CargoTalk

Cargotalk JANUARY 2013

RNI No.: DELENG/2003/10642 2 2 Date of Publication: 22/12/2012

DIAL Cargo initiatives at

IGIA

CSCMP 2013 Conference at

Amsterdam

MiraiStore.com for fashion

logistics

Business Outlook Industry feels the trends of revival

Vol XIII No.2 Pages 72 Rupees 50 cargotalk.in

By DDP Publications

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

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Cargotalk

editorial

Cargotalk

Vol XIII No.2 Pages 72 Rupees 50 cargotalk.in

By DDP Publications

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

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JANUARY 2013

2 RNI No.: DELENG/2003/1064 2 Date of Publication: 22/12/201

DIAL Cargo initiatives at

IGIA

Hope 2013: %H ¿UP RQ policy matters

T

he latest trade data for the month of November showed exports at US$ 22.3 bn with a dip of 4.17 per cent and cumulative export for April - November at US$ 189 bn with a fall of 5.95 per cent. Remarkably, IIP data for October 2012 showed 4.5 per cent growth, as against contraction in previous months. The same will be reflected in exports with a time lag of 2-3 months. Recently, Goldman Sachs, a global investment banking and securities firm, in a report predicted India’s economic growth up to 6.5 per cent in 2013, backed by favourable external sector demand outlook and a pick-up in domestic reforms.

Though, expecting the recovery of demand in the developed economies, India needs to maintain the focus of its trade policy on developing new export markets in the emerging and developing countries where growth prospects in the medium-term remain considerably better than in the developed countries.

In addition, there should be firmness and consistency in the Rupali Narasimhan Editorial Director

4 I CARGOTALK I JANUARY 2013

CSCMP 2013 Conference at

Amsterdam

MiraiStore.com for fashion

logistics

Business Outlook Industry feels the trends of

revival

government policies too. Exporters welcomed the recent announcement of some support for the export sector as the same will add to the competitiveness of exports. It is evident from the facts that with the slowdown in global trade, pricing has become a key issue, and extension of some fiscal benefit by the government will help the exporters to factor the same in their prices to procure such orders, which hitherto are being lost by them, either for wafer thin margins or for a loss.

On the service providers’ front, logistics companies need to restructure their products and services to reduce cost and pass it on to their customers. Moreover, it is important to keep reinventing to offer more value. Only tough decisions, both from government as well as industry people, can bring-in the fiscal discipline and wind of change in 2013.

Publisher SANJEET Editorial Director RUPALI NARASIMHAN Sr. Assistant Editor RATAN KUMAR PAUL Desk Editor NEELAM SINGH Sub-Editor RAMYA J. S. D’ROZARIO General Manager GUNJAN SABIKHI Deputy General Manager HARSHAL ASHAR Regional Manager: South K N SUDHEER Regional Head: North & West SHIV KUMAR Assistant Manager: West ROLAND DIAS Assistant Manager Marketing YOGITA BHURANI Sr. Marketing Co-ordinator GAGANPREET KAUR Design RUCHI SINHA Advertisement Designer VIKAS MANDOTIA Production Manager ANIL KHARBANDA Circulation Manager ASHOK RANA DDP Publications Private Limited NEW DELHI: 72 Todarmal Road, New Delhi – 110001, India.

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Contents January 2013

DEPARTMENTS

Movements 8

Business Outlook

Edmund Jones joins Global Aviation J Sajeev Kumar appointed as cargo manager-AP, Cathay Pacific

E-Commerce 10

MiraiStore.com launched: Fashion logistics to receive a boost in India

Associations 12

Express industry wants the airlines to stop charging fuel surcharge

18

ACAAI presents Excellent Awards to industry stakeholders

Airlines News 14 32

IAG Cargo unveils consolidation plans with extended services Emirates SkyCargo wins Air Cargo Carrier of the Year Award

24

Industry feels the trends of revival

34 36

Lufthansa ties up with IBS to offer web-enabled cargo solutions

37

Logistics Services 38

Cover Story After witnessing a flat 2012 in terms of growth and profitability, the cargo and logistics industry in India is hoping for better results in 2013, thanks to the recent developments in the Indian economy and positive initiatives from the government. Cargotalk spoke to the industry majors on their experience in the past year and strategies for the coming year.

Airport wise domestic cargo performance in India for September 2012 Airlines wise exim cargo performance from Delhi airport for November 2012 Airlines wise exim cargo performance from Mumbai airport for November 2012 Airport wise international cargo performance in India for September 2012

International Airports 40 42 16

Geodis relocates in Gurgaon

Products & Services 20

New DITEC Boom Barrier

6 I CARGOTALK I JANUARY 2013

DIAL Cargo kicks off initiatives to make IGIA a transshipment hub Birmingham Airport: The strategic manufacturing and distribution point

Family Album 44 56

39th ACAAI Convention in Istanbul Golden Jubilee celebration of FFFAI in Mumbai

Industry Events

60 64 66

PHD Chamber of Commerce hosts conference on cold chain in Delhi Million Minds and CILT to present Talent Hunt and Achiever Awards in Feb 2013 Planning Commission urges for integrated transport system

COLUMNS

In Conversation 18

Indian Forwarders will witness upturn in 2013: SL Sharma

Shipping & Ports

Guest Column

58

Norbert Dentressangle launches ‘Red Ocean Connect’ for end-to-end services

22

60

India Maritime 2012 shows concern over procedural hassles

68

FDI in Multi-brand Retail: A Right Step

Study & Survey IATA study reveals tough times for air cargo WWW.CARGOTALK.IN

Movements Appointments

Edmund Jones

joins Global Aviation

E

dmund Jones has joined the Global Group of Companies as the deputy regional director. He also worked for the company earlier from 2004 to 2008. In his present capacity, Jones will be responsible for all cargo, freight agency, courier and ground handling functions in north and east India.

Jones started his career in 1968 and worked with various organisations viz Air India (May 1968 – March 1975), Alitalia (Mumbai – April 1975 – March 1983 and then at Delhi till Oct

1996); Jet Air (Nov 1996 – April 2004 with principal responsibility of Gulf Air); Global Aviation Services (April 2004 - Feb 2008 w overall responsibility for with A Canada, Korean Air, Finnair, Air Continental Airlines, El Al, Qantas and on the domestic front – Kingfisher) and SpiceJet heading t their cargo division.

Jones also associated with Airlines Operators Committee (Cargo - North India) as chairman and BAR IndiaCargo as vice chairman and acting chairman.

J Sajeev Kumar appointed as cargo manager-AP, Cathay Pacific

R

ecently, J Sajeev Kumar has been appointed Cathay Pacific Airways’ cargo manager – Andhra Pradesh. He is overseeing cargo sales and revenue for the airline and is responsible for the development and execution of cargo sales strategy for the region.

A bachelor of Commerce from Kerala University, Kumar began his career in 1993 with the airline industry in the capacity of reservation and ticketing agent and thereafter moved to sales with Srilankan Airlines GSA in Kerala. In 2003, he joined Cathay Pacific GSA overseeing Kerala region’s business development and later moved on to Hyderabad as Regional Manger - Andhra Pradesh for Cathay Pacific Passenger and Cargo. In 2007, he moved to Chennai and took over Cathay Pacific Cargo GSA sales for the Southern region. He joined Cathay Pacific Cargo, Chennai as Account Manger in October 2010.

8 I CARGOTALK I JANUARY 2013

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Logistics Services E-commerce

MiraiStore.com launched Fashion logistics to receive a boost in India With the recent launch of a new Fashion Shopping Portal called MiraiStore.com, the fashion logistics in India is expected to witness a phenomenal growth in India. Speaking to Cargotalk, Prem Kumar M, chairman and managing director, Uniworld Logistics and principal investor of this portal informed that 2013 would be a great year for his company.

RATAN KR PAUL

U

niworld always finds new avenues complying with the contemporary market trends. And, according to Prem Kumar, e-commerce is the segment that the logistics companies need to tap for their further growth. “I have invested the whole seed fund in the new e-commerce portal, MiraiStore. com, with an objective to accelerate our existing fashion logistics business across the country. Our focus is India’s huge domestic market,” said Prem Kumar.

MiraiStore.com has launched the fashion shopping portal that offers a wide variety of fashion products and accessories from across the world.

MiraiStore brings the latest trends in global fashion with over 10,000 SKUs at launch. The online shopping site has its own range of accessories already available in the store and is working on launching a private label.

Our efforts are on proper utilisation of human resources and LQFUHDVLQJ WKH HI¿FLHQF\ level, so that we can EHQH¿W RXU FXVWRPHUV DW this tough juncture” Prem Kumar M Chairman and MD, Uniworld Logistics 10 I CARGOTALK I JANUARY 2013

“MiraiStore.com has a classy, intuitive and visual shopping experience with good photography and true representation of garments including style and texture,” said Prem Kumar. Customers can shop for a wide variety of denims, dresses, ethnic wear, accessories, etc., from national and international brands. Global brands available on the site include Boggi Milano, Manchester United, Alcott, FCUK and Freesoul. MiraiStore.com has exclusive collections from designers like Manoviraj Khosla and Sarita Mandoth.

Meanwhile, MiraiStore has also set up state of the art warehouses in Chennai, Delhi, Mumbai and Bengaluru to effectively fulfill its customers’ orders.

Apart from the focus on e-commerce Uniworld Logistics is also concentrating on exploring new markets across the world. In 2013, the company will open its offices in Middle East and Tanzania. At

present, the company is a leading player in logistics that serves over 400 destinations worldwide through 32 offices in 10 countries. The company is a $100 million turnover company.

Uniworld Logistics was incorporated in 2002 and in a short span of 10 years, it has grown to become a $100 million turnover company. Since 2009, Uniworld Logistics has invested over $10 million to setup its integrated logistics parks and fashion logistics hubs in Chennai, Mumbai, Delhi and Bengaluru.

In view of the current economic scenario and market trends Uniworld will concentrate on cost management to pass it on this (reduced cost) to its customers to take on the challenges. “Our efforts are on proper utilisation of human resources and increasing the efficiency level, so that we can benefit our customers at this tough juncture,” said Prem Kumar.

The Founding Team MiraiStore.com has a strong founding team with experience in e-commerce, fashion retail, marketing and supply chain.

Apart from Prem Kumar, with his vast experience in logistics and supply chain management, other members include Ram Bhamidi, CEO (a graduate of IIT Kharagpur and IIM Ahmedabad with over 15 years experience in India and UK predominantly in the internet, e-commerce and new media space); Femina Prem, director (a fashion expert and a successful entrepreneur); Asha Shridhar, COO – Brands (holds a degree in textiles and clothing and has over 14 years experience in fashion retailing); Sankar Bora, COOOperations and co-founded Myntra.com in 2007; Basant Choudhary, head of Product (worked with Cognizant, Infosys and was the co-founder at Urbangain and Senthil Kumar, head of finance.

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National News Industry Associations

Express Industry wants the airlines

to stop charging fuel surcharge

E

xpress Industry Council of India (EICI), the apex industry body of Express companies, has alleged that domestic airlines have formed a price cartel that is exploiting the levy of fuel surcharge (FSC) on cargo by not applying a rational pricing mechanism for the same.

According to EICI findings, in the last four years there has been substantial hike in fuel surcharge, which has not been commensurate to the highly volatile Air Turbine Fuel (ATF) prices. With effect from November 19, 2012, domestic airlines have further increased the FSC on cargo by Rs. 2/ kg in spite of a marked drop in ATF prices.

Vijay Kumar

12 I CARGOTALK I JANUARY 2013

“What has been surprising is that all airlines have chosen to increase the FSC by the same amount more or less at the same time. This has led us to believe that

this action has been taken in concert,” said Vijay Kumar, chief operating officer, Express Industry Council of India. He added, “Though designed to mitigate the fuel price volatility, FSC has been used as a pricing tool to harm interests of express companies, freight forwarders and ultimately the end user.”

In May 2008 when FSC was first introduced the fuel prices were Rs 69227 and FSC charged by the airlines was Rs 5/ kg. During the recent hike, again acting in concert, on November 19th the fuel prices were Rs. 68397 and the FSC charged was Rs 15/Kg. “The average cost for freight between Mumbai and New Delhi is Rs. 7/kg. Add FSC and other fixed costs to it and the price would shoot up to Rs 28/kg on an average. Which other industry adopts such an opaque pricing mechanism?” asked Mr. Kumar.

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Airlines News Merger & Acquisition

IAG Cargo unveils consolidation

plans with extended services British Airways World Cargo and Iberia Cargo together have formally announced a new brand called IAG Cargo with an objective to further consolidate their world cargo business. The new brand will also support new cargo entrants to the International Airlines Group (IAG) alongside British Airways, Iberia and British Midland International (BMI). Steve Gunning, managing director at IAG Cargo, spoke to Cargotalk to explain about the significance of the launch.

RATAN KR PAUL

W

ith both Iberia Cargo and British Airways World Cargo as strong heritage brands, IAG Cargo has decided to offer its seamless customer experience. “We have recognised the need to create a new brand.

By creating IAG Cargo, all our customers will benefit from a single range of products sold by a single sales team, along with access to a wider network which combines British Airways’ network strength in North America, Asia and Africa with Iberia’s in Latin America,” said Gunning.

According to Gunning, IAG Cargo business has been designed to be scalable

India is an exciting and dynamic market and we believe that our Indian customers will recognise WKH EHQH¿WV WKDW ,$* Cargo brings to the region” Steve Gunning Managing director, IAG Cargo 14 I CARGOTALK I JANUARY 2013

and easily able to accommodate new entrants. In April 2012, following the purchase of BMI by IAG, BMI Cargo became part of the IAG Cargo single business unit. “Alongside the addition of extra capacity and routes to the IAG Cargo network, the BMI purchase proved a successful test case for integration,” he said.

He asserted that the combined networks of Iberia, British Airways and BMI provide the most extensive and geographically diverse global cargo network, delivering to all major continents throughout the world. “As part of the launch, IAG Cargo is investing significantly in marketing to highlight the core strengths of the company: network reach, outstanding products and dynamic distribution channels, all communicated through a common brand identity,” Gunning emphasised. Questioned about the USPs of this combined entity, he observed that the greatest impact of the consolidation would be one of scale.

In addition, as a combined business, IAG Cargo has joined the top table of international airfreight carriers, becoming the seventh largest in the world. IAG Cargo provides wide body lift to more of the top 120 cargo destinations than any other air cargo carrier. This is a network that serves both major freight lanes and links destinations not served by other carriers, connecting to more than 350 destinations across the globe. Gunning also made it clear that the present market scenario is not very optimistic, “IAG Cargo has chalked out long-term plans to remain at the top position. As we enter the New Year, economic uncertainty makes predictions for 2013 difficult to make with any assurance.

It’s likely that we will see continuing weak demand, certainly for the first half of the year along with the continued yield pressures and over-capacity that have been a hallmark of 2012,” he shared. However, for

India Plan “India is an exciting and dynamic market and we believe that our Indian customers will recognise the benefits that IAG Cargo brings to the region.

We understand the global trade importance of the Indian market and as a result, offer a significant amount of bellyhold and freighter capacity to and from India” said Gunning.

He feels there is a wide variety of destination for India’s growing airfreight export market.

“The traffic to the US remains consistently high and the IAG Cargo model equips Indian customers with unparalleled US connections and the ability to efficiently handle all types of freight from specialist temperature controlled pharmaceuticals to timesensitive high-tech goods to garment traffic. Over the past few years, we have also seen a growing amount of traffic ex India destined for South America which is well served though the Iberia network,” Gunning added.

IAG Cargo will continue to promote the brand through new announcements in 2013. “A business and a network that is scalable as ours is designed to be a huge benefit for our Indian customers as new and different trade lanes continue to open up over the coming years,” he concluded.

IAG Cargo, the focus for 2013 remains on maximising its network connections to best serve the customers, continuing to develop our range of accessible distribution channels and delivering high-quality premium products across the extended network.

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Logistics Services New Launch

Geodis relocates in Gurgaon G

growing its presence in India. Over the past 4 years the company has extended its network by 10 new locations, covering all major sea and airports of the country.

The European based group – the 4th largest player of the continent – was one of the first international logistics companies to establish operations in China and India, and has been operating in Asia Pacific for over 30 years. Geodis is continuously

Rene Bach Larsen, managing director, India, Geodis Overseas, said on the occasion, “We are very optimistic about the Indian freight management sector. In line with our corporate strategy, we have focussed on vertical solutions for the Indian market, specifically in the segment of automotive, retail, hi-tech, pharma and industrial projects.”

Since 2009, the annual revenue in India has been more than double. “Companies in India shift from price to high-quality service as their primary buying driver. They are looking for a strategic partner that they can rely on for their growing and rapidly changing needs,” Rene added.

eodis, known for providing a wide range of sustainable, innovative and cost-saving transport and logistics solutions, has recently relocated its national hea office to Gurgaon in India. head Th The new office was inaugurated

by Mathieu Renard Biron, re regional vice president – Geodis W Wilson Asia Pacific and Rene B Bach Larsen, managing director – Geodis India, on December 88, 2012.

S (L (L-R): R): Mathieu R Biron and Rene Bach Larsen inaugurating the new office

16 I CARGOTALK I JANUARY 2013

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Forwarding & Logistics In Conversation

Indian Forwarders will witness upturn in 2013: Sharma With a sharp decline in exports in various fields owing to a slow down in domestic manufacturing and weak demand from major markets, there was a low growth which has been pegged at 5.8 per cent during the current fiscal year. SL Sharma, founder, Skyways Group and vice president, ACAAI, spoke to Cargotalk on expectations from the government at this critical juncture.

S

harma feels that the Government has already taken some initiatives in the Foreign Trade Policy which will take little time to bear fruit and the industry can hope for some growth in the second half of 2012-2013. “The Government should look into the cost of credit which is adversely impacting export and manufacturing,” he said. He maintained that the government must continue to look into the need for improving logistics infrastructure across the country, so that Indian exporters can compete with their overseas competitors. “Improvement in roads, ports, airports, etc., directly impact the industry by facilitating smooth movement of inbound and outbound goods,” he explained.

According to Sharma, last couple of years have been challenging for the global businesses. He, however, observed that the upward swing, though very slow, has already started and with the required reforms, India’s growth will get a decent boost in the near future.

Strategies adopted Commenting on the strategies of Skyways to stay afloat, Sharma shared, “We had

Logistics. This spread helped us to grow in 2012.” With special efforts in imports, ocean freight and exhibition handling Skyways was able to grow this year over the previous one. “We intend to further make inroads in these products in 2013 while keeping the growth targets in place of our key strength – airfreight exports,” he added.

Road Ahead

I feel 2013 will be a good year for logistics across the world” SL Sharma Founder, Skyways Group and vice president, ACAAI

anticipated the year 2012 to be a slow one and planned strategies based on this assumption. Since mid 2011, we have been diversifying our company strategy and energy in various products and verticals of

Skyways is planning to spread its footprints in 3-4 more cities in India in 2013.

The company has already initiated its international plans by opening an office in Germany. “We intend to strengthen our presence in Germany and will further create Skyways footprint in another country in 2013. We will also strive to create a 3PL vertical as well,” Sharma informed.

Sharma was of the opinion that Indian freight forwarders are poised to play the greater role and the recently concluded 39th ACAAI Convention Istanbul was a great help in this regard. At this convention, they not only got an opportunity to exchange ideas among themselves but also interacted with logistics companies in Istanbul for exploring business tie-ups.

ACAAI presents Excellence Awards to industry stakeholders

A

t 39th Annual Convention, which was held recently in Istanbul, the Air Cargo Agents Association of India (ACAAI) has introduced ‘ACAAI Excellent Awards’ to recognise outstanding performances by the airlines, airports, ground handling operators/terminal operators and individuals. Commenting on the awards, Sam Katgara, past president, ACAAI and chairman, Jury Committee, said that ACAAI had initiated the awards to honour excellent performers.

The award winners were selected by the jury members from a number of nominees. In future many other associates of this industry will also be included for 18 I CARGOTALK I JANUARY 2013

recognition. The Award winners are: GHAsHyderabad Menzies, AISATS and CSC India; Airports for cargo operation-GMR

Hyderabad International Airport, Delhi International Airport and Mumbai International Airport; Airlines (cargo)-Emirates, Cathay Pacific and Air India. The lifetime achievement award went to Vinoo Ubhayakar, past president, ACAAI. The convention was wellattended by over 300 delegates from across India. Also the convention witnessed the presence of a significant number of overseas delegates, especially from Turkey.

There were six business sessions addressed by several industry experts and stakeholders. (Also see page 44) WWW.CARGOTALK.IN

Products & Services Gandhi Automations

New DITEC Boom

Barrier

A

ccording to Gandhi Automations sources, soft edges, rounded corners, high performance Qik boom barrier offered by the company is suitable for any type of installation environment.

Newly designed and technically advanced, Qik is the ideal solution for a totally safe access control of medium to high transit environments such as hotels, banks, shopping malls, toll collection, industrial entrance as well as blocks of flats, companies and camp sites, which always require access control of car parking areas, to ensure their use to authorised people only.

The new Qik barriers are available in grey and red or in stainless steel.

Distinctive features and main functions: z Available for boom length up to 8.4 m.

Opening up to 16.8 m can be covered with two barriers operating as master/ slave. z Simple to install. z Sturdy steel structure with scratchproof coating resistant to harsh weather conditions.

20 I CARGOTALK I JANUARY 2013

z Extremely reliable and maintenance free. z Manual release in case of power failure, battery backup facility in select models. z Compliance with CE marking. z Gear motor mounted at right angle with the barrier exit in order to avoid the use of a lever system. z The 24V version with encoder and limit switch allows slowdowns and speed control. Possibility of using batteries and operating intermittency. z In the Qik 80, the MD1 display module can be used for the diagnostics and enhanced control of panel adjustments, updatable by means of DMCS software.

Accessories z Provision for photocell installation on fixed mounting z Red reflective strips z Fixed mounting/Moving mounting z Vandal proof electrically operated lock z Aluminum skirting z Arm pivot pin kit at 90째 z Batteries/Light kit z Display module for diagnostics and enhanced control

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Guest Column Current issue

FDI in Multi-brand Retail

A Right Step Allowing 51 per cent foreign direct investment in multi-brand retail per se is a step in the right direction. However, whether it will lead to actual inflow of FDI depends on many factors, says Dr. Arpita Mukherjee, professor, ICRIER.

T

he FDI in multi-brand retail depends on how easy or difficult it is for foreign retailers to adhere to the conditions associated with the policy, economic growth in India, whether FEMA regulations will be modified, how will Indian states react to this policy, etc.

Each application pertaining to FDI will go through rigorous scrutiny of FIPB. I personally feel that the policy, in its present form, is restrictive and unclear.

For instance, if a foreign retailer starts procuring from a SME and then the business of the SME grows, can the foreign company continue to procure from the SME? Also, one of the conditions states that at least 50 per cent of the total FDI which will be brought in, should be in backend infrastructure, which includes logistics and storage. However, it excludes expenditure on land cost and rental. If a company is setting up a warehouse or cold storage, how can it not buy or rent land?

,I WKH LQÀRZ RI )', speeds up the growth of organised retail, it will GH¿QLWHO\ EHQH¿W WKH logistics sector” Dr. Arpita Mukherjee Professor, ICRIER 22 I CARGOTALK I JANUARY 2013

In India, the logistics industry is fragmented partly due to the structure of the industry and partly due to policy (for example, taxation policy). There is a need for integrated logistics services in India.

If organised retail grows, it will definitely provide an impetus for the growth of the logistics sector since the demand for logistics will increase. If demand increases, it will be profitable to invest in this sector and the logistics sector will also receive

investments. However, for the sector to consolidate and provide integrative services, there is a need for reforms like implementation of GST. As I mentioned before, one of the conditions for entering the multi-brand retail segment is that at least 50 per cent of the total FDI should be in backend infrastructure which includes logistics and storage.

Thus, it is expected that there will be some investment in backend. However, the policy is not clear whether the retailers will set up their own backend or use the services of established logistics players in India. In any case, the growth of organised retail will benefit logistics. If the inflow of FDI speeds up the growth of organised retail, it will definitely benefit the logistics sector.

I recommend that while there is a need to regulate the retail sector so that there is no anti-competitive practices, consumers are protected and zoning and other regulations are adhered to so that small retailers’ interest are not adversely affected. Also, there is no need to have undue regulations like restrictive sourcing conditions or backend investment requirements. If foreign retailers perceive a long-term interest in the Indian market they will themselves ensure that the backend is well developed. This will automatically lead to the development of the logistics sector. Too many conditions can act as a disincentive to investment.

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Cover Story Year Roundup

INDUSTRY FEELS THE WIND OF REVIVAL

Business

Outlook After witnessing a flat 2012 in terms of growth and profitability, the cargo and logistics industry in India is hoping for better results in 2013, thanks to the recent developments in the Indian economy and positive initiatives from the government. Cargotalk spoke to the industry majors on their experience in the past year and strategies for the coming year 2013. „ RATAN KR PAUL 24 I CARGOTALK I JANUARY 2013

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A

ccording to Anil Gupta, 2012 has certainly been a bad year for both EXIM and domestic business for the logistics industry. In EXIM, primarily it is linked to the performance of export sector in which the shipments have shrunk by around 6 per cent to 189 billion USD in first 8 months of the current financial year. This has created heavy mismatch between containerised imports and exports, leading to a situation where lines are beginning to take the hard option of destuffing the imports at the ports itself. Resultantly, hinterland penetration of containers is going down. However, Gupta felt that the domestic cargo movement would get a fillip considering the healthy growth in the Index of Industrial Production (IIP) which has risen to a 16 months high of 8.2 per cent in October 2012.

Rajiv Kochhar - For World Window Infrastructure and Logistics (WWIL), the year 2012 started with good overall business followed by a little downfall in imports in the subsequent months. That time, the export volumes were on a higher side. In last few months, when the imports have picked up, the export volumes were facing a little down side. “Such deviations in category specific volumes are a part of supply chain logistics business and we take them as a challenge and are striving for growth in business. Over all, at ICD Loni, 2012 has been good in terms of business and service levels. We have attained more volumes in comparison to last year and our monthly average volumes have also increased,� said Kochhar.

Anil Gupta MD, Concor

Rajiv Kochhar VP (ICD Business), WWIL

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JANUARY 2013 I CARGOTALK I 25

Cover Story Year Roundup

Shantanu Bhadkamkar MD, ATC Clearing and Shipping

Vishal Sharma CEO, Gateway Rail Freight

According to Shantanu Bhadkamkar, 2012 was flat in terms of growth. “We saw decline in air cargo but overall we experienced nominal decline or only a nominal growth in each vertical,” he said. In his opinion, the challenges about maintaining the profit level were more serious than volumes as yields are under pressure. In addition, the timely recovery of dues at the contractual date was even a more serious problem.

Vishal Sharma - For Gateway Rail Freight, 2012 was a tough year, especially Q2 & the 1st half of Q3 when demand slumped across all categories, for both imports and exports.

This, combined with structural imbalance at ports, aggravated the problem for CTOs like it.

Ravi Kannan CEO, Snowman

in 2012-13 keeping in mind the expected positive trends in the third quarter of 2013.

between North and South zones,” Dogra informed.

Pankaj Dogra informs that for Wallenius

According to Chander Agarwal, 2012 was a challenging year for the Indian logistics sector as there was demand moderation and decline in utilisation levels. Availability of credit at a very high cost and no major provision for the infrastructure sector in the budget forced logistics firms to re-visit their business models and cut capital expenditure plans.

Wilhelmsen Logistics India, 2012 has been a good year overall with a steady growth in both its ocean and inland segments. “Major challenges we faced in the year have been in the inland distribution segment, wherein we faced a severe shortage of trailer capacity for distribution of cars for Renault and Nissan.

The capacity shortage resulted from the production disruption at Maruti, and further due to the imbalance / production variance

According to Ravi Kannan, “The year 2012 was tough for the Indian economy as a whole, but we have crossed important milestones as projected in the beginning of the year. In the coming year, we wish to fight and spear ahead of what we have achieved so far.”

According to Suresh Bansal, logistics and transport industry has suffered the most in 2012. While business grew for most of the companies, the real hit was bottomline.

Due to tremendous and repeated increase in fuel surcharge by the airlines, followed by petrol and diesel hike, operating costs for the industry shot up. “It is almost impossible to go to customers again and again and ask for price revisions. This has resulted in fall of profits for most companies in 2012,” he said.

S Krishnan, however, stated that the express logistics industry witnessed growth of over 20 per cent in terms of volume, while the revenue numbers should close at 15 per cent.

Indiaontime is investing USD 1.5 million 26 I CARGOTALK I JANUARY 2013

S Krishnan COO, Indiaontime

Amit Bajaj thinks that the depreciation of the rupee combined with the arbitrary increased of fuel surcharges by the airlines has made existence in domestic air cargo market tough. “We hope the fuel surcharges stabilise in 2013. This would help the industry to absorb and create a platform for future growth. The fuel surcharges of the airlines should be indexed to the ATF rates rather than the arbitrary increases,” he demanded.

Optimism runs high for 2013 Suresh Bansal Director, head of Supply Chain Solutions and International Business, DTDC

Due to tremendous and repeated increase in fuel surcharge by the airlines, followed by petrol and diesel hike, operating costs for the industry shot up”

Gupta was optimistic about the revival of Indian economy in 2013 as is being forecasted by many economists and trade analysts. “The healthy growth will certainly have a positive impact on the cargo industry specially if the growth is there in agriculture and manufacturing sectors both of which yield good volume of cargo and have good business potentials for logistics industry.

“The economy of India is set to accelerate to 6.5 percent in 2013 backed by favourable external sector demand outlook and a pick-up in domestic reforms, and the economy is further likely to grow at 7.2 per cent in 2014, compared with 5.4 per cent in 2012. The pickup is expected on the basis of reforms which include allowing FDI in multi-brand retail, aviation, etc.” observed WWW.CARGOTALK.IN

Pankaj Dogra GM, commercial, Wallenius Wilhelmsen Logistics India

Chander Agarwal Executive director, Transport Corporation of India

Kochhar. He also pointed out that the effect of increase in India’s GDP growth is expected to affect positively to the growth of container business. Indian government is also putting in significant investment in logistics sector.

“In 2013, going by 2012 experience, most companies will focus more on diligence and greater business prudence.

This includes structural changes to ensure strict compliance of KYC norms and various initiatives for secured supply chain,” felt Bhadkamkar. He also added that since investments in infrastructure will be to the tune of US $ 1 trillion, it will help growth in logistics sector and make it more efficient.

Ramesh Agarwal highlighted over 11 per

Amit Bajaj Director, Mituj Marketing

maintains its momentum, we can see a good growth for the logistics industry,” Bansal pointed out. He was of the view that FDI should bring further cheer to the market as the industry will start seeing some action towards second half of the year. “We are also hoping that the government will work its way around and introduce GST which will be game changer for the entire industry,” he added.

Shesh Kulkarni appeared to be positive about 2013, “I do think the prevailing trend will change in the first quarter and lay a good ground for 2013.” Industrial production has already seen a marginal increase in November-December 2012.

“2013 will be a significant year in the

cent rise in budgetary allocation on road transport and highways in FY12. It is an encouragement to the transportation and logistics sector in India which will start showing its result by the second quarter of 2013. “Also the contribution of 3PL in the overall logistics market is likely to increase from 1.5 - 2.0 per cent in 2008-09 to 3.5–4 per cent by 2013-14,” said Agarwal.

“We expect 2013 to be a better year vis-à-vis 2012. From trade perspective, the demand has already started recovering and is expected to increase at a healthy rate going forward,” said Sharma.

Siddharth Jairaj expects the first quarter of 2013 will be slow but thereafter it will grow each quarter. “The overall markets are expected to be sluggish for 2013. But we expect a better 2013 when compared to 2012,” he said.

During 2013, DTDC sees some bright spots. “We are seeing that manufacturing activity has picked up recently. If it WWW.CARGOTALK.IN

Ramesh Agarwal Chairman & managing worker, Agarwal Movers Group

working of UFM. We are doing many things for the first time,” he informed.

According to Samir J Shah, the tough times will continue. “However, we have all undergone a lot and come out quite knowledgeable and survived. We shall continue the same. The desire to excel and grow will still remain and whether one will be able to do so will be known only at the end of the first quarter,” Shah commented.

Ashish Mahajan is expecting 2013 even tougher since targets will increase in 2013 comparatively to 2012. Interestingly, the year 2012 was considered as a tough year Perfect Cargo is going to close this calendar year with higher volumes and turnover. “We will carry forward 2013 with our positive approach towards growth and success,” he emphasised.

Sunil Kumar Jain is expecting a significant

Siddharth Jairaj Director, TVS Dynamic Global Freight Services

7KH ¿UVW TXDUWHU of 2013 will be slow but we expect a better 2013 when compared to 2012”

jump in the manufacturing sector and the economy as a whole. The GDP will also see good improvement in 2013. “As 65 per cent of the logistic spent is shared by the transportation sector it has further capability to do well. Further GST on implementation will become a major game changer and would improve the general environment for logistics players. Though, initially there may be some problems but in the long-run there would be a major boost to the industrial environment,” Jain explained.

He believes that the government is focussed and inclined to brave out major decisions to boost the economic growth.

“The good thing about Indian economy is that it is transitioning from service base to manufacturing base. The future would see more scope in warehousing, cold chain, and 3PL functions,” said Jain.

JANUARY 2013 I CARGOTALK I 27

Cover Story Year Roundup

Shesh Kulkarni President & CEO, UFM

In 2013, Dogra expects some pain in the first six months in terms of inventory build-up at the dealer side and reducing demand. However, the trends have already started shaping up especially in the high and heavy segment. “We also foresee an increase in auto exports as the domestic sales in India may not see very high growth. The improvement in infrastructure and Power generation will further lead to a positive impact in the overall improvement of outbound logistics in India,” he observed.

Prashant Popat expects a steady progress in light of the recent government policies and he sees no further deviations or any U-turns with the proposed policies. “We have been witnessing positive market growth viz GDP and our stock markets.

In a nutshell, we should be optimistic for a seamless growth in 2013,” he said.

Dushyant Arya maintained that the New

Samir J Shah Partner, JBS Group of Companies

Ashish Mahajan Director, Perfect Cargo Movers

Year Brings in promises of changes in transportation and warehouse business strategy with use of bigger capacity trucks for long haul and more mechanised warehouses. “We are planning bigger warehouses which will help our customer get better access to consolidation. Retail focussed secondary movement is also in the 2013 plan,” informed Arya.

Chander Agarwal expects logistics sector to perform better in 2013 if the policy reforms that are in the pipeline are introduced successfully. “One of the key policy decisions that may impact the economy and the sector is FDI in retail as it will lead to outsourcing of functions like warehousing, primary and secondary transportation, international logistics and other value-added activities to logistics firms,” he pointed out.

Ajay Bamel felt that the year 2013 would be very promising for the logistics industry as FDI in retail and GST roll out commitment by government will be the game changers. “Both will help new investment and technology in Indian logistics industry and there will be a dynamic change in understanding and execution of logistics business and companies with required skill set will reap the benefits,” he said.

Sunil Kumar Jain MD, North Eastern Carrying Corporation 28 I CARGOTALK I JANUARY 2013

Learning and Strategies Concor’s main thrust during the next year would be on strengthening its infrastructure

and developing new terminals/facilities with a view to take advantage of the PFT policy announced by Railways sometime back. “We are very eager to grow into the area of bulk cargo handling in addition to the traditional area of container handling and transportation which would be made possible by such a strategic thrust,” informed Gupta.

“I would like to consider 2012 as a special case when demand across all categories went down at the same time.

The best option to safeguard against such scenarios is to keep your eggs in multiple baskets so that you can rely on at least a few categories/segments at all times. according to this philosophy, we would want to increase our customer base, our trading categories, our operating business segments etc. In addition, cost optimisation within the existing businesses could help you drive through the tough times,” shared Sharma.

The best option to safeguard against such scenarios is to keep your eggs in multiple baskets so that you can rely on at least a few categories/ segments at all times Snowman’s expansion plan is on the move and we have reached 27,820 MT capacity. The company has planned for new warehouses in Surat, Bhubaneshwar, Bihar and Chandigarh to serve tier 2 cities as well.

“We will focus financial prudence. We will be compelled to weed out unsustainable (sustainability in terms of payment cycles, profitability and penalising contractual conditions) customers, not withstanding their future potential. This is the right time to review the business models and revenue models,” emphasised Bhadkamkar.

ATC Clearing and Shipping will open more offices and will have more sales initiatives, including international sales.

“Equally, we will be very serious about retaining only such customers, who are sustainable in terms of profitability, fund flow and fair contractual terms,” added Bhadkamkar.

“We can no longer focus on only one WWW.CARGOTALK.IN

Cover Story Year Roundup

Prashant Popat Director, Velji Dosabhai & Sons

Dushyant Arya Director, Indo Arya

area or one market, we have to be present in various verticals and in multiple markets,” supplemented Jiaraj.

DTDC is bringing new state-of-theart services to meet logistic needs of the E-commerce industry and start warehousing and distribution business in 2013.

“We have always felt that, it is important to keep reinventing yourself and sometimes such acts are driven by self-discipline or by market conditions. For us, it is both. We took some tough steps, particularly saying no to clients who only wanted large credits.

We have walked away from many such businesses and it was a huge learning under tough conditions, particularly when we are a start up,” shared Kulkarni.

“We need to work for ourselves. Stop in-fighting because the same benefits only the exporters and importers who take undue advantage of our competitive spirit. We need to also rearrange our offices especially

Ajay Bamel CEO, Transocean Express Logistics

to deal with taxation and the complex issues that are cropping up. The Associations will have to be more vigilant and assist their members on a war footing.

NECC is planning to expand its network in 2013. The company is also investing in its warehousing projects and fleets. “We would be strengthening our client spectrum and would be strategically associating with good companies in the FMCG, Auto Industry, Retail, Pharma and other major industries.

Key concentration will also be on technical upgradation and qualitative improvement with focus on consumer interest,” informed Jain.

it is important to keep reinventing yourself and sometimes such acts are driven by self-discipline or by market conditions

G Balaraju MD, Sindhu Cargo Services

According to Ramesh Agarwal, the required pace of efficiency and quality improvement will demand rapid development of capabilities of logistics service providers in the months to come.

“This industry provides lesser pay and progression incentives compare to other industries. The logistics being a service oriented sector, skill development will emerge as a main capability,” he elaborated.

Dogra, on the other hand, emphasised on cost control. “This is the key mantra which we have learnt and implemented in 2012 and we would like to carry this forward to 2013 and beyond,” he stressed.

“Tough economic conditions in 2012 prompted us to re-visit our business model and reduce our exposure to high credit freight business that doesn’t guarantee returns. TCI saw opportunity in adversity as it worked closely with clients to reduce cost by optimising supply chains and introducing innovative new services,” asserted Chander Agarwal. TCI has also invested in ‘technology’ especially IT systems, freight software and logistics management software during the lean period.

Perfect Cargo is planning to start off bonded trucking by early 2013. Besides that the company will expand its number of branches in north and southern part of India.

G Balaraju is hoping that the current crisis would settle down and the industry will be able to perform better during 2013. “During 2012, we have learnt how to organise ourselves and manage during the economy crisis where both business and liquidity is a challenge. This experience would take us forward when the whole situation eases out,” he concluded.

30 I CARGOTALK I JANUARY 2013

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Airlines News In Brief

Lufthansa

ties up with IBS to offer web-enabled cargo solutions IT solutions provider to x Leading the global aviation industry, IBS Software has entered into a contract with Lufthansa Cargo for the implementation of iCargo solution. The solution will manage the airlines’ entire air cargo movement worldwide. iCargo will manage the key business functions of the airline - from sales processes up to the cargo terminal operations functions.

The real time availability of operational information through iCargo will help generate actionable intelligence which will vastly improve the overall utilisation of assets and improve revenue generation and operational efficiencies. The solution helps manage the increasing volumes of cargo movement requirements of freighters, ground handling agents as well as airports.

‘time:matters’

provides logistics solutions the expert for urgent x Time:matters, and complex logistics challenges, offers its customers tailor-made transport concepts and last-minute solutions to problems, which are based on speed, alertness, flexibility and excellence especially in the case of emergency situations.

Recently time:matters tied up with Lufthansa Cargo to offer service components for the premium product Emergency. Solutions introduced by the airline. Therefore, the organisation and processing of intelligent ground procedures at the locations in Frankfurt and Munich are executed by specialists from the time:matters Courier Terminal.

Due to the cooperation with Lufthansa Cargo, the ‘planned emergency’ concept developed by time:matters is now available to an even greater range of customers across the world.

Singapore is presented the Emirates’ cargo manager S Noryate Abdul Rahman, rina Bay Sands. r Award at Singapore’s Ma Air Cargo Carrier of the Yea

Emirates Press Release

Emirates SkyCargo

wins Air Cargo Carrier of the Year Award SkyCargo, the freight x Emirates division of Emirates, has reinforced its position as a logistics industry leader by winning a top honour at the 2012 Supply Chain Asia Logistics Awards.

The annual awards night, which took place in Singapore last year and was attended by more than 300 senior executives in the logistics and supply chain industry across Asia, recognised corporations and individuals in the fields of supply chain and logistics.

The Air Cargo Carrier of the Year Award is open to Asian and global air

cargo carriers and was presented to Emirates SkyCargo in recognition of the innovative solutions it provides to customers after being nominated by readers of Supply Chain Asia and then followed by a final round of voting by a group of independent judges.

“It is very satisfying to be recognised by the industry and testament to Emirates SkyCargo’s commitment to surpassing the high standards we have set and providing our customers with world-class service,” said Ram Menen, Emirates’ divisional senior vice president Cargo.

More airlines join Cargo Information Network its launch over a year ago, the Paris-based CIN (CARGO INFORMATION NETWORK) has now developed a regular x Since membership of over 80 operators. New members include Air China, DHL aviation, Corsair, Iberia, TAP, Asiana as well as the total number of airlines represented by the GSSA group, ECS - Globe air, EFIS and AeroCargo. These new adherents join the original founding companies Air France/KLM, Lufthansa, Delta Airlines and Eva Air, which joined CIN at the start of 2012. Jean Francois Bouilhaguet, managing director explains the benefits of membership.

32 I CARGOTALK I JANUARY 2013

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Cargo Performance Airports in India

TRAFFIC STATISTICS DOMESTIC FREIGHT

Freight (in Tonnes) For the Month S. No. Airport

September 2012 September 2011

For the period April to September % Change

2012-13

2011-12

% Change

(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11

Chennai Kolkata* Ahmedabad Goa Trivandrum Guwahati Calicut Jaipur Srinagar Amritsar Portblair Total

6563 6855 2780 298 118 570 38 547 292 18 178 18257

7167 7371 1294 315 76 681 13 552 183 5 195 17852

-8.4 -7.0 114.8 -5.4 55.3 -16.3 192.3 -0.9 59.6 260.0 -8.7 2.3

39847 37876 17776 1450 738 3139 129 3138 1718 54 855 106720

42861 42087 7129 1779 678 4375 106 3446 1261 47 976 104745

-7.0 -10.0 149.3 -18.5 8.8 -28.3 21.7 -8.9 36.2 14.9 -12.4 1.9

15377 15041 6741 2705 707 413 40984

19944 16084 7100 2979 675 308 47090

-22.9 -6.5 -5.1 -9.2 4.7 34.1 -13.0

96746 92857 41773 16547 4557 2461 254941

96400 96643 41381 17345 4204 2347 258320

0.4 -3.9 0.9 -4.6 8.4 4.9 -1.3

1502 176 486 170 62 0 18 239 23 25 90 0 2791

1825 359 620 443 44 0 28 316 42 171 67 0 3915

-17.7 -51.0 -21.6 -61.6 40.9 -35.7 -24.4 -45.2 -85.4 34.3 -28.7

10235 1035 3263 988 786 0 143 1383 200 715 389 0 19137

11015 1938 3829 1855 568 0 138 1390 172 765 383 0 22053

-7.1 -46.6 -14.8 -46.7 38.4 3.6 -0.5 16.3 -6.5 1.6 -13.2

314 379 138 606 146 353 149 187 81 48 78 0 13 2 27 4 28 2553

266 491 92 752 244 517 185 159 63 159 91 0 55 7 26 3 129 3239

18.0 -22.8 50.0 -19.4 -40.2 -31.7 -19.5 17.6 28.6 -69.8 -14.3 -76.4 -71.4 3.8 33.3 -78.3 -21.2

1581 2150 688 3069 1299 2269 1089 848 503 392 631 0 111 9 157 7 171 14974

1236 2484 545 3734 1299 2725 1040 816 421 684 749 0 350 18 149 27 302 16579

27.9 -13.4 26.2 -17.8 0.0 -16.7 4.7 3.9 19.5 -42.7 -15.8 -68.3 -50.0 5.4 -74.1 -43.4 -9.7

115 64700

150 72246

-23.3 -10.4

683 396455

710 402407

-3.8 -1.5

(B) 6 JV International Airports 12 13 14 15 16 17

Delhi (Dial) Mumbai (Mial) Bangalore (Bial) Hyderabad (Ghial) Cochin (Cial) Nagpur (Mipl) Total

(C) 9 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29

Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total

(D) 20 Domestic Airports 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

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

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

34 I CARGOTALK I JANUARY 2013

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Cargo Performance Export/Import

DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT, IGI AIRPORT, NEW DELHI (AIRLINE-WISE IMPORT/EXPORT CARGO PERFORMANCE FOR THE MONTH OF NOVEMBER 2012) All wt. in mt.

S. No.

1

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63

Airlines

Jet Airways &DWKD\ 3DFL¿F Emirates Air India British Airways Thai Airways Singapore Fedex Express Corpation Lufthansa Cargo Airline Air France Malaysian Airline System Kalitta Air Qatar Airways Swiss KLM Etihad Airways Turkish Airlines Virgin Atlantic Uzbekistan Finnair Unitop Airlines China Eastern Airlines Saudia Martin Airline Japan Airlines $HURÀRW &DUJR $LUOLQHV Air China United Airlines M/S All Nippon Airways Indigo Cargo Lufthansa Cargo Ag Blue Dart Kenya Dhl Express China Air Mahan Air Air Arabia Gulf Air Air Mauritius Spice Jet Kam Air Sri Lankan Airlines Ltd Eva Air 6D¿ $LUZD\V Philippine Airlines Asiana Airlines Ethopean Airlines Ariana Afghan Airlines Royal Jordanian Airlines China Southern Airlines Air Shagoon Oman Air Kuwait Airlines Pakistan International Air Astana Turkmenisthan Airlines Axios Aviation Services Ups Air Shagoon Pvt. Ltd. Elal Israel Air Jetlite Iraqi Airways Druk Air Total Cargo handled in October’11 % VARIATION

36 I CARGOTALK I JANUARY 2013

Export (MTs)

Export Perishable Cargo (MTs)

Export (with Peri.)

(UPL) (MTs)

Import

Total Cargo

1393

851 356 759 225 495 464 414 539 318 368 295 341 397 157 355 335 285 322 0 200 211 128 37

113 159 92 130 111 170 101 0 35 82 92 72 45 83 81 49 21

40 35 17 44 34 17 38 31 4 12 23 13 0 0 0 0 2 1 0

207

863 212 51 64 15 2 62 34 21 0 59 21 32 96 13 3 33 10 0 4 125 2 3

25 1 3 2 5 0 33 0 3 3 2 20 40 0 1 0 5

0 0 13 0 9 4 2 4 15 0 5 7 0 0 0 0 0 0 0

1600

1715 568 809 289 510 466 476 573 340 368 354 361 429 254 368 338 317 332 0 204 336 130 41

138 160 96 131 116 170 134 0 38 84 94 92 85 83 82 49 26

40 35 29 44 42 22 40 34 19 12 28 20 0 0 0 0 2 1 0

1668

410 1031 789 1086 812 679 444 286 403 362 294 230 157 320 161 176 178 111 391 173 3 182 270

97 66 108 67 77 6 4 132 87 24 1 1 7 0 0 25 44

20 12 17 1 3 21 0 0 14 17 0 0 20 14 13 10 7 0 0

3268

2124 1599 1599 1375 1322 1145 920 859 742 730 648 591 586 573 528 514 496 443 391 377 339 312 311

235 226 204 198 193 176 138 132 124 108 95 93 92 83 82 74 70

59 47 46 45 45 43 40 35 34 29 28 20 20 14 13 10 9 1 1

11837 12315 -3.88%

2238 2135 4.81%

14074 14450 -2.60%

13911 13157 5.73%

27985 27607 1.37%

% of Total 11.68%

7.59% 5.71% 5.71% 4.91% 4.72% 4.09% 3.29% 3.07% 2.65% 2.61% 2.32% 2.11% 2.09% 2.05% 1.89% 1.84% 1.77% 1.58% 1.40% 1.35% 1.21% 1.12% 1.11%

0.84% 0.81% 0.73% 0.71% 0.69% 0.63% 0.49% 0.47% 0.44% 0.39% 0.34% 0.33% 0.33% 0.30% 0.29% 0.26% 0.25%

0.21% 0.17% 0.16% 0.16% 0.16% 0.15% 0.14% 0.12% 0.12% 0.10% 0.10% 0.07% 0.07% 0.05% 0.05% 0.04% 0.03% 0.00% 0.00% 100.00%

WWW.CARGOTALK.IN

MUMBAI CSI AIRPORT

EXPORT/IMPORT CARGO TONNAGE HANDLED IN NOVEMBER 2012

S.No.

1 2 3 4

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

49 50

Airlines

Jet Airways Emirates Lufthansa Air India &DWKD\ 3DFLÂżF Singapore Airlines British Airways Etihad Airways Qatar Airways Saudi Arabian Airlines Turkish Airlines Swiss Intl. Airlines Ethopian Airlines Air France Thai Airways Malaysian Airlines UPS Federal Express Delta/KLM Airlines Martin Air South African Airlines Kenya Airways Gulf Air Fin Air Kuwait Airways Korean Air Air Mauritius Air Cargo Arologic C/O Lufthansa Air Arabia Oman Air Indigo Air Charters Blue Dart EL-AL Airlines United/Continental Airlines Bangkok Airways Srilankan Air NorthWest Airlines Pakistan intl Airlines Yemenia Airways Iran Air Egypt Air Baharin Airlines Air China Royal Jordanian Island Aviation (Maladvian) Austrian Air .LQJÂżVKHU $LUOLQHV Qantas Others

TOTAL %Variation over October 2012 %Variation over November 2011

WWW.CARGOTALK.IN

Export General

Export Perishable

Total Export

Import

Total Exp+Imp

1343.10 1378.02 564.69 689.09

502.42 603.91 668.13 383.01 631.99 542.80 339.89 715.90 292.25 152.33 273.71 94.58 224.82 237.58 0.00 323.56 324.50 71.91 264.52 132.52 173.38 168.29 0.00 24.39 26.45 79.21 0.00 36.43 33.83 0.00 53.76 40.54 0.00 19.64 34.31 29.14 32.61 25.96 13.27 11.06 0.63 0.00

0.00 566.60

1159.28 1291.08 554.62 1282.71

257.51 541.98 4.49 333.93 211.06 67.67 104.08 22.51 118.87 52.44 28.50 0.00 54.48 112.75 0.00 11.12 0.52 197.89 6.51 118.67 21.02 1.82 0.00 102.61 86.81 16.32 0.00 0.00 0.28 0.00 0.94 2.95 53.84 12.45 9.60 2.05 0.27 0.00 0.00 0.00 0.00 0.00

0.00 109.43

2502.38 2669.10 1119.31 1971.80

759.93 1145.89 672.62 716.94 843.05 610.47 443.97 738.41 411.12 204.77 302.21 94.58 279.30 350.33 0.00 334.68 325.02 269.80 271.03 251.19 194.40 170.11 0.00 127.00 113.26 95.53 0.00 36.43 34.11 0.00 54.70 43.49 53.84 32.09 43.91 31.19 32.88 25.96 13.27 11.06 0.63 0.00

0.00 676.03

2436.03 1046.46 1462.69 603.39

1200.76 654.35 470.62 399.73 87.60 199.55 357.64 1.93 231.12 386.97 252.66 442.07 235.59 92.33 365.60 28.86 6.12 6.44 0.00 13.44 53.33 1.54 157.92 0.60 10.49 26.37 105.87 49.45 48.64 73.97 3.70 11.61 0.00 17.13 0.20 9.93 0.35 0.06 1.07 0.48 0.00 0.00

0.00 384.61

4938.41 3715.56 2582.00 2575.19

1960.69 1800.23 1143.24 1116.67 930.65 810.02 801.61 740.34 642.24 591.73 554.87 536.64 514.89 442.66 365.60 363.54 331.14 276.23 271.03 264.62 247.73 171.65 157.92 127.60 123.75 121.90 105.87 85.88 82.75 73.97 58.39 55.10 53.84 49.23 44.11 41.12 33.23 26.02 14.34 11.54 0.63 0.00

0.00 1060.64

13022.79 (-)6.69 (-)2.91

6989.61 (-)2.29 7.14

20012.40 (-)5.20 0.37

13378.38 (-)8.07 (-)8.89

33390.78 (-)6.37 (-)3.55

JANUARY 2013 I CARGOTALK I 37

Cargo Performance Airports in India

TRAFFIC STATISTICS INTERNATIONAL FREIGHT

Freight (in Tonnes) For the Month S. No. Airport

For the period April to September

September 2012 September 2011

% Change

2012-13

2011-12

% Change

(A) 11 International Airports 1 2 3 4 5 6 7 8 9 10 11

Chennai Kolkata* Ahmedabad Goa Trivandrum Guwahati Calicut Jaipur Srinagar Amritsar Portblair Total

20060 4162 1086 94 2418 0 1852 3 0 245 0 29920

24200 4100 913 73 3371 0 2141 4 0 61 0 34863

-17.1 1.5 18.9 28.8 -28.3 -13.5 -25.0 301.6 -14.2

126969 22320 6206 776 24708 0 14279 97 0 803 0 196158

142999 23252 6109 705 21670 0 12416 141 0 3821 0 211113

-11.2 -4.0 1.6 10.1 14.0 15.0 -31.2 -79.0 -7.1

29963 38667 11352 3631 2934 32 86579

29435 38403 11516 3671 2468 31 85524

1.8 0.7 -1.4 -1.1 18.9 3.2 1.2

177916 234660 71988 22451 18293 197 525505

192778 242600 70607 22611 18379 170 547145

-7.7 -3.3 2.0 -0.7 -0.5 15.9 -4.0

0 59 48 0 0 149 0 0 0 0 0 0 256

0 68 52 0 0 185 0 0 0 0 0 0 305

-13.2 -7.7 -19.5 -16.1

0 675 283 0 0 1313 0 0 0 0 0 0 2271

0 423 246 0 0 1282 0 0 1 0 0 0 1952

59.6 15.0 2.4 -100.0 16.3

71 0 116826

0 0 120692

-3.2

71 0 724005

0 0 760210

-4.8

(B) 6 JV International Airports 12 13 14 15 16 17

Delhi (Dial) Mumbai (Mial) Bangalore (Bial) Hyderabad (Ghial) Cochin (Cial) Nagpur (Mipl) Total

(C) 11 Custom Airports 18 19 20 21 22 23 24 25 26 27 28 29

Pune Lucknow Coimbatore Patna Visakhapatnam Trichy Mangalore Chandigarh Varanasi Bagdogra Madurai Gaya Total

(D) (E)

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

* Estimated

REVISED TRAFFIC FORECAST FOR XII FIVE YEAR PLAN - ALL INDIA YEAR

AIRCRAFT MOVEMENTS (IN ‘OOO.) INT’L DOM TOTAL

INT’L

PASSENGERS (IN MILLION) DOM TOTAL

INT’L

FREIGHT (IN ‘OOO M.T.) DOM TOTAL

2011-12 (Base Year)

309.29

1235.36

1544.65

40.80

121.51

162.31

1467.31

812.09

2279.99

Growth Rate 2012-13 2013-14 Growth Rate 2014-15 2015-16 Growth Rate 2016-17

-4.0% 296.92 285.04 -3.0% 276.49 268.20 2.0% 273.56

-3.0% 1198.30 1162.35 -2.0% 1139.10 1116.32 1.0% 1127.48

-3.2% 1495.22 1447.39 -2.2% 1415.59 1384.52 1.2% 1401.04

-2.0% 39.98 39.18 -1.0% 38.79 38.40 2.0% 39.17

-7.0% 113.00 105.09 -6.0% 98.79 92.86 1.0% 93.79

-5.7% 152.99 144.28 -4.6% 137.58 131.27 1.3% 132.96

-3.0% 1423.86 1381.15 -3.0% 1339.71 1299.52 2.0% 1325.51

-1.0% 803.97 795.93 -2.0% 780.01 764.41 1.0% 772.05

-2.3% 2227.83 2177 -2.6% 2119.72 2063.93 1.6% 2097.57

Source : Airports Authority of India

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International Airport Exclusive Interview

DIAL Cargo kicks off Initiatives to make IGIA a transshipment hub In view of the fact that top performing international airports in the world are heavily depending on transshipment cargo by acting as transit point, Delhi International Airport Limited’s cargo division (DIAL Cargo) has recently introduced a more than 10,000 sq ft transshipment area at the IGI Airport. They have also chalked out several pragmatic programmes to make IGI Airport a cargo hub in south Asia region.

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n an exclusive interview with CargoTalk Pradeep Panicker, chief commercial officer, DIAL and Sanjiv Edward, Head DIAL Cargo unveiled major initiatives that they have taken in the recent past (during 2012) to further strengthen the cargo traffic as well as cargo operation at this airport. Though currently the airport handles –approx 1800 tonne cargo a day, the existing cargo handling capacity at this airport is 1.5 million tonne a year. With enhanced and huge capacity (especially after completion of the modernisation of Brownfield cargo terminal and launch of Greenfield cargo terminal), ensuing ultramodern facilities like cargo village and adequate impetus on e-freight through its own Cargo Community System, the airport is on the verge of a great leap forward.

“Keeping this scenario in mind, we have already taken a number of innovative measures to extend the horizon. Introducing transshipment area at the airport, creating off airport facilities like Air Freight Stations, adding three more cargo stands for freighters and strengthening the IT front are the major initiatives in this direction,” said Panicker.

According to Edward, the AFSs will not only reduce the hassles at the airport, it would also generate more cargo by bridging the gap between actual shippers and carriers. It would encourage manufacturers and exporters at the hinterlands. According to DIAL study, the AFS would also reduce end-to-end (from AFS to aircraft) transit time drastically. “For instance, we have found that the end-toend transit time from the recently launched Kanpur AFS to an aircraft at Delhi Airport was only 18 hours instead of previous 72 hours,” he informed. There are plans to introduce five more AFSs in 2013.

Commenting on the DIAL’s involvement as regard to building those AFSs, panicker clarified that there was a MOU signed between GMR (the principal consortium of IGI Airport) and CONCOR. 40 I CARGOTALK I JANUARY 2013

S (L-R): Pradeep Panicker and Sanjiv Edward at DIAL office in New Delhi

DIAL will extend all kind of supports to make the venture a success.

According to Edward, the AFSs will play a major role in due course of time in terms of reducing cost for shippers.

Brushing aside the perception that AFS will add costs for shippers, Edward

Our initiatives on AFS and Cargo Village will tremendously help the terminal operators at this airport by bringing in more cargo and streamlining the traffic flow in the near future

cargo handling at the airport. The project will be operational by 2015. “Our initiatives on AFS and cargo village will tremendously help the terminal operators at this airport by bringing in more cargo and streamlining the traffic flow in the near future,” he emphasised. He also made it clear that airport terminals are not built for cargo storage. Also, no terminal operators are depending on demurrages, which are already showing a decline (about 30 per cent) yearon-year. In addition, as a custodian of the two terminals DIAL is also working with them regarding global best practices. “We are closely monitoring the terminal operators and evaluating their services time to time, so that shippers are benefited through world class services,” stated Edward.

maintained that it would rather reduce the processing and transportation costs. “There will be value addition to each shipment in terms of processing and transportation by experienced and state-of-the-art services,” he added. In addition, there is separate lane for this special (customs bonded and well processed) shipments.

Panicker also underlined the importance of the proposed Cargo Village for a smooth

“DIAL is very sincere about the development of cargo infrastructure at this airport. We have already decided to invest more than Rs 1200 crore for creating cargo infrastructure and there would be no dearth of further investment as and when required,” added Panicker. Meanwhile, about Rs 700 crore has been invested for the Brownfield and Greenfield cargo terminals and more than Rs 500 crore has been kept for the cargo village project.

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International Airport Focus India

Birmingham Airport

The strategic manufacturing and distribution point The Midlands region has a long standing passenger and cargo connectivity with India, albeit via airports in southern England and mainland Europe. The region has one of the largest Indian diaspora in Europe.

Speaking to Cargotalk, Uday K Dholokia, Brand Ambassador-Asian Markets, Birmingham Airport, talked about the airport’s expectations from India as a source market pertaining to traffic.

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irmingham region has witnessed a significant growth in the business and academic/student traffic with India. The region houses major distribution centres for all the major supermarkets and multiples, food manufacturing which relies on supplier chain links with India. The cargo currently comes from air cargo hubs from mainland Europe and southern England.

“The rising distribution and environmental costs make a direct connectivity to Birmingham Airport a zero sum game. Added to the perishables, there is a growing bilateral traffic in highend processed foods, pharmaceuticals, automotive and specialised engineering,” Dholokia pointed out. In addition, the region has demonstrable volume of traffic to northern India, in particular, Delhi and Amritsar and connectivity to Gujarat via Mumbai. The region is a natural link/stop over for traffic from Canada, North America

and Europe flowing into India and on to the Far East. The biggest growth is seen during wedding seasons, entertainment and religious gatherings, along with courier and cargo supplies feeding these high profile events on a regular basis.

“In the interim, the regular daily connectivity by Emirates and Turkish airlines, the belly hold capacity of the aircraft is a serious value proposition for many forwarding agents and supply chain

The USP for the airport is that it is in the centre of the UK and the heartland of the manufacturing and distribution centres” Uday K Dholokia Brand Ambassador-Asian Markets, Birmingham Airport

logistics companies. Added to this, the airport can facilitate access to A300/200 pure freighters and specialist cargo,” he highlighted.

The airport is investing £300 million in a runway extension, and with integrated regulatory base this will offer additional capabilities for wide-bodied belly hold and increased pure freighter business. According to Dholokia, the value proposition for food and drink and automotive supply chain links is already in existence. Added to this, there is a tremendous opportunity for developing E-Freight proposition with port-centric added value propositions around the airport.

“The USP for the airport is that it is in the centre of the UK and the heartland of the manufacturing and distribution centres.

It has good motorway connectivity and logistics support. The management team at Birmingham Airport is agile, focussed and entrepreneurially committed to making cargo connectivity with India happen,” emphasised Dholakia. The airport has successfully seen growth of passenger and belly-hold cargo on Emirates and Turkish airlines. “The airport is passionately committed to having direct passenger and cargo connectivity with India, especially the re-establishment of the successful Air India connectivity from Birmingham to north India,” he added.

He shared that the Airport has a clear and focussed business plan to develop further connectivity into north India and Mumbai to feed load factors for the Far East.

The airport is keen to partner with specialist cargo and handling companies to develop a modern specialist world-class European hub for cargo.

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Family Album ACAAI Convention

2 1 0 2 I ACCAes experience

Delegat y t i l a t i p s o Turkish h The 39th Annual Convention of the Air Cargo Agents Association of India (ACAAI), which was held from November 22-25 in Istanbul, provided the delegates an opportunity to discuss the new avenues of business. The pleasant atmosphere, warm hospitality and reach cultural heritage of Turkish people reached the convention to a new high.

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Family Album ACAAI Convention

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Family Album ACAAI Convention

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Family Album ACAAI Convention

Family Album Golden Jubilee Celebration

s e t a r b e l e c I A F F F e e l i b u J n e Gold i a b m u M in Federation of Freight Forwarders’ Associations in India celebrated its Golden Jubilee on December 2, 2012 in Mumbai. Started with Golden Jubilee Lectures Series, the mega event witnessed a huge gathering comprising customs house agents (both air and sea), representatives from ports, airports, shipping lines, airlines, customs officials, etc., from across the country.

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Family Album Golden Jubilee Celebration

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Family Album Golden Jubilee Celebration

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International Conference Supply Chain Management

CSCMP 2013 conference in Europe targeting India as a source market The Council of Supply Chain Management Professionals (CSCMP) - one of the world’s leading educational organisations for the supply chain management and logistics sectors - will hold its annual European Conference at Amsterdam Airport Schiphol, from May 15-17, 2013. Rick Blasgen, CEO, CSCMP, spoke to Cargotalk to provide details.

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ounded in 1963, the Council of Supply Chain Management Professionals (CSCMP) is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession.

CSCMP has more than 9,000 members from 63 countries – representing business, government and academia. These members are the leading practitioners and authorities in the fields of logistics and supply chain management. According to Blasgen, CSCMP provides its members with the expertise and knowledge to help their companies create efficient, effective supply chains so they can successfully compete in the 21st century. CSCMP also conducts hundreds of round table conferences worldwide, making it easy for its members to engage with their counterparts at venues closer to them.

Around 25,000 professionals attended CSCMP-organised events in 2011. In addition, CSCMP provides online and onsite professional educational opportunities to supply chain professionals. The theme of next year’s event is ‘How to cut supply chain costs without paying the price’. The event will offer a variety of educational sessions and networking opportunities to global supply chain executives. “Our events draw logistics and supply chain professionals from around the world.

Attendees hear the latest, most relevant best practices and real-life stories about solutions that have been developed and implemented.

CSCMP conferences are known for straight-forward sharing of information and networking sessions in which people can discuss topics of mutual interest and gain business contacts that prove beneficial in the long-run,” said Blasgen. He also informed that both in the United States and in Europe, CSCMP have hosted many individuals from India, including students/academics as well as practitioners from a variety of industries.

“An important aspect of CSCMP is that we 58 I CARGOTALK I JANUARY 2013

are an association of professionals from all sectors, including those that support the industry like consultants, recruiters, material handling and hardware/software providers, third party providers, etc.,” he added.

Forward-thinking practitioners understand that the key to a well-run supply chain is to manage those things that are within their control and anticipate and mitigate those that are not” Rick Blasgen CEO, CSCMP

CSCMP attracts high-level speakers from leading companies. “We exist to further the disciplines of logistics and supply chain management around the world, and the careers of the individuals within our growing and dynamic profession. India is an increasingly significant global player within supply chains today, and as such, professionals from India can benefit greatly from attending our events around the world,” Blasgen maintained. According to him, the Amsterdam event follows a long line of successful past CSCMP European conferences; the last took place in Frankfurt in April 2012, and was attended by approximately 200 executives from major manufacturers and industry suppliers. The CSCMP European conference is a regular annual feature of the organisation’s global educational programme.

“The secret to the world’s topperforming companies is the efficient and expertly-managed supply chains that support them. Forward-thinking practitioners understand that the key to a well-run supply chain is to manage those things that are within their control and anticipate and mitigate those that are not. The single component they’re most able to control is costs,” Blasgen said.

“CSCMP’s Europe Conference will share insights, best practices, and techniques of leading global supply chain executives. Delegates will be able to use this intelligence to streamline their own organisations’ supply chains and to reduce cost significantly. Attending this event is a small investment with potentially major returns,” he asserted.

The conference programme will focus on reducing administrative and operating costs, improved sourcing strategies, and sustainability as a driver of supply chain cost reductions. Blasgen informed that the CSCMP is staging its India Conference in Mumbai, from February 22-23, 2013.

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Industry Events Cold Chain & Shipping

PHD Chamber of Commerce

hosts conference on cold chain in Delhi Recently, the PHD Chamber of Commerce and Industry with the support of Ministry of Food Processing Industries (MOFPI) and Agricultural and Processed Food Products Export Development Authority (APEDA) organised a National Conference on ‘Cold Chain Management-2012’ in New Delhi. Dr. Saumitra Chaudhury, Member, Planning Commission, Government of India was the Guest of Hounor at the Conference.

T

he conference was addressed by Sandip Somany, president, PHD Chamber; Dinesh Rai, chairman, Warehousing Development and Regulatory Authority (WDRA); Sanjeev Chopra, Jt. Secretary, Ministry of Agriculture, Govt. of India & MD, National Horticulture Board; RS Bedi, chairman, Task Force on Logistics Management, PHD Chamber and several other industry experts. At this conference knowledge partner Yes Bank released a study on ‘India’s Cold Chain Sector’.

In his welcome address, Somany said that India’s supply chain management for storing food products and pharmaceutical products is highly inefficient. He pointed out

that India is the 1st largest producer of milk, 2nd largest producer of fruits, vegetables, 5th in eggs and 6th in fish in the world. In spite of that, 20-30 per cent of all food products are wasted every year due to the lack of Proper Cold storages. He mentioned in his address that there is an ardent need to develop a robust Cold Chain infrastructure in the country to prevent this huge wastage not only in food processing sector but also in pharma segment. He also laid emphasis on the need of adopting new technologies and methodology for strengthening the existing Cold Chain infrastructure. Also, the supply chain needs to be designed and built as a whole in an integrated manner and should be well supported using IT tools

and software. “By building an efficient and effective supply chain using state-of-the-art techniques, we can develop an efficient and effective cold chain infrastructure for both the sectors,” he said.

Bedi, while presenting the theme speech, informed the participants that the Indian cold chain market is worth $3 billion. This market is expected to grow to $12.4 billion by the end of 2015. Against a requirement of over 35 million tonne of cold storage, India has exact 5,386 cold storage units with a cumulative capacity of nearly 25 million tonne, resulting in loss of about 40 per cent of the agri-produce post-harvest.

India Maritime 2012 shows concern over procedural hassles

I

ndia Maritime Conference 2012, which was held recently in Goa raised some of the critical issues. Especially, the conference focussed on procedural bottlenecks and other stumbling blocks in maritime infrastructure development.

At this conference the participants also discussed strategy options towards building a globally competitive maritime sector.

GK Vasan, Union Minister for Shipping inaugurated the

60 I CARGOTALK I JANUARY 2013

India Maritime 2012 (Exhibition & Conference) which was jointly organised by the Ministry of Shipping, Government of India and Federation of Indian Chambers of Commerce & Industry (FICCI). The Government of Goa was the ‘Host State’ for the event.

The theme of the event was ‘Building a global maritime sector’.

Vasan released FICCI-E&Y knowledge paper on the Indian Maritime sector covering a large

number of important areas. Pradeep K Sinha, Secretary, Ministry of Shipping, Government of India was also present at the event and delivered the keynote address.

A ‘Special Session on Investment Opportunities in Goa’ was also organised to showcase the opportunities available for private investors in the state of Goa. The special session was aimed to deliberate on strategies, which would enable the state to attract investment.

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Shipping & Ports New Launch

Norbert Dentressangle

launches ‘Red Ocean Connect’ for end-to-end services Recently, Norbert Dentressangle acquired the freight forwarding operations of the John Keells Group in India and Sri Lanka. The acquisition was an integral part of the strategic initiative undertaken by Norbert Dentressangle to expand its global footprint, which now covers around 500 locations across 25 countries.

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orbert Dentressangle is an international Transport, Logistics and Freight Forwarding company.

It provides high value-added solutions in its three business lines on the continents of Europe, America and Asia, and incorporates sustainable development in its businesses. It operates in 23 countries and employs 33,000 people.

Following a raft of acquisitions, including the recent acquisition of the freight forwarding activities in India and Sri Lanka of Sri Lankan conglomerate John Keells Group, Norbert Dentressangle now has a strong presence in the world’s major trading regions, with a global network of offices strategically located to manage freight from all key economic gateways.

With the successful launch of its Red Sky Connect primary airfreight network earlier this year, Red Ocean Connect allows Norbert Dentressangle to provide a door-todoor service between Asia, Europe, North America and South America both by sea and air, ensuring complete, end-to-end supply chain management and control.

eight locations in India, with its full-fledged presence in major metros. This includes air, sea and multimodal freight forwarding, consolidation services, customs brokerage, logistics consultancy services, liner operations, transportation, etc.

“Given our expertise in serving a diverse portfolio of customers and industry groups in other parts of the world, we will focus on developing strong relationships in India by targeting potential segments such as engineering, manufacturing and retail amongst others.” The company’s objective is to offer a total value proposition to the

Speaking to Cargotalk, Chaminda Hewamallika, MD Norbert Dentressangle (India) informed that the company currently offers the full range of logistics and freight forwarding services across more than 62 I CARGOTALK I JANUARY 2013

For Norbert Dentressangle, 2012 was a challenging year, with significant pressure on its yields. “However, we have managed to record a healthy year-on-year growth, while maintaining consistency in our market expansion plans. We are quite bullish about our prospects for 2013 as now we have the capability to promote a global network which is progressively expanding. We will continue to identify captive market opportunities which are emerging on the major trade lanes as well,” Hewamallika stated. customer, without limiting ourselves to serving their freight forwarding.

We are quite bullish about our prospects for 2013 as now we have the capability to promote a global network” Chaminda Hewamallika Managing director, Norbert Dentressangle (India)

Under the new service, Norbert Dentressangle offers local vendor management, daily FCL and LCL services, customs and duty management and destination services, providing a secure and reliable service managed by a single partner.

For European destinations, the service also provides access to Norbert Dentressangle’s pan-European transport and logistics networks.

The year 2012 and beyond

“We have ongoing relationships on a global scale with some of the leading retail, electronics, automotive and FMCG brands, which will also be extended to India based on the specific requirements of the customers,” he added.

Hewamallika claimed that both Red Ocean and Red Sky Connect were developed around the concept of offering a complete door-to-door service to the customers through a single network, with no hidden charges.” Our core-carrier programme, where we have established BSAs with some of the major carriers, enables us to be more responsive to timecritical shipping requirements of our customers,” he said.

Norbert Dentressangle sees the India market becoming more solutions-driven with customers favouring those service providers who are capable of controlling their entire supply chain, rather than selective areas.

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JANUARY 2013 I CARGOTALK I 63

International Exhibition Automotive Logistics 2012

W Vinita Kumar, senior advisor for transport, Planning Commission addressing the conference

Planning Commission urges

for integrated transport system

W Panelists interacting with the audience at Automotive Logistics India Conference in Pune

The 6th annual Automotive Logistics India conference, recently held in Pune, was characterised by a new level of openness and debate among the 300 delegates, and a desire to move on from recitals of familiar problems to engaging together to solve them.

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mid recent uncertainty about economic growth there remains confidence that, despite not being able to accurately forecast it, India is still on its way to 5 million annual car sales within a handful of years. That compares with an expected 2.6 million for 2012, and will move the country up to being the world’s third biggest car market, after China and the USA. Overall, India is “nearing an inflection point” at which its economic growth will increase rapidly, says consultancy Roland Berger. Having started its economic liberalisation about 15 years after China, the next 15 years will see “dramatic” reductions in poverty and put India on course to be the world’s third largest economy in terms of purchasing power by 2020.

The conference featured participation from a high level of national government, with a keynote address by Vinita Kumar, senior advisor for transport at the Planning Commission. Kumar said that transport64 I CARGOTALK I JANUARY 2013

related issues are a focus of India’s 12th Five Year Plan, which is a year underway. She noted its intention of raising the share of GDP invested in transport from 7 per cent to 10 per cent, which she characterised as a “five lakh crore programme” (50 trillion rupees or $1 trillion).

The conference this year also featured several new voices and themes, and heard that private investment in rail is back on the agenda. Weaknesses in policy that have characterised debate at the previous five Automotive Logistics conferences were acknowledged by the Planning Commission.

Kumar reviewed many welldocumented challenges, including an over-reliance on a road network which is itself under-developed, bottlenecks and capacity constraints at ports, a general lack of multimodal transport including under-use of rail, and maze of bureaucracy that makes moving goods cumbersome and costly.

The latest Five Year Plan includes a

range of upgrades to rail infrastructure and rolling stock, as well as roadworks and some port developments. The share of the investment anticipated from the private sector is expected to grow substantially from its current levels of around 25 per cent, she said. In general, the intention is to have more ‘optimally distributed’ transport with more intermodal and move away from the present excessive reliance on road.

The Planning Commission estimates that for the financial year 2012-13 India will have moved 1,025m tonne by rail, and nearly twice as much as that by road. Port cargo will have reached 1,032m tonne, though coastal shipping will have moved only 125m tonne. In total, rail transport will have accounted for around 30 per cent of freight movement (although it is much lower for automotive), with just a few percentage by water and air. Unfortunately the bias to road transport will get worse in the near future.

Kumar also acknowledged “the near-absence of an integrated regulatory regime for overseeing tariff-setting, the cost of operations, anti-competitive practices, etc.” However, her description to delegates of the content of the 12th national plan did not include any reference to tackling these issues.

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Industry Events Talent Hunt 2013

Million Minds and CILT to present Talent Hunt and Achiever Awards in Feb 2013 Million Minds Management Services (formally known as T2P Consultants) along with Chartered Institute of Logistics and Transport (CILT) has instituted the Talent Hunt Award for students and Achievers Award for the industry professionals pertaining to logistics and supply chain industry.

S Subhasish Chakraborty, chairman & managing director, DTDC Courier & Cargo (at centre) presenting award at ‘Talent Hunt 2012’ function in New Delhi

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o be held on February 9, 2013 in New Delhi, the second edition of the Award function to felicitate the winners in different regions is expected to draw huge participation from across the country.

Talent Hunt Award Logistics Talent Hunt award, designed by Million Minds, is a search for talented students who can think out-of-the-box and bring out new ideas in the field of logistics and Supply Chain Management.

Management graduates are invited to make presentations on pre-determined topics. The topics for presentation are: Gap Analysis and Solutions in Indian Logistics in terms

Logistics Talent Hunt in Mumbai On December 2, 2012, Million Minds Management Services organised their second edition of Logistics Talent Hunt programme in Thakur Institute of Management & Research in Mumbai. Students from various colleges namely MET Business School, ITM Business School, IBSAR, Father. C. Rodrigues Institute of Management Studies, Chetana’s Institute of Management & Research, Jankidevi Bajaj Institute of Management Studies, etc., participated in the event. Students participated in teams and gave presentations on real time pinch topics which logistics industry is grappling with. Topics included Gap Analysis and Solutions in Indian Logistics in terms of Human Resource; Real Face of Logistics – Drivers - India Vs Global Benchmark and Logistics Services in Rural India – Potential & Practices. Chief speakers at the event were Subhasish Chakraborty, chairman cum managing director, DTDC Group and C. K Jena, ex-chairman of the Indian Railway Board.

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of Human Resource; Real face of Logistics – Drivers - India vs. Global Benchmark and Logistics Services in Rural India – Potential & Practices.

A jury, consisting of logistics majors, would make judgments to declare the winners.

Achievers’ Award Achievers’ Award has been conceptualised to recognise the good work being done by members of the Logistics fraternity. The awards are presented to individuals who have displayed excellence in the field of management and Logistics, have acted in a socially responsible manner and created a work environment in which their employees can learn and grow.

Logistics companies can nominate their candidates under different categories of awards which are: Doyen of Indian Logistics, Logistics Innovator of the Year, Logistics Ambassador of the Year, E Logistics promoter of the Year, Warehouse Manager of the Year, Logistics Promoter/ Achiever, Lifetime Achievement, IT Logistics Manager of the Year, Best Trainer/ HR Manager in Logistics, Logistics Women of the Year, Transport Manager of the year, Young Achiever Award, Logistics Journalist of the Year, Potential Logistician and Real Face of Logistics Award.

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Study& Survey Facts & Figures

Top 30 international airports in terms of volume

IATA study reveals tough times

A

for air cargo

(in metric tonnes)

ccording to the IATA study published in November 2012 the air freight markets are now in decline, making life particularly difficult for airlines heavily exposed to the markets in Asia-Pacific and S America.

The study reveals that the freighter fleet has been shrinking for some time, but overall freight capacity had been increasing because of the passenger fleet. Capacity has now been cut but is still lagging behind the decline in air freight demand.

Demand Passenger volumes still expanding slowly but air freight markets shrinking once more

Capacity Passenger capacity growth slowed ahead of demand but freight capacity still lagging

Airport

(Last update: October 25, 2012) Total

Percentage change

HONG KONG, HK (HKG)

2 259 000

(0.3)

INCHEON, KR (ICN)

1 379 413

(5.7)

DUBAI, AE (DXB)

1 278 706

1.4

SHANGHAI, CN (PVG)

1 277 969

(5.0)

TOKYO, JP (NRT)

1 129 807

3.1

FRANKFURT, DE (FRA)

1 112 264

(10.3)

PARIS, FR (CDG)

1 091 697

(8.0)

SINGAPORE, SG (SIN)

1 051 226

(1.6)

MIAMI FL, US (MIA)

942 796

2.4

ANCHORAGE AK, US (ANC)

909 520

(4.5)

TAIPEI, TW (TPE)

895 461

(6.0)

AMSTERDAM, NL (AMS)

855 791

(3.2)

LONDON, GB (LHR)

851 187

(1.7)

BANGKOK, TH (BKK)

776 015

5.0

CHICAGO IL, US (ORD)

583 145

(0.1)

LOS ANGELES CA, US (LAX)

568 579

1.1

NEW YORK NY, US (JFK)

550 751

(11.0)

DOHA, QA (DOH)

484 172

6.7

LEIPZIG, DE (LEJ)

449 203

16.8

COLOGNE, DE (CGN)

410 620

0.4

BEIJING, CN (PEK)

386 771

4.6

OSAKA, JP (KIX)

385 437

(4.3)

LUXEMBOURG, LU (LUX)

354 981

(7.2)

LIEGE, BE (LGG)

352 479

(10.6)

KUALA LUMPUR, MY (KUL)

350 742

(0.7)

ABU DHABI, AE (AUH)

318 528

17.5

BOGOTA, CO (BOG)

297 584

5.0

GUANGZHOU, CN (CAN*)

295 409

108.9

ISTANBUL, TR (IST)

271 466

(1.0)

MUMBAI, IN (BOM)

271 328

(4.1)

Airports participating in ACI’s Monthly Traffic Statistics Collection. Results are preliminary. *ANC data includes transit freight.

Passenger load factors remain near record levels but freight loads decline once more

,PSURYH SUR¿WDELOLW\ WKURXJK IXHO HI¿FLHQF\ FRQVXOWLQJ www.iata.org/fuelconsulting

Source: AAI

Earlier, IATA’s global traffic results for October showed a significant deterioration in freight demand.

In October freight demand was 3.5 per cent below the previous year level and declined 2.2 per cent compared to September. Air freight demand fell sharply in October, down 3.5 per cent compared to October 2011 after being up 0.9 per cent in September.

The weakness in demand continues to be focused on Asia-Pacific airlines, while Middle East carriers experienced strong demand growth. Cargo demand is expected to increase by 1.4 per cent (not enough to make up for the 2.0 per cent decline in 2012). The mismatch between growth rates for passenger and cargo demand tends to lead to cargo capacity in excess of demand and yields falling by 1.5 per cent.

Source: IATA

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