PAGES 102 inclusive of cover
www.surecommedia.in Postal Registration No.: DL (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month
The Challenging Business of Chemical Logistics 49 Making way for a transparent Pharma Supply Chain 8 Measuring the Value of Warehouse Data to Ensure Success 60 Logistics Industry Post GST: Set for a Smooth Ride 66
VOL IX ISSUE II january 2018 `20
Contents
Volume IX • Issue II • january 2018
Editor and Publisher Smiti Suri Senior Correspondent Tariq Ahmed Special Correspondent Gaurav Dubey Deepashree Banerjee Director Ajeet Kumar Marketing Manager Niti Chauhan
22 COVER STORY
LOGISTICS OUTLOOK 2018 focus
SPECIAL FEATURE
Asst Manager Marketing Asad Mohammad Marketing Executive Mehuli Choudhury Administration Vipin Marwah Accounts & Administration Poonam Gupta Sr Designer & Visualiser Shaique Ahmad
Making way for a transparent Pharma Supply Chain .......................8
FEATURES
Designer & Visualiser Mayank Bhatnagar
The Challenging Business of Chemical Logistics ..........................49
INTERVIEW Ahmad Luqman Mohd Azmi, Chief Executive Officer, MAB Kargo ......................................78 Navneet Kapoor, Head of Global Service Center, A P Moller-Maersk .......................80
Measuring the Value of Warehouse Data to Ensure Success .................60
UPFRONT ....................................6 Shippers Speak .....................82
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
GUEST COLUMN ..................84-85 NEWS ..................................86-90 Logistics Industry Post GST: Set for a Smooth Ride ....................................66
EVENTS ................................92-98 PEOPLECONNECT ..................100
GST gives you the opportunity to reduce your inventory costs signicantly. Rather than keeping huge inventories in multiple regional warehouses, keep consolidated inventories at one central warehouse. Now is the time to call Safexpress, the Logistics Experts. Safexpress has India’s largest Logistics network, covering all 22110 Pincodes of India.
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: www.surecommedia.in
Upfront
Nitin Gadkari, Minister of Road Transport, Highways and Shipping tweeted and posted photo of the official gazette notification after logistics got the Infrastructure status
Data is going to be invaluable to economic activity in the coming years; and projects like Logistics Data Bank(LDB) that collect, process and convert data into value-added service are important for our future growth,” Suresh Prabhu, Minister of Commerce and Industry at the pan-India launch of LDB in Delhi
“Visibility and transparency in logistics as achieved by LDB in container transport can be model for other areas, for example our massive and complex public distribution system
Jasmine Singh Head, Industrial and Logistics Services, India, CBRE South Asia Pvt Ltd said,
“2017 was a significant year for the sector, with the implementation of India’s biggest tax reform, the GST. The long-term benefits of the GST on the sector will include reduction in documentation for warehousing operators which will result in improved turnaround time and client outreach.”
C R Chaudhary
Minister of State for Commerce and Industry at the pan-India launch of LDB in Delhi
“As the first commercialized project under Delhi Mumbai Industrial Corridor (DMIC), we expect LDB to help cut down transportation delays and make India an attractive destination for Japanese companies”
HE Kenji Hiramatsu Ambassador of Japan to India
6
CargoConnect - january 2018
Brian Pearce Chief Economist and Director, IATA “I am expecting e-commerce and inventory restocking to drive “good growth” in cargo revenues of 9% in 2018 to $59.2bn.”
focus
Making way for
a transparent
Pharma Supply Chain 8
CargoConnect - january 2018
focus
E
The pharmaceutical and life sciences supply chain management sector like many other sectors is continually advancing to the extent where it can be challenging to keep track of all the changes, let alone managing them. Whether you’re adapting to the new federal Drug Supply Chain Security Act (DSCSA) that impacts handling, labeling and data integration, or considering how to implement track and trace in the most cost-effective manner, your facility must be prepared for every possible scenario. Deepashree Banerjee analyses facts and figures after speaking to the industry experts in a quest to evaluate the real status of the Pharma logistics scenario in India and a potential corruption free supply chain in the near future to look forward to.
ven though the complexity of the pharmaceutical supply chain is turning more and more daunting with each passing day, an array of solutions are opening up too to help tackle the same. Automated storage and retrieval is providing some relief, while a novel software combination is offering real-time track and trace. Pharmaceutical expenditures constitute approximately 25 per cent of total health expenditures, ranging from 7 per cent to 68 per cent across countries, and are typically one of the top health care expenditures for governments globally. However, ineffective pharmaceutical supply chains negatively impact the full value of positive health outcomes that should be derived from these expenditures. A key contributor to ineffective pharmaceutical supply chains is poor compliance with processes which includes a lack of accountability and transparency coupled with corruption. These issues may occur in any functional area of supply chain management which includes selection of pharmaceuticals, demand forecasting, manufacturing, procurement, warehousing and distribution.
Pharmaceutical Manufacturing and Registration As far as the supply chain functions are concerned, pharmaceutical manufacturing and registration functions often lack adequate transparency and accountability and are also prone to corrupt practices that can allow falsified and substandard pharmaceuticals to enter the supply chain. Systems for Improved Access to Pharmaceuticals and Services (SIAPS) Programme has supported Angola, Bangladesh, South Africa and other countries in implementing best practices that strengthen national pharmaceutical regulatory systems, including establishing and updating legal and regulatory frameworks and building capacity for inspections, sample testing and regulatory enforcement actions. Temperature excursions, customs delays, packaging breakdowns, incorrect shipping, and packing choice are all risks inherent in transporting pharma shipments. Ahmad Luqman Mohd Azmi, Chief Executive Officer, MAB Kargo shares the steps which have been taken by him in order to reduce such risks. “When we ventured into the business of shipping pharmaceutical products, we agreed on some standards to be at par with the industry. Moving ahead, we are venturing into getting an IATA CEIV Certification sometime around in the third quarter next year, because we believe that we need a neutral body to tell us that we are in compliance to the set standards. We are also looking at other smart ways on how we can ensure that the temperature is monitored and controlled throughout the supply chain,� he said.
january 2018 - CargoConnect
9
focus "We are venturing into getting an IATA CEIV Certification sometime around in the third quarter next year, because we believe that we need a neutral body to tell us that we are in compliance to the set standards." Ahmad Luqman Mohd Azmi Chief Executive Officer, MAB Kargo
MAB Kargo has also come up with a product called Centrigrade, tailored to especially meet the needs of the life science and healthcare industries for reliable airport to airport transport, in order to fulfill their target is to improve the performance and meet the logistical needs of temperature-sensitive goods. On top of that, they are focusing on getting their hubs certified with the IATA CEIV Certification too.
the rising demand for pharma logistics in India and the driving factors behind it. He also shares the company’s future course of action on this. Apart from higher demand in quantitative terms, there is also a higher demand for quality logistics. “This is driven by factors such as cold chain, higher procurement by Institutional customers, quest for Good Distribution Practices and risk of spurious drugs entering supply
Apart from higher demand in quantitative terms, there is also a higher demand for quality logistics.
The demand for pharma logistics is rising for a couple of factors including general growth in business, higher penetration in smaller towns etc. Cold chain segment is experiencing a bigger rise in demand due to advent of Biologicals. Some geographies also experience growth due to redrawing of distribution network triggered by GST. Surendra Deodhar, Asst Vice President, Head-Materials Management, Reliance Life Sciences shares his take on
10 CargoConnect - january 2018
chain,” he said. “With diverse geographies, multimodal transport and restrictive timelines for cold chain passive shipments, it is not possible to focus on specific airlines,” adds Deodhar. Deodhar also throws some considerable amount of light on how pharma logistics companies maintain a standard to keep a check in terms of risk-free supply chain systems. In general, pharma logistics companies are deploying technology, employing good quality people and
investing in better facilities to come up to the expectations of the customers, observes Deodhar. Deodhar feels that there has been an overall increase in regulatory demands, Good Distribution Practices and, hence, further demand for quality from customers have a gradual but sure impact on pharma logistics companies. The global pharmaceutical industry is valued at approximately $1.2 trillion and includes goods worth $283 billion that require cold chain for storage and transportation. The volume and value of goods which require refrigerated transportation is expected to increase by approximately 70 per cent on grounds of continuous transition to biologically based products, stricter regulatory requirements for life sciences shipments and increased international trade of pharma products. Furthermore, the principle of Good Distribution Practices (GDP) requires that all pharma be transported and/or stored under strict temperature control as per guidelines laid out by the World Health Organisation (WHO). Hence, the cold chain plays a vital role in ensuring that the quality of pharma products remains uncompromised. The increase in trade of temperaturesensitive pharmaceuticals will require additional supporting infrastructure for efficient transportation across borders. The pharmaceutical industry currently relies and will continue to rely heavily on air transport for its speed, reliability and efficiency in delivering high-value, timesensitive and temperature-controlled cargo. Therefore, apart from packaging which maintains the efficacy of the products, airports also need to be equipped with
focus
"With diverse geographies, multimodal transport and restrictive timelines for Cold Chain passive shipments, it is not possible to focus on specific airlines." Surendra Deodhar Assistant Vice President, Head-Materials Management, Reliance Life Sciences
necessary warehousing facilities conducive for preserving and enhancing the shelf life of pharmaceutical products during their transit through the airport. Development of such end-to-end cold supply chains facilities within or near airports should be the focus in the near future. Mike Chew, CEO, AISATS, in an exclusive chat remarks on the current state of pharma shipments across the globe. Excerpts: What are the primary challenges faced by air freighters in terms of a risk free pharmaceutical supply chain? The increase in globalisation has led to an enhanced collaboration among scientists and researchers across borders to explore opportunities in research and development and manufacturing within the pharmaceutical industry. However, transportation of these pharma shipments has posed a challenge as time, speed and maintenance of optimum temperature are of essence when delivering these goods to their final destination. Air transport is the fastest and widely acceptable mode of logistics across seas. A major risk associated with air cargo is temperature deviations and temperature excursions throughout the cargo’s journey. Packing of pharma goods with other perishables also affects the quality of the shipments because of their different nature and variable temperature requirements. An integrated supply chain supported by
12 CargoConnect - january 2018
the necessary cold chain infrastructure and the required co-ordination among all the stake holders will help safeguard the pharma cargo against temperature deviations and excursions right from its acceptance and storage to buildup and transportation. AISATS understands the specific requirements for pharmaceuticals and therefore provides a temperaturecontrolled environment from the time the pharma cargo enters the warehouse until it is loaded on to the aircraft. AISATS COOLPORT has separate X-Ray scanners for scanning, separate cold rooms for storage of pharma shipments. This separate treatment of cargo avoids any cross contamination of shipments during their movement within the warehouse. The cold rooms are equipped with data loggers to continuously monitor and maintain the various temperature environments. AISATS COOLPORT also uses envirotainers to handle pharmaceutical shipments in compliance with GDP requirements. Temperature excursions, customs delays, packaging breakdowns, incorrect shipping, and packing choice are all risks inherent in transporting pharma shipments. What steps have been taken to reduce such risks? Also, outline the technological innovations that come into play in terms of minimizing temperature excursion. Temperature excursions, custom delays, packing choices and packaging breakdowns are a few of the challenges that need to be addressed when transporting pharmaceuticals across the
world. To safeguard pharma shipments from any unexpected temperature environments, manufacturers can choose passive, active or semi-active packaging, which will maintain a stable temperature regardless of the physical facilities/environments that the pharma products may transit through. Transporting temperaturesensitive perishable products, including pharmaceuticals, requires a robust temperature controlled logistics system as well as temporary temperature controlled warehousing. At the AISATS COOLPORT, India’s first integrated on-airport perishable cargo handling center, integrity of the cold chain is maintained right from acceptance of goods at an ambient temperature of 20 to 25O C till the cargo is transported to the aircraft. As different products have different temperature requirements, the AISATS COOLPORT has 11 dedicated cold rooms with temperature ranging from 2 to 8 O C, 5 dedicated cold rooms with temperature ranging from -15 to -25 O C, which ensure that each individual product is stored at its optimum temperature. Furthermore, the cold warehouse is equipped with refrigerated queue lanes with a temperature range of 2O to 8O C for unitised shipments, dedicated X-Ray machines for different products (perishables and pharmaceuticals), and data loggers to monitor the temperature. AISATS has also deployed indigenously developed Cool Trollies to transport temperature-sensitive
focus "The increase in globalisation has led to an enhanced collaboration among scientists and researchers across borders to explore opportunities in research and development and manufacturing within the pharmaceutical industry." Mike Chew CEO, AISATS
shipments between its warehouse and the aircraft without any considerable change in temperatures. In order to avoid delays due to customs, AISATS COOLPORT also has an in- house custom clearance facility and a drug controller lab facility available on its premises, thereby providing customers with a one-stop solution for their pharma products. The AISATS COOLPORT is also GDP (Good Distribution Practices) certified. This shows AISATS’ commitment to ensuring that the quality of pharma handled at the COOLPORT remains undiluted. Alexander Arafa, Head of Cargo Area, Contribution Management, Swiss World Cargo shares his perception on how airlines maintain a standard to keep a check in terms of risk-free supply chain systems. “At Swiss WorldCargo, we have a strong focus on the pharma and healthcare sector and we are constantly investing in improving our solutions, finding the right partners and improving our processes to keep the cool chain risk-free. At Zurich Hub, in cooperation with our groundhandling partner Cargologic, we have been focusing heavily in infrastructure quality and handling standards for pharma shipments. Zurich Airport − which has the great advantage of being small and flexible, with short tarmac times which are definitely a USP in terms of risk mitigation− has become one of the world’s leading hubs when it comes to pharma handling,” he says. Cargologic handling facilities at Zurich Airport were among the first in Europe
14 CargoConnect - january 2018
to be fully GDP compliant by the Swiss drug registration institution Swissmedic (2014); the compliance certification has been renewed in October 2017. In 2015, our partner was also one of the first to obtain the Center of Excellence for Independent
in replicating this best practice model in collaboration with its ground-handling partners around the world. A network of certified trade lanes is being implemented to ensure the highest quality standards and product integrity in cold chain handling
Pharmaceutical Supply Chain
Pharmaceutical Industry (Production, R&D etc)
International and national health authorities (regulation, management, policy, HR etc)
Pharmaceutical entities (storage, distribution etc)
Use (dispensing, patient etc)
Validators (CEIV) certification from IATA for the handling of pharmaceutical products, Arafa informs. Over the last two years, Swiss WorldCargo has been investing heavily
on a global scale. By the end of 2017, some 50 “quality corridors” are expected to be in place, covering the top pharma destinations, he adds. Transparency and visibility are also an
focus "Zurich Airport, which has the great advantage of being small and flexible, with short tarmac times which are definitely a USP in terms of risk mitigation− has become one of the world’s leading hubs when it comes to pharma handling." Alexander Arafa Head of Cargo Area, Contribution Management, Swiss World Cargo
increasing requirement in the industry, which calls for the use of more and more sophisticated real-time tracking devices that monitor temperature throughout the cool chain. The use of Active Tracking Devices has been allowed on SWISS flights since November 2016, and a 24/7 intervention team is in place, and is ready to react in case of any deviation. Moreover, Swiss WorldCargo is also seeking to extend the Envirotainer QEP (Qualified Envirotainer Provider)
WorldCargo has also further enhanced its capabilities when handling pharma products with the implementation of the additional storage temperature range “ERT” in the cool storage facilities at the main pharma destinations.
Track and trace automation eliminates errors In addition to individually serialising bottles and consumer boxes, the Drug Supply Chain Security Act (DSCSA) also
WHAT ARE PHARMA SUPPLY CHAIN EXECS THINKING ABOUT?
1 INNOVATION
2 OUTSOURCING
3 COST CUTTING
4 EXTERNAL COLLABORATION
1
2
3 4
DOM and WMS: A new combination for track and trace Internationally, as operators seek new methods to fill pharmaceutical orders as quickly and efficiently as possible, they are beginning to seek a new combination—a distributed order management (DOM) solution alongside a warehouse management system (WMS), which handles real-time track and trace and ensures products are distributed to the right place (and at the right time). Sandeep Chatterjee, Senior Manager, Deloitte opines on the rising demand for pharma logistics in the country. India’s pharmaceutical industry is poised to exceed $55 billion by 2020 according to estimates by ASSOCHAM. In order to support this exponential growth, we need a massive backbone in terms of a robust supply chain. Though in India we are primarily into generics and the supply chain operates through stockists, this needs to reach out to the customer. There is intensive competition and we have moved into an era where companies do not compete, but supply chains do. As a result, there is a lot of emphasis on pharma logistics as the key differentiator. There are stringent regulations in place and hence pharma companies need to watch out for the expiry dates as well as the quality of the drug when it reaches the customer.
Security-a major concern programme, which recognises its partner carriers as competent service providers when handling Envirotainer active units around their network; 30 stations in the Swiss WorldCargo network have already received this accreditation and more will follow in the coming months. Swiss
16 CargoConnect - january 2018
requires pharmaceutical manufacturers to provide serial numbers, lot numbers, batch numbers for cases and expiration dates that are readable by machines with 100 per cent accuracy. This information, which is collected through scanning, must then be stored for six years, at minimum.
The Pharma supply chain costs in India are higher than the best-in-class and with shrinking margins, companies need to move towards operational efficiency rather than reverse engineering. “This needs a revamping of the supply chain and companies need to look at better
focus "Some drugs need special handling in terms of cold storage which poses another challenge as the cold supply chains are broken. And, to add to that pharma companies typically have more inventory which is a trade off with the expiry date which is an additional cost." Sandeep Chatterjee Senior Manager, Deloitte
ways of distributing. Some drugs need special handling in terms of cold storage which poses another challenge as the cold supply chains are broken. And, to add to that pharma companies typically have more inventory which is a trade off with the expiry date which is an additional cost,” Chatterjee suggests. First of all, air freight is not expensive and is profitable provided we do it right, feels Chatterjee. Only 1 per cent of freight is carried by air which needs to go up as we talk about faster delivery and handling the infrastructure bottlenecks. For any airlines, security is a major concern with the increased rise in terrorism and narcotics. Airlines have invested in technologies worldwide to handle these threats. This reduces a lot of risk in terms of disruptions. Airports are investing in special material handling technologies so that the perishability factor is taken into consideration. There is proper segregation of goods based on the class of material with appropriate tags to avoid the mixing and to alert the airlines on materials needing special care. There are bays which are being built closer to the airports to ease the multi-modal means of deliveries. Mark Whitehead, Chief Executive, HACTL shares his perspective as a major handler involved in considerable volumes of temperature-sensitive shipments, including pharma and lifescience, security is vitally important due to the generally high value of goods. “Such commodities readily attract theft, and also counterfeiting; so our ability to verify sources and maintain an audit trail, and then to maintain security vigilance during the brief time goods are in Hactl’s care, is paramount. While security
18 CargoConnect - january 2018
is not security if methodology is openly discussed, I can confidently state that the many measures (physical and digital) in place at Hactl effectively eradicate all security risks,” Whitehead said. Whitehead further states that temperature must be maintained, and in the case of pharma and life science shipments
First of all, air freight is not expensive and is profitable provided we do it right, feels Chatterjee. Only 1 per cent of freight is carried by air which needs to go up as we talk about faster delivery and handling the infrastructure bottlenecks. which can be rendered useless (or even hazardous to health) by temperature excursions, it must be seen to have been maintained. Not all elements of supply chains have invested in the necessary systems, infrastructure and monitoring
processes to successfully transport such cold chain shipments, and this is the value of accreditation. “Hactl is accredited under WHO GDP and IATA CEIV (and was the first in Hong Kong with both standards), assuring our compliance with the highest standards. Our compliance is based on measures to speed up handling and progress of cold chain shipments through our giant facility (we call this the Golden Route), measures to preserve temperatures despite ambient changes (such as thermal dollies on the ramp, and upgraded cold rooms in the terminal) and strict procedures to ensure that all possible safeguards are taken and that constant monitoring takes place. Anything less than this presents the risk of a break in the cold chain,” Whitehead added. Pharmaceutical manufacturers face a multitude of challenges as they work to bring new products to market. Rising R&D costs, difficult recruitment and retention of patient populations for clinical trials, increased competition among manufacturers of all sizes, more stringent scrutiny over medication prices: All of these factors and countless others are driving manufacturers to be more mindful of costs. The upcoming trends in the clinical trial marketplace—growth in emerging markets, evolving regulations, the rise of multinational logistics services, temperature control innovations and the direct-to-patient trial model—present both challenges and opportunities for industry. Optimising the supply chain and enhancing clinical trial efficiency, and selecting partners who can help them do so, is critical for manufacturers in an increasingly cost-conscious and resultsdemanding environment.
@TheJSWGroup
www.jsw.in
JSW Jaigarh Port India’s modernised greenfield multi cargo environment friendly deep water port regularly servicing capesize vessel
Creating world-class maritime infrastructure to 200 MTPA by 2020
JSW Jaigarh Port is poised to service:
400,000 TONNES
350,000 TONNES
VALEMAX VESSELS
VERY LARGE CRUDE CARRIERS
@TheJSWGroup
www.jsw.in
JSW Jaigarh Port India’s modernised greenfield multi cargo environment friendly deep water port regularly servicing capesize vessel
Creating world-class maritime infrastructure to 200 MTPA by 2020
JSW Jaigarh Port is poised to service:
400,000 TONNES
350,000 TONNES
VALEMAX VESSELS
VERY LARGE CRUDE CARRIERS
18TH JANUARY 2018 New Delhi, India
Join us in Delhi for PHARMACONNECT 2018 PHARMACONNECT is the most prestigious pharma logistics industry event, bringing together key stakeholders from the entire pharma supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories. We look forward to welcoming you in Delhi, the city, famous for being the commercial and cultural hub, having a vibrant historical significance attached to it.
Mark your agenda for PHARMACONNECT Pharma Logistics Summit and join over 200 leaders for this action-packed event
Meet & network with over 200 pharma supply chain professionals Engage with experts at workshops and panel discussions Benefit from one to one meetings with leading suppliers Identify new business opportunities and network with leading suppliers and exhibitors from across the world
FOR FURTHER DETAILS Ajeet Kumar: +91 9810962016 ajeet@surecommedia.in Mehuli Choudhury: +91 9810730347 / 8700292866 mehuli@surecommedia.in
When: 18th January, 2018 Where: New Delhi, India Venue: Shangri-La’s - Eros Hotel, New Delhi, 19, Ashoka Road Audience: Pharma Supply Chain Professionals
cover story
22 CargoConnect - january 2018
cover story
Logistics
Out look 2018 The logistics industry in India is rapidly changing and evolving at a speed one could only imagine. Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other commercial sectors depend. Despite of the weak economic sentiments, the logistics industry continues to witness growth due to the growth in retail, e-commerce and manufacturing sectors. Taking cue from what we witnessed in the past year and with inputs from leaders of logistics, Tariq Ahmed, in collaboration with Deepashree Banerjee and Gaurav Dubey, gives you a sneak peek into the logistics of 2018, future trends, anticipated challenges and much more.
january 2018 - CargoConnect
23
cover story inside Infra Status: A growth catalyst Investments to rise Supply of logistics facilities to increase Logistics-dependent sectors to benefit Ongoing impediments Air Cargo Predicts Stronger Growth Challenges prevail Surface Logistics: Smooth Ride Ahead The Advent of Digitised Trucking The GST Story Infrastructural Issues Obscure Port-led development for Maritime Growth Rail Freight Sees Upward trend Indian Railways’ launch of RO-RO services CONCLUSION 24 CargoConnect - january 2018
T
he logistics sector in India is undoubtedly poised to grow at a staggering rate given the various reforms on the part of the government as well as technological advancements that is taking the industry by storm. Terming the outlook for logistics companies as positive in the medium term, rating agency ICRA recently said India’s logistics sector is likely to grow by about 10 per cent annually. It said that while there have been fluctuations in the economy and freight demand due to GST implementation, the impact of the same would be temporary and would be corrected over the near term. In addition, logistics companies have benefited from the underlying sectors such as automobile, consumer durables etc. which have bucked the economic slowdown trend. From a profitability perspective, while the aggregate operating profit margins improved marginally on a sequential basis to 9.7 per cent during Q1 FY 2018, there was pressure on the margins on a Y-o-Y basis. Although the manufacturing activity has declined further in July 2017 post GST implementation, there has been a gradual improvement in most of economic indicators over the past couple of months, which suggest the outlook for logistics companies is likely to turn favourable going forward. The road freight rates also followed a similar trend, with the decline in industrial activity and lack of freight demand resulting in a sharp decline of freight rates in July 2017, and subsequent recovery in August 2017 as the industrial activity and freight demand improved. Jasmine Singh, Head, Industrial and Logistics India, CBRE South Asia Pvt Ltd says, “India’s logistics and warehousing segment witnessed significant activities during 2017. Demand was primarily concentrated in Bangalore, Delhi NCR and Chennai. Sectors driving the demand included Third Party Logistics Companies (3PL), engineering and Manufacturing and Fast-Moving Consumer Goods (FMCG) companies. 2017 was a significant year for the sector, with the implementation of India’s biggest tax reform, the GST. The long-term benefits of the GST on the sector will include reduction in documentation for warehousing operators which will result in improved turnaround time and client outreach. Supply chain efficiencies will also improve. As we move into 2018, we expect there to be consolidation of large warehousing firms, entry of reputed developers backed by institutional funding and rise in demand for large mother warehouses. This will result in the emergence of large scale nationwide players. With new technologies coming in, the concept of ‘hub and spoke model’ is likely to gain prominence, driven by operational efficiency and cost reduction. This growth in demand will spur supply of quality warehousing in the future.”
Infra Status: A growth catalyst The Indian logistics sector being granted infrastructure status is a landmark move with wide-ranging implications for an industry now set to grow 10-15 per cent annually. Specifically, the logistics sector is now included in the harmonized master list of Infrastructure sub-sectors under a new head ‘Transport and Logistics’, and categories like Multi-modal Logistics Park, Cold Chain Facility, and Warehousing Facility have been clearly defined. This will have decidedly positive implications, making the sector a sought-after asset class for investments: Investments to rise Taking a long-term perspective, the most encouraging impact of the development will be on the investments coming into the logistics sector. The new status makes it easier for companies operating within these segments to raise long-term credit from banks and other financial institutions at lower rates, and also attract foreign investments. According to the government’s notification, the inclusion also makes it easier for logistics companies to:
For greater peace of mind Tailored solutions for more transparent intralogistics
With an experienced partner to maximum efficiency In distribution and warehousing, perfectly harmonised processes are essential to achieve the highest access precision and speed with the lowest effort. We achieve this goal with our tailored warehousing solutions. Our internationally proven solutions achieve a picking accuracy of up to 99.9%. Using flexibly scalable warehouse systems with optimal product density, you can achieve maximum long-term efficiency. Flexible warehouse solutions with added value.
Find out more about your personal solution concept – we look forward to helping you! www.kardex-remstar.in
+91 80 29724470
info.remstar.in@kardex.com
cover story • Access larger amounts of funds as External Commercial Borrowings (ECB) • Access longer-tenure funds from insurance companies and pension funds • Be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL).
“A landmark reform like GST is bound to have teething problems but these will be ironed out in the next few months. We are very optimistic that most challenges will be overcome by mid-2018.” Huned Gandhi Managing Director, Air & Sea Logistics India and Bangladesh, Dachser
Warehousing is already seeing big-ticket investments in the country. In one of the biggest investment deals so far in the country, JLL India facilitated the Canada Pension Plan Investment Board (CPPIB) in acquiring a majority stake in IndoSpace, the warehousing and logistics real estate arm of Everstone Group. As part of this deal, CPPIB will acquire 13 industrial and logistics parks totalling 14 million sq.ft. of space. The Government plans to work with the state governments and the private sector to set up 34 mega logistics parks across the country. It has already allocated INR 100,000 crore for such targeted development.
“Considering the potential of the Indian logistics industry, I am expecting the policy makers to incentivise and offer special status to the logistics industry. The good news is the government is undertaking several initiatives to enhance and promote the profitability of this sector and reduce the incurring costs.” Amar More CEO, Kale Logistics
Supply of logistics facilities to increase There is now more clarity on the minimum land requirement for setting up logistics facilities. To get the infrastructure tag, minimum investment and area requirements for each category of logistic facilities have been spelt out: • A Multi-modal Logistics Park comprising Inland Container Depot (ICD) need to have a minimum investment of INR 50 crore along with a minimum area of 10 acres • A Cold Chain Facility must have a minimum investment of INR 15 crore and cover a minimum area of 20,000 sq.ft. • Warehousing Facilities must have a minimum INR 25 crore investment and a minimum area of 100,000 sq.ft.
26 CargoConnect - january 2018
This also means that development firms with larger land parcels can utilise their excess land holdings to develop more such facilities, thereby boosting the supply of warehousing facilities. Logistics-dependent sec tors to benefit India is already home to leading industries such as automotive components, pharmaceuticals, cement, textiles, FMCG, and e-commerce. Private sector companies across these sectors, whose operations depend hugely on warehousing and logistics, are now likely to register tremendous growth in tier 2 and 3 cities. These companies will need a stronger network of warehouses and logistics facilities in smaller cities for growth. The changed status, in turn, will boost the viability of opening up businesses in different regions, translating into more demand and growth. Tier 2 and 3 cities will become growth centres: According to a JLL report, India’s logistics and warehousing sector is already destined for a quantum jump with the advent of the unified Goods and Services Tax (GST) and associated infrastructure push to improve surface and air connectivity across the country. India is ranked 35 out of 160 countries on the World Bank’s Logistics Performance Index (LPI). Between 2014 and 2017, the country’s ranking has moved up by 19 spots – evidence to the solid performance of the sector so far. The LPI measures the state of trade and logistics based on parameters like customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, and timeliness. Ongoing impediments While there are growth opportunities for the industry, some existing challenges must be addressed. Immediate problems, such as an inadequate road network and losses that occur during transportation, must be resolved. Improvement of India’s road infrastructure at a much faster pace is critical to minimise losses, both economic and environmental. Only when this happens on the right scale will the logistics sector achieve optimal growth.
Air Cargo Predicts Stronger Growth The latest release from the International Air Transport Association (IATA) forecasts the airlines to continue stronger performance through 2018. The global industry net profit is expected to rise to $38.4 billion in 2018, an
AVG LOGISTICS
Safe
A STEP AHEAD
Fast
Reliable
Achieving Business Objectives by Delivering Combination of Best Services, Quality and Price. Who we are? AVG Logistics offers a full range of supply chain solutions all across India. We have 7 strategically located Hubs in major centers. We offer customized and unparalleled logistics solutions to a wide range of industry; FMCG, Telecom, Pharmaceuticals, E-commerce, Engineering and Automotive. State-of- the-art warehouse facilities and time-definite delivery of goods anywhere in India offer best in class supply chain solution to our customers.
Why Choose AVG Logistics? • Cost effective and efficient services. • Wide distribution network all over India. • Safe Delivery at your door step. • World Class Warehouse and storage facilities available. • Customer oriented services gives the flexibility to customers to schedule as per their convenience. • Advance IT enabled operations • State-of –the- art warehouse and storage facilities. • Experienced and dedicated workforce
AVG LOGISTICS Pvt. Ltd.
Services we offer • Transportation (Dry and Reefer Container) • Warehouse Management • Road and Rail • Air Freight / Sea Freight • Cargo Handling services • Supply Chain consultation • Customized Logistics solution
Follow us on :
101 1st Floor, Metro Complex, Dilshad Garden, Delhi-110095 | Call: 011-45674071, 9582135678 | www.avglogistics.com
cover story improvement from the $34.5 billion expected net profit in 2017 (revised from a $31.4 billion forecast in June). The cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields. Volumes are expected to grow by 4.5 per cent in 2018 (down from the 9.3 per cent growth of 2017). The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes to grow at twice the pace of the expansion
“With the port-rail connectivity, the total cost of ownership is going to come down drastically which will make India competitive given the precedence of higher logistics costs in India. With better connectivity at ports and modern material handling, the turnaround time of loading and unloading is going to reduce further.” Sandeep Chatterjee Sr Manager, Delloite
Global Cross – Border ecommerce will reach between $250 bn & $350 bn in 2025 Data Driven Logistics Data visualisation techniques and digital logistics will boost process efficiency and shorten the delivery times.
Elastic Logistics
in world trade (4.3 per cent). Cargo yields are expected to improve by 4.0 per cent in 2018 (slower than the 5.0 per cent in 2017). While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in 2018. Cargo revenues will continue to do well in 2018, reaching $59.2 billion up 8.6 per cent from 2017 revenues of $54.5 billion. Strong demand, efficiency and reduced interest payments will help airlines improve net profitability in 2018 despite rising costs. 2018 is expected to be the
“International transportation of goods by road, rail, inland waterways, sea, air or any other mode including freight forwarding should be zero rated. Alternatively, both international transportation and freight forwarding pertaining to international transportation should be exempted.” Bharat Thakkar JMD and Founder, Zeus Air Services fourth consecutive year of sustainable profits with a return on invested capital (9.4 per cent) exceeding the industry’s average cost of capital (7.4 per cent). The air cargo industry has witnessed many markets rise and fall over the years, and many times traffic imbalances on individual trades have reversed due to economic and currency fluctuations. Everyone had a view about Brexit, ranging from economic disaster for the UK, through the collapse of the EU, to a new era of global free trade with less restrictions. There will be winners and losers, and certainly some unexpected consequences, both positive as well as negative.
28 CargoConnect - january 2018
Supply chain Trends To Watch Out For In 2018
Logistics companies will make their operations elastic to plan and optimize the resources and the available capacity.
Drones and Smart Glasses Deployment of smart – glasses and drones will increase exponentially to yield faster and efficient deliveries.
Perfect order deliveries Perfect orders are the ultimate measure of customer satisfaction. Companies will measure the Perfect Order Index (POI) to drive the process improvement.
Highest Standard of Excellence
CELEBI DELHI CARGO TERMINAL MANAGEMENT INDIA PVT. LTD
Room No. CE – 05, First Floor, Import II Building, International Cargo Terminal, IGI Airport, New Delhi – 110037 Tel : +91 11 25601310 | Fax : +91 11 25601320 | Website : www.celebicargo.in
cover story Challenges prevail Globally the oil costs are low but the benefits are not being passed to the airlines due to government policies. Unless this is addressed, the airlines will not be able to take advantage of the globally lower costs. For airlines operating in India, ATF, lease rentals, maintenance and employee benefit expenses account for over 70 per cent of their cost. Airlines need to operate on a higher scale to offset some of these costs. Historically, passenger has been the priority for airlines which is not very
“TVS Logistics is building and experimenting with tools forcollection and evaluation of large amounts of data to facilitate predictive and prescriptive analysis and for identifying increasingly efficient and safe transportation solutions for customers based on this.” R Shankar CEO, TVS Logistics Services Ltd India profitable. Airlines need to tie up with freight providers to scale up their operations for profitability. Anand Yedery, Regional Cargo Manager, SAMEA, Cathay Pacific Airways said, “Cargo is a complex business in terms of the many stakeholders – shippers, forwarders, agents, customs and many more. All these different functions need to talk to each other on a common platform to understand the movements of shipments. And that’s what our customer’s demand of us. Being able to get this in sync is a challenge.” “Safety and security is both a threat and an opportunity. We will continue our
“DFC will be a game changer in the freight transport sector of the country. The plan to construct dedicated freight corridors across the country marks a strategic inflexion point in the history of Indian Railways that has essentially run mixed traffic across its network.”
Artificial Intelligence & Blockchain By 2021, 25 % of large global companies will be piloting or using artificial intelligence automation in transactional procurement.
Benefits that companies will be reaping
Empowered Digital Logistics
Enhanced Operational Efficiency
Dinesh Goyal Head - Rail Division, Darcl Logistics Limited Improved Delivery Happiness Score efforts in working with bodies like the BCAS, TSA and other security agencies to get it right. We are all for security, and keen for this to be done in a productive way that makes good business sense,” he added. In addition, high operational costs, complex regulatory processes, substandard infrastructure in few airports are some of the basic challenges we face. However, airlines will continue to work towards addressing these challenges with concerned stakeholders and through various industry forums. Frank Naeve, VP APAC, Lufthansa Cargo AG said, “With the increased capacity and demand in the worldwide Air freight markets, undoubtedly competition amongst the Airlines have increased as well. Fuel cost remain to be one of the major impact to
30 CargoConnect - january 2018
Creation of new Products & Revenues Credits: FarEye
Doors for Home and Industry
Europe's No.1 door brand for over 75 Years
I
Residential
Your trusted partner in productivity and progress Shakti Hormann Pvt. Ltd. Plot No. 20, Sripuri Colony, Karkhana, Secunderabad - 500 015 Telangana India T: +91 40 2784 0394/5 F: +91 40 2789 2327 E: sales@shaktihormann.com www.shaktihormann.com
Fire Industrial
5
-201
001 SO 9
Glazed
cover story business in our industry, others are cost for labour, Capital and Infrastructure. The Air Freight industry has to develop strategies to survive under existing and future scenarios, which would mean providing facilities, infrastructure and simplified processes. It is our aim to enhance the business, not only in a cost effective way but also in a time effective way. To resolve issues, it is important that the local governing bodies support and expedite implementation of plans and policies which are set towards development of the country economy. One of the strategic targets
“In order to sustain the momentum and to spur the growth, the Government has undertaken “Bharatmala”, the second largest highways construction project in the country, which will look into improving connectivity particularly on economic corridors, border areas and far-flung areas with an aim of quicker movement of cargo and boosting exports.” K Satyanarayana Co-founder and Director, Ecom Express Private Limited of Lufthansa Cargo is the further development of digitisation in order to improve efficiency and quality.” Mark Whitehead, Chief Executive, Hactl is of the opinion that the oft-voiced threat to airfreight from modal shift is generally over-stated; the ocean industry has its own challenges of customer disaffection due to slow-steaming, missed slots, deliberate slimming of capacity to increase rates, port delays etc. Hactl has been among many who have benefited from the swing to the speed and reliability of
“As India continues to reinvent existing processes, tech-enabled transportation solutions will become the anthem of ongoing change. Change is already under way: India’s truck industry is now working towards a nationwide rollout of Bharat IV (BS IV), an emissions standard equivalent to Euro IV.” Dileepa B M CEO Bonded Trucking, Shreeji Translogistics Limited airfreight after the Hanjin collapse. “That said, the air cargo industry continues to evade the issue of data sharing and digitisation of processes, which will deliver greater efficiency and accuracy, and will strengthen the industry’s proposition for time- and temperature-critical commodities. But, no matter how much the bar to e-freight is lowered, 60 per cent of the market steadfastly refuses to jump over it. There is an obvious crisis of faith in e-reight that IATA and others need to address. Money talks: so incentives or financial assistance for forwarders would seem to be the answer,” he added.
Surface Logistics: Smooth Ride Ahead The Advent of Digitised Trucking
32 CargoConnect - january 2018
While we are a long way from digitisation in India with respect to trucking, some steps in this direction are visible. As trucks move today, using a combination of technologies, they are generating a wealth of information and data - from transport infrastructure, vehicle utilisation to remote maintenance. This is helping boost efficiency and safety on the road. Uberisation of trucks (connecting network ecosystem or online freight matching platforms) is gaining momentum and there is visibility between demand and supply. Even smaller service providers can get aligned on such platforms; and this is especially true for short haul movements. GPS is becoming a norm for most companies now for asset visibility but even those organisations that don’t utilise GPS are adopting some or the other form of track and trace. Huned Gandhi, Managing Director Air & Sea Logistics India and Bangladesh, Dachser said, “Dachser regards digitalisation as an evolutionary process that started over 30 years ago in the logistics industry. We have been going the path of digitalisation successfully and will keep on digitizing our process worldwide, e.g. by completing the rollout of our worldwide transport management system for air and sea freight, Othello as the digitalisation of individual hardcopy processes in the supply chain is one important task in our continued digitalisation strategy. However, the digital world survives on fulfillment in the analog world. The heart of our work remains the physical movement and storage of goods. Logically, the excellent management of the worldwide Dachser network is therefore one of our focal areas to improve processes constantly and to increase transparency via our tracking and tracing platform eLogistics.” Dileepa B M, CEO Bonded Trucking, Shreeji Translogistics Limited said, “Indian highways are being fitted with RFID scanners that detect auto-pay FASTags to deduct toll charges, thus eliminating toll booth queues and reducing workloads for both roadway employees and travellers. The FASTags may be purchased online, through a mobile app or in person at several authorised points of sale. The system also renders toll payments cashless, thereby encouraging paperless and transparent money trails. The E-way bill is an electronic waybill, generated online and configured to generate a unique ID for each segment of cargo deliveries within India. Logistics companies around the
cover story country currently depend on hardcopy, signed receipts or Proof of Delivery (PODs) to confirm shipping transactions and release payments. This analogue paper trail leads to severe delays in payments.” R Shankar, CEO, TVS Logistics Services Ltd India said, “3PL operators like TVS Logistics will play a key role in utilising technology to enhance visibility of load carriage, turn-around time, vehicle utilisation, improving loading/unloading time by removing congestion at the docks, etc. We are already using cutting edge technology
“The air cargo industry’s tonnages may be booming right now, but it’s running on dangerously thin margins. This is going to thwart necessary investment in new systems and infrastructure, as well as staff recruitment and training.” Mark Whitehead Chief Executive, Hactl and software for load design solutions, vehicle geo-tracking, inventory (order/part level) tracking, and route optimisation to add more value to our customers’ supply chain. TVS Logistics is also building and experimenting with tools for collection and evaluation of large amounts of data to facilitate predictive and prescriptive analysis and for identifying increasingly efficient and safe transportation solutions for customers based on this. “As the amount of data and the touch points from where it is collected reaches
“The Government has identified ‘Coastal Shipping’, ‘Inland Water Ways’, as an economic and efficient mode of cargo transportation. Multi Modal logistic hubs are another step taken to reduce the logistic cost and improve transportation using the best mode possible i.e. rail, road and water ways.” Anil Diggikar Chairman, JNPT a significant volume it will allow systematic predictive analysis to enhance supply chain operations and product availability. Truck diagnostics is another area where fleet owners have started to benefit from tracking of asset utilisation and implementation of preventive maintenance. These are some of the technological changes we can see in the near future.” The GST Story According to analysts, the average distance covered by an Indian goods carrier has risen from 225 km a day to 300-325 km after the imposition of goods and services tax (GST) dismantled multiple sales tax and inter-state check gates on highways and state borders. Having said that, the rollout of the e-way bill was expected to remove the widespread corruption. But, the delay
34 CargoConnect - january 2018
caused the emergence of scrupulous middlemen who started issuing manual way bills and accordingly helped truckers avoid taxes. Once this e-way bill is streamlined, things are going to be smoother. K Satyanarayana, Co-founder and Director, Ecom Express Private Limited said, “The logistics industry as a whole has seen advantages after the introduction of GST as the tax rates has become uniform across the states, thereby offering seamless movements across the state borders. The players are at liberty to draw location of warehouses and network routes resulting in building an agile and efficient supply chain model. Such optimisation and rationalisation will certainly provide competitive advantage to the business leading to an enhanced opportunity for logistics service providers to deliver swiftly, accurately and efficiently.” At the starting point, the introduction
For real benefits of GST to flow in – in terms of reduction in logistics spend as percentage of GDP – it may take at least another 12-18 months. of GST like any other new system posed challenges in its adoption and the government has been amenable to the issues being faced by the industry, and in finding solutions thereby, assuring the required impetus to the industry. Deelipa from Shreeji opined that GST has made free long-distance road routes currently broken up by lengthy state border crossings; with trucks able to travel the length of the country comes the need for trucks that can make such journeys, built for greater power and greater speed. “India is known for its unusually low-powered trucks and high number of two-axled CVs – there’s a gap in the market right there,” he said. Shankar from TVS said, “We are expecting major efficiencies coming out of GST in the long term with the economy growing; and its one of most innovative reforms that the government has introduced in the recent times. Teething troubles are expected with any major change, but we have to be patient. For real benefits of GST to flow in – in terms of reduction in logistics spend as per centage of GDP – it may take at least another 12-18
Čˆ 0- 2*-' - 1*'1 . -*0) *0- 0./*( -.ȉ
Č? Ć™$ $ )/ 0./*( ' - ) Č? * -) ,0$+( )/. Č? *' /*- " Č? *(+0/ -$. + - /$*). Č? *) -0 &$)" Č? Ć™$ + !*- -1$ -*1$ -. /$1$/4 2$/# ) -) /$*) ' ./$) /$*) Č? *)) /$1$/4 2$/# )/ Č? )& $'$/$ . Č? ..$./ )/ -0" *)/-*'' -ȇ. Ć™$
www.gsecl.co.in |
Č? #$) -$ . ) + - . Č? ' /-*)$ . Č? 3/$' . Č? *' ) $'1 Č? # -( 0/$ '. Č? "-* -* 0 /. Č? (. ) 2 '. Č? ) $ - Ćœ.
info@gsecl.co.in
cover story months. However, there are some initial benefits that we are seeing in the form of 7 – 10 per cent reduction in travel time due to the elimination of check posts; and also reduction in waiting times.” Customers are looking at optimising their network and redesigning it based on various demand and supply scenarios and moving away from the tax optimisation model. They are evaluating vehicles choices and facility location choices based on this approach. To push tax compliance up to initially expected levels and boost
“Major trend expected in 2018 is changes in supply chain driven by GST. Companies will reduce the number of stocking points across the country, resulting in greater usage of express led distribution.” Abhik Mitra CEO, Spoton Logistics Pvt Ltd monthly GST revenue collections, the GST Council has announced the mandatory implementation of electronic permits (e-way bill) for inter-state movement of goods by February 2018. This will also help in weeding out unregistered traders, offer electronic trail of goods movement and ensure accountability. Overall, GST will be the catalyst in shifting industry preference for organised 3PL providers.
“Safety and security is both a threat and an opportunity. We will continue our efforts in working with bodies like the BCAS, TSA and other security agencies to get it right. We are all for security, and keen for this to be done in a productive way that makes good business sense.” Anand Yedery Regional Cargo Manager, SAMEA, Cathay Pacific Airways Here are a few observations and recommendations related to GST by Bharat Thakkar, JMD and Founder, Zeus Air Services. (i) International transportation of goods by road, rail, inland waterways, sea, air or any other mode including freight forwarding should be zero-rated. Alternatively, both international transportation and freight forwarding pertaining to international transportation should be exempted. To this effect, a proper clarification of by Circular / Notification with amendment must be issued. (ii) Ancillary services in relation to international transportation of goods like Customs clearances, warehousing, storage, cargo handling, packing, unitisation, port, airport, terminal, etc. should be zero rated or exempted. (iii) Our industry understanding of the IGST provisions is that Section 12 of the IGST Act is applicable when the location of the supplier of services and the location of the recipient of service is in India.
36 CargoConnect - january 2018
(iv) Further, Section 13 of the IGST ACT is applicable when the location of the supplier of services or the location of the recipient is outside India. (v) The airline is located in India; the exporter is located in India, and the freight forwarder is located in India. (vi) Our understanding of the IGST Act is that Section 12 has to be applied with reference to the transaction between the airline and the freight forwarder as well as between the freight forwarder and the exporter. (vii) This results in export freight getting taxed and affects the competitiveness of India’s exports which is not the intention of the Government. (viii) With Regards to Shipments on FOB basis, when a forwarder invoice’s Freight Charges to Overseas Agents or Importers, as GST cannot be exported, its paid by forwarders to Airlines and give LUT (Letter or Undertaking or Bond to the extent of 15%). Here again forwarders funds are blocked, making it difficult for Indian forwarders to survive. Infrastructural Issues Obscure Infrastructure is a great enabler for an efficient supply chain network. The transit trucks savings that we have got due to GST implementation is not fully realised. However., this is because the logistics companies are still struggling with wait times at the tolls booths. If government were to digitise toll collection; as in introduce FastTAG in a bigger manner across all highways, and increase the number of fast tag lanes, that would bring in much needed efficiency. Road infrastructure will get much needed boost with the central government initiative to develop approximately 83,677 km of roads at an investment of `6.92 lakh crore by 2022. From 22.5 kms per day in 2016-17, the Ministry is targeting constructing 15,000 km of national highways during 2017-18 – which is 41 kms of road construction daily. In addition to reduce transportation cost, enable freight aggregation, multi-modal freight movement, warehousing, custom clearance and support value added solutions, the Road Transport and Highways Ministry also proposed development of 15 logistics parks across Indian cities with high freight movement at an investment of about `33,000 crore. This apart, development of multimodal infrastructure will support seamless movement of goods between railroad-sea-air. Primary among them is advancing the state of our inland waterways and coastal shipping – more from a logistics perspective.
Contact
7.5 lakh sq ft ready Modern Warehouse located in PATGANGA, 32 km from JNPT port, 50 km from Mumbai City Located on 2 Lane Main road at about 6 km from National Highway (Mumbai – Pune Highway) Fully Guarded Premises with 24 hours security and CCTV camera. Industrial Zone with all permissions and licenses Inhouse weighbridge, fire brigade, adequate power and water supplies available. Open to Built to Suit model and Long lease.
PROJECT FEATURES
Kushal Agarwal +919867222204, Email: ka@rcbl.in | Saif +919821668613, Email: saifmithaiwala@yahoo.com Address: New Era Mills Compound, Mogul Lane, Matunga West, Mumbai-400016 | Tel: +91-022-40829500
Green Warehouse Powered with solar energy, recently completed in June 2017. Clear height of Warehouse is 12m / 40 feet. 25meters column span and 15 meters bay space. 100 feet wide Loading / Unloading Docking Areas. MHEs, Fork Lifts and Hydra cranes available at site. 4-5% Transparent white diffuser type Poly-carbonate sheets on the roof for excellent Lumination. One of its kind European standard natural air ventilation Roof monitors. 35 loading and unloading bays, dock levelers, as desired. Flooring Load Bearing Capacity of 7 tonnes per sq mt. LED power saving lights. Office on Ground and Mezzanine floor overlooking the warehouse. 100% Zinc-Aluminium clip lock non-penetrating roof sheets. Liquid Storage facility of 10,000 Tons available on site.
WAREHOUSE FEATURES
World Class International Standard Modern Industrial Warehouse Available for Lease from 50,000 sq.ft. to 7.5 lakh sq.ft.
NEW ERA WAREHOUSING
Ideal for Industrial Manufacturing, Warehousing and Logistics, Ecommerce, Consumer Durables, Chemical, Pharmaceuticals, Automobiles & Auto Ancillaries, Textiles, Furniture companies, etc
cover story Amar More, CEO, Kale Logistics is of the opinion that good infrastructure is a key to achieve an edge in any business and logistics is no exception. He said, “Trucking industry has suffered from the absence of good infrastructure. If you compare the average speeds, the maintenance costs of vehicles, serviceability etc., with the developed nations, we still have a long way to go. This also means that the trucking industry may have lost out on a lot of potential business opportunities
“To resolve issues, it is important that the local governing bodies support and expedite implementation of plans and policies which are set towards development of the country’s economy. One of the strategic targets of Lufthansa Cargo is the further development of Digitisation in order to improve efficiency and quality.” Frank Naeve VP APAC, Lufthansa Cargo AG that could have emerged from other modes of transport which were expensive or inflexible (like air or rail). However, the industry can already see the dynamism of our current Road and Surface transport minister. His zeal in upgrading the road infrastructure is quite perceivable with the number of kilometers of new roads built in a day going significantly up every year. The massive drive of using GPS or RFID based technologies to reduce delays at tolls etc. will also contribute immensely to efficiencies in trucking.”
“I think the collaboration between ports can be very helpful for countries to enhance the ties between the two countries as you have a natural start and end point of your cargo vehicles. So, it would be really helpful.” Edwin Lammers Vice President for Commercial and Business Development at Khalifa Industrial Zone Abu Dhabi Gandhi from Dachser said, “The infrastructure is the backbone of efficient supply chain networks to work operationally excellent. The development of India’s infrastructure would certainly help to increase efficiency in logistics and to make our country competitive. A better road infrastructure would decrease delivery times. Developing the waterways, both inland and coastal along with an increase of dedicated rail corridors to link major industrial towns and cities to the ports would improve efficient freight carriage.”
Port-led development for Maritime Growth Over 95 per cent of India’s international trade by volume takes place through ports, and hence, ports play a key role in India’s EXIM trade. India’s total port capacity is expected to rise to 3,000 million tonnes by 2025 from the current 1,500
38 CargoConnect - january 2018
million tonnes. The ports sector in India has witnessed significant growth in the recent past, especially in the container terminal segment. The Government’s Sagarmala initiative factors in next 20 years cargo projection, cargo profiling, capacity addition to cater to new cargo demand. It not only takes care of sea-side development but also the entire logistics chain on the land side. The Government has identified ‘Coastal Shipping’, ‘Inland Water Ways’, as an economic and efficient mode of cargo transportation. Multi modal logistic hubs are another step taken to reduce the logistic cost and improve transportation using the best mode possible i.e. rail, road and water ways. However, the sector faces hinterland connectivity pressures, and it is important that the connectivity to ports in India gets improved.
The ports are expected to have better material handling facilities thereby reducing the turnaround time and facilitating multi-modal movement. A n i l D ig g i k a r, Ch a i r m a n, JN P T said, “The Government is promoting the expansion and modernisation of existing ports as well as planning to develop more ports under the ambitious Sagarmala Project. The project is a comprehensive programme which holistically captures the opportunity of Port-led development in India by harnessing the potential of India’s coastline and inland waterways. It is an ambitious programme geared towards making domestic manufacturing and EXIM more competitive as well as uplifting coastal communities. The programme aims to drive the Portled development plan across areas of Port Modernisation and New Port Development, Port Connectivity Enhancement; Portled- Industrial Development and Coastal Community Development. It looks towards transforming existing ports into modern world- class Ports and integrate development of the ports, Industrial clusters and hinterland with efficient evacuation systems through road, rail, inland and coastal waterways resulting in ports to become the drivers of
january 2018 - CargoConnect
39
cover story economic activity in coastal areas.” “Based on the cargo traffic scenario study and port master planning under Sagarmala, six potential new port locations, namely - Vadhavan in Maharashtra, Sagar Island in West Bengal, Paradip Outer Harbour in Odisha, Enayam and Sirkazhi in Tamil Nadu and Belekeri in Karnataka have been identified,” Diggikar added. Edwin Lammers, Vice President for Commercial and Business Development at Khalifa Industrial Zone Abu Dhabi said, “I think, the collaboration between ports
“The railways have been aggressive in encouraging the private players’ participation and this has resulted in enhancing the infrastructural capability to provide value added services as well as bring down the overall costs.” Rajat Duneja Chief Operating Officer, DP World can be very helpful for countries to enhance the ties between the two countries as you have a natural start and end point of your cargo vehicles. It facilitates the trade in a way. So, it would be really helpful. Besides that, we should n’t underestimate the port developers as they have a huge network and experience which they can bring to a country. So, it will help the countries to further develop, may be in a quicker manner than they would develop it themselves. I think, as long as the countries keep having an open mind for investments i n t he i r por t /ra i l / airport or logistics infrastructure, if you are able to bring in a foreign expertise which increases your strategic position as a country, then, you Credits: Civilsdaily should always go for it.” Sandeep Chatterjee, Sr Manager, Delloite said, “We have a huge coastal line but unfortunately we have not been able to leverage this as waterways is a huge cost savings compared to road, rail and air. This is because we have not challenged the assumptions and we are so used to doing things in a particular
40 CargoConnect - january 2018
way. For example, if we are talking about transporting goods from Trivandrum to Ahmedabad, we only think of road or rail while the same can be achieved at a lower cost using waterways. In India, we have 12 major ports and 200 notified minor and intermediate ports but only a handful are operational to their potential. Sagarmala project will encourage multi-modal freight movement and hence will help lower the logistics costs. The ports are expected to have better material handling facilities thereby reducing the turnaround time and facilitating multi-modal movement. There will be dedicated loading-unloading bays near the ports to facilitate this.”
Rail Freight Sees Upward trend Fundamentally, multi-modal freight is a very cheap and efficient mode of transportation because we do not have the problem of labour in India. With the port-rail connectivity, the total cost of ownership is going to come down drastically which will make India competitive given the precedence of higher logistics costs in India. With better connectivity at ports and modern material handling, the turnaround time of loading and unloading is going to reduce further. Rajat Duneja, Chief Operating Officer, DP World said, “Despite tremendous pressures of the economy, it is commendable how the railways have managed to regulate their freight costs as well as increase its share in the country’s freight movement. The implementation of dedicated freight corridors (DFC) was introduced to boost the freight movement in railways connecting commodity intensive cities as well as providing uninterrupted and fast delivery of coal at thermal plants. With initiatives like Bharatmala and port-rail connectivity as well as the foundation of ‘Rail Development Authority’ as a regulator, the government is ensuring a level playing field between the rail and road route. “The revision in the AFTO policy has resulted in the entry fee reduction from 5 cr to 3 cr, at the same time, the minimum number of rake ownership for procuring a license has changed to 1 Rake from 3 previously. “The railways have been aggressive in
cover story encouraging the private players’ participation and this has resulted in enhancing the infrastructural capability to provide value added services as well as bring down the overall costs.” Dinesh Goyal, GM, Darcl Logistics Ltd said, “DFC will be a game changer in the freight transport sector of the country. The plan to construct dedicated freight
“As we move into 2018, we expect there to be consolidation of large warehousing firms, entry of reputed developers backed by institutional funding and rise in demand for large mother warehouses. This will result in the emergence of large scale nationwide players.” Jasmine Singh Head, Industrial and Logistics Services, India, CBRE South Asia Pvt Ltd corridors across the country marks a strategic inflexion point in the history of Indian Railways that has essentially run mixed traffic across its network. Once completed, the dedicated freight corridors will enable Indian Railways to improve its customer orientation and meet market needs more effectively. Creation of rail
infrastructure on such a scale — unprecedented in independent India — is also expected to drive the establishment of industrial corridors and logistic parks along its alignment.” The Eastern and Western Dedicated Freight Corridors constitute 22 per cent of total Indian railway traffic and these routes are fully saturated. Line capacity utilisation has reached more than 125 per cent and due to serious capacity constraint, average speed of goods train has dropped to 25 kmph. “The average speed of trains on DFC route will be 70 kmph leading to guaranteed transit times and time tabled running of freight trains. The average speed of freight train on DFC will increase by three-fold. The length of trains will be increased from 700 metre to 1500 metre and carrying capacity will increase from 5000 to 13000 tons/train,” Goyal added. The structures on Western Corridors are designed to carry double stack containers. The unit cost of transport is also expected to reduce by 40 per cent. DFC routes are constructed with
^c|dp^=fkaf^|ëÉã|ÄäÉÉÇKéÇÑ===P===OMJNOJOMNT===NRWNNWRU
Cargo to `
j
v
`j
jv
`v
BRAZIL
LISBOA
We fly direct!
• BELO HORIZONTE • RIO DE JANEIRO • PORTO ALEGRE
• FORTALEZA • SÃO PAULO • SALVADOR
• BRASÍLIA • RECIFE
• BELÉM • NATAL
`jv
h
Allied Aviation Pvt. Ltd. www.aaplindia.com
Integrated Supply Chain Solutions
TVS Logistics Services is an Indian MNC and the partner of choice for customers from across sectors for integrated supply chain solutions. With innovative solutions and robust technology, we overcome supply chain bottlenecks, deliver value for our customers and build enduring relationships the world over. Inventory Management
Master Data Management
Packaging Solutions
100 year TVS Legacy
www.tvslsl.com
Freight Forwarding
End to End Transportation
Global Strategic Purchasing
In-plant & Finished Goods Warehousing
Serving 50 Countries
Multi-Sector Expertise
+91 9841188200 | +91 9920074822
Material Handling & Management
Aftermarket Support
No. 1 in Auto Logistics in India
january 2018 - CargoConnect
contact.us@tvslsl.com
43
cover story the double line and it is also provided with automatic signaling thereby more than 150 trains can run in each direction. Goyal further said, “Initially, it is planned to divert 70 per cent of the freight traffic running on the parallel routes of Indian Railways and during the course of time, the road traffic will also get diverted to rail as DFCC will provide very efficient, economical, safe and faster mode of transport. This will help in improvement of railway share from 36 per cent to 50 per cent.”
to demand and operational feasibility, Railways affirms. The pilot project was launched on March 2, 2017. About 30 loaded trucks were transported on the flat wagons from Garhi Harsaru station in Gurugram to Muradnagar in Uttar Pradesh. Railways had pressed four Ro-Ro trains into service to cater to 500odd trucks every day. It had plans to increase the capacity to 40 trains per day. Ro-Ro service aims to reduce carbon emission and congestion on the roads of
logistics companies are expected to aggressively adopt industry’s best practices by 2020. Emerg i ng tech nolog ies such as blockchain, 3D printing, autonomous mobile robots, IoT, machine learning, and related technologies continue to get a tremendous amount of publicity. These technologies are being lumped together as “Digital” technologies, although the logic for that grouping – beyond the fact that they are all interesting, emerging technologies – is unclear. But these
What will the logistics marketplace look like in five to ten years? 1. Sharing the PI(e)
2. Start-up, shake-up
Incumbents increase their efficiency and reduce their environmental impact by collaborating more, and developing new business models, such as sharing networks. Research around the ‘Physical Internet‘ (PI) leads to shared standards for shipment sizes, greater modal connectivity, and IT requirements across carriers. 4. Scale matters
Data analytics Physical Internet standards
Blockchain
IT standards
Incumbents increase efficiency by streamlining their operations and taking full advantage of new technology. They fund promising new technologies with venture capital cash, and attract new staff with critical skills and expertise in competition to create a dominant market position. Major players merge to extend their geographical scale and enhance their cross-modal coverage. Access to capital to fund these investments becomes increasingly important.
Logistics scenarios
3. Complex competition Robotics and automation
3-d printing
Indian Railways’ launch of RO-RO services The Roll-on-Roll-off (RO-RO) service was initially introduced on Konkan Railway during the year 1999. Since then, the service is running on Konkan Railway on diesel route. On electrified routes, there are operational constraints for running of Ro-Ro service due to Over Head Equipment (OHE). However, during the recent past, trial run of Roll-on-Roll-off (Ro-Ro) Service has been carried out on various routes including the much talked about route between Garhi Harsaru and Muradnagar Roll-on-Roll-off (Ro-Ro) Service can be tried out on other routes also subject
44 CargoConnect - january 2018
Cloud Logistics
Drones
New entrants become significant players and take market share from the incumbents through new business models based on data analytics, blockchain, or other technologies. One or two become dominant in specific segments. Last-mile delivery becomes more fragmented, with crowd-delivery solutions gaining ground. These start-ups collaborate with incumbents and complement their service offers.
Autonomous vehicles
the National Capital Region (NCR) as about 66,000 diesel-guzzling trucks pass through Delhi and its adjoining areas in a day.
CONCLUSION Alongside, adapting digital operations, logistics companies globally are trying to set up and meet their sustainability goals - majorly by reducing their carbon footprints. According to the World Economic Forum, companies like UPS and DHL are amongst the top companies that are focused on sustainability. With an objective to reduce the carbon footprints,
Big retail players expand their logistics offerings to fill their own needs and beyond, effectively moving from customers to competitors. They purchase small logistics players to help cover major markets, and draw on their deep understanding of customer behaviour to optimise supply chains. Technology firms who used to be suppliers to the industry enter the logistics arena too, offering logistics services and turning into competitors.
technologies are at very different points on the supply chain maturity curve. As previously mentioned, autonomous mobile robots are rapidly approaching maturity. Blockchain is at the bottom of the maturity curve. ARC will continue to assess and report on the maturity of these technologies. Overall, 2018 should be an exciting time for logistics, as the modern-age technologies will be harnessed for driving productivity, increasing delivery experience score and creating new revenue streams while building an agile and a sustainable Supply Chain in parallel.
The Highest Circulated/Read & Referred Logistics Industry Magazine
Readership of over
4,00,000 Postal Registration No.: DL (S)-01/3372/2013-15 Licensed to Post without prepayment No.: U(S)-81/2011-12 Posted at IPMBC on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month
www.surecommedia.com
VOL VI ISSUE VII JUNE 2015 `20 www.surecommedia.in
Postal Registration No.: DL (S)-01/3372/2013-15 Licensed to Post without prepayment No.: U(S)-81/2011-12 Postal at IPMBC on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month
Technology: The Right Ingredient For Air Cargo
ACAAI CONVENTION ISSUE 2016
A new dawn in airport infrastructure
AIR FREIGHT FEELS THE NEW BUZZ Efficient Reefer Transportation: Key for Cold Chain Logistics
JUNE CARGO-2015 Print Final.indd 1
High Logistics Cost: A Hindrance to India’s Growth Story
Indian Air Cargo: The Anticipated Colour
Floor it Perfect
Priority Cargo: Right Here, Right Now
05-06-2015 11:42:20
Quality information is our strength, with a circulation of 4,00,000 copies. The regular circulation is supplemented with around 8,000 additional copies on an average that are distributed at various logistics industry events across India.
Kindly reach out to us for more information Ajeet +91 98109 62016
ajeet@surecommedia.in
www.surecommedia.in january 2018 - CargoConnect 45
Eicher Pro 1000 & Pro 3000 Series The 12-16 Ton GVW Trucks
EXTRA SPACE With a 24-feet cargo body Eicher LMD Pro Series is the widest range of trucks specifically tailored for E-commerce business. Right from long haul to short haul to last mile vehicles, Eicher trucks offer extra space, best in class mileage, superior uptime, enhanced driving comfort and faster turnaround time making you most profitable in your business.
Eicher Pro 3014
46 CargoConnect - january 2018
Eicher Pro 3015
Eicher Pro 3016
Eicher Pro 3012
Best in Class Rated Payload
Robust & Rugged Aggregates
Best in Class Fuel Efficiency
Next Gen Day / Sleeper Cabin
50,000 Kms
50,000 Kms Service Interval
, eicherlmd@vecv.in
january 2018 - CargoConnect
47
PAGES 96 INCLUSIVE OF COVER
www.surecommedia.in www.surecommedia.in
VOL ISSUE I DECEMBER VOL VIIIIXISSUE II JANUARY 20172017 `20 `20
Postal Registration No.: DLDL (S)-01/3372/2016-2018 Postal Registration No.: (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 WPP No.: U(S)-81/2016-2018 th Posted at at Lodi Road HPO, onththe 4th-5month same month same Posted NDPSO on theND 4th-5 RNI No.: DELENG/2009/31040 RNI No.: DELENG/2009/31040 Published onon thethe 2nd2ndofofthe thesame samemonth month Published
FORESEEING 2017
240/- + 600/- = 840/Special Feature Dynamic Custom Brokers– The Backbone of EXIM Business
480/- + 1200/- =1680/-
Securing Air Cargo: The Crucial Need
720/- + 1800/- =2520/-
Infrastructure Status The real heroes in the Granted: Logistics wake Demonetisation gets a of major boost
Project Logistics: Transporting Heavy Cargo with Ease
Air Cargo Connectivity Transcending Global Barriers
50/- courier charges per issue.
Company Name
MEDIA 6/31-B, Jangpura–B, New Delhi-110014 Tel: + 91 11 24373365/24373465 Mob: 9711383365/9810962016 Email: inf@surecomedia.in/cargoconnect@gmail.com
special feature
The Challenging Business of Chemical Logistics Chemical logistics requires high vigilance and absolute compliance of regulations and SOPs, at every step of the supply chain, due to volatile and hazardous nature of the products involved. The main challenge which the LSPs face is striking the right balance between maintaining safety standards and cost involved in its compliance throughout the value chain. Reluctance of chemical manufacturing companies in bearing cost of maintaining safety standards makes it a furthermore challenging task for the LSPs. Gaurav Dubey talks to industry experts in an attempt to outline the challenges and impact the GST has created on Chemical logistics business.
january 2018 - CargoConnect
49
special feature
T
he Indian chemical industry is estimated to be the fifth largest in the world and second largest in Asia after China. The fact that the industry contributes about 10 per cent of the output of the Indian manufacturing sector, 13 per cent of India’s total exports and nine per cent of the country’s total imports underlines its criticality for the country’s economy. The chemical industry is very diverse with close to one lakh products across a range of categories. The end-use customer segments are also diverse and have varied requirements. Industry structure ranges from highly fragmented in some segments to highly consolidated in others. Products exists in solid, liquid and gaseous forms, with some big inflammable
50 CargoConnect - january 2018
and hazardous, and hence each product comes with different handling, storage and transportation needs. The western coast of India has been the key hub for chemicals and petrochemical industry accounting for 60 per cent of trade. Gujarat and Maharashtra alone account for 65 per cent of chemical and 80 per cent of petrochemical production in India. Since production clusters are concentrated in one particular region, better infrastructure and logistics are required to supply chemical products across the country. The lengthening of supply lines makes the distribution of chemicals more transport intensive. The involvement of a large number of stakeholders (shipping lines, transport agencies, environmental agencies
People. Partnership. Performance...
Infrastructure & Advantages Custom bonded warehouse Import & Export hub Buffer yard & factory stuff Cold storage & cold chain
Entrance
Storage area 28,000 sqmt Direct access to the Naational Highway 4B leading to the JNPT port Ample space for parking of 10000 cargo trucks 24X7 CCTV monitoring CFS owned equipment: 4 top lifters, 80 trailers, 30 forklifts, 2 empty handles, 1 crane Distance from JNCH: 11 Kms
Covered Warehousing Facility
Distance from Belapur station: 7 Kms Zero toll, congestion & carting charges in the CFS Zero congestion on the approach road Carting & stuffing dine in covered area Ideal location for Exporters/CHA's/Freight Forwarders
Total Protection from Rains Carting & Stuffing area: Completely Covered.
Prompt carting of cargo Wi-Fi enabled CFS
Covered Carting & Stuffing Area
15-23, National Highway 4B, Panvel-JNPT HighwAay Village Padeghar, Panvel-410206, Maharashtra Ph: +91 22 66280700-98, +91 22 66280781 | Email :jwrcfs@jwllogic.com, raaj@jwllogic.com, hema@jwllogic.com, mgrops@jwllogic.com
special feature Safety and compliance are two critical factors in the business of chemical warehousing and distribution. Spillage or improper handling could lead to grave environmental risks. ‘Prevention is Better Than Cure,’ is the best mantra to adopt in this industry.”
important factors which broadly dominate the business of chemical logistics. “We at Avvashya CCI deploy licensed and professionally trained manpower to handle specialised or hazardous chemicals. Apart from following all the safety standards and norms, use of specialised vehicles like Naresh Sharma, Managing Director, Avvashya ISO tanks for transportation of hazardous CCI Logistics Private Limited and liquid cargo could also be proved instrumental,” he said. Sharma appreciated the GST reform and said, “The move is a etc.) in the transportation of chemical percentage of sales have also increased by definite welcome for the chemical industry. products further increases the logistics and 7.5 per cent in the same period, which will I estimate that by the next financial year, the supply chain complexity of the chemicals further add to the supply chain costs for process will be smooth and efficient.” He industry. Given the complexity of the chemical companies. Apart from the direct has observed that in the Post GST period industry and nature of chemical products, elements of transportation, warehousing the overall transit time has been reduced by the challenges in chemical logistics are and handling, many other indirect elements around 10-15 per cent in terms of long haul myriad. It has been observed that the contribute towards the overall cost burden due to elimination of inter-state check posts. logistics burden of all chemical product including packing, inventory, inventory segments in India has been growing at a holding costs and spend on QHSE (Quality, What dominates Chemical Logistics? faster rate than the sales. As seen in the Health, Safety and Environment). Naresh Sharma, Managing Director, Safety and compliance are two critical factors below chart, logistics cost as a percentage of sales has increased by 8 per cent in the Avvashya CCI Logistics Private Limited, in the business of chemical warehousing and past four years. The inventory levels as a opined safety and compliance are the two distribution. Spillage or improper handling
52 CargoConnect - january 2018
Our special closed container trucks to import/export goods at major ports. A fleet of 300 trucks, with a network of 1250 trucks outsourced from various other transport concerns across the country.
BRANCHES
Shreeji Translogistics is a strong and well networked company, at the forefront of the transport industry for over four decades. Head-quartered at Mumbai and with offices spread across the country, Shreeji makes swift and prompt deliveries and have been approved by the IBA-Indian Bank Association for our work across the country.
SHREEJI TRANSLOGISTICS LTD M 23, 3rd Floor, Menzies Aviation Bobba Cargo Terminal, Bangalore International Airport Limited, Devanahlly, Bangalore-560 300 Tel: + 91 80 2768 8331 / 32 Fax: + 91 80 2768 8334 Email: shreejibt@airtelmail.in Web: www.shreejitranslogistics.com
CONTACT: Mr. Rupesh M. Shah +91-98450 41533 | Mr. Dileepa B.M. +91-98452 70110
CUSTOMS ‘BONDED’ CARGO CARRIERS
special feature The main challenge is to maintain safety standards throughout the value chain along with managing the cost. While chemical industry is hell bent on logistics players to maintain safety standard, they are not ready to bear the cost of maintaining these standards.” Rajkiran Kanagala, Group Head Business Development, TCI
could lead to grave environmental risks. ‘Prevention is better than Cure’ is the best mantra to adopt in this industry. Large organised players like Avvashya CCI have the capital and bandwidth to deploy licensed and professionally trained manpower to handle specialised or hazardous chemicals. In an event of an accident or spillage these skilled resources are empowered and trained to manage and take decisions, on a case to case basis. The use of specialised vehicles for hazardous cargo, for instance ISO tanks for liquid products, is another factor that could prove instrumental in this direction. There is a need to follow the customer safety compliances like the requirement of deploying two well trained persons to drive hazardous chemical loaded vehicles under restricted speed conditions. Other measures which may seem small, but extremely important, are the need to remain in constant touch with vendor’s control room, deployment of fire extinguishers of both the CO2 and foam in the vehicle, first aid boxes and knowledge on how to use them. In addition, the knowledge of other road-safety measures (like safety belts) are other important factors to keep in mind during transit of hazardous chemicals. Audits by external agency on such vehicles every year is a must with complete checks on documents for compliances shown to customer, even before such vehicles can be deployed for carrying hazardous chemicals and petroleum products. Also, timely maintenance of these vehicles is critical to mitigate damages. Vehicles should be thoroughly checked before loading the chemicals for leakages, pressure on tyres, safety kits, first aid kits, spark arrestors, PPEs etc.
54 CargoConnect - january 2018
Steering challenges
through
Dealing with chemicals is a niche and specialised function. At every leg in this supply chain, there are specialised parties involved. For example, Maersk for sea freight movement. At Avvashya CCI, they have secured all necessary licenses, certificates and approvals at every level and ensure they work with partners that are certified and have similar compliance. Most large chemical transporters and dealers are registered with Nicer Globe, an initiative of the Indian Chemical Council that issues certifications. This in turn ensures smooth movement and distribution. An end-to-end supply chain of chemical products or hazardous chemicals involve freighting by sea, clearance in customs, transport to warehouses or factory, storage of these hazardous goods in factory or warehouse etc. At each stage, they have trained safety and compliance teams conducting audits on processes to be adopted for handling the hazardous goods, checking the PPEs in use, the roads and routes to be moved upon, the impediments that can come across on the routes, the warehouse compliances and the documents produced by warehouses or factories while in storage etc. Wherever it is felt that they have a shortcoming, focus shifts towards eliminating this by implementing necessary safety measures immediately. Only after certification by the safety agencies, the supply chain juggernaut moves ahead.
In the post GST period, transit time has reduced by 10-15 per cent GST will be beneficial across industries in the long run. Likewise, in the case of chemical industry, GST has led to a consumption based
logistics planning approach, rather than tax based planning. Warehousing can now be built according to geographic and business benefits. Post GST regime, we have done away with inter-state check posts thereby reducing the overall transit time by around 10-15 per cent in terms of long haul. However, even as temporary issues still persist like road permits, the lack of a robust IT infrastructure for tax filings especially for service providers etc., in the longer run, it is definitely a welcome move for the chemical industry. It has been estimated that by the next financial year, the process will be smooth and efficient.
Benefits of consolidation in post GST will not be easy to grab Almost every predictable impact of GST on the Indian industrial sector looks positive like in case of most of the industries. The only difference being that in-transit/short term storage of chemicals will not be possible as easily as in the case with other consumer goods as correct storage and handling of the product across the value chain will remain a challenge. This means lead times and inventory costs to customers will have to be still addressed like in pre-GST era. Add to it, benefits of consolidation in storage/ warehouse space will also not be so easy for Chemical industry since compliances/licenses do take a time and risk mitigation issues will come in.
Environment and Social Protection Sustainable business is the need of the hour. Currently movement of goods is skewed towards road transportation. Companies need to opt for alternate modes of transportation. Movement through rail could be one such avenue. The use of multimodal transportation requires better inland connectivity. These policies are now globally gaining grounds. Every country has implemented various measures to follow the safety, sustainability and environment protection rules and regulations. Gradually, these rules and regulations are set to get stringent on implementation. Moreover, environment and sustainability protection are a must, as every country has found out that tampering with these standards makes living a nightmare and the humanity in general faces survival
special feature O r g a n i s a t i o n s w h o u n d e r t a ke transport of hazardous and harmful substances must have a SOP for spillage control en route especially on road. Once these goods are loaded on board ships the vessel’s Master and crew takes action if there is any leakage.” Shashi Kallada, Consultant and Trainer – Dangerous Goods Transportation
adversities due to these increased levels of pollution, smog, poisonous gases, spillages, dangerous chemical gas emissions etc. Growing and improving profitability is not the only objective of any organisation. Companies storing or holding chemicals have to excrete the waste products in variable amounts which could create a misbalance in the ecosystem. Companies partially compensate by taking voluntary
during the transport of dangerous goods can lead to catastrophic consequences. Rajkiran Kanagala, Group Head Business Development, TCI said as storage and logistics of chemicals is a serious business and high vigilance needs to be ensured at every step, due to volatile and hazardous nature of the products involved, the main challenge which LSPs face is in striking balance between maintaining
steps towards a green environment. Sharma asserted, “At Avvashya Foundation, the CSR wing of the Avvashya Group, under the ‘Maitree’ initiative, we have already planted over 3.80 lakh trees with an avowed objective of planting one million trees in the next few years.”
safety standards and cost involved in its compliance throughout the value chain. Reluctance of chemical manufacturing companies in bearing cost of maintaining safety standards makes it furthermore challenging task for the LSPs. Dangerous goods can be transported without causing hazards if handled properly and with care. Laws and recommendations have been established to protect the society and the environment. But, all these regulations, standards or guidelines are only limited to plant level and are not prevalent in end to end supply chain.
Striking the right balance Chemical industry is a highly complex industry. The transport and storage of dangerous chemicals and goods has increased with technical and production development. An accident occurring
56 CargoConnect - january 2018
The main challenge is to maintain safety standards throughout the value chain along with managing the cost. While chemical industry is hell bent on logistics players to maintain safety standard, they are not ready to bear the cost of maintaining these standards. In fact, every now and then reverse auctions are conducted to cut the cost. No matter how much we pretend to be committed to safety it will not be effective if you, whether you are a manufacturer, trader, worker, transporter or inspecting authority, do not share the monetary responsibility too, in order to avoid unnecessary risks. Safety is a serious business for the chemicals industry. Due to the nature of its products, the industry needs to be more vigilant than most to ensure that goods are do not get spilled or are tampered with during transit. ISO tanktainers are considered to be the safest mode of bulk transportation of chemicals. But the number of ISO tanktainers available in market is less. The reason behind logistics player’s ambivalence to invest in this costly asset is again non-willingness of chemical companies in sharing the cost. Even today fixed chassis truck carriers are preferred over ISO tanktainers because of low cost. Even some global terminals in India doesn’t have facilities for loading the ISO Tanktainers. Overall, the industry believes in saving the logistics expenditure on the cost of safety. To rectify the problems of the chemical transportation industry a serious reappraisal of the basic guiding principles of the industry is the need of the hour. HSE should be included as a part of board meeting and a balance sheet should be maintained of the same.
Multimodal is the future The future belongs to multimodal logistics by rail and sea modes. The reasons for this are numerous. For example, forwarders, and in particular branded companies, increasingly have to deal with customers who are demanding sustainability in logistics. Therefore, logistics companies are required to offer suitable solutions. These will then automatically be multimodal
We offer Peace of Mind
OUR SERVICES Freight Brokering & Negotiation | Documentation | Air Freight (Direct and Consolidations) | Ocean Freight (Containerized and LCL) | Project & ODC Cargo | Warehousing - Distribution - Door Delivery - Pickups | Information Management | Custom Clearance - Air / Sea | Exim Consultancy & Letter of Credit referrals
Everfast Freight Forwarders Pvt. Ltd. CORPORATE OFFICE: FF CS-02, Ansal Plaza, Vaishali, Opp-Dabur, Ghaziabad 201010 UP. TEL: +91-120 4184500 FAX: +91-120 4184555 MAIL: info@everfastfreight.com WEB: www.everfastfreight.com BRANCHES: Delhi, Mumbai, Chennai, Kochi, Calicut, Lucknow, Coimbatore, Kanpur, Kolkata, Bangalore
special feature Accidents in chemical transportation have long term impact. The actual impact is almost 10 to 12 times more than visible impact. Though many of the direct cost can be mitigated through adequate insurance cover which is also a cost to the insurer there can be huge implication due to public liability claims.” Ravikumar Nair, VP – Logistics (Chemicals), Reliance Industries Ltd
because if we’re talking about ’Green transport’ then inevitably we are talking about using trains and ships. Furthermore, forwarders would also consider entering the market with sustainable logistics of their own accord, if they were able to get the costs under control. Rail transportation is anytime much cheaper than road transportation in long haul. ISO tanktainers with higher loading capacity are able to pass on the cost benefit to chemical companies. Kanagala said, “One of our joint venture companies, TCI CONCOR is doing end to end movement of solid and bulk liquid chemicals by rail. Up till now we have safely moved around 2mn tonnes of chemical by rail and are proud to call us as ‘Leaders in Green Logistics’. We hope in future many companies will definitely opt for transportation via rail route more than what is currently been seen.” Shashi Kallada, Consultant and Trainer (dangerous goods transportation by rail, road, river and sea) is an expert in handling of dangerous goods and has years of experience with some of the leading companies of the world. According to him, Standard Operating Procedure (SOP) should be strictly adhered when it comes to the transportation of hazardous and harmful chemicals. All stakeholders involved such as shipper, consignor, consolidator, freight forwarder, packer, container operator, carrier, intermodal operator, consignee, and all others involved in the transportation procedure should work in perfect coordination to avoid any untoward incident. Kallada also talked about the sustainable development of the transportation business in his response.
58 CargoConnect - january 2018
As a subject expert in the field of dangerous goods transportation, Kallada has certain recommendations to make that have been enlisted below: Adherence to Standard Operating Procedure (SOP) is essential Organisations who undertake transport of hazardous and harmful substances must have a SOP for spillage control en route especially on road. Once these goods are loaded on board ships the vessel’s Master and crew takes action if there is any
Consolidation benefit in warehouse space will not be easy for Chemical industry since compliances/ licenses take time and risk mitigation is also an issue. leakage. However, on road transport from to ports the transport company must have their own spillage control measures and necessary training to staff to mitigate any hazard if an incident occurs. Perfect coordination among various stakeholders facilitates transportation Current practice in the industry is mostly driven by individual entities acting on their own method of working, however, the transport sector carrying hazardous and harmful substances must have close coordination between all the stakeholders such as Shipper, Consignor, Consolidator, Freight forwarder, Packer, Container
Operator, Carrier, Intermodal operator, Consignee, and all others involved in the transport. Entities offering or transporting goods must be sure that the activities undertaken by a service provider are carried out in compliance with international and national regulatory frameworks, and conform with the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code).
193 countries adopted UN’s 2030 Agenda for Sustainable Development 193 countries of the world have adopted the United Nations 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs). International Maritime Organisation (IMO) is actively working towards achieving these goals in maritime transport sector.Some of the IMO’s goals include Promoting the ratification and enhancing effective implementation and enforcement of MARPOL Annex VI (Prevention of Air Pollution). All parties involved in the transport sector including ship builders and ship recyclers have a major or minor role to play in sustainable transport and the cost will be absorbed by all the parties however lion share will be borne by the shippers. Ravikumar Nair, Vice President Logistics (Chemicals), Reliance Industries Limited has observed that accidents of hazardous goods create long term impact and impact of such accidents are actually 10 to 12 times more than it looks. Costs could be mitigated through insurance cover but the reputational damage is more significant and it couldn’t be managed by any means. There should be a comprehensive approach to address distribution safety concerns so that accidents could be avoided at first place. On GST’s impact, Nair feels that it would be pre-mature to comment on GST’s impact and said, “Approximately, three per cent to five per cent improvement in transportation cost can be expected once the system gets matured and benefits of increased lead distances travelled by trucks could be achieved on sustained basis by transporters.”
special feature Ravikumar Nair, having an experience of more than 20 years in the industry, has certain observations regarding the transportation of chemicals. They have been enlisted below:
Holistic approach towards distribution safety concern is required Accidents have long term impact. The actual impact is almost 10 to 12 times more than visible impact. Though many of
the direct cost can be mitigated through adequate insurance cover which is also a cost to the insurer there can be huge implication due to public liability claims. Reputational damage can be significant and with increased awareness levels and environmental sensitivities the damage can be substantial that will take enormous time and resources to get the affected sites rehabilitated. Currently, there is no separate fund to compensate for these losses and the risk is mitigated by having marine cargo and public liability insurance policies. There is a need a have a holistic approach to address distribution safety concerns.
Automation is the key to reduce rising logistics cost Logistics cost optimisation is about managing all the controllable factors. With majority of the input costs being non-controllable the emphasis should
be on productivity improvement using automation and asset utilisation. We need to ensure that turnaround time gets improved which will in turn improve revenues for the LSPs which can help in bringing down overall costs. Warehouse automation along with faster loading /unloading will help better turnaround of vehicles thereby helping cost optimisation. Innovative solutions for last mile deliveries will be a key differentiator towards optimisation. The time spent for
marketing and sales team to pick up early signs of changing market promptly. Holding consolidated inventory with ability to re-position them to demand centres is crucial and need of the hour. Dynamic S&OP systems along with real time inventory monitoring, flexible manufacturing and logistics capabilities as part of an integrated system with supply chain tower monitoring concept will be a key enabler to meet surge demands thereby maximising opportunity sales.
ISO tanktainers are considered to be the safest mode of bulk transportation of chemicals
Conclusion
the last mile delivery is relatively higher as compared to other legs on account of various local restrictions imposed on heavy vehicles involved in last mile city deliveries.
Inventory at right Place on right Time and in right Quantity Inventory optimisation is the key in the current context of VUCA world of business. Inventory at the right place on the right time in the right quantity and cost is crucial is ensure optimum service levels and profitability. Ability of any organisation to respond to ever changing business situations is crucial to ensure optimum service levels and profitability. Supply chains have to be extremely agile to respond to the dynamic market situations. Customer fulfillment teams within supply chain has to share a collaborative working with front end
The Indian chemical industry and LSPs need to focus on Supply Chain as key lever to manage their business and develop solutions towards optimisation of logistics cost to remain competitive in the global marketplace. A thorough analysis of global best practices in chemical logistics suggests that companies, involved in chemical logistics business in India, required to emphasis on some key levers for managing their logistics cost. Firstly, differential replenishment models along with increased visibility and reverse/ re-transfer logistics is imperative for the future. Secondly, Network and route planning should take into account real time events like traffic and availability of equipment and personnel for loading/ unloading, material handling and flexibility to switch between modes. The traditional view of lowest cost model for transportation has become outdated now. Thirdly,Adopting and complying with Quality Health Safety and Environment Policy (QHSE) and related asset development is going to become a necessity for the industry as customers are becoming more and more aware now. Lastly,there is need to undertake skill development initiatives at the lowest levels and adopting latest technologies and IT systems. The logistics workforce in India, predominantly operational front-line staff (drivers, goods handlers and workers for loading/unloading) are minimally educated and lack knowledge of handling hazardous products. Hence, in such a scenario, skill development of frontline workforce is a need of the hour in order to avoid any untoward accidents. january 2018 - CargoConnect
59
feature
Measuring the Value of Warehouse Data to ensure success As with many other aspects of business, the supply chain management (SCM) industry is working hard to manoeuvre technology to accelerate processes and cut costs. Many supply chain leaders are now dissecting how emerging technologies such as the cloud, the Internet of Things (IoT), machine learning and artificial intelligence (AI) can benefit the supply chain. Experts say, if executed properly, the supply chain will, undoubtedly, reap the benefits of a digital makeover. Deepashree Banerjee offers a glimpse in measuring the value of Warehouse Data and explores the opportunities and trends that have sprung up as a sequel of technology development.
60 CargoConnect - january 2018
feature
W
arehousing is the second most important vertical after transportation when it comes to forming a robust distribution value chain countrywide. At present, the warehousing sector is the strongest area that’s driving the Indian Logistics industry towards growth. Segments such as agriculture, manufacturing, ecommerce, and organized retail are driving the exponential growth of warehousing. Interestingly, warehousing costs constitute around 15-35 per cent of the total logistics cost depending on the product and markets served. However, businesses aiming to make the transition to the cloud and integrating emerging technologies must ensure the adopted technologies not only streamline business processes, but also help solve day-to-day challenges now and in the future. While it is extremely important for all industries to take advantage of new business technology solutions, the retail and manufacturing industries have an opportunity to dramatically
improve day-to-day warehouse logistics and also decrease product time to market. Whether businesses would like a better view of their assets, or save time and money, moving supply chains to a cloud platform, enabled with AI, IoT and machine learning, will undoubtedly lead to business outcomes, predict experts. In today’s highly global manufacturing and supply chain economy, it’s no surprise that manufacturers need to embrace better communication to manage cultural, geographic, and language differences so as to operate effectively. At the end of the day, better communication implies better efficiency, less waste, and higher customer satisfaction. Complex, global economic issues have only increased the difficulty in overcoming the top challenges faced by logistics professionals: cost reduction, visibility, customer service, integration, and data management. While these are not new challenges, today there are new options on how to resolve them. More mature solutions now yield greater visibility, improved
january 2018 - CargoConnect
61
feature “The era of separate roles for agile data warehouse design and ETL are gone. Professionals need to be adept at structuring of data using agile data warehouse and ETL as well as have the ability to analyse and find meaning in the data” Sandeep Chatterjee Senior Manager, Deloitte
logistics execution, and faster access to consolidated data from across the company to ultimately understand operations with greater precision – resulting in reduced costs and improved customer satisfaction. AI, machine learning and IoT can also uncover new ways for a company to smoothen the supply chain processes. Powerful data analytics gathered from AI, IoT and machine learning technologies can provide businesses with the information needed to not only course correct should any issues
Two-layer architecture for a data warehouse system
Transfer/Load (ETL) process for data integration, Sandeep Chatterjee, Senior Manager, Deloitte shares his views on how both will remain relevant in the big data era is critical to a growing number of roles in both technology and business. “As we move into the era of Cloud Computing, Artificial Intelligence and DevOps, there will be less need for pureplay technology roles. The routine jobs will be eliminated while the analytics driven skills will continue to be the hot skills. With the humongous volume of data which is being generated, it will be humanly impossible to structure the data manually. The agile data warehouse design and the ETL process for data integration will come handy here as they will be able to structure the data in a record time. Having said that, we will still need a human brain to analyse the data. The era of separate roles for agile data warehouse design and ETL are gone. Professionals need to be adept at structuring of data using agile data warehouse and ETL as well as have the ability to analyse and find meaning in the data,” Chatterjee explains.
Systematic and efficient arrangement of data
Source: cdn.ttgtmedia
arise, but also use that knowledge to develop strategic, forward-thinking plans that better serve the business, its customers and its partners. Additionally, supply chain transportation will improve as logistics receives updates on traffic delays and keeps drivers appraised in realtime to help keep shipments moving. As more enterprise-level companies recognize the need to become analytics-driven, knowledge of agile data warehouse design, the Extract/
62 CargoConnect - january 2018
Chatterjee shares, the data volumes are exploding; more data has been created in the past two years than in the entire previous history of the human race. “Data is growing faster than ever before and by the year 2020; about 1.7 megabytes of new information will be created every second for every human being on the planet. By then, our accumulated digital universe of data will grow from 4.4 zettabytes today to around 44 zettabytes, or 44 trillion gigabytes,” Chatterjee decodes further. “At the moment less than 0.5 per cent of all data is ever analyzed and used. This is because with such huge volumes, the data is not structured and available for analysis. Global data warehousing will play a big role in the arrangement of data. We will still need a human brain to analyse the data. With machine learning some of the basic analysis may be automated but any sophisticated analysis will still need the human brain,” he adds. Most of the Warehouse Management Systems (WMS) furnish a way to streamline logistics operations coupled with some sort of reporting or analytics. But recent years have demonstrated that integration and data management
We keep things fresh...
Infrastructure & Advantages Storage of 7000 pallets, 15 identical chambers of 432 pallets each Temperature range of +25 degrees C to -25 degrees C 24X7 operational
Services
VAS facility of processing, repacking, labeling & sorting Customs bonded area Operational reach trucks, forklifts & hand pallet movers IT infrastructure with WMS, FIFO, control & Barcoding systems Inflatable dock shelters with dock levelers
Temperature Control Handling Area
100% power back up with multi generators Fire fighting & fire prevention systems LED eco-friendly lighting ISO 22000:2005 & HACCP certified Rr Vans to support distribution Freezer\Chiller Chamber
15-23, National Highway 4B, Panvel-JNPT Highway Village Padeghar, Panvel-410206, Maharashtra Tel: +91 22 66280700-98, +91 22 66280781 | Email: raaj@jwllogic.com, vaman@jwllogic.com, cs@jwllogic.com
feature
“Data is the new currency of this day and age and as businesses become more analytics-driven, an agile data warehouse design with automated ETL processes becomes crucial as it can aid in accurate data integration”
Deep Agarwal Regional Sales Director – India, Zebra Technologies
challenges require more than just a few interfaces or consolidation layers. Current best practices say that to gain the best possible visibility and integration, people need to share the same data and have access to it quickly.
salient knowledge through advanced search and analytics has become the next capability for gaining insight and navigating the continuous process improvement. In order for this to happen, companies nowadays yield an underlying business
becomes crucial as it can aid in accurate data integration, says Deep Agarwal, Regional Sales Director – India, Zebra Technologies. Therefore, though digital data analysis is still in its infancy, its payoff is promising.” In fact, Zebra has always
process management capability in place. It is considered the blueprint for internal function of a company, as well as with external partners and customers. By generating a process-centric model for one’s business, and then integrating big data results, a company can deliver the right information to the right person at the right time. Basically, this process-based setup takes the information that has been analyzed and makes it actionable, which can then let the enterprise achieve its next level of agility. Data is the new currency of this day and age and as businesses become more analytics-driven, an agile data warehouse design with automated ETL processes
been at the forefront of building datadriven businesses with continued support for enterprises to benefit from current transformational technological changes. Through our Enterprise Asset Intelligence (EAI) suite, we provide businesses realtime, accurate data capture and analytics, enabling workers to make smart business decisions,” Agarwal adds. Zebra’s technology gives businesses real-time visibility, allowing them to sense what is happening in their operations by capturing data about people, processes, and things. With this data, they have the ability to analyse data generated by this new level of real-time visibility and delivers actionable insights that lead to smarter
Connecting the Dots The accelerated demand of the consumers decree that businesses first need to ensure that their supply chains can keep pace and continue to stay competitive. But still, disconnected legacy systems are inhibiting retail and manufacturing companies from quickly adopting technology solutions to address the needs of modern business. In a move to provide a newer approach to legacy systems, businesses should look to cloudbased management solutions to integrate all areas of supply chain, both internal and external, to gather real-time data and enable a more holistic view into the supply chain. Emerging technology devices and systems contribute hugely in bringing together supply chain planning, manufacturing and maintenance and also provide the necessary insights to properly manage across the entire system.
Unified Business Process Management and Big Data Gaining the ability to study big data can itself accelerate business transformation. The ability to become a more dynamic, adaptable business hinges on the ability to know how to use the data towards the goal of evolving and automating your business processes, towards transforming the next wave of manually-performed or unstructured processes to the next plateau of productivity and competitiveness. This is where the need to distill big data into
64 CargoConnect - january 2018
feature the production process operates smoothly,” he signs off.
One step ahead
decisions. Finally, Zebra solutions deliver these insights to mobile workers, when and where they are needed, empowering them to act in the most connected and productive ways. Agarwal also agrees that the global data warehousing as a service market is primarily driven by the systematic and efficient arrangement of data. Data warehousing as a service is market Source Systems
a holistic manner, compared to only 46 per cent doing so today,” says Agarwal. Agarwal further explains that as manufacturers adopt Industry 4.0, the only way to gain a competitive advantage will be to use data at the operational level. “This will drive the adoption of active data warehousing as businesses gradually realise the importance of empowering the middle management and ground staff
Data Storage and Aggregation Direct Operational Reporting
Presentation Operational Reports
IMS Finance
R&D
ETL
Details Operational Data store
Marketing ETL
Logistics Demand Planning
ETL Sales and Data
Forecasting and planning
Master Reference Data/Confor med Dimensions
agnostic and can be utilised in any area of business, he feels. “The key lays in a) the efficient arrangement of data, followed by b) real-time analysis and insight generation. For example, in manufacturing; as per the recent Zebra’s 2017 APAC Manufacturing Vision Study - by 2022, fully-connected smart factories in APAC will triple, with 77 per cent expecting to collect data from production, supply chain, and workers in
Product Portfolio Segmentation Data Mart
Supply Chain/ Logistics Data Mart
Finance Specific Data Mart
Analytics
Dashboards
Alerts
Scorecards Business Rules, Goals and Strategies
with support, to help them with tactical decisions. Zebra plays a key role here, as it helps workers use a combination of RFID, wearables, automated systems and other emerging technologies to monitor the physical processes of the plant, simultaneously enabling companies to make decentralized decisions. And, as automation increases so will instant access to data which is essential to ensuring that
The key to a modern and successful supply chain is a complete, end-to-end view across the entire supply chain. A state-of-the-art technology to fine-tune operations and stay in the course is the need of the hour for most companies. This kind of innovation is not easy, but as the industry leaders in global markets begin leapfrogging their competitors, it will be clear that innovation is not just a buzzword. It will soon turn into the key to survival. These emerging technologies like AI, IoT and machine learning not only help businesses’ supply chain processes today, but also prepare them for the future supply chain management. Cloud-based solutions aids in lessening the burden of maintenance and upgrades ensure regulatory compliance quickly and are designed to integrate future business technologies, allowing businesses to better focus on their core mission. For instance, a supply chain manager using cloud technology would be able to see the full spectrum of warehouse activity across different locations both globally or regionally. Moreover, once this technology is paired with AI, IoT and machine learning, the manager will be able to see if a machine is not operating at full capacity, be able to source the problem and use these emerging technologies to fix the issue in real-time— even if they are not at the location where the incident happened. More logistics and manufacturing professionals have come to realise that to reduce costs and improve customer satisfaction they need to have realtime insight, into their operations. To accomplish that, they must have their data managed in a unified environment that can be adjusted as the pace of business change. Businesses adopting solutions that support such approaches are capable of setting significantly higher standards in customer service, while keeping or even improving their operating margins. This totally integrated approach suggests a new era for logistics and warehouse management professionals. january 2018 - CargoConnect
65
feature
Logistics Industry
Post GST Set for a Smooth Ride Logistics fraternity has been indeed longing to welcome GST – the single tax window and finally the wait is over! Now that the Bill is implemented, experts predict tremendous growth and bright future of the transport and logistics industry. While the entire dynamics of transportation and logistics will undergo a sea change now post GST, it will lead to a fitter and leaner logistics industry, which in turn will lead to greater efficiencies. Ritika Arora Bhola, in line with experts, talks about their expectations from GST and future of the logistics industry.
66 CargoConnect - january 2018
feature
T
he Indian logistics industry had waited long enough for the Goods and Services Tax (GST) bill to be passed as it promised to benefit the industry in many ways. And now that the bill has been successfully implemented, logistics industry is curiously engaging in the newly reformed practices and operations. For manufacturers, GST has now replaced the multiple state VATs and the need to have a hub/ warehouse across all states. GST has also allowed the firms to centralise hub operations and redesign supply chains to take advantage of the scale economies. Big and small scale industries can now employ efficient practices such as crossdocking and bulk-breaking from a central location.
Under GST, the tax on storage, warehouse and labour services has been increased from 15 per cent to 18 per cent. Therefore, a third-party logistics provider (3PL) can now have more incentive to move towards the provision of services that have a high degree of value-addition and where input tax credit can be claimed. This can result in consolidation in the storage and warehouse sector. Also, with the measures like e-way bill, GST has allowed the ease of entry across all states with reduction in transportation delays. However, for e-way bill, streamlined IT systems and ready-to-use documentation at the entry points is required and it is still in the process of being in function.
january 2018 - CargoConnect
67
feature GST has made a great impact on the logistics industry, as GST is the consumption based tax and not production based. The reform has improved the efficiency of both, transportation and freight forwarding. Pre-GST the cost of logistics was at 14 per cent of GDP, which had a negative effect. But the scenario has transformed now with GST being proved as the game changer for the industry.“
Brijesh Lohia Managing Director, Global Ocean Group Logistics Industry: Present and Future Post GST According to the reports, logistics sector is fast evolving and is expected to be worth US $307 billion by 2020. While other developing countries spend less than eight per cent of their GDP on this sector, India spends around 14.4 per cent of its GDP on logistics and transportation. The sector is
expected to grow at a CAGR of 15-20 per cent between FY 2016-2020, and industry experts are optimistic about this predicted growth due to the easing of rules for goods movement across state borders. In the last two years, India’s logistics performance has been tremendous and is witnessed by the experts across the world. It was made evident in the World Bank’s
Critical business implications post GST implementation Supply Chain Re-engineering Many service providers have to revamp their supply chains, realign their warehousing and logistics networks. This gives tremendous opportunity to 3PL and 4PL logistics providers. Transportation Re-organised manufacturing plants and warehouses would reduce the primary freight charges as they are located close to each other irrespective of which state they are in. However, secondary freight may increase because of the fewer warehouses. Consolidation and Outsourcing With the increase in the availability of organized and efficient players, there is a possibility of consolidation. Also, this leads to the outsourcing of their logistics operations to logistics service providers. Skill set upgradation and service levels The need for optimally skilled and technically qualified workforce is likely to become a challenge. Hence, to cater to this need, supply of skillful workforce should improve which in turn improves the service level of the company in its operations and meet the customer demands. Automation Because of the fewer warehouses, the warehouses can be ramped up and equipped with state of the art technology to facilitate long term benefits. Latest warehouse management systems (WMS) and modern robotics can be used for the effective and efficient warehouse management. 68 CargoConnect - january 2018
biennial measure of international supply chain efficiency report namely The Logistics Performance Index where India’s ranking catapulted from 54 in 2014 to 35 in 2016. The report stated that the introduction of GST will further give impetus to the transport and logistics industry in India. While the entire dynamics of transportation and logistics will undergo a sea change now that the GST is implemented, it will lead to a leaner and fitter logistics industry, which in turn will lead to greater efficiencies. Both transport as well as manufacturing companies will be able to take better advantage of the economies of scale. Envisaging the future of the industry post GST, Brijesh Lohia, Managing Director, Global Ocean Group says, “GST has made a great impact on the logistics industry, as GST is the consumption based tax and not production based. The reform has improved the efficiency of both, transportation and freight forwarding. PreGST the cost of logistics was at 14 per cent of GDP, which had a negative effect. But the scenario has transformed now with GST being proved as the game changer for the industry. With GST, the sector that was highly fragmented with unorganised players is now consolidated and is in a gradual positive makeover.” Lohia continues, “In the close future, the GST implementation will continue to support organised players with three key implications for the logistic sector: 1. Consolidation of warehousing network and a shift towards a ‘Hub & Spoke’ model. 2. Higher degree of Tax Compliance. 3. Creation of level playing field between Express and Traditional Transport Services providers by virtue of access to input tax credit.”
FREIGHT FORWARDING
RELOCATIONS
Our Services
CUST D O OMS ES GE BROMKERA T IC
CONSULTANCY
R
OF
L
E
A
S
NC
YE
E
SCM EX C E
L
Sindhu Cargo Services Private Limited An ISO 9001:2008 Certified Company
No 34, Block 3, Sindhu Logistics park, Behind MVIT college, Bettahalasuru, Bangalore North Taluk, Bangalore - 562157
Our Network Bangalore
Mumbai
Cochin
Ahmedabad
Nashik
Chennai
Hyderabad
Pune
Nagpur
Tuticorin
Delhi
Kolkata
Coimbatore
Raipur
www.sindhucargo.com
CIN NO. U85110KA1991PTCO12381
Phone: 080-7188-8008 Email: info@sindhucargo.com
feature Post GST the government should provide exciting times for logistics and particularly so for 3PL/warehousing industries. GST is an evolution of the pre GST tax regime, transforming the complex and cascading structure into a unified valueadded system of taxation. Under this, a value-added tax would be levied at every point of the supply chain providing for credit for all taxes paid previously.”
Bharat J Thakkar Co-founder and Joint Managing Director, Zeus Air Services Pvt Ltd Agreeing with Lohia, Bharat J Thakkar, Co-founder and Joint Managing Director, Zeus Air Services Pvt Ltd opines, “Post GST the government should provide exciting times for logistics and particularly so for 3PL/warehousing industries. GST is an evolution of the pre GST tax regime, transforming the complex and cascading structure into a unified value-added system of taxation. Under this, a value-
IGST, across all states. GST has replaced most of the applicable indirect taxes.” Thakkar advises, “Let’s not expect miracles, let stakeholders also do their bit; GOI cannot get all requirements as per satisfaction, there will be speed breakers initially. According to the reports, Naveen Kumar, Chairman, GST Network had issued a statement that GSTN will see 300 cr invoices every month and can handle
On the other hand, Samir J Shah, Partner, JBS Group of Companies, stresses, “It is still too early to comment. Discussions with individual industries brings out that they will need at least 12 to 15 months to shift manufacturing and storage from erstwhile tax havens within the country to closer to consumption and easy access to major part of their markets. This is a crucial period and we all need to
Factors to be considered post GST implementation Profile of logistics service provider with improved fleet profile of higher capacity
Technology capability of service provider to support tax credit system
Revisit network setup to consolidate warehouses
Tax fact-based negotiation with service providers
added tax would be levied at every point of the supply chain providing for credit for all taxes paid previously. Keeping in line with the governance structure of the country GST will be levied simultaneous by the Centre and State (CGST, SGST and IGST respectively). All essential characteristics in terms of its structure, design applicability, amongst others have become common between CGST, SGST and
70 CargoConnect - january 2018
55,000 tax payers concurrently and had assured that security is planned at as many as eight levels, including perimeter, physical network software and hardware level. With GST coming in, the key advantage will be re-aligning/merger of the smaller warehouses to most productive and logical locations - without having a tax burden and with automation it will give excellent cost benefits.”
work together so that true benefit of this major change is available to all and not lost in implementation.” Meanwhile, Debjit Roy, Associate Professor in Operations Management, Production and Quantitative Methods Area, Indian Institute of Management intervenes, “Logistics fraternity has been indeed longing to welcome GST – the single tax window. Now that the bill is
feature It is still too early to comment. Discussions with individual industries brings out that they will need at least 12 to 15 months to shift manufacturing and storage from erstwhile tax havens within the country to closer to consumption and easy access to major part of their markets. This is a crucial period and we all need to work together so that true benefit of this major change is available to all and not lost in implementation.”
Samir J Shah Partner, JBS Group of Companies passed, I anticipate ease of doing business in all sectors – in particular increased responsiveness in road transportation and distribution. With responsiveness, the distribution overheads associated with expediting orders will also reduce significantly. GST will help the truckers to increase the number of kilometers traveled per day. 3PLs will be able to aggregate their warehouse space and manage the warehouse space more Factors Warehouse Cost Transportation Cost
Impact for Shippers Low Medium High
Low Medium High
networks. Consolidation of warehouses will happen but not a dramatic pace. If an OEM - before GST - had one warehouse in every state, zeroing down to one central warehouse will also be not the solution. I would envisage OEMs maintaining one warehouse for every three to four states to leverage GST at the same time retain speed in distribution. Future is all about speed and flexibility in capacity. Multiple warehouses come with an added
Description Consolidated warehouse strategy to bring down the number of warehouses across multiple states and set up warehouse facility close to manufacturing location slight increase in secondary transportation cost likely due to hub and spoke model to be implemented by the manufacturers for distribution of goods Marginal increase in number of organized players due to favorable government policies would allow manufacturers to move from sourcing regional players to organized pan- India player
Risk of Sourcing Service Provider
Low Medium High
Sustainability of Regional players
Low Medium High
Dynamic environment due to changing policies would leave regional players isolated in the market due to their inability to match needs in terms of capacity, fleet performance and geographic coverage
Cost of Cross border Transportation
Low Medium High
Expected developments to reduce cost induced in terms of state taxes, freight time at borders and entry levies for trucking providers. This will benefit shippers using cross border transportation.
efficiently. Warehouse service providers will be able to better justify mechanisation and automation in storage and material handling. The supply chain costs are going to substantially reduce with virtual centralisation. With virtual centralisation, duplication of slow moving safety inventory among multiple warehouses can be avoided and high service levels can still be attained.” Roy further elaborates, “I also think new logistics business models leveraging GST are going to evolve or are already been thought about. A lot has been spoken about the reconfiguration of supply chain
72 CargoConnect - january 2018
advantage of being closer to customer, being responsive, and guarantee superior service level.”
Benefits and Opportunities D e s pi t e m a ny (o t h e r i n d u s t r ie s) complaining of a slowdown in growth of business countrywide post GST, logistics industry still foresees smooth functioning and a bright future. Especially third party logistics service providers as Market research agency Novonous in its recent report estimates that 3PL logistics market in India is expected to be worth $301.89
billion by 2020. By 2020, Indian logistics market is expected to grow at a CAGR of 12.17 per cent primarily driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors. This growth rate is also based on the expectation of GST being implemented and the logistics companies can optimise their operations to reduce cost and increase their margins. As per the blog posted by Allcargo Logistics, “Now with GST in place, there will be consolidation of warehouses, thus reducing the time lost between transporting from one warehouse to another. Shorter supply chain cycles will entail lesser time spent on unnecessary activities like paperwork, material scrutiny at checkpoints, compliance with multiple regulations, etc. This will make it smoother for transport companies as they will be able to transport goods with lesser stoppages and breaks in journey. Consequently, it will reduce the need for extensive documentation in inter-state sales, making it a lot easier to transport goods than it is currently. “ The r e for e , t he r e l ie s a bi g ge r opportunity for the 3PL service providers who can manage these bigger routes and deliver accurately and efficiently. The 3PL logistics firms are evolving from traditional service delivery systems to highly integrated and technically equipped service providers striving to meet the service demands. GST provides them with ample opportunity to invest and expand the 3PL base in India.” Observing the same, Lohia explains how GST is going to benefit 3PLs, LSPs and transport industry in the coming years, “The new scenario has begun to reduce the number of warehouses but with increased sizes, translating into expansion of some
An Integrated Logistics Solution Provider with innovative solutions to save time & cost
PCLL
SERVICES OFFERED
International Freight Forwarding Custom Broker (CHA) ODC & Project Cargo clearance & handling Multimodal Transportation
PINKCITY LOGISTICS LIMITED Registered Office V5 04, Ansal Garg Enclave, 122/235, Sarojini Nagar, Kanpur-208 012 Tel: +91-512-2224641/2217001/2216976 Fax: +91-512-2234911
Corporate Office 201-224 Chawla Complex, Sector-15, CBD Belapur, Navi Mumbai-400 614 Tel: +91-22-27562739/49, 61400500 Fax: +91-022-27565396 Email: info@pinkcitysilica.com
www.pinkcitysilica.com
Bhopal Delhi Gandhidham Hazira Indore Kanpur
Ludhiana Mumbai Mundra Nagpur Renukoot Vizag
feature Logistics fraternity has been indeed longing to welcome GST – the single tax window. Now that the bill is passed, I anticipate ease of doing business in all sectors – in particular increased responsiveness in road transportation and distribution. With responsiveness, the distribution overheads associated with expediting orders will also reduce significantly.”
Debjit Roy Associate Professor in Ops Management, Production and Quantitative Methods Area, IIM of the existing warehouses, development of new ones and shutting down of several existing set-ups. LSPs and their end-users both are re-engineering their supply chains, focusing on optimal locations for warehouses and logistics centers.” On a positive note, Shah reiterates, “GST would open up new markets for each of this player. Expectations are that geographical reach of each will increase as well as a lost of new domestic partnerships and alliances will come up. Each should work to upscale and support the other rather than pull the other down. With the emphasis on HSN and multiplicity of rates with the multitude of notifications being issued new job profiles of GST assistant would arise. This would be a specialised job. Many such new profiles will develop.”
Relief from Challenges Post GST Post the implementation of GST, the industry players have got a sense of relief from the challenges that they were facing like delays in taxation process, complicated taxation system, zero stability, no firm policies or rules. Trucks line jams at every check post or barrier leading to significant delays, thereby, a f fecti ng log istics management and leaving a dent in overall supply chain management. However, under current taxation system, when goods are sold to other states a Central State Tax (CST) is imposed, along with Octroi charges and entry tax. Vehicles carrying the goods are inspected while entering or leaving states by officers who demand relevant documents such as challans and biltys, invoices and bills of sale of dispatch documents, along with the declaration forms. As per the policy, under GST, Octroi charges and entry taxes will be subsumed, but road permits may still be
74 CargoConnect - january 2018
needed. The documentation will become minimal and forms and declarations will be filed electronically, and if inspection is also carried out online as proposed, it will save time. Agreeing with same, Lohia affirms, “The GST has led to one tax system, which has proved to be a hassle-free movement of goods in the country as inter-state ferrying of goods has steadily become
Post the implementation of GST, the industry players have got a sense of relief from the challenges that they were facing like delays in taxation process, complicated taxation system, zero stability, no firm policies or rules. more efficient. This has led to significant cost-cutting of logistics in the long run. The GST structure has brought consolidation in the supply chain promising to facilitate seamless and fast transfer of goods across the country thus increasing the working capital availability. End-to-end result has also reduced the final product cost incurred by customers and is able to meet their service demands in time. The idle time has reduced due to
easier clearance procedures and elimination of the loss of transit times. Overall logistics business is increasing in the run.” On the other hand, Thakkar says, “With government geared up to when releasing the GST regime industries ,were required to adopt accordingly and take a review at their supply chain to cater to existing requirements and look at the new business areas that this impending legislation is due to bring in. With so much focus on existing operations, it will be almost difficult for the management of these businesses to plan for revamping. Hence, best way would be to look at external experts to provide the guidance. What they may also want to look at is outsource to LSP who have planned for post GST regime. It is quite obvious that LSPs, who can adapt the changes due to GST will be at ahead of others. He adds, “Pre GST, in respect of freight forwarding in airfreight and sea freight lane there is no service tax based on Rule of the Place of Provision of Services Rules, 2012 which provides that the place of service of provision of service in respect of transportation of goods other than by way of mail or courier to be the place of destination of goods. In the freight forwarding in respect of air and sea freight pertaining to exports of goods from India, the place of destination is outside India, therefore service tax is not applicable. In this regard logistics sector have come under serious financial burden and these issues were identified based on CGST/ IGST law passed which has affected our operations, exporters and the country. It is unfortunate that logistics industry has been ignored, and what is shocking is that during interaction with GST we have been given to understand that an amendment is possible but not being done.”
Air Freight Forwarders & Consolidaters
HO : 2 E & U, DCM Building, 16, Bharakhamba Road, Connaught Place, New Delhi-110001 T: + 91.11.47343502-16 F: +91.11.47343501 E: info@perfectexpress.in W: www.perfectexpress.in OUR BRANCHES: MUMBAI, CHENNAI, BENGALURU, HYDERABAD, KOLKATA, AHMEDABAD
feature
Expectations: The Road Ahead Indian logistics industr y has great expectations from GST. The bill is expected to bring in several positive changes in the coming years which may help industry to make its presence felt globally. Referring to a report, Lohia states, “According to the study, investments in infrastructure d eve lopme nt ac r o s s a l l mo d e s of transportation, relaxed foreign direct investment regulations, implementation of GST, and increased technology adoption are altering the Indian logistics industry. Due to growing demand for end-to-end solution providers and emergence of new avenues such as e-commerce, logistics parks, cold chains and new start-ups the industry has led to increased focus by foreign investors across the logistics value chain. India is growing economy where a revolutionary tax regime such as GST is a process of evolution. But it can be confidentially said, that transparency in taxation and ease of doing business is proving to be an attractive preposition for FDIs.� In addition to what Lohia said, Thakkar jots down some essential points which needs to be considered: 1. Zero Rating: It had been recommended that: (a) international transportation of goods including freight forwarding should be zero rated; (b) ancillary
76 CargoConnect - january 2018
services in relation to international transportation of goods such as Customs clearance, warehousing, storage, cargo handling, packing, unitisation etc. should be zero rated.
The GST structure has brought consolidation in the supply chain promising to facilitate seamless and fast transfer of goods across the country. 2. Single Registration: It had been recommended that the concept of centralised PAN-based registration must be reta i ned , whereby a ny service provider in the international transportation segment can have a centralised registration and discharge applicable tax through the GST Portal. Further, it has been recommended that the tax payer should be centrally registered at the principal place of business or registered office and undertake compliance from the central location for all activities throughout the country. The place of supply for international transportation of goods, freight forwarding and related services
should be the location of the billing address of the recipient of the services as specified in the invoice issued by the service provider. 3. GST Credit: It had been recommended that the credit should be based on the invoice raised by the service provider without insisting on the matching of invoice data through the systems. Further, it has been recommended that the central location which is allowed a single registration should be permitted to take all credits in that location. 4. V a l u a t i o n : T h e f o l l o w i n g recommendations have been made regarding this aspect: a) Section 15 needs to be re-drafted to ensure that the transaction value under the GST Law is not devoid of the business realities of our industry. The valuation provisions needs to be modified, whereby the value should be the price actually paid or payable for the supply of goods and/or services. b) In freight forwarding and international transportation of EXIM cargo and related services, we are disappointed that the GST Law contemplated levy of GST on international transportation as well as freight forwarding which is at variance with the GST provisions in other countries.
Interview
Doing what they do best MAB Kargo is the air cargo arm of Malaysia Airlines Berhad which operates scheduled, chartered air cargo services, ground handling services as well as airport to seaport cargo logistics via ground transportation. At its 108-acre complex equipped with state-ofthe-art cargo handling facilities, MAB Kargo with its head office based at the Advanced Cargo Centre (ACC) on the grounds of the Kuala Lumpur International Airport (KLIA) in Sepang, serves varied customer’s cargo needs and has the ability to handle up to one million tonnes of cargo annually. Ahmad Luqman Mohd Azmi, Chief Executive Officer, MAB Kargo, during his recent trip to India, talked to Tariq Ahmed about the existing challenges in the industry and how they are prepped to tackle them all. Here are the excerpts:
78 CargoConnect - january 2018
MAB Kargo has led the expansion of the IATA Secure Freight Programme, an initiative to promote global air cargo supply chain security standards. Can you share some highlights of this initiative? What security challenges do you usually come across? It is a program that we have initiated in conjunction with IATA. We have done some pilot running on this. MAB Kargo along with its industry partners led the expansion of the IATA Secure Freight Programme to promote global air cargo supply chain security standards which aims for a secure supply chain program, hence strengthening cargo security in the region. Secure Freight Programme evaluates the strength of our aviation security infrastructure and works with the civil aviation authorities to ensure that cargo is kept sterile until it is loaded. Not only does this ensure greater security, it also helps prevent bottlenecks at airports. The development of a consistent set of standards should facilitate the mutual recognition of secure freight programs. Nonetheless, there have been challenges, as this is a system that is in synchronisation with different security authority. The Europeans will have different standards; the Americans will have different standards. So, that is one of the biggest challenges we are facing at the moment.
Temperature excursions, customs delays, packaging breakdowns, incorrect shipping, and packing choice are all risks inherent in transporting pharma shipments. What steps have been taken by you in order to reduce such risks? When we ventured into the business of shipping pharmaceutical products, we agreed on some standards to be at par with the industry. Moving ahead, we are venturing into getting an IATA CEIV Certification for the airline and our hubs sometime around in the third quarter next year, because we believe that we need a neutral body to tell us that we are in compliance to the set standards. We are also looking at other smart ways on
how we can ensure that the temperature is monitored and controlled throughout the supply chain. We have a product called Centigrade, which is tailored to meet the needs of the life science and healthcare industries for reliable airport to airport transport. The target is to improve the performance and meet the logistical needs of temperaturesensitive goods.
MAB Kargo has been working closely with forwarders and shippers in India. What expansion plans do you have for India in the next year? Have you implemented a single window interface for all the Custom requirements of the shippers and freight forwarders? For the Indian market, there are a lot of thoughts like for instance, whether
We have a product called Centigrade, which is tailored to meet the needs of the life science and healthcare industries for reliable airport to airport transport. we as an airline should work directly with shippers or not. As far as we are concerned, weare very much aware of the relationships that we have with our freight forwarders. If we can venture into Single Window operations in a country like India, it would be really beneficial for us as well as the freight forwarders. We have already initiated the first step which is moving from a mainframe to a cloud based system that enables us to stay interconnected with more systems. That’s the first stage. We are developing such facilities for our domestic market in Malaysia. India will be in the second phase where we will focus on how we can optimise our services and better serve our customers here in India. Hopefully, we will roll out these features in the coming months.
Can you talk about some of the value added services offered by MAB Kargo to fit the tailored needs of your clients? For the market in India, we do have a sizeable movement of pharmaceutical shipments. We do offer value additions like Envirotainer products and ensure that the cold chain is protected end to end. But if you go towards the broader aspect, different commodities require different value additions. For instance, we are setting foot into the E-commerce segment, where we are trying to attract fastercross-border E-commerce.
The demand for project cargo is experiencing rising demand in recent times. Do you have plans to tap this lucrative opportunity? We have set aside certain time within the week that enables us to do a lot of charter operations for project cargo. Apart from that, we are serving certain markets that create the ability for us to move our project cargo. Also recently we moved a consignment of ATM machines from India to Australia. So, we are quite ready to see some movement in the coming months in terms of project cargo.
MAB Kargo’s CSR contribution via logistic support is very much appreciated in context of the third relief mission for Rohingya refugees. Highlight some of the important CSR initiatives by MAB Kargo in recent times. Beside the relief mission for the Rohingyas in Bangladesh, we have taken up other humanitarian missions in hand. Some are domestic, where we move relief materials to flood affected areas, especially to those areas which are landlocked and are difficult to reach by roads. Wehave a fleet of trucks that we can mobilise in the advent of such situations. We are also quite active in relocating misplaced wildlife which are in the high risk of being illegally captured. We do participate in rescue missions and safe transportation of such animals to their natural habitats. We were also very much involved in the 2011 Tsunami in Japan where we flew a lot of relief and emergency goods.
january 2018 - CargoConnect
79
Interview
“We are aware of India’s potential, growth will happen” A P Moller - Maersk Group is an integrated transport and logistics company with multiple brands and is a global leader in container shipping and ports. It is also known as the world’s largest overseas cargo carrier. Navneet Kapoor, Head of Global Service Center, A P Moller-Maersk, in an exclusive interview with Ritika Arora Bhola, elaborates on the digital transformation of the company, increasing participation of foreign investors in the Indian market, industry scenario post GST and advanced security system at A P Moller for efficient transportation. Excerpts follow:
80 CargoConnect - january 2018
The Indian logistics industry is fast evolving and is expected to be worth US$ 307 billion by 2020. How do you foresee the future of the Indian logistics industry? As you rightly said, Indian logistics industry is growing rapidly and a lot of it has to do with the growth of the e-commerce industry. Also, in terms of India and trade around the world, ‘Make in India’ happening, origination and creation of warehouses across the country, on-time delivery of goods and from import/export perspective. To mention the fact that e-commerce is a 30-40 billion dollar industry growing to something of a 100 billion dollar industry thereby driving the origination and creation of new warehouses in the country which may further lead to delivery and transfer to remote parts of the country – all of those are logistics for sure. We have recently opened a new inland container depot near Jharkhand near Pune. We are very well aware of the potential of this country and we believe that growth is certain.
Do you think foreign investors are ready to invest in the Indian market? We are a global company and we have invested in the Indian market through our Maersk client business, Damco business and APM Terminal business. We also have a sizeable global presence in India across four cities now. So, significant investment is already happening in India and it is definitely expected to grow in the coming years.
How do you think GST is going to benefit the Indian logistics and transportation industry? I think it’s a significant effort by the Government of India to simplify tax process across the country. Clearly, it’s a big step towards simplification
and transparency and that helps implications that are seen in a country like India where there are so many states. Cargo via trucks needs to go from across states which can be a multiple week’s effort sometimes. Taking away the friction and wait time in that process will be helpful. GST, as we all know, is very new for this country and is continually being rebuked as we speak and we see modifications being made right now in terms of active tax rates, what goods fall into which category etc. In a nutshell, GST stands for transparency and simplification of taxes in the country.
We are in the middle of the digital transformation of the company. We are also transforming ourselves into an integrated provider of transport and logistics for both cargo and travel. Please elaborate on the Digital Transformation process which is happening in your company. We are in the middle of the digital transformation of the company. We are also transforming ourselves into an integrated provider of transport and logistics for both cargo and travel. We are keen to offer a value proposition that is differentiating from a competition. We are working on this process since last one year. It’s a part of our digital transformation ambition. We are equipping digital tablet, automation
tablet and data entry tablet and so on. That is why we have recently opened a digital capability centre at Raipur. I joined this company six months ago and I am excited to be a part of this company and to deliver greater value to our customers.
How do you ensure 100 per cent security of cargo? Please tell us about the overall security system at A P Moller for efficient transportation? This is something we have worked on for decades. We have invested in multiple aspects of cargo and shipments. Around the world, we have our own fleet of over 300 ships. Overall, I think we have over 500 ships that we sail around the world. We do regular cargo as well as refrigerated cargo; reefers allow us to usually sail without getting damaged. We work with Remote Container Management System that allows us to monitor the temperature, humidity and power within each of the container. So we put IOT devices in each of these containers and we monitor them 24/7. It allows us to take action while the containers are on the fleet without having to wait till they show up on the land three or four weeks later. This avoids a lot of spoilage. That’s a big investment we’ve made. Our team works for the precaution and safety of the containers. We have invested in both technology perspectives as well as from a practical perspective. So, those are just key aspects of doing good business around the world.
january 2018 - CargoConnect
81
Shippers Speak
“Volume and experience is what we seek for in LSPs� Zydus Cadila is one of the largest and fastest growing pharmaceutical companies in India. The company is fully integrated, global healthcare provider, with strengths all along the pharmaceutical value chain. As a leading healthcare provider, it aims to become a global research based pharmaceutical company by 2020. Vickram Srivastava, Delivery Head – Supply Chain, Zydus Group in a candid discussion with Gaurav Dubey talks about his unique ways and strategies he adapts to manage the supply chain.
How important is logistics for the overall scheme of your business? Logistics is a key supply chain driver in the pharmaceutical industry and we are no different. The right logistics setup and speed to market gives our supply chain the edge in a generic drug industry.
How do you ensure smooth coordination between suppliers, transporters and other departments in your supply chain? Information flow is vital between various cross-functional teams in complex supply chain setup to ensure smooth operations. Building on this we follow the C-C-C model (Connect-Collaborate-Communicate) to ensure seem less information flow.
Are there any unique or innovative strategies that you have adopted for the better supply of your products? We have vendor agreements in place with Logistics Service Providers (LSPs) and freight forwarders (FF) which not only ensures that we get the most competitive rate quotes but also priority space availability for urgent shipments.
What percentage of your logistics work is outsourced? What functions are performed by your logistics partners and what are controlled internally? Inward logistics is based on PO delivery terms and range from exworks to DDP INCO terms. For outward logistics we ensure delivery till our country warehouse. We use LSP and FF for all local and import/export shipments. We internally manage the documentations and duty benefits.
Tell us about the most common problem faced by your company during its supply chain process. What steps do you take to overcome these? Most common problem is temperature excursions for temperature sensitive pharma drugs. Ensuring that the cold chain is maintained from dispatch to receipt and information/alert on excursions is a huge challenge. We use data loggers, special thermal blankets and cool containers to avoid temp excursion. Also new age LSP are now able to provide real time update on your shipment which improves the reliability on the supply chain.
Who are your Logistic Service Providers (LSP) and what qualities you seek in them before choosing their services? We have tie-ups with all major LSP and FF. In addition, we also have tie-up with local transporters to ensure last mile connectivity and local movement between sites. Key aspects we look for before tie-up is experience in handling pharma products and volume moved by them. Tie-up with carriers (air and sea) and support with customs, last mile connectivity, facility to temporarily store shipments, etc. are some add-ons which checks most of the boxes for any LSP selection.
82 CargoConnect - january 2018
MARK YOUR AGENDA FOR PHARMACONNECT, PHARMA LOGISTICS SUMMIT, JAN 18, 2018 AND JOIN OVER 200 LEADERS FOR THIS ACTION-PACKED EVENT a. Meet & network with over 200 pharma supply chain professionals b. Engage with experts at workshops and panel discussions c. Benefit from one to one meetings with leading suppliers d. Identify new business opportunities and network with leading suppliers and exhibitors from across the world
200+
40+
Industry Leaders
Knowledgable Speakers
4
Panel Discussions
GOLD PARTNER
SILVER PARTNERS
REGISTRATION PARTNER
TECHNOLOGY PARTNER
TEA AND COFFEE PARTNER
DELEGATE KIT PARTNER
LANYARD PARTNER
WE OFFER PEACE OF MIND
SUPPORTING PARTNERS MEDIA PARTNERS
@
When: 18th January, 2018 Where: New Delhi, India VENUE: Shangri-La’s Eros Hotel, New Delhi, 19, Ashoka Road Audience: Pharma supply chain professionals
FOR FURTHER DETAILS Ajeet Kumar: +91 9810962016 ajeet@surecommedia.in Mehuli Choudhury: +91 9810730347 mehuli@surecommedia.in
guest column
The Rise of an Even Smarter Warehouse And New Strategic Alliances That Will Transform the Cargo Industry by 2020
By Venkatesh Pazhyanur he cargo industry needs to embrace disruptive technologies from the consumer world, including Internet of Things (IoT), digital assistants and drones,to increase efficiency and meet customer expectation for greater transparency throughout the supply chain. The Asia Pacific air cargo industry is experiencing growth and transformation driven byrapidly increasing capacity supply on passenger flights, and the shift to business-to-consumer small parcel shipments as a result of e-commerce. Growing passenger demand will increase the number of passenger flights and add to cargo capacity supply. IATA expects the number of air passengers globally toalmost double between 2016 and 2035, with the greatest growth in Asia Pacific – particularly in China and India. Simultaneously, the popularity of e-commerce is changing the nature of cargo shipments, incrementally increasing the number of small parcels – which is predicted to grow 5 per cent annually in mature markets and 17 per cent annually in China.
T
84 CargoConnect - january 2018
It can reasonably be predicted that these market pressures will bring innovation in three areas in the cargo supply chain: smart warehouses will become even smarter, drones will finally take off in the cargo supply chain – but inside the warehouse, and new alliances between airlines and global distributors will enable longer term capacity management. Much of theunderlying technologies are already being used in other sectors – including the consumer world. But now, more than ever, cargo operators will be forced to embrace such innovation to be more efficient, nimble and proactive in an
are becoming mainstream in the consumer world, IoTbased technology will create the “smart warehouse” of the future. Recent innovations such as smart glasses used to display information triggered by a barcode or QR code on a containerwill be taken to a new level by incorporating scanners to automatically capture and input informationinto the warehouse system, and integrating voice AI to initiate actions. Similar technology is already used in digital assistants such as Siri, Cortana or Amazon Echo. Cargo operators will invest in converting machine commands to voice within the next three years.
“IoT and voice AI enabled smart devices and systems, warehouse drones and strategic alliances between airlines and distributors will be key to the air freight industrycapitalising on the e-commerce market.” increasingly competitive and price conscious market. The following predictions will become reality within the next five years or less:
Smart warehouses will become a reality To meet the growing demand for small parcel deliveries, warehouses will transform from a storage location, to a dynamic facility using IoT and voice artificial Intelligence (voice AI) enabling faster processing of more shipments to generate a higher return on the real-estate investment. Just as connected wearable devices such as smartwatches
Drones will be used inside the warehouse While drones have become a familiar way to provide TV sports aerial footage, the much-anticipated mainstream rollout of drones to deliver parcels to the customer’s doorstep is hampered by flight space restrictions, government approvals and privacy considerations. The more immediate application of drones in the cargo supply chain will be within the confined space of warehouses to conduct inventory checks more often and more accurately, replacing the largely manual process.
New alliances between airlines and global distributors will be forged for long term revenue optimisation With cargo capacity potentially increasing faster than cargo demand due to extra passenger flights and larger aircraft, cargo capacity management has become the number one challenge for airlines. In this environment of unconstrained capacity, the traditional approach to yield management will not work as airlines may dump cargo space onto the market, creating a price war. A fundamental move to longerterm revenue optimisation can thus be predicted which in turn will be based on strategic alliances between airlines and organisations with large ongoing delivery requirements such as postal authorities, major online retailers, global distributors and supply chain management companies. This will require airlines to provide their alliance partners with transparent real-time access to available capacity and predictive analytics to determine best routes based on speed, reliability and cost. This expectation for visibility will also extend to the “last mile” of the business-to-consumer cargo supply chain, leading to the development of mobile apps to allow the final recipient to be able to track the approach of their delivery – similar to how consumers currently track an approaching taxi or Uber. (The author is a senior industry director of Freight Solutions for Unisys Corporation)
guest column
3PL and 3PL user relationship
By Vikash Khatri upply chain is becoming more and more complex due to nature of fluctuating demands, global uncertainties, cross border regulations, non controllable environment, increasing customers expectation, shorter product life cycles. In such complex scenario deliverable of the function is always to reduce cot and improve quality of services. In order to focus on core competencies of businesses, trend of outsourcing of supply chain activities has seen a positive trend in previous 8-10 years. 3 Pl players bring concept of shared cost and expertise, which become compelling reason to partner with 3Pl players. Apart from cost other benefits include scalability, expertise and accountability. Historically it has been observed that most of the outsourcing takes place in repetitive and transactional activities and in case of strategic or customer facing activities outsourcing is less. Organisations have leveraged 3PL players in reducing their cost and time. So the question arise that outsourcing of 3PL activities is transactional, tactical or strategic. First we
S
need to understand the scope of outsourced activities in supply chain operation: • Transportation • Warehousing • Reverse logistics • Inventory management • Order fulfillment • Freight forwarding and customs • Transportation planning • Supply chain payment and audit • Fleet management • Supply chain automation Out of above activities we find that Transportation and Warehousing activities are having high degree of outsourcing. In majority of cases even outsourcing of these two activities are fragmented to multiple 3PL players, which ultimately suppresses the efficiency and gains. As transportation and warehouse outsourcing become non aligned activity between 3PL user and 3PL player.
Collaborative approach: In order to achieve supply chain objective both need to adopt collaborative strategy and focus on their core competencies. Trend has already started in this direction and yielded positive outcome and also long term relationship between both. Successful relationships between 3PLs and customers rely on openness, transparency and effective communications between both. In rapidly changing needs, supply chain requires agility and flexibility. It is possible only through strategic and operational alignment between the two.
Expectations from 3PL user-3PL in collaborative relationships: For partnerships between 3PLs and 3PL user to be successful, both parties are expected to invest in the relationships. Information, services and financial resources are key to these relationships and must flow back and forth between the two parties. Openness and transparency between 3PLs and 3PL users are most important pillar along with information sharing. The concept of profit sharing between both is gaining momentum instead of conventional approach of open book, closed book or transaction based pricing. In adopting the collaborative approach, shippers has concern about over dependence on a player, integrity of data, consistency of service levels, under resourcing, which many a times are legitimate concerns of shipper. But these concerns can’t be addressed only through written contracts, apart from contracts such concerns redressal require mutual confidence between both parties. Both parties therefore have important roles to play in order to ensure a smooth 3PL relationship. For a long term win-win relationship contracts should be flexible to address the emerging or unforeseen changes of business and growth. Other major requirement for the success of such long term relationship is clear governance structure and accountability matrix. Governance structure must harp on structured review, clarity of escalation procedure,
information sharing process, transparency and priority of shipper and 3PL. As next step to a strategic partnership, a new term has already evolved as Embedded 3PL relationship. In this concept two companies work together towards cooperation and trust, as a single unit and 3PL representative makes itself as a partner with the shipper or a company representative. By which 3PL organisation knows the details of supply chain of client, its bottle necks, flow pattern etc. But such type of relationship requires significant investment in terms of infrastructure, innovation, technology and time from 3PL service provider.
Indian Scenario: Some of global surveys has indicated that more than 90% shipper and 3PL has indicated that their relationship has been successful and yielded positive results. Same surveys also show that for 70% customers key driver of the relationship has been logistics cost reduction. But in Indian context these numbers are not great. In terms of improvement in shipper 3PL relationship, it has improved over years. But most of the points it is still transactional or tactical. Collaborative approach of relationship between both is not matured much. Only thing which we can say that we have started realizing importance of collaborative approach in supply chain domain as well. (The writer is the Founder of Aviral Consulting Pvt Ltd)
january 2018 - CargoConnect
85
news
Gadkari flags off cargo shipment via NW 2 on Brahmaputra
Logistics companies to generate high-paying jobs
In a major boost to the inland waterway transport system in the northeast, Union Shipping Minister Nitin Gadkari flagged off cargo movement on the Pandu-Dhubri route of the Brahmaputra riveron December 29. He said five bridges would be constructed on the river to ease transportation. The bridges would connect Jorhat with Nematighat, Disangmukh with Tekeliphuta, Louit with Khablu, Numaligarh with Gohpur and North Guwahati with Guwahati, the union minister said at the flagging-off ceremony in Majuli Island in Assam. “Another roll-on, roll-off (ro-ro)’ ferry service to transfer passengers and vehicles in large numbers will start here soon,” Nitin Gadkari said. Stating that modern and well-equipped river ports would be established along the banks of the river, the minister said transportation of cargo on the National Waterway-2 from Pandu in Guwahati to Dhubri along the Assam-Bengal border would reduce logistics cost and save 300 km road travel. The 891 km stretch of the Brahmaputra river between Sadiya in the easternmost part of upper Assam and Dhubri was declared the National Waterway-2 in 1988.
Logistics and supply chain management may be the next big job market in the coming years, as companies buoyed by two big government moves to boost the sector, are spending big bucks in hiring the best talent in the function. Professionals with experience levels of about 5-8 years in this domain are being offered middle management positions in companies across sectors. The other interesting trend is that a lot of fresh graduates are freelancing for companies and helping them adapt to artificial intelligence and big data. These are for annual paychecks of about `80 lakh or more, said industry watchers. The professionals sought for middle and senior management positions, with select skill sets, are being offered packages that are almost 25 per cent more than the average pay package in a similar position in this field, last year, said Pranshu Upadhyay, Director at global recruitment firm Michael Page. Upadhyay cited industry estimates of about 100,000 logistics and supply chain professionals in India right now that earn an annual income ranging between `5 lakh and `1 crore. This number has grown several multiples in the last few years and is estimated to grow at a CAGR of at least 8 per cent every year for the next half decade, he said.
THERMAL WRAP
DIVINE THERMAL WRAP
Protect from Global Warming
Mostly used in Warehouses and Industrial Sheds
97% Reflection 3% Emission Save Energy Thermal WrapTM Advantage Against Conventional Insulation R Value Comparison Table* Product
R Value Glass Wool
Thermal WrapTM Single
4mm
9
50mm X 24kg/m3
Thermal Wrap
4mm
16.5
100mmX24kg/m3
TM
Super
Thermal WrapTM Big
10mm
18.75
125mmX24kg/m3
Thermal Wrap
TM
Premium 6mm
12.50
75mm X 24kg/m3
Thermal Wrap
TM
Unique 20mm
23.50
150mm X 24kg/m3
Thermal WrapTM (Reflective Insulation) Based on reflection means low emissivity (blocks heat and moisture) Reflects most of radiation heat (blocks 97% of radiation heat) Light weight, no degradation, lasts life long Easy and fast installation No spacers required Environment friendly No wire mesh needed, saves time and money
CONTACT PERSON: RAJIV LAL 09810622385
|
Conventional Insulation (Such as Glass Wool, Rock Wool) Based on Absorption (absorbs heat and moisture) Absorbs most of radiation heat Bulky Material – degrades performance year by year Complicated installation, spacers needed to keep thickness intact, actual thickness matters Health hazardous products Wire mesh needed, wastage of time and money
SUDHIR KUMAR JAINI 09810213162
Divine Thermal Wrap Pvt. Ltd. 180-C, 2nd Floor, Jeevan Nagar, New Delhi 110014 T: +91-11 6525 2385, 4217 1857 E: info@divinethermalwrap.com, divinethermalwrap123@gmail.com W: www.divinethermalwrap.com, www.thermalwrap.net
Manufacturing Unit: Unit I-Faridabad, Unit II-Bangalore Branches: Ahmedabad, Mumbai, Pune, Ranchi, Dubai, Ghana, South Africa
news
GST Council decides Feb 1 rollout of e-way bill system Amid concerns over tax evasion and dip in revenue collections, the Goods and Services Tax (GST) Council in its 24th meeting on Saturday approved February 1, 2018 as the date for mandatory rollout of e-way bill system for inter-state movement of goods across the country. The Council in its meeting, which was held via video conferencing, also fixed June 1 as the implementation date for a uniform nationwide e-way bill system for both inter-state and intra-state movement of goods, with states having the provision to choose their own deadlines for implementation of e-way bill for intra-state movement of goods before June 1, 2018. Under the GST regime, the e-way bill has been proposed by the government with an aim to track both intra-state and inter-state movement of goods of value exceeding `50,000 for sale beyond 10 km, with tax officials having the powers to check e-way bill at any point during the transit to check tax evasion. “It was represented by the trade and transporters that this is causing
undue hardship in the inter-state movement of goods and therefore, bringing in an early all India system of e-way bill has become a necessity. The GST Council today reviewed the progress of readiness of hardware and software required for the introduction of nationwide e-way bill system,” a finance ministry statement issued after the meeting said. The nationwide e-way bill system will be rolled out on a trial basis by January 16, 2018 and the traders and transporters can start using this system on “a voluntary basis” from January 16, 2018, it said. The rules for the nationwide e-way bill system for inter-state movement of goods on a compulsory basis will be notified with effect from February 1, 2018. “This will bring uniformity across the states for seamless interstate movement of goods,” it said. The decision for early implementation of e-way bill follows after the sharp decline in GST revenue to `83,346 crore for October — the lowest since the July 1 rollout of the indirect tax — and which was also a decline of `12,000 crore from the `95,131 crore collected for the preceding month. The finance ministry, in a statement on November 27, had said the GST revenue in October declined as the tax compliance may not have been up to the mark on account of deferment of implementation of some of the main features of GST such as, matching of returns, e-way bill and reverse charge mechanism.
AVAILABLE
ANTARIKSH G
R
O
U
Built-to-Suit Warehouse on lease basis
P
Largest PEB sheds Warehouse available in Bhiwandi
From 25,000 Sq. Ft. to 25 Lakh Sq. Ft. NH3, Bhiwandi
Antariksh Logistics Park 55 Kms approx. from Mumbai Airport and JNPT
Strategically located on Mumbai – Nashik Highway
Outside Octroi & LBT Limit and Highway Connectivity
24*7 secured premises, power supply, Internet & Wifi connectivity, Wide road
Ideal for 3PL, FMCG, Retail / Furniture, E-Commerce, Electronics, Pharma, Automobile, Electrical Companies & also for other Industries and Corporates
Contact Person: Raj Baldewa 09764442260 Corporate Office: S7/8, 2nd Floor, Eternity Mall, Teen Haath Naka, Thane West-400604 E-mail: leasingantariksh@gmail.com | Web: www.antarikshgrp.com
news
Warehousing cost for FMCG, white goods to dip 25-50%: Report Warehousing cost for consumer durables and FMCG is likely to reduce by 25-50 per cent mainly on the back of the implementation of GST regime even as states like Haryana and Assam are set to emerge as new hubs, Crisil said in a recent study. According to the rating agency, owing to the implementation of GST, consolidation and tax benefits, warehousing cost for consumer durables is set to halve, while that for fast-moving consumer goods (FMCG) would fall by 25-30 per cent. Consequently, the number of warehouses for consumer durables company has could reduce to 10-12
Commerce ministry panel suggests change in SEZ rules
A commerce ministry-appointed panel has suggested that the Board of Approval (BoA), the highest decision making body for SEZs, should be given additional powers to exempt units and developers from certain rules to promote these zones. Under the existing SEZ rules, the BoA has no power to relax any rule. The inter-ministerial board BoA is headed by the commerce secretary. “Even when the BoA considers it appropriate, it has to take approval of commerce and industry minister. Hence, wherever BoA feels that there is genuine hardship to the trade and industry and relaxation in SEZ rule is required, it should be empowered to do so,” the committee said in its report. In order to align the SEZ rules 2006 with the GST laws as well as for removal of various difficulties faced, the committee was constituted by the ministry to make necessary recommendations. The other suggestions include submission of GST registration certificate instead of sales tax registration. It also provides for obtaining national security clearance as per guidelines issued by the home affairs ministry.
88 CargoConnect - january 2018
from a typi-cal 25-30 and to 30-35 from 45-50 for FMCG companies. However, the size of warehouses will be become bigger, Crisil said. As for warehousing hubs, the five major ones including Mumbai, National Capital Region (NCR), Bengaluru, Hyderabad and Kolkata, will retain their importance being major consump-tion centres for both consumer durables and FMCG, while Assam and Haryana would emerge as new hubs. “NCR is expected to see maximum warehousing consolidation as the distance between states is only 250-300 km, which can be catered to from a consolidated hub. Earlier, warehouses were there in almost every state within NCR to save on tax. Now, Haryana is likely to emerge as a consolidated hub, rather than New Delhi or Ghaziabad in that region,” Crisil Research Senior Director Prasad Koparkar said.
IATA predicts strong airline performance in 2018 The latest release from the International Air Transport Association(IATA) forecasts the airlines to continue stronger performance through 2018. The global industry net profit is expected to rise to $38.4 billion in 2018, an improvement from the $34.5 billion expected net profit in 2017 (revised from a $31.4 billion forecast in June). The cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields. Volumes are expected to grow by 4.5 per cent in 2018 (down from the 9.3 per cent growth of 2017). The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes to grow at twice the pace of the expansion in world trade (4.3 per cent).
Major Ports mark positive growth of 3.46% during Apr-Nov, 2017 Major ports in India have recorded a growth of 3.46 per cent and together handled 439.66 million tonnes of cargo during the period April to November, 2017 as against 424.96 million tonnes handled during the corresponding period of previous year. For the period from April-November 2017, nine Ports (Kolkata (including Haldia), Paradip, Visakhapatnam, Chennai, Cochin, New Mangalore, Mumbai, JNPT and Kandla have registered positive growth in traffic. The highest growth was registered by Cochin Port (17.93 per cent), followed by Paradip (13.13 per cent), Kolkata [incl. Haldia] (12.64 per cent), New Mangalore (7.07 per cent) and JNPT (5.69 per cent). Cochin Port growth was mainly due to increase in traffic of POL (25.15 per cent) and containers (10.46 per cent). There was decrease in traffic of other Liquids (-26.24 per cent), fertilizer raw materials (-23.33 per cent), finished fertilizers (-11.76 per cent) and other miscellaneous cargo (-1.19 per cent).
news
Safmarine achieves landmark milestone
Safmarine, one of the world’s leading container carrier has achieved a milestone by successfully loading 53x40 flat bed containers as Out of Gauge (OOG cargo) in a single shipment from India to Intra-Gulf region in December. This was the consignment of buses loaded by Safmarine which marks the yet another successful RORO cargo into containerised business. Commenting on this achievement, Bimal Kanal, Managing Director, Safmarine India, said, “At Safmarine, we have always worked towards creating a seamless and convenient platform for our valued customers. This milestone is a testament to this belief. We look forward to providing more such services to EXIM traders and provide them with a global footprint. We will continue to conduct business focused around our customers in an efficient and effective way.�
VECV sells 4916 units in November 2017
VE Commercial Vehicles Ltd sold 4916 units in November 2017 as compared to 3174 units in November 2016, recording a growth of 54.9 per cent. This includes 4727 units of Eicher brand and 189 units of Volvo brand. In the domestic CV market, Eicher branded trucks and buses have recorded sales of 4062 units (YTD 31054 units) in November 2017 as compared to 2408 units in November 2016 (LYTD 31126 units) representing a growth of 68.7 per cent. On the Exports front, Eicher branded trucks and buses have recorded a total sale of 665 units in November 2017 (YTD 5111 units) as compared to 657 units in November 2016 (LYTD 5451 units) representing a growth of 1.2 per cent. Volvo Trucks has recorded sales of 189 units in November 2017 (YTD 575 units) as compared to 109 units in November 2016 (LYTD 636 units), recording a growth of 73.4 per cent.
news
Coastal shipping boosts Bangladesh-India bilateral trade Coastal shipping between Bangladesh and India is growing rapidly. The shipment of 1,000 tons of SAIL-TMT High corrosion-resistant (HCR) reinforcement bars last week for the Indo-Bangla Maitree Super Thermal Power plant from Kolkata Port was yet another big volume bilateral economic transaction. This came shortly after the recent shipment of 185 Ashok Leyland trucks from Chennai to Mongla port in October this year. Had the consignment been sent via road, it would have had to travel about 1,500 kilometres from South India to Bangladesh. The journey
Emirates Airline is the first customer of IATA DGR eFBs
IATA has introduced the IATA Dangerous Goods Regulations (DGR) for Electronic Flight Bags (eFB). A statement from IATA announces Emirates Airline as the launch customer for IATA DGR eFBs. This important innovation brings the IATA DGR into the cockpit where flight crew makes important pre- and in-flight safety decisions. “For almost 60 years IATA’s DGR has been helping the industry safely transport air cargo. The DGR for eFB places the most comprehensive resource on the carriage of dangerous goods into the cockpit in a format that will assist the flight deck crew in making timely operational safety checks and decisions,” said Nick Careen, IATA’s senior vice president, Airport, Passenger, Cargo and Security. “Safety is a number one priority at Emirates, and we are constantly exploring innovative ways to provide our flight deck crew with easy access to crucial information pertaining to flight safety. With the IATA DGR for eFB, the flight deck crew has efficient and easy access to the most up to date regulatory information,” said Captain Hassan Alhammadi, Emirates.
90 CargoConnect - january 2018
would have taken at least 15 days. But coastal shipping has cut the travel time. Ashok Leyland will send thousands of truck chassis (out of 12,000 consignments) to Bangladesh in the coming days by the direct sea route linking Chennai with Mongla port. The current pace of growth in coastal and inland water shipping, following a bilateral agreement finalised in 2015, has raised expectations among analysts about a huge increase in movement of goods between the two countries. When road transport was the major option, the total movement of goods between India and Bangladesh was around 18,00,000 tons annually until 2013-14. Businessmen on both sides faced not only problems relating to volumes of consignments but also had to deal with limitations in the quality of materials handled.
NHAI creates National Highways Investment Promotion Cell The National Highways Authority of India has created a National Highways Investment Promotion Cell (NHIPC) for attracting domestic and foreign investment for highways projects. The cell will focus on engaging with global institution investors, construction companies, developers and fund managers for building investor participation in road infrastructure projects. The government has set a target of construction of 35,000 kilometre of National Highways in the next five years involving an investment of `5,35,000 crores under ‘BharatmalaPariyojana’. Given the scale of investment required, both foreign and domestic investment from public and private sector is pivotal.
LSC launches apprentice programme to train 3 lakh youth by 2020 The Logistics Skill Council launched the first apprentice programme under the National Apprenticeship Promotion Scheme that will give a big boost by training three lakh youth in the next three years. “Apprenticeship training is considered to be one of the most efficient ways to develop skilled manpower. It provides for an industry-led, practice-oriented, effective and efficient mode of formal training,” said R Dinesh, chairman, LSC. “Our mission is to develop a skilled talent pool of 28 million workforce in the logistics industry under various sub-sectors through eminent training partners,” he added. Vijay Kumar Dev, director general of training at the Ministry of Skill Development and Entrepreneurship said that private sector participation is crucial as various industries can train and absorb job aspirants. “The aspirations of youth are rising, and they need jobs. India enjoys demographic dividend, which can turn into a demographic disaster unless their aspirations are met.”
A premium product for the warehousing industry, containing the most relevant articles , information, data, trends, projections and figures for the entire year, packed in an aesthetically designed, hardbound and jacketed superior quality coffee - table format.
ENTS
Logistics e h t r o f t nt conteny to read format a v e l e r t s g the mo in an eas Presentinstry professionals indu PRES
INDIA WAREHOUSING HANDBOOK 2018 India Warehousing Handbook
has always a grand success and is considered an asset for the entire warehousing industry. The next edition is only going to get bigger and better. We invite you to be a part of this excellent media product, highly appreciated by the industry by booking your spot to place your advertisement message.
For more details please contact: Niti Chauhan: +91-7065066695, niti@surecommedia.in Asad: +91-7065066694, asad@surecommedia.in
SURECOM MEDIA
4/23B, First Floor, Jangpura-B, Mathura Road, New Delhi-110014 +91-9810962016, +91-9711383365 january 2018 - CargoConnect
91
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| events
Safexpress wins top honor at CII SCALE Awards 2017 Safexpress has been honored with the highly prestigious award for “Overall Excellence in Supply Chain & Logistics” by CII SCALE Awards 2017. The award was presented for the firm’s exemplary performance in the field of Road Transportation, 3PL, Warehousing and Skill Development. The award ceremony took place at Hotel Novotel, Hyderabad on the November 24, 2017. The award was bestowed upon Safexpress by the Hon’ble Deputy Chief Minister of Telangana, Mohammad Mahmood Ali. Vineet Kanaujia, Vice President – Marketing, Safexpress, and Amit Kumar, Head – Retail, Safexpress accepted the award on behalf of Safexpress. Speaking at the award ceremony, Kanaujia said, “We sincerely thank CII for honoring our firm with this award. This award is a result of sheer hard work and dedication of our employees. We are delighted to accept this award, which celebrates the success of corporate values, innovative practices and customer service.
This award also bears testimony to our company’s resolve to play a leading role in shaping the future of supply chain and logistics industry.” Kanaujia added, “Supply chain and logistics is the backbone of Indian economy and is evolving rapidly. Safexpress will determinedly continue its endeavor to achieve the highest standards of service in this
domain. As the industry leader, we have been taking the lead in developing a world-class infrastructure, adopting the best systems and processes, employing the best talent, and adopting the latest technology. This has put us in a position, where we can continue to lead the industry for a very long time. That said, we are relentlessly pursuing improvement in all the above areas every single day.”
Eicher takes Service Support to the next level Eicher Trucks and Buses; the leading brand from VE Commercial Vehicles showcased its entire range of Heavy duty Pro series trucks for Construction and Mining at Excon 2017 - which includes the flagship Pro 8031XM tipper and Pro 8049 Tip Trailer for Construction, is pushing the limits on service levels, setting a new benchmark in Construction segment. Speaking at the press conference held at Excon 2017, Vinod Aggarwal – MD and CEO, VE Commercial Vehicles said, “There are countless infrastructure developments taking place in India, providing significant opportunities with the government’s focus on infrastructure segment. The CV industry has picked up speed and we are sitting on the cusp of a transformation revolutionary reforms like Smart Cities Mission and Make in India, pushing demand for heavy duty trucks and tippers. We at Eicher Trucks, are fully prepared and keeping pace with supplying high productivity, higher tonnage products to partake in this growth
92 CargoConnect - january 2018
journey of India and have the full range for catering to all the applications.” Eicher Trucks has an established presence across various applications in mining and construction, delivering superior Fuel Efficiency, which is the brand’s hallmark backed by unique “Fuel Coaching” that provides real time guidance to the driver to drive in the most efficient way and Eicher Live telematics that helps the customer to take informed decisions to save fuel and increase his profitability. Eicher Trucks world-class Pro range is suitable for both flat roads or gradients and long leads or short. The globally acclaimed, Volvo Group technology engines are at the heart of this range. These two state-of-the-art high performance engines - VEDX8 7.7 litre and VEDX5 5 litre engines deliver 330 HP and 210 HP respectively and are highly reliable with a high service life and have proven their mettle under tough operating conditions across a variety of applications.
events
InSynergy Supply Chain Solutions bagged award for Best Technology Adoption InSynergy Supplychain Solutions (P) Ltd, which combines all transport and logistics activities from India employing some of the most talented and hardworking staff spread across Pan-India, has recently won the award for the ‘Best Technology adoption in Logistics Industry’ at the recent CII SCALE Awards 2017 at Hotel Novotel in Hyderabad. The award was presented to Chetan Kapur, General Manager, Sales and Marketing Strategies who was present at the event along with Pankaj Nath Rai and Sai Kiran from InSynergy Supplychain Solutions. The award show witnessed a huge number of footfalls from the logistics and supply chain industry professionals. Executives of more than 150 companies participated in the show.
Maersk Line wins Container Shipping Line of the year Maersk Line, the global containerized division of the Maersk Group wins the Container Shipping line of the year for Europe, America, Africa, and Far East Trade lanes at the Easter Star Awards held on the 8th of December in Kolkata. The event saw participation of top decision makers from the maritime, cargo and logistics industry, besides policy formulators and regulatory authorities. These awards recognize and felicitate the best companies and individuals who have excelled and added value to the industry. Adithya Manirmaran, Regional Sales Head – Maersk Line, Partha Chowdhury, Regional Sales Head – Safmarine, and Pawan Kumar, Regional Operations Manager received this prestigious award on behalf of Maersk Line. Steve Felder, MD - Maersk Line (India, Sri Lanka, Bangladesh, Nepal, Bhutan, and Maldives), said, “ We are extremely proud of this honour bestowed on us. I would like to congratulate the Maersk line team, our business partners and our associates who have worked tirelessly to keep our values, objectives and above all our logistical solutions aligned toward the need of the customer. We will continue to purse our relentless path towards providing a one-stop platform a reliable, cost-effective, viable logistical solution.”
Skyways offers consolidation services through STEER Skyways Air Services Pvt Ltd has recently launched a consolidation program called STEER which is designed keeping in mind the complexity of the Indian system and will be the first of its kind in India. Through STEER, Skyways will now be able to offer Consolidation services within the DCSC terminal at Delhi airport. An MOU for this was signed by Skyways Group SL Sharma and DCSC Chairman Tushar Jani. Various airlines and customers were present for the launch of this program. A detailed presentation, on the product, was made by Skyways Group MD, Yashpal Sharma which also showed a short video of one of program’s palletisation. He shared various benefits of STEER for customers. The consolidation program will give cost-benefit to customers, give them better visibility of their business and will eliminate some key issues like damage to packages, missing packages and pilferage.
january 2018 - CargoConnect
93
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| events DMICDC launches Pan-India operations of Logistics Data Bank services Container tracking technology soon to be activated at Southern ports Krishnapatnam, Kattupalli and Ennore and new terminal of JNPT( BMCTPL)
DMICDC Logistics Data Services (DLDS), a joint venture between Government of India represented by National Industrial Corridor Development and Implementation Trust(NICDIT) and Japanese IT major NEC Corporation, has announced the launch of the Pan-India operation of its Logistics Databank (LDB) Service. LDB Service is a one-of-its-kind IndoJapanese technology partnership that provides easy-access single window digital visibility solution to streamline container logistics operations. After successful implementation at ports in the Western Corridor including JNPT, India’s biggest port, the service is now being expanded to three ports in Southern Corridor —Krishnapatnam, Kattuppalli and Ennore— and a new terminal of JNPT, Bharat Mumbai Container Terminal Private Limited. Suresh Prabhu, Minister for Commerce
94 CargoConnect - january 2018
and Industry, announced the nationwide rollout of LDB at the ceremony attended by dignitaries including: Gopal Krishna, Secretary, Ministry of Shipping; Ramesh Abhishek, Secretary-Department of Industry Policy and Promotion, Ministry of Commerce and Industry, Govt of India and Chairman, NICDIT; CR Chaudhary - Minister of State for Commerce and Industry and Consumer Affairs, Food and Public Distribution, Govt. of India; and H E Kenji Hiramatsu, the Ambassador of Japan. At the ceremony, agreements were signed to extend the service to Krishnapatnam in Andhra Pradesh, and Kattuppalli and Ennore ports in Tamil Nadu and another terminal in Mumbai region. This brings total number of ports where LDB is operational to six; four terminals at the JNPT were the first to pilot the scheme and it was launched at five port terminals in Mundra and Hazira
under Adani Ports and Special Economic Zone (APSEZ) in Gujarat in May this year,bringing nearly 90 per cent of the traffic along the Western Corridor and 70 per cent of the total container volume of the country under one tracking system. The LDB provides users a single window interface to check the location of the container along its entire journey, from ports to Internal Container Depots (ICDs) and Container Freight Stations (CFSs), with complete trace back information on intermediate points crossed and time taken. Since its launch in July 2016, the LDB has provided visibility to 5.9 million EXIM containers along the western corridor. The data published by LDB Analytics report has helped in improving the Dwell Time of the ICDs by 18-20 per cent, which means goods are moving around faster and delays are being reduced.
events
Pilot transports under TIR between India and Iran set for early 2018
To offer expected time savings of 40 per cent with a 30 per cent reduction in the cost of trade, the first pilot transports under TIR (Transports Internationaux Routiers or International Road Transport) between India and Iran along International North South Transport Corridor (INSTC) have been set for early 2018 at strategic talks recently held in Mumbai. The two-day meeting gathered 20 high level representatives from India and Iran’s transport industry as well as representatives from Customs. The goal of the meeting was to discuss the implementation of TIR and to establish cooperation between representatives of the public and private sectors in order to activate the use of TIR along the INSTC.
Also, during a visit to the port of Mumbai, the Indian Ambassador to Iran, Dr Saurabh Kumar, highlighted the strategic importance of the INSTC corridor as well as Chabahar port in Iran. He welcomed the discussions between the public and private sectors of the two countries on how to facilitate transport and transit along this corridor, in particular by using TIR. INSTC is a multimodal transport corridor conceived in 2000 by India, Iran and Russia – offering significant trade prospects for all three countries. Later INSTC was expanded to include ten new members: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Oman, Syria, Tajikistan, Turkey and Ukraine.
New Products Launch by Hyundai Construction Equipment India
Cii and CBRE organised Conference on Infrastructure Project Management
Hyundai Construction Equipment India (P) Ltd showcased their technological prowess with their latest SMART Series of excavators during the Excon exhibition at Bengaluru. SMART series machines are the result of understanding the customer needs and preferences in Indian market, many value added features including fuel saving kit, improved operator comfort and reinforcement of high stress areas on the machines are added to enhance the operational efficiency and profitability of the customers. Hyundai Construction also launched 3 new excavators for Indian market, R480 LC-9S is the fuel efficient, reliable and safe solution for OB removal in coal mines, this 9 series Global offering from Hyundai Construction Equipment India would ensure operational efficiency and profitability for the mining contractors.
CBRE South Asia Pvt Ltd. the world’s largest real estate consulting firm in association with CII organised the 8th edition of their annual Infrastructure Project Management Conference focused on “Building India – A New Approach” in New Delhi. Elaborating on how project management can act as a catalyst for ‘fast forwarding’ infrastructure projects as well as being an effective management and structuring tool as we look beyond the metros, the conference was inaugurated by Anshuman Magazine, Chairman, India and South-East Asia, CBRE along with the, Martin Woods, Sr. Managing Director and Regional Leader , Project Management, CBRE Asia Pacific, Anil Saraf, Chairman, ASF Group and Gurjot Bhatia, Managing Director, Project Management Group, CBRE South Asia. january 2018 - CargoConnect
95
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| events
Hat-trick win for JWR Logistics, JWC Logistics and Directors at Samudra Manthan Awards JWR Logistics Pvt Ltd has won the Best LCL CFS of the Year at the prestigious Samudra Manthan Awards which is held in high regards in the maritime industry. In order to facilitate the trade as well as the port users JWR has created a Container Freight Station specialized in handling of LCL container loads. It houses approximately 400,000 sqft of warehouses and has offered over 100 independent offices to its customers who are shipping line agents, freight forwarders, consolidators and MNC Import Consolidators and CHA’s. Parallel to this, JWC Logistics Parks Pvt Limited has been awarded the Best Logistics Company Award at the same event. JWC is spread across 50 acres of land; which house
Container Freight Station (CFS); dedicated DPD area; 3PL general warehousing and Custom Bonded area all under one roof for all type of logistical requirements. Notably, Kruti Jobanputra was honored with the highly prestigious Woman Empower of the Year Award. Lalit Jobanputra andKruti Jobanputra, Director, JWC Logistics Parks and JWR Logistics were presented the awards at the event which was organised by Bhandarkar Shipping.
Maersk Line brings top notch logistic solutions to Kerala
GreyOrange to kick off 2018 with 10 key industry partners
Maersk Line, world’s leading shipping company has announced key offerings for Kerala, aimed at enabling and facilitating trade. These offerings namely, introducing easy access to Maersk team round the clock, consistent supply of equipments for dry and reefer cargo, Remote Container Management and easy trade finance. The company is leading the way in creating integrated logistical solutions for the Indian marketplace to help facilitate and add momentum to trade in the region. Commenting on the occasion, Managing Director of Maersk Line (India, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives), Mr Steve Felder said, “At Maersk, we constantly work towards simplifying trade through our efficient service offerings and add value to our customers. We will continue to make a Difference in shipping, a difference based on a distinctive personable approach to business relationships. We look forward offer our services to the strong EXIM trade community in the region and facilitate seamless trade”
GreyOrange, a multinational robotics and supply chain automation company, will kick off the year 2018 with 10 key industry partners for their new automation projects in Asia, Europe and the Americas. These key players are regional and local specialists in warehouse technologies and end-to-end automation solutions, and will manage the sales and customer support for the installation of GreyOrange robotics technologies. The partners include SPAN Group in UAE, Lodamaster in Turkey, Advanced Warehouse Solutions in Australia and Taipei Trading Co., Ltd. in Taiwan. In Korea, JSR International is a third party logistics Company dedicated to the e-commerce market and AGVeK specializes in autonomous vehicles.
96 CargoConnect - january 2018
events
Hansa Heavy Lift develops tailored solutions Hansa Heavy Lift has strengthened its position in the floating unit market after successfully completing a series of projects in the Americas, Europe, Asia, and Africa. The moves included the transportation of 45 yachts in one consignment, as well as the safe delivery of two oversized barges and three tugs. “We see much potential in the floating unit market. Our very adaptable heavy lift ships and engineering know-how ensures we are able to meet our customers’ bespoke requirements globally, no matter the challenges,” said Emek Ersin Takmaz, Head of Projects, Engineering Department, Hansa Heavy Lift. The consignment of 45 yachts was recorded as the largest number of yachts shipped on a single vessel for Peters & May, and took place aboard HHL New York, with the journeys originating in the USA and the Caribbean and concluding in the UK and Germany, coordinated by bespoke logistics provider Peters & May.
Budapest Airport signs MoU with STO Express and ekol Budapest Airport has signed a cooperation agreement with STO Express from China, and EKOL, the European 3PL company with a strong presence in Hungary. The agreement establishes a cargo transportation network to deliver e-commerce products arriving from China to European customers. STO Express will operate scheduled cargo flights to Budapest Airport, which is likely to generate a significant increase not only in total cargo traffic, but also in the field of e-commerce, the main profile of the Chinese company. The agreement was signed during the annual conference of the “16+1 cooperation” initiative, comprising China and 16 countries from the Central and Eastern European (CEE) region, which got under way this week.
Ashok Gajapathi Raju inaugurates new terminal at Hubballi airport Civil aviation minister Ashok Gajapathi Raju recently inaugurated the upgraded terminal building at the Hubballi Airport. Ananth Kumar, Union Minister of Chemicals and Fertilizers and Parliamentary Affairs; Jayant Sinha, Union Minister of State for Civil Aviation; RV Deshpande, Minister for Large and Medium Industries and Infrastructure Development, Government of Karnataka and other senior ministers also graced the occasion. While inaugurating the upgraded terminal building, Gajapathi Raju said, “The development of Airport in the country is a joint effort of both the central and state government and all should come together to see that National Flag is flying high.” He also informed that Hubballi Airport has been included in the UDAN scheme in the second phase.
Kerry Logistics garners two wins at Directors of the Year Awards 2017
Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) is pleased to announce that the Group has garnered two wins at the Directors of the Year Awards 2017 (the ‘Awards’) organised by The Hong Kong Institute of Directors (‘HKIoD’). The Board of Directors and Group Managing Director William Ma were selected as the winner in the Boards category and the Executive Directors category of the Listed Companies (SEHK - Hang Seng Indexes Constituents), respectively. The Awards presentation ceremony was held on 30 November, 2017 at the Hong Kong Convention and Exhibition Centre, with Chief Executive of HKSAR Carrie Lam Cheng Yuet-ngor as the guest of honour. january 2018 - CargoConnect
97
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
events
Car Carrier Association organised 3rd Annual Conclave Car Carrier Association organised their Third Annual Conclave at Hotel Leela, Gurgaon on December 22, 2017. Vipul Nanda, President, car Carrier Association kickstarted the conclave by addressing the guests and thanking all the stakeholders. The event was graced by the young and dynamic Deputy Commissioner of Gurgaon, Vinay Pratap Singh. He praised the association for their long standing support to the industry. The event saw an engaging and insightful presentation on GST by Rajesh Raj Gupta where he talked about important aspects of GST like the Anti-profeteering Provisions, comparison of cost structure under RCM and Forward Charge etc. Three more presentations that were part of the conclave were presented by Kunal Chadda – Bharat Benz, Rahul Agarwal – Indian Oil and Vijay Kumar – Tata International DLT. Last but not the least, renowned motivational speaker Vijay Batra gave a heartwarming speech to uplift the spirit of the conclave and everyone present there. The event was concluded with dinner and cocktails.
98 CargoConnect - january 2018
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PEOPLECONNECT
Important Ingredients for Success: Hardwork & Enthusiasm
Serving the Indian aviation industry for over a decade now, Essa Sulaiman Ahmad, VP - India and Nepal, Emirates Airlines feels honoured to be a part of it and says the journey has been satisfying as well as challenging. In an exclusive tete-a-tete with Ritika Arora Bhola, the aviation expert shares his hobbies and interests, mantra for success, challenges faced and much more. Excerpts:
Journey So Far
Hobbies and Interests...
The airline industry is a very dynamic sector. It’s constantly changing, always evolving. The nature of the market is so sensitive that any change affects it. I started my career as a trainee with Emirates back in 2003 and today I feel honoured to be a part of the aviation industry. This industry helps an individual’s growth and provides with a plethora of experience about how this dynamic industry functions.
No matter what work one does, it is very important to maintain a worklife balance, by indulging in activities which help us grow as individuals and community. With the industry I am working in, travelling is a major part of my job, but I also try to travel for leisure. I try to take out time and explore the beauty of India. On weekends, I prefer spending time with my family and friends, socialising. I also try to take out time to go to the gym.
Challenges Faced Setting up a station at a new destination is always challenging. I remember setting up a station at Zambia within just 43 days. We managed to bring all the aspects – Airport, Reservation, Cargo, Catering, training people, sourcing locations for offices, setting up offices and working with the locales – all together in just 43 days! It was a great learning experience for all of us.
100 CargoConnect - january 2018
Mantra for Success I have always believed in keeping a positive outlook. I believe that hard work and enthusiasm towards learning are two very important ingredients for success. I think my motivation stems from the fact that I share the same enthusiasm and vision towards my work. This drives one to always be in pursuit of excellence when it comes
to delivering the best in work and life. Also, competition plays a very important part; it always keeps one on the edge of trying to perform even better and trying to sustain the growth.
Message for Aviation Aspirants The key to becoming a successful airline professional is having a solid foundation. Young professionals should read as much as they can about the industry. They should have thorough knowledge of not just their company but also about their competition. People are more adventurous now, and the world has actually become a global village where people keep travelling from one place to another. It is important to understand and learn about demographics and geographies where you think that you can influence change. One should be honest, push oneself as much as possible, have a solid foundation, and the rest will follow.
Logistics through innovation, dedication & technology...
Infrastructure & Advantages
Administration Building
Customs notified area Customs bonded warehouse State of the art security & surveillance Covered warehouse facilities of over 4,50,000 sqft under one roof with modern racking systems which can house more than 40,000 pallet spaces 3PL facilities
Warehouse
Flexi warehousing Robust fleet of company owned vehicles, monitored & tracked electronically 24/7 operations with CCTV monitoring Automobile logistics services Spread over 40 acres of land
Covered Warehousing Facility
Over 6000 TUEs per month, i.e. 72,000 TUEs per annum CFS owned equipment: 5 top lifters, 80 trailers, 30 forklift, 2 empty handles, 1 crane Direct access to the National Highway 17, from Panvel to Goa Distance from Panvel station: 6 Kms 3PL Admin Building
JWC LOGISTICS PARK PVT LTD, National highway 17, Panvel Goa Highway, Village Palaspe, Panvel, Maharashtra - 410206 Tel: 2143-661900 (100 lines) , 2143- 661952 | Email: jwccfs@jwclogic.com, krutijobanputra@jwclogic.com, jignesh@jwclogic.com | Website: www.jwclogic.com