Forwarding, at CEVA Logistics and Managing Director the air and ocean freight specialist within Deutsche Post DHL, announces the appointment of Samar Nath as Chief Executive Officer and Country Manager for its Indian operations, effective September 10, 2013.

Having served for more than 15 years with various organisations, Nath brings a wealth of experience and knowledge to the position. Prior to this appointment, he has worked as Executive Vice President and

for India & South Asia at APL Logistics.

In his previous roles, he has an impressive track record in leading companies through various growth stages with a strong proficiency in business development, establishing startups and business integration.

Nath holds a Bachelor’s degree in Commerce and an Executive MBA in Marketing Management from Jamnalal Bajaj Institute of Management, University of Mumbai. He will be based at the company’s corporate office in Mumbai.

Dr. Karl-Rudolf Rupprecht’s contract extended Cargo AG’s was a senior engineer at the Lufthansa Supervisory Board has university’s Hydraulics and extended the contract of Executive Board member Dr. Karl-Rudolf Rupprecht. The 57-year-old, who has headed Operations at Lufthansa Cargo AG since April 2011, has been reappointed for two more years until March 31, 2016.

As Executive Board Member Operations, Dr. Rupprecht is responsible for the Flight Operations & Transport Management, Freight Handling and Security & Environmental Management divisions.

Born in Kassel in 1955, the manager has been employed at Lufthansa for 25 years.

After obtaining a mechanical engineering degree at Aachen Technical University, he

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Pneumatics Institute, where he earned his doctorate in 1988. Dr. Rupprecht joined Lufthansa in the same year, initially as an assistant to the Head of Aircraft Maintenance and Overhaul in Frankfurt.

Between 1989 and 1994, he held various managerial posts in the same division. At the beginning of 1995, Dr. Rupprecht moved to Hamburg as Corporate Manager in Corporate Development. In July 1995, he was appointed Deputy Head of Marketing and Sales at Lufthansa Technik. From October 2000 to September 2004, Dr. Rupprecht was also Managing Director of Lufthansa Technik Logistik GmbH.

SARINI SACHDEVA S

arini Sachdeva is the CEO of Cargo Channels India.

Prior to this, she held various key assignments including Director Sales & Marketing (Indian Sub-Continent) for an Austrian freight forwarder cargo partner, Director (Sales) Indian SubContinent for HTL Logistics, National Route Development Manager for Europe-Germany and Benelux of Hellmann Worldwide Logistics –India.

Sarini started her career with Apex, a division of Aptech and thereafter worked with NIIT, prior moving into the field of international freight forwarding and logistics 15 years ago. Starting as a Deputy Manager- Sales with the French MNC Geodis Overseas Pvt Ltd, Sarini worked with the US freight-forwarding company BAX Global Ltd as a Business Development Manager and National Route Development Manager for Europe.

OCTOBER 2013 i cargotalk i 27

Lead Story Emerging Segments

Express Cargo Industry

Decreasing pace due to hassles in transit The growth of the express cargo industry is supplemented by several emerging verticals like organised retail and e-commerce. However, plenty of inherent challenges have been creating obstacles before industry players, resulting in poor performance, despite huge opportunities. Cargotalk spoke to a few trade practitioners to underline the key issues.

28 i cargotalk i OCTOBER 2013

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Lead Story Emerging Segments

A

Vijay Kumar COO, EICI

Anil Khanna MD, Blue Dart Express

Areef Patel Executive Vice Chairman, Patel Integrated Logistics

recent study by CRISIL Risk and Infrastructure Solutions (CRIS) and Express Industry Council of India (EICI) reveals that while multiple industry segments use express delivery services, certain industry segments like auto components, banking and financial services, IT components, readymade garments, pharmaceuticals, and telecom products are the largest customer segments for the express industry in India.

The business from other industry segments like organised retail and e-commerce is expected to grow in the future as these industries grow in reach and size. The express industry serves the need of domestic as well as international business through their global networks.

The study also unveiled that the Indian express industry size was estimated at `10,870 crore (about US$ 2.2 billion) in 2011-12 and the industry is expected to grow at 17 per cent per annum to `17,450 crore (about US$ 3.5 billion) by 2014-15.

As a labour-intensive industry, the express industry is estimated to presently employ about 11.9 lakh persons, directly and indirectly. Based on the growth estimates for the industry, the employee base of the industry, direct and indirect, is expected to grow to 17.2 lakh by 2014-15.

According to the study, the express industry is a fragmented one with large number of players, estimated at about 2,500.

However, there has been considerable consolidation of the industry over the years and the large organised players, including government postal department, presently have about 72 per cent share of the

Shipment profile: Share of domestic & international destinations

Source: Primary Survey 30 i cargotalk i OCTOBER 2013

We have challenges of space constraints for express operators at Mumbai airport. Plus, there are charges for such infrastructure by various operators across the country�

Vijay Kumar COO, EICI industry revenue with the semi-organised players estimated to have another 15 per cent share while smaller players have the residual market share. The larger players have presence in national and international locations. The medium-size players have regional focus with limited presence across other regions. The smaller players are mostly unorganised and have networks limited to few cities and towns.

Opportunities & Challenges

Vijay Kumar, COO, EICI, says that Ecommerce is a segment which is gaining strength in the express delivery services.

However, the major challenges that the industry faces continue to be lack of good infrastructure as well as regulatory challenges. Road and airport infrastructure remains major issues. “We do have challenges of space constraints for express operators at Mumbai airport. Added to that is the huge costs charged for such infrastructure by various operators across the country. In fact, this would be a major barrier to growth of the express industry,� he said. In terms of regulatory barrier, the major issues are on the state regulatory front leading to substantial loss of time and consequent transaction cost increases.

According to Anil Khanna, MD, Blue Dart Express, the express industry is a key enabler in facilitating trade and commerce because of the time-sensitive nature of most goods and the increasing demand for reliability, efficiency and speed. Commenting on the present market scenario for express cargo he maintained that there are certain sectors that do not get impacted by a slowdown - sectors like life sciences and health care, the after-market segment of the auto sector and high-growth verticals like e-tailing. www.cargotalk.in

Currently, the industry faces infrastructure issues, high operating costs, bottlenecks in state border clearance and other disadvantages like the Carriage by Road Act, Local Body Tax, etc. This is coupled with high fuel costs, controversial Airport Development Fees (ADF), regulatory hurdles, delays in state border checkpoints and customs, etc.

The air infrastructure in the country is inadequate in terms of cities covered and cargo handling capacities leading to significantly higher dwell-time as compared to international standards.

Insufficient aircraft bays, truck docking stations, limited space for express terminals, clearance processes lead to delays and impact operational cost. Post the privatisation of major airports, the operating cost at those airports have also multiplied manifold without any significant improvement or differentiation in services offered. “The Aviation Turbine Fuel (ATF) price with its high price volatility and multiple rates across states directly impacts operating margins. The drastic fall in the value of rupee versus the dollar also affects our business planning,” he observed.

In his opinion, to enjoy the full benefits of integrated air-express services, the government needs to address cumbersome customs clearance procedures, and restrictions on investment in ground transportation operations. “While the Airports Economic Regulatory Authority (AERA) is focussing on various matters related to airport economics, there is no designated official to study issues that govern economics of the air cargo industry, especially how airport operators levy

The Aviation Turbine Fuel (ATF) price with its high price volatility and multiple rates across states directly impacts operating margins” Anil Khanna MD, Blue Dart Express

Rakesh Shalia Managing Director - Marketing Middle East, Indian Subcontinent & Africa, FedEx Express

charges and change them at will,” Khanna observed. “The ministry should address the increasing cost of ATF and also give it a ‘declared goods’ status to attract a uniform VAT of 4 per cent across India,” he added.

Areef Patel, Executive Vice Chairman, Patel Integrated Logistics, viewed that the game-changers for express cargo industry are the changing demographics, infrastructure development, process efficiency, and inter-sector coordination.

The express cargo and logistics industry is the backbone of the economy, and although this sector has witnessed significant change over the past years, it hasn’t kept pace.

“There is a need to speed up the pace and bridge the gaps that exist in each segment of this sector. There has to be a paradigm shift which will eliminate hurdles and promote smooth functioning and uniform progress across segments in the Indian logistics scenario,” he said.

Rakesh Shalia, Managing Director, Marketing, Middle East, Indian

Diljeet Singh Chief Sales & Marketing Officer, GATI-KWE

Deepak More Managing Director, SD Cargo

Growth outlook for the express industry in India

There has to be a paradigm shift which will eliminate hurdles and promote smooth functioning and uniform progress across segments in the Indian logistics scenario” Areef Patel Executive Vice Chairman, Patel Integrated Logistics www.cargotalk.in

Figures in Rs. Crore OCTOBER 2013 i cargotalk i 31

Lead Story Emerging Segments

Due to inadequate infrastructure, the industry is not really able to utilise its full potential.

For instance, airports are a big challenge as they are congested” Rakesh Shalia Managing Director, Marketing, ME, Indian Subcontinent & Africa, FedEx Subcontinent & Africa, FedEx underlined that with evolving markets, customers are looking for ‘value-added services’ in express logistics sector. More and more customers want to deal with single service provider for all their requirements as it is simpler to integrate with their systems.

“The biggest challenge faced by the express cargo industry is the infrastructure. Due to inadequate infrastructure, the industry is not really able to utilise its full potential. For instance, airports are a big challenge as they are congested”, Shalia said.

Diljeet Singh, Chief Sales & Marketing Officer, GATI-KWE was of the opinion that increased globalisation has led to highly competitive markets, thereby resulting in shortening product life-cycles. In such scenario, the success of the company is highly dependent on timely delivery of its products and customer support throughout transit. As a result, this has increased the need for express logistic companies that can offer such support coupled with additional VAS – door pickup/online tracking/ payment on delivery, etc. Moreover, the E-tailing boom has brought more focus on the concept of express delivery services than ever before. “Apart from infrastructure challenges, skilled manpower scarcity is another challenge. As the industry is still in an evolving stage, it does not attract quality manpower. The biggest challenge lies in recruiting workforce for middle level or shop floor level,” said Singh.

Highlighting the current trends in the express cargo market Deepak More, Managing Director, SD Cargo highlighted that the express logistic market has indicated a very good encouraging upward trend after a long period. Gazing at the scenario and customer cost-effective 32 i cargotalk i OCTOBER 2013

As the industry is still in an evolving stage, it does not attract quality manpower”

The express logistic market has indicated a encouraging upward trend after a long period”

Diljeet Singh Chief Sales & Marketing Officer, GATI-KWE

Deepak More Managing Director, SD Cargo

approach, new avenues of express logistics routes such as rail and surface express have got a boost. “It’s a customer-oriented market where they require single-window solutions to meet their logistics requirements.

It’s a great challenge to cope up with customer’s expectations,” More said. He also pointed out that margins are shrinking to maintain the service levels. Challenges are in terms of rising fuel prices that is a major component in costing. Costing has also gone up due to various airportlevied charges, which again is varying from airport to airport. “Major concerns towards airport-levied charges are, in spite of paying these charges, there are no proper infrastructure and facilities, resulting in delay of retrieval of cargo thus impacting the lead-time,” he lamented.

Pragmatic Solutions

Infrastructure up gradation and looking at express industry as a vital part of the economy would be the major task before the country. “As part of our trade facilitation initiative, we (EICI) set up Common User Express Terminals at Mumbai, Bangalore and Delhi terminals. We have a PPP with Indian Customs to jointly develop EDI for express clearances. We have been working with various government and other agencies to ensure better facilitation of the trade,” Kumar stressed.

“The implementation of the proposed uniform Goods & Service Tax (GST) may see a shift in trend in the movement of goods and will make it economically viable to simplify distribution network and result in economies of large scale operations,” said Khanna.

“I think this industry is very competitive, has witnessed significant growth, and can progress further, provided the Government of India works handin-hand towards reforming transparent and regulatory policies, better labour

and outsourcing laws, viable solutions, innovative management, dedicated freight corridor, introduction of better financial instruments, electronic toll collection, development of national highways, improved and urban infrastructure in the hinterland, better facilities in terms of equipment and advanced technology introduction and adoption in this segment,” Patel supplemented.

According to Singh, automation and policy changes are two immediate pragmatic solutions to the problems being faced. On the technology front, using electronic toll gates with automated clearance processes could considerably save time, while a more unified policy and tax structure across states will greatly help in reducing delays. In addition, said Singh, “The Government needs to have a single uniformed policy across the country; this will reduce delays and increase the average speed of trucks significantly.

Also the government must push for faster implementation of GST.” Shalia urged for entry of private players. “If the government brings in attractive policy for private players to build the infrastructure on PPP model, it can do wonders for the express cargo industry.

Delhi airport is an excellent example of PPP model. Though the operational charges have gone high for airlines, express cargo will benefit the business in the long run and increase efficiency of the companies,” he argued.

He also emphasised on early implementation of GST. “It will not only simplify our business model but will also reduce paperwork and streamline our business,” he maintained. More also stressed on a uniform government policy pertaining to documentation, across the nation for hassle-free movements of goods.

n Ratan Kr Paul (with inputs from Anita Jain) www.cargotalk.in

Cargo Performance Export/Import

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

1 Cathay Pacific 2 Jet Airways 3 Emirates 4 Air India 5 British Airways 6 Singapore 7 Thai Airways 8 Lufthansa Cargo Airline 9 Qatar Airways 10 Uni-Top Airlines 11 Fedex Express Corpation 12 Etihad Airways 13 Swiss Intl Airline Ltd 14 Kalitta Air 15 Klm 16 Uzbekistan 17 Malaysian Airline System 18 Air France 19 Virgin Atlantic 20 All Nippon Airways 21 Turkish Airlines 22 Japan Airlines 23 Saudia 24 China Eastern Airlines 25 Aeroflot Cargo Airlines 26 Finnair 27 China Southern Airlines 28 Lufthansa Cargo Ag 29 United Airlines 30 Spice Jet 31 Martin Airline 32 Air China 33 China Air 34 Indigo Cargo 35 Hercules Aviation 36 Asiana Airlines 37 Blue Dart 38 Dhl Express 39 Mahan Air 40 Air Arabia 41 Gulf Air 42 Ethopean Airlines 43 Oman Air 44 Air Mauritius 45 Sri Lankan Airlines Ltd 46 Air Shagoon Pvt. Ltd. 47 Kuwait Airlines 48 Ariana Afghan Airlines 49 Biman Bangladesh 50 Air Astana 51 Mihin Lanka Airlines 52 Kam Air 53 Royal Jordanian Airlines 54 Kenya 55 Ups 56 Pakistan International 57 Turkmenisthan Airlines 58 Tajik Air 59 Spice Jet 60 Flywell Aviation Pvt. Ltd 61 Safi Airways 62 Jetlite 63 Iraqi Airways 64 Druk Air 65 Eva Air 66 Kyrgyzstan Air Company 67 Air Moldova 68 Abakan Avia 69 Flywell Aviation Total Cargo handled in August ‘12’ % VARIATION

34 i cargotalk i OCTOBER 2013

Export With- Out Peri- shable (MTs) 1018 1081 638 846 1145 767 289 603 547 0 517 405 502 433 445 416 226 399 351 315 350 141 198 191 257 199 62 146 197 147 91 102 94 136 117 37 92 0 97 85 65 50 57 68 37 44 2 37 16 24 12 18 17 16 0 5 12 7 8 7 2 0 1 0 0 0 0 0 0 14185 10698 32.60%

Export Export with Perishable Perishable Cargo (MTs) (UPL) (MTs)

Import (MTs)

Total Cargo (MTs)

% of Total

31 141 1133 199 63 23 48 81 136 0 2 48 9 0 52 36 32 7 1 0 14 11 163 0 81 9 0 20 0 1 8 1 0 1 0 1 0 0 7 0 23 5 22 9 0 0 30 0 0 5 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 2454 2960 -17.08%

2153 1715 637 1127 927 729 966 568 359 890 356 349 281 355 199 162 355 194 206 224 104 276 12 177 29 143 244 119 41 65 114 93 83 24 27 78 23 114 9 6 1 29 1 1 9 0 6 1 20 1 8 2 0 2 16 9 0 0 0 0 1 1 0 1 0 0 0 0 0 14641 11976 22.25%

3202 2937 2408 2172 2134 1519 1303 1252 1043 890 876 801 792 789 696 614 613 601 558 539 468 428 373 368 367 351 306 285 238 213 212 195 176 161 143 116 115 114 113 91 89 84 80 78 47 44 38 38 36 30 20 20 18 18 16 13 12 10 8 7 3 2 1 1 0 0 0 0 0 31281 25634 22.03%

10.24% 9.39% 7.70% 6.94% 6.82% 4.86% 4.17% 4.00% 3.33% 2.85% 2.80% 2.56% 2.53% 2.52% 2.23% 1.96% 1.96% 1.92% 1.78% 1.72% 1.49% 1.37% 1.19% 1.18% 1.17% 1.12% 0.98% 0.91% 0.76% 0.68% 0.68% 0.62% 0.56% 0.51% 0.46% 0.37% 0.37% 0.36% 0.36% 0.29% 0.28% 0.27% 0.26% 0.25% 0.15% 0.14% 0.12% 0.12% 0.11% 0.09% 0.06% 0.06% 0.06% 0.06% 0.05% 0.04% 0.04% 0.03% 0.03% 0.02% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

1049 1222 1771 1044 1207 790 337 684 683 0 520 452 512 433 497 452 258 406 352 315 364 152 362 191 338 207 62 165 197 149 99 102 94 137 117 38 92 0 104 85 88 55 79 77 37 44 33 37 16 29 12 18 18 16 0 5 12 10 8 7 2 0 1 0 0 0 0 0 0 16640 13658 21.83%

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mUMBAI csi aIRPORT

eXPORT/iMPORT cARGO tONNAGE hANDLED IN AUGUST 2013 S.No. Airlines

Export General

Export Perishable

Total Import Export

Total Exp+Imp

1118.35 1134.29 622.00 791.34 803.84 981.42 532.73 814.34 497.78 658.23 368.83 580.93 832.35 300.01 376.01 233.03 292.84 297.83 240.37 220.92 111.87 0.00 313.73 300.76 112.71 0.00 63.84 169.16 29.51 58.55 0.00 52.35 58.54 42.64 0.22 63.27 53.53 60.77 40.29 48.59 29.66 14.32 17.29 9.50 5.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 83.90

1035.72 971.47 589.34 986.29 214.54 47.91 705.86 88.57 355.05 184.29 126.24 44.41 5.18 25.06 53.76 51.09 68.70 22.88 98.84 18.41 0.00 0.00 1.58 1.55 184.24 0.00 146.74 3.18 129.21 72.59 64.22 1.41 2.26 45.48 79.87 6.58 7.64 3.66 0.00 8.47 5.24 6.40 1.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.61

2154.07 2105.76 1211.34 1777.63 1018.38 1029.33 1238.59 902.91 852.83 842.52 495.07 625.34 837.53 325.07 429.77 284.12 361.54 320.71 339.21 239.33 111.87 0.00 315.31 302.30 296.95 0.00 210.58 172.34 158.72 131.14 64.22 53.76 60.80 88.12 80.09 69.85 61.17 64.43 40.29 57.07 34.90 20.71 18.76 9.50 5.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 88.51

2019.36 924.98 1368.27 617.76 1168.92 1064.66 672.97 680.59 522.03 89.26 363.59 229.23 6.77 316.24 211.13 338.96 182.38 214.72 137.98 221.00 332.90 366.33 10.60 16.93 5.21 221.50 1.35 1.84 1.66 3.10 64.00 70.73 39.09 0.15 7.97 13.09 13.06 2.39 19.14 0.01 14.40 5.05 0.27 0.67 0.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 220.00

4173.43 3030.74 2579.61 2395.39 2187.30 2093.99 1911.56 1583.50 1374.86 931.78 858.66 854.57 844.30 641.31 640.90 623.08 543.93 535.43 477.19 460.33 444.77 366.33 325.91 319.24 302.17 221.50 211.93 174.18 160.38 134.24 128.22 124.49 99.89 88.27 88.05 82.94 74.23 66.82 59.43 57.07 49.30 25.76 19.03 10.17 5.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 308.51

13437.66

6470.03

12782.79

32690.48

Airlines Handled By Mial & Ai 1 Jet Airways 2 Emirates 3 Lufthansa 4 Air India 5 Singapore Airlines 6 Cathay Pacific 7 British Airways 8 Etihad Airways 9 Qatar Airways 10 Saudi Arabian Airlines 11 Swiss Intl. Airlines 12 Turkish Airlines 13 Ethopian Airlines 14 Malaysian Airlines 15 Air France 16 Thai Airways 17 Federal Express 18 Virgin Atlantic 19 Delta Airlines 20 Fin Air 21 UPS 22 Martin Air 23 Kenya Airways 24 South African Airlines 25 Kuwait Airways 26 Air Cargo Arologic C/O Lufthansa 27 Gulf Air 28 Air Mauritius 29 Air Arabia 30 Oman Air 31 NorthWest Airlines 32 Korean Air 33 EL-AL Airlines 34 Indigo Air 35 Air India + Air India Carriers 36 United/Continental Airlines 37 Srilankan Air 38 Bangkok Airways 39 Blue Dart 40 Yemenia Airways 41 Iran Air 42 Pakistan Intl Airlines 43 Royal Jordanian 44 Egypt Air 45 Air China 46 Austrian Air 47 Baharin Airlines 48 Kingfisher Airlines 49 Qantas 50 Island Aviation (Maladvian) 51 Royal Joradian 52 Charters 53 Others

TOTAL

www.cargotalk.in

19907.69

OCTOBER 2013 i cargotalk i 35

Cargo Performance Airports in India

Traffic statistics D omestic F reight

S. No. Airport

June 2013

Freight (in Tonnes)

For the Month For the period April to June June 2012

% Change 2013-14

2012-13

% Change

(A) 16 International Airports 1 Chennai 2 Kolkata 3 Ahmedabad 4 Goa 5 Trivandrum 6 Calicut 77 Guwahati 8 Lucknow 9 Srinagar 10 Jaipur 11 Coimbatore 12 Mangalore 13 Amritsar 14 Trichy 15 Varanasi 16 Portblair

Total

5943 6951 2992 180 95 18 542 181 622 671 503 18 13 0 30 176 18935

6935 6472 3015 245 145 10 453 171 430 524 562 21 5 0 19 88 19095

-14.3 7.4 -0.8 -26.5 -34.5 80.0 19.6 5.8 44.7 28.1 -10.5 -14.3 160.0 - 57.9 100.0 -0.8

17282 20079 8453 534 303 50 1572 632 1194 1725 1450 62 40 0 79 563 54018

20652 20184 8905 753 402 36 1456 510 930 1586 1626 85 16 0 79 415 57635

-16.3 -0.5 -5.1 -29.1 -24.6 38.9 8.0 23.9 28.4 8.8 -10.8 -27.1 150.0 - 0.0 35.7 -6.3

15298 15216 7485 2918 692 412 42021

15654 15983 7077 2719 767 431 42631

-2.3 -4.8 5.8 7.3 -9.8 -4.4 -1.4

45215 43800 21231 8511 2197 1120 122074

49903 47431 21176 8315 2236 1211 130272

-9.4 -7.7 0.3 2.4 -1.7 -7.5 -6.3

23 Pune 24 Visakhapatnam 25 Patna 26 Chandigarh 27 Bagdogra 28 Madurai 29 Gaya

Total

1513 190 477 132 96 127 0 2535

1502 198 176 224 140 60 0 2300

0.7 -4.0 171.0 -41.1 -31.4 111.7 - 10.2

4566 466 1134 742 336 336 0 7580

5733 462 538 723 427 184 0 8067

-20.4 0.9 110.8 2.6 -21.3 82.6 - -6.0

30 Bhubaneswar 31 Indore 32 Jammu 33 Raipur 34 Agartala 35 Vadodara 36 Imphal 37 Bhopal 38 Ranchi 39 Aurangabad 40 Udaipur 41 Leh 42 Tirupati 43 Rajkot 44 Jodhpur 45 Dehradun 46 Dibrugarh

Total

250 359 121 270 498 155 294 74 188 47 0 87 0 16 1 0 21 2381

272 363 87 215 483 182 289 80 132 63 0 97 4 17 1 0 21 2306

-8.1 -1.1 39.1 25.6 3.1 -14.8 1.7 -7.5 42.4 -25.4 - -10.3 -100.0 -5.9 0.0 - 0.0 3.3

809 1199 376 775 1570 461 901 213 534 166 0 321 0 44 4 0 80 7453

790 1078 297 682 1528 622 1046 241 405 223 0 378 6 71 3 0 84 7454

2.4 11.2 26.6 13.6 2.7 -25.9 -13.9 -11.6 31.9 -25.6 - -15.1 -100.0 -38.0 33.3 - -4.8 0.0

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

127 65999

115 66447

10.4 -0.7

324 191449

443 203871

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

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

(C) 7 Custom Airports

(D) 17 Domestic Airports

36 i cargotalk i OCTOBER 2013

-26.9 -6.1

www.cargotalk.in

Cargo Performance Airports in India

Traffic statistics

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

S. No. Airport

For the Month

June 2013

June 2012

For the period June

% Change 2013-14

2012-13

% Change

(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 14 Trichy 15 Varanasi 16 Portblair

Total

19524 3584 1500 150 2183 2009 1 86 0 10 69 0 23 348 0 0 29487

22835 3596 1143 119 4145 2427 0 106 0 16 49 0 120 270 0 0 34826

-14.5 -0.3 31.2 26.1 -47.3 -17.2 - -18.9 - -37.5 40.8 - -80.8 28.9 - - -15.3

56177 10063 4422 457 6648 6764 8 220 0 56 206 0 296 1130 0 0 86447

63613 10293 3007 457 13273 7585 0 246 0 69 136 0 332 779 0 0 99790

-11.7 -2.2 47.1 0.0 -49.9 -10.8 - -10.6 - -18.8 51.5 - -10.8 45.1 - - -13.4

31439 38761 12762 4396 3330 23 90711

29669 40491 12632 3868 2743 29 89432

6.0 -4.3 1.0 13.7 21.4 -20.7 1.4

95285 116714 38137 12932 10251 99 273418

92039 119161 36573 11341 8796 99 268009

3.5 -2.1 4.3 14.0 16.5 0.0 2.0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

- - - - - - - -

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

- - - - - - - -

0 0 120198

0 0 124258

0 0 359865

0 0 367799

-2.2

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

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

(C) 7 CUSTOM AIRPORTS 23 Pune 24 Visakhapatnam 25 Patna 26 Chandigarh 27 Bagdogra 28 Madurai 2929 Gaya

Total (D) (E)

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

News in Brief Charter Services

Volga-Dnepr launches SMS messaging for air charter updates

38 i cargotalk i OCTOBER 2013

- - -3.3

C

ustomers moving outsize and heavyweight air cargo with VolgaDnepr Airlines can now track their cargo using SMS. The airline is using the short message service to customers’ mobile telephones to provide updates on the progress of charter flights and this is also supported by email alerts.

According to Vitaly Andreev, Head of Customer Service for Volga-Dnepr Airlines, this new service will allow them to inform their customers about

aircraft movement, including the date and flight number, airport information and estimated time of departure and arrival.

“SMS messaging enables us to provide customers with important updates on their cargo movement, irrespective of the time of day, at weekends or over holiday periods when they are away from the office, or in situations where they may have limited internet access. We hope customers will see this as another valuable service benefit,” he said.

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Alliances and JVs Logistics Services

BVC Group ties up with Brinks India With an objective to strengthen and enhance the market share of ‘door-to-door secure service’ BVC Group and Brinks India has recently entered into a strategic partnership. BVC Group Logistics is the world’s leading player in providing logistic solutions to the gem and jewellery sector and the tie up with Brinks India is to provide a seamless service throughout India and internationally.

T

he company sources informed that, through this joint venture, BVC Group will be using Brinks Global Services network for its Diamond and Jewellery (D&J) International Shipments to more than 100 countries (door-to-door secure delivery).

BVC Logistics will cater to all the domestic logistics and customs clearance of D&J for Brinks Arya, the Indian arm of the international major.

Further expansion of infrastructure and use of sophisticated technology such as expansion in the number of armoured vehicles, security equipment, ERP and tracking devices are also part of the new partnership.

“The partnership with Brinks will help us access some of the best global practices and technology,” said Uday Chinai, Chairman and Managing Director, BVC Group Logistics.

40 i cargotalk i OCTOBER 2013

BVC Group Logistics Services n Custom Clearance, Logistics Transportation, Tours and Travels n Specialised in Gems and Jewelry handling n Offers Invaluable Asset Movement Solutions n Also handles General Cargo n BVC has a domestic network of over 120 cities n International delivery to over 100 countries According to Samir Hosangady, Managing Director, Brinks India; by leveraging BVC Group’s exceptional sales and customer service culture on top of Brink’s global infrastructure, the JV will be able to support India’s position as the leading centre for the global Diamond & Jewellery industry.

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Family Album Agent Award

Saudi Arabian Airlines Cargo

Hosts Award Winning Evening to honour top agents Saudi Arabian Airlines Cargo recently hosted ‘Award Winning Gala Function’ to felicitate its ‘Top India Clients 2012’ in Mumbai. The event was presided by Keku Bomi Gazder, Regional Director India Sub Continent, Saudia Cargo. Apart from the airline officials, a large number of cargo agents and industry stake-holders attended the function to enjoy the evening.

42 i cargotalk i OCTOBER 2013

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Family Album Club Event

Air Cargo Club of Madras

Organises ‘Car Treasure Hunt’ For the first time in the history of Air Cargo Club of Madras, the car racing event called ‘Car – Go’ was organied on August 4, 2013 at Madras Race Club. Amanullah Khan – Vice Chairman of Madras Race Club and flagged off the event, which was participated by 69 members with 23 cars.

The first, second and third prizes were won by the Team FedEx Trade Networks & Transport, Team Visesh Cargo & Travels and Team Seawaves Shipping Services respectively.

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OCTOBER 2013 i cargotalk i 43

Family Album Club Event

ACCD

New Managing Committee hosts lunch to think beyond business The Air Cargo Club of Delhi (ACCD) organised its first event by hosting a serious discussion on “Beyond Business-But Business — Taking the Next Step on Your Path to Success”. The renowned motivational speaker and trainer, Him-eesh Madaan was the Guest Speaker of the event. This was followed by sumptuous lunch at Nidra in Delhi.

44 i cargotalk i OCTOBER 2013

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Family Album Annual General Meeting

Air Cargo Club of Bombay

HS Arora elected as President of ACCB at its AGM Recently, the Air Cargo Club of Bombay (ACCB) elected its new managing committee with HS Arora, Hon. President; Conrad Aranha, Hon. Vice President; Raju Mehandarkar, Hon. Secretary and Gopal Devadiga as Hon. Treasurer. The managing committee members include S Venkatraman, Hariharan, Bradley Dlima, Balakrishnan R, Vineet Agarwal and Ajit. Earlier, Arora was the Hon. Treasurer of ACCB. www.cargotalk.in

OCTOBER 2013 i cargotalk i 45

Skill Development Talent Hunt

Million Minds

meet management colleges to promote ‘LTH-2014’ In view of the emerging skill gap in the logistics sector and the growing demand of young professionals in the logistics industry, Million Minds Management Services recently organised a meeting of training and placement officers of management colleges and industry experts in New Delhi.

We are coming up with ‘LTH-2014 Season 3’, which will be larger than the previous season” Premprakash

Director, Million Minds

T

he topic of discussion was ‘Opportunities for Young Professionals in Logistic Industry’.

The training and placement officers represented the student community and put forward the students’ perception about the logistics industry.

Speaking at the meet, Premprakash, Director, Million Minds said, “We are coming up with ‘Logistics Talent Hunt2014 Season 3’, which will be on a larger scale than the previous season.” He also maintained that this season will involve more colleges and will aim to minimise skill gaps in the logistics industry. Explaining the importance of LTH-2014, he said that it is an idea to raise awareness among students about logistics industry.

Amit Shankhdhar, Director, Million Minds, pointed out the gap in logistics 46 i cargotalk i OCTOBER 2013

The Indian logistics industry needs young professionals as future leaders” Amit Shankhdhar

The effort of ours will help to bridge the skill gap existing in the logistics sector” Dr. Veni Mathur

Director, Million Minds

Dean, Million Minds

education in many colleges and how it impacts the placement of students in logistics companies. He said, “Today, the Logistics industry is most shy in recruiting management students because of many issues like lack of understanding and focus on logistics by most of management schools. It results in students being deprived of exposure to this growing sector. The Indian logistics industry needs young professionals as future leaders who will bring in more innovation and technology to make this industry globally competitive and agile to changing needs of customers.” Million-Minds, through its flagship programme (LTH) is striving hard to bridge this gap and bring industry and institutes closer,” he emphasised.

the candidate. “The effort will help to bridge the skill gap existing in the logistics sector,” she asserted.

Dr. Veni Mathur, Dean, Million Minds, elaborated on the courses developed

by Million Minds, with an objective to improve the employment opportunities for

According to Mathur, the training and placement officers offered valuable suggestions as to how Million Minds can become a strong bridge between the student community and the logistic industry.

The training and placement officers and experts who attended the meet include Rakesh Singh, Deputy Director, Amity University, Noida; Shakshi Arora, Manager Corporate Relation, JIMS, Kalkaji; Manik Katyal, Head Training and Placement Cell, Shikshapeeth College; Bikash Sharma, Manager Placement, IIMT, Gurgaon; VIKAS SAINI, Placement Head, DITM college and CS KHANDELWAL, ex-faculty IMR, Million Minds. www.cargotalk.in

Green Initiatives CSR

Gati lends support

to Uttarakhand victims to strengthen CSR Recently, to strengthen the relief efforts in Uttarakhand, Gati has deployed its vehicles to transport relief material to the affected people. In addition, Gati employees across the country have voluntarily donated 2 days’ salary.

G

ati will contribute a sum equivalent to double the employee’s contribution, and this amount will be used to carry out development work at Uttarakhand.

Green Offices

As a step towards its internal green initiatives, GATI has made it mandatory for all its Express Distribution Centres across the country to plant and maintain a green stretch in and around their premises. p Gati branding on a Metro support pillar

Recycling of E-Waste

Since the last three years, GATI has been disposing off its old IT hardware in an organised and environment friendly way.

All the old IT hardware is consolidated and handed over to Eco-Recycling Limited for recycling. This initiative is aimed at reducing air and water pollution caused by hazardous disposal. Additionally, recycling also reduces the amount of greenhouse gas emissions caused by the manufacturing of new products and helps keep the environment green.

Wealth out of Waste project

As a step towards its internal green initiatives, GATI has made it mandatory for all its Express Distribution Centres across the country to plant and maintain a green stretch in and around their premises 48 i cargotalk i OCTOBER 2013

GATI is supporting ITC-PSPD LTD Wealth out of Waste (WOW) Project .This project aims to protect the environment and reduce global warming by creating awareness among the people on the importance of ‘Recycling’ - encouraging them to segregate waste and dispose it responsibly.

GATI is supporting this environmental cause by collecting recyclable material at all its office locations and giving it for recycling.

The Sunderban Project

The Tagore Society for Rural Development (TSRD) has been running six projects in the state of West Bengal to create awareness among the Sunderban communities. To

help the TSRD in its mission, GATI has sponsored the publication of study material (books and journals) which will be distributed to schools, colleges and self-help groups so that necessary steps can be taken to preserve the eco-harmony of Sunderban.

Harith Andhra Pradesh initiative

Gati partnered with the AP Government towards turning the state into ‘Harith Andhra Pradesh’. This first of its kind initiative to plant a million trees on a single day had been taken up by the state government to fulfill the dream of late Chief Minister, YS Rajasekhara Reddy in turning the state into ‘Harith Andhra Pradesh’, and in turn towards the larger cause of ‘Global Warming’. As part of this historic tree plantation program, GATI provided the complete logistic support needed for organising transportation of the saplings from nurseries to various plantation sites

Plantation of Green Belt under Metro Track

Gati strongly believes in its responsibility towards the environment. One such initiative undertaken by Gati in the year 2010-11 was the plantation and maintenance of the Green Belt under the Metro Track in Gurgaon, Delhi to offset carbon emissions.

As part of this initiative, Gati had planted about 150 tall trees and 300 shorter trees over a stretch of one and a half kilometres to offset carbon dioxide emission.

The trees which were planted included Ficus Panda (perennial green tree), Bottle Brush (flowering tree), Badelia (ground cover- to prevent evaporation and top-soil loss and soil-cover for less dust). This would offset approx 1,500 to 2,500 tonnes of carbon emissions. www.cargotalk.in

Shipping & Ports New Initiatives

Dighi Port

On the way to be a multimodal logistics hub

The Dighi Port is all set for establishing itself as an all-weather, deep-draft, direct berthing port in Maharashtra.

The port is located at a distance of 42 nautical miles (160kms by road) south of Mumbai. The port is capable of handling bulk, break-bulk, liquid and LNG, and soon will be ready to handle RORO and containerised cargo. In an interview with Cargotalk, Vijay Kalantri, Chairman & Managing Director, Dighi Port, provides more details.

T

he Port has handled approximately two million MTs of dry bulk, and break-bulk cargo. At the present, two multi-purpose berths having a single quay length of 650 metres are under operation. All berths constructed are multipurpose and multi-cargo ones and the two mobile harbour Gottwald cranes are also capable of handling containers. The mobile cranes (6-series) having a rated handling capacity of 1,000 MTs per hour.

A dedicated container terminal is being developed on the North Bank (Agardanda) of Dighi Port. There are three more berths having a total quay Vijay Kalantri length of 1,100 Chairman & Managing metres under Director, Dighi Port development, which shall be commissioned in a phased manner.

“The berths for the container terminal are under construction and will be ready by first quarter of 2014. The Dighi Port at present offers a depth of 12.5m which will 50 i cargotalk i OCTOBER 2013

be further dredged to 14.5m by the end of Phase I,” said Kalantri. The 3 berths are of linear quay length of 1,100m and will be used primarily for handling containers, RORO and other Clean Cargo.

USPs of Dighi n A multi-cargo, all weather, direct berthing port with state-of-theart cargo handling equipment n Having a land bank in excess of 1,600 acres n A natural harbour and an exclusive channel offering a depth of 14.5m n Dighi Port is being developed on two banks of Rajpuri creek, which allows the port to segregate Clean Cargo from Dirty Cargo n Capable of handling bulk, breakbulk, liquid, LNG, RORO and container cargo n Offers a port based SEZ and FTWZ

He also informed that as Dighi Port has a total waterfront of nearly 5 kms, the development of Dighi Port can be scaled up to a capacity of 90 million MTs of cargo with a uniform depth of up to 20m.

“Once the container terminal is operational, we expect most of the shipping lines to be calling this port,” said Kalantri. As of now, the port has handled panamax sized and capsized bulk cargo vessels, which have been chartered by importers.

Port Connectivity and Amenities

Dighi Port is not connected to National Grid of Indian Railways as yet. The rail connectivity from the port to the nearest Konkan Rail Head, which is at a distance of 47 kms from the port, is being established.

The port has tied up with Rail Vikas Nigam for creation of this dedicated railway line connecting the port to the National Grid of Indian Railways.

Dighi Port is being developed by Balaji Projects Ltd. (BIPL) under a 50 year ‘Build, Own, Operate, Share, Transfer (BOOST)’ concession agreement signed with the Maharashtra Maritime Board, the Government of Maharashtra. www.cargotalk.in

Emerging Technologies News Update

CargoWise software gets

3,600 new users

CargoWise, a global leader in technology solutions for logistics service providers announced globally that freight management company Geodis Wilson has transitions for over 3,600 users across 22 countries onto the ediEnterprise platform.

T

he ambitious rollout plan, which has seen the ediEnterprise database adopted at the rate of one country per month every month since December 2010, was built around a series of production pilots which enabled the Geodis Wilson staff to gain a strong understanding of how the system would function in reallife situations. As a result, the project has been able to maintain an extraordinary pace with a minimum of challenges.

The Production Pilot is an agile approach that enables logistics companies to accelerate the evaluation process because it provides realistic insight into how the software will function in a real-life environment” Richard White CEO, CargoWise

52 i cargotalk i OCTOBER 2013

“The larger part of our Asia-Pacific structure is now fully onboard, enabling us to cover the bulk of our export platform with ediEnterprise software. We have been reaping the benefits of a single file concept from Day One, especially in the importing countries, because we only enter customer data once and it can be shared across our entire network,” said Håkan Nilsson, CIO, Geodis Wilson.

The larger part of our Asia-Pacific structure is now fully onboard, enabling us to cover the bulk of our export platform with ediEnterprise software” Håkan Nilsson CIO, Geodis Wilson

Officer Eric Martin Neuville have enabled the rollout to maintain momentum over a sustained period.

Announced in December 2010, the €20 million project is gradually replacing separate software applications and databases with a single, centralised corporate database. The project is already well on track toward very ambitious productivity targets. Full global deployment is expected by April next year.

According to Richard White, CEO, CargoWise, the Geodis Wilson project is an excellent example of the benefits of a Production Pilot to software assessment and acquisition. “The Production Pilot is an agile approach that enables logistics companies to accelerate the evaluation process because it provides realistic insight into how the software will function in a real life environment,” he said.

Nilsson also informed that the major challenges of the implementation have been operational, and based on the transition from country-based processes to a single global system supported by common processes. However, he says, the tireless work of Project Leader Henri Parisse and Project Director and Chief Operations

CargoWise is a global leader in logistics technology solutions that improve visibility, efficiency, quality of service and profitability. It is renowned for its next-generation solutions, including ediEnterprise, an integrated single platform supply chain logistics management system with global capability. www.cargotalk.in

Exporters Perspective Market Trends

On The Growth Trail

Indian Exports witness 13% fillip in August The depreciation of Indian rupee against the dollar and gradual improvement in US and Europe markets has had a direct impact on exports from India. According to the latest statistics unveiled by the Ministry of Commerce, exports from India registered double digit growth in July and August.

Rafeeque Ahmed, President, Federation of Indian Export Organisation (FIEO) foresees further growth October onwards.

We will cross the export target of US$ 325 billion for the current year with ease Rafeeque Ahmed President, Federation of Indian Export Organisation 54 i cargotalk i OCTOBER 2013

E

xports during August, 2013 were valued at US$ 26,135.94 million (`1,65,202.15 crore) which was 12.97 per cent higher in dollar terms (28.53 per cent higher in rupee terms) than US$ 23,134.47 million (`1,28,534.68 crore) during August 2012. The cumulative value of exports for the period April-August 2013-14 was US$ 1,24,426.07 million (`7,24,733.44 crore) as against US$ 1,19,771.91 million (`6,54,859.77 crore) registering a growth of 3.89 per cent in dollar terms and growth of 10.67 per cent in rupee terms over the same period last year.

“The world economy appears to be getting back on its feet. Risks from advanced economies have eased, with Europe reporting modest growth in last quarter. Growth in the developing world will remain solid, albeit slower as developing countries grapple with homegrown challenges brought on by capacity constraints in many middle-income countries,” said Ahmed. “We expect that the double-digit growth recorded in July and August will continue with better results from October onwards. We will cross the export target of US$ 325 billion for the current year with ease,” he maintained.

However, FIEO urges the government to fix the export target for the next three years and keep monitoring the export performance to meet the target. The Foreign Trade Policy provisions are also required to be extended beyond March 31, 2014 to provide continuity and stability.

According to Ahmed, the availability of credit is a big concern for all particularly for the small and medium enterprises. The share of export credit in total exports is constantly on decline and has come down from 19 per cent to 11 per cent in last five years. “Exports should be brought under Priority Sector Norms

both for Indian and Foreign Banks over 20 branches,” he maintained.

FIEO also recommended that the Interest Subvention Scheme should be extended to all the left-over sectors like pharma & chemicals, leather, gems & jewellery and engineering (other than 235 products).

Ahmed emphasised on aggressive marketing through an Export Development Fund, as suggested by Indian exporters earlier. “The initial corpus equivalent to 0.5 per cent may be provided by the government, and the annual corpus may be partially funded by the government and the rest by exporters by imposing export cess of 0.25 per cent. With a view to exploit the market opportunity gained through FTA and CECA/CEPA, the benefit under Focus Market Scheme and MLFPS Scheme may be enhanced to 5 per cent, so that more and more exports take place to these countries/ regions,” he observed.

Ahmed underlined that operational problems are affecting exports on a day-today basis, without any effective redressal in a time-bound manner. “We would like the Cabinet Secretary to head an InterMinisterial Committee to resolve InterDepartmental issues affecting exports,” he added.

Import Scenario

Imports during August, 2013 were valued at US$ 37,053.85 million (`2,34,212.93 crore) representing a negative growth of 0.68 per cent in dollar terms and growth of 12.99 per cent in rupee terms over the level of imports valued at US$ 37,307.27 million (`2,07,278.42 crore) in August, 2012.

The cumulative value of imports for the period April-August, 2013-14 was US$ 197,792.14 million (`11,46,140.26 crore) as against US$ 194,442.45 million (`10,62,866.95 crore) www.cargotalk.in