Cargo Connect August 2016

www.surecommedia.in

VOL VII ISSUE IX august 2016 `20

Postal Registration No.: DL (S)-01/3372/2016-18 Postal at IPMBC on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

SPECIAL FEATURE

Sweep out Pollution with Logistics Parks

The Last Mile’s Lasting Impact

Consolidation: Trump Card for Growth of 3PLs

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CRWC keeps the trust.

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The Gr owth of a nation needs someone whose presence is everywhere.

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CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED

Contents

Volume VII • Issue IX • AUGUST 2016

Editor and Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Roselin Kiro Special Correspondent Joydeep Banik Sana Husain

12

24 COVER STORY

To Add More Feathers On Freight Forwarder’s Cap

SPECIAL FEATURE

Sweep Out Pollution With Logistics Parks

FEATURE

INTERVIEW Sushil Gupta, Chairman, Richa Industries Limited ...........................................................58 Stéphane Descarpentries, Director, Strategic Projects and Director, Operations Asia, FM Logistic ...................................................61 Animesh Kumar, Founder Director & CEO, PDP Shipping and Projects Ltd ..............................62 The Last Mile’s Lasting Impact .....41

Tony Tyler, Director General, IATA ..................63 S.Xavier Britto, Chairman, Kerry Indev Logistics ........................................................64 S P Sahu, Commissioner (Single Window), CBEC, Department of Revenue, Ministry of Finance ...65

shippers speak .....................70 GUEST COLUMN ..................66-68 Consolidation: Trump Card For Growth of 3PLs Logistics ...............50

appointments .......................82 EVENTS ................................85-89

NEWS ...................................6-10 & 72-80

PEOPLE CONNECT

We bring you a wide spectrum of updates that will keep you informed about the industry’s plans, performance and initiatives.

Ramana Adivishnu, Senior General Manager, Glovis India Private Limited ..........90

TOTAL PAGES: 92 (inclusive of cover)

Feature Writer Tariq Ahmed Nikhil Mishra Nicin Varghese Director Marketing Ajeet Kumar Manager Marketing Niti Chauhan Marketing Executive Chetan Pathak Rajesh Basu Asad Mohammad Marketing Support Sheetal Singh Administration Vipin Marwah Lavish Thakur Designer & Visualiser Shaique Ahmad 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, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014.

Editor–Smiti Suri

SURECOM MEDIA

6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 9711383365, 9810962016 Email: cargoconnect@gmail.com info@surecommedia.in Website: surecommedia.in

news

Cabinet approves the construction of Enayam Port

Railways promote container traffic

The Union Cabinet has given its inprinciple nod for the construction of a major port at Enayam near Kanyakumari at an estimated cost of `27,000 cr. Enayam emerged the best option on various parameters such as ease of construction, expansion, connectivity and environmental issues. Its proximity to mainline shipping routes (deviation is just about 15 nautical miles) and availability of a natural draft of over 16 metres makes it the best bet for transshipment business.

The development of Port with deep drafted container terminals would facilitate direct shipment of Indian containers to overseas destinations, thereby, avoiding transshipment through Colombo and Singapore Ports.

The Railways intends to focus on containerized traffic and will allow more commodities to be carried in containers, barring coal and minerals, said Ambrish Kumar Gupta, Additional Member Traffic, Railway Board, in a conference organized by Global Knowledge Forum and the Railway Ministry recently. Railway sheds will soon be permitted to handle container traffic wherever feasible, routes limiting access to ports will be strengthened, and parcel traffic will also be opened to container train operators.

India makes a long jump in Logistics Performance Index In a recently released World Bank report of Logistics Performance Index (LPI), India ranked at the 35th position among 160 countries/ranks.

Reflecting a better movement of the goods inside the country, the rank has also reflected the economic prosperity and the ease of doing business in India. India’s improved performance in the report released by World Bank will also boost programmes such as Make in India.

Indian Railways launched car freight train “Auto Express” Customs Clearance, International Freight Forwarding

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Targeting 25 per cent rail share in automobile traffic, railways on Wednesday launched Auto Express from Gurgaon to Nidvanda to ensure faster delivery of cargo. “Like our ever-growing population, auto population is also increasing on a faster rate. In fact auto sector is a fastest growing economy. If railways can tap it then it will be major source of revenue,” Railway Minister Suresh Prabhu said after launching the auto car freight train service between Gurgaon and Nidvanda (Bangalore).

At present about 2000 cars move per month between Gurgaon and Nidavanda. With launch of the time tabled run of the freight train for automobile traffic, the volume will go up and the number of trips are likely to increase resulting transportation of about 6000 cars a month. Railway Board Member (Traffic) Mohd Jamshed said railways has earlier launched time-tabled Cargo Express and now Auto Express to ensure faster movement of traffic. “These special trains have wagons to run 100 km per hour. So the travel duration has decreased from 70 hours to 57 hours.”

news

Iata replaces existing cargo agency programme with a new cargo programme The International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) have signed an agreement to implement the IATA-FIATA Air Cargo Programme (IFACP) to replace the existing IATA Cargo Agency Programme.

With the establishment of a global IATA-FIATA Governance Board (IFGB), the industry will be better equipped to achieve key goals including: e-cargo priorities of greater efficiency and shared values, clarification of supply chain liability, improved compliance with safety and security standards through a more coordinated and concerted industry approach. The phased rollout of IFACP will begin in early 2017 with Canada as the pilot country. It is anticipated that full global rollout will be completed by end of 2018.

India doubles down on connecting ports to rail network India is prioritizing dozens of last mile port-rail connectivity projects to speed up cargo evacuation and help address chronic landside congestion problems at its ports. The Ministry of Shipping said more than 20,000 crores ($3 billion) will be spent on 22 port-rail connectivity projects to be implemented by the Indian Port Rail Corporation. The projects are part of the Sagar Mala port-led development program focused on capacity expansion and modernization of coastal ports. Three port-rail projects are already underway at the ports of Vishakhapatnam and Chennai with 19 in the pipeline and a further six under consideration by IPRCL. “These projects will enhance port connectivity to the hinterland and help in reducing logistics cost and time for cargo movement making Indian trade more competitive,” the ministry said in a statement. One of the highest profile projects is a heavy haul rail line for the transport of thermal coal from mines in Odisha state to Paradip port, which will facilitate the distribution of coal by coastal shipping services to power plants in the south of the subcontinent. A special purpose vehicle of IPRCL has been established to develop the rail link, which will also serve the industrial clusters of Jharsuguda-Sambalpur, Angul-TalcherDhenkanal, Kalinganagar Steel Hub, as well as the Paradip port industrial zone. In addition to improving landside connectivity, India is undertaking a number of technology-based projects to boost productivity and reduce congestion at its ports.

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news

NHAI connects export hubs with ports

Govt plans incentive to shift cargo to water

The National Highways Authority of India (NHAI) is identifying highway projects connecting export hubs with port cities, its chairman Raghav Chandra said on Tuesday.

“We are looking at creating an economic bridge of projects to identify roads connecting export markets Raghav Chandra with ports or with other important economic destinations,” Chandra said while speaking at an event organised by PHD Chamber of Commerce and Industry .

The government has already identified industrial corridor DelhiMumbai, Amritsar-Kolkata, Chennai-Visakhapatnam and ChennaiBengaluru to connect the hinterland with the ports.

The freight corridor which passes along the corridor will act as a conveyor belt, as per the plan. NHAI will bid out more than 10,000 km of highway projects this year, Chandra added. In the next three years, 30,000 km of road projects will be commissioned.

Chandra said NHAI was also targeting greenfield expressway projects on Delhi-Jaipur, Lucknow-Kanpur, Hyderabad-Bengaluru and Delhi-Jammu stretches.

To encourage shippers to shift cargo to waterways and coastal shipping, the government plans to provide an incentive of `1 per km for a tonne of cargo. “To encourage modal shift of cargo to coastal shipping and Inland Waterways Transportation, the government is planning to offer financial incentive to shippers who switch to waterways from roads and rails for movement of cargo,” an official who did not want to be named told PTI. The incentive is planned at Re.1 per tonne per km which will come out to about “`290 crore for 2.5 years,” the official said.Initially the government plans including nine commodities that include food grain, automobile, cement and marble. Sources said a note on the incentive scheme would soon be sent to the Cabinet for its nod. Under the ambitious Sagarmala project of the government that aims at port-led development of coastal area, the government has already announced that increasing the water transport share could result in an annual saving of `30,000 to `40,000 crore. When contacted, Additional Secretary, Shipping Alok Srivastava said the government was working hard to shift the cargo to waterways as not only it is an environment-friendly mode of transportation but also economises the cost.

Increase in cargo shipping share

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The government is planning to increase the share of coastal shipping to 10 per cent in the modal cargo mix by 2020, which will reduce burden on rails and roads.

The share of waterways transportation mode in the modal cargo mix is about 7 per cent now.

“The government envisions increasing the share of coastal shipping in modal cargo mix to 10 per cent by 2020 from the current share so as to reduce the over-dependence on road and rail sectors for domestic cargo tranportation,” Minister of State for Shipping Pon Radhakrishnan told Rajya Sabha in a written reply today.

Radhakrishnan said the government has also given inprinciple approval to setting up of four new ports at Colachal in Tamil Nadu, Sagar in West Bengal, Durgarajapatnam in Andhra Pradesh and Vadhawan in Maharashtra.

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SPECIAL feature

Sweep out Pollution with Logistics Parks An announcement of humongous logistics parks projects along e-ways near Delhi will revamp the face of logistics industry in India. Sana Husain gathers input from the industry experts and provides clarity on the opportunities and challenges that will spring up, while everyone is gearing up to take this advanced course of action

12 CargoConnect - august 2016

Logistics through innovation, dedication & technology...

Administration Building

Infrastructure & Advantages Customs notified area.

Customs bonded warehouse.

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Covered warehouse facilities of over 4,50,000 sq. ft. under one roof with modern racking systems which can house more than 40,000 pallet spaces.

3PL facilities.

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Robust fleet of company owned vehicles, monitored & tracked electronically.

24/7 operations with CCTV monitoring.

Automobile logistics services.

Spread over 40 acres of land.

Over 6000 TUEs per month, i.e. 72,000 TUEs per annum.

CFS owned equipment: 5 Top Lifter, 80 Trailers, 30 Forklift, 2 Empty Handles, 1 Crane.

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SPECIAL feature

S

eeing the distressing figures of pollution in Delhi, Road Transport, Highways and Shipping Minister, Nitin Gadkari recently informed that while the two peripheral expressways currently under construction will take nearly 50 per cent of vehicles off Delhi roads, there is a plan to set up ‘logistics’ parks along these corridors so that warehouses and godowns located inside the city can move out. This way, entry of thousands of heavily loaded polluting trucks

Mumbai Suburbs

the resultant dust will reduce. The cost of projects will come down too. Quite a few of these 250 yards planned by the government will come up in the NCR. While stating that the AAP government was cooperating to deal with congestion and pollution crisis, the minister said his ministry’s budget would be used to improve and build new roads that would make travel better in Delhi. “Suo motu I have taken up building eight elevated corridors giving direct connectivity from Ring Road to the two peripheral expressways,” Gadkari said.

Logistics Park

10 ton truck

Mumbai

10 ton 30 ton truck

Delhi

truck

Delhi

Thane

Bhavana Vishwanath, CMD, Astral Exim International says, “I personally feel that it’ll enhance the business. Maybe one can have temporary two-day stock and for long term it can be kept at 50-100 km outside Delh, because, Delhi’s population exceeds 32 crores.

Hence, one can’t stock much here. But, the distance between LSP and end-user won’t increase, which doesn’t really matter. In the longer run, to keep Delhi clean, warehouses and lot of other things will have to be ultimately moved out.”

However, Sandeep Chatterjee, Associate

Gurgaon Bigger trucks can operate between major connecting cities, reduce logistics cost

Railways Noida

JNPT

Locations for logistics parks: Delhi-NCR, Mumbai, North & South Gujarat, Hyderabad, North & South Punjab, Jaipur, Kandla, Bangalore, Pune, Vijayawada, Cochin, Chennai & Nagpur into Delhi everyday could end in the next couple of years.

Gadkari said, “Road work involving around `30,000 crore is underway around Delhi. Completion of these will improve traffic flow. I have already discussed the issue of logistics hubs with Chief Minister Arvind Kejriwal. Once we have these hubs, godowns will move out and number of trucks entering Delhi will reduce. There will be less traffic and pollution.”

Calling it a win-win proposition for all, he pointed out that since construction dust was a major pollutant, there would be a number of yards for making pre-cast concrete slabs.

Once these are used in major infrastructure projects, the need for on-site mixing and

14 CargoConnect - august 2016

Multi-modal logistics parks to connect 15 cities with highest freight movement

Moreover, his ministry has mooted a plan to make the entire stretch from Gyarah Murti to Gurgaon signal free. “The defence ministry has agreed to provide necessary clearances and land for widening and decongesting Dhaula Kuan stretch,” Gadkari said. This is one of the most congested stretches and is used for travelling to the domestic and international airports.

Identif ying New Business Relationships As logistics parks will be set up along e-ways, the physical distance and time between the Logistics Service Provider (LSP) and end-user is bound to increase and perhaps strengthen the business relationship between them.

Smaller trucks will transport goods from the logistics parks to nearby cities

Director, KPMG makes a slightly different argument, “In a scenario where a company has its own logistics park, it is practically same as its own godown, where only the scale is higher. But in a scenario where there are multiple parties within the same logistics park, cargo safety will be an issue as the safety will be ascertained by a third party and not by the company. If the same provider provides bigger and smaller vehicles, there will be minimum problems. But in case these are two different parties, there is definitely going to be an increase in the physical distance between LSPs and end-users as an additional stakeholder in the supply chain, which would mean more coordination.”

R Jayakumar, Chairman, Jayem Logistics

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The Land Acquisition Debate The experts opine on the impact of land acquisition for the road projects, following the models that Andhra Pradesh and Gujarat had adopted, i.e. to acquire and return 40 per cent to owners after developing it. Well, Gadkari calls it feasible, but will it really be?

Pradeep Singhal,

National President, GIR Movers

If a private builder goes, he can acquire land and build on it. But, if government goes and acquires, they’ll have to give four times the value and then there are many other things linked with it.

Land acquisition is the # 1 issue.

Unless a solution is found, no project can move forward.

Sandeep Chatterjee,

Associate Director, KPMG

How do we decide which 40 per cent? The idea looks a bit utopian at this point of time but things need to be worked out quite meticulously.

R. Jayakumar,

Chairman, Jayem Logistics

agrees that logistics parks will definitely increase the distance and time between LSP and end-users. “But, they will surely reduce the cost for consumers, when all the variables are considered,” says Raman.

On the other hand, Viren Thakkar, Owner, Logistics Park Pvt Ltd believes that physical distances between LSPs and end-users will shrink and definitely with scientific time management, investments in value chain will come down.

What Does ‘Cheap’ Mean Here?

Minister of Road Transport and Highways of India, Nitin Gadkari, recently said that renting logistics parks’ space would be cheaper for traders. Pradeep Singhal, National President, GIR Movers says, “Yes, it will prove to be cheaper for traders.

With the coming of GST Bill in the next

16 CargoConnect - august 2016

year or so, we have to build big warehouses; the way the industry is moving, the traders are outsourcing their warehousing activity to logistics player. But, the main constraint in the city is the costly process of maintaining logistics connectivity. When we move it outside the city, there’ll be more logistics connectivity, being considerably cheaper and there’ll be big warehouses to do value-addition. All these benefits will be passed onto the customers.” Sharing a similar notion, Vishwanath says, “Yes, definitely, if the business is good coupled with a good business module, then for endusers, it’ll definitely be cheap.”

Chatterjee adding a new dimension, says, “In India, renting a space works out cheaper than owning it. So, though it will work out to be cheaper, there will be a potential loss to the government exchequer as bigger trucks will not enter the cities,

SPECIAL feature With logistics parks, the distance between LSP and enduser won't increase and which doesn't really matter. In the longer run, to keep Delhi clean, the warehouses and lot of other things will have to be ultimately moved out."

Bhavana CMD, Astral Exim International

Cutting Clutter Plan to decongest Delhi roads and reduce pollution

Panipat

Eastern Peripheral Expressway (EPE)

Yards for precast concrete slabs Some of the precast concrete yards to be located around Delhi to reduce dust pollution

EASY ENTRY & EXIT Bahadurgarh

8 elevated Hapur Ring Ghaziabad roads planned, Road Logistics hubs along e-ways Western connecting Dhaula Proposal discussed Peripheral Ring Road Noida Kuan with Delhi govt, Union Expressway with Eastern transport ministry (WPE) Peripheral appointing a consultant Gurgaon Expressway To help shifting warehouses (EPE) & Western Manesar from Delhi to outskirts Faridabad Peripheral Expressway Tender for pilot (WPE) Metrino project to be Yamuna waterway Work for EPE& WPE under way, to take around a year to finish

awarded in June

Work on for widening Delhi-Hapur stretch of NH-24

Decongestion of Dhaula Kuan stretch with defence providing necessary land

and hence, will not be subjected to toll tax.

Also, the terms and conditions of renting logistics parks’ space needs to be evaluated on a holistic basis.”

Jayakumar sees a streak of hope as he says, “Logistics parks in India are still an emerging concept. We hardly have two to three per cent of storage share of logistics parks in India in terms of the overall storage. Renting a space in logistics parks may or may not be a cheaper, but to a consumer, when all cost variables of logistics are added up, the cost may be lower. Yes, we as enterprises will look at investing there.”

The Equation of Plan Viability +Loss=?

The `30,000 crore plan of setting up logistics parks along e-ways aims to reduce 50 per cent of trucks. But, will logistics industry incur any loss by eliminating trucks in the process? If yes, should it have any alternative plans to compensate for the loss? Thakkar answering these questions, says, “Investments in logistics

18 CargoConnect - august 2016

Palla in Haryana to Wazirabad Barrage to become a waterway in 3 months New barrage planned near Kalindi Kunj to maintain draft for navigation

parks will definitely be profitable in longterm. However, elimination of high capacity trucks can be ruled out in near future.”

Singhal adds, “The dealer trucks will go to depots from one park to another. If distribution is required in the city, there’ll be a secondary kind of transport.” Chatterjee includes a different viewpoint, “Some industries like cement where logistics cost is 70 per cent of the total cost of goods sold, were already setting up warehouses closer to the railway stations. While this is a good proposition, the challenge will be in terms of space, as habitations typically crop up closer to railways and roadways. The entire set-up needs to be demolished amicably to set up these parks.

We are not eliminating trucks here. Rather, trucks do not need to enter the cities, thereby reducing congestion. We are shifting to smaller vehicles for movement of goods from the city to the logistics parks. If we look at the cost per ton, it is higher for smaller vehicles. So, operationally, the cost will increase.”

Jayakumar sees good amount of viability in the logistics parks plan, as he compares it with the international scenario. “Such parks are operational in USA/Europe for many decades. We are sure that a feasible model could be created for India . Yes, to some extent long-haul trucking revenue may go down, but short haul within city transportation will multiply. The overall revenue of Road Transportation sector will remain the same or higher. But, there will definitely be a modal shift for revenue, from long-haul to short haul and for the consumer, tangible and intangible benefits will be immense.”

Thakkar adds to the positive angle, “Investment in warehousing and various material handling equipment will be very viable with a break-even within a time period of six years. Once, Goods and Services Tax Bill (GST) is rolled out, many cities across the country located logistically on e-highways will be constantly buzzing with such activities.”

Extra Travel On the Plate For the first two months, users don’t have to pay for toll on KMP expressway. However, later heavy vehicles will have to pay Rs. 4.5 km, just for the stretch and not the entire corridor. Although, they will have to travel 10 km extra just to avoid traffic in Delhi.

Analysing whether it would be a vantage point for the LSPs, Singhal says, “The challenge is that the plan is not controlled by one agency.

There are many agencies involved, such as Central government, state government and local government. The primary objective of the government is to build a socially developing economy through revenue collection. When they pursue the revenue collection path, the government authorities in this system want to milk everybody involved and increase the cost; so much so that it becomes unviable.

If we knew that there’s reasonable cost and

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SPECIAL feature Investment in warehousing and various materialhandling equipments will be very viable with a breakeven within a time period of six years."

Viren Thakkar, Owner, Logistics Park Pvt Ltd

Hassle-free drive to compensate the extra km run and fuel lost, is the immediate need.”

Mapping Theme Cities India’s exports have the potential to rise by 40%, if the logistics cost is brought down to 13-14%, says Nitin Gadkari.

they adhere to it, then the system compliance won’t be unrealistic, which’ll make it viable. If we keep on adding some compliance issues, they keep on taxing people or start collecting some other revenue, thus rendering the plan unviable.”

Vishwanath finds a vantage point for trucks in travelling 10 km extra just to avoid traffic in Delhi. She says, “It’s ok and really good. This type of cargo movement should happen, even if it increases the cost. The safety standards should also be in place, as the human life can be saved very well.”

Chatterjee expresses, “Yes, definitely it is an advantage for the logistics service providers in terms of cost. But, what about the costs of transporting the goods in smaller vehicles from and to the cities? There is a loading/unloading cost which we tend to ignore. Also, availability of the smaller vehicles will be a challenge.”

However, Jayakumar senses an alarming situation and says, “KMP expressway has taken ages to reach its final destination.

Highway authorities and private partners responsible for it have incurred huge losses.

Putting up a toll means a big mess for transportation, leading to wastage of time and sometimes vehicle seizure for no reasons.

20 CargoConnect - august 2016

A series of theme cities have been planned around e-ways to push economic activities.

On this aspect, Singhal says, “Yes, I see potential investments in theme cities here.

Being a new area, where there’ll be all kinds of activities related to modern warehousing, offering connectivity and value addition. It will serve as a good push for the economic activities. Let’s see how it rolls out.”

Chatterjee weighing its pros and cons says, “The idea is good but any city needs careful planning. Infrastructure will be the key in terms of electricity, water and other basic needs. Are we in a position to take this additional load? Yes, potential investments will drive economic growth provided we plan it well. Also, there needs to be an incentive on why people should move here and what does the future promise for them.” Here, although Jayakumar claims that he isn’t into this space, but at the same time he feels that these theme cities are very much required.

A Challenging Long Run The very plan of logistics parks sound ideal and favourable that would provide a fillip to Indian logistics. But, how far it can survive in the longer run? What kind of challenges will prop up in the process?

In terms of challenges, Singhal explains

that the government is controlling other issues, like in this case, it is pollution and revenue collection. Then, in the mode of revenue collection, the whole of this facility where the cost should come out from its user becomes the friction point between user and the government. So, if the cost goes up, definitely people will again see the cost advantage for using KMP expressway.

“We were in the forefront to forward this policy. In the last year’s convention, when Nitin Gadkari, the Transport Minister had attended, there he had announced in response to our request for having logistics parks outside the big cities, especially on KMP in Delhi. There, he agreed and we worked with him on this policy. So, this is the outcome of that moment, which’ll actually help LSPs. But, what I’m afraid is that will the central government run it or Nitin Gadkari’s ministry or the state government,” says Pradeep.

Vishwanath refused to comment on this, as it would require her to study the business plans. On the other hand, Chatterjee offers a logical explanation, “Everything is driven by scale. If more and more companies join the logistics parks, the costs will come down.

The challenge is to convince the companies to be part of the initiative. Also, how the share of rakes will work in case of restricted region movement remains a challenge. What needs to be questioned is that are our roads sufficiently wider to handle this load? In the long run, as long as there is coordination and cooperation among the various stakeholders, this will survive.” Jayakumar also throws light, “The main challenge is in terms of time and cost of setting up. Through right and efficient execution, this will be a facility which can survive and make profit for itself.”

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mismatch in the past and RBI data showing zero growth in funding the road sector from the banking sector till May 2016 posing as hurdles in the implementation of logistics parks’ projects, Singhal nods his approval, “Already, we are at loggerheads with government on this whole issue and the uniform diesel policy has its own set of issues.

We wanted our New Carriers Act, with amendments made in the Motor Vehicles Act. The policy we are raising can act as a hurdle.

So, somebody has to take it forward.

Vishwanath says that the project report should be feasible, for protecting the environment and the local culture. “Roads are for the people, but people aren’t for the roads. So, infrastructure is for the people. There won’t be any problem as it will be done for the protection of human life, for which even travelling extra kilometres can be managed,” he adds.

Answering the same, Chatterjee says that if we really want to maximize the benefits, we have to move fast. The concept has been borrowed from North America and China and hence we need to learn fast from their mistakes as well.

Jayakumar makes a strong point: “KMP is the best example of slow decision and bad approach. For instance, take DEL – JPR highway. GOI has suffered huge losses and the project development companies as well. Yes, many projects have failed. Are the entrepreneurs wrong? Or due to incorrect government policies? Funding errors? Well, a new way is to be found.

Keeping Diesel Out of the Picture Road Transport and Shipping ministry plans to move the automobile sector towards less consumption of diesel. But, is it really

22 CargoConnect - august 2016

possible? How would it impact the logistics industry? Singhal agrees to the statement and says, “They have already driven all the buses and everything else into using CNG. But, there’s no technology as such available for the heavy truck cargo movement. Again, they’ve tried electrical buses, which isn’t suitable for heavy load. For the moving passenger vehicles, alternative fuel has been devised by

`

The 30,000 crore plan of setting up logistics parks along e-ways aims to reduce 50% of trucks. the ministry, where it is doing quite a lot of good work. Hence, automatically it’ll reduce diesel consumption in vehicles.”

Vishwanath rejects the idea, “How can they do that? They do require diesel for operational efficiency. I don’t know how they plan to make such a move. For the same, deep study is required.”

Chatterjee offers a similar argument, “In India, diesel is still cheaper than petrol though it needs more maintenance and pollutes more. Though the diesel variant of vehicles cost more than the petrol variant, if you will travel 70-90 km a day or more, you will prefer a diesel variant. But, if you will travel 20-25 km, you will pick the petrol variant. Though

petrol vehicles are more power-efficient, these can be used only for limited running, as they deliver lesser fuel efficiency, leading to high running expenditure. Diesel variants give better mileage; the difference is even more for bigger vehicles. So, economically this will be resisted by the logistics service providers as it eats away their margins.”

Feeling sceptical, Jayakumar asks, “For heavy vehicles, is there a technology which can help in doing away with diesel? In our opinion, we should focus more on enhancing railway infrastructure, river traffic and in developing costal shipping as alternatives.”

He adds that diesel consumption cannot be reduced in the transportation sector unless we create alternatives.

In Nitin Gadkari’s Eyes As per a June 17 report update, the government is planning to locate logistics parks next to ring road and by-pass roads in an effort to reduce pollution and traffic and facilitate multi-modal transport across the country.

“Unless logistics cost is brought down from its peak of 18 per cent, India’s exports would not be competitive with China whose logistics cost is pegged at 8 per cent. India’s exports have the potential to rise by 40 per cent, if the logistics cost is brought down to 13-14 per cent,” Gadkari said delivering his inaugural address at a recently held conference on Multimodal Logistics. To step up the game, the Minister of Road Transport & Highways and Shipping Nitin Gadkari has also launched the TCI and IIM Calcutta joint study report on the operational efficiency of freight transportation by road in India. The report is based on a study commissioned by the Transport Corporation of India (TCI), of 28 routes in the country over the period 2014-15. Gadkari said that his ministry has taken many steps to facilitate safe, seamless and efficient transportation of people and goods by road.

Final Impression “Packed with world-class amenities and security systems, logistics parks will be far better than big godowns. Let us not compare chalk and cheese assuming both are white objects” says Jayakumar. As few prominent names in the field of logistics such as SIAM, TCI, AITWA evaluate the arena to increase operational efficiency and put their best foot forward in the world, there will be an interesting shift in the years to come, for us to acknowledge, learn and evolve yet again.

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24 CargoConnect - august 2016

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N

d

to Add More Feathers on Freight Forwarder’s Cap

With the changing trends in the logistics industry and especially in the freight forwarding business, freight forwarders need to provide value-added services and embrace innovation in order to keep up with fast-changing global economic and logistics landscapes.With the current scenario of global supply chains across industries and markets, integration of logistics and freight capabilities, coupled with diversification of services is essential for sustainable economic viability. India can witness considerable growth in freight market provided freight companies diversify their business to other logistics segments. In this story the freight forwarding specialists have discussed on how and why freight forwarders need value addition

Roselin Kiro

august 2016 - CargoConnect 25

cover story

T

o match up with the changing trends in the bilateral ties and fluctuating EXIM trade, the freight forwarder’s job is not any easy task as it used to be, simply moving cargo on time from A to B. To survive in this cut throat competition, it is the survival of the fittest. The freight forwarder must integrate their services into the entire supply chain system, making their expertise part of an integrated as a whole. The Indian freight market is rapidly being aided by improved warehousing infrastructure and growth in containerized cargo, which necessitates a robust freight network. Amongst the segments, air and sea freight together contribute maximum to the market in terms of value.

Diversifying the Business In today’s era the role of freight forwarder has further expanded, and they have longabandoned the perception of being mere

Prime Minister Narendra Modi is himself doing the ground job, visiting different nations like Asian countries, US, Europe and the new initiatives like ‘Make in India’, ‘Clean India’ which are phenomenal and have opened up new avenues. agents for the transport industry. Freight plays an important role in the economy of a country, more so in a developing one such

26 CargoConnect - august 2016

EXIM trade

ICEGATE

AEO EDI

as India. As international trade increases, freight forwarding in India received the welldeserved impetus to grow further. Due to the robust and steady economic growth of India, the freight forwarding sector has witnessed a significant growth over the last decade.

Aided by the development of infrastructure in India, freight forwarding companies, whether domestic or foreign, have become extremely competitive and provide quality service to their clients. According to Amit Dawar, Director–Value Added Services, DHL Global Forwarding “India can witness considerable growth in the freight market provided freight companies diversify their business to other logistics segments. Generally MNC Freight Forwarders (FFs) are reluctant to provide Customs Brokerage services due to it being laborious and the cost of operations being high with several operational challenges on ground. These issues need to be addressed, and the process simplified in order that FFs provide end to end services. FFs are not allowed designated exclusive bonded areas to keep their freight, as is the global practice.

The current system forces all FFs to only use appointed custodians which is not market friendly and creates a monopolistic situation which eventually leads to escalated costs of operation.” Freight in India has grown leaps and bounds. The freight transportation is expected to reach over 900 billion tons by 2020 which will be carried by 8 million commercial vehicles on the road. Talking about providing end-to-end solutions under one roof, Oliver Bohm, CEO, Schenker India Private limited says,” Companies like ours are more focussed on end-to-end solutions i.e. value added services with everything under one roof, forward and backward integration and 4 and 5 PL services. The competency and

inside Diversifying the Business Improved Customs and Excise Policies Robust Freight Network Economic and Political Influence in Freight Forwarding Industry Infrastructure Concerns

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Martin Roos, Commercial Director, Indian Subcontinent, DSV Air & Sea Pvt Ltd Trust is a key factor in expanding your network. Trust in your own abilities and trust in the partners you chose to work with. Should you buy, start up greenfield or go the joint venture route, all depends on who you trust and to what extent, plus of course a matter of the available funding at hand.

USP of the service provider will be determined

by IT infrastructure and capabilities along with in house cost modelling which plays a vital role as a determining factor for the growth and expansion of market.” On the other, Martin Roos, Commercial Director, Indian Subcontinent, DSV Air & Sea Pvt Ltd has a different tale to tell. He says, “At DSV, we believe in excelling within what we are good at, which is why we will continue to focus on our core competencies: Global Transport and Logistics. We can try to make the logistics experience simpler and easier for our clients, but the biggest milestones and achievements will have to come from the legislators. We are as always happy to provide our input and advice locally as well as globally, just as we constantly drive initiatives towards reducing our carbon footprint and CO2 emissions.” We cannot deny the fact that today the Indian freight market is rapidly being aided by improved warehousing infrastructure, technology and growth in containerised cargo, which necessitates a robust freight network. No doubt there are changes occurring in the freight forwarding business and the freight forwarders are trying

28 CargoConnect - august 2016

Higher dwell time of import (100 hrs), export (48hrs) and transshipment cargo (48hrs) at Indian airports is a major bottleneck

their hands out in expanding their business but there is lot more to explore. Harmonising on the same tune Manpreet Singh Dahri, Manager Sales and Business Development, Namaste India Aviation Pvt Ltd says, “Today’s freight logistics providers are responsible for an entire array of services in the supply chain. Freight LPS’ can undertake various logistics tasks. For example; except traditional customs clearing and forwarding work as well as services such as warehousing, distribution, inventory management, copacking, labelling, repacking, weighing and quality control. It is like providing valueadded services to the respected customer with ever-improving solutions to their supply chain needs over an age.”

Improved Customs and Excise Policies The main purpose of customs in India is facilitating trade and industry by streamlining and simplifying customs processes and helping Indian business to enhance its competitiveness.’ Improvements in the customs and excise policies benefit importers and exporters and consequently, smoothens the working of Freight Forwarding Agents. Exports from or imports into India, need a lot of regulatory requirements to be complied with at various stages. Sreyash Bhandari, Marketing, SSS Sai Forwarders Pvt Ltd says, “If properly planned, exports and imports can utilise a lot of benefits that are available under various provisions of the policy. Also allied agencies play a vital role in smooth functioning of the clearance with the customs and hence policy framework governing these agencies for working in tandem with the Customs Authority is very much required. Technological enhancement (ICEGATE, EDI, 24x7, Paperless Procedures) which has been brought within the working of Customs Operations, if brought within

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Amit Dawar, Director–Value Added Services, DHL Global Forwarding Some Freight Forwarders have good IT systems but this alone does not help trade, as a lot of information is required to come in from other trade partners such as carriers, custodians, customs, and other agencies.

the allied agencies with proper coordination will bring in smoothness in the entire system, helping freight forwarders to provide a better service to the end customer.” The India market is growing day by day. To encourage EXIM trade and freight forwarding Industry in India we need lots of amendments/improvement in customs and excise polices i.e.; filing of shipping bills process in customs should be fast and easy. Moreover the clearance process should be modified. Dahri pinpoints on the reasons for higher dwell time at Indian airports and how to overcome it.

He says, “Higher dwell time of import (100 hrs), export (48hrs) and transshipment cargo (48hrs) at Indian airports is a major bottleneck which causes high transaction cost and delay. Whereas the dwell time at world class airports is only a few hours (6-12 hrs).

Rigid and outdated procedures of regulatory authorities cause unnecessary delays in the clearance process and increases transaction costs. Say for example MIAL has launched software app, where one can easily track the shipment and get all the tangible information on a single window. To improve efficiency/ effectiveness of customs and excise one must follow JIT (Just in Time) concept to minimise over utilisation of resources.” The customs department as facilitator has emerged in India and they have facilitated the growth of EXIM Trade by the timely introduction of customs EDI System, Ice gate and RMS System.

Talking about the importance of Icegate Roos says, “Icegate is clearly a step forward but in order to prepare for the expected growth in throughput that the new and more business friendly Government under Narendra Modi expects to realise, the administration needs to start evaluating, improving and upgrading the customs and excise policy, in particular as it remains one of the most deeply bureaucratically rooted public branches of India. Imagine if any forwarder could rely on a singular user

30 CargoConnect - august 2016

The freight transportation is expected to reach over 900 billion tons by 2020 which will be carried by 8 million commercial vehicles on the road.

interface for their entire A to Z handling of a consignment. All data would be in the system, benefitting the complete supply chain, with almost limitless opportunities following.” EDI (Electronic Data Interface) system and Self-Assessment are great initiatives and can result in effective streamlining of the cargo movement through customs and excise. However, implementation of the same remains the biggest roadblock as the ground reality is very different from what is appears to be. From the airline perspective, Dahri says, “EDI is not implemented in its true sense, as there are duplication in filing papers electronically as well as in the form of hard copies. Customs working on EDI mode and a host of other government agencies working in non-EDI mode also add up to delay in the clearance process. Customers should be able to manage/send required details at their end at destination in good time and before the arrival of cargo through EDI system which is currently managed by the Airlines and by rare freight forwarders. Cargo terminal operation is over regulated by customs in spite of an authorised custodian, fully accountable, but without any freedom in the terminal operation. Government should pursue policies to promote and encourage private sectors to improve Custom efficiency with increase private participation, the customers facing activities will become more efficient and customer friendly.” Therefore, a strong and collective voice needs to be raised by industry stakeholders in seeking support from government authorities to remove existing bottlenecks, intangible polices and regulations and introduce new progressive polices urgently to pave the way for a long awaited, simplified clearance procedure of EXIM trade at the gateway airports. Adding more information about implementation of strong regulatory systems in the customs and excise policies Dawar says, “The process of manifest amendments needs

cover story

Oliver Bohm, CEO, Schenker India Private limited In future developing economies like India and China will spearhead the growth in world economies. So for us, it’s the right time to expand our footprint in India. We expect 2016–2017 to be good years for the logistics sector especially the ocean freight because of being cost effective mode.

to be simplified, especially where cargo has yet not landed or the Bill of Entry is yet to be filed. Fines and penalties should be clearly defined in order to standardise practices and reduce the allowance of blue collar workers employed under contract by Freight Forwarding Agents to attend to specific work only in the customs areas. Furthermore, benefits under the AEO (Authorised Economic Operator) scheme should be improved for the Freight Forwarding Agents.”

Robust Freight Network A robust freight network contributes to the market in terms of value and also provides a huge advantage in the global delivery system. The industry, especially related to the EXIM trade, is extensively affected due to poor infrastructure and other issues.

However, once an integrated approach is adopted, the streamlining of the supply chain process, in terms of cost, route and customs, will become effective. Raghu Sankar G, Executive Director, International Clearing and Shipping Agency (India) Pvt Ltd and Chairman – Shipping Committee, Southern India Chamber of Commerce and Industry, Chennai avows, “Not all can afford to expand on their own to any and every location.

Networking is an internationally practiced

32 CargoConnect - august 2016

A dense network also signifies more efficiency on the part of the service provider with clear operational advantages and thereby saving cost and time for the customers through direct entry routes.

business formula which is to be replicated for penetrating various markets and segments.

One reason that we are yet to succeed in this model of biz is distrust and if we are able to overcome such short sighted approach, it would definitely allow scaling up the value chain.” Highlighting the ‘trust factor’ in terms of building strong networking, Roos says, “Trust is a key factor in expanding your network. Trust in your own abilities and trust in the partners you chose to work with. Should you buy, start up greenfield or go to the joint venture route, all depends on who you trust and to what extent, plus of course a matter of the available funding at hand. In DSV we have always believed in our business model, and in its sustainability in almost any market.

We want our decision making to be close to our customers and to ensure DSV services are the same irrespective of where you enjoy them.” Freight industry is now diversifying into the fast-growing logistics business and diverging from their traditional activities to adapt into a new avatar. Bohm shares about the importance of freight networking system and tells it to be their biggest strength. He says, “It is one of our biggest strengths by being present globally in over 140 countries with 2000+ locations. Through this we are able to cover a wide spectrum of sectors and

cover story

Manpreet Singh Dahri, Manager Sales and Business Development, Namaste India Aviation Pvt Ltd Freight industry is now diversifying into the fast-growing logistics business and diverging from their traditional activities to adapt into a new avatar.

Opportunities are galore and it’s time to make the most of being the “travel agents” of the cargo industry.

customers across markets, to support their export / import and manufacturing business requirements. A dense network also signifies more efficiency on the part of the service provider with clear operational advantages and thereby saving cost and time for the customers through direct entry routes. This in turn also helps us in staying competitive and focussed on our growth trajectory. We can pass on the value to market on achieving the volume advantage.” Freight network should understand its competitor ability, capabilities and concerns providing benefits to them.

Adding on to it Dhari says, “We need to join

of the globe, and a series of disasters have highlighted the often fragile nature of the freight forwarding and logistics business and the industry’s customer environment. The emphasis placed by the new government in India on development and good governance has created a new opportunity to reinvigorate bilateral ties and enhance cooperation.

Prime Minister Narendra Modi’s himself doing the ground job, visiting different nations like Asian countries, US, Europe and the new initiatives like ‘Make in India’, ‘Clean India’ which is phenomenal and have opened up new avenues.Bhandari shares his view on the

water. Freight forwarding industry will survive only through value creation. We must all realize that the present and the future is for the intelligent only. Deep pockets and relationship management would take a back seat once thinking freight forwarders increase in number. Value creation will happen in finding innovative solutions which are time bound, cost reducing, technology intensive and result finding through detailing. Bohm shares his tale of the influence of the world economy in their business. He says, “In future developing economies like India and China will spearhead the growth in world econo-

hands together with worldwide cargo organisations/entities i.e. WCA, WPA and other similar associations to increase freight effective productivity and volume. The objective is to work together and develop reciprocal business and promote collaboration in order to secure profitable business environment.”

rising growth in the international market and says, “Rising demand is being experienced for advanced logistics capabilities and industryspecific solutions, especially in emerging markets. The increasing number of assembly plants in several markets, including Turkey, Mexico and Thailand has positively pushed up the dynamics of the Industry. Freight forwarding is directly impacted by the global business scenario. The current slowdown is negatively affecting most of the forwarding companies across the world, including India.”

The companies who actually stay with their strengths and do value additions will continue to be outperformers and the rest will have to work harder to keep their head above

mies. So for us, it’s the right time to expand our footprint in India. We expect 2016 – 2017 to be good years for the logistics sector especially the ocean freight because of being cost effective mode. Consumer sentiments in European and US market is expected to maintain the flow of exports and with a stable government and business friendly policies in sight, we are looking forward for good days in the freight forwarding industry with structural reforms at the core of facilitating global business from India. We expect a faster pace on this considering that the framework and focus of the Indian government is on development of infrastructure, ports, IT systems, and tax reforms in particular.” Let us not for-

Economic and Political Influence in Freight Forwarding Industry India’s export-import trade has been affected due to weakened demand in key developed markets of Europe and the US. Economic challenges in the European Union, political instability and unrest across multiple areas

34 CargoConnect - august 2016

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cover story

Raghu Sankar G, Executive Director, International Clearing and Shipping Agency (India) Pvt Ltd and Chairman–Shipping Committee, Southern India Chamber of Commerce and Industry, Chennai Networking is an internationally practiced business formula which is to be replicated for penetrating various markets and segments. One reason that we are yet to succeed in this model of biz is distrust and if we are able to overcome such short sighted approach, it would definitely allow scaling up the value chain.

would be for the economic progress to be delinked with the political climate. Chasing political goals through economic developments or aspiring industrial growth thru political means would not help the country to grow. Only when the language of politics and the industry align there can be holistic growth. Due to variation of political thinking, infrastructural projects become causality that stunts the development. Without exception all industries suffer due to such approaches.” get to mention the other side of the story as well i.e. economic and political disturbances does affect trade deficit and consequently the freight forwarding industry as well. Talking on the same note Roos opines, “I believe the Make in India was the right campaign at the right time as it most likely will take decades to reform India into an exporting nation, so the sooner the better, but there are many other matters that in my view should have been addressed first such as education, infrastructure and healthcare. It could create a long term platform for the growing population and industries at the same time as attracting more investors without having to waive or abate taxes or incomes.” Dawar adds into it saying, “Both factors impact freight movements. In the event the cost of holding and handling cargo is expensive, it would prohibit trade to use such gateways.

Similarly political challenges such as labor laws, single custodian schemes etc. would affect trade and increase cost of operations.

Moreover, political disturbances in terms of an unstable environment on ground will force trade to choose alternates. High dependence on a specific gateway would also lead to trade imbalance with particular gateways getting most of the freight movements in turn leading to a skew in trade.” Sankar shares a small piece of advice suggesting to be delinked with the political climate. He says, “Ideal situation

36 CargoConnect - august 2016

The companies who actually stay with their strengths and do value additions will continue to be outperformers and the rest will have to work harder to keep their head above water. Freight forwarding industry will survive only through value creation.

Infrastructure Concerns Though a lot of initiatives have been taken for infrastructure, the major concern of the freight forwarding community is connectivity to the terminals, airports, freight stations, etc. The freight forwarding industry has to face the challenge of inadequacy of infrastructure when their customers demand a committed delivery time for cargo. The impediments of infrastructure are the root cause of bottlenecks, delays, high cargo dwell time, increased transaction costs, and overall escalation of logistics costs. The Indian freight forwarding industry is ready to adapt to the global standards of IT platform. It is evident from many companies which are providing express logistics and delivery services across the world. Most of these companies in global freight forwarding and supply chain businesses also follow uniform standards to keep the equated level of services for their customers. Explaining about the Indian freight forwarders matching the best global standards in terms of IT enabled real time information system Dahri says, “I personally believe that there are only two things that separate the company’s growth after a level i.e. its team and IT systems. ‘Technology and intelligence change every day now.’ Technology is a proven way to improve performance and efficiency. It meets with most requirements of quick solutions. However, software cannot replace

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cover story

Sreyash Bhandari, Marketing, SSS Sai Forwarders Pvt Ltd In today’s global business practice, technological solution is in widespread usage and it has also become the mantra in the logistics business. This includes order, warehouse and transportation management systems, online tracking of goods, real time information, Global Positioning Systems (GPS) and RFID Systems which improves the accuracy and distribution efficiencies.

Modes of Freight forwarding

Air freight forwarding

Ocean freight forwarding

human beings. While I welcome all the investments and innovation in software solutions, I feel equal importance, if not more, in terms of time and money should be spent on the people who run the systems. There are a number of installations where the software is not used as proposed and only to finish routine jobs.

Replicating manual processes through the computer needs to be immediately dropped.”

Major companies are investing large sums of money in customising and upgrading their IT capability. Many others have in house software development teams. It is all about tracking, document uploading, real time status and everything that makes the system replace the individual. For the logistics service provider it becomes a tool that gives them real time information at the click of a mouse and enables tracking status and information.

India is the cradle of software developments. But unfortunately while brand India software has global reach; its penetration in India is marginal. It cannot be denied that the Government is taking some initiatives, especially in customs, to enhance the existing penetration of a system driven process. This is not enough and all stakeholders should join hands. While our software could be world class, we are yet to establish a world class hardware that would support or match global standard. Freight Forwarders as a business entity have a long way to go as there is always reluctance in long term investments in

38 CargoConnect - august 2016

Land freight forwarding

The Customs department as facilitator has emerged in India and they have facilitated the growth of EXIM Trade by the timely introduction of Customs EDI System, Ice gate and RMS System. many of the small/mid sector organisations.

Talking about where Indian logistics companies lack when it comes to implementation

Rail freight forwarding

of IT Bhandari says, “In today’s global business practice, technological solution is in widespread usage and it has also become the mantra in the logistics business. This includes order, warehouse and transportation management systems, online tracking of goods, real time information, Global Positioning Systems (GPS) and RFID Systems which improves the accuracy and distribution efficiencies. India is a globally acknowledged IT powerhouse and this strength must be exploited by Indian companies to develop specific capabilities in IT-enabled Logistics such as the development and management of logistics planning and coordination systems. Leading Indian IT companies can complement their IT expertise with logistics domain knowledge to develop logistics capabilities for the different industries. Indian service providers should also quickly embrace the IT available and further develop the customized IT solution that suit the Indian requirement so as to enhance the quality and reliability of services provided.”

Having said that, there is still a huge gap between Indian Logistics Companies and global Logistics Service Providers in terms of Technology and Information Systems enabled practices. This gap is filled in an exponential pattern all thanks to the coming of MNC companies who had setup operations in the last two decades bringing in Best Technology Practices as well a robust IT real Information System.

“Continually Innovative”

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40 CargoConnect - august 2016

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The Last Mile’s Lasting Impact Last Mile Delivery (LMD) is the most crucial and final step of supply chain in the e-commerce business. LMD constitutes successful and damage free home deliveries of products within a tight-delivery-time-window. LMD can make or break customers, if done efficiently, it helps in building huge customer base for lifetime, but if products are delivered late, it can destroy the entire business. Hence, in spite of the last mile distribution challenges, some businesses countrywide have come up with incredible ways to fasten and smoothen the process of last leg of supply chain. Ritika Arora Bhola in line with experts finds out the significance of Last Mile Delivery in E-commerce Logistics, challenges and how GST will benefit the industry

august 2016 - CargoConnect 41

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P

erfecting the Last Mi le Del iver y ( L M D) h a s literally become t he m a i n a i m of e-commerce pl aye rs to d ay as it constitutes the final stage i n t he supply chain when a customer receives the order and their entire business depends on the successful and on-time delivery of products.

From bulky items to machinery, electronics, cosmetics and apparel etc., everything is available with just one click and customers do not really like to wait much for their desired products. Therefore, in order to build your customer base for lifetime, LMD plays a very crucial role. However, with the overwhelming buying power of people in India and lots of packages for delivery every day, accompanied by poor road conditions, inadequate transport infrastructure and huge traffic snarls, last mile delivery becomes a challenge in India.

Many reports state that the most difficult part in e-commerce is to find viable options to make home deliveries in the stipulated time frame, after envisaging crowded streets and unfavorable postal services in India. Pin codes of operations and locations play a critical role in the last-mile delivery model. The entire operation of converting an inventory to a package and then transporting the package efficiently through the supply chain followed by replenishing fulfillment plays a crucial role in last mile delivery and has to be done with precision and without delay, as per the reports available.

Indian e-commerce industry has seen an unprecedented rise in business in the past few years. A report by the Bank of America Merrill Lynch 2015 states that the e-commerce market in India will be worth $220 billion by 2025. Another report by Forrester predicts that online buyers will reach $125 million by 2019 and according to a statement by the global business leader Morgan Stanley-the e-commerce sales will hit $100 billion by 2020 in India alone.

Therefore, if we go by the facts, e-commerce in India is poised to grow at a phenomenal rate.

Several e-commerce giants such as Flipkart and Jabong have their own logistics delivery network. For example, Amazon has

42 CargoConnect - august 2016

Amazon Transportation Services, Flipkart has Ekart, DTDC has Dotzot and Jabong has GoJavas to handle a significant portion of their total e-commerce shipments. Adding to that, Flipkart has also launched a crowdsourcing delivery option to connect local

LMD is the final step in supply chain business and it revolves around home delivery aspect, wherein goods have to reach the spot where the customer is available without any damage or delay. sellers and buyers to significantly reduce the time to deliver an order, so as to manage the last mile delivery craziness in India.

Snapdeal, which was completely relying on third-party logistics to drive the last minute delivery to its customers has recently entered into a partnership with GoJavas to strengthen their supply chain – the backbone for a successful e-commerce ecosystem.

Significance of L ast Mile Delivery In the coming years, it is believed that

players who will succeed in delivering shipments on time are going to rule the e-commerce industry. One must note that LMD either makes or breaks the customer.

LMD plays a crucial role in managing the entire supply chain. Also, LMD is the final step in supply chain business and last leg of supply chain revolves around home delivery aspect, wherein goods have to reach the spot where the customer is available, without any damage or delay. Therefore, the link between retailers and consumers needs to be strong and attempts should be made for successful and timely deliveries. We cannot deny the fact that customers today want everything quickly. And no retailer, in today’s digital world, can afford to make customers wait due to the last-mile issues. Hence, it is essential to make quick and damage-free home deliveries with proper infrastructure and skilled manpower.

Observing the same, L R Sridhar, CoFounder-MD & CEO, Connect India E-commerce Services Private Limited highlights, “In the last couple of years, with the emergence of e-commerce the dynamics of LMD have completely changed. The e-commerce deliveries are B to C rather than B to B, where customers are waiting for the delivery, for it could be a birthday gift, wedding anniversary gift or for any special occasion. The expectations of the customers have increased multifold. Before e-commerce came into existence the logistics system was more tuned towards B to B deliveries where the LMD invariably happens to corporate

feature L R Sridhar, Co-Founder - MD & CEO, Connect India E-commerce Services Private Limited

In the last couple of years with the emergence of e-commerce the dynamics of LMD has completely changed. The e-commerce deliveries are B to C rather than B to B, where customers are waiting for the delivery for it could be a birthday gift, wedding anniversary gift or for any special occasion. The expectations of the customers have increased multifold."

This scenario might push up operational costs for service providers, and will prevail for some time, till major consolidation process starts. But the LMD sector is here to stay and grow as long as the e-commerce industry thrives.

houses and large number of shipments is delivered at one single point. Hence, the e-commerce LMD is still a big challenge.

This challenge forced the big players like Flipkart and Amazon to venture in to LMD for their own deliveries but limited themselves to top 100 cities. But, the future for e-commerce is going to be huge in rural India apart from the current urban markets. This is when we saw an opportunity and brought in disruption in LMD.” According to Srinivas Sattiraju, Chief Executive Officer, Delex Cargo India

Private Limited, “With the rapid advent of e-commerce logistics players and hyper local companies competing with each other to deliver their products within the fastest possible time to their customers, we are witnessing a rapid growth and expect a significant further growth for providers in the LMD space. Consumers’ expectations are growing over a period of time and all the e-commerce companies are competing in promising their customers best deals and faster deliveries.”

Sattiraju continues, “This vertical has its own ups and downs for service

feature Srinivas Sattiraju, Chief Executive Officer, Delex Cargo India Private Limited

With the rapid advent of e-commerce logistics players and hyper local companies competing with each other to deliver their products within the fastest possible time to their customers, we are witnessing a rapid growth and expect a significant further growth for providers in the LMD space."

E-commerce LMD is still a big challenge. This challenge forced the big players like Flipkart and Amazon to venture in to LMD for their own deliveries but limited to top 100 cities.

is the need of the hour from customer’s point of view. But from the sustainable point of view, quicker deliveries are hemorrhaging company money. Indian consumers want both timely delivery and also they are price sensitive. In that case, according to me, increasing the ticket size (by combining product deals) will help in gaining a healthy unit-commerce.”

Challenge s of L a s t Mile Delivery

providers. There is a huge volume to deliver, but managing a large army of delivery boys/ bikers and controlling an error- free cash-ondelivery process through them is becoming challenging. The current scenario is that there are too many players in the market.

New ones are entering with large expansion plans, but the resource pool remains the same for everyone. This scenario might push up operational costs for service providers, and will prevail for some time, till major consolidation process starts. But the LMD sector is here to stay and grow as long as the e-commerce industry thrives.”

Leading e-commerce player, Rhitiman Majumder, Co-founder, Pickrr, says, “LastMile is definitely important in logistics as a whole. However, the approach of owning logistics fleet on your own is never going to cut down cost or increase efficiency or be a profitable business. What actually needs to be done is to use technology to make lastmile more efficient. Focusing on ‘on-demand’ labour (instead of fixed labour) to increase efficiency and decrease cost.”

On-time Delivery – Need of the hour On-time delivery helps in building loyal

46 CargoConnect - august 2016

customer base. From heavy lift products to electronics, apparel, jewellery and grocery, everything can be transferred to your home with just one click via e-commerce home delivery. If you succeed in delivering products on time, you will survive in the longer run. Just remember that if you delay it, your overall e-commerce business will be screwed and if you meet customers’ expectations, you will gain a lot of customers for a lifetime.

Talking about the same, Sridhar says, “This has always been a challenge, as the number of distribution centers are limited due to higher costs. Sometimes, due to long distances between delivery centers and end customer addresses, there are delays in delivery. Also, it may happen that the customer is unavailable at the time of delivery, prompting the executive to attempt delivery again. No matter the cause for delay, ultimately it results in a dissatisfied customer. It is to address this particular challenge of timely delivery that our 1x1m neighborhood distribution model has been designed. To improve customer satisfaction further, this model enables pick up at the Connect India Distribution center.”

Majumder also stresses, “On-time delivery

Be it an e-commerce firm, logistics service providers or retailers, – small or big, they have to deal with the last mile delivery problems and challenges associated with it as delivering the products to consumers within a tight-delivery-time-window is not only stressful but also crucial. Also, inadequate infrastructure and poor road conditions badly affect the successful deliveries.

According to the experts, LMD poses the maximum level of difficulty mainly because of the following reasons: 1. More and more customers are now online and are demanding products at their doorstep. This has resulted in an increase in the volume of goods shipped and returned.

2. As people are working for longer number of hours in the day, it’s becoming tougher to successfully deliver the products at their homes in one go.

3. Urban areas face a lot of traffic and remote areas take althemore time and efforts to reach because of poor transportation facilities, thereby negatively impacting the economics.

4. High costs and carbon footprints are incurred, as many a times vehicles are used for shipments and are not fully utilised.

Noticing the same, Sridhar stresses, “Logistics is getting more organised but the challenge is still the same as the

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feature Rhitiman Majumder, Co-founder, Pickrr

Last-Mile is definitely important in logistics as a whole. However, the approach of owning logistics fleet on your own is never going to cut down cost or increase efficiency or be a profitable business. What actually needs to be done is use technology to make last-mile more asset light on-demand labour (instead of fixed labour) to increase efficiency and decrease cost."

On-time delivery is a need of the hour from customer’s point of view. But from sustainable point of view quicker deliveries are haemorrhaging company money.

geographies are spread out in our country.

Hence, the LMD should be convenient for delivery and pick up, which is what we have addressed through our entrepreneur LMD partnership model.”

Agreeing with Sridhar, Majumder reiterates, “Logistics is one sector where you will find loads of player in each mile-be it first mile, middle mile or last mile. But the main challenge is everyone is trying to reinvent the wheel again and again with minimal innovation. What we actually need is technology which binds all these miles together for all these players to make the delivery of each and every good efficient and cost effective.”

In the meantime, Sridhar comments on the transport infrastructure available at present for delivering goods and assures that Ind ia’s transport infrastructure is one of the most robust in the world. He adds, “However, the road infrastructure is still a challenge when it comes to better transit times. This can affect ultimate pricing of the product due to inventory carrying cost. In this regard many of the western countries are better placed due to excellent road infrastructure.”

Majumder also shares that the transport infrastructure in India is huge in terms of size. But the technology controlling this infrastructure is lagging way behind. He

48 CargoConnect - august 2016

whines, “There is no single player where I can go for all my logistics need and can control every part of the logistic mile through technology.”

GST: A Game Changer Goods and Services Tax (GST) is going to be a game changer for the Indian Logistics Industry as it will cut down cost, bring in

efficiency and will help in building a robust supply chain which is necessary for an online player. According to experts, and as we have mentioned above, the Indian transport system is still fairly fragmented and this creates LMD bottlenecks. At present, the lack of uniform GST stops online players from offering a seamless experience across all parts of the country. Hence, LSPs and

online retailers are desperately waiting for the GST, which is expected to come into practice by the late 2016.

When asked about the benefits of GST that it is going to offer to the logistics industry, Sridhar asserts, “GST will help in improving the situation in numerous ways, whether it is rationalization of product pricing, providing ‘just in time’ service for the manufacturing line or having a huge impact in reducing inventory carrying cost.”

On a positive note, Majumder also shares, “GST will help a lot in bringing in cost efficiency in many industries and not just the logistics industry. Further, GST will help in bringing in unification in logistics sector in terms of cost structure and technology implementation.”

To summarize, it appears that India is still struggling to solve some of the ecommerce challenges, where logistics i s one of t he m . Buye r ’s expectations are boundlessly increasing. Therefore, for new e-commerce adopters, the need to evaluate robust logistics services is paramount if they want to succeed in the e-commerce game. For a developing country such as India, with its vibrant economy, varied income standards, and changing demographics, it is important to understand that efficient delivery services will largely contribute to the willingness of consumers to shop online in future.

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Consolidation: Trump Card for Growth of 3PLs An influx of new investments and surge in mergers and acquisitions (M&A) are driving consolidation among logistics service providers. According to forecasts in various industry reports, the wave of mergers and acquisitions in the logistics fraternity in India is likely to accelerate. Joydeep Banik talks to experts to paint a fair picture of the consolidation scenario and figures out the issues and challenges creeping up in emerging markets with M&As

50 CargoConnect - august 2016

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O

ver the past three decades, 3PLs have used M&As for purposes such as achieving scale, broadening service offerings, expanding geographic coverage, obtaining assets and/or technology, securing talent, acquiring new customers, increasing market share, supporting revenue growth, gaining knowledge in a targeted industry (for example, healthcare) and in few instances, reducing competition. Other factors driving industry consolidation include the ability to penetrate new customers and end users as well as diversify customer concentration. Expansion of service offerings and acquisition of proprietary know-how help in driving increased volumes of transactions.

Shippers nowadays continue to consolidate their business with a smaller number of providers that offer a breadth of services.

Private equity firms are also playing their part in consolidation by focusing on aggregating smaller players through numerous acquisitions. M&As have not only been used strategically by individual 3PLs but also by private companies to build large scale service providers. However, substantial research has shown that less than half of all M&As generate the benefits that were anticipated by management. From a structural perspective, the big are getting bigger, and often are moving into service sectors and/ or geographies in which the acquiring companies may or may not have had previous experience. Blending all aspects becomes a major challenge for the multinationals look-

ing forward to acquire aggressively; but if done carefully and professionally, service offerings may become more robust, internal economics may reduce, thereby improving efficiencies for companies.

52 CargoConnect - august 2016

Did You Know?

• In January 2014, XPO Logistics announced its acquisition of Pacer International.

• In April 2014, FedEx reported its intention to acquire Genco, a large 3PL with a strong presence in reverse logistics.

• In March 2015, Penske Logistics acquired Transfreight.

• FedEx in April 2015 agreed to acquire the Dutch company TNT Express for $4.8 billion.

• UPS joined the acquisition movement in July 2015 with an announcement that it was acquiring Coyote Logistics.

• In October 2015, Danish logistics giant DSV, which has grown through the acquisition of some 30 companies over the past 10 years, announced that it would buy US-based UTi for $1.35 billion.

Why Consolidation?

Logistics encompasses a wide array of services like transportation (air, surface, internal waterways, sea), storage (warehousing, logistics parks, container depots, cold chains),

distribution (courier service, e-tail deliveries) and integrated/allied services (freight forwarding, 3PL). Investment in logistics boosts growth in its upstream and downstream economic activities. Looking back, the logistics industry in developed countries went through a consolidation phase which had a major impact on the industry landscape. Third party logistics businesses attracted substantial interest from private equity buyers due to high industry growth rates and limited capital investment requirements. India was no exception.

Vikram Mansukhani, Head 3PL, DIESL avows, “India is currently going through a logistics explosion. With the boom in e-commerce, the Make in India mandate, and an overall increase in customer demand for higher levels of service, there is a surge in inspirational logistics startups. The start-ups to some extent have also been successful in finding venture capitalists and other funding channels to leverage and support their business model. However, while starting out is easy, the real test is to run a sustainable and profitable model in an environment that has got used to low cost and very high levels of efficiency and performance. In such an environment only those enterprises with long staying power, overheads spread across very high volumes and an extremely nimble IT infrastructure can survive. In the next two to five years, in India, we will definitely see large consolidations happening and we are seeing early signs of the same even at this time.”

V Raju, Vice President-3PL & Contract Logistics, Adani Logistics tells, “Mergers, consolidation and acquisition have always played a significant role in the current structure of the third party logistics landscape both in India and globally. This phenomenon is quite voluminous globally, however India is also soon catching up with the benefits and advantages having been realised by the logistics companies. Over the past three decades, third party logistics players have used them for such purposes as achieving scales, broadening service offerings, obtaining assets and or technology, increasing market share, gaining knowledge in a targeted industry, and in some cases, assuming a monopolistic position in the industry.

He further informs, “The companies look for the merger options or acquisitions basically due to following reasons: • Customised services

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feature

Third party logistics can only get heavily consolidated in a scenario where customers value a 100 per cent process driven, highly compliance-oriented work environment. Where undue pressure is put on reducing supply chain costs and logistics costs are at the forefront of the cutting scissors, consolidation will not be allowed by small operators.

Vikram Mansukhani, Head 3PL, DIESL

• • • • • • •

Flexibility and accessibility Culture and values Niche expertise Specialised product knowledge Customer pressure in the marketplace Desire for geographical expansions Financial considerations.”

3PLs: Frontrunners in M&As Third party logistics is one of the most active sectors within the transportation industry for private equity investment and strategic buyer acquisitions. Although the third party logistics industry is currently highly fragmented, it is expected to become increasingly concentrated in near future. Mansukhani comments, “Third party logistics can only get heavily consolidated in a scenario where customers value a 100 per cent process driven, highly compliance-oriented work environment. Where undue pressure is put on reducing supply chain costs and logistics costs are at the forefront of the cutting scissors, consolidation will not be allowed by small operators whose only niche is cutting corners to deliver an ‘acceptable’ price.”

On the other hand, Raju asserts, “One thing for sure, the recent acquisitions may trigger many more in near future that are defensive in nature. The ongoing consolidation will also mean that the large global customers will be able to reduce the number of 3PL players that they use. As a result, relationship

54 CargoConnect - august 2016

M&As have not only been used strategically by individual 3PLs but also by private companies to build large scale service providers.

Looking back, the logistics industry in developed countries went through a consolidation phase which had a major impact on the industry landscape.

Third party logistics can only get heavily consolidated in a scenario where customers value a 100 per cent process driven, highly complianceoriented work environment.

With the increase in the transportation of perishable products, agencies have to give lot of importance to enhancing warehousing facilities.

By 2020 the top ten global 3PLs will control 80 per cent of the world’s logistics volume.

management activities might get simplified, and consolidated buys might produce cost savings as well.”

Changing Market Dynamics After a period of tremendous market growth and continuous market entrance of multinational logistics service providers, the transportation and logistics industry in emerging markets will face a period of fierce competition followed by consolidation. Here, Raju points out the “challenges that will be faced by companies involved in the mergers and acquisitions: • Leadership changes • Employee morale • Systems integration • Realisation of multimodal synergies • Cultural integration • Brand identity • Relations with existing customers” While the big players in the logistics industry have seen a larger share of ‘mega deals’ than usual, plenty of smaller mergers and acquisitions are happening as well. The 3PL sector is ripe for consolidation, and more highprofile deals could be on the way. Mansukhani comments on this aspect, “The overall marketplace will determine a combination of service levels and price bands within which each operator will have to mould oneself. Given each operator’s inherent strengths, the choice between getting acquired, doing an acquisition

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feature

The recent acquisitions may trigger many more in near future that are defensive in nature. The ongoing consolidation will also mean that large global customers will be able to reduce the number of 3PL players that they use. As a result, relationship management activities might get simplified, and consolidated buys might produce cost savings as well.

V Raju, Vice President-3PL & Contract Logistics, Adani Logistics

or an alliance will clearly emerge. Logistics sector is a mixed bag of several sub-sectors like warehousing, transportation, ocean and air shipping, express, etc. and their growth and profitability indices vary significantly from each other. Also, while the deals per se may not directly affect the growth of the logistics industry, relatively healthy economy combined with rapidly growing demand for organised logistics services and the emergence of strong consolidated LSPs will together push growth in Indian logistics.”

He adds, “Competition in terms of price, service levels, operational capability and IT platforms are even currently the order of the day. Market dynamics will ascertain what price a customer is finally willing to pay which in turn will finally determine who will retain the business. Consolidation need not necessarily be a by-product of the big fish eating the small, but may also be a consortium of small operators joining hands to form zonal/national level alliances, especially if visible price (hidden costs not considered) is the only deal-maker from a customer standpoint. Consolidation and investment models therefore will be based on performance-based valuations and upon clear areas of synergy between parties. As the markets mature, the consolidated entities may actually have to compete on the basis of who can provide end-to-end services and value-added solutions to their customers, which will determine stickiness.”

Infrastructure a Key Concern With increasing amount of consolidation and mergers happening, it is also important to have proper infrastructure in place to support the growth and build capacity for the same. Raju clearly believes that infrastructure is the need of the hour to support growth. He renders an elaborate outlook on the topic,

56 CargoConnect - august 2016

• • • • • •

“Particular focus needs to be given on building world-class road networks , integrated rail corridors, modern cargo facilities at airports and creation of logistics parks(which need to be given a status equivalent to Special Economic Zones). With the increase in the transportation of perishable products, agencies have to give lot of importance to enhancing warehousing facilities. Warehousing will also have to climb to the next level taking into account the changing dynamics of JIT manufacturing, global procurement and new model of sales and distribution. Inadequate road and rail network coupled with poor quality of existing roads poses major problems and also is one of the reasons for higher logistics cost faced by the Indian industries.

Various areas of poor infrastructure that need immediate attention are as follows: • Inadequate road network coverage • Delays at RTOs, checkpoints, and state borders • Growing congestion at airports • Lack of strategies for long term development of airports – both cargo and passenger handling • Non availability of cargo tonnage on aircrafts • Lack of connectivity on long distance options • Inadequate depths at sea ports • Coastal shipping yet to take-off

Poor productivity at ports Labour related problems Poor state of ICDs and CFS Inadequate cold storage facilities Customs procedures are too long and slow Lack of sufficient use of IT and WMS.” Ma nsuk ha n i more or less ag rees, “Infrastructural bottlenecks across modes (rail, road, waterways) have stifled the logistics sector’s growth. Large operations will demand setting up of logistics parks, distribution terminals, material handling equipment within the warehouses and automation based on product norms. As the operations grow in size, dependence on human workforce will need to be brought down in order to ensure higher levels of standardisation, round-the clock operations and lowest possible costs. While this would definitely mean higher cost outlay upfront, the returns in the long run would be significant.”

Conclusion Over the past few years, there has been a flurry of merger and acquisition activities among 3PL companies. Regardless of these various reasons, it seems that consolidation is going to remain a dominant theme in the logistics and supply chain sector. In their prediction for global logistics 2016, Gartner says they expect that by 2020 the top ten global 3PLs will control 80 per cent of the world’s logistics volume. They also predict that these global 3PLs will be serviced by small niche players who will work for them on a contract basis. Therefore, it goes beyond saying that the impact of consolidation is potentially going to change the logistics industry in far reaching ways if it continues at the same pace as of now. But the economic climate remains challenging and the environment for organic growth seems to be competitive. No doubt, there are exciting times ahead!

Interview

“Execution is our strength” Richa Industries is a construction & engineering company that is operational in pre-engineered building (PEB), structural steel, turnkey & textile sectors. With the right panache, of clocking a topline of around Rs 450 crore in FY16, Sushil Gupta, Chairman, Richa Industries Limited, in an interview with Sana Husain talks about the interesting projects in his domain, where he shakes hands with the industry’s top-notch players As per the audited financial results for the year both textiles and PEB in Richa Industries, to opended March 31, 2016, of Richa Industries Lim- timize the resources at its disposal? ited, Construction & Engineering Segment expe- In 2005, when the quota -phase out happened rienced an increase by 93.56 per cent to `290.16 in textiles, there was a major buzzword that crore in sales, driven by volume growth in Pre textiles is going to grow in a major way and based on those expectations, we also came Engineered Buildings division and its EBITA grew up with our project where we setup one of by 11.53 per cent to `30.88 crores; whereas the largest facility for processing of fabrics; the Textile Segment saw sales for the quarter wherein we came up with a publication increasing by 24.60 per cent to `189.90 Crore, in 2006 and by 2007, when we started the with EBITA growing by 15.14 per cent to `20.37. operations. But, simultaneously there was a Richa Industries Limited, which mainly started major boost in the real estate sector in India. as textile business, later flourished to be a So, we observed that during the real estate boom, most of the garment exporters basically trusted construction and engineering firm. Why shelved their plans of future expansion in do you think the sales figures are still lower on textiles and they converted themselves into the textile front in comparison to PEB segment? the real estate segment because everybody was Is there scope to match up the profit figures of seeing a major boom in that, whereas margins

58 CargoConnect - august 2016

in textiles with the quota phase-out shrinked very badly. So, at that point of time, we found that we have come up with a project of such large magnitude but we are not seeing ample growth in the textiles sector. So, based on that analysis we basically decided to diversify and that’s why in 2008 we came up with diversification and put up the PEB plant. I will say that I was lucky enough that we rightly viewed that and textile remains subdued for almost six years and whatever expansion we did in the textiles at that time, we just kept upto that and never went for further expansion into textiles. But, if you see that in the last one year, the textiles is again showing lot of opportunities. Now, it’s again coming up well and our fullest capacity utilization is much higher and the margins are growing.

So, yes, in the time to come, we should look

In the last one year, the textiles is again showing lot of opportunities. Now, it’s again coming up well and our fullest capacity utilization is much higher and the margins are growing.

As far as the EPC section in PEB is concerned, we have already completed more than 6000 projects. into it. But, so far we haven’t planned much right now in textiles. We are concentrating on converting our plant to zero liquid discharge, whereby we are observing that the

shed, finishing shed and rain test shed? Sand- that within the next year, a new plant will be eep Gupta, Joint Managing Director, Richa Indu- there and yes in that we are targeting export also along with the southern market. tries Limited claimed the deal as the first order

by Ministry of Defence. What exactly made the Going back to the Richa Industries case in 2015, ministry initiate this? where SEBI had slapped a `3.3-crore fine on 59 Basically, this is the order from BEL and they’re entities for allegedly indulging in various mamajorly interested in having the missile system in place, by the defence ministry. Looking at nipulative and fraudulent trades and executing the growth in the missiles sector, BEL decided off and on market transactions in the scrip of to expand the capacity for its manufacturing. Richa Industries India, where they had created They have their existing plant where they artificial volumes and manipulated the compadecided to go for setting up the new facility ny’s share price, has Richa Industries recovered as we are into the EPC section. We bid for the from its consequent impact? tender and have got an award for it. As far as the PEB section is concerned, more than 600 projects we have already completed so this is another project about which I don’t think there is something very special, but for the EPC it’s different. Already, on two buildings we have completed the footing works but due to the heavy rains in Mumbai, there’s a bit of a delay here, which we have already worked out.

Although, it’s running smoothly.

Firstly, Richa Industries has nothing to do with these kind of manipulations. So, there are players who are trading into the Richa’s share, with which Richa is not getting impacted in any way, nor it’s involved into any of these things. But, even in this case also, it has been basically scrapped and they have put that SEBI has done this illegally and the whole order by SEBI has been declared as null and void. So, this is already resolved.

In December, 2015 Richa Industries won a rail overbridge order from Indian Railways of `20 crore which is to be executed within 15 months.

Earlier in June too they had secured an order from Sam India Built Well Pvt Ltd for construction of depot cum workshop for Lucknow Mass Rapid Transit System.

So, is Richa eyeing other potential investments in road, air and water systems, while clocking a topline of around `450 crore in FY16? government is getting strict pollution norms, so all the units that are working in textiles or in the polluting areas must have to shift to zero liquid discharge. So, that’s the area on which we are working. Simultaneously, when we weren’t able to grow in the textiles because of the low margins we focused ourselves on to the PEB side. Earlier, we started with the PEB buildings and then when we again saw it in 2013 and 2014, there was a slump in the PEB also. Then, in PEB also we switched to EPC section and today we can say that in our steel sector also, EPC is doing phenomenally well, where we’re doing 50 per cent of EPC only.

Can you please elaborate on the `24 crore deal struck between Bharat Electronics Limited and Richa Industries, regarding designing and construction of three buildings including composite

Having constructed 47-meter high Fatty Acids manufacturing plant of Wipro Enterprises, one of the highest multi-storey steel structure in Haridwar, Uttarakhand, does Richa Industries plan to expand internationally and strike more lucrative deals there?

For the international business, our plant location is obstructing our growth a bit when we are manufacturing in the Kashipur one. We have to pay the freight charges for bringing in the raw materials and we have to export, so there’s a freight component which is getting added up and that high freight cost is not giving us a competitive edge. Yes, we want to go for the export front. We are already looking for the second manufacturing facility and the company is already working on it. There are no such firm things that we have done but I hope

Yes, Richa is heading in that direction only.

The projects that we have just discussed like SAM India project we took for Lucknow Metro Rail Corporation is already completed.

Other project about rail overbridge at Jhansi we have almost completed, comprising of 50 per cent of the civil walk and the project maybe closed even earlier than 15 months.

That’s again heading towards what we have planned for. We have also closed an order from BHEL for the power grid of around 50 crore which is completed quite well. Yes, further also we have more orders from KEC, power grid and repeat orders from Lucknow Metro for around eight stations, that we’re building here. Our strength is basically our execution.

Normally, we complete all our orders well ahead of our time schedules. We’re definitely looking into the infrastructure. We are there into the bridges now, but in the road sector, other than bridges we haven’t entered into.

august 2016 - CargoConnect 59

Interview

The French Connection With a presence in 13 countries, FM Logistic is a firm that claims to hold all the cards for success, with its global mastery of the supply chain. As FM Logistic acquires majority stake in Pune-based Spear Logistics, Stéphane Descarpentries, Director, Strategic Projects and Director, Operations Asia, FM Logistic in an interview with Sana Husain talks about “transferring” expertise, so as to attain a critical size in the Indian market.

Can you please talk about the breakeven point between FM Logistic and Spear Logistics, which led to the consequent partnership between both the firms?

FM Logistic is a family-owned company, with an entrepreneurship spirit. Our strategy is to establish ourselves early in promising countries. What we did in the early 90’s in Russia and Central Europe is the reason why we are now leading there.

When we did a market study to define our next country of implementation, India was the obvious choice, with the biggest democracy worldwide, sporting an impressive growth rate and a logistics market that is becoming more and more professional. In order to immediately have a critical size in the market, we decided to proceed through an acquisition.

60 CargoConnect - august 2016

Spear Logistics was the perfect candidatea strong and skilled team, with a national footprint and prestigious customers (Siemens, Crompton, Atlas Copco, Indus Tower, Godrej, Honeywell, Dr. Reddy’s).

As India is a complex country, with its own specificities and culture, we decided to let a significant autonomy to the Indian management team, mainly being Gautam Dembla, the Managing Director. We have been transferring some good practices in term of processes or technologies to them step by step.

For warehousing, transport and packing, FM Logistic is one of the leaders in the consumer goods, distribution, perfume/cosmetics, manufacturing and health markets. Catering to multiple segments, is there any specific one which

you have targeted in India and have discussed with Spear Logistics, in terms of development of transport services and envision its exponential growth rate?

We agreed with the local teams on a very clear strategy- to continue developing the current key sector of Spear Logistics, in terms of automotive, engineering, telecom and retail and preparing the future by anticipating the GST. Our aim is to offer our customers the consumer goods as well as cosmetics and provide the health sector high quality multicustomers and multi-activities warehouses, closer to the biggest consumption areas in India. Lastly, we offer to our customers a global offer for warehousing plus distribution, applicable to all channels- B to B and B to C. We believe that our customers are

To have a critical size in the market, we decided to proceed through an acquisition.

Spear Logistics was the perfect candidate with a strong and skilled team, national footprint and prestigious customers expecting a global service and what is important for them is to ensure that their products will reach their customers with the good lead-time, the good service level at a market price. So yes, we will develop the transport as an organizer and bring addedvalue by selecting the best transport providers as per the region and the typology of transport.

But, we will also provide integrated transport and warehousing operations, meeting the expected delivery dates, and managing the whole flow’s information (Kpis, PODs, invoicing) through our TMS.

it firstly provides “greener” transportation so- ways of opening the company to new ideas lutions using cargo bikes and trucks powered by and getting in touch with young graduates.

We want to recruit the managers of tomorrow electricity or gas. Secondly, it deals in grouping and help them to grow inside the company, batches of different vendors by place of delivery, after helping them learn the management both at the level of neighbourhoods, streets, but practices on the field, in our warehouses. also for specific stores. Do you plan to implement this in India, given the simultaneous smart In a report by Warsaw Business Journal Obcity revolution here? server, FM Logistic said, “Amid the increasing Pollution and noise have reached hardly use of robots in warehouses, a new generation bearable levels in cities like Mumbai and of robots has been introduced to the market.

Delhi. In order to help in making cities a better These machines, called ‘co-bots’ are designed place to live, FM Logistic aims to provide greener logistics alternatives. In terms of to work together with people. They are equipped energy consumption, in partnership with our with sensors that detect people working nearby customer Indus Tower, we are operating a and are programmed to optimize and standardwarehouse in Pune that is energy self-sufficient ize simple repetitive manipulation tasks and to –by producing its own needs, thanks to the significantly reduce employees’ musculoskelsolar panels. etal disorders. After having equipped the module with a speech synthesizer, the Automation Department of FM Logistic will soon also give it sight through a special app. Has this model guaranteed efficiency in Eastern Europe, Central Europe and Latin America? What kind of investment scope do you see in India, regarding the same?

How would you analyse the move of Ambit Pragma, a small cap (SME) growth and buyout fund, selling its majority stake in Pune¬ based Spear Logistics Private Limited, to FM Logistic, after immensely benefitting Spear with its strategic and operational inputs? Do you look forward to Ambit’s contribution in future too, if needed?

Clean and efficient urban logistics is also a major priority especially due to the constant growth of e-commerce volumes. So, we aim to develop a solution, combining pooling of flows in hubs outside major cities and clean transport options (eg. electrical or hybrid vehicles) to deliver to the city centres.

I do not know the strategy of Ambit Pragma in India. They were a fair partner during the negotiation. As FM Logistic is a family-owned company, we have a long term industrial strategy in India and the financial resources to support our development.

Of course, we are more than open to all external contributions in order to define our strategy, while talking about the partners, customers and universities. As the world is evolving very quickly, we will be increasingly tuned to our external environment in order to anticipate the coming changes.

To promote innovation in supply chain in India, would FM Logistic be interested in organizing competitions like “Faster Mind Challenge”, for the young, or might as well experienced employees, in the field of logistics?

As part of “Specific innovation as the core of smart cities”, Gregoire Lapillonne, project manager of FM Logistic presented the concept of sustainable urban logistics, Citylogin. Addressing the ambivalent attitude of urban consumers,

With a development rate of 20-25 per cent per year in India, human resources are the key. Our first priority is the training and the development of our teams, which is why we have created our internal school named “Spear Academy”. We already have 160 graduate employees through a training program dedicated to the middle-management positions.

In parallel, we will also reinforce our relations with schools and universities, where we already have a partnership with two management institutes in India.

The Faster Mind Challenge is one of the

Yes, robots are becoming more and more efficient, flexible and affordable. Hence, in Western European countries, we now have a good return on investments. So, we are deploying robots to automatize repetitive and physically demanding tasks as well as AGVs (Automated Guided Vehicle) to automate large distances inside the warehouses. Of course, we have to adapt the technology used for the cost of labour, which is calculated 20 times higher in France than in India and around eight times higher in Central Europe than in India.

Therefore, we can say that implementing robots in India is not yet a priority. However, we are already using some advanced technologies, especially for the activities, for which we have a huge number of SKUs, wherein we are picking large volumes of consumer units, like conveyors, radio-data equipment, packing machines, et al.

Our innovation roadmap in India for the next few years is based on four main pillars: digitalization of our IT, especially for transport; development of a new version of our WMS based on the state-of-art technologies, development of green technologies and solutions in warehousing and distribution and implementation of trolleys which allow multi-order picking with weighing control.

august 2016 - CargoConnect 61

Interview

“Integrated Declaration under the Indian Customs Single Window is a milestone to Ease of Doing Business” PDP Shipping & Projects Ltd is a company dedicated to bringing in innovative solutions in project Logistics. Animesh Kumar, Founder Director and CEO, PDP Shipping & Projects Ltd in an interview with Nikhil Mishra discusses their functional areas, strengths, and the government policies that will boost up the growth rate of shipping industry What are the various services offered by PDP Shipping and Projects Ltd.?

PDP Shipping & Projects Ltd (PSPL) is an international freight forwarder, offering single window total logistics solutions. Our specialisation is ODC and Heavy Engineering Transportation. We are one of the rare companies in India, offering total sea transportation engineering solutions, which include sea towage, lashing and sea fastening, ballasting, structural analysis, floating and beaching Ro-Ro loadouts.

PDP Shipping and Projects Ltd. specialises in providing containerised solutions for cargo of OOG(out-of-gauge) nature as well as in floating Ro-Ro loadout method. What are the challenges faced in carrying out such operations?

Yes, we have been successfully carrying out floating Ro-Ro Loadouts and containerisation of oversized cargo. These are innovative by nature and thereby challenging as well.

When we handled 375 ton single unit of 13 meter dia (approx) and 10 meter height (approx) by floating Ro-Ro Loadouts operations, it was the heaviest ever at Mumbai port by the time. We take pride that the successful completion of this innovative loadout paved way for the trade, to plan such heavylifts and operations. When a bulky export consign-

62 CargoConnect - august 2016

ment of 65 feet long and 15 ton weight got stuck at Mumbai as break bulk ship was not available for an Egypt port, the shipper approached us in trouble. We worked out containerised solution. We are proud to say again that despite hurdles of serious nature, we could finally execute this shipment successfully at JNPT by specially built up slings and tailor-made operation. This success again paved way for several such repeated operations. It’s the technical conviction of the company that matters to overcome limitations and execute such solutions.

In this year’s budget, the Ministry of Shipping hasdecided to reduce the service tax for coastal shipping. Do you think that this move would encourage the transportation of goods through coastal shipping rather than road or rail?

The exemption & abatement of tax in inland waterways & coastal transportation has certainly been encouraging to the coastal trade & industry. Relaxations of Cabotage rule, proposal of incentives based coastal transportation are other major boosters. We should appreciate the new govt. for its good efforts towards the ambitious Sagarmala Project and coastal movement.

Recently the government has launched 24x7 Single Window Interface for facilitating trade at

customs ports. So how will this facility help in the smooth functioning of customs clearance?

The success of integrated declaration for ‘partner govt. agencies PGAs’ under the Indian Customs Single Window Interface will prove to be a milestone for EXIM trade.

This Ease to Do Business potentially cuts short real dwell time and costs, and finally targeted to achieve automated disposal of customs clearance. No doubt, this initiative has introduced Risk Mgmt. Intelligence, transparency and efficiency to the highest level. It has been launched at Mumbai, Chennai, Kolkata and Delhi with few participating PGAs. The trade is excited for the success of this pilotage, thereby craving for all remaining Customs Stations & PGAs to participate to achieve the vision.

What are your future plans about expanding your arms in the logistic sector?

The company is in the process to strengthen its position as a major player in the field of Heavy engineering transportation solutions and international freight forwarding.

Opening up new offices, acquiring latest equipments are part of the growth plan, where the company seeks increasing public participation in order to augment and achieve the targeted growth and expansion plan.

Interview

“Aviation industry enables economic and social development”

“The airline industry makes today’s modern life possible,”says Tony Tyler, Director General, IATA. In an interview with CARGOCONNECT, the expert highlights the outlook for airlines’ financial performance, how the industry is fairing on safety front, climate change agreement at ICAO, and discusses how can governments be more aware of the benefits of supporting aviation. Excerpts: What’s the current outlook for airlines’ financial performance?

We are forecasting improvement in performance of 2016 as compared to 2015 as we are looking for an industry profit globally this year of 39.4 billion dollars. Of course the low fuel price is helping but overall the industries in a more zillion condition than it was some time ago and it’s in a better structure, and the load factors are up using more efficient equipment. So, generally speaking, despite certain economic background the airlines are producing good results.

Safety is obviously top of the mind right now. How is the industry fairing on this front and what is IATA doing?

Overall, it’s a very safe time for the industry.

Last year’s safety performance beat the five year average and although of course we had a couple of terrible tragedies last year which were not accidents they were caused deliberately by human action. What we’re doing as IATA is we are tightening up our operations safety audit which has become a global benchmark and safety management for some 400 of the world’s top airlines. That’s now becoming a system of continual assessment and a continual safety management rather than just a snapshot every couple of years and

we are encouraging governments all around the world to adopt it as a part of their regulatory regime.

crowds, and terrorist outrages like we saw in Brussels.

Of course, governments need to make sure they’ve got enough resources to keep the lines moving. In the medium term though, what we need to do is prevent these lines from happening in the first place. We have a program called smarter security which aims to do that by working with the airports. We are working with airport’s counsels to implement new technologies to all risk-based systems of security screening, so that we can actually get rid of these lines altogether by doing things a bit smarter. We need to improve facilitation at airports. We need to go for more alternative systems, and need to make sure that everybody can have his boarding card on his mobile phone or print it out at home. So, he doesn’t have to queue up at a check in desk.

With Home Printed Bagtags, we now have a standard for those who are trying to get those adopted so that people won’t be queuing up to drop their bags off; the bag will already be tagged before they even get to the airport. If we can reduce the amount of congestion, we will also reduce the vulnerability of airport

measure to help manage carbon emissions. It wants that because really that’s the license to grow. We have set the target of carbon neutral growth from 2020. To deliver that, we need governments to deliver as ICAO in its triannual assembly in September-October this year. How confident am I? Well, I’m hopeful, and also reasonably confident. But, there is a lot of work to be done to bring governments into alignment before we can say with 100 per cent confidence that we going to get that.

How confident are you of the climate change Security has made the news in the USA in the past agreement at ICAO and why is the industry being so week and is an ongoing issue after the Brussels at- proactive on this issue? tacks. What more needs to be done on this?

The industry wants a global market base

One of your personal favorite topics is aviation being seen as a force for good. How can governments be more aware of the benefits of supporting aviation?

As we enable so much in the way of economic development and social development, it’s impossible to think of an industry in any country that isn’t affected by aviation. It’s also the life blood of social development and interaction.

Here. I not only mean for people who want to go on a holiday, but also for families and businesses to stay connected.

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Interview

“IPO is strategic decision, will happen in 2018” Headquartered in Chennai, Indev Logistics Pvt Ltd has recently signed MoU with Kerry Logistics Network Limited a leading logistics service provider in Asia. S. Xavier Britto, Chairman, Kerry Indev Logistics in an interview with Ritika Arora Bhola, talks about the partnership, benefits, IPO decision, future plans and much-awaited Goods and Services Tax. Excerpts: Please elaborate on your partnership with Kerry Logistics Network Limited. Why did you choose Kerry and not any other big Indian business organisation?

The logistics industry in India is still in the development mode whereas in other parts of the world it has become more efficient in terms of cost and productivity. This has been achieved by logistics players in these countries on account of adoption of technology through automation of business processes, usage of state of the art material handling equipment’s / tools, etc. Indian businesses are yet to adopt these best practices. Hence Indev chose Kerry Logistics Network as its strategic partner who will help to bring the best business practices in the global logistics industry to India. Moreover Kerry has the expertise in Express Cargo, Cold Chain Warehouses, Integrated Logistics and Supply Chain Systems to which Indev will have access through this partnership.

In the current competitive business environment, Indev does not have the luxury of organic growth as time is at a premium. Hence, we chose strategic partnership with Kerry to achieve our growth plans in the shortest possible time and in the most efficient manner.

Indev will become the sole member of Kerry logistics network in India. In alignment with Government’s ‘Make in India’ policy, Kerry Indev will design industry specific products and solutions to move goods across to continents using the Kerry Logistics Global Network in the most efficient manner, by bringing down the logistics cost.

How do you think implementation of Goods and Service Tax (GST) will benefit the logistics industry?

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GST is one of the most anticipated reforms in India which will bring down the cost of logistics once completely implemented. The logistics industry needs GST as it will allow standardization and synchronization in terms of taxation. Our development oriented Honorable PM Narendra Modi has targeted the improvement of India’s International ranking with respect to ‘ease of doing business,’ and the GST implementation will be an effective tool to achieve this short term goal with long term benefits. GST will give a big fillip to “Make in India” program of our government. I feel that the implementation of GST will take some time; may be two to three years, but you will see the result. As of now, lot of efforts is being made, especially towards developing infrastructure.

There are changes happening, but we want GST to come in.

Why so much delay in bringing GST? India has a complex federal set up. Some states continue to object to GST because it’s a destination tax. The revenues of industrialised / manufacturing state like Tamil Nadu will get affected and hence these states are asking for a committed contribution from Government of India to compensate this loss. Moreover, certain political issues also pose hurdles for legislative approvals. The central government is working on striking a compromise; as GST is essential for the economic development of the country. In the last two years we have seen lots of developments regarding GST and as a logistics person I can confidently say that only the Last Mile Delivery is pending.

Please tell us about your plans for Initial Public Offering (IPO).

We are bullish about the development plans of our Prime Minister and the consequent success of the “Make In India” program. The logistics industry will be the first and foremost beneficiary of this development and we are confident that the logistics industry is poised for big growth in the next three years. Hence, we have drawn out very ambitious growth plans for our company and we will take the IPO route to fund our expansion plans which will put our company into an entirely different orbit.

Any other information that you would like to add on to this?

There are several procedural delays, for example, for Free Trade Zone (FTZ) which is now under the commerce minister, the request has been sent to resolve procedural delays. FTZ is predominantly used for import cargo, which we call the Domestic Tariff Area (DTA) and for export cargo they are not predominantly using FTZ because benefits like drawbacks are not coming through regular exports. So, to put it briefly, Customs Act 74, Customs Act 75, Refund Act of 27 Section and also bias consolidation- all these are happening in other countries but not happening in our free trade zones. That’s why FTZ warehouses are not growing very fast. So, the commerce ministry will have to take steps to treat them at par with regular expense because the biggest advantage of FTZ is one makes his income in dollars. Therefore the foreign exchange will go up like it is happening in other countries, such as Singapore, China, Germany.

Interview

‘SWIFT’ Roadmap for a Complete Paperless Trade The Central Board of Excise and Customs (CBEC) has launched Single Window Interface for Facilitating Trade (SWIFT), an initiative to speed up clearances for consignments and improve ‘ease of doing business’. S P Sahu, Commissioner (Single Window), CBEC, Department of Revenue, Ministry of Finance in an interview with Roselin Kiro shares about the team effort of CBEC in bringing this system which is a promising initiative in bringing good days for all the importers As part of the ‘East of Doing Business’ initiative implementation but the project lays out the CBEC has launched Customs Single Window Inter- roadmap for a complete paper-less trade. face for Facilitating Trade (SWIFT) clearance. How Tell us about your role in bringing the Customs have things changed after its implementation?

Single Window system?

CBEC introduced different aspects of SWIFT gradually. Firstly, Customs Clearance Facilitation Committees were introduced at the regional and national levels, bringing all participating government agencies to a common platform to discuss the challenges faced by the trade at field level. This gave the stakeholders a voice in the system and provided them with the opportunity to raise practical issues concerning customs clearance.

SWIFT has had a significant impact in clearance times, due to several factors.

Firstly, trade saves time because it does not have to wait for the customs officer’s orders to refer a consignment to another agency for their clearance. Secondly, decisions to refer consignments to another government agency depend not just on the commodities being imported, but also on other factors.

Besides, unlike in the past, all PGAs have developed risk-based selection criteria and are selective in terms of the number and kind of consignments they would like to examine or test. Further, all references would be made online, ensuring that references and approvals are transmitted in an instant, and timestamps, that would ensure transparency for the trade and accountability of action by officers. Some aspects of SWIFT are still under

Although Customs was tasked to deliver the project, SWIFT came about as a result of a government-wide effort. If it were not for the senior executive’s constant engagement, and persistent guidance on policy, the project could not have been implemented as quickly as it did. The Director General (Systems), Customs & Excise, accorded high priority to SWIFT and spared no effort in implementing the crucial IT changes.

Considering the complexities involved, the Central Board of Excise & Customs (CBEC) created a 4-member adhoc project team. The team anchored focussed interaction with all stakeholders and contributors at the policy-level, systems level and also at the operational level. It played a role in putting together the requirements for software development and acted as a link between policy, IT and operational implementation.

Above all, the team ensured that there are no ‘blank-spaces’ at the work-program. Instead of talking about individual roles, I would like to put the spotlight on the project resulted in the teaming-up of number of government departments, policy leaders and specialists.

How will this initiative benefit the importers and exporters?

By speeding-up clearance and promoting transparency, SWIFT will reduce costs and time of clearance of import and export cargo.

It will anchor paperless procedures and use self-service, ushering in a new paradigm of Cargo clearance process involving minimum human contact.

Electronic Data Interchange (EDI) is very important as it is the only way by which the customs clearance system can be transparent and quick.

Has it been accepted and adopted by the concerned authorities in India?

EDI has been operational in India’s Customs clearance environment since mid 1990s. It was deepened in the year 2000 with the introduction of the Indian Customs Electronic Commerce Gateway (ICEGATE). EDI became further streamlined with the centralised Indian Customs EDI System (ICES 1.5). Around 100 different types of EDI messages are in operation covering Customs reporting, banks payments, logistics (air, rail and sea), regulatory licenses and statistical reporting. The stakeholders in India have elected to follow proprietary messaging standards, and all participating agencies have by and large accepted and implemented EDI messaging. With the introduction of EDI, there should be a corresponding elimination of the use of hardcopy documents. With the introduction of digitally signed EDI messages, the department will be pursuing a paper-free interface.

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guest column

The Sagarmala Project & Hub-nSpoke model to skilling

By Anand Trivedi

‘This very year in March, the Union Cabinet gave an ‘in-principle’ approval for the concept and institutional framework of Sagarmala Project.

As the note released by the Union Cabinet said – “The prime objective of the Sagarmala project is to promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively. Therefore, the Sagarmala Project shall, inter alia, aim to develop access to new development regions with intermodal solutions and promotion of the optimum modal split, enhanced connectivity with main economic centres and beyond through expansion of rail, inland water, coastal and road services.

The Sagarmala initiative will address challenges by focusing on three pillars of development, namely (1) Supporting and enabling Port-led Development through appropriate policy and institutional interventions and providing for an institutional framework for ensuring inter-agency and ministries/departments/states’ collaboration for integrated development, (2) Port Infrastructure Enhancement, including modernization and setting up of new ports, and (3) Efficient Evacuation to and from hinterland.

The Sagarmala Project intends to achieve the broad objectives of enhancing the capacity of major and non-major ports and modernizing them to make them efficient 66 CargoConnect - August august 2016

The Sagarmala Project therefore intends to achieve the broad objectives of enhancing the capacity of major and non-major ports and modernizing them to make them efficient, thereby enabling them to become drivers of port-led economic development, optimizing the use of existing and future transport assets and developing new lines/ linkages for transport (including roads, rail, inland waterways and coastal routes), setting up of logistics hubs, and establishment of industries and manufacturing centres to be served by ports in EXIM and domestic trade. In addition to strengthening port and evacuation infrastructure, it also aims at simplifying procedures used at ports for cargo movement and promotes usage of electronic channels for information exchange leading to quick, efficient, hassle-free and seamless cargo movement.”

This project is mainly aimed to address the lacunae in the port infrastructure and logistics as rightly indicated by this contrast – While the ports sector contribute to 90 percent of India’s total EXIM trade volume while its relative contribution to the GDP is only 1 per cent as compared to 9 per cent for railways and 6 per cent for roadways.

Eventually, this project is expected to see investments to the tune of $10 billion and apart from multiple smaller projects, six mega ports have also been planned under this project.

An Indian Express article rightly covered this pictorial representation of the project – So, very clearly, the importance of this project in the future growth and development of EXIM trade and EXIM logistics in particular cannot be understated! And indeed, what this will entail for the role of skill development in ensuring well-trained supply of human resources to support this project is also an important factor to be addressed.

Hence, in this context, it would be important to reflect on how exactly we can create a large pool of skilled workers to not just support the potential capacity addition through ‘Sagarmala’ but also be well equipped to manage the technological improvements being brought in through investments in these projects.

I would focus in this article on the approach that can be adopted to address the first part – the quantitative component of the skilling problem in the context of the Sagarmala project. I think the time is just right to launch a wide scaled implementation of a ‘Hub-nSpoke’ model of training the human resources to address the issue.

Before we discuss the model in detail it would be important to look at what approach would one adopt to sourcing of the raw manpower in the first place to address this issue. In the above design, it would be noteworthy to see that except for few major cities like Mumbai, Chennai, Visakhapatnam, etc. most of the towns are such where these ports have been and post capacity addition and technological rejuvenation, shall continue to be the major source of employment. Hence, for someone coming from the non-coastal parts of the country, their willingness to migrate to these smaller port towns would be less. In such a scenario, the best route to sourcing raw manpower would be the nearby regions of these towns and placing them locally in the organizations operating in ports and logistics sectors in these areas.

What this leads to is very interesting. While the local populace might be the best source of raw manpower to further train the relatively smaller requirements in these towns, compared to the major cities who may not give volumes for input to training to build large skilling facilities with state-of-the-art technologies to facilitate the best of the training and skill development implementation since in skilling, building quality with scale in a concentrated geography is certainly easier. And so, there comes the importance of ‘Hub-nSpoke’ model of skill development.

So, what is being proposed is creation of small preliminary training centres (PTCs) in these smaller port towns, acting as spokes, linked to bigger, Skill Development Centres (SDCs) acting as hubs.

These hubs can be regional hubs located in major nearby port cities or in some cases, to the nearest major cities in the inland area. These spokes would act to implement mainly the function of Mobilization and Preliminary theoretical contextual trainings.

They would then connect to the hubs wherein the students would be given: (a) Exposure to the core theoretical concepts of their job

The local populace might be the best source of raw manpower to train the relatively smaller requirements in port towns, compared to the major cities who may not give volumes for input to training to build large skilling facilities with stateof-the-art technologies to facilitate the best of the training and skill development implementation since in skilling, building quality with scale in a concentrated geography is certainly easier

roles through video conferencing tele-learning facilities and (b) Actual visit to the hub centres for practical trainings in advanced labs with simulators and related training technologies. So, the hubs are where all the theoretical as well as practical expertise would be embedded.

Post this enhanced training, the trainees would be linked to organizations operating in their respective small port towns to undergo onthe-job training or internship. This could close the hands-on learning experience component of their training. While the local coordination with these organizations would be through the spokes, the hubs would be responsible for running what can be called an ‘industry interface cell’ to build and maintain relationships with the large corporates at the top management level. Doing this for hubs would be easier too, given their local presence in the major port cities and their professional abilities to liaise at that level.

Having undergone the OJT or internship, the trainee can then be absorbed either in the same organization or in another organization that is locally operational. This way, by splitting the training capacity between preliminary and critical components and separating it out across spokes and hubs can create an immense impact on enabling skill development in terms of scale and quality. Also, by sourcing locally, the migration related socio-economic adverse externalities can be avoided.

Hence, to summarize, while ‘Sagarmala’ Project will go a long way in creating port and logistics sector related jobs, a ‘Hub-n-Spoke’ based skilling model will be imperative in ensuring the implementation component to meet the trained human resource demand.

(The writer is the Management Consultant with JBS Academy and Contributor to JBS Knowledge Centre)

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guest column

Centrality of Connectivity in Adaptive Responsive Supply Chain

By Dr Lai Ving Kam

‘Make in India’ is envisaged as a significant strand of strategy for Indian economic revival, where the sustained growth experiences a boost in India’s manufacturing capabilities. As it embodies the manufacturing-led exporttrade growth model, it has to be situated and understood in the context of responsive global supply chain systems. There is a market change that favours India and South Asia. Dependence on United States and Western Europe as major market is on a perpetual decline. Interdependence of Asian economies is rising. Mainland China has become the most important export market and the coming of ‘Make in India’ will transform the topography of the global and regional business! Though, India has achieved notable ground in supply chain advancement, it must still look at the repercussions of rapid product and technology mutations, higher market volatilities and criticality of appropriate systems and methodologies in delivering market resilience and sustainability.

Present Market Scenario

Achieving notable ground in supply chain advancement, India must still look at the repercussions of rapid product and technology mutations.

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The focus is on fundamental connectivity through efficient logistics, transportation system and processes as well as its centrality in adaptive responsive supply chain (A-RSC) amidst market uncertainty that persists to be more vulnerable. In the industry landscape of the existing, fast-changing products, which is strewn with activities that are volatile, often products were non-repetitive and rapidly changing such that one had to make use of adaptive supply chain connectivity management framework, that can capture the interplay of forces, thus shaping the new-found Indian industrial movement. Even if global production were to shift to India due to favourable wage-labour arbitrage, skilled work force, etc., high logistics costs and longer supply chain would negate any low cost production advantage.

Global and regional industries are facing greater pressures from market volatility with shorter interval of new add-ons, product introductions made easy by open technology platform proliferation and greater connectivity of supply chain.

Consequently, responsive supply chain needs to be much more adaptive and agile in sustaining business and market share, in order to be resilient. Regardless of the industry, size of firm or type of operations, business managers will be constantly challenged to get the maximum productivity out of the supply chain connectivity to sustain the business. This is the weakest link in India. In the current turbulent times, many suggest that firms require new sets of imperatives, such as alignment of market and entrepreneurship orientations, if they are to be successful in product innovation with competitive cost. But, this has to be supported with superior connectivity in supply chain.

A-RSC Impact on the Supply Chain In A-RSC, with ever soaring dynamics, it is critical to fully grasp the structural comprehensiveness, responsiveness and agility of logistics and transportation system to avoid structural incoherency and non-consistency. Particularly, the market must take supply chain architecture as a whole, with its key functions in

The figure below depicts the ever increasing global competitions that must be a concern for India.

adept materialising sustainable market share and position. Is A-RSC process in India mainly a result of deliberate, carefully planned and managed deterministic competitive strategy in logistics and transportation? Or does it just evolve through an incremental experiential process, by undergoing a sequence of stages towards a more resilient and reliable supply chain? Or logistics and transportation is just another utility in A-RSC with little strategic value in India? While the rest of world is speeding up, what can India and South Asia do to catch up or attain the leadership position?

Innovation and re-engineering of supply chains in order to be adaptively responsive will contribute significantly to India’s aspiration of becoming one of the global manufacturing powerhouses. The picture of emerging market and developing economies is diverse, but in many of the cases, it has proved to be challenging. Lower commodity prices and strains in some large emerging market economies will continue to weigh on growth prospects in 2016-17. The slowdown and re-balancing of the Chinese economy fountainhead of the world’s biggest global supply chain is set to shed much of its low-cost manufacturing. This will open up the door for India to

take positive position. India and particularly ASEAN are likely to benefit from the relocations of low cost work.

Lower commodity prices and strains in some large emerging market economies will continue to weigh on growth prospects in 2016–17.

China’s strategy to build infrastructure along its new silk road or ‘One Belt, One Road’ project, foreshadows the global supply chain’s expansion into relatively newer territories. How is India preparing to re-engineer its logistics processes in the wake of slowdown and increased levels of competition

with China, which is adamant to maintain its leadership position?

Way Forward India has to realise that it is not in the right pathway of efficient maritime supply chain route. Distances impact logistics costs and lead time. Apart from the questionable investment incentives and policies, what have transpired in India? Is it the absence of efficient yet adaptive supply chains where exists the key factor? Is it the location of the supply chains? Or, is it just part of natural development in the time-compressed competition.

Will India be on the right path? Can India re-strategise to become one of the next manufacturing centre of the world, in the period between 2025-2035? Will China successfully re-engineer to maintain its strategic status?

Can ASEAN countries, considered as an important trade alliance, which is now the third largest in the world after the European Union and the North American take huge shares of manufacturing? The increasing level of regionalisation away from globalisation of markets has drastically changed the competitive environment for most firms and countries.

Not only in foreign markets but also in their home market they are confronted with intensive price, time and quality competitions.

Will globalisation give ways to regionalisation? Whatever the future trends are, to stay competitive, the country and firms have to re-structure their supply chain and business organisation, including their innovation activities and consumer focus to be adaptive and responsive.

India has to build new and harness the existing ineffective infrastructure to springboard and provide full service from product conception-definition till drop-ship to customers deploying adaptive responsive supply chain. Are there supply chains in India that can support the nurturing of Indian firms in Original Design Manufacturing to capture the existing market trends? Are there continuous business process improvements, especially, the outsourcing business functions beyond manufacturing operations? It is a test of the wisdom of Indian government and the business community. Superior connectivity in adaptive responsive supply chain will be the determining factor.

(The writer is the Associate Professor and Head of Programme, Logistics and Supply Chain Management, Berjaya University College of Hospitality, Kuala Lumpur, Malaysia)

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shippers speak

LEAN is IN How important is the logistics for your overall growth?

Supply chain is the backbone of our business. We cannot make a network site up & running without all material being installed & commissioned at our network sites. We can not deliver a service if we don’t have the equipment available. If we have to deliver a service of a home broadband, we will require 14 Stock Keeping Units (SKUs) to be installed at your home & more than 100 SKUs for different kind of network sites. To summarise, manufacturing companies assembles the components/parts at one location, which is the factory to produce the product, while in telecom we have multiple locations, especially roof top of a building to assemble our components to deliver the service.

Is there any unique/specific strategy that you have adopted for better supply of products?

Counted as the winner of BWA (4G-LTE) spectrum in 5 circles & with class A ISP license for PAN India, Tikona is innovating in the world’s largest outdoor Wi-Fi network using eco friendly small cell technologies & providing broadband service to home as well as SME &corporate customers.

Amit Pandey, Senior Vice President, Head-Procurement, SCM, HR & Admin at Tikona Digital Networks Pvt. Ltd. in an interview with Sana Husain shares the streaks of his success in Tikona after applying his experiences to the field of Supply Chain from his major stint in Honda Cars India Ltd

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Starting around seven years back, we have launched LEAN Supply Chain model, which is launched for the first time in the telecom sector & we started practicing all tools of LEAN like 5 ‘S’, Kaizen, Elimination of Muda (waste), Pull model, JIT inventory, DST PDCA, Poka Yoke, Jidoka, etc. We took three years to implement this and it has resulted into remarkable achievements in our Supply Chain KPIs as well as outstanding contribution towards our top line & bottom line. That’s how it has received 80 awards in Procurement & Supply Chain in last 4 years in India as well as abroad. From the past four years, we are winning the best telecom company in the supply chain aspect. Our case study is very popular in the Indian MBA institutes.

We have one being written in IIM Udaipur and second is in the process in Symbiosis Institute of Operations Management, Nasik. Also, we are working with the colleges in France, London and Singapore to launch our case study for the benefit of our next generation supply chain professionals.

How do you ensure smooth coordination between suppliers, transporters and other departments?

The most critical factor for successful implementation of any innovation, is called relationship management. We strongly believe that and hence respect that as part of our entire supply chain process. We have multiple suppliers who are our partners in managing our business operations. We strongly believe in doing a multiple analysis while selecting a supplier, but once selected, we create a long term partnership model and run it successfully.

That’s how all my top 30 suppliers in terms of spend management are on single sourcing methodology. They have been our partners for six to seven years. We work on a long-term partnership model. Even on transportation, we are certain from Day 1 that a single transporter can handle our entire secondary FTL transportation. In other departments, we work towards cross functional collaboration model & jointly work towards multiple innovative projects to achieve organization goal. In Lean Supply Chain model, we have done around 312 innovative projects in the entire supply

LSPs have a huge scope in the entire telecom industry where logistics can provide an end-to-end management, be it warehousing, supply transportation or courier expertise. Telecom sector receives a lot of support from the LSPs. chain, procurement & logistics, with the help of other departments, suppliers and transporters to reach this level. We keep working on improving our JIT inventory model & we have improved 6 folds in our inventory turns from 4.3 to 26.1 in last 7 years. Additionally we also monitor 52 Supply Chain KPI as part of our monthly report. Our LEAN supply chain case study comprises of >500 PPT pages. Even many times, we also present our case study with other companies’ supply chain team in order to promote cross organizational, best practices-sharing program.

How do you manage your logistics network and supply chain management system in terms of creating value for customers?

We work on both primary and secondary logistics process, the model we cal l internally is MRP (Material requirement Planning ) & MDP (Material Distribution Plann ing). For example, we have 13 warehouses across various locations and 120 ISPs (Installation Service Partners). In MRP model we monitor PR to PO to delivery from suppliers to receive material at warehouses & in MDP model, we monitor warehouse stock management, distribution to ISP, ISP stock management, capitalization & proper accounting / reconciliation of every SKU. Supply chain plays a major role on creating value to our customers be it new installation or even sometime replacement of equipment.

Considering supply chain management and logistics as a critical success factor in your industry, what is the scope for Logistics Service Providers (LSPs) in this regard?

I think LSPs have a huge scope in the entire telecom industry where they can provide an end-to-end material management solution be it warehousing, transportation, courier expertise as well as reverse supply chain.

Telecom sector receives a lot of support from the LSPs due to high value of quantity transactions & that too in every city they provide the services.

What are your expectations from LSPs? Could you please specify names of your LSPs? We work with different and multiple LSPs and have contracts with companies like Fedex, Om Logistics, and Blue Dart for part load movement & for dedicated full truck load movement with Seagul Logistics. The warehousing contracts are with Seagul Logistics, Future Supply Chain, Agile Logistics, Fly High Logistics, Shivans Logistics, Indo Arya, etc. My simple expectation from the LSP is for them to understand why and what we are doing differently. Simply put, they just need to do what’s profitable for our partnership. Our entire model has been designed as per the Japanese Automobile Companies, That’s how we have implemented LEAN supply chain model at Tikona to do telecom business with automotive process.

What percentage of your logistics work is outsourced? What functions are performed by your logistics partners and what are controlled internally?

All our warehousing operations are semioutsourced, where manpower & facility is being provided by the LSP while entire process management is controlled & managed by Tikona Supply Chain Team. As

far as the transportation is concerned, it is a fully outsourced model.

How do you manage Reverse Supply Chain?

We manage our reverse supply chain exactly the forward supply chain way due to the extremely high value of transactions.

Our business demands a very high level of customer expectation management, while in other services a customer uses their services 5-10 times in a month but when it comes to Internet at home, they use 5-10 times in a day or even for the entire day, internet is utilised at home. Our reverse supply chain mainly manages the return material from customer premises or our network sites & then it goes to entire reverse flow to get it rechecked, repaired, refurbished & then reused through forward supply chain process.

There are various problems that every company faces during its supply chain process; can you briefly tell the ones that your company faces and how you have managed to overcome these problems?

We believe that every new challenge is a new opportunity to improve. It wasn’t easy task to replicate LEAN supply chain model across organization with multiple locations.

The biggest opportunity we had was to influence entire team to get passionate towards implementing LEAN supply chain model in a telecom company.

I am personally a true believer of Soft Skill management over domain expertise, as the best idea can be killed easily if it is not being handled properly. Finally it’s not important WHAT we are doing; what’s going to make the difference is HOW we are doing it.

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news

Customs clearances to get paperless from 2017 C u s t o m clearances will become easier from the next year as the CBEC is planning to go paperless and move towards a completely integrated Customs system for facilitating documentation and fast-tracking clearances of consignments. The Central Board of Excise and Customs (CBEC) is planning to rope in more government agencies under its SWIFT

mechanism, which replaces nine separate documents with one common electronic declaration. “In another six months, we are planning to go completely electronic for Customs clearance by doing away with requirement of any physical documents.

We are planning to create a web repository” Additional Director General (Customs) S K Vimalanathan said. The CBEC will float a ‘Request For Proposal’ within three months inviting IT companies to integrate the customs system which currently uses three softwares for faster clearance of

goods. The CBEC has substantially brought down the documentation requirements and now importer are required to file only three documents-Declaration of Goods, Invoice and packing list-at the time of Bill of Entry. Earlier, importers had to file 18 such documents. The SWIFT clearance mechanism brings in six government agencies-FSSAI, plant quarantine, animal quarantine, drug controller, wild life controller bureau and textiles committee-on a single platform. This has eliminated need for importers to interact separately with these agencies.

Govt moots online system to ease cargo movement The Ministry of Road Transport and Highways is working on an IT-based plan to make cargo movement across states hassle free and to get all the permissions with the click of a mouse.

The plan involves putting in place a robust information communication and technology

system which will enable logistics operators to submit all applications using a single window and also get the necessary clearances. It also proposes a mechanism to enable logistics players to get real time details of traffic condition on different stretches. Sources said

the ministry has received a preliminary report of a study that has been conducted with the help of World Bank. “Since the success of such a plan is highly dependent on the interest taken by the state governments we need to consult them before going ahead,” said a ministry official.

murthy_krishna@ksrindia.net, , Website : ksrindia.org

kskanthan@ksrindia.net , Email : hyd@ksrindia.net

, justin@ksrindia.net

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JNPT ensures safe cargo with tech interventions

Gadkari describes landmark US visit as a grand success

The launch of a container tracking facility at Jawaharlal Nehru Port Trust, the largest container port in India, earlier this month to monitor movement of cargo across the Western Corridor is being followed up with another technology-driven intervention that aims at tracking them from the port all the way till the inland container depots (ICDs), including to the one at Tughlakabad in Delhi. The plan is to use radio-frequency identification (RFID) to monitor container movement and the tracking facility as part of measures to improve the time taken for cargo clearances at the country’s ports. “The plan is in conceptual stage. The idea is to track movement of containers from JNPT to the ICDs,” a senior Central Board of Excise and Customs (CBEC) official said. Earlier this month, a container tracking facility called Logistics Data Services was introduced at JNPT, with DMICDC Logistics Data Services Ltd — a joint venture of the Delhi Mumbai Industrial Corridor Trust and Japan’s NEC Corporation. The facility was introduced with an aim to bring in transparency in container movement and reduction in logistic costs for trade and industry.

Union Minister of Road Transport, Highways and Shipping Nitin Gadkari concluded his weeklong whirlwind official visit to the U.S., successfully extracting assurances from infrastructure and investment companies to provide the necessary technical expertise as well as capital to further boost the robust Indian maritime, roads and highways sectors.

Gadkari held a series of productive interactions with investment bankers, fund managers and captains of trade and industry in infrastructure sector at business platforms in Washington, New York, San Francisco and Los Angeles, and placed on record convincing statistics of the rapid growth of this sector under the dynamic leadership of Prime Minister Narendra Modi, which the potential American investors found highly exciting and rewarding.

DHL to set foot in Indian e-commerce sector India’s booming e-commerce sector has enticed the attention of International logistics giant DHL. The company announced plans to tap the burgeoning B2C ecommerce space in India, on the back of a multi-pronged strategy developing low-cost solutions, a customer-centric first-and last-mile connectivity, geographical reach, and on-time delivery.

E-commerce chief executive officer Charles Brewer said, “We intend to become the provider of choice for the e-commerce sector in India. We already have a domestic delivery company, Blue Dart, and over the coming months, we intend to build market-leading solutions for the B2C ecommerce sector.”

Explaining the difficulties of the e-commerce sector, Brewer said that among the challenges in the B2C sector, is that 90 per cent of all deliveries are made to residential addresses, and the cost-effectiveness of the delivery must be maintained. “The biggest test yet is on improving delivery success rate — ‘how to get the shipment delivered the first time itself’,” he said.

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Gujarat has infrastructure projects with maximum value under operation in PPP mode across India: Study Gujarat has the highest share of 15.5 per cent in infrastructure projects with a total value of over `1.6 lakh crore that are under operation in the public-private partnership (PPP) mode across India and is followed by Uttar Pradesh (13 per cent), Maharashtra (13 per cent), Tamil Nadu (eight per cent) and Karnataka (seven per cent) in this regard, noted a recent ASSOCHAM-SREI joint study.

Of these, about 650 projects worth over `4.5 lakh crore with about 67 per cent share are there in roads and bridges followed by over 100 projects in ports sector (12 per cent share) with an investment worth over `80,700 crore, energy (six per cent) with over 150 projects with investments worth over `41,000 crore, SEZ (five per cent share) with investments worth over `30,000 crore, water sanitation (2.6 per cent) and others.

Airports Authority of India plans subsidiary to handle cargo Air cargo handling is expected to become efficient at Airports Authority of India (AAI)-owned airports, including Chennai, as the authority plans to hive off cargo operations and set up an logistics subsidiary called Air Cargo Corporation. The move for a subsidiary has got informal approval from the AAI board. Sources said AAI higher-ups believed that a separate entity with a dedicated staff and hierarchy would help boost cargo volumes. “A corporation will have its own structure, it will be able to rope in professional expertise, plan infrastructure development. It will also make cargo units of AAI-run airports equipped to compete with private airports,” said an official.

However, a few officers feel it may impact the revenue of the public sector airport operator which earns 200 crore from cargo annually.

Skyways Group launches new logo

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Skyways Group, a leading Freight Forwarding Company, launched their new logo at their Annual meet on the 7 th July 2016.The Annual meet of Skyways group was held with about 125 attendees from all across their offices in India and special of their guests from S.L Sharma their global partners in UK, HK and UAE. The meet also had Mr.Tushar Jani, Chairman, DCSC, as one of the guest speaker. Skyways, in its first two decades of existence was, and known as an Air Freight Company.

As the logo of an organization symbolizes the essence of an organization, the old logo had an airplane, which showcased their primary focus, Air Freight. But, Skyways has now evolved itself and is a complete LSP, covering other products, such as Ocean Freight, Warehousing, Fairs handling etc., thus decided to change the logo. The new logo is different yet similar to the previous one. The birds in the new logo signify freedom, growth and endless opportunities. The Logo was launched by the Chairman/Managing Director, Mr. S.L Sharma and their international partners at the opening ceremony of the meet. A digital launch also followed the physical launch of the logo.

news

Air cargo volumes dip in N.America, Asia

Air France-KLM opens new cargo facility at JFK

The air cargo business in North America and Asia has taken a hit this year, as retailers and manufacturers shift shipments toward lower-cost modes of transportation. For the first five months of this year, airlines based in the Asia Pacific region carried 3.4 per cent less cargo compared to the same period in 2015, according to the latest data from the International Air Transport Association. Cargo on North American airlines fell 2.3 per cent over the same period. Air freight volumes got a bump early last year as seaports along the U.S. West Coast experienced heavy congestion during union contract negotiations. Asian exporters turned to air routes for reliable shipments to U.S. manufacturing plants. But that growth was short-lived. By late spring 2015, after a new contract was signed and a backlog of cargo ships was cleared at the West Coast seaports, delays eased up and cargo shifted back to its usual patterns. The market now has a glut of capacity, with large air-freight carriers competing with rapidly expanding, low-cost operators out of the Middle East, including Qatar Airways, Etihad Airways and Emirates Airline. In the first five months of 2016, freight grew 5.9 per cent among Middle East airlines, according to IATA.

Franco-Dutch airline venture Air France-KLM Cargo has opened the doors to its improved freight handling facility at New York’s biggest and busiest airfreight gateway, JFK. The upgraded facility can handle a wide range of freight types, including pharmaceuticals, valuables, live animals and express shipments, in addition to general cargo. It incorporates discrete cool-chain areas, one of 72 cu m for cargo stored at between 2 and 8°C, and one of 108 cu m for cool-chain freight maintained at a steady temperature of between 15 and 25°C. The facility also offers 10 charging points for active temperature-controlled containers. A strongroom is available for storing valuable shipments in safety, while the facility is in the same building as JFK’s ARK – set to open for business this autumn, the ARK will offer boarding, veterinary and quarantine services for the import and export of live animals through the airport. For more general cargo operations, a ULD ‘roll-through’ option allows for rapid acceptance and processing of containers, while a specific entrance for express shipments is designed to allow these shipments to be handled with the speed required. The upgraded facility has 50 per cent more truck dock doors and ample space for up to 53-ft trailers to manoeuvre and park on the landside area of what is known as Building 78.

Hyperloop technology could be used to ship cargo across Russia

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Warehouse on lease basis The Russian Direct Investment Fund, established on the government’s initiative for investing in large infrastructure projects in the country, made an unusual investment in June.The foundation, along with international venture companies Sherpa Ventures, Formation8 and ZhenFun, invested in the Hyperloop One project. The new technology promises to transport passengers and cargo at a speed of up to 745 mph in special capsules through tubes with low pressure. During initial testing in Nevada in May the capsule was able to move only at a speed of about 75 mph. Nevertheless, Russian President Vladimir Putin supported the project and Transportation Minister Mikhail Sokolov promised to introduce the technology to transport cargo in the Far East. In his words, containers could be shipped from China to Europe through Russia in just one day using the technology.

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Adani Ports to complete terminal expansion at Mundra next year

Lufthansa quality offered for pricesensitive cargo

Adani Ports and SEZ (Special Economic Zone)aims to complete expansion of Adani International Container Terminal (AICTPL) at Mundra port by 2017 to create a transhipment hub for the Middle East, South Asia and India.The strategy is part of Gautam Adani-led Adani Group’s plans to develop a world-class portfolio of ports and allied logistics facilities to capture the benefits of the country’s emergence as a global container transhipment hub. AICTPL is a joint venture with terminal investment (part of Swiss-based Mediterranean Shipping Company, the second largest shipping liner in the world).

Lufthansa Cargo is going on the offensive in the highly competitive air cargo market. td.Basic, a new online offering for standard air cargo, will be available from September 2016.

It offers high Lufthansa quality at extremely attractive prices.

As a result, the Lufthansa subsidiary’s new basic product will be suited to any shipments where the customer is happy to accept a transit time of three days more on average than with the familiar td.Pro standard product, which will still be offered.

“We are now adding a price offensive to our long-standing quality offensive. Our customers will be able to benefit from Lufthansa quality with particularly price-sensitive cargo as well from September. With this innovative basic offering, we are enhancing our product range and charting a path for growth in the standard cargo segment”, said Dr Alexis von Hoensbroech, Board Member Product and Sales at Lufthansa Cargo. “This means we will be giving our customers even greater influence over the speed and price of our transport services”, said von Hoensbroech. The new product is part of the company’s new CARGO EVOLUTION strategy, with which Lufthansa Cargo is hoping to advance digitisation and become the number one in the world for air cargo services, amongst other things.

Kolkata port set to start coastal shipping of cars

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VOL VII ISSUE VIII JULY 2016 `20

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Come August and East India may see a first-of-its-kind initiative in the zone, when the automakers will start transporting cars through the Coastal Shipping route. In this endeavour, after several rounds of talks between KoPT and Hyundai, the port authorities have drastically brought down the port charges (wharfage rate) from INR 2,796 per car to only INR 700. These cars will be loaded from the Chennai dock on a Ro-Ro (Roll On-Roll Off) vessel to land either in Kolkata or Haldia Port from where they can be further distributed to their respective destinations. The Kolkata Port Authorities are also in talks with Ashok Leyland and Honda for the same model.

It will become further viable, with the Central Government planning an INR 3,000 incentive for the carmakers to transport cars via seas. According to a KoPT official, although such cargo movement via the maritime route takes more time, more cars can be transported at one go, which reduces the logistics cost.

It also helps in reducing the traffic congestion on highways, besides bringing down the carbon footprint.

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news

UPS expanded its Worldwide Express package service UPS now reaches 117 countries across the world.

The new countries include Cambodia, Albania, Dominican Republic and Myanmar. Depending on the destination, the service offers a guaranteed next day delivery by 10.30am, 12pm or 2pm.

“UPS invests in capabilities to expand our connections to global markets to help our customers,” said Jim Barber, UPS international president. “This service offers superior global reach for the most urgent shipments. With this latest expansion, the coverage area totals 117 countries, which comprise nearly 95 per cent of the global gross domestic product, and 96 per cent of real imports,” he added.

Logistics parks for `30,000 cr to aid cargo flow, cut costs The government has prepared a road map for setting up 15 multi-modal logistics parks around major cities, which have a share of about 40 per cent of country’s freight movement by road. With an estimated investment of `30,000 crore, the project aims to make transport of cargo faster, reduce cost and improve the supply chain, key for taming inflation.

In a concept note titled ‘Logistics Efficiency Enhancement Programme’, the road transport ministry has identified Delhi-NCR, Mumbai, north and south Gujarat, Hyderabad, south and north Punjab, Vijayawada, Kochi and Chennai as some of the major transport nodes for this project in the first phase. This is part of a study funded by the World Bank. Logistics parks, act as hubs for freight movement enabling cargo aggregation and distribution. Freight from production area will be shipped to nearby logistics parks where it will be aggregated and transported to a logistics park near the consumption zone on a larger vehicle. Freight arriving at the destination logistics park will be disaggregated and distributed to the consumption zones inside the city, according to the government paper. Logistic costs in India is higher at 13-14 per cent of the value of goods against 7-8 per cent in developed countries. This is due to several inefficiencies including smaller and inefficient trucks resulting in lower average speed of 25-30 kmph, which is 50-60 per cent less as compared to the US.

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APPOINTMENTs

Lambusson appointed as Gefco Executive VP GEFCO Group announces the appointment of Anne Lambusson in the PSA Contract Division Management. She is also a member of the Executive Committee. With a twofold experience in rail transport and automotive sectors, Anne Lambusson combines industrial expertise and business units’ management skills which she developed in international environments. She will be replacing Paul-Henri Fréret in the PSA Contract Division Management as he will be taking over the ASOR area Management (East Asia) as Executive Vice President.

Previously Regional Managing Director for SNCF network RhôneAlpes and Auvergne, Anne Lambusson managed large infrastructure projects dedicated to the renewal and modernization of the rail network, in line with the new mobility needs. Beforehand, Anne Lambusson was International Operations VP for Keolis, SNCF Group subsidiary. She was in charge of the operations and the launch of new public market concessions and participated to international calls for tender. The activity of the seven subsidiaries she was in charge of developed significantly during that period.

Allcargo Logistics announces Adarsh Hegde as Joint MD Logistics firm Allcargo has appointed Adarsh Hegde as Joint Managing Director. Allcargo Logistics Ltd. a part of the Avvashya group announced that Adarsh Hegde has been elevated as the Joint Managing Director with effect from July, 1st 2016. Hegde has been with the company since its inception in 1993 and has played a key role in Allcargo’s growth story.

Allcargo founder and Chairman Shashi Kiran Shetty said, “Adarsh’s aptitude and contributions have been invaluable to the Allcargo growth journey.”

As the Joint MD, Hegde will oversee the business of container freight services and container depot facilities, project forwarding and engineering solutions, E-commerce logistics, coastal shipping and contract logistics. In addition, he will continue to play a key role in overall group governance and business development.

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events

Third SIAM Automotive Logistics Conclave focuses on Infrastructure creation and capacity building Society of Indian Automobile Manufacturers (SIAM) organised the 3rd Automotive Logistics Conclave in New Delhi. The conference was themed as ‘Optimizing operational efficiency in automotive logistics’ and saw participation from over 150 delegates from government, the logistics and automotive industries. The seminar focused on countering challenges faced by the Indian outbound automobile logistics operators, calling for support from the government coupled with industry participation.

Speaking on the occasion, Vinod K Dasari, president, SIAM and MD, Ashok Leyland, said, “The automobile industry has been playing an important role in the economic development of the country, contributing 7.1 per cent to the GDP. We are keen to find out alternative ways like railways and waterways which will bring the advantage of lesser emissions and also add a safety factor.” Commenting on the significance of promoting other modes of transportation Prem Verma, Chairman, SIAM Logistics group & Chief Executive Officer-TML Distribution Company Ltd said, “At present more than 95 per cent of vehicle movement in India is through road transport. With the automotive industry expected to grow at a double digit rate in the next decade it is imperative that the reliance on road transport short be minimized and considerable emphasis be given to other modes like railways, inland and coastal shipping.”

Bipin Menon, Director, Ministry of Commerce and Industry said, “Cost is one of the biggest challenges faced by the logistics industry and measures to counter it will be crucial for the growth of the sector.”

Government framework coupled with industry participation will be the key to countering various issues faced by the Indian outbound automobile logistics, says a report launched during the event. The onus will be on the government to create a favourable environment for the industry to grow.

Avashya Foundation undertakes a Tree Plantation drive Allcargo Logistics, India’s leading integrated logistics provider, through its NGO Avashya Foundation in association with Grow-Trees.com, has undertaken a noble cause of tree plantation at Chintamani, Karnataka. Under this activity Grow-Trees.com will plant 2857 trees in Chintamani area on behalf of ECU Worldwide – Allcargo’s international subsidiary that was recently re-branded. This initiative also forms a part of project Maitree, Avashya Foundation’s unique environment sustainability and conservation program launched in January 2016.

Krishnapatnam Port commended by CII for excellence Krishnapatnam Port, the country’s largest all-weather; deep water port on the east-coast has been recognized as the key engine driving economic growth for Andhra Pradesh and as a harbor that has set new efficiency and operational benchmarks for the Indian port sector. The recognition comes from India’s renowned industrial body – CII at its SR Excellence Awards for 2015-16 held in Chennai on July 8, 2016. Krishnapatnam Port won two awards including the First place in EHS Practices under the Infrastructure Sector category among almost 120 participating companies. EHS activities at the port have always played a pivotal role among its operations which has helped the company gain recognition as a Green and a Safe Port. Its EHS

programs encourage continuous improvement in environmental protection by including aspects such as Waste management, Water management, Pollution control, Resource conservation, Best management practices and usage of Renewable resources among others. The sustained efforts and the company’s philosophy has led the port to be certified in • ISO14001: 2004-Environment Management System • OHSAS 18001:2007-Occupational Health & Safety Management System Beyond such efficient operational and economic considerations, a focused drive of Krishnapatnam has lead to a ‘Sustainable and Inclusive’ growth for the adjoining region.

august 2016 - CargoConnect 85

events

Shri Nitin Gadkari launches the TCI IIM report The Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari launched the TCI IIM Calcutta joint study report on the operational efficiency of freight transportation by road in India in New Delhi today. The report is based on a study commissioned by the Transport Corporation of India (TCI), of 28 routes in the country over the period 2014-15.

Speaking on the occasion Shri Gadkari said that he would soon constitute a group within the Ministry to study the report and implement its recommendations. He said that his Ministry has taken many steps to facilitate safe, seamless and efficient transportation of people and goods by road. On the safety front engineering solutions are mandatorily being incorporated into road designs to make them safer, accident black spots are being rectified, safety standards are being set for automobiles, issue of driving licenses is being computerized and training centres are being set up for drivers. A Group of Ministers is working to

finalize ways and means to make road travel in the country safer, and will submit its report shortly. To cut down delays due to stoppage, Electronic Toll Collection is being brought in soon. 380 Toll Plazas have been equipped for this.

Building roadside amenities, green highways, widening of National Highways, conversion of State Highways to National Highways and ensuring speedy construction are other steps that are being taken to make road transport efficient, he said.

The Minister also informed that his Ministry is actively working to promote transportation of freight through waterways, as this brings down logistics cost drastically. He informed that in China about 47 per cent of the freight is carried through waterways, in Japan and Korea it is about 43-44 per cent and in European countries more than 40 percent. In India only about 6 percent of the freight is carried through waterways.

Qatar Airways Hosts Bollywood

TM

Qatar Airways was proud to be the official airline partner of the 17th International Indian Film Academy (IIFA) celebrations in Madrid, attracting leading celebrities from the Indian and International film fraternity. The award-winning airline played an important role in flying distinguished members of the Indian film industry as guests on board Qatar Airways to Madrid, including leading celebrities such as: Sonakshi Sinha, Bipasha Basu, Fawad Khan, Abhay Deol, Neil Nitin Mukesh, Vivek Oberoi, Subash Ghai, David Dhawan, Gulshan Grover and many more.

events

TeamLease Skills University and JBS Academy Conduct joint Certificate Course JBS Academy and TeamLease Skills University have started a 120 hour program on Customs Clearance and International Freight Forwarding. TeamLease Skills University concentrates on skill development in various verticals offering employable education. The co-branded certificate will help students to take benefits of both the domain knowledge offered by JBS Academy and the skill that a University education offers. All students have been offered internship probability during the program and full placement assistance once the program is over will be given. On completion of this cycle more batches offering different employable education would be offered.

Integrated Supply Chain Management is a necessity The Economic Times presented its 3rd Annual ‘Supply Chain Management and logistics’ Summit which took place in Mumbai. The Chief Guest present at the Summit was Shri Sudhir Mungantiwar, Hon’ble Minister of Finance, Planning and Forest Departments Government of Maharashtra. The Summit saw CEO’s, Director’s, MD’s from leading corporations such as DHL, All Cargo logistics, Flipkart and Mahindra Logistics among others. The Summit discussed the pertinent issues and challenges that the Supply Chain and Logistic sector faces. The panel discussions highlighted the importance of an integrated Supply Chain and the importance of bridging the gap between retail store and online market places. According to a report by Motilal Oswal Securities Ltd., the Indian Logistics industry grows 1.5-2 times the GDP growth. This offers opportunities across the spectrum for companies in transportation, storage, distribution, and allied services. The value of the Indian Logistics Industry is estimated at US$ 130 billion in 2012-2013, but this industry has not received the attention or recognition it deserves. The key growth drivers are rapid growth in industries such as automobile, pharmaceuticals, fast-moving consumer goods (FMCG) and retail. Highlighting the importance of these growth drivers, the event facilitated parallel sessions in which the SCM of Heavy Engineering and Manufacturing, FMCG and Pharma were discussed. The event closed with a felicitation ceremony where the key influencers of the industry were honoured.

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events

SingEx Exhibitions and Franchise India launch inaugural Last Mile Fulfilment India

The Last Mile Fulfilment series launches its first edition of Last Mile Fulfilment India 2016 (LMFIndia 2016) at The Lalit, Mumbai, India today till 23 July. Following the success of its two editions in Singapore, Last Mile Fulfilment Asia (LMFAsia)-the only Asian conference and exhibition to curate an ecosystem-based platform for seamless cross-border last mile fulfilment in Asia – LMFIndia, themed “Accelerating India’s eCommerce through Fulfilment”, focuses on strengthening India’s ecommerce companies’ capabilities especially for fulfilment in the last mile.

According to the A.T Kearney, May 2016 report, 50% of the organised retail will be influenced by digital in 2020. Digital will play a key role in driving customers to buy online which leads to the

growth of the eCommerce industry in India.

The study also highlighted that the e-tail industry (online retail) will move towards service differentiation with some customers willing to pay for select premium services such as faster delivery, hassle-free return and extended warranty.

“With the eCommerce growth and change in customers’ needs in Asia, efficient last mile fulfilment plays a key role in the supply value chain. We recognised these needs hence we launched LMFAsia in 2015 to great success. Hearing feedback from industry on the burgeoning eCommerce activities in India and the need for efficient last mile logistics, we felt that this is the right time for us to launch the LMF series in India.

Together with Franchise India, we aim to curate a trade, networking and knowledge platform to helpeCommerce companies in India progress locally and beyond India especially for fulfilment in the last mile,” said Mr. Adrian Sng, General Manager, SingEx Exhibitions.

DTDC introduces E-Fulfillment Solutions

CONCOR’s-Port Side Container facility launched

DTDC Express Limited, India’s leading logistics solutions provider, today announced the launch of its e-fulfillment services with a mega plan to set up multiple centers all over the country. The service will allow small and medium businesses with handling capacity of 5 lac outgoing orders and 750,000 incoming SKU’s on daily basis to gain access to customers across the country at low operating costs. DTDC also participated in a panel discussion on ‘Transforming Traditional Logistics Business to e-commerce Fulfilment Business’ with Suresh Bansal, Director, DTDC Express. The service aims at managing online orders directly from seller’s websites as well as from multiple domestic as well as international channels such as Lazda, Zalora, Amazon, Flipkart, Paytm, Snapdeal, Jabong etc. The platform is fully integrated with all the major Market Place Operators as well as LSPs.

Krishnapatnam Port, the country’s largest all-weather; deep water port on the east-coast of India has inaugurated CONCOR’s-Port Side Container facility–a Government of India undertaking. The opening up of the Port Side Container facility will ensure the expansion and growth of the container terminal in the port. It will also help keep the quality of the cargo intact and help in safe and efficient transportation.

Suresh Prabhakar Prabhu, Minister of Railways inaugurated the CONCOR’s-Port Side Container facility, the construction of the grade separator and the crew running room at Krishnapatnam Port. The CONCOR has agreed on a Memorandum of Understanding (MoU), with the Government of Andhra Pradesh to initiate 3 Multi Modal Logistics Parks (MMLP), located at Vishakhapatnam, Krishnapatnam and Kakinada.

Krishnapatnam port was most recently recognized as the key engine driving economic growth for Andhra Pradesh and as a harbor that has set new efficiency and operational benchmarks for the Indian port sector.

Venkaiah Naidu, Minister for Union urban development, P Narayana, Minister for Municipal administration, Rajamohan Reddy MP, Varaprasad MP were also there to grace the occasion. The dignitaries also inaugurated the state-of-the-art Golf Course in the premises of Krishnapatnam port.

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events

Divya Jain felicitated by Economic Times Divya Jain, Founder & CEO, Safeducate has been felicitated on July 7, 2016, by Economic Times. She has been honored by ET for her invaluable contribution in supply chain & logistics education.

The award ceremony took place at Hotel Leela, Mumbai. The

upcoming events Maritime Summit on September 2, 2016 at Goa organised by Indian Chambers of Commerce 10th Express, Logistics and Supply Chain Conclave on September 21 and 22, 2016 at Taj Lands End, Mumbai organised by KamiKaze B2B Media Food Logistics India on September 22-24, 2016 at Bombay Convention and Exhibition Centre, Mumbai organised by Koelnmesse YA Tradefair Pvt Ltd Automation and Robotics Expo on September 2325, 2016 at Auto Cluster Exhibition Centre, Pune organised by Indian Business Knowledge Media India Cold Chain Show on October 17-19, 2016 at Bombay Convention and Exhibition Centre, Mumbai organised by Reed Manch Exhibitions Supply Chain Forum on October 18, 2016 at Luton Hoo, Bedfordshire(England) organised by Richmond Events Lift Elevator Escalator Expo on October 21 and 22, 2016 at Sri Lanka Exhibition and Convention Centre, Colombo organised by Nexgen Exhibitions Pvt Ltd 28th International Air Cargo Forum 2016 on October 26-28, 2016 at Paris Expo Porte de Versailles, Paris organised by The International Air Cargo Association (TIACA)

prestigious trophy was handed over to her by Honorable Minister of State for Urban Development, Housing and Urban Poverty Alleviation, Mr. Babul Supriyo. Speaking at the award ceremony, Ms. Divya Jain said, “I am absolutely thrilled to receive this honor.

This award will motivate me to work even more passionately in the field of supply chain & logistics education.”

Ms Divya Jain added “Supply chain & logistics industry is the backbone of the Indian economy. India’s logistics industry is poised for an accelerated growth. With India becoming the global manufacturing hub, it needs to radically improve its supply chain in order to best utilize the various opportunities in the national and international markets.”

Ms. Jain announced, “We are also in the process of tying up with various premier educational institutes to create specialized MBA programs in supply chain & logistics. Our initiative will help in creating trained professionals, which in turn would help to overcome the challenge of scarcity of skilled manpower in the supply chain arena and this would help in boosting the growth of industry.”

2nd CHEMLOG India 2016 on November 10 and 11, 2016 at Hotel Cambay Grand, Ahmedabad organised

by Indus Exposium Pvt Ltd CeMAT India on December 1-3, 2016 at MMRDA Grounds, Mumbai organised by Hannover Milano Fairs India Pvt Ltd 2nd Logistics Asia Expo on December 02-04, 2016 at Gujarat University Convention and Exhibition Centre, Ahmadabad organised by Radeecal Communications

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PEOPLE CONNECT

A fair and transparent deal

What motivated you to be a part of the logistics industry and how has your experience been so far?

TI started my career way back in 1987, working as Production Planning Control Engineer in Allwyn Nissan Limited, a State Government and Nissan Motors Joint Venture. From the beginning I had lot of passion in Automobile Industry.

I had a long haul of working experience with companies like Mahindra & Mahindra, Fenner India and Hyundai Motors. I was exposed to Japanese and Korean working culture and all through my career, somehow or the other I was associated with Supply Chain and Logistics. That’s how I developed interest and landed in Logistics Industry.

The journey so far is good and challenging.

How has the industry changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulation, etc?

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Headquartered in Seoul, South Korea, Hyundai Glovis started its operations in India in the year 2006 to provide integrated logistics solutions to exporters/ importers. The domestic car transportation wing of GLOVIS India today handles more than six lakh cars every year. Having established their efficiency in the transportation sector, GLOVIS India expanded its services in the vertical of Container Freight Station (CFS) and the clients include the various vendors of Hyundai Motor Group. Ramana Adivishnu, Senior General Manager, Glovis India Private Limited in an interview with Sana Husain shares about his stint in the logistics industry, influenced throughout by the Japanese and Korean working culture.

I have been associated with Finished Vehicles Logistics for most part of the time in Logistics. Hence, my experience may be specific to that area.

Yes, there are some changes in the industry, but not drastic.

There is some confusion in car carrier dimensions and those were clarified in the recent amendment.

However, implementation may take some more time. Some of the tolls are getting automated. Uniform regulations are expected at each check post after CMVR implementation. Once GST is in place, the border permits may disappear. Taxation will be simplified.

There are many institutions which have logistics as one of their courses.

Transport Operator’s maturity level has gone up. Business is becoming more and more professional. Multimodal is being explored in a big way. Going forward, we may see sea changes in this industry.

What was the biggest challenge that you have faced till date?

There are many challenges for the logistics industry–Poor infrastructure, poor roads and stiff business competition from some unorganized transporters and low margins etc.

Real challenge for me was during the last year floods. We didn’t want our dealers across the country to suffer for non delivery of cars from the plant. We managed the supply of the cars without causing any interruption amidst the heavy rains and floods. When most of the industries were closed during these rains, we have operated all the shifts without denting our volumes.

However, the major challenge is managing trailers during festival season (August to October). There will be always a severe shortage of trailers during festival season. All OEM will perform better during

festival season and there will be heavy demand for car carriers. To transport the cars to dealers on time during the festival time is the biggest challenge.

Where do you see the graph of the logistics industr y moving in the coming decade?

I feel with some tax reforms and incentives, the alternative modes of transport may get encouraged and become popular.

When compared to other developed countries, our industry is not matured.

Hence, there is a large potential in India for logistics industry in the years to come.

What specific beliefs or value that you live and work by and how do you define success?

First of all, we should have passion for whatever kind of work we do. If we don’t develop that passion, we cannot be successful in that area.

We should always deal fair and be transparent with our employees, vendors, customers and the society. Trust is the key for our business and also in our life.

Apart from work what are your other interests?

I do like traveling a lot.

Do you have any message for those who aspire to work in the logistics industry?

With the current kind of set up and environment, the career in logistics is a stressful and high pressure employment.

Those who start their career in logistics may find the job more challenging and interesting. They can get adapted to the situation very fast than the experienced persons from different industry. However, finding job in an MNC logistics company can be more remunerative.

People. Partnership. Performance...

Infrastructure & Advantages Infrastructure Advantages 1) Storage of& 7000 pallet,15 identical chambers of 432 Custom bonded Pallets eachwarehouse.

Import & Export hub.

2) Temperature range of +25°c to -25°c Buffer yard & factory stuff.

3) 24x7 Operational Hours Cold storage & cold chain.

4) VAS Facility of Processing, Repacking, Labeling & Storage area 28,000 sq. m.

Sorting Direct access to the National Highway 4B leading to the JNPT port.

5) Customs Bonded Ample space for parkingArea of 10000 cargo trucks.

6) Operated reach trucks,forklifts & hand pallet movers 24X7 CCTV monitoring.

CFS owned equipment: 4 Top Lifters, 80 Trailers, 30 Forklifts, 7) 2 Empty Handles, 1 Crane.

8) Inflatable Dock Shelters with Dock Levelers.

Distance from JNCH: 11 Kms. 9) 100% Power back-up with multi generators Distance from Belapur station: 7 Kms. 10) Fire- fighting & fire prevention systems Zero toll, congestion & carting charges in the CFS. 11) LED eco-friendly lighting Zero congestion on the approach road.

12) ISO&22000:2005 HACCP Carting stuffing dine in coveredCertified area.

13) Reafer Vans & Support SecondaryForwarders.

Distribution Ideal location for Exporters/CHA's/Freight Prompt carting of cargo.

Wi-Fi enabled CFS.

Entrance

Covered Carting & Stuffing Area

Total Protection from Rains: Carting Custom & Stuffing area: Completely BondedCovered.

Area

15-23, National Highway 4B, Panvel-JNPT Highway Village Padeghar, Panvel-410206, Maharashtra +91 22 66280700-98 +91 22 66280781 jwrcfs@jwllogic.com raaj@jwllogic.com hema@jwllogic.com mgrops@jwllogic.com

Covered Warehousing Facility

www.jwllogic.com