ACAAI 2018

PAGES 88 inclusive of cover

ACAAI CONVENTION ISSUE 2018

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India’s Logistics Environment 2017-18

Air Cargo facilitating cold chain

Ground Handling-Still a long way to go

High ‘Visibility’ for better strategic decision making

Time to Upscale Airport Infrastructure

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Contents

ACAAI CONVENTION ISSUE 2018

Editor and Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Gaurav Dubey Correspondent Upamanyu Borah

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08 COVER STORY

Air Cargo Industry: Paving a Road Ahead

SPECIAL FEATURE

Ground Handling-Still a long way to go

Director Ajeet Kumar Marketing Managers Niti Chauhan Parminder Singh Asst Manager Marketing Mehuli Choudhury

focus FEATURES India’s Logistics Environment 2017-18 ...........60

Marketing Executive Twinkle Thakur Accounts & Administration Nitish Kumar

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Fitsum Abadi MD - Ethiopian Cargo & Logistics Services ....................................................74

FEATURE

High ‘Visibility’ for better strategic decision making .....................................46

INTERVIEW

Air Cargo facilitating cold chain ............26

Aviraj Rathi Director, Namaste Group ...........................75 Shaishav R Shah Whole-Time Director, GSEC Limited ..........76 Hareendranathan e p Director, Indian Aviation Academy .............78 Sunil Arora Vice President, ACAAI and Managing Director, Delta Air Freight Services Pvt Ltd ........................................................80

Sr Designer & Visualiser Shaique Ahmad Designer & Visualiser Mayank Bhatnagar All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same.

CargoConnect is printed, published and owned by Smiti Suri, and

is printed at Compudata Services, 42, Dsidc Shed, Scheme–1,

Time to Upscale Airport Infrastructure ............................54

FRONTLINE .............................................6

Okhla Industrial Area Complex, Phase–II, New Delhi-110020,

REPORT ..........................................82-83

Editor–Smiti Suri

APPOINTMENTS ...................................84 UPCOMING EVENTS ..............................85

Air Cargo Connectivity Transcending Global Barriers .......................................64

and published at 6/31-B, Jangpura–B, New Delhi-110014.

UP and CLOSE T A Varghese

President, ACAAI .....................................................86

6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 97113 83365, 98109 62016 Email: cargoconnect@gmail.com info@surecommedia.in Website: www.surecommedia.in

FRONTLINE “India’s air cargo and customs infrastructure modernisation program offers an opportunity to unlock exports in higher value-added sectors as well as enable India based manufacturers to source their production components more efficiently, making India a more attractive place for business.”

Glyn Hughes Global Head of Cargo, IATA

Government and economic development institutions need to know in the first place that how much trade – local, regional and global depends on the movement of air cargo. In the countries where this awareness is high, there infrastructure projects are properly financed and implemented as well.”

Vladimir Zubkov, Secretary General, TIACA

Mike Chew CEO, Air India SATS

“The Indian air freight market is expanding at a rapid pace and, with increase in international trade, it is expected to reach 2.8 million tons by 2018.”

“India and Ukraine have historically had an excellent relationship, and it’s very good to see it moving in upward direction.

Antonov Airlines looks forward to an ever-closer relationship with our counterparts in India.”

Oleg Orlov, Vice President, Antonov Company

“The Indian market is of major focus in our expansion plan. We are constantly studying the market to see how we can strengthen our position in the country. Presently, we are serving at 11 destinations across the country, and we hope to increase this number in the near future.”

Mohammed Al Musafir Sr Vice President – Commercial Cargo, Oman Air 6

CargoConnect - acaai 2018

Sanjiv Edward Chief Commercial Officer, Delhi International Airport Limited “It’s our constant endeavor to improve the service standards and modernise the business for the benefit of various stakeholders, customers, passengers as well as for easing cargo movement.”

FRONTLINE “Cargo growth this year has been stable both globally and in India. The cargo growth in India has been in double digits, more from the export side. This also reflects on the global market, indicating that the overall global growth has been steady.”

Keki Patel Cargo Manager – India and Nepal, Emirates SkyCargo

Role of technology in Air Cargo Management has shifted from efficiency driver to enabler of fundamental innovation and disruption.

Digital platforms will play an increasingly transformative role in the global air cargo system.”

Joyce F Carter President and CEO, Halifax Stanfield International Airport Authority, Canada

“We are closely watching investments and developments at other airports around the world, including India.

Airports in India have made tremendous improvement in recent years and we applaud them for it.”

Marcel de Nooijer

Executive Vice President, Air France Klm Martinair Cargo

Keku Bomi Gazder, CEO, AAICLAS

“Indian airports are doing great job by modernising infrastructure and showing commitment to the growth of air cargo industry. We view India as a very important growth market.”

Roger Samways Vice President - Cargo Sales, American Airlines Cargo

“Our main trading partners are China, Korea and Japan. However, with the Hungarian government’s opening to the East policy we, as an airport, see major business possibilities with India and the country’s growing trade industry.”

René Droese Executive Director Property and Cargo, Budapest Airport

“We see good potential in the Indian market and would like to strengthen our cooperation with Jet Airways who have grown their presence into European markets. In India, we are looking into courier as a product, as a very integral part of our business plan.”

Ameet Sareen GM Global Cargo Products and BD, Air Canada Cargo

“India is one of the fastest and largest growing economies in the world and projected to reach greater heights in the coming times. We consider India to have the potential to be a significant contributor in the overall air cargo industry.” acaai 2018 - CargoConnect

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Air Cargo Industry:

Paving a

Road Ahead

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Excitement among the Indian air cargo industry stakeholders has reached a new level as the 44th edition of Air Cargo Agents Association of India (ACAAI) convention is all set to kick start in Abu Dhabi from May 3 to May 6 with the theme – AirBorne Cargo - Delivering Excellence. The three-day-long annual event offers an excellent opportunity and a wonderful platform to discuss various issues related to the Indian air cargo industry. This year, ACAAI is going to touch upon a myriad issues ranging from increase in volumes, enhanced connectivity, beneficial policies and regulatory environment. Ritika Arora Bhola and Deepashree Banerjee reach out to experts and talk about various subjects related to the Indian air cargo industry.

L

ooks like, India is all set to become the mecca of all aviation companies.

After all, there is no other country which offers a 360-degree evolution ecosystem when it comes to development and growth. With the Indian air cargo industry going digital, whopping investments being done to improve infrastructure and technology, numerous air cargo carriers moving millions of tons of cargo to and from the country, experts curiously adapting global standards, formation of new policies and standards of working – It seems India has emerged as one of the fastest growing air cargo markets across the globe and presents abundant opportunities for industry operators and those investing in one of Asia’s economic powerhouses.It is no wonder why India is called next frontier of economic growth. According to a forecast by the International Air Transport Association (IATA), India will become the third largest aviation market in the world by displacing the UK in 2026.

Considering the above, in the beginning of the year 2017, Former Indian Civil Aviation Minister, Ashok Gajapathi Raju, in an interview spoke at length about the tremendous growth potential of the country’s air cargo segment.

The government in its national civil aviation policy has offered major thrust with an aim to boost air cargo business, especially in the backdrop of rising ecommerce activities and exports. The stiff competition from foreign logistics service providers due to the open-door policy over the past few years has given birth to a new kind of grouping in the air cargo sector, mainly for survival of smaller operators. Many smaller cargo agents, while maintaining their individual identities, have also entered into an

acaai 2018 - CargoConnect

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“The theme can be summarised in the first five English alphabets–ABCDE, expanded as ‘AirBorne Cargo- Delivering Excellence.’ We are endevouring to include certain new and relevant topics which will provide knowledge and add value to the effective conduct of the business of our members.”

“The business sessions in the ACAAI convention will focus on the ways and means by which the air cargo industry can deliver all round excellence in all aspects of its activities. Fresh thinking, out-ofthe-box ideas and new perspectives for growth and development has become need of the hour.”

TA Varghese

Hemant Bhatia

President, ACAAI

Immediate past President, ACAAI

excellence in all aspects of its activities. Multiple changes understanding among themselves on cargo aggregation. This in the current global scenario pose great challenges, which is to strike better deals with the airlines, particularly foreign necessitate fresh thinking, out-of-the-box ideas and new airlines. According to the data available, more than 80 per cent perspectives for growth and development. In many ways, the of Indian cargo (both exports and imports) are served by the current environment offers exciting prospects if our industry international carriers, such as British Airways, Singapore Aircan catch the rising tide at its peak.” Adding to what Bhatia lines Cathay Pacific, Qatar Airways, Saudia, Etihad Airways, mentioned, TA Varghese, President, ACAAI, states, “The Emirates, Lufthansa, Air France amongst others.However, theme can be summarised in the first five English alphabets– unfortunately, such an understanding is yet to emerge among ABCDE, expanded as ‘AirBorneCargo- Delivering Excellence.’ We regulators or facilitators. The Customs department still preare endevouring to include certain new fers to go its own way. But, in the rapidly and relevant topics which will provide changing scenario, the age-old practice is According to a knowledge and add value to the effective in dire need of a review. forecast by the conduct of the business of our members.”

Throwing light on the theme , air cargo In order to give more emphasis and International expert, Ramesh Mamidala, CEO, Celebi address various relevant issues which Air Transport Delhi Cargo Terminal Management need immediate attention of air cargo Association (IATA), Pvt Ltd, too opines, “The air cargo experts and authorities, Air Cargo Agents market has seen remarkable changes Association of India (ACAAI) is back India will become with initiatives taken by different sectors with its 44th annual convention, going to the third largest such as high end services being offered be held in Abu Dhabi from May 3 to May 6. aviation market to the air cargo customers by the airlines This year the theme of the three-day-long in the world by as larger cargo friendly aircraft have convention is ‘AirBorne Cargo – Delivering come into the market. The door-to-door Excellence.’ Talking about the theme, Sunil displacing the UK in services offered by the express carriers, Arora, Vice President, ACAAI, says, 2026 continuous up-gradation in the terminal “We have been talking about the service facilities and technological advancements factors, the infrastructure, facilitation, in the warehousing processes by cargo terminal operators, regulators but now the time has come when we have to talk steps being taken by the regulatory authorities for reduction about delivering excellence – how cargo industry is working in cargo dwell time at the Indian airports which will augment around. Today, you are bound to deliver good services and you the capacity of warehouse leading to overall growth in air cargo have to excel in delivering excellent services. Excellence in throughput.” delivering has become very important and crucial. To be at that level, you also have to utilise technology, upgrade systems, and Mamidala further speaks, “Air cargo offers high level of securideliver knowledge. You have to spend in manpower, technical ty and reduced risk of pilferage and damage as the airport safepeople coming in, etc.” Agreeing with Arora, Hemant Bhatia, ty controls over cargo are tightly managed. Industries such as Immediate Past President, ACAAI, shares, “The business the automotive and retail industry utilise air freight to achieve sessions in the ACAAI convention will focus on the ways and just-in-time inventory replenishment. Being fastest mode of means by which the air cargo industry can deliver all round

10 CargoConnect - acaai 2018

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“Air cargo offers high level of security and reduced risk of pilferage and damage as the airport safety controls over cargo are tightly managed.

Industries such as the automotive and retail industry utilize air freight to achieve just-in-time inventory replenishment.”

“Excellence has to be a way of life - a minimum

Ramesh Mamidala

Samir J Shah

CEO, Celebi Delhi Cargo Terminal Mgt India Pvt Ltd

deliverable always. This fact is not understood by all. Hence, the theme remains apt and appropriate.

We need to ensure that excellence is a way of life a routine - a normal.”

Owner, JBS Group of Companies

transportation, high value and perishables goods are preferred to be transported by air. As a part of expanding logistics system, the demand of air cargo movements is continuously growing as it focuses on greater efficiency, reduced costs, customer friendly services and on time delivery. Also, the trends seen in high demand electronics from China and Asia provide unique opportunity for all-cargo industry. It is observed that a good growth in international air cargo in top airports of the nation will continue over next decade. A lot of it depends on our ability to invest in and expand our infrastructure, which certainly will happen. The air cargo industry in India is experiencing both, growth and rapid positive transformation.”

On a positive note, veteran logistics service provider, Samir J Shah, Owner, JBS Group of Companies, states, “Excellence has to be a way of life - a minimum deliverable always. This fact is not understood by all. Hence, the theme remains apt and appropriate. We need to ensure that excellence is a way of life - a routine - a normal.”

Bharat J Thakkar, Co-founder and Joint Managing Director, Zeus Air Services Pvt Ltd, and Past President and Permanent Adviser Board, ACAAI, stresses on the fact that the theme should cover every aspect of the industry. “It is a known fact that India is the next frontier of economic revolution and our special guests - speakers and panelists from Exim, airlines, Airport Operators, Technology Innovators, advisers to TIACA, On UN panel, International Customs Brokers Association, Head of companies, will discuss present scenarios and way to future, what customer needs, how to re-design develop and deliver, airport regulatory processes, security environment and how our industry can achieve excellence.”

In the meantime, Vipan Jain, COO, Delhi Cargo Service Center, intervenes and shares, “The 4 words for 44th Annual Convention are the best theme to deliver Excellence in Airborne - it means we have the information right in the air before arrival.

This advance information shows excellence results on ground for planning, execution and cargo delivery.”

Young and talented freight forwarder Yashpal Sharma, Managing Director, Skyways Group, also adds his views on the theme, “Delivery of product has become the key factor today and it is important that engagements and deliberations on service excellence take place in aircargo industry too. ACAAI conference is one such where all stakeholders of the industry come together and work towards this goal.” Talking about theme, Shaishav R Shah, Whole-time Director, GSEC Ltd, also shares his

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“Our special guests - speakers and panelists will discuss present scenarios and way for future, what customer needs, how to re-design develop and deliver, airport, regulatory processes, security environment and how our industry can achieve excellence.”

“The 4 words for 44th Annual Convention are the best theme to deliver Excellence in Airborne - it means we have the information right in the air before arrival. This advance information shows excellence results on ground for planning, execution and cargo delivery.”

Bharat J Thakkar

Vipan Jain

Co-Founder & Joint MD, Zeus Air Services Pvt Ltd

COO, Delhi Cargo Service Center the country’s logistics industry.

opinions. He says, “This theme could not have come at a better time. Now that the growth trajectory is set, it is time to improve on the quality of service and pursue excellence. A lot of changes are happening in the statutory side of our business and all these will go towards resolving some long pending issues affecting quality of our services. At the same time, we, as facilitators will have to raise our own bench marks of service quality in tandem.”

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Interna�onal

Development & Innovations in Air Cargo As per the information shared by KS Kunwar, Director General, The Air Cargo Forum India (ACFI), the innovative developments taking place in the ecosystem of air cargo logistics industry has created, multiple opportunities for growth. At the same time, it also has multiple challenges too in the current competitive global scenario of meeting the speed of delivery with quality and competitive prices.

Considering that the logistics industry plays a very crucial and important role in the fulfillment of international trade and the ambitious future growth targets before us, Government of India has recently established an exclusive Logistics Department in the Ministry of Commerce & Industry headed by a Special Secretary Logistics for the development and improvements in

14 CargoConnect - acaai 2018

2.7

In the air-transportation sector Air Cargo Logistic Trade and Industry plays a very 3.5 3.2 significant role in the country’s economic 2.9 development as this industry is responsible for the transportation of high value goods worth more than 35 per cent of the 2.4 2.1 1.9 total international trade in terms of valFY 18 FY 19 FY 20 ue. However, in spite of the continuous growth (over 10 per cent year on year) India’s total annual air freight volume (2.98 Million MT) has not reached even closure to any one of the single top three world class airports i.e. Hong Kong 4.3 Million MT, Memphis 3.56 Million MT and Shanghai 3.26 Million MT. Source: AAI, MoCA, KPMG Analysis

mmtpa

Similarly, Ministry of Civil Aviation, Government of India, under its National Civil Aviation Policy 2016 in section 20, has given special thrust on the development of air cargo logistics sector. Accordingly, it has also made big investment plans for the growth and expansion of air freight industry as well as modernisation and the development of metro and non-metro airports with improved Air cargo handled by Indian airports in past and its future forecast regional and remote Tier II, Tier III Forecasted CAGR 10.8% Actual CAGR 10.9% airports connectivity.

To come up to the expectations of the targeted three times growth in the country’s International Trade and Commerce by 2030, a proportionate desired development and improvements should take place simultaneously in the areas of government policies, processes and infrastructure facilities by all the segments of the air cargo industry including the government agencies.

Noticing the points mentioned above, Mamidala highlights developments are underway by the government and says that the authorities are more focused to promote the air cargo sector.

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“It’s time to talk about delivering excellence – how cargo industry is working around. Excellence in delivering has become very crucial – and to be at that level you have to utilise technology, upgrade systems, deliver knowledge, you have to spend in manpower, technical people coming in etc.

“First of all, most of our terminals do not offer

Sunil Arora

Sandeep Chatterjee

Vice President, ACAAI

passenger segment has always got the preference.

The cold chains have addressed this to some extent but a lot needs to be done here.”

Senior Manager, Deloitte

Furthermore, the Ministry of Civil Aviation is strengthening the air cargo infrastructure in the country.

Shah on the other hand feels that air cargo stations away from the airports – possibly cargo stations would handle both air and sea together. “Technological assistance and intervention in every activity and subsidising all hardware including handhelds along with a robust Air Cargo Community System are expectations from Government.

Additional expectations would be working on capacity building and continual education for all stakeholders in the chain. Few more policy interventions from the Government in terms of soft processing with minimal manual intervention are needed. The industry will have to do away with their archaic approach to the movement and processing,” Shah vows.

Air cargo transports over US $6 trillion worth of goods, accounts for approximately 35 per cent of world trade by value and transports commodities that are vital for the growth

He says, “Single window processing introduced by Customs was a great success and it is further being improvised to bring in some more positive change. Officials in Customs and other regulatory departments are being open minded, willing to listen, willing to adopt new ideas and more importantly technology. There will a big positive change in next five years with the Government officials rapidly changing the mindset of ‘control’ to ‘facilitate’. We already see this transformation taking place in the country. One of the good initiatives by the government of India is the formation of Air Cargo Logistics Promotion Board to carry out various development activities in the sector in structured manner such as focusing on more allocation of space for cargo in green field airports, promoting global good practices like Free-Trade Warehousing Zones (FTWZ), Air Freight Stations, Bonded trucking, dedicated cargo airports, simplification of customs procedures etc. The government has also commenced 24x7 Customs operations at several airports.”

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segregated facilities for different types of cargo as

Sandeep Chatterjee, Senior Manager, Deloitte, also shares his take on the kinds of investments or initiatives he thinks are required from the government and air cargo industry to boost the numbers.

“First of all, most of our terminals do not offer segregated facilities for different types of cargo as passenger segment has always got the preference. The cold chains have addressed this to some extent but a lot needs to be done here. Secondly, transhipment opportunities are very less at airport terminals. Thirdly, the agent warehouses are

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India’s expanding middle class.”

“Effects of geo-political factors, especially in the US in trying to bring back the outsourced business inshore is currently bordering on an unpredictably in the supply chain operations. Depending on how the situation progresses, it could have a major impact on traditional flows of cargo.”

Sanjiv Edward

Ram Menen

“The policy makes it easier for the country’s airlines to fly abroad in order to boost air travel and accelerate country’s economic growth viz-aviz to making domestic flying more affordable for

CCO, Delhi International Airport Limited located in the city and not in the airport premises leading to huge issues around coordination,” says Chatterjee.

Chatterjee further stresses on investing in space and facilities so that cargo operations are completely separated from the passenger areas. “Sufficient investment is needed for smooth multi-modal transition in terms of material handling e.g. separate bays for trucks reducing congestion. Allowing private players to operate dedicated planes for cargo is another way out. Although, Government of India has taken initiatives to reinforce country’s aviation sector, including recently introduced New Civil Aviation Policy,” he adds.

Sanjiv Edward, Chief Commercial Officer, Delhi International Airport Ltd, feels that the policy makes it easier for the country’s airlines to fly abroad in order to boost air travel and accelerate country’s economic growth viz-a-viz to making domestic flying more affordable for India’s expanding middle class.

He also notes down some initiatives BELOW that would help the sector: • “Simplification and Standardisation of the Customs as well as security policies and procedures for transhipment as also benchmarking of the same with international best practices.

• Development of air cargo transshipment hubs to cater to growing intercontinental traffic.

• Digitisation of air cargo industry would simplify export/import documentation system.”

IGI Airport has taken numerous initiatives and invested significantly in the past decade to boost the air cargo growth. THESE include: 1. Implementation of 100 per cent e-Carting facilitation services 2. Temperature control facility and airside cool dollies to ensure unbroken cold chain 3. Truck Slot Management systems to improve cargo movement

18 CargoConnect - acaai 2018

Retired Aviation & Air Cargo Executive 4. Mobile Apps for Cargo tracking 5. Development of Common Users Domestic Cargo Terminal for maximum utilisation of space and facilities 6. Development of Airport Cargo Logistics Centre for an easy consolidation and de-consolidation of cargo, etc.

7. Expansion of Domestic Cargo Terminal facility for enhancing efficiency of processes.

8. Technology advancements and automation in cargo handling to improve speed of operations involving eliminations of several manual processes.”

Existing Challenges in Air Cargo There are multiple challenges that exist in the current air cargo logistics industry. The experts have been dealing with the respective authorities and agencies for improvements and at the same time, engage in fresh thinking and out-of-the-box ideas for the growth and development of cargo industry.

Kunwar jots down innovative ideas propagated by the ACFI: There should be standardisation of booking, handling and safe air transportation of domestic cargo at all the airports of the country.

The future of air cargo logistics, which lies in adoption of timely timely innovations and digitisation, will transform the air cargo industry by 2020.

Many leading private companies in the logistics business have already started showing keen interest in using Block Chain technology. Internet of Things (IoT) enabling better customer experience in bringing operational efficiency, offering on demand asset inventory, predictability, fleet management, cold port sensors, driver safety analysis, on demandbreakdown assistance ,etc. IoT is a technology used in the air cargo industry where cargo may speak and communicate itself, 5G phones with a down load capacity of 100GB per second, driverless

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“The present government’s focus has been on new areas like agro-based products, perishables and burgeoning retail exports based on MSME sector. There is huge potential to tap these sectors, provided the required end-to-end logistics infrastructure and a firm policy are in place.”

“The industry forces us to increase efficiency and

Ashish Pednekar

Felix Kreutel

MD, GVP Forwarders Pvt Ltd & Chairman, FFFAI trucks, 3D printing, etc., transforming the future of the industry. Drones are going to make easy and simple taking inventory of a logistics company’s assets in the near future.

Smart warehouses will become a reality very soon as warehouses will become more dynamic, turning to IoT and voiceenabled AI for faster processing of shipments. Innovations, such as smart glasses used to display information triggered by a barcode or QR code on a container, will be taken to a new level by incorporating scanners to automatically capture and input information into the warehouse system.

Kunwar recommends, “I strongly suggest that in order to improve the ease of doing business in the air cargo logistics sector and for it’s development at par with its counterpart Passenger Terminals of International Airports of the country, a new promotional scheme of Rating the Cargo Terminal Service Quality (CTSQ) needs to be initiated at par with ASQ rating of Passenger Terminals initiated by Airport Council International (ACI) in which all the stakeholders in the air cargo logistics trade including, freight forwarders, Customs Broker, Airlines, Cargo Terminal Operator, Airport Operator and all the regulatory government agencies like Customs, Drug Controller, FSSAI, WCCB, etc., will be held accountable for any lapses in their service quality provided in the chain of air cargo logistics activities. The major International Cargo Terminals of the country will undergo this exercise every year by the Logistics Board, a national body, and according to their performance, ratings will be given and awarded suitably.”

20 CargoConnect - acaai 2018

offer data transparency. Digitisation and new technologies will therefore shape the industry in the long run, feels Kreutel.”

Senior VP Cargo, Fraport AG On the other hand, Varghese feels that the process of air cargo varies from country to country and region to region globally.

Hence, he finds it difficult to comment about the streamlining of such processes globally.

“In the Indian context, the main issue of concern to the trade currently pertains to the automated Customs system, ICEGATE. At present, the ICEGATE system is prone to frequent failure and slowdown, thereby delaying the expeditious clearance of import and export shipments. Consequently, the importers and the exporters are unable to meet the deadlines of their clients, thereby, creating a poor image of the EXIM trade of India. Therefore, this system requires urgent, immediate and total overhaul to make it adequately functional to meet the requirements of the trade,” Varghese further informs.

Furthermore, he thinks the Customs regulations pertaining to air cargo need to be reviewed periodically with the objective of simplifying and making them suitable to the requirements of trade and business in the 21st century. In particular, the restriction on transshipment cargo at Indian airports due to the prevailing Customs regulations need to be changed to permit the carriage of transshipment cargo via all international airports in India, believes Varghese. “This will enable our country to become a hub for such cargo similar to other global cargo hubs such as, Dubai, Singapore, Hongkong, etc.,” hopes Varghese.

Considering the same, Ram Menen, Retired Aviation and Air Cargo Executive, feels driven by the changes in evolving tech-

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“Policy initiatives of GoI - Developing cargo hubs, introducing 24/7 customs for the processing and handling of freight, and pushing for paperless transactions, Improving functionality of regulators etc. Effective implementation of these initiatives will surely boost the air cargo sector.”

“This theme could not have come at a better time.

Now that the growth trajectory is set, it is time to improve on the quality of service and pursue excellence.”

Yashpal Sharma

Shaishav R Shah

MD, Skyways Group

nology and consumer behavior, the dynamics of the air cargo business is going to be very different in the future.

He tells, “The effects of geo-political factors of today, especially in the US in trying to bring back the outsourced business inshore is currently influencing the supply chain operations. Depending on how the situation progresses, coupled with any imposition of tariffs, it could have a major impact on traditional flows of cargo. The challenges of fuel prices and capacity are quite normal phenomena and the industry has been dealing with it and will continue to deal with.”

Agreeing to him, Sharma adds, “The government of India has taken various policy initiatives including developing cargo hubs, reducing the dwell time, introducing 24/7 customs for the processing and handling of freight, developing free trade zones, providing space on long-term leases to express cargo freighters and pushing for paperless transactions to boost the air cargo sector, improving functionality of regulators, etc. Effective implementation of these initiatives shall surely facilitate business and in turn boost numbers for air cargo.”

Booming E-Commerce As per the statistics, the traditional air cargo volumes is likely to be low in the single digit while the main growth will come in double digits (likely to be 15-25per cent) in e-commerce/etail space. This will ensure good growth in the overall air cargo industry. Traditional way of doing business will have to change.

The likes of Flexport and Freightos, etc. are already bringing in the changes. All transactions will have to move into electronic

22 CargoConnect - acaai 2018

Whole-time Director, GSEC Ltd platform making all the processes transparent and more cost efficient. Those who control the efficient last mile delivery (LMD) will be the winners of tomorrow. Changing consumer behaviour denotes that the industry has to change to cater to the new environment. Google, Amazon, Alibaba, Uber, etc. are the folks which will force the changes in the air logistics industry.

According to Whitehead, in terms of market potential, the boom in global e-commerce and the maturing of its supply chains provides not only challenges, but opportunities as well.

“More e-tailers and suppliers will enter the market, driving down commodity prices; consumer appetite for greater choice,

According to the data available, more than 80 per cent of the Indian cargo (both exports and imports) are served by the international carriers, such as British Airways, Singapore Airlines, Cathay Pacific, Qatar Airways, etc. and customer service expectations, will grow side by side; reverse logistics will become a greater need ever, and will generate huge traffic flows (although not necessarily for air cargo).

Meanwhile, e-commerce as a whole will continue to look for logistics economies, providing opportunities for the ‘traditional’ air cargo industry to leverage its core ability: to ship costeffectively in larger volumes. But, this opportunity will only be fully exploited if air cargo works harder to integrate itself into the digital information supply chain,” adds Whitehead.

Ashish Pednekar, Managing Director, GVP Forwarders Pvt Ltd and Chairman of FFFAI, shares that apart from traditional products from India, the present government’s focus has been on new areas like agro-based products, perishables and burgeoning

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cover story Air Cargo throughput for all Indian airports

Interna�onal Cargo Traffic (Million Tonnes) 11th Plan Period

10th Plan Period

2.6

“The innovative developments taking place in the ecosystem of air cargo industry has created multiple opportunities for growth. But, at the same time it also has challenges too - in the current competitive global scenario of meeting the speed of delivery with quality and competitive prices.”

FY-02

Where do we head from here?

Ever since 2014, the incumbent Central Government has brought about numerous positive changes in the rules, regulations and procedures in multiple sectors. A large number of outdated regulations have either been abolished or updated to make them contemporary and suitable to the needs of industry, trade and business in the new millennium. This is a trend that should continue in a major way during the next few years to come to revamp the statutes across the board to make India a global hub for not only the airfreight industry, but also for trade and business, notes Varghese.

Throwing some light on the significant trends in the airborne freight and cargo services in the years to come, Felix Kreutel, Senior Vice President Cargo, Fraport AG, says that the industry forces us to increase efficiency and offer data transparency. Digitisation and new technologies will therefore shape the industry in the long run, feels Kreutel. But, also Big Data and especially block chains will definitely have a huge impact by improving security and transparency throughout

24 CargoConnect - acaai 2018

FY-07

FY-11

FY-17 E

Domes�c Cargo Traffic (Million Tonnes) Source: AAI, MoCA, KPMG Analysis

Director General, The Air Cargo Forum India (ACFI)

“This is crucial to offset the sliding trends of traditional export items, viz gems; jewellery, drugs; pharmaceuticals, carpets, Ready-made garments (RMG); textiles, etc. It is pertinent to mention that about half of our argo-products are being spoiled due to lack of a scientific cold chain system. On the other hand, as identified by experts, India is blessed with high quality artisans and women entrepreneurs. The e-commerce market place is ideally suited to them as both genuine buyers and payment is ensured by the market place (e-commerce portals). Unfortunately, the issues in e-commerce retail exports have not been resolved despite recognising e-commerce in the Foreign Trade Policy,” he reveals.

1.5

1.0

0.6

KS Kunwar

retail exports based on MSME sector. Accordingly, there is huge potential to tap those sectors, provided the required end-to-end logistics infrastructure and a firm policy are in place.

12th Plan Period

11th Plan Period

10th Plan Period

12th Plan Period 1.7

0.3 FY-02

0.5 FY-07

0.8

FY-11

FY-17 E

the supply chain. Interfaces have to be aligned and we need to implement data platforms where we integrate the whole supply chain. “Block chains can support the building of logistic data backbones by cloud solutions or other data networks.

We must come to a point where all the community systems at various airports are able to communicate with each other – we need a network of trusted networks,” he says.

The world’s emerging market and regions are also expected to deliver the fastest growth in air cargo volumes over the next five years, led by the Middle East and Africa, observes Edward.

“Strongest forecast growth is foreseen on trade lanes between Asia and the Middle East, and between North and South America due to several initiatives impelled worldwide to provide momentum to the freight and cargo services, especially in the new era of e-commerce and globalised economy,” he adds.

To sum it up Government should invest in creating industrial parks and make land available for building facilitation centres around the airports. They should invest in creating a good road transportation network for efficient distribution of air cargo, reduce bureaucracy and pull down the hurdles created by border control processes. Facilitating trade is required. Today, there is no room for traditional way of doing business, the future will only belong to fully autonomous aircrafts.

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focus

Air Cargo facilitating cold chain Air Cargo plays a pivotal role in the economic development of a country. And airlines have been the driving force for the air freight industry, paving way for possibilities of dynamic changes within.

One of the important verticals of air cargo is cold chain, and it also happens to be one of the most prominent and crucial components in most countries. Upamanyu Borah gives a brief account of the major transformation in the principal cold chain vertical of the air cargo industry.

26 CargoConnect - acaai 2018

focus

A

ir cargo is essential to many facets of modern life. Moving perishable goods from one part of the world to the other would not be possible without air transport. The pharmaceutical industry too relies on air transport for its speed and efficiency in transporting high-value, time and temperature sensitive cargo; particularly vaccines. USD 12 billion is spent worldwide on cold chain biopharma logistics. By 2020, it is estimated that this will rise to USD 16.7 billion.

The cold chain involves transportation of temperature sensitive products along a supply chain through thermal and refrigerated packaging methods and the logistical

planning to protect the integrity of these shipments.

There are several means in which cold chain products can be transported. This includes refrigerated trucks, railcars, refrigerated cargo ships as well as by air cargo.

Among all these modes, air cargo is considered to be the most fast and growing mode to transship the perishable products.

In developing markets, cold chains provide opportunities for small and medium-sized farmers and businesses to enter the supply chains of international markets, exporting their temperature-sensitive products to retailers around the world. In consumer markets, cold chains provide access to products previously unavailable

acaai 2018 - CargoConnect

27

focus Our dedicated climate control hub operations team proactively monitors every QR Pharma shipment from origin to destination, ensuring a seamless product delivery. QR Pharma offers tail-to-tail Quick Ramp Transfer (QRT) at the hub, with temperature-controlled vehicles to provide protection from ambient conditions during ramp transportation. To enhance our QR Pharma product offering, we have a dedicated CAPA team (Corrective and Preventive Action) team who manage all deviation investigations centrally.”

Ulrich Ogiermann, Former Chief Officer Cargo, Qatar Airways Cargo

locally, raising the quality of life through fresher, safer food, pharmaceuticals and biologics while increasing opportunities for retail and franchise sales growth. The biggest barriers to cold chain growth in current times remain government protectionist measures and non-tariff barriers, often in related distribution services industries. The difficulties and delays of clearing customs or transporting products across borders is also a major impediment for services.

Cold chain logistics form the foundation to supply perishable products—fresh fruits and vegetables, meat, dairy, aquaculture products, fresh flowers— and medical products—drugs, reagents, vaccines, biological products—that have strict temperature, humidity, and other environmental requirements.

Air Cargo aiding Cold Chain operations Moving a shipment across the supply chain without suffering any setbacks or temperature anomalies requires the establishment of a comprehensive logistical process to maintain the sh ipment integr ity. Th is process concerns several phases ranging from the preparation of the shipments to final verification of the integrity of the shipment at the delivery point:

• Shipment preparation: When a temperature sensitive product is being moved, it is vital to first assess its characteristics. The key issue concerns the temperature conditioning of the shipment, which should already be at the desired temperature. Cold chain devices are commonly designed to keep a temperature constant, but not to

28 CargoConnect - acaai 2018

bring a shipment to this temperature, so they would be unable to perform adequately if a shipment is not prepared and conditioned. Other concerns include the destination of the shipment and the weather conditions for those regions, such as if the shipment will be exposed to extreme cold or heat along the transport route. Using a reefer with its own power unit usually mitigates such concerns.

• Modal choice: Several key factors play into how the shipment will be moved.

Distance between the origin and the final destination (which often includes a set of intermediary locations), the size and weight of the shipment, the required exterior temperature environment and any time restrictions (perishability) of the product, all effect the available

transportation options. Short distances can be handled with a van or a truck, while a longer trip may require an airplane or a container ship. In this case, the ‘cost to perishability’ ratio becomes a factor in modal choice.

• Custom procedures: If the freight crosses boundaries, custom procedures can become very important, since cold chain products tend to be time sensitive and more subject to inspection than regular freight (e.g. produce, pharmaceuticals and biological samples). The difficulty of this task differs depending on the nation (or economic bloc) and the gateways since there are variations in procedures and delays.

Customs issues are commonly identified as the most crucial in establishing reliable international cold chains.

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focus Through the various connections offered by our cargo operators, there is seafood export from our region to India as well. Qatar Airways Cargo for example connects India very well, once the Halifax B777 freighter arrives in Doha. So does Korean Air Cargo via Incheon. CargoJet offers connections through its partners and Air Canada recently started a major expansion into India and usually has room in the belly of the passenger aircraft for high-yield time-sensitive live lobster, which is a high priority cargo load.”

Joyce F Carter, President and CEO, Halifax Stanfield International Airport Authority, Canada

Integrity and quality assurance: After the shipment has been delivered, any temperature recording devices or known temperature anomalies must be recorded and made known. This is the step of the logistical process that creates trust and accountability, particularly if liability for a damaged shipment is incurred. If problems or anomalies that compromise a shipment do occur, an effort must be made to identify the source and find corrective actions. This is particularly relevant to the high value of cold chain goods. While a standard container load can have a value between $50,000 and $100,000, a reefer load can reach $1 million. For the case of pharmaceuticals, the value of the cargo can reach $50 million.

Various airlines’ cargo vertical carry loads of cargo from one country to another. One of the pioneers is Qatar Airways Cargo. Ulrich Ogiermann, Former Chief Officer Cargo, Qatar

30 CargoConnect - acaai 2018

Airways Cargo informs, “Our specialist QR Pharma product offers active and passive transportation for our discerning customers. Both solutions have a high loading and handling priority, including

Centre within our cargo complex in Doha.”

Halifax Stanfield International Airport in Canada too offers attractive landing

Air Trade Facilitation Index scores by World Bank income group.

100% 90% 80% 70%

Percent

• The “Last Mile”: The last stage is the actual delivery of the shipment to its destination, which in logistics is often known as the “last mile”. Key considerations when arranging a final delivery concern not only the destination, but the timing of the delivery as well.

Trucks and vans, the primary modes of transportation for this stage, must meet the specifications necessary to transfer the cold chain shipment. Since many deliveries of cold chain products, particularly groceries, are taking place in an urban setting, congestion and parking difficulties are also to be kept in mind. Also, the final transfer of the shipment into the cold storage facilities is also important as there is potential for breach of integrity.

60% 50% 40% 30% 20% 10% 0%

Low income

Lower middle income

Source: Authors’ calculations.

late cut off times and prioritised destination delivery for QR Pharma shipments. Our dedicated climate control hub operations team proactively monitors every QR Pharma shipment from origin to destination, ensuring a seamless product delivery. QR Pharma offers tail-to-tail Quick Ramp Transfer (QRT) at the hub, with temperaturecontrolled vehicles to provide protection from ambient conditions during ramp transportation. To enhance our QR Pharma product offering, we have a dedicated CAPA team (Corrective and Preventive Action) team who manage all deviation investigations centrally. At the moment, we are nearing the completion of our state-of-the-art Climate Control

Upper middle income

High income

Income Group fees and competitive handling costs. It also has the largest cold storage facility in the Americas north of Miami with no noise restrictions. Joyce F Carter, President and CEO, Halifax Stanfield International Airport, Canada, said, “In Asia, our primary markets are China and South Korea. However, through the various connections offered by our cargo operators, there is seafood export from our region to India as well. Qatar Airways Cargo, for example, connects India very well, once the Halifax B777 freighter arrives in Doha. So does Korean Air Cargo via Incheon. CargoJet offers connections through its partners and Air Canada recently started a major expansion into India and usually has

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focus The modernisation of Lufthansa Cargo’s fleet continues with ecological efficiency, state-of-the-art technology with low noise and fuel emissions.

We are also implementing our strategic “eCargo” project in India, which contributes to higher efficiency in our business and pushes modernisation.”

Ivo Seehann, Director Cargo Sales & Handling, North & East India, Lufthansa Cargo AG

room in the belly of the passenger aircraft for high-yield time-sensitive live lobster, which is a high priority cargo load.”

The need for better Infrastructure Today, competition exists in every industry, including cold chain as well.

The only way to successfully steer the business is to cater to valuable customers’ demands and react flexibly towards their expectations, keeping the security,

quality and easy accessibility of the services at the top.

Various cargo specialised airlines have worldwide network and the longstanding expertise in airfreight special products is their main strength and they keep on looking for new innovation to meet with the market demand.

Carter from Halifax commented, “The

GDP compliant 2,471 sqm facility will enhance our ability to process more volumes quickly within a climatecontrolled environment. The Climate Control Centre has two zones operating for 2-8°C or 15-25°C with capacity to hold a total of 156 ULDs at a time. Segregated sections will hold pharmaceutical products in compliance with GDP regulations. Six truck docks with inflated curtains will be installed to

Hypothetical air cargo cool chain. Adapted from Baxter (2011), Harrison (2011).

Pre-shipment stage

Shipment (s) Stage

Post-shipment (s) Stage Freight Forwarders

Envirotainer

Shippers/ Producers

Trucking Firms

Freight Forwarders – Environtainer

Cargo Terminal Operator

Ramp Handling Agent

Airlines

Cargo Terminal Operator

Trucking Firms

Reciever

Envirotainer

Role of Envirotainer in a typical air cargo cool chain. Adapted from Baxter (2011), Harrison (2011).

Shipment (s) Stage Post-Shipment Freight Forwarders

Shippers/ Producers

Trucking Firms

Source: www.jotmi.org

32 CargoConnect - acaai 2018

Freight Forwarders – Environtainer

Cargo Terminal Operator

Ramp Handling Agent

Airlines

Cargo Terminal Operator

Trucking Firms

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focus Large volumes of pharma products are handled by Air Canada Cargo every year. We are known for following the best practice in the industry, it is a part of our DNA and it makes us effective in the handling of cold chain commodities. Through our AC Absolute and AC Pharmacair solutions, we handle a vast range of temperature-sensitive commodities, from those requiring precise temperature controls to commodities shipped in passive packaging.”

Ameet Sareen, GM Global Cargo Products and BD, Air Canada Cargo

seal around the truck when docked, to ensure complete temperature integrity.

The facility will enable us to handle an additional two million tonnes throughout per annum.”

Ivo Seehann, Director Cargo Sales & Handling, North & East India, Lufthansa Cargo AG, commenting ab out i n f ra st r uct u re sa id , “The modernisation of Lufthansa Cargo’s fleet continues with ecological efficiency, state-of- the-art technology with low noise and fuel emissions. We are also implementing our strategic “eCargo” project in India, which contributes to higher efficiency in our business and pushes modernisation.”

The right blend of Technology As air cargo assumingly work on timesensitive products, the Doha-AucklandDoha daily services offer 116 tonnes of belly-hold capacity every week to support the growing imports of raw, industrial and consumer materials into New Zealand. Ogiermann informed, “At the Doha hub, we offer QR Fresh, a seamless temperature-controlled handling and storage solution, to deliver perishable products such as dairy produce, meat

and fruits from Auckland into the Middle East and some major European cities.”

Halifax’s primary export is live lobster and other seafood products. The year 2016 was a record year for cargo handled at Halifax Stanfield with 33,330 metric tonnes of cargo processed, up 4.1 per cent over 2015. This year, the airport is aspiring for an impressive number. The recent Quarter showed an improvement

The only way to successfully steer the business is to cater to valuable customers’ demands and react flexible towards their expectations, keeping the security, quality and easy accessibility at the top of the criteria of the service. over the previous year with a 21.4 per cent growth, bolstered by new direct flights to China. Demand for live lobster and seafood continues to grow and Halifax Stanfield is poised for continued profitable growth in seafood exports for all industry stakeholders.

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Ameet Sareen, GM Global Cargo Products and BD, Air Canada Cargo, informed, “The handling of AC Secure shipments is limited to cargo stations that meet the requirements to handle such shipments. Large volumes of pharma products are handled by Air Canada Cargo every year. We are known for following the best practice in the industry, it is a part of our DNA and it makes us effective in the handling of cold chain commodities. Through our AC Absolute and AC Pharmacair solutions, we handle a vast range of temperaturesensitive commodities, from those requiring precise temperature controls to commodities shipped in passive packaging. For commodities which require precise temperature control, our AC Absolute solution offers a variety of containers with dry ice and electricalbased temperature control technologies – this is ideal for high- value healthcare products that are extremely sensitive to time and temperature. While on the other hand, our AC Pharmacair solution suits temperature-sensitive healthcare commodities that are prepackaged to maintain the desired product temperatures and therefore do not require an active temperature

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focus Still operating as an independent concern since Lufthansa Cargo took complete ownership of the company, the expert for Special Speed Logistics offers each of its clients customized logistics solutions for particularly urgent or complex special logistics assignments, enabling worldwide delivery within just a few hours.”

Franz-Joseph (FJ) Miller, Founder and CEO, time:matters

-40

-20

0

20

40

60

cont rol led un it. There a re some common handling attributes for all pharma products, including expedited ramp handling, limited exposure to extreme temperatures and a high level of boarding priority.”

containers. This ancillary service wraps cold-chain packages in thermal blankets and transports them to and from temperature-controlled aircraft in refrigerated trucks. This service originated in FedEx facilities in India.

time: matters, expert in worldwide special speed logistics and time- critical spare parts logistics, is automating the tracking process for its shipments. FranzJoseph (FJ) Miller, Founder and CEO, time: matters opines, “Information on the status of the shipment, which until now had to be compiled manually, will soon be automatically generated. Still operating as an independent concern since Lufthansa Cargo took complete ownership of the company, the expert for Special Speed Logistics offers each of its clients customised logistics solutions for particularly urgent or complex special logistics assignments, enabling worldwide delivery within just a few hours.”

Mo v ing a ship men t a cros s t he s up p ly c h a in w i t h o u t suffering any setbacks or t emper at ure a nom a l ies requires the establishment of a comprehensive logistical p r o c e s s t o m a i n ta i n t h e shipment integrity

Further, FedEx’s temperature-controlled charters are being augmented with an option that eliminates the need for sh ippers to purchase or rent expensive temperature-controlled

36 CargoConnect - acaai 2018

These instances prove that technology is beyond doubt a differentiator in the efficiency of a cold chain when it comes to transporting a shipment through air cargo.

Conclusion The pharmaceutical industry relies on air transport for its speed and efficiency in transporting high-value, time and temperature sensitive cargo, particularly vaccines. USD 12 billion is spent worldwide on cold chain biopharma logistics. By 2020, it is estimated that

80

100

120

to rise to USD 16.7 billion. Cold chain logistics form the foundation to supply perishable products—fresh fruits and vegetables, meat, dairy, aquaculture products, fresh flowers, medical products like drugs, reagents, vaccines, biological products—that have strict temperature, humidity, and other environmental requirements.

Although the market is rapidly growing, the unreliability and “breakage” of the cold chain remains a serious problem.

As ownership of each stage of the cold chain—warehousing, ground transportation, airfreight, airports, distribution and other services— is fragmented, the lack of an endto-end process control results in widespread mismanagement of logistics.

Additionally, the use of temperature monitoring technology, information systems, and other forms of technical assistance are still immature. As a result, the rate of cargo damage to fresh product within the cold chain is as much as 20-30 percent—much higher than the average 5-10 percent in developed countries. Hence, safety remains the first priority!

special feature

Ground Handling-Still a long way to go Last year, Visiongain, a London based research firm valued the airport ground handling services market at $54 million (USD) with growth rates projected to be strong over the next decade and this segment is showing signs of positive growth in India. However, the segment has its own issues which needs to be dissolved immediately.

Deepashree Banerjee analyses facts and figures after speaking to industry experts in order to understand and evaluate the real status of the global handling services all over the world.

38 CargoConnect - acaai 2018

special feature

T

he main focus in ground handling which paves the way for quality and consistency are compliance to safety standards, professionalism and operational excellence. Across the globe, airlines are under constant pressure to achieve on-time performance, while cutting down on operational costs as much as possible.

As per estimate, for a large airline, adding extra five minutes to aircraft ground time can cost the airline up to $35 million (USD) annually.

Contemporary strategies and solutions to battle ground handling challenges A deciding factor in meeting on-time performance goals is the

efficiency of the airline’s ground handling operations. Today, airlines and ground handlers face major challenges relating to ground handling. Right from the inefficiencies associated with multiple ground handlers, suboptimal airport designs and lack of standardised procedures to unexpected, expensive aircraft ground damage and ineffective resource management.

This makes it evident that upgraded solutions is the need of the hour as far as ground handling is concerned.

Many airlines are attempting to address these challenges by outsourcing their ground handling to third parties. As per International Air Transport Association’s (IATA) data, more than 50 per cent of all ground handling operations worldwide

acaai 2018 - CargoConnect

39

special feature We, as a terminal operator have ensured that each of these contributory factors are in place and utilised efficiently. We have invested close to 100 million USD in developing the infrastructure of the terminal, bringing in advanced equipments, automating the processes and strengthening the IT framework of the organisation.�

Ramesh Mamidala CEO, Celebi Delhi Cargo Terminal Management India Pvt Ltd

are managed by more than 1,000 ground handlers.

Ground Handling Industry Growth

Other areas on which airlines are currently focusing on include investing in advanced technologies, and embarking on robust employee training programmes. There is also a heightened awareness that ground handling services cannot be viewed as commodities, but rather essential core services for which value and not just price must be emphasised.

Despite the above mentioned challenges, there has been no shortage of growth for the ground handling industry. Market research conducted by the analysts at Technavio predicts a compound annual growth rate of approximately six per cent by 2020 for the global aircraft ground handling system market. To further elaborate the magnitude of the ground handling market and its growth trajectory, Global Market Insights projected the

aircraft ground handling system market size to exceed $160 million (USD) by the year 2022.

This covers areas such as aircraft, cargo and passenger handling applications. Suffice it to say, that it is a booming industry despite facing many challenges.

Ramesh Mamidala, CEO, Celebi Delhi Cargo Terminal Management India Pvt Ltd, believes that few of the factors that lead to successful air cargo operations

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special feature In case we calculate the time from shipment entering for export at truck dock to delivery to consignee on import side, the highest time is taken on ground.”

Vipan Jain Chief Operating Officer, Delhi Cargo Service Centre

are state-of-the art infrastructure, streamlined processes, automation and skilled workforce.

“We as a terminal operator have ensured that each of these contributory factors are in place and utilised efficiently.

Ground Handling Processes

approach which is being inculcated amongst each of the staffs. All of the above efforts have ensured that we have fairly stable, matured and successful air cargo operations,” he adds.

According to Vipan Jain, Chief Ground Handling Processes

100%

Management Commitment

90%

Handling Equipment

80% 70% 60% 50% 40% 30% 20%

Top 5 Industry sector Ground Handler X Average Industry Sector

10% 0%

Organizational Culture

Performance Alignment

Quality Assurance

Process Improvement

Results

Performance Process

Benchmarking

We have invested close to 100 million USD in developing the infrastructure of the terminal, bringing in advanced equipments, automating the processes and strengthening the IT framework of the organisation. Further, we have a huge workforce which is trained as per customised and process specific requirements wherein each employee of the organisation has to go through mandatory number of mandays of training and development,“ he says.

“We have streamlined our processes to match global standards and we ensure best practices are adhered to at each level of operations. The operational excellency is supported by a customer centric

42 CargoConnect - acaai 2018

Continuous Improvement Processes Operating Officer, Delhi Cargo Service Centre, “Ground Handling consists of two main parts,-warehouse and ramp handling. In case we calculate the time from shipment entering for export at truck dock to delivery to consignee on import side, the highest time is taken on ground.”

Keki Patel, Cargo Manager, India & Nepal, Emirates SkyCargo, feels that for air cargo operations to be successful, the players essentially must have a good frequency of flights, a good mix of products, the right type of aircrafts like wide-bodied aircrafts is vital for good quantum of cargo, and expansive

network capabilities. Apart from this, it is vital to have a trained staff to ensure ground-handling operations are conducted smoothly. Also, in case of unfortunate situations like delays or damage, it is necessary to prealert the customers and settle claims/ compensations promptly. The teams and staff working in cargo operations are required to have a professional attitude along with being proactive to ensure service delivery as promised.

How turnaround time plays an important part in ensuring on-time Performance?

Jain explains that turnaround time is crucial when we do any transaction beside the airport to the airport. “Any third location means efficiency during transit beat passenger or cargo. In the world, majority of the movement is happening in more than two airports on international sector and there the hub plays an important role, ” he informs.

Similarly, Patel says, “To ensure optimal turnaround, it is essential to have planned cargo operations. Planning cargo operations means that before the flight takes off, the type of products and the necessary requirement for the same needs to be ensured. Special goods require special services like storages, correct labelling, security escorts, et al. Also, ground handlers are required to be aware of detailed information regarding the goods on flight before take-off, during the flight and after landing, so that they are prepared well in advance. When all these factors are timed properly along with competent ground operations, one can ensure efficient, on-time performance.”

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special feature For air cargo operations to be successful, the players essentially must have a good frequency of flights, a good mix of products, the right type of aircrafts like wide-bodied aircrafts is vital for good quantum of cargo, and expansive network capabilities.”

Keki Patel Cargo Manager, India & Nepal, Emirates SkyCargo

Ground handlers as a vital part in achieving turnaround efficiency

exceeding our service standards which has helped our customers in achieving their turnaround efficiency.”

Ground Handling is one of the most vital link in the whole air cargo supply chain process, feels Mamidala. “It is the interface between the city side and airside and is often considered as the the part wherein the most complicated processes are being performed. Efficient ground handling processes ensure faster throughput within the defined timelines

Here, Jain cites an example too. “In case of even domestic or International, starting from 1st pick up point to loading in the airport means average 24 hours and similarly on import side. If we look back on dwell time in the past, which used to be 21 days still distance and flight time were same as of today however, there

the flight reaches the destination, it is the responsibility of the ground handlers to ensure safe and secure offloading of goods along with timely delivery,” he elaborates.

Currently, in India, cargo is moved by single mode, for instance, food grains go by road, coal by rail because not enough analysis has been done on the mixed mode model. In an optimal scenario, the same commodity will

Efficient ground handling processes ensure faster throughput within the defined timelines which is the most important factor to achieve turnaround efficiency

which is the most important factor to achieve turnaround efficiency. We as a cargo terminal operator have very stringent service standards which we adhere to during each step of day-to-day operations. We, as a terminal have a huge responsibility as we are liable to provide highest standards of service to all our stakeholders and our performances are audited by multiple stakeholders. We have been successfully and consistently

44 CargoConnect - acaai 2018

is drastic reduction in overall dwell time due to efficiencies on ground and capacity off course,” he says.

Patel perceives ground handlers as a vital part in achieving turnaround efficiency. “Once the flight is being readied for takeoff, the ground handlers are required to be prompt and proactive while transferring the goods from the warehouses to the flight. Similarly, when

travel by road, rail and air depending on optimised performance. In this case the changeover from one mode to another will be very critical and here the role of the ground handlers will be of immense importance. Secondly, ground handlers are a key stakeholder when deciding upon the cargo-mix.

So the more efficient the process, the more the company is going to benefit in terms of cost savings.

special feature Growing importance of technology in ground handling.

Successful ground handling operations is highly dependent on technological advancement which is one of the most effective tools to automate the processes, says Mamidala.

“We as a terminal have gone a long way in this domain and have introduced technology at various steps of operations long back. We have

Jain further illustrates that technology on ground has reached to the level on apps on phone and sitting anywhere in the world, and track the shipment and this we have reached from letter writing to make a phone call. “Carrier use to inform shipper and consignees by written letter or arrival notices but now with change in technology, customers knows in advance the status even before arrival,” he shares.

According to Patel, in present times, air freight customers expect transparency

device talks to another device seamlessly will be a game changer, he anticipates.

The Challenges Let’s begin with the spiraling downward profit margins for ground handlers.

Increasing competition in the sector has been forcing prices down and further commoditising vital ground handling services. Currently, leading ground handlers all over the world are working with an estimated 5 per cent return on their sales.

As per reports, ground operations damage costs the industry billions of dollars every year. Aiming to combat this, the following initiatives have been developed as an integrated solution for ground operations tailored to risk management within the aviation industry: • Airport Handling Manual (AHM) • Identification of, and updates to, industry recommended

achieved the status of being 100 per cent E-freight compliant way back in 2013. Currently, we are working on a very robust system based environment wherein we are compliant with all forms of IATA standard C2K messaging. Going forward, we are migrating to a much advanced cargo management software which has advanced functionalities such as proactive shift planning, live operational performance (SLA) monitoring, and advanced integration with airline and stakeholder systems.

There are other important initiatives such as introduction of truck slot management system in our terminal long back for staggered and synchronised acceptance of cargo, implementation of a HHT driven barcode based environment for better traceability of shipments. As a company, we have even digitised our cross functional processes through SAP which has also impacted the processes in a positive manner,” he adds.

in the supply chain. They want to be aware of the passage of their goods from the source to the destination and this is where technology plays a significant role.

“In case of ground-handling, the manpower working for it are the ones aware of the status of the goods, thus, having a technological support enables them to act promptly on sharing the statuses and update the supply chain at real-time,” he mentioned.

There are systems and technologically enabled platforms which ensure realtime data entry and transition of the data to the end customer through the whole supply chain. Patel hints that it is vital to keep up with the times and ensure that every aspect of the cargo operations is electronically-enabled, guaranteeing a smooth and transparent process, Patel briefs.

The Internet of Things (IoT) where one

practices • IATA Ground Operations Manual (IGOM) • Development and implementation of the standard procedures • IATA Safety Audit for Ground Operations (ISAGO) • On-site verification of implementation of ground handling procedures • Ground Damage Database (GDDB) • Hazard identification, including data analysis and feedback

According to experts, the best outsourcing models rely on a “partnership” approach where there is a shared and vested interest to deliver the highest benefit/cost ratio. acaai 2018 - CargoConnect

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feature

High

‘Visibility’

for better strategic decision making Supply Chain complexities are continuously increasing due to growing competition in the businesses. In such a scenario, end-toend visibility has become a need of the hour for creating an effective and responsive supply chain. In order to gain visibility, companies shouldn’t rely on traditional track and trace functionality but also focus on integration of all processes that create the seamless flow of end-to-end transactions.

- Gaurav Dubey

46 CargoConnect - acaai 2018

feature

P

resently, supply chain visibility is a buzz word in the supply chain and logistics industry. Endto-end supply chain visibility helps logistics professionals in taking intelligent and strategic supply chain decisions.

It not only helps in strategic decision making but also improves internal efficiency of operations and customer value. Visibility in supply chain could be achieved by organisational reforms and incorporating latest IT technologies in the operations. It has tactical and strategic elements impacting the transactions throughout the supply chain and the structure of the resource network.

Supply cha i n v isibi l it y hold s a g reat dea l of importance when it comes to pharma supply chain.

The pharmaceutical industry is in the throes of major change. The many asset swaps and deals making today’s headlines are merely the latest manifestation of a longer trend that reveals deeper forces at work.

Pharma supply chains have not yet attained their full potential. A survey conducted by AT Kearney, an American global management consulting firm, found out that complexity reduction, end-to-end inventory management, supply chain segmentation, and greater agility will be required to create an efficient pharma supply chain.

acaai 2018 - CargoConnect

47

feature We allow the use of ‘Active Tracking Devices’ (ATDs), based on a need for regular information exchanges and data sharing between us and our customers.

With these devices, we are able to offer our customers a 24/7 overview of our shipments and providing the insights and the required information.”

Shankar Iyer Director Cargo India, Middle East & Africa, Swiss WorldCargo

Significance of end-toend visibility in pharma supply chain End-to-end visibility is an important goal throughout the pharma supply chain, as it offers a complete overview of the entire supply chain, as well as provides insight into the operations of different respective stakeholders.

Sh a n k a r Iye r, D i r e ctor C a r go India, Middle East & Africa, Swiss WorldCargo says, “We understand the importance of supply chain visibility and continuously investing in products with a focus on our transparency and visibility. We allow the use of ‘Active Tracking Devices’ (ATDs), based on a need for regular information exchanges and data sharing between us and our customers. With these devices, we are able to offer our customers a 24/7 overview of our shipments and providing them the insights and required information.

Additionally, we are able to offer a 24/7 dedicated intervention team, in case of any deviations or issues.

“With our Track ‘n’ Trace feature on our website - swissworldcargo.com, we are also able to give our customers an overview of our shipments at any given time – as well as can explain any unforeseen circumstances that may affect delivery. As a result, we can offer direct visibility of the shipments movements within our part of the supply chain.”

On the question of end-to-end visibility in pharma supply chain, Christian Fleischhauer, Senior Products Manager, Industry Development and Project Management, Lufthansa Cargo AG, said,“We understand the significance of

48 CargoConnect - acaai 2018

timely arrival of effective medicines. So, it’s essential for us that these medicines reach in perfect condition at the point of delivery.

“Our product Cool/td utilises method of active and passive cooling which allows to maintain specific temperature of temperature range. For e.g. we offer uninterrupted recording of temperature data for our active cool containers and the documentation of the transport chain along with special proactive communication for Cool/td-Active. Our customers can get the current status of their shipments round the clock by online eServices with eTracking, or by Electronic Data Interchange (EDI)/Traxon.”

management and so on. Pharma has two more specific reasons, which makes it even more critical. First, due to temperature control for a large number of products, and second, the threat of counterfeit medicines.”

Ways of optimising to eliminate bottlenecks from pharma supply chain Swiss WorldCargo uses uniform process in its offices across world to optimise and achieve smooth supply chain. Iyer confidently said, “We are continuously taking steps to eliminate bottlenecks in order to ensure a smooth pharma supply chain. Firstly, we have defined

Visibility not only helps in strategic decision making but also improves internal efficiency of operations and customer value

Surendra Deodhar, Vice-President, Head-Materials Management, Reliance Life Sciences, kept shippers part and pointed out two specific reasons and said, “End to end visibility is a critical aspect for every supply chain to provide s w i f t re sp on s e to custome rs a nd retrieve information related to inventory

clear processes for our people, as well as our partners and handling agents around the world. This help us in mitigating unexpected circumstances or disruptions.Therefore, these clearly defined plans help us to ensure the safest and fastest delivery of goods throughout the world.

feature Our customers can get the current status of their shipments round the clock by online eServices with eTracking, or by Electronic Data Interchange (EDI)/Traxon.”

Christian Fleischhauer

Senior Products Manager, Industry Development and Project Management, Lufthansa Cargo AG

“Secondly, we are constantly investing in our “Quality corridors” – the network of certified trade lanes that covers global pharma routes and ensures the safe delivery and product integrity in global cold chain handling. This includes ensuring that quality which extends throughout our network and through our ground handling partner, Cargologic, which is both CEIV certified and GDP compliant. Likewise, our Qualified Envirotainer Program (QEP) ensures that our ground staff is fully trained and prepared to handle Envirotainers throughout the world.

“Finally, our range of products and storage facilities is designed to meet the needs of customers operating in a temperaturesensitive supply chain. This helps us to ensure efficiency, safe delivery, and to reduce bottlenecks that could otherwise come up based on the demands of our customers.”

Commenting on the same, Fleischhauer

ad d e d , “ To s e cu re a h ig h-qua l it y transportation from origin to destination, Lufthansa Cargo is striving for the minimal tarmac exposure times and storage in protected and temperaturecontrolled surroundings.”

Measures to be taken to create an efficient pharma supply chain - complexity reduction in supply chain, end-to-end inventory management, supply chain segmentation, and greater agility “ It me a n s t h at s h ipme n t s t r ave l i n t e m p e r a t u r e- c o n t r ol le d c a r go c ompa r t me nt s whe r eve r p o s s ible and in special containers with active temperature control (Cool/td-Active), protection during apron transportation by a reflective foil, partly cool dollies and close monitoring and steering of our customers shipments.We understand

that the requirements of the pharma supply chain are increasing, hence we are constantly developing our services.

Certification of our stations according to IATA CEIV was a one such example of our constant endeavour of developing our services.”

Deodhar outlines the way through which Reliance Life Sciences make their supply chain fast and efficient. He said, “A combination of technology, process and people are used to eliminate bottlenecks.

Mix of these elements depend on scale of operations and the stage of evolution of an organisation. At Reliance Life Sciences, visibility and integration of supply chain is achieved through use of home grown mobile based technology platform; planning and intensive review process; and a number of initiatives to social and creativity platforms for people integration.”

Ways of improving last mile delivery of pharma shipments One of the most important aspects of the pharma supply chain is the seamless collaboration and coordination among all parties involved. As frequently various stakeholders work together, smooth coordination among them become really important so that they can regularly exchange information and work together to ensure the best deliveries.

Iyer highlights the growing role of technology in supply chain functions, “The development of new technologies will surely continue to strengthen this information exchange and communication, and thus improve the hurdles that may be experienced within last mile distribution.

50 CargoConnect - acaai 2018

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feature Pharma supply chain has two specific reasons for the end to end visibility, First – due to temperature control for a large number of products, and Second the threat of counterfeit medicines.”

Surendra Deodhar

Vice President, Head - Materials Management, Reliance Life Sciences

At Swiss WorldCargo, we continue to look for ways to improve our quality and implement best practices within our involvement in the supply chain, as well as our collaboration with our partners globally, to ensure reliable delivery for our customers everywhere.”

Lufthansa Cargo ensures unbroken first and last mile delivery with the help of skilled workforce and products like vaQ-tainer, Fleischhauer said, “We offer a variety of active cool containers and advanced passive packaging e.g. va-Qtainer to bridge the gap between first and the last mile for our customers. Timely delivery and pick up at the airports in combination with temperature-controlled ramps and trucks help to keep the temperature-controlled chain unbroken.”

Sharing h is thoughts on the same, Deodhar said, “Many measures could be taken to improve last mile delivery of pharma shipments. I believe, linearisation of sales and use of third party shared networks will have a significant impact on the improvement of last mile delivery.”

Creating an efficient pharma supply chain isn’t an easy task Creating a truly integrated, global pharma supply chain operation is not an easy task.

There are many critical steps necessary to ensure an agi le, responsive and streamlined supply chain. It is important to establish an agreed-upon strategy. This involves demonstrating an understanding of a company’s position in the market, where it wants to go, how to operate within local/regional regulations and how this is likely to affect the operational efficiency of the company’s infrastructure.

52 CargoConnect - acaai 2018

Key Supply Chain Trends to Look for over the next few years -

31.4%

32.9%

Added visibility from Unlocking emerging serialization and track markets via and trace programmes innovative strategies

5.7%

Performance-based fnancing

There needs to be a strong coalescence around this strategy, which starts from the top and funnels down throughout t he or ga n i s at ion . The c ompa ny ’s leadership must support the strategy laid out in the previous step, ensure that

In order to gain visibility, a company must not simply rely on basic track and trace functionality but must integrate all processes that create the seamless flow of end-to-end transactions regardless of global complexity any regional teams are set up in a way that aligns within that strategy and facilitate providing individuals with the training and tools needed to execute.

If any individual office or location is permitted to establish its own process, global integration will fail. A completely i nteg rated g loba l supply ch a i n is dependent upon establishing and using

12.9% 14.3% 2.9%

Driving toward greener solutions

Cutting costs

Other

common IT systems and technologies.

From warehouse management systems to enterprise resource planning (ERP) platforms, and from product and location labeling to quarantine procedures, there must be standardised processes used both internally and externally by partners and vendors.

So, here is the crux ‘Final ly, in the wake of constantly changing market dynamics, industry evolution is unavoidable. When this happens, it is important to not only look at the change happening to the industry but focus on how one can improve operations to adjust to these oncoming changes. Each enhancement should provide additional avenues for building flexibility into one’s processes, as well as seek out ways to leverage the latest technology tools and services available. Once enabled, these agile and flexible processes permit life sciences companies to operate with more visibility, innovatively and, most importantly, deliver more value to the customers they serve - traits paramount for future success.

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feature

Time to Upscale Airport

Infrastructure Presently, Indian airports are witnessing capacity crunch due to continuous growth in the country’s air cargo sector. As per studies, Indian airports are estimated to handle 100 million passengers and a cargo capacity in the range of 3.4 million ton per annum by the year 2020. The demand of providing additional slots by airlines has been increasing day by day and all the major airports are working at faster pace to enhance their infrastructure facilities to cope up with this intense demand of slot.

Gaurav Dubey, after interaction with industry officials, presents a short report on the country’s airport infrastructure.

54 CargoConnect - acaai 2018

feature

I

ndian logistics industry is witnessing an exponential growth rate with the introduction of GST, grant of infrastructure status, e-way bill and other government policies which are favouring the industry. In such a scenario, India’s airport infrastructure needs significant investment to support growing need of the industry. Union government has been working on Public-Private Partnerships (PPPs) model and privatising airports but its pace needs to be accelerated.

Given the expected growth in air cargo volumes in the country and the cargo handling capacity at airports would need to be upgraded by around two million tonnes over the next five years. As per Credit Rating Agency, ICRA, the air cargo infrastructure in India is increasingly getting constrained by the strong growth in traffic since last few years. Cargo traffic in India crossed 2.98 million tonnes in financial year 2017, registering 10 per cent year-on-year increase and reached 2.5 million tonnes in the present financial year. Indian airports are estimated to have a combined capacity to handle 4.63 million tonnes of cargo per annum as of now – translating into utilisation of around 75 per cent.

Growing demand

The movement in cargo traffic is largely linked with the level of economic activity in the country. With the expected growth in GDP, along with other growth drivers, the air cargo traffic is expected to get a major boost. ICRA expects the air cargo traffic in India to grow by around 60 per cent to 4.7 million tonnes in next five Policy support Increasing investments years – translating into CAGR of 9.7 per cent.

Expanding middle income group and working population

Rising domestic and foreign tourists and travellers

Strong growth in external trade

Source: www.ibef.org

Greater government focus on infrastructure

Inviting

Increasing liberalisation, Open Sky Policy

Policy sops, FDI encouragement

Resulting in

AAI driving large modernisation, development projects; expansion and upgradation of existing airports; development of low-cost airports

Increasing private sector participation, increasing greenfield projects

In order to develop airports in tier-2 and tier-3 cities, strategy of ‘Asset recycling’ can be followed for monetisation of exisiting assets to generate r e q u i r e d c a pi t a l fo r t h e developmental purpose.

Strong projected demand making returns attractive

This strategy will allow the go v e r n m e n t t o m o n e t i s e financially-viable projects to generate capital for financing other economically useful -- but not financially viable -airports. It could be an alternative to a viability gap fund strategy or a strategy of financing new assets using extra charges on air tickets.

Stakeholders in the airport business should give a thought of bringing innovation in capital structure of the business. In terms of generating financing, the airport business can be listed through an IPO. The idea of funding the business through IPO has been around for a while in India. Globally, airport operators such as Corporacion America Airports are also looking at IPOs.

Airport infrastructure – A budding investment opportunity A leading management consultancy firm, InterVISTAS in a study titled ‘Economic Impact of European Airports’ found that the relationship between aviation connectivity and GDP per capita for 40 countries was a positive one but with a significant scattering around the average. The key takeaway of the study is that airport infrastructure has positive impact on a GDP growth of a country. And, the positive impact could be achieved when it’s backed with proper planning.

It is essential to look aat irport infrastructure individually, whether created by private player or by a regulator in larger hub-and-spoke network. The focus should be on building meaningful infrastructure at the place of just creating excess capacity at airports. It’s a fact acaai 2018 - CargoConnect

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Mike Chew

CEO, Air India SATS

“Every industry faces its own set of challenges and the Indian Aviation industry is no exception. But constant innovation within its service lines and increased spends in airport infrastructure will help the industry meet and overcome these challenges.” that well-built airport infrastructure not only drives business productivity but also caters local economies and inbound tourism.

Rising capacity of Delhi airport India’s thriving aviation industry has been constantly pushing airports across the country to operate at their highest capacity. Sanjiv Edward, Chief Commercial Officer, Delhi I nter n at ion a l A i r p or t L i m ite d (DIAL) observes, “Demand of providing additional slots by airlines has been increasing day by day and all the major airports are working at faster pace to enhance their infrastructure facilities to cope up with this intense demand of slot.” India’s low cost carriers (LCCs) have positioned themselves as significant players in the domestic sector. Government of India’s flagship Regional Connectivity Scheme, ‘UDAN’ (Ude Desh ka Aam Nargrik) is poised

56 CargoConnect - acaai 2018

Edward points out, Delhi airport has been consistently expanding its i n f rastr uct ure capacit y a nd efficiency over the last decade. As per IGI Airport master plan, capacity of Terminal-1 will be increased from 20 million to 40 million, and that of Terminal-3 will be increased from 34 million to 45 million annual passenger handling within the next 3-5 years.

Keeping pace with the growth trends, Delhi airport has also planned to construct fourthrunway by 2021 and it will be completed parallel to Runway 11/29.

While Air Cargo infrastructure of IGI Airport has already been planned to be expanded in phases over the next few years, the development of airport logistics facilities is being taken up to meet the increased demand from air cargo stakeholders.

The first phase consisting of a 2 lakh sqft logistics facility is planned to be made operational in May 2018. Almost all the major airports of India are undergoing massive developmental plan since the last few years to accomplish the increased future air traffic demand for passenger as well as air cargo, notes Edward.

Civil Aviation Ministry is planning to build 200 odd airports across Ind ia. A poi nt wh ich is wor th mentioning here is that the most of the airports are running in a loss in the country. On this point, Mike Chew, CEO, Air India SATS said, “Every industry faces its own set of challenges and the Indian Aviation industry is no exception. But constant innovation within its service lines and increased expenses in airport infrastructure will help the industry meet and overcome these challenges.

The various initiatives and policies introduced by the government have a lso prov ided the much-needed impetus for the sector to grow even further and reach new heights in the coming years.”

AAI LEADS THE WAY IN AIRPORTS INFRASTRUCTURE INVESTMENT

Metro airports •

The AAI aims to bring around 250 airports under operation across the country by 2020

•

The AAI has developed and upgraded over 23 metro airports in the last 5 years

Non-metro airports •

The AAI plans to spend US$ 1.3 billion on non-metro projects over the 5 years (2013–17); mainly focusing on the modernisation and upgradation of airports; New airports at Itanagar, Kohima and Gangtok are also planned.

•

The Government of Andhra Pradesh is to develop greenfield airports in six cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model.

•

Upfront subsidy has been proposed through which non-metro airports would be funded by imposing 2 per cent levy on both domestic and international airfares.

•

About 22 airports to get connected under regional connectivity scheme of AAI.

Northeast India •

Over 30 airport development projects are under progress across various regions in Northeast India

•

AAI plans to develop over 20 airports in tier II and III cities in next 5 years

•

The AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs

Source: www.ibef.org

to give further thrust to the industry.

MAY 17, 2018, SHANGRI – LA’S EROS HOTEL, NEW DELHI

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GUEST OF HONOUR

VANDANA AGGARWAL Economic Advisor, Ministry of Civil Aviation (Will discuss Strategic Ways and Policies to magnify apparel export from India)

SANJAY K JAIN Chairman, Confederation of Indian Textile Industry Northern India Textile Research Association Textile Sector Council

PANELISTS

SP SAHU Commissioner Single Window ICEGATE

ANIL VARMA President Delhi Exporters Association

T.K. SENGUPTA President The Textile Association (India)

XAVIER BRITTO Chairman Kerry Indev Logistics

H.K.L MAGU Chairman Apparel Export Promotion Council

VIPIN VOHRA Chairman Continental Carriers

VIVEK AGARWAL SUNIL KUMAR Managing Director Assistant Director Everfast Freight Northern India Textile Research Association Forwarders

A.K. JAIN Associate Vice President (Commercial) Orient Craft

DR. ROOPAK VASISHTHA CEO Apparel Made-ups & Home Furnishing Sector Skill Council

ABHIK MITRA Managing Director Spoton Logistics

RAJIV PANDE President Perf - By Rahman Group

ARVIND SINHA Immediate Past President The Textile Association (India)

SANJAY CHAWLA Publisher & Editor in Chief DFU Publications

For Registration & Sponsorship please contact: Mehuli Choudhury: +91 9810730347 Email: mehuli@surecommedia.in, mehuli.surecommedia@gmail.com Twinkle Thakur: +91 9711373744 Email: twinkle@surecommedia.com, twinklethakur.surecommedia@gmail.com

feature

R egional connectivity scheme fueling the growth engine “UDAN” (Ude Desh ka Aam Naagrik) under RCS, is termed as a catalyst for Indian economy. The matured growth of populated metropolitan areas has been spilling over to the hinterlands, opening numerous opportunities for regional aircrafts, helicopters, and seaplanes to interconnect remote, underserved, or unserved airports, towns, cities, etc.

Airports Authority of India (AAI), the implementing agency of RCS, plans to invest $2.6 billion for upgrading regional airport infrastructure in the country, enhancing airfields and airstrips of regional airports by 2020.

Keeping optimistic view forward, Edward says, with the dawn of this new

58 CargoConnect - acaai 2018

12.39%

264.97

2CAGR

223.60

250

190.10

169.03

159.40

143.43

123.76

116.87

96.49

73.35

100

108.88

150

162.31

200

50

280.24

300

FY18

FY17

FY16

FY15

FY14

FY13

FY12

FY11

FY10

FY09

FY08

1

It is commonly voiced 0 that RCS will provide new mome nt u m t o Source: Association of Private Airport Operator, Airports Authority of India India’s Agro-industry and Logistics industry will play a crucial role in conveying these regional agro-produce from India’s hinterland to metros, Tier-II, Tier-III cities as well as into the global market. The Indian air cargo industry is envisioning significant growth opportunity in the country with the strong backing of schemes like RCS and Make in India.

FY07

“Demand of providing additional slots by airlines has been increasing day by day and all the major airports are working at faster pace to enhance their infrastructure facilities to cope up with this intense demand of slot.”

Visakhapatnam Passenger port traffic traffic(million) (million tonnes)

FY06

Sanjiv Edward,

Chief Commercial Officer, Delhi International Airport Limited (DIAL)

regional air connectivity, g row t h of log ist ics i ndustr y is cer ta i n.

“Future looks bright for t he sust a i n able growth of air cargo and logistics industry. As our country’s economy is largely agro-based, RCS will prove to be a new lifeline for them in breaking the regional frontier and creating a sustained path for carrying their produce into the global market.”

According to Harsh Jagnani, Vice President and Sector Head – Corporate Ratings, ICRA, “Growing e-commerce, improving air connectivity across small airports in the country, and growth in GDP are expected to result in growth in air cargo traffic.

Domestically, plans are afoot to make metro airports as cargo hubs catering to the neighbouring regions. If we see through international perspective, India also has significant potential to be a transhipment hub for international cargo movement from other countries, given its geographic location and the increasing international air connectivity. However, infrastructure bottlenecks remain a major constraint to the growth prospects of air cargo and the same need to be addressed.”

Despite healthy growth, the quantum of air cargo handled at all airports in India is significantly lower than the cargo handled at the world’s busiest airport - Hong Kong. In 2017, all airports in India together handled 3.3 million tonnes of air cargo, whereas Hong Kong Airport is expected to have handled 4.9 mn tonnes.

The infrastructure constraints faced by the sector include lack of sufficient cargo handling infrastructure at tier 2 and 3 cities, congestion at major cargo terminals in the metros, and lack of dedicated facilities for cargo operators result in delays and increased transaction costs.

Government initiatives Recognising the need, the Government of India (GoI) has laid emphasis on cargo infrastructure development in National Civil Aviation Policy (NCAP), 2016, and has set up an Air Cargo Logistics Promotion Board (ACLPB – an inter-ministerial group).

As per expectations, Airports Authority of India will also play a pivotal role in the development of cargo infrastructure. For better functioning and speedy execution, AAI has setup a wholly owned subsidiary - AAI Cargo Logistics and Allied Services Company Limited in August 2016, which has been striving to establish dedicated cargo airports in the country.

Avail 20% discount on Sponsorships & Registration till 30 April Join us in Mumbai for PHARMACONNECT 2019 PHARMACONNECT is the most prestigious annual pharma logistics industry event, bringing together key stakeholders from the entire pharma supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories.

We look forward to welcoming you in Mumbai, a city poised to become a global financial, commercial and entertainment hub with a potential to generate $50 billion revenues.

MARK YOUR AGENDA FOR PHARMACONNECT-PHARMA LOGISTICS SUMMIT AND JOIN OVER 350 LEADERS FOR THIS ACTION-PACKED EVENT    

Meet & network with over 350 pharma supply chain professionals Engage with experts at workshops and panel discussions Benefit from one to one meetings with leading suppliers Identify new business opportunities and network with leading suppliers and exhibitors from across the world

FOR FURTHER DETAILS Ajeet Kumar: +91 9810962016, ajeet@surecommedia.in Mehuli Choudhury: +91 9810730347 / 8700292866, mehuli@surecommedia.in

When 17th - 18th January, 2019 Where Mumbai, India Audience Pharma Supply Chain Professionals

feature

INDIA’S LOGISTICS ENVIRONMENT 2017-18 ACHIEVEMENTS AND PROSPECTS OF THE AVIATION SECTOR

2017 has been a big year for the Indian logistics sector. From the rollout of GST and granting infrastructure status, to the continued growth of the internet of things (IoT), change has been the name of the game. Hopefully, 2018 will bring some certainty back into the mix. Now that we’ve laid a foundation of change, it’s time to build something meaningful on top of it. 2018 is the year for building. Having said that, let’s take a look at the biggest trends of 2017 in the Indian aviation industry and what the future in 2018, and beyond, shall look like.

- UPAMANYU BORAH

W

ith a promise of growth and improvements, the service oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade. The industry which is worth around USD 160 billion is likely to touch USD 215 billion in the next two years with the implementation of GST. Rise of ecommerce logistics and increased domestic consumption will lead the way for the industry in the coming years. Integration of IT and technology will reduce the costs incurred and help meet the service demands.

Air freight accounts for 2% of logistics movement in terms of volume, and 30% in terms of value.

Financial Year’17 Exclusives

INDIA’S FREIGHT AIR CARRIES?

The AVIATION Industry India is the ninth-largest civil aviation market in the world and presently has a market size of USD 16 billion.

The industry is poised to become the third-largest aviation market by 2020 and the largest by 2030. It is among the five fastest- growing aviation markets globally, growing at over 20 per cent year over year. In India, air freight accounts for 2 per cent of logistics movement in terms of volume, and 30 per cent in terms of value.

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3.

2.

1.

FDI inflows in air transport (including air freight) until December 2017 stood at US$ 1,608.51 million.

Airport building and modernization projects worth over Rs 19,300 crore (US$ 2.99 billion) sanctioned.

Airports Authority of India has finalised (Rs 17,500 crore (US$ 27.13 billion) for the next five years) and around Rs 22,000 crore (US$ 3.41 billion) for brownfield expansion in Delhi, Mumbai, Hyderabad and Bengaluru by private operators and around Rs 21,000 crore (US$ 32.55 billion) for greenfield airports.

DURABLES 20 CONNECT 18 DURABLES LOGISTICS CONFERENCE

Join us in Delhi for DURABLESCONNECT 2018 DURABLESCONNECT a prestigious durables logistics event, bringing together key stakeholders from the entire durables supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories.

We look forward to welcoming you in Delhi, the city, famous for being the commercial and cultural hub, having a vibrant historical significance attached to it.

Mark your agenda for DURABLESCONNECT - Durables Logistics Conference and join over 200 leaders for this action-packed event    

Meet & network with over 200 durables supply chain professionals Engage with experts at workshops and panel discussions Benefit from one to one meetings with leading suppliers Identify new business opportunities and network with leading suppliers and exhibitors from across the world

 When: 26th July, 2018

FOR FURTHER DETAILS

 Where: New Delhi, India

Ajeet Kumar: +91 9810962016, ajeet@surecommedia.in

 Audience: Durables Supply Chain Professionals

Mehuli Choudhury: +91 9810730347, mehuli@surecommedia.in

feature Air tra�fic in India rose 15.80 per cent year-on-year to 280.24 million during April-February 2017-18.

During FY17, domestic passenger tra�fic increased by 22 per cent in comparison with growth rate of 21.24 per cent in FY16.

Major Investments/ Developments

During FY17, international passenger tra�fic increased by 7.72 per cent.

Indian airports are emulating the Special Economic Zone (SEZ) Aerotropolis model to enhance revenues, focus on revenues from retail, advertising and vehicle parking, security equipment and services.

The E-Governance for Civil Aviation (eGCA) project envisages online service delivery, automation of systems and processes at the back-end with implementation of required IT infrastructure and service delivery framework.

Government Initiatives

1

Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) shall connect 56 unserved airports and 31 unserved helipads across the country.

2

The Airports Authority of India (AAI) will undertake new development works at Lucknow, Deoghar, Rajkot and Allahabad airports.

3

Under the second round of Regional Connectivity Scheme (RCS 2), the government has awarded 325 routes to airlines as well as helicopter operators with the objective of enhancing �light services to hilly and remote areas.

4

Construction of 17 highways-cum-airstrips declared.

62 CargoConnect - acaai 2018

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THE RUNWAY

2

India is estimated to see an investment of US $25 billion in the next decade in the airports sector, and tra�fic growth of 13 per cent, according to Morgan Stanley.

1

Operations under UDAN scheme have started at 16 unserved airports.

4

3

Allocation to Civil Aviation Ministry has been tripled to Rs 6,602.86 crore (US$ 1,019.9 million) under Union Budget 2018-19.

6

7

8

5

India's first aviation university at Fursatganj in Uttar Pradesh's Rae Bareli district inaugurated on August 2017.

12

300 business jets, 300 small aircra�t and 250 helicopters are expected to be added to the current �leet of Indian carriers in the next five years.

Airport Authority of India (AAI) aims to bring around 250 airports under operation across the country by 2020.

The Prime Minister of India launched the construction of Navi Mumbai airport which is expected to be built at a cost of US$ 2.58 billion.

AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones.

11

9

The Airports Authority of India (AAI) has allocated around Rs 3400 crore for the upgradation of airports in the North East region.

DigiYatra platform to add a digital experience for air travellers.

NABH Nirman aims to expand airport capacity by more than five times to handle a billion trips in a year.

10

In the coming 20 years, Indian companies will buy 2,100 new planes worth US$ 290 billion.

Also, domestic air tra�fic in India is expected to cross 150 million in FY19, on the back of unprecedented capacity induction by airlines.

Disclaimer: This information has been collected through secondary research and CARGOCONNECT is not responsible for any errors in the same. acaai 2018 - CargoConnect

63

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Air Cargo

Connectivity Transcending Global Barriers With the world getting closer and more trade-friendly, various steps are being taken to promote air cargo and its connectivity to make the countries viable for each other. While IATA stated various facts, Vladimir Zubkov, Secretary General, TIACA, during his meet at Africa emphasised on prioritising air cargo connectivity across the globe. Working along similar lines, Upamanyu Borah informs about the practices and initiatives being taken in that path.

64 CargoConnect - acaai 2018

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G

rowth of air cargo transportation in international sector is an indicator of development in trade and economic development of a nation. More than onethird of the merchandise in terms of their value moves by air and this volume itself is an indicator of the importance of air cargo transportation in international trade. It is believed that higher the international air cargo connectivity and movement of cargo, the better the trade index of a nation.

Domestic cargo has registered a growth of 8 per cent at a CAGR during FY07-17, whereas international cargo grew at 6.2 per cent annually during the same period, according to an ASSOCHAM-Yes Bank joint study. In India, air trade

to GDP ratio has doubled from 4 per cent to 8 per cent in last two decades. Air cargo contributes about 20 per cent of airlines revenue and involves a wide variety of service providers. It employs nearly 70,000 persons in the country, reveals the joint study on ‘Civil Aviation’ released at New Delhi. Air cargo should be treated at par with other logistics sector like roads which is subject to 5 per cent tax rate. It is recommended that air cargo tax rate may be reduced from 18 per cent and considered for a lower tax bracket. Indian express cargo industry provides fast, reliable, on demand, integrated and door-to-door (including customs clearance and duty and tax payments) is likely to grow manifold in the coming years. Growth of the industry will be driven by current major customer segments, namely auto components, banking

acaai 2018 - CargoConnect

65

feature There is vital and quantitative link between a country’s air cargo connectivity and its participation in global trade. A small increase in air cargo connectivity could be an enabler associated with a sizable increase in a country’s total trade. Air cargo is a key in supporting the current global trading system.”

Keku Bomi Gazder Chief Executive Officer, AAI Cargo Logistics and Allied Services Company Limited (An AAI Subsidiary)

and finance, garments, pharmaceuticals, IT hardware and mobile phones, E-commerce etc.

As per IMF forecast, India’s GDP is expected to grow at an average of 7.5 per cent to 8.2 per cent during FY18-FY21 and thus air cargo could be at the centre of supply. In order to promote growth in air cargo by way of cost reduction,

freight stations. Creating AAICLAS would bring multiple advantages as there is a lot of activities on the cargo front.

Importance of Air Cargo Connectivity Keku Bomi Gazder, Chief Executive Officer, AAI Cargo Logistics and Allied Services Company Limited said, “There

Annual GDP growth 2011-2030 South Asia

7.1

China

7.0

Asia Pacific

4.7

Africa

4.4

Southeast Asia Latin America Middle East

4.4 4.2 4.1

CIS

3.4

World

3.3 2.8

Oceania North America

2.7

Europe Northeast Asia

2.0 1.3

efficiency improvement and better interministerial coordination, Air Cargo Logistics Promotion Board (ACLPB) and AAI Cargo Logistics and Allied Services (AAICLAS) have been formed.

AAICLAS focus is on three verticals (a) air cargo handling and allied services, (b) warehousing and contract logistics and (c) air cargo road feeder and air

66 CargoConnect - acaai 2018

Source: IHS Global Insight

is vital and quantitative link between a country’s air cargo connectivity and its participation in global trade. A small increase in air cargo connectivity could be an enabler associated with a sizable increase in a country’s total trade. Air cargo is a key in supporting the current global trading system. It is in the economic interest for governments to

promote and implement policies for the efficient facilitation of air cargo.”

The key policy changes and industry modernisation plans are very important for the improvement of air cargo connectivity in the country. Facilitating trade with efficient air cargo processes requires a strong partnership between governments and industry.

Governments have the important role of implementing global standards and agreements to facilitate trade and make it possible for airlines to modernise processes. In turn, the industry needs to embrace these opportunities to improve competitiveness and provide customers with enhanced shipping quality, service and better deliverables.

Hence, the more connected you are with the world, the greater your ability to engage in trade.

Sanjiv Edward, CCO, Delhi International Airport Limited informed, “In a recently concluded study by IATA, it has been established that Air Cargo connectivity directly affects the trade relations across the globe. There is a clear link between air cargo connectivity and trade growth. It has been found that 1 per cent increase in air cargo connectivity is associated with a 6.3 per cent increase in trade. The study has also developed two indexes - Air Trade Facilitation Index (ATFI) and the e-Freight Facilitation Index (EFFI). Countries that performed better on these indexes also were more integrated into Global Value Chains (GVCs). The role of air cargo is even greater for trade in advanced industrial, high value goods, and other sectors that rely on rapid, reliable and secure transport.”

feature Growth in international trade is essential for any nation to grow economically and prosper. While sea freight offer connectivity limited to between ports, necessitating road/rail transportation to the final destination at extra cost and time, air freight has direct access to hinterland stations through operational airports.”

Vipin Vohra Chairman and Managing Director, Continental Carriers Pvt Ltd

Vipin Vohra, Chairman and Managing Director, Continental Carriers Pvt Ltd says, “Growth in international trade is essential for any nation to grow economically and prosper. While sea freight offers connectivity limited to ports, necessitating road/rail transportation to the final destination at

Important Facts on Air cargo traffic Worldwide airport cargo increased 4per cent in 2016 to 110 million metric tonnes, with mixed levels of growth across all six regions.

Hong Kong (HKG) and Memphis (MEM) take the first and second ranks respectively for the busiest air cargo airports with 4.6 and 4.3 million metric tonnes in 2016.

Airports in the Asia-Pacific region handled the largest amount of air cargo during 2016: Asia-Pacific (43.4 million metric tonnes, up 5.4 per cent over 2015) North America (30.8 million metric tonnes, up 2.4 per cent over 2015) Europe (20.1 million metric tonnes, up 5 per cent over 2015) Middle East (8.8 million metric tonnes, up 2.7 per cent over 2015) Latin America-Caribbean (5.1 million metric tonnes, up 0.9per cent over 2015) Africa (2.1 million metric tonnes, up 1.3 per cent over 2015)

The world’s fastest-growing airports handling over 250,000 metric tonnes of air cargo during 2016 are: Moscow (SVO) (256 thousand metric tonnes, up 28.8 per cent over 2015) Doha (DOH) (1.76 million metric tonnes, up 20.8 per cent over 2015) Hanoi (HAN) (566 thousand metric tonnes, up 18.2 per cent over 2015)

The world’s busiest airports in international freight traffic are: Hong Kong (HKG) (4.52 million metric tonnes, up 3.2 per cent over 2015) Incheon (ICN) (2.60 million metric tonnes, up 4.5 per cent over 2015) Dubai (DXB) (2.59 million metric tonnes, up 3.4 per cent over 2015)

The world’s busiest airports in domestic freight traffic are: Memphis (MEM) (3.80 million metric tonnes, down 6.1 per cent over 2015) Louisville (SDF) (1.91 million metric tonnes, up 3.3 per cent over 2015) Beijing (PEK) (1.14 million metric tonnes, down 1.2 per cent over 2015)

68 CargoConnect - acaai 2018

extra cost and time, air freight has direct access to hinterland stations through operational airports.

Of course, there is a need for more operational airports in remote areas, in addition to gateway airports to act as cargo hubs. India, as a fast developing nation, is well poised with over 120 airports capable of offering connectivity for air cargo.”

Challenges and Steps to be Taken Air cargo industry engages, directly or indirectly, about 2 million people globally and contributes 12 per cent to global airlines revenue. The Indian air cargo scenario still looks better as it contributes around 20 per cent to the airlines revenue, as compared to global average of 12 per cent and 70000 in employment in India. Air cargo is registering a phenomenal growth and the past ten years witnessed a CAGR of 8 per cent in domestic and 6.2 per cent in international cargo trade.

The liberalisation of economy, entry of new airlines, new routes, reforms in government policies, advanced technology have helped Indian air cargo to expand. But air cargo sector in India is still fragmented and faces certain challenges which are due to air traffic in the country which is mainly concentrated at only a handful of airports.

The challenge lies in connecting cargo volumes of tier 2 and tier 3 cities with major cities for air transportation, which lacks appropriate cargo infrastructure.

In order to provide scope of capacity addition to the existing cargo players, it is necessary to integrate airport infrastructure with air cargo facilities.

Dedicated unused infrastructure at airports may be marked to air cargo operators. The inbound freight demand is not very strong and is not enough to fill up the aircraft but that is not the case with exports which see much higher utilisation. As a result of intense competition, the export rates have been low.

Hence, airlines are finding it tougher to make profit to keep India on their route.

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feature Since this year cargo growth has been stable both globally and India.

The cargo growth in India has been double-digit, more from the export side. This also reflects on the global market, indicating that the overall global growth has steady.�

Keki Patel Cargo Manager India and Nepal, Emirates SkyCargo

Further, substantial investment is needed to develop dedicated on-airport cargo terminals, air freight stations, to handle air cargo across the country. Advances in technology and the implementation of security systems also need to be pursued.

Indian airports enjoy a geographical advantage, owing to their strategic location. But the transshipment route has not been fully exploited. In order to develop transshipments, customs and security policies and procedures for transshipment need to be standardised at various airports.

India is placed in a better position as compared to global growth trend.

With the fleet size is anticipated to grow manifold in the next two decades, projected economic growth at over 6 per cent, surging demand for ‘express cargo’ service and various Government initiatives, the nation is poised for a quantum jump in domestic and international trade through better matching and need based air cargo connectivity. Many trading partner countries are likely to emulate the

Chinese and Indian success stories in the coming years.

Initiatives aimed at supporting the cause Air cargo is key in supporting the current global trading system, with an estimated 35 per cent of value of global trade carried by air, even though it covers less than 1 per cent by volume.

As global share output, trade is now at about three times the level it was in the

feature Modernising the industry through increased automation and improved efficiency (such as greater E-AWB adoption) and also the creation of improved processes and collaboration are the way forward.”

Roger Samways Vice President, Cargo Sales, American Airlines Cargo

early 1950s. In 2015, airlines transported 52.2 million metric tons of goods valued at $5.6 trillion or US $15.3 billion worth of goods every day, representing about 35 per cent of global trade by value.

Roger Samways, Vice President, Cargo Sales, American Airlines Cargo said, “Modernising the industry through increased automation and improved efficiency (such as greater e-AWB adoption) and also the creation of improved processes and collaboration are the way forward.”

Regional Connectivity Scheme, under UDAN, is aimed at offering connectivity to and from remote airports, which remained un-served or under-served. Under this scheme, operating airlines get the benefit of ‘viability gap funding’. Though the focus is on passenger traffic, small volume cargo, into and out of the areas covered, can also be accomplished.

Demand of local commodities for export or consumption in metropolitan

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cities will, in turn, improve the quality of products and boost the region’s economy. This will further pave way for movement of cargo, in the form of raw materials or consumer goods and hardware, into the region, creating demand for balanced outward as well as inward cargo movement.

Setting up and operationalising of ‘Air Freight Stations’ in the hinterland and industrial hubs, as envisioned by the Government for better and direct cargo linkage to gateway airports and to decongest them, is the parallel workable solution for better rural connectivity.

Keki Patel, Cargo Manager India and Nepal, Emirates SkyCargo opined, “Since this year cargo growth has been stable both globally and nationally. The cargo growth in India has been double digit, more from the export side.

On the global market, this indicates that the overall global growth has been steady. This has been good for Emirates SkyCargo in terms of sustained demand and utilisation of our large capacities, with also giving us the opportunity to bring in more freighters and service to the exporters.

To promote and support the growth, the industry along with the government is required to take initiatives towards transparency at all levels; the export trade needs to be diversified in terms of networks across the globe, friendly policies towards free trade and initiatives like bilateral agreements between countries will aid to the industry.”

Air Cargo and Global Trade With the introduction of GST in India, octroi has been removed, which will propel the demand for cargo movement through roads. But, airlines in the country have been hit hard with the implementation of the GST framework. Thus, in order to protect air cargo from the negative impact emanating from the new developments in the competitive sectors, it is recommended that a connectivity plan should be laid down to connect rail cargo with air. It is in the economic interest for governments to promote and implement policies for the efficient facilitation of air cargo. After all, there are quantitative evidence on the significance between air cargo connectivity and trade competitiveness.

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Join us in Delhi for AUTOCONNECT 2018 AUTOCONNECT a prestigious automotive logistics event, bringing together key stakeholders from the entire automotive supply chain, with a focus on the supply chain to share experiences, debate the key industry issues and showcase success stories.

We look forward to welcome you in Delhi, the city, famous for being the commercial and cultural hub, having a vibrant historical significance attached to it.

Mark your agenda for AUTOCONNECT - Automotive Logistics Conference and join over 200 leaders for this action-packed event    

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Interview

Pioneering innovation and competitiveness in airlines longest range twine engine freighter AC and two B757F to more than 44 international freighter destinations of which more than 20 are in Africa. With the fleet, destinations and tonnage, Ethiopian Cargo & Logistics Services is by far the largest cargo airline in Africa .

2. How far have you been successful in

implementing technology to effectually streamline your air freight services?

Operating at the forefront of technology, Ethiopian Airlines, the largest Aviation Group and Skytrax certified Four Star Global Airline, has been recently conferred Airline of the Year Award for the sixth consecutive year in a row, by the African Airlines Association (AFRAA). Fitsum Abadi, MD - Ethiopian Cargo & Logistics Services, in a one-to-one conversation with Upamanyu Borah, elucidates the initiation of their operations, USP, digital transformations happening and impending, future mega trends in the global aviation industry and what they have in store for the Indian subcontinent. Excerpts!

1.

How has Ethiopian Cargo & Logistics Services evolved overtime to being Africa’s largest cargo operator?

How extensive is your network?

We started with as belly cargo and later the airline had operated Boeing 707 freighter, Boeing 757 Freighter, two Lockheed L-100 commercial Hercules and one DHC-5 Buffalo. Ethiopian Cargo has also operated B747-400F and MD11 freighters. Currently, the cargo airline operates six B777-200LRF- the

74 CargoConnect - acaai 2018

We believe system, people and technology are important in today’s businesses and we have been successfully contriving the latest technologies that satisfy the interest of our customers. We own latest and youngest technologies of which some are listed below: - We have state of the art cargo facility with leading MHS including ETVs, Cargo Screening, Inventory Control System, CCTV system, Access Control System, etc.

- We have the best enterprise resource planning platform and multipurpose system called ERP and world’s leading cargo operation management system called Cargo Spot.

- We are operating the best, efficient and youngest aircrafts in the business.

- We are working on e-freight and e-AWB to IATA compliant.

3. Do you think India has the potential to become a leading international cargo hub? How much importance does India has in the overall growth of the air cargo industry?

In developing countries like India, an efficient logistics infrastructure can reduce cost of transportation, which, in turn, can contribute directly to global competitiveness of the country. The availability of infrastructure is also a key determinant for FDI inflows, which will help the growth of India’s cargo business towards leading hubs across Asia and the world.

In 2016, India’s merchandise export was 17th biggest in the world and reached USD 271.600 million, registering a growth of 13 per cent compared to previous year. This indicates that the Indian market plays

vital role in the overall growth of air cargo industry.

Complementing the booming economic relations between India and the African continent at large; coupled with Ethiopian Cargo & Logistics Services’ reliable air cargo connectivity to Mumbai, Bangalore, Madras, Delhi and Ahmedabad in line with India’s fastest growing pharmaceutical, machinery and perishable exports, offers India the right potential to be one of the leading international cargo hub.

4. Please elaborate on the quality and best practices that Ethiopian Cargo has adopted in air logistics operations?

Ethiopian Airlines have been focusing on four basic pillars: Human Capital: State of the art aviation academy and all level of training requirement are in place.

ICT (Information and Communications Technology): We use one of the best cargo commercial and operational systems, Cargo Spot.

Infrastructure: State of the art cargo facility with more than 1,000,000 tones annual capacity gives us a competitive advantage.

Fleet: Young and latest fleet of airplanes helping us achieve high level of efficiency and increased quality of service.

5.

Last year, Ethiopian Cargo launched cargo services to Ahmedabad, its fifth cargo gateway in India. Having said that, do you plan to increase your import capacity with more number of air hubs under your umbrella in future?

Ahmedabad is Gujarat’s largest business and trading hub and Ahmedabad Airport serves as the entry point to the fastest growing city in India. Due to limited demand from Hong Kong to Ahmedabad, we have rerouted the operation from HKG-AMD-ADD to ADD-AMD-ADD. If AMD export proves to continuously help grow Ethiopian Cargo & Logistics Services, we will surely deploy additional capacity to support the exports, for itself and for its growing exports.

Committed to providing the highest service values 1. What makes your services different? Is

there alignment across quality, operations and logistics?

Our services are catered around providing the utmost satisfaction to the consumers.

We have a dedicated team of professionals that handle the follow up protocols to ensure fast and reliable trackability. We also ensure quick upliftment that can be achieved through continuously monitoring the situation at our cargo terminal in New Delhi.

Definitely, through continual efforts, we ensure that our logistics and operations run as smooth as possible and are equipped to handle variability.

2. With granting “Infrastructure Status”, the government expects the Indian logistics sector to grow to $360 billion by 2032 from the current $115 billion. How do you foresee the future of the Indian Logistics Industry?

I see great potential in the Logistics Industry in India. Not only it has grown substantially, but in comparison to any other industry in the market, Indian logistics sector has been showing promisingly steady growth which is anticipated to consolidate in the coming years. I do not know if we will reach the exact figures by 2032 but surely it will be a remarkable jump from the existing volumes.

With slight improvements and tweaks in our database processing softwares, we can surely achieve and maintain the international standard of operations.

3. How does Namaste Aviation Group minimises the risk of cargo in transit and maximises satisfaction of clients?

We take extreme care in handling cargo and are 24/7 available, even on Sundays for any help, if need be by our customers. Boasting a young fleet of newly acquired aircrafts helps us in reducing our lead time by saving on time taken in hangers for repairs of older planes. Besides this, we understand that being in this particular field, the commodity

Interview

of our customers is of utmost importance due to the sheer size of the cargo and also the importance it might hold in the destination country. Therefore, urgent protocols are established in case of mishandling or damage of cargo.

4. In order to maintain a strong hold in

the country’s logistics market, are you strategising on business tie-ups with leading regional players?

In order to maintain a tight grip in our country’s logistics market, our company believes in having a strong foundation at first. We have established long-lasting ties with multiple IATA agents, strong SubAgencies and numerous leading MNC’s to ensure a steady flow of cargo. Having tieups with regional players is a really good strategy on which we are currently working to maintain our dominating presence.

We have a dedicated team of professionals that handle the follow up protocols to ensure fast and reliable trackability 5.

What sort of dedicated practices and organisational values the company can expect under your leadership, in order to maintain a positive and productive work environment?

Under my leadership, personal care and attention is given to each and every employee of our company. We believe strongly in having trust and faith among ourselves in order to achieve a positive working environment. Looking microscopically at every detail; from a query for a shipment till the arrival at the destination, is what I believe sets us apart from other upcoming players in the market. We also treat our dedicated team like a family and engage in bonding activities over the weekends and sometimes also on weekdays.

An established venture in the Aviation Industry, Namaste Group constitutes a class of experienced professionals who seeks to deliver exceptional service to its customers through a focus on innovation, professionalism and integrityvirtues that have driven the company on the value ladder.

Aviraj Rathi, Director, Namaste Group, in a candid interview with Upamanyu Borah, outlines the company’s mission, strategies adopted to effectuate their logistics operations and core organisational values.

acaai 2018 - CargoConnect

75

Interview

“India offers great opportunities in cargo operations” 1. Please tell us about the genesis of your cargo operations in India and abroad.

Our cargo operations are currently focussed in India. We have extensive international trading activities though. We think India offers and will continue to offer great opportunities in air cargo operations.

2. GSECL has a huge air cargo complex

at the airport in Ahmedabad and Indore.

Please elaborate on the exclusive services offered to hold the clientele.

Having spent good number of years in the industry, has given Shaishav R Shah, WholeTime Director, GSEC Limited (GSECL), substantial exposure in domestic as well as international air cargo markets.

In an exclusive interview with Ritika Arora Bhola, the expert talks about their services, USP, offerings, future projects and expansion plans

Ahmedabad has grown into a significant player registering a CAGR of over 15 per cent since last decade. Our work is pretty much cut out to facilitate this surge in tonnage with whatever limitations we have in terms of space. We have, over a period of time, introduced the best possible solutions be it software or hardware. More importantly, we have oriented our entire team towards customer satisfaction. We believe our customers are happy with us – their continuous patronage is a testimony to our growth.

3. What is your USP? The key word here is quick response. We talk to our customers even at 2 A.M. because we know that next day would mean a day lost for them. As I said the processes are pretty much standard and well-defined – the uniqueness will come from one’s own approach to these processes and agility for course correction.

4. Indian logistics industry is growing at a

fast pace. Please comment on the present scenario of the Indian logistics industry.

How has it changed post GST?

Growth of the Indian logistics industry has been fuelled by the growth of economy. Last two years saw some disruptions which impacted economic activities, but there was no perceptible dip in logistics activities. This indicates a strong resilience of the industry.

When the economic activities pick up- the green shoots are visible even now- logistics

76 CargoConnect - acaai 2018

will enter a new orbit. International cargo operations are not impacted in the postGST era and barring some implementation related issues like refund to exporters, things have been normal.

5. Please throw light on the supply chain

management process and strategies adopted by GSECL to ensure smooth operations.

I think the processes for cargo operations are pretty much standardised and revolve around statutory and customer specific requirements. Job of a cargo terminal operator is to ensure best possible levels of efficiency of cargo handling while ensuring full compliance. We at GSECL, try to get this right day after day. We solve issues concerning trade over a phone call and no not wait for long winded trade meetings. We appreciate the fact that time is probably the single most crucial element in this business.

6. Please tell us about the types of cargo that is transported across India and abroad.

GSECL has international cargo complexes at Ahmedabad and Visakhpatnam and domestic cargo complexes at Indore and Raipur. The cargo commodity mix is extremely diverse. At Ahmedabad we pride ourselves for handling products like gold, silver, pharmaceuticals and textiles as significant commodities. Vizag is a recent start but we see great potential in diamond, perishable and textile products there. Our domestic cargo is mainly e-commerce, electronics, engineering and postal mails.

7. What are your future projects? Please tell us about your expansion plans.

We are planning to set up simulators for training of pilots. We are also looking at some projects on inland container depots. Our promoters have invested in two new airlinesAir Odisha and Air Deccan and that is a very exciting area with regard to government’s thrust on regional connectivity.

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Interview

A BrEEDing Ground for skilled individuals same we develop our training programmes and exercises.

2. What is the USP of your institution?

How does it provide a competitive edge to the industry people to be efficiently job oriented?

IAA provides training and conducts research and consultancy services in various areas of the aviation sector, such as Airports and Aviation Management, Safety Regulations, Security and other related areas. Hareendranathan E P, Director, Indian Aviation Academy, in a candid interaction with Upamanyu Borah, talks extensively about the institutions enhanced strength in meeting the growing demand for skilled manpower in the aviation sector.

1. Besides case-based learning and hands-on-training, how does your institution imbibe presentday technological transformations happening abruptly?

Indian Aviation Academy (IAA) has been approved by International Civil Aviation Organization (ICAO) as “Aviation Security Training Centre� to conduct Global Training Programmes on Aviation Security. Whatever is the operational requirement at an airport; we access that and create courses based on those requirements. For any technological development which is happening at the airport, we parallelly develop training programmes at our training centre. For instance, if Airports Authority of India launches any developmental programme, we will be looking at what would be the training requirements to keep in pace with those programmes, and around the

78 CargoConnect - acaai 2018

IAA was formed as an autonomous body for augmenting the training activities in the Civil Aviation Sector and the participating organisations are Bureau of Civil Aviation Security (BCAS), Director General of Civil Aviation (DGCA) and Airports Authority of India (AAI). We have the support of the leading bodies in the industry for airport operations, airport security and aviation safety. We are able to tap this potential and create ideal training programmes; the ICAO course developers who are capable of structuring and delivering the curriculum.

3. In today’s era of entrepreneurial bubble in the country, how is the Indian Aviation Industry building an image worth sought after in terms of employment opportunities?

Aviation Industry facilitates jobs in many areas, such as retail, a crucial area in airport operations. Moreover, Airports Authority of India has been reaching out to youngsters by conducting start-up programmes, giving out the problems and coming out with innovative solutions to those issues. Some of the initiatives were ongoing with the traditional approach, but now we have adopted a modern approach with incorporating technology to boost up the entirety. Not to forget, the aviation industry is also working to develop cleaner sustainable alternative fuels, as well as deploying renewable energy at airports, creating new and innovative opportunities for budding engineers and conservationists.

4. Are you planning to come up with any new course or initiatives in IAA or any expansion plans in terms of improving infrastructure of the institution?

Definitely, we are planning to roll out a number of new programmes. We are quite close to becoming an authorised center for

International Air Transport Association (IATA) & Airports Council International (ACI), which will help facilitate world standard training programmes in our institute. We are also planning to develop more training programmes targeted to the stakeholders so that they get perfectly oriented towards the aviation industry and its dynamics.

Talking about infrastructure, we have recently shifted to our world class facility.

We have sufficient classroom space available along with the latest course delivery technology. Nonetheless, whenever we fill the requirement we might come up with more new centers.

5. Please tell us about the emerging careers in field of aviation which shall create a different impact in the times to come.

The way the airports are operating is definitely changing. Many new technological practices are emerging within the airport operations, whether terminal or cargo, and it is necessary that people get adapted to it. There is also a need for the industry to develop in the market. If an airport wants to hire any services, the trained manpower should be available with the agencies. As such, there are ample openings coming up in different ways, be it operations, engineering or maintenance, and also data analytics.

6. What are the initiatives taken by Indian Aviation Academy in terms of providing world-class capabilities and facilities in research, test and validation, and education?

With regard to research, test and validation, we are collaborating with volunteering institutions in identifying areas- the impact of technology penetration, customer satisfaction and its dimensions, environmental impact and risk assessment, and a few more. These compulsory evaluations apply to different phases of aviation management activities (operations, plans, programmes, projects and /or existing production or services) and will cater to the decision making processes.

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Interview

“India is being looked up as a powerful market in the world” manpower and infrastructure. Now, the time has come when only those organisations are going to survive and succeed this economic change especially in the logistics sector which are growing at very fast pace. Air cargo has become more transparent and time-sensitive than ever before.

2. Do you think Indian air cargo industry is ready to deliver excellent services to its customers?

“Seeking zero exemption on Goods & Service Tax on freight from the Indian government was a tough fight,” says Sunil Arora, Vice President, ACAAI and Managing Director, Delta Air Freight Services Pvt Ltd. In an exclusive interview with Ritika Arora Bhola, the veteran freight forwarder shares how 18 per cent GST on freight led to serious cash flow problems for middle and small-scale forwarders. He also discusses about the forthcoming annual ACAAI convention, importance of delivering excellent services to customers, logistics industry post GST, and the latest trends and innovations.

1.

Please justify the theme of 44th edition of ACAAI convention – AirBorne Cargo – Delivering Excellence.

Apart from discussing service factors, infrastructure, facilitation and regulators, discourse on functions of cargo industry and its excellence in delivery all around needs to be dealt with. For promising good service delivery to the customers, you have to utilise technology, upgrade your systems and knowledge. You have to spend on

80 CargoConnect - acaai 2018

At the pace with which we are moving ahead, it would happen. Few years back, the focus of government was mainly on the passenger side but over the past few years I have seen a dramatic change. The ministry of civil aviation has dedicated department and team of people who are looking after cargo to improve air cargo logistics. Recently, the government has launched integrated web-based National Air Cargo Community System – through which the entire country’s logistics scenario will be on one platform.

Our airports are completely automated; paperless transactions, digitisation and standardisation are present. Even today, custom department is a body which supports freight forwarders unlike earlier. Now, supply chain management is taken very seriously. Also, the industry has been granted the ‘Industry Status.’ We have connectivity all over India, international cargo is growing, domestic connectivity is witnessing a boom – airports are well-equipped, domestic airports have in-design warehouses for air cargo facilities. We are being looked up as powerful markets in the world.

3. Please tell us about the latest developments and innovations that you have observed in the last few years?

Firstly, I feel the green field airports have taken the lead as they have introduced new software, equipment and technology. The process management system has improved greatly. We have also been studying base in bringing in handling SOPs. Today, automation has replaced manual processes.

Custom departments are coming up with absolute paperless programs. Also, to go online, you need to upgrade your own office infrastructure and hire literate manpower.

Additionally, a team has been formed to come up with transhipment SOPs, on all - India level which will help us have a micro view of our logistics industry. AAI has changed its own dimension with ‘I Class’ coming in and has become more innovative and aggressive.

The world is looking upon Chennai and Kolkata airports for cargo transhipment. Also, talks on block chain technology, which came in from the west, are in progress in India.

4. How has Indian air cargo industry changed post GST? We had been demanding zero exemption on GST from the government and it was a very difficult fight for us. We reached out to ministry, board of representatives and other parties involved. Earlier, there was a zero GST regime, zero service tax on the freight but, ever since the GST came, our business suffered, 18 per cent GST on the freight had led to serious cash flow problems. But, thankfully, our demands have been met. GST has been exempted but only till September 30, 2018. However, we are hopeful the government will extend it further or exempt it forever.

5. As a freight forwarder, what are your current projects and expansion plans?

As far as expansion plans are concerned, we are focusing on upgrading ourselves with new plans and programs introduced by the ministry of civil aviation. The Indian logistics industry has changed for medium and small-scale freight forwarders. Today, it has become credit-based industry.

Money flow or keeping money on credit in the market has become a challenge for them. Also, keeping in pace with delivering excellence to our customers there’s major need to invest in infrastructure and manpower which is still a challenge for us.

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report

Air cargo, crucial enabler of the global economy Air transport is vital for manufacture’s trade, particularly trade in components which is a major part of cross border trade today. IATA forecasts a rise in cargo carried to 62.5 million tonnes in 2018 (+4.5 per cent on the 59.9 million tonnes in 2017) representing less than 1 per cent of world trade by volume, but over 35 per cent by value. The value of goods carried by airlines is expected to exceed $6.2 trillion in 2018, representing 7.4 per cent of world GDP. Air cargo is essential to many facets of modern life.

Moving perishable goods from one side of the world to the other would not be possible without air transport. The pharmaceutical industry relies on air transport for its speed and efficiency in transporting high-value, time and

temperature sensitive cargo, particularly vaccines. USD 13.4 billion is spent worldwide on temperature-controlled biopharma logistics. By 2021, it is estimated that this will rise to USD16.6 billion.

35%

global trade by

value

In today’s world, carriage of live animals by air is considered the most humane and expedient method of transport over long distances. Most people have personal electronic devices that were

bui lt usi ng a globa l supply cha i n linked by air. Amazon, Alibaba, eBay and other e-commerce companies rely on the express delivery services made possible by aviation to get those devices, and so much more, to their customers.

Transport of letters decreased from 340 to 328 billion letters globally, whereas the number of postal parcels grew from 6.7 to 7.4 billion. The best example is China’s famous “Single’s day” where in just one day, online shoppers bought goods worth USD 17.8 billion, representing 657 million packages, and air transport plays an essential role in their delivery. In 2016, online retail sales only represented 7.6per cent of global sales, which shows a huge potential for growth in the years to come.

(Source: Taken from IATA Cargo Strategy 2018)

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report

demand for air cargo still strong, as yields continue to rise The cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields. Volumes are expected to grow by 4.5 per cent in 2018 (down from the 9.3 per cent growth in 2017).

The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes expand twice the pace of the expansion in world trade (4.3 per cent). Cargo yields are expected to improve by 4.0 per cent in 2018 (slower than the 5.0 per cent in 2017). While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate

of expansion of world trade in 2018.

Cargo revenues will continue to do well in 2018, reaching $59.2 billion (up 8.6 per cent from 2017 revenues of $54.5 billion).

+9.3% volumes growth in 2017 compared to 2016 (Source: Taken from IATA Cargo Strategy 2018)

APPOINTMENTS Harrison Park appointed MD of UPS Korea

Csafe Global appoints Jeff Pepperworth as new CEO

Saudia Cargo names Omar Hariri as new CEO Saudi Airlines Cargo has roped in Omar Hariri as its new chief executive officer.

As the new CEO, Hariri will lead the company and strengthen its current position in accordance with the transformation strategy which took into account, the development of all services provided, the promotion of performance and production. In addition, he will help strengthen the aspects of security and safety in all stations and facilities to meet the international quality standards.

UPS Korea, a subsidiary of UPS recently appointed Harrison Park as its new managing director.

Park has been mandated to lead a team of over 500 employees, with one of the world’s busiest transport hubs, Incheon Airport. He will oversee the overall express delivery and logistics operations of UPS Korea and will report to KK Leung, president, North Asia District, UPS Asia Pacific. Park has been associated with UPS since last 22 years, and has held diverse positions.

Leading cold chain packaging solutions provider, CSafe Global recently appointed Jeff Pepperworth as its new chief executive officer. A veteran healthcare and supply chain professional with decades of leadership, Pepperworth has served in the past as president of the healthcare division of Inmar Inc, a leading provider of technology-driven pharmacy returns management, and 3rd party pharmacy management solutions.

Dorothea Boxberg is the new CCO of Lufthansa Cargo

Alexis von Hoensbroech named CEO of Austrian Airlines

Lufthansa Cargo has appointed Dorothea von Boxberg as its new executive board member product and sales (chief commercial officer), from August 1.

As Lufthansa Cargo’s CCO, Boxberg will be handling sales, revenue management, pricing, network planning and sales management, globally.

Boxberg is currently with Lufthansa Cargo as vice president global sales management.

Alexis von Hoensbroech, who is currently a member of the executive board and chief commercial officer (CCO) of Lufthansa Cargo, has been appointed as the new CEO and chairman of the management board of Austrian Airlines, from August 1.

Hoensbroech commenced his career in 1999 with the Boston Consulting Group in Munich and Tokyo.

Later, he joined as CCO and member of the executive board of Lufthansa Cargo.

Oman Air, the national carrier of the Sultanate of Oman, has recently appointed Paul Starrs as its new chief commercial officer.

Starrs brings with him several years of experience in the aviation industry.

He will mainly focus on developing a comprehensive and sustainable plan to improve Oman Air’s commercial operations.

Earlier, Starrs was employed with Emirates as senior vice president global sales, distribution and ancillary products.

Ralf Garlichs will join Siemens Postal as COO

Robert van de Weg rejoins Volga-Dnepr Group

Allcargo’s Int’l Arm Hires Rene Wernli as India CEO

Ralf Garlichs will be joining Siemens Postal, Parcel & Airport Logistics GmbH as Chief Operating Officer (COO), from July 1. He will also be a part of the executive managing board of the company.

Garlichs will be responsible to oversee the overall operational and technical functions of all units, worldwide, improving its operational performance.

Robert van de Weg has been roped in as the vice president for sales and marketing to strengthen VolgaDnepr’s global commercial activities.

In his new role, he will embrace the commercial activities of all the Group’s airlines - AirBridgeCargo Airlines, VolgaDnepr Airlines and Atran Airlines, with responsibility to strengthen and develop the Group’s ‘cargo supermarket’ strategy.

Allcargo Logistics’ fully owned international subsidiary ECU Worldwide announced the appointment of Rene Wernli as the regional CEO for the India, Indian subcontinent (ISC).

Wernli will be based in Dubai and support ECU’s Global Management Team in building a stronger product management function across all product categories.

84 CargoConnect - acaai 2018

Oman Air appoints Paul Starrs as new CCO

upcoming events WERC National Conference The Warehousing Education and Resource Council (WERC)’s 41st annual conference to be held from May 6 - 9, 2018, in Charlotte, North Carolina. The conference will provide an excellent opportunity to the logistics industry professionals to learn more about the processes involved in warehousing.

To know more visit www.wercconference.org APPARELCONNECT 2018 One day conference scheduled on May 17, 2018, to be held at Shangri-La’s Eros Hotel in New Delhi. Knowledge leaders of the apparel logistics industry will share their views on the ways of building a seamless apparel supply chain.

To know more visit www.apparelconnect.in

Gartner Supply Chain Executive Conference Four-day conference to be held from May 14 - 17, 2018, in Phoenix, Arizona. Geared towards innovation and advances in the supply chain industry, the event will offer sessions with industry analysts, where you can learn about the latest technologies and related dynamics.

To know more visit www.gartner.com

3PL & Supply Chain Summit Three-day conference to be held from June 5 - 7, 2018, at the Westin Peachtree Plaza in Atlanta. The conference will focus on e-commerce, high and low-tech solutions, urban, suburban, and rural delivery, and keeping pace with consumers.

To know more visit www.events.eft.com India Warehousing Show 2018 Three-day event from June 21 - 23, 2018, at Pragati Maidan in New Delhi. This 8th edition of the show is expected to witness a huge footfall from the Logistics and Transportation industry of India.

To know more visit www.indiawarehousingshow.com

DURABLEsCONNECT 2018 One day conference scheduled on July 26, 2018, to be held at Shangri-La’s Eros Hotel in New Delhi. Knowledge leaders of the durables logistics industry will share their insights on the costs and performance of the Indian consumer durables industry, based on extensive interactions with supply chain and logistics heads.

To know more visit www.apparelconnect.in Maritime Nation India Three-day event from September 20 - 22, 2018, at CIDCO Exhibition Centre in Mumbai. A unique global platform for exhibitors to demonstrate their expertise and secure business opportunities in the Indian Maritime Sector.

To know more visit www.maritime-world.com/mni2018 FIATA World Congress Four-day world level conference to take place at the Hotel Pullman New Delhi Aerocity in New Delhi, from September 26 - 29, 2018. The conference will offer logistics industry leaders from around the globe remarkable insights to industry challenges with sustainable solutions.

To know more visit www.fiata2018.org acaai 2018 - CargoConnect

85

UP and CLOSE

“India needs simplified transshipment regulations” our countries will grow in the coming years.

Abu Dhabi is the capital of the United Arab Emirates with a diverse, multicultural society and a strong economy. The focus on exports, trade, commerce and business and its oil revenues have made Abu Dhabi economically prosperous and an apt choice for ACAAI’s convention 2018.

2) How would Indian air cargo industry

evolve on the world map? What steps should the industry take to come at par with its global counterparts?

ACAAI Convention 2018 is around the corner and this time it is all set to be hosted in Dubai. T A Varghese, President, ACAAI, in an exclusive interview with Charu Pandey, talks about his experience and priorities as ACAAI’s president and also shares his views on the future of Indian Air Cargo industry .

1) Please tell us about the motive behind choosing Abu Dhabi as the venue for ACAAI 2018. How do you see India’s trade relation with U.A.E in the coming years?

ACAAI has held a number of Conventions in Asia in the last few years at overseas venues such as Colombo, Kuala Lumpur, Bangkok, and Chiang Mai, to name a few. During this period, we held only one Convention in the Middle East Region at Dubai in 2003. UAE is an important partner for India. Government of India is enhancing the bilateral relationship with UAE in all respects and it is expected that the political and trade relations between

86 CargoConnect - acaai 2018

The size and scale of the Indian air cargo industry is relatively small in comparison to the developed countries. There are several restrictive factors which inhibit this industry in India. Government regulations, infrastructure constraints, capacity limitations are a few factors. The remedies for changing this situation are not in the hands of the industry, but with external stakeholders. The simplification of Customs regulations, development of infrastructure at airports, increase in cargo capacity by airlines are some of the measures which are required to enable the Indian air cargo industry to grow exponentially and achieve near parity with the global players.

3) Do you think infrastructure of the Indian airports is ready to cater the exponential growth of the air cargo sector?

It is a well-known fact that the infrastructure at Indian airports is inadequate to meet the growing requirements of the air freight industry. Air cargo witnessed 15 per cent growth in 2017 and is expected to grow by 20 per cent in 2018. The development of infrastructure at airports in India is a time-consuming and capital-intensive process. The projected growth of passenger and cargo traffic in India during the next decade urgently necessitates the adoption of PPP models to accelerate the pace and scale of the development of airports across the country to meet the anticipated future demand.

4) What opportunities are available in domestic and international air cargo which has not been explored yet?

The domestic air cargo market in India has huge potential. Currently, many Tier II and III cities are underserved as far as air cargo services are concerned. This is due to the fact that airports in these cities are not modern and lack required infrastructure.

This situation is likely to be remedied by the provisions in the National Civil Aviation Policy unveiled by the Government in 2016 for the development of Greenfield and Brownfield airports as well as the up gradation of the existing airports in Tier II and III cities. This will facilitate the uplift of goods directly from such airports which are in close proximity to manufacturing hubs.

As far as international cargo is concerned, it is time to explore new markets in regions which have not yet been fully tapped.

5) You are associated with ACAAI for a long time now, please share your experience with us.

My long association with ACAAI in various capacities has been very fulfilling. I have learned a great deal about our industry, and ways and means to find solutions to the various problems which crop up from time to time. It has been a challenging but satisfying journey.

6) What

would be your priorities as president of ACAAI? What challenges you foresee?

My priorities are to expand the membership base of ACAAI by reaching out to all eligible Indian air freight forwarders. I shall endeavour to the utmost to facilitate the ease of doing business for our industry through interaction with Ministries, Govt Departments, regulatory authorities, airlines, etc. with the objective of ironing out the obstacles and hindrances for the smooth conduct of business.We shall also network with other trade associations to achieve our common objectives through teamwork.