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Indian Transport Sector Seeks Skilled Drivers Defence Logistics: 34 The Next Milestone

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Contents

Volume IX • Issue VIII • july 2018

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

08

16 COVER STORY

Express Logistics on a growth trail

SPECIAL FEATURE

Indian Transport Sector Seeks Skilled Drivers

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

focus

INTERVIEW

Marketing Executive Twinkle Thakur

Sandeep Chadha CEO, Allcargo Logistics and Industrial Parks Pvt Ltd (ALIPPL) .........................................58 Jagdish Anne Vice President – Sales, Shakti Hörmann ...60

Accounts & Administration Nitish Kumar Sr Designer & Visualiser Shaique Ahmad

Defence Logistics: The Next Milestone ................................34

Designer & Visualiser Mayank Bhatnagar

FEATURE

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.

FRONTLINE ..............................................6 GUEST COLUMN ......................................62 SHIPPERS SPEAK ...................................64 NEWS ...............................................66-79 PROFILE .................................................79 APPOINTMENTS .....................................80 EVENTS ............................................81-83 viewpoint ............................................83 UPCOMING EVENTS ................................84 Factors Impacting the Indian Air Freight Industry ..................................................42

PEOPLECONNECT Uday R Sharma

Director - Sales, Spoton Logistics Pvt Ltd ......................86

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

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

FRONTLINE New Delhi is willing to share Indian expertise in building quality infrastructure with Tajikistan. Both countries have agreed to enhance economic cooperation, particularly in sustainable water development.”

“The Walmart-Flipkart deal will be cancerous for the Indian retail industry, the Confederation of All India Traders (CAIT) has

– Nitin Gadkari

Union Minister for Road Transport, Highway and Shipping extended the offer to Tajikistan’s foreign minister Sirodjidin Muhridin to build quality infrastructure in Tajikistan

said in a letter to finance minister Piyush Goel.

CAIT said, “It’s an open

Our economy is poised to grow up to $5 trillion in the next 7-8 years, and up to $10 trillion in the next 15 years. So, we are working on an economic plan to create logistic hubs and see how to more efficiently manage logistics. We are identifying hindrances and removing them. At the same time, we are trying to digitalise the entire supply chain. The idea is to prepare a proper integrated logistics plan.”

case for backdoor entry of Walmart to retail trade of India.”

– Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation of India

Finance will not hinder massive construction in India – said Piyush Goel, Union Finance Minister

at AIIB summit 2018 in Mumbai

It’s a new way of executing the project faster, as the combined efforts to acquire land will ease a major burden for both ministries and pave the way for speedy execution.” said a high-rank official of Railway Ministry with the condition of anonymity. Indian Railways has proposed to develop bullet train track either on the expressway, or adjacent to it. This would be the first coordinated move by Railways and Road Transport department

6

CargoConnect - JUly 2018

Logistics division in the department of commerce is preparing the National Integrated Logistics Policy in consultation with various stakeholders, including logistics using ministries such as fertilisers, petroleum, food, steel, mineral, mines and food processing, among others

special feature

Indian Transport Sector Seeks Skilled Drivers Despite various developments and innovations, scarcity of skilled and trained drivers in the Indian Transport Industry still affects the country’s Freight and Logistics Sector largely. As per experts, initiatives are being taken by the transport sector to train drivers, slowly but steadily. In this article, Ritika Arora Bhola digs extensively into the issue along with finding circumstantial solutions

8

CargoConnect - JUly 2018

special feature

D

espite the Indian transport industry witnessing remarkable growth and development from the last few years and having one of the largest road networks in the world, spanning a total of 5.6 million kilometers– the scarcity of skilled drivers/manpower is an issue that still affects the freight and logistics sector. Though, the issue of shortage of skilled and trained drivers has been discussed by the authorities and experts several time at various forums, unfortunately no effective step has been taken for their training or recruitment so far. The scarcity of skilled drivers in India also presents a road safety risk as many drivers spend long hours behind the wheel, leading to fatigue which becomes a hazard on the roads. It’s high time that the Indian Transport Industry should introduce Training Programs especially designed for the drivers and make sure they possess a ‘license’ as well as a training certificate from the concerned authority/company. Also, the drivers need to be made well-aware of the latest technologies like GPS and RFID etc. In India, unlike foreign countries, drivers are neither well-educated nor they get training from a certified training school. They usually take over their father’s, grandfather’s business and learn from them. There’s no proper training course or apprentice-type scheme to train amateur drivers who aspire to be drivers.

JUly 2018 - CargoConnect

9

special feature Samir J Shah, Owner, JBS Group of Companies

The bigger problem is manpower availability and then one can talk about skilled manpower. Our industry does not hold an attraction to the youth of today. Additionally, as an industry, we have not been able to create a model where we undertake training and mobilisation on a continual basis. Self-help in this area is the need of the hour.”

Observing the same, Samir J Shah, Partner, JBS Group of Companies avows, “The bigger problem is manpower availability and then one can talk about skilled manpower. Our industry does not hold an attraction to the youth of today. Additionally, as an industry, we have not been able to create a model where we undertake training and mobilization on a continual basis. Self-help in this area is the need of the hour.”

Agreeing with Shah, Vimala Britto, Secretary and Correspondent, St. Britto’s Group of Institutions, stresses that the awareness among the students with regard to Logistics has to be propagated. She informs that according to a survey conducted by them by visiting various colleges and meeting students, they got to know that many students have not even heard the word Logistics.

Talking about the shortage of manpower in the logistics sector, Britto exclaims, “The factors which brings in scarcity of skilled manpower in this sector are: Logistics at the operational level is still considered a labour-intensive industry with many blue collar workers (e.g., truck drivers, warehouse operators) and administrative clerks. How well these employees are qualified, trained and retained is a major factor of logistics performance. Yet this factor is often over looked or taken for granted because of the high wages for skilled manpower.

The existing personals feel that skilled manpower may be a threat to their positions so they usually discourage educated and trained manpower to come into this sector.”

Britto continues by saying, “Moreover lo g isti cs can ’t be j ust l earned theoretically, it can be learned through

10 CargoConnect - JUly 2018

practical knowledge by working with the industry professionals.

Technological development occupies most of the logistics functionality and everything is digitalised. Moreover, critical and analytical thinking, sound decision making, adaptability, interpersonal skills and extensive industry knowledge are the need of an hour as the competitors are plenty and business is international. So, the industry urges to encourage more skilled personnel.”

Britto further suggests that the Ministry of Human Resource Development should encourage industry-based institutes to run the recognised courses to make the logistics aspirants not only employable but also entrepreneurs.

field of logistics is immense.”

Effective Solutions: As per the statistics, India’s logistics industry is currently worth about $300 billion and is set to grow at an annual rate of 12.17 per cent by 2020. According to a report by the National Skill Development Corporation (NSDC), India will need 28.4 million skilled manpower in the booming sectors such as transportation, logistics, warehousing and packaging to name a few.

The sector, which currently employs over 16.74 million employees, is slated to employ more than 28.4 million employees by 2022. Hence, in the coming years, this sector will have one of the highest incremental human resource requirement

The sector, which currently employs over 16.74 million employees, is slated to employ more than 28.4 million employees by 2022

Focusing particularly on the scarcity of trained drivers in India, Britto says that it is a major problem in the Transport Sector. “Firstly, Indians should understand that Trucker or Truck Driver is considered highly respected profession in the western world and same should be done here and secondly people should understand that their contribution to the

of 11.7 million from 2013-2022, across the 24 sectors that have been mapped for assessing incremental human resource requirement in the country.

As of now, according to the National Sample Survey’s 68th round survey, the districts with maximum employment in the transportation and logistics sector

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special feature Vimala Britto, Secretary and Correspondent, St. Britto’s Group of Institutions

Indians should understand that Trucker or Truck Driver is considered highly respected profession in the western world and same should be done here and secondly people should understand that their contribution to the field of logistics is immense.”

are Mumbai, Kolkata, Hyderabad, Delhi and Ahemdabad.

Talking about some effective solutions like opening driver training schools, boosting wages and giving benefits to the drivers, investing in their drivers’ skills, using on-board sensors to monitor driving patterns and then giving them real-time feedback, etc.

Shah, on a positive note shares that this is happening, slowly but steadily.

“Additionally some of the companies are working out that the timings of driving are monitored and also an effort

drivers are paid a paltry sum as a salary with an addition of a trip based incentive which induces him to make the maximum number of trips to earn more. This is not the case in the western countries. A trucker can drive a vehicle only for a maximum period of eight hours after which a compulsory rest is required and a driver has to follow this rule to avoid being blacklisted.

3. Now with regard to the resting places – there are no sufficient facilities available for the truckers here unlike the western countries. A truck in the

the back of the driver’s seat which is used for resting where as in the western counties a truck is built with good facilities for the driver and the cabin is equipped with a temperature controlled cabin, a neat bed for the tucker to rest, a microwave oven for heating the food, a coffee maker, a SAT TV and an Active device which enable the main control station to monitor the movement of the vehicles.

6. An Active Device or a Passive device which enables to find the history of a trip covering a distance is sparingly used in India as it is considered an expensive investment.

7. We should abolish the practice of providing a helper to the trucker who is called a cleaner or kili in local language and mostly they turn out to be drivers after some time without attaining proper license or training. The cleaner earns the good will of the driver over a period of time and the driver becomes a teacher and gives the wheels to the cleaner in a remote road and if all goes well the vehicle reaches the destination or meets with a tragic accident.

is being made to have multiple drivers on a truck such that the driver can spend a night at home once every 2/3 days. Such innovation is the need of the hour and the industry has started working in the right direction,” he states.

While Britto suggests some measures and hopes it would definitely bring in great changes.

1. Besides training schools educated youth should also take this as a profession.

2. If you look at the problem in a microlevel the answer is most of the truck

12 CargoConnect - JUly 2018

foreign nations is equipped with a fuel station, a play station enabling the driver to play some video games to reduce the driving stress, a convenience store from where he can get his basic needs such as tooth paste, and eatables like munchies and biscuits.

4. A B and B (Bed and Breakfast facility) where he can rest.

5. Maximum numbers of trucks here are constructed with more space for the cargo than the cabin for the drivers.

If you look at our vehicles there is predominantly a flat board fitted at

8. Periodical tests with regard to colour blindness, driving abilities and cautionary and informatory signs are done contrary to no tests in India.

9. To the question whether logistics firms are beginning to address this issue by opening driver training schools upgrading drivers and bringing awareness with regard to GPS and RFID technology is yet to be done as most of the truckers are not aware of this.

10. Boosting wages and benefits – A small hike is given on the salary but the trip based incentive scheme is still being

special feature Captain M M Saggi, Director, Narottam Morajee Institute of Shipping (NMIS)

The course covers virtuallyall aspects of commercial shipping and includes subjects like shipping practice, shipping environment, geography of sea transport, laws of sea transport, multimodal transpiration, chartering, risk management and insurance, etc. NMIS is registered as a non-profit trust and hence the course fees is very economical i.e. `22,000 to `31,000 for the whole year depending on the nature of course.”

followed which makes the trucker make a maximum trip without resting with a aim to make more money which ultimately results in accidents bringing in loss of lives and total damage to the cargoes.

11. Investing in their drivers’ skills is sparingly done.

12. Using on-board sensors to monitor driving patterns, and then giving realtime feedback etc. is sparingly done.

clearly sees poor working conditions and low pay scales in comparison to other career options because of poor or non-existent manpower policies.

The industry is expected to give a push to Indian economy with emergence of e-commerce, organised retail and Quick Service Restaurants (QSR).

With more organised approach towards transport and logistics activities due to emergence of global third-party logistics (3PL) players, the demand for trained employees with specific skill sets is expected to further increase.

Britto further states, “In my opinion, we have a long way to go before we can have trained, qualified truckers who can deliver their duties with due care and diligence.”

Some of the leading logistics training institutes are: CII Institute of Logistics, Narottam Morajee Institute of Shipping (NMIS), JBS Academy Pvt Ltd-Center for Logistics, Maritime and Management Studies and Research, St. Britto’s College, Chennai etc

Rising Demand for Logistics Institutes We cannot deny the fact that, at present we don’t have many good institutions that offer courses in logistics and related sectors; but the number is definitely onthe rise. At present, we only have a handful of good institutions that offer full-fledged courses namely, CII Institute of Logistics, Narottam Morajee Institute of Shipping (NMIS), JBS Academy Pvt Ltd-Center for Logistics, Maritime and Management Studies and Research, St. Britto’s College, Chennai, etc. There are other government and private universities also that offer graduate and post graduate courses in this specific field like Lovely Professional University (LPU), Jalandhar, School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar, Gujarat and Asian School of Business to name a few.

Dilip Chenoy, Former MD and CEO, NSDC mentioned in an event recently that at present, the biggest challenge for the sector is to attract talent. The sector

14 CargoConnect - JUly 2018

to work in the Logistics/Transport Industry, he tells, “All our lecturers are either given by hands-on professionals or domain experts in shipping and related logistics sector. So, there is no gap between what is taught and what is expected by the industry. The course covers virtually all aspects of commercial shipping and includes subjects like shipping practice, shipping environment, geography of sea transport, laws of sea transport, multimodal transporation, charteing, risk management and insurance, etc.

However, Captain M M Saggi, Director, Narottam Morajee Institute of Shipping (NMIS) says that there is no course available in the country which gives a 360 degree holistic overview of commercial shipping and related logistics.” He adds, “NMIS has presence in – Mumbai, Chennai, Kolkata and Delhi. Students in other locations can follow this program through correspondence.Video lectures are provided to all candidates at small cost thus offering them a virtual class room. Study material is also made available online.”

Talking about preparing students

NMIS is registered as a non-profit trust and hence, the course fees is very economical i.e. `22,000 to `31,000 for the whole year depending on the nature of course. NMIS was established about 50 years back.

About 600 students enrolled with us in the first and second year of our course. This institute is run by shipping and related logistics industry. The government, especially DG Shipping, also sends its representatives to our governing councils. Shipping and logistics is a sector which is growing rapidly offering great opportunity to our students. Almost all our students find decent placements.”

cover story

Express

Logistics on a growth trail

16 CargoConnect - JUly 2018

cover story

I

nterstate transportation in the country has smoothened after implementation of GST, as multiple layers of state and central taxes no longer exist. It has opened the growth path for the Indian Logistics Industry which has been struggling to bring down logistics related cost and emissions from past many years. Express logistics companies in India are shifting from traditional set up towards integration of IT and technology, and this is expected to reduce the costs incurred and meet service demands. The booming Indian E-commerce industry has also been a major growth driver for express logistics.

Express logistics industry in India is growing by leaps and bounds and riding on the tidal wave of country’s booming e-commerce sector. Express logistics players are sustaining the demand, rising from the e-commerce platforms, by expanding their networks to historically underserved markets and ensuring timely delivery. Gaurav Dubey presents a feature by taking the relevant insights from the express logistics players and ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’, the report jointly coined by Deloitte and Express Industry Council of India

According to a report, jointly coined by Deloitte and Express Industry Council of India, titled ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’ - the Indian express industry is one of the fastest growing markets globally. However it has a small share of about less than 2 per cent of the global market. The Indian express industry grew at 15 per cent CAGR over the past five years and is estimated to continue its growth trail. It is expected to grow at a CAGR of 17 per cent and reach a size of INR 48,000 crore in the next five years. This growth will be primarily driven by the growth of E-commerce, significant demand from the small and medium B2B segments and growth of the country’s cross-border trade. The report further reads -

JUly 2018 - CargoConnect

17

cover story The major trends that will be noticed in the express delivery segment would be the appropriate allocation of resources from both public and private sector players in building infrastructure and to remove impediments around distribution.�

K. Satyanarayana, Co-founder and Director - Ecom Express Pvt Ltd

The express industry is labour intensive. It employs around 1.6 million people both directly and indirectly.

The industry also uses services such as transportation, rail, warehousing, airport services, and cargo handlers leading to significant indirect employment.

The express industry also contributes to the national exchequer by way of direct and indirect taxes. As per CBEC figures, in financial year 2017, the express industry contributed around INR 3,000 crore by way of service tax and another INR 2,000 crore through custom duties besides contribution in the form of direct taxes around employment creation.

The social security benefits offered to employees in compliance to the laws of the land are immense, thereby improving quality of lives.

In addition, the express industry plays the role of a business enabler by providing logistics links to its customers.

It helps businesses reach out to their customers and partners by providing time bound shipment services. Express delivery services are becoming increasingly important for the competitiveness of companies - maximising the efficiency of their production activities, minimising their inventory costs, providing

Indian express industry market by mode (FY17) All values in INR cr

Domestic

Indian Express industry

22,000

B2B

10,000 | 59%

17,000 | 77% B2B

Domestic Suface

12,000 | 71%

Suface Air

12,000 | 55%

Domestic Air

a superlative customer experience, etc.

Small, medium and micro enterprises are engaging with express providers for high quality, rapid delivery services that they cannot provide themselves.

Express industry is also vital for companies looking to connect their products/ services to the entire country on domestic side and to the world on export/import markets.

Constituents of the Indian express industry – domestic express and international express Domestic express industry, comprising

International

5,000 | 23%

International Air

5,000 | 100%

7,000 | 41%

5,000 | 29%

Air Express

10,000 | 45%

Note: B2B includes auto components, textiles and lifestyle, electronics, pharma, consumer durables, medical equipment B2C includes e-retail, BFSI, education, other government and public sector

18 CargoConnect - JUly 2018

cover story Expectation from the government would be to streamline the E-way Bill System on priority to ensure the intended benefits of GST get realised. As the requirement for express cargo services is now expanding even to hitherto underserved market, infrastructure improvements in terms of road connectivity & conditions should be prioritised as well.�

Naveen Rawat, Director Business Development, Holisol Logistics

of shipments transported and delivered within the country, is a key constituent of the Indian express industry and is estimated to be worth INR 17,000 crore.

The surface express constitutes INR 12,000 crore of the total domestic express while air express constitutes the remaining INR 5,000 crore.

The share of surface express in domestic express has improved by 16 per cent in the last five years, mainly due to active substitution of air express by surface express. With GST implementation, higher efficiencies are expected in the surface transport and the share of surface is expected to improve in the future.

of medium and small-scale industries, and manufacturing facilities, deployment of technologies facilitating API integration, and superior tracking and tracing have been the key drivers of international express.

Outbound express is estimated to have grown at 15 per cent CAGR over the past five years and contributes close to 60 per cent (in terms of volume) to the total international express while inbound express contributes the remaining 40 per cent. Outbound express mainly consists of samples, documents and goods such as apparel, leather articles, handicrafts, gems, etc. The inbound express, on the other hand,

time-sensitive.

Consumers of the express services The express industry is further classified into two segments - B2B (business to business) and B2C (business to consumer). Companies involved in manufacturing and engineering are the key users of B2B express services.

Some of these industries include electronics (OEMs), digital goods, autocomponents, textiles, pharma, medical devices, and industrial engineering. The B2B segment at a domestic India market level is estimated to be around INR 10,000 crore.

On the other hand, in the B2C segment, e-commerce is the largest contributor with more than 70 per cent contribution, followed by Banking and Financial Services Industry (BFSI) and other document deliveries belonging to education, telecom or government and public services sector. At a domestic level the size of this segment is expected to be around INR 7,000 crore

Express landscape for e-retail industry E-retail, as a part of the B2C express segment, has contributed INR 5,000 crore to the express industry in FY17.

In terms of volume, close to 1.3 million shipments are shipped daily – including the forward fulfilments and returns.

International express has grown at 12 per cent CAGR over the past five years and is estimated to contribute close to INR 5,000 crore (23 per cent by value) to the Indian express industry. Growth

20 CargoConnect - JUly 2018

consists of samples from various industries and non-samples such as components of industrial goods, auto component spare parts, equipment, lifesaving drugs, aircraft parts, etc. which are

The disaggregated nature of demand and supply, high variability and the complexity of returns for e-retail has challenged the traditional express operations. However, this has also unlocked many opportunities for the express players by providing newer avenues for value addition. The highly competitive nature of e-retail players

cover story Increasing investments in automation and artificial intelligence to increase speed and efficiency and to reduce cost will be a catalyst for growth.

Domestically, regulatory reforms such as GST and the government’s focus on the manufacturing have been buoying the growth of the industry.”

Percy Avari, Regional Manager – South Asia, Aramex

has translated to an increased competitiveness in the express landscape with the players adopting innovative models based on technology and collaboration to address the prevalent challenges and opportunities to create differentiated value propositions. The dynamic and competitive nature of the e-retail segment has brought in many new trends for the industry such as adoption of alternate delivery methods, customer centric delivery, shift from air express to surface express, increase in regional movement, adoption of technology and expansion to remote locations.

Tier-II and Tier-III cities are taking on driver’s seat Exponential boom in the E-commerce business has taken the consumer base well beyond Tier- I towns of India.

Tier-II and Tier-III cities of the country, which home aspiring middle class, is driving massive demand and has prompted many logistics players to build out their distribution capabilities in these regions. Cost effective logistics and full-stack supply chain solutions would drive e-tail companies to enter into these new markets.

K. Satyanarayana, Co-founder and Director - Ecom Express Pvt Ltd specifically highlighted the importance of building infrastructure for removal of hindrances in distribution and also stressed on the role of technology and automation in meeting consumer demand. He says, “The major trends that will be noticed in the express delivery segment would be the appropriate allocation of resources

22 CargoConnect - JUly 2018

from both public and private sector players in building infrastructure and removing impediments around distribution.

Secondly, technology and automation will play a crucial role in meeting consumer demands with transparency. The technological innovations in transport and logistics will impact on how organisations function in the future. No matter how clear the vision, strong planning and technical insights that companies may have into building technology capabilities, yet it would be necessary to ensure that companies maximise their potential for better supply chain management and eventually improve competitiveness. Other factors such as the implementation of GST and the penetration of logistics into the bur-

Indian express industry (INR cr) 48,000 CAGR ~ 17% CAGR ~ 15%

22,000

10,870

FY12

FY17 FY22 (estimated) (projected)

geoning hyper-local delivery segment will pave the way for changes and dynamics of the industry.”

Next generation buyers will come from Tier-II & Tier-III cities E-commerce is expected to grow manifold in the next few years and demand will come majorly from small towns.

Satyanarayana mentioned about the NASSCOM and Akamai Technologies report titled: The Future of Internet in India and said, “The number of internet users in India is expected to grow to 730 million by 2020. Rural India will account for 75 per cent of this new internet user growth. The country also has one of the largest smart phone user bases in the world. This will get further boost with government’s initiative like Digital India Programme that also focuses on connecting each village panchayat of the country.”

The ever rising growth of Ecommerce industry will influence the imperative need for robust and quality logistics programme, connecting rural footprint to the digital economy, which will in turn spur the growth of the logistics sector, since logistics is the key enabler and backbone of the E-commerce retail industry.

The logistics and fulfillment needs of the industry are evolving rapidly with the changing business dynamics. The industry has been witnessing a rapid scale-up in service orientation and complexity. There has been an ever-increasing emphasis on service levels, speed, reliable transit times, customer centric-

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cover story Manufacturing sector and MSMEs are the key drivers of the growth of the B2B express industry – both international and domestic. Historically, a direct correlation has been noted between the growth of these sectors and growth of express.”

Karthik Radhakanthan, Regional Cargo Operations Manager – South Asia, Middle East & Africa, Cathay Pacific Airways

ity, geographical reach and penetration especially in tier-II & III towns and rural markets, surged Cash on Delivery (COD) services capabilities, and endto-end supply chain visibility and security with assurance requirements.

3 trends shaping the future of Indian Express Logistics industry As the express industry is consistently growing at a high rate, supply chains are

supply chain will require advance IT solutions for real-time predictions and actions to bring the efficiency in operations. A few areas which require attention would be GPS Navigation, Real Time Visibility, Route Optimisation, Epayment Solutions, Robotics, Analytics and Machine Learning.

Flexible and Responsive Supply Chain: Meeting consumer’s requirements at multiple locations with mul-

also have to start focusing on the issue exploring feasibility of alternative fuels and e-vehicles.

Express logistics is a business enabler Marketing efforts of large e-commerce players and rise of digital payment platforms are some of the key factors which have enabled the growth of e-commerce demand from the regions beyond the metro cities. Express logistics players

Express cargo is a labour intensive industry and government must enable & encourage skill building initiatives to ensure sufficient trained resources are available for the rapidly expanding industry

becoming increasingly complex and dynamic due to multiple locations sourcing, and purchase orders are becoming smaller and more frequent. There is a need for developing scalable logistics network to manage inefficiencies and complexities in operations. Naveen Rawat, Director Business Development, Holisol Logistics, highlighted three major trends which would impact the Indian express logistics industry Information Technology (IT): The growing complexity and dynamism of

24 CargoConnect - JUly 2018

tiple transport modes at different times will require a flexible supply chain that can adapt easily and respond faster to the unexpected changes and circumstances.

Focus on Sustainability: Companies are increasingly adopting formal sustainability policies and increasingly prefer to work with partners providing products and services which minimise business’s social, economic and environmental impact on society, enhancing positive effects. Express industry will

are sustaining this demand by expanding their networks to these historically underserved markets and ensuring fast and reliable order fulfillment. This is leading to a virtuous cycle which has resulted in rise in demand coming from these areas, thus contributing to the growth story of e-commerce industry.

Technology to play a vital role in shaping future The main users of express industry are small and medium enterprises across broad sectors, including manufacturing, retail, pharmaceutical care and health

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cover story “Consumer delight plays a major role in the success of an e-commerce transaction. And our survey suggests that the delivery of the shipment is the most critical Moment of Truth in any e-commerce transaction.”

Anand Ramanathan, Partner – Strategy and Operations, Deloitte

services, and financial services. Percy Avari, Regional Manager – South Asia, Aramex holds the view that more number of B2B and B2C businesses are now tapping e-commerce as a way to broaden their reach beyond the local market and this boom in e-commerce

Contribution to economy (FY17)

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INR 3,000 cr service tax

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activities will continue to support growth of the express industry. He says, “Technology is also playing a key role in shaping the future of this industry. Increasing investments in automation and artificial intelligence to increase speed and efficiency and reduce cost will be a catalyst for growth. Domestically, regulatory reforms such as GST and the government’s focus on the manufacturing sector have been buoying the growth of the industry.”

The fragmented nature of the Indian express industry is now changing gradually. Logistics companies that had the

26 CargoConnect - JUly 2018

foresight and invested in automation and technology succeeded to become the market leaders and created a more efficient express logistics business.

Avari continues, “Express logistics has been enabling the growth of the e-commerce industry, because a well-functioning express business is integral to the success of e-commerce industry.

Automation and robotics in hubs and first and last mile capacities have been supporting the e-commerce business.

Technology is also being adopted to improve operational efficiency in the e-commerce industry, especially with investments in IoT, data analytics and cloud computing. There is an increasing trend towards the ‘Urbanisation’ of the industry with the usage of sharing economy matching capacity with demand.”

MSMEs and Manufacturing sector are the key growth drivers Karthik Radhakanthan, Regional Cargo Operations Manager – South Asia, Middle East & Africa, Cathay Pacific Airways also believes that future growth will be driven by increasing demand from e-retail and manufacturing sector, with infrastructure and technology being the key enablers of this growth.

He asserts, “Internet and smartphone penetration is improving reach and changing lifestyles of the massive population that India holds, which in turn is expanding the market potential in India. People are spending more money in e-retail due to the sheer ease and convenience it provides. The introduction of newer technologies in various operational processes is not only going to boost the industry but bring about a radical transformation in the way it

works integrally.”

“Manufacturing sector and MSMEs are the key drivers of the growth of the B2B express industry – both international and domestic. Historically, a direct correlation has been noted between the growth of these sectors and growth of express.”

Indeed, e-retail is one of India’s fastest growing industries and has been a key growth driver of the Indian express industry in the past five years. It has transformed the express landscape due to its distinct nature of operations for e-retail order fulfillment as compared to the traditional deliveries, and the fast-paced growth of this sector.

Striving hard to meet customer expectations Commenting on customer behaviour, Radhakanthan states, “Customer expectations regarding delivery windows have been going up sharply. Three years ago, customers used to expect delivery in three days, last year it dropped to two days, and now customers are looking at one day or same day delivery.

The end to end solutions around order fulfilment of the e-retail shipments has created a huge demand for express services. Typical express cargo services involve transport logistics of door-todoor deliveries with guaranteed time and traceable location. Today, thanks to superior air connectivity, industry players are able to deliver goods within a day or two.”

Competition, together with information technology advancement, have encouraged the express cargo industry to integrate specialised and customised logistic solutions into its typical ser-

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cover story In E-commerce, the thrust is more on the delivery timeline than price. Supply chains, in general, must adapt to a new consumer paradigm, a shift reflected in decreased inventories along with faster and efficient fulfilment timelines.”

Rachid Fergati, Managing Director - Indian Sub-Continent, UPS

vice model. Major industry players can now offer many value-added services including packaging, insurance, dangerous and bulky goods handling, customs clearance, and shipment-tracing.

Due to the nature of delivery of e-retail time-bound, door-step delivery, and express has turned indispensable for the e-retail industry.

tering this business, given the large and lucrative volumes in the B2C segment.

While, B2C growth would stabilise and multiple MSMEs operating in Tier II & Tier III cities as “sellers” would join this bandwagon. Hence, the MSME sector is another trend that we would expect to ride on the express logistics segment.

To support this growth, technology and

most critical Moment of Truth in any e-commerce transaction. Hence, to sustain the boom of the e-commerce industry in India, most players are investing in delivery setups and mechanisms so as to ensure time bound door-to-door deliveries. Express logistics is the backbone of this setup and hence is expected to garner large investments to meet

E-retail, as a part of the B2C express segment, has contributed INR 5,000 crore to the express industry in FY17

Delivery of shipment is the most critical Moment of Truth Anand Ramanathan, Partner – Strategy and Operations, Deloitte agrees to the point that the express industry is expected to witness a significant growth in the B2C segment with ecommerce becoming a focus area for most express logistics players. On the question of trends that will shape the future of Indian express industry, he said, “This space is expected to add more capacity with smaller startups en-

28 CargoConnect - JUly 2018

logistics infrastructure would play a major role, and we would witness most express players adopting smart warehousing and delivery systems going forward.”

Undoubtedly, success of e-commerce business largely depends on time bound express logistics services. Highlighting its importance further, Ramanathan asserts, “Consumer delight plays a major role in the success of an e-commerce transaction. And our survey suggests that the delivery of the shipment is the

up with the e-commerce shipment demands.”

Take of stakeholders on the policy front The future of Indian express industry seems bright with the expected CAGR of 17 per cent in coming years. And, as per reports, the industry’s size would go up to INR 48,000 crore by 2023, which has set the industry stakeholders on their toes. However, when we asked about the regulatory and policy changes required for supporting this boom, ma-

cover story The increase in e-commerce will increase business opportunities for all involved in the supply chain. With the change in scenario, each product is being delivered to the doorstep. So, it will generate more job opportunities for delivery companies and time-saving for end consumers.”

Vipan Jain, Chief Operating Officer, Delhi Cargo Service Centre Pvt Ltd

jority of them raised concerns pertaining to the recently rolled out e-way bill, stringent customs rules such as arbitrary suspension of license of authorised couriers and inability of airport infrastructure to maintain pace with the growth rate of the express industry.

Need to ease out e-way bill norms With the Logistics industry being accorded infrastructure status, an integrated logistics policy could go a long

is a definite need to ease out norms around GST in relation to e-way bill and state level compliance needs. It will not only enhance our trade competitiveness but will create employment, prevent rural migration, spruce up performance and pave the way for India to become a global logistics hub.”

Streamlining of e-way bill should be at priority Rawat from Holisol Logistics believes that implementation of GST, granting

Indian express industry is one of the fastest growing markets globally still it has a small share of about less than 2 per cent of the global market

way in streamlining and consolidating multi-department requirements, besides facilitating logistics growth in a structured manner.

Satyanarayana from Ecom Express applauded the Union Government’s efforts for integrated development of the logistics sector and said, “The commitment of the Government towards an integrated development of logistics sector through policy amendments, infrastructural development, tax reforms and technology adoption will certainly deliver desirable results. Besides, there

30 CargoConnect - JUly 2018

infrastructure status, setting up of a new logistics division under Commerce ministry are some of the right steps taken by the Union Government towards making logistics a key enabler of India’s economic growth. Further, he suggested, “Expectation from the government would be to streamline the e-way bill system on priority to ensure the intended benefits of GST get realised. As the requirement for express cargo services is now expanding even to hitherto underserved markets, infrastructure improvements in terms of road connectivity & conditions should be prioritised as well.

“And, as express cargo industry continues to be labour intensive, the government should enable & encourage skill building initiatives to ensure sufficient trained resources are available for the rapidly expanding industry. Urban logistics planning is one more area where focus is urgently needed. Governments should actively encourage policy planning & development of transport infrastructure which prevents congestion and other problems associated with an unchecked urban sprawl.”

Infrastructure of Indian airports is unable to keep pace with growth In the last two years, India’s rank in Logistics Performance Index has improved by 19 places (from 54 in 2014 to 35 in 2016 in the index compiled by World Bank), and there is a huge potential for further improvement. The largest tax reform, GST, implemented by the government in 2017, will definitely benefit the economy in the long term, and it has a significant implication on the express industry. However, Avari from Aramex agreed with other stakeholder’s concern pertaining to e-way bill and said, “The frequent changes in the regulation, and the implementation of e-way bill with the fragmented nature of the express industry is a key hurdle to the future.

On the infrastructure side, the policy governing the development and usage of airport facilities has an impact on the express industry. Indian airports are unable to maintain pace with the growth of the express industry. Most airports have been operating in the same space which they had established five to seven years back. Custom regulations on suspension of licenses of authorised courier without any prior investigation and show cause notice is also a major impediment affecting express companies.”

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cover story Apart from contributing considerably to the national exchequer and providing employment as well as growth opportunities to other industries, a whole host of sectors are serviced by Air Cargo industry such as electronics, pharmaceuticals and most importantly, e-commerce.”

Kunal Wadhwa, Partner – Indirect Taxes, PwC

Stringent customs rules should be eased Ramanathan from Deloitte also raised his concerns on inadequate airport infrastructure and arbitrary suspension of license by customs authorities and said, “Faster commissioning of express terminals at the airport by optimising the multi-level and multi-party approval matrix, relaxation of stringent customs rules such as suspension of the license of authorised couriers without prelimi-

initiatives such as “Make in India”, the National Integrated Logistic Policy and the National Civil Aviation Policy, and increased investments, there has been a considerable focus on improving the logistics performance.”

“The regulatory policies and infrastructure readiness are the key factors impacting the logistics performance of the Indian express industry. Although, initially the industry was coping with

Digitalisation will tap loops in information exchange

some challenges in GST implementation, it has substantially simplified and organised processes, ultimately improving the transit time and margins. Digitisation of all processes is sure to close loops in documentation and exchange of information.”

On the point of required policy changes and infrastructure enhancement, Radhakanthan from Cathay Pacific Airways expounds, “With e-commerce penetration, economic revival, implementation of GST and government

“Growth of e-retail is expected to bring in further benefits for the express industry. However, the industry needs to address the regulatory and infrastructure challenges in order to maximise

32 CargoConnect - JUly 2018

Express industry touching new heights The presence of a robust logisticsrelated infrastructure and an effective logistics management system facilitates seamless movement of goods from the point of origin to that of consumption and aids economy’s movement to prosperity. The need for time bound delivery services is expected to increase with economic growth and development of trade and commerce in the country leading to a 17 per cent CAGR growth of the industry in the next 5 years.

Express industry is expected to grow at 17% CAGR

nary investigation and overall road and air infrastructure improvement would be critical to support the growth of express industry.”

these benefits. To enhance this traffic, airports and their cargo communities need to invest in infrastructure, IT and their capabilities, the realisation is growing that the facilities of yesteryears are not well suited to handle the dynamics associated with high velocity and high volume traffic such as e-commerce.”

The regulatory policies and the infrastructure readiness are the key factors impacting the logistics performance of Indian express industry. Regulatory changes such as GST implementation are expected to give a fillip to the industry by reducing complexities related to movement of goods and boosting the overall demand in the economy. Improvements in air infrastructure, customs, export-import policy and e-way bill could also substantially benefit the industry.

In addition, keeping in pace and to sustain the growth momentum, the industry is poised to make significant investments in infrastructure, technology, data analytics, security and automation. These investments are therefore expected to benefit the economy multi-fold.

focus

DEFENCE LOGISTICS: THE ne MILESTONE Defence logistics sector is opening doors of new opportunities for the investors. Charu Pandey delves into the growth potential in defence logistics of India and presents a short report by taking relevant insights from the key logistics players of the segment

34 CargoConnect - JUly 2018

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focus

L

ogistic industry in India is evolving rapidly.

It acts as an interplay of infrastructure, technology and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their costs in the logistic sector and provide effective services. As per Logistics can be seen as the bridge between deployed forces and the industrial base, which produces the material and weapons deployed forces need to accomplish their mission.

Defence logistics is an emerging sector in our logistics industry.

A very large portion of the defence budget is spent on the force maintenance and in wars. Defence Logistics is a complex subject and it deals with the expenditure of national resources.

markets and also aim at global business”.

R Shankar, CEO, TVS Logistics Service Limited says, “In 2017, India became one of the Top five Defence Spenders in the world, according to the ‘Military Balance 2018’ report by the International Institute for Strategic Studies (IISS). Expense on India’s defence increased from $51.1 billion in 2016 to $52.5 billion in 2017. However, as a percentage of GDP, it is reducing year on year in the last 20 years.

There is potential for growth in logistics in this sector. The Indian Aerospace and Defence (A&D) sector is a multi-billion-dollar market and has an ambitious target of achieving a turnover of INR 1,70,000 crore in military goods and services by 2025. The government of India is exploring opportunities for optimising costs in defence by increasing productivity and reducing waste in the non-core activities; including procurement and logistics.

Efficient procurement and supply chain management is crucial for enhancing India’s defence preparedness and also ties well with our Make in India-Make for India imperatives.

However, the entry barriers are very high in A&D; and defence logistics is niche capability built with intensive practical exposure. It will require 3PLs with very high levels of service maturity, application of technology for long term-part level visibility, and wide reach to enter this segment”.

DEFENCE OUTSOURCING OF NON-CORE LOGISTIC FUNCTIONS:

Commenting on the expansion in the defence logistics, which could be the next big thing in Indian Logistics sector, Harpreet Singh Malhotra, CMD, Tiger Logistics India Limited, says, “There is today an increasing acceptance of the concept of defence outsourcing of non-core logistic functions. Outsourcing frees commanders to focus on their primary task and saves resources. The paper attempts a holistic treatment of the subject from conceptual concerns to related practical issues. A brief scan of defence outsourcing the world over leads us to examine benefits that accrue and the precautions that should be taken.

The paper goes on to analyse types of functions that can be safely outsourced and suggests a methodology for the entire process.

Finally, the paper suggests a well-calibrated phased approach for India with progressive reviews and improvements. Tiger Logistics, as a leading defence logistics player, is very hopeful about the growth and expansion of the defence sector in coming years. If you see the country’s vision and new opportunities which come under Make in India and PPP platform, growth has become substantial. India is providing great avenues in sector opportunities and investments for various sectors specialising defence sector. India is expected to spend US$ 40 billion on defence purchases over the next 4-5 years. The opening of the strategic defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic

36 CargoConnect - JUly 2018

Acceptance of the concept of defence outsourcing of non-core logistic functions is increasing day by day. Commenting on the growth potential in this sector, Malhotra said, “Today, outsourcing has universally come to be accepted as a value addition process. Now, no corporate entity does all tasks inhouse. There is an increasing acceptance of the concept of defence outsourcing of non-core logistic functions. Outsourcing frees commanders to focus on their primary task and saves resources. Most militaries in the world are constantly facing the twin demands of reduction in defence budget and a ceiling on manpower. The intelligentsia is openly questioning the need to have large standing armed forces and therefore, the need to incur huge expenditure on their maintenance. They consider it to be the waste of scarce national resources, which could be more fruitfully diverted for the betterment of the people. Faced with these challenges, militaries in all countries are trying to devise ways and means to reduce expenditure without any impairment of their fighting potential.

The offset clause (which stipulates that 30-50 per cent of the armament purchase value should be spent on buying Indian components, sub-systems and products) introduced in capital purchase agreements with foreign defence players will ensure that an ecosystem of suppliers is built domestically. Outsourcing of certain less critical functions has emerged as a viable and credible option with immense potential in this context. Indigenisation will take centre stage and gather pace going forward. Government has taken a number of steps in this direction.

focus

As we have discussed the growth potential and the other aspects of defence logistics, defence logistics can be the next milestone in Indian logistics. Malhotra also shares his plan to expand the wings in the defence logistics sector, “There is a big opportunity in the defence sector for both domestic and foreign investors. We have the third largest armed force in the world with an annual budget of about US$ 38 billion and 40 per of this is used for capital acquisition. In the next 7-8 years, we would be investing more than US$ 130 billion in the modernisation of our armed forces. India may become a large sourcing base for components and sub-systems in the years to come for foreign

38 CargoConnect - JUly 2018

602.8

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Non-core logistics functions that can be outsourced include, spares management for the military fleet to reduce inventory holding and associated manpower costs; vehicle repair and maintenance; global procurement, warehousing, and distribution of non-core items like uniforms and accessories; general stores, food and medical supplies, etc. Outsourcing can be transformational and can include sourcing, demand planning, inventory planning and management and logistics including warehousing and transportation. Through the optimal use of technology, the entire supply chain can be enhanced leading to huge savings”.

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On the other hand, Shankar presents his views on the same highlighting, “India has the third largest defence force in the world; they operate across the country and in tough geographical and climatic conditions. Procurement for an enterprise of this size, managing storage, obsolescence and also transportation can be a real challenge.

Top defence budgets in 2017

ed

Recently, Government of India has taken the initiative for defence and delicensed 53 per cent of the defence items for manufacturing by the private sector and dual-use items having military as well as civilian applications if not specifically mentioned deregulated. FDI cap raised to 49 per cent and beyond 49 per cent wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. The procurement process would be made more efficient, time-bound and predictable so that the industry can plan its investment and R&D well in advance to meet the requirement of our armed forces. Online filing and increase in the validity of the industrial license. Also applied streamlining procedure in case of defence exports”.

Indian defence sector is on the cusp of an inflexion point wherein the future growth will be propelled by indigenous manufacturing both for domestic and global clients. The sector will witness strong growth over the next decade due to its current size, longevity, and competitive advantages. As per FICCI-Centrum report, the market opportunity for Indian companies (PSU + PVT) will grow 7x from $6bn in FY14 to $41bn by FY22. India has some of the basic ingredients (large and relatively low cost (Frugal) engineering talent pool. The comfort of western nations with India from a geo-political perspective) to exploit this

(in $billion)

Harpreet Singh Malhotra CMD, Tiger Logistics India Limited

systems integrators. This will happen as these companies face price pressure in the years ahead as the large arms consumers – the US and the western developed world – seek cut backs on defence spending to improve their financial position and rein in fiscal deficits and debt/GDP ratios. Already a number of JVs have been signed between Indian and foreign players.

Un it

Outsourcing has universally come to be accepted as a value addition process.

Now, no corporate entity does all tasks in-house.

There is today an increasing acceptance of the concept of defence outsourcing of non-core logistic functions.”

Source: International Institute for Strategic Studies

opportunity but it will have to significantly improve on some others (technology, lack of a defence manufacturing ecosystem, etc). Also, the nature of warfare is becoming more software intensive, which plays into the strength of India considering IT sector growth in the past two decades.

Tiger Logistics India Limited is operating in seven major sectors including auto that has new plans to expand its wings into the defence logistics in a broader way. The company has been growing constantly at 19.21 per cent (CAGR) mainly because the company has been focusing on developing and underdeveloped nations. The company further expects a good growth in mid 2018 as the projects have started taking off and major investments are happening in power and solar projects, which would be the major catalyst for growth in international business. The present turnover of the company is `298 crores out of which 15 to 17 percent contribution from automobile sector. The business of the company largely comes from exports which contribute to

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focus India’s defence spends increased from $51.1 billion in 2016 to $52.5 billion in 2017. However, as a percentage of GDP, it is reducing year on year in the last 20 years. ”

R. Shankar CEO, TVS Logistics Service Limited

70 – 80 percent of the business. Giving us the insight about his company, Shankar says, “As a recognised expert in Defence Logistics, TVS Logistics is a strategic partner to the UK Ministry performance of the OFs and DPSUs, Indian defence sector is seeing of Defence (MoD). We manage in excess of 200,000 Nato an increased dependence on external sources.

Stock Numbers across a wide range of equipment including The overall result is low productivity level and slow rate of armored fighting vehicles, construction vehicles, workshop technology absorption given a non corporate organisational spares, clothing, food, fuel, medical equipment, field catering, climate in the OFB and DPSUs. A number of technology pharmaceuticals and general engineering hardware. Our Defence initiatives and agreements have been signed between OFs and Logistics capabilities include global freight management, global DPSUs but the absorption of the acquired technology and strategic purchase, manufacturing support, order management/ retention of skill sets crucial for optimal e-catalog, non-core consumables production have not taken place. The major management, repair/maintenance India has the third largest challenges faced in movement aspects can services, inventory management, be discussed under three major areas. warehousing capabilities, transportation defence force in the Firstly, infrastructural inadequacies, which services, spares distribution and last world and procurement occur due to lack of capacity generation. mile delivery. for an enterprise of this Infrastructure is lacking in certain areas, size, managing storage, thereby creating problems with regard Being an Indian company with an expertise obsolescence and also to the sustainance of volume and traffic in the defence domain, we are exploring to be handled. Secondly, the mismatch opportunities to offer our global best transportation is a between type and the quantum of the practices in defence to the Indian Armed challenging task assets required for transportation vis-à-vis Forces as part of their transformational its availability depending on the demandprojects. Our proprietary IT-based supply gap and lastly, the procedural and maintenance issues. solutions can help reduce the cost of ownership by simplifying the sourcing, procurement, delivery and management of defence Sensitisation of civil administration and coordination regarding commodities and spare parts. Global defence companies are security, road space management, the priority of movement and supporting the ‘Make In India’ indigenisation effort, and TVS availability of parking spaces are also challenging inherent in Logistics is well placed to support these companies in providing movement by road. Same is compounded especially when the world-class procurement, inventory management,and logistics movement has to take place over a number of states and districts. solutions to ensure delivery of services to Indian Defence As far as the road movement is concerned, there is inadequate establishment”. road infrastructure especially in the vicinity of border areas resulting from lack of capital investments, delay in getting CHALLENGES IN DEFENCE LOGISTICS environmental clearances that prevent the construction of roads.

Just like other logistics sector, defence sector also deals with Non-availability of CHTT and short supply of trailers of requisite various challenges. Talking about the difficulties, Malhotra says, dimension for transporting specialised vehicles as required by the “Defence logistics expansion was encouraged in the wake of Army. These factors make the mass mobilisation in operationally challenges of a nascent private sector contribution in defence acceptable period for hinterland formations extremely difficult production until the 1990s. The army is a captive buyer of the especially when it has not been rehearsed. Sensitisation of civil equipment produced by the Ordnance Factories (OFs) and DPSUs administration and coordination regarding security, road space to a large extent. The Army sources 78 percent of its revenue management, the priority of movement and availability of parking requirements from OFs, 11 percent from DPSU’s and the rest from spaces are also challenging inherent in movement by road. Same civil industry and imports. Advance payments to the tune of 85 to is compounded especially when the movement has to take place 95 percent are made before the item is delivered. Given the dismal over a number of states and districts”.

40 CargoConnect - JUly 2018

feature

Factors Impacting the Indian Air Freight Industry

Despite turbulence, Indian air freight forwarders seem buoyant and continue to find cruising altitudes, providing reliable transport for shippers who need to quickly move goods – right from fashionable apparel to critical components. Airfreight forwarders are working hard to manage the obstacles and leverage the opportunities. Many are increasingly offering robust integrated solutions, facilitating end-to-end cargo delivery processes, enabling exporters to focus on their core competencies. The long-term impact of Amazon and e-commerce in general remains top of mind for most airfreight forwarders - UPAMANYU BORAH

42 CargoConnect - JUly 2018

feature Drive Insight Air cargo, though just around 1-2 per cent of the global cargo movement, contributes to around 32-35 per cent by value of cargo shipped. It is critical for industries such as pharmaceuticals, electronics, marine exports, floriculture etc. where shipments are highly time-sensitive. Hence, the development of air cargo requires deep focus. The Indian air cargo industry is a classic case of high potential but low achievement. This is despite the many advantages we enjoy in terms of economic growth, demographics and location. Last few years saw marked improvement in world trade conditions generally, and the resulting demand for manufactured exports and global restocking for retail were major factors contributing to air freight’s growth throughout the year.

Strong consumer confidence and growth in e-commerce and pharmaceutical transportation were other contributing factors.

and other sub-sectors of the industry like airports, air cargo, ground handling, etc.

Six major projects in roads, ports, inland waterways and railways - Bharat Mala, Setu Bharatam, district connectivity, Sagarmala, port-rail connectivity, 106 national waterways development - have been announced by the government, which will directly benefit the air freight industry in future The rising scale of air freight transportation has further encouraged a trend towards outsourcing non-core activities like logistics, warehousing, and associated activities to integrated players which has increased the share of the organised segment.

Market Segments & Forecasts of India’s Air freight market

However, to handle the growing traffic, significant investments need to be made for expanding, modernising and upgrading infrastructure, deploying advanced equipment and technology, and setting up of new storage and transit facilities.

The current modal mix for cargo transportation is sub-optimal and skewed towards roads, which accounts for about 60-65 per cent of the total freight transported. Growth in freight traffic has almost plateaued at 0-1 per cent, with the rail modal share declining to 30 per cent. Air freight contributes a mere 1 per cent in the total cargo movement in India, moving around 35 per cent of the total shipment value.

More sophisticated scheduling and tracking software is prompting shippers to use air freight for emergencies, rather than as the norm. To be sure, implementation remains spotty. That creates challenges for freight forwarders, who need to integrate with steamship lines, airlines, and other partners, some of whom continue to work with more manual systems.

According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in air transport (including air freight) between April 2000 and December 2017 stood at US$ 1,608.51 million.

Policies and Risks As India’s air cargo market is growing, there are new policies and strategies ensuring for the growth in the market. a. ‘Open skies’, an international policy that calls for the liberalisation of rules and regulations in the aviation industry, especially air cargo industry has greater impact of this policy. b. Airport modernisation plans combined with encouragement of Greenfield airport development. c. Liberalization of the international sector with private players permitted to operate overseas, albeit with the 5/20 restriction i.e. 5years of domestic operation and a fleet of 20 aircraft. d. Greater access of foreign carriers and opening up of international routes at regional airports. e. Increased foreign direct investment limits for airlines

Growth drivers and inhibitors Slower growth in international trade likely will continue to dog India’s airfreight industry.

One of the most significant factors impacting the India’s as well as the global airfreight forwarding market is shippers’ growing determination to find the least expensive way to move their goods and still hit deadlines.

Even the transportation of perishable cargo, once an exclusive domain for the global air cargo industry, continues to evolve in light of a changing regulatory environment and continued pressure to find a more cost-effective way to transport these goods while maintaining high quality.

To combat falling revenues but take advantage of increasing traffic, the industry should plan to focus on carrying the cargo it carries best, such as microelectronics, pharmaceuticals and medical devices. Perhaps by specialising in certain types of cargo, the air freight industry can capitalise on the increase in traffic and JUly 2018 - CargoConnect

43

feature improve profitability. Supply chains are increasingly global, and some components will always move by air. Companies that need to move goods quickly, such as those operating in the “fast fashion” market or transporting critical components, rely on air transport. Other factors such as rapid development of businesses, building of cargo hubs, and rapid growth of the e-commerce business model is expected to drive the prospects for growth in this market segment.

In order to compete, India’s air freight industry will need to continue streamlining its operations by implementing new tech, consolidating routes and utilising valuable relationships with freight forwarders.

According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in air transport (including air freight) between April 2000 and December 2017 stood at US$ 1,608.51 million A positive, T A Varghese, President, ACAAI says, “Manufacturing activities and exports are likely to pick up during this period, which will boost freight forwarding.

Department of Economic Affairs, Ministry of Finance has accorded infrastructure status to the logistics sector in November 2017. This is a very positive development, as it will enable this sector to raise funds at competitive rates from lending institutions, which will go a long way in reducing its transaction costs. Currently, the logistics transaction costs in India is around 14 per cent of GDP, whereas the corresponding cost in the major global economies is between 6 to 8 per cent of GDP. The increase in the cargo capacity of the airlines which are operating to/from India is also a positive development for the freight forwarding industry. However, the infrastructure limitations and constraints at the air cargo complexes require urgent remedy for the sector to remain competitive with the major exporting countries.”

Changing Trends Trends in the global airline industry also impact the Indian airfreight forwarding market. One is the shrinking number of wide-body planes. Large-size wide-body airplanes accounted for 11 percent of the in-service fleet in 2016, down from 36 per cent in 1995, according to Boeing’s Current Market Outlook, 2016-2035.

Many freight forwarders are fighting for space in the same narrow-body planes. For instance, rolls of carpet that would fit easily on wide-body passenger planes

44 CargoConnect - JUNE JUly 2018 2018

now move via cargo planes. That’s a concern, as most airlines’ flight routes are determined by passengers, rather than cargo. In addition, when shipping a large volume of goods, keeping all units together is preferable. That becomes more difficult on narrowbody planes.

Airline consolidation also impacts the Indian airfreight forwarding industry, as it usually leads to fewer routes. That cuts cargo space and has prompted some shippers and airfreight forwarders to rely on multiple carriers and stock inventory in different places.

Moreover, the rising scale of freight transportation has further encouraged a trend towards outsourcing non-core activities like logistics, warehousing, and associated activities to integrated players which has increased the share of the organised segment.

Talking about trends, Varghese adds, “Apart from the shrinking number of wide-body planes, there have been no particular trends or major changes in the Indian airline industry in the recent past which has impacted the Indian freight forwarding market. However, the National Civil Aviation Policy which was released by Government of India in 2016 includes several major initiatives which are likely to be major game changers for air freight in the near and medium term.

This policy includes measures to reduce dwell time of imports and exports at Indian airports, review of Customs procedures which should lead to the paperless processing of air cargo, review and simplification of security procedures, the phased implementation of Advance Cargo Information (ACI) system, single window clearance facility, 24X7 customs operations at airports, setting up of Free Trade Warehousing Zones (FTWZs) and Air Freight Stations (AFSs), promotion of transshipment at Indian airports and dedicated cargo airports.”

Real-time Challenges The key challenges faced by the air cargo industry include policy apathy, procedural bottlenecks, poor infrastructure, costly finance and lack of skilled manpower.

Air cargo has also not been able to grow at the same pace as some of the other transport modes, primarily marine cargo. The five year CAGR of air-cargo at 11 per cent is lower than the growth rate of India’s overall exports and imports which grew by around 15 per cent and 18 per cent over the same period.

In addition, the trans-shipment cargo which constitutes as high as 60-70 per cent of total volumes handled by some of leading airports tends to be negligible for Indian airports. A significant potential lies for the Indian airports to become transshipment hub. Given its geographic location, and improving

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feature The National Civil Aviation Policy released

by Govt. of India includes several major initiatives for air cargo which are likely to be major game changers. It includes measures for the holistic development of the Indian aviation industry.�

T A Varghese President, ACAAI relation with SAARC countries, India is well placed to capitalise on this opportunity.

A much higher growth rate can be achieved if a concerted effort is made to unlock the true potential of air cargo through improved infrastructure, higher operational efficiencies and simplified procedures and regulations.

The average freight load factor during the last 5 years was around 62 per cent, reflecting significant unused capacity.

ing logistics infrastructure. However, it is true that such projects are time-intensive and by the time these are completed, the freight forwarding agents and companies succumb to the deficiency of infrastructure.

The major concern is shortage of connectivity to airports, roadways, terminals, freight stations, etc.

Pramod Menon - VP, Atlas Aviation India Pvt Ltd has a lot to add to it.

He says, “The problems faced by Indian Forwarders are many. This is because of Bureaucracy starting from Shippers, Truckers, Customs, Custodians, Airlines and Consignee.

Every small mistake is pointed at the Forwarders who have been trying to provide the best possible support to the industry.

d. Global Business Scenario- India’s export-import trade has taken an

The actual problems start with shipper demanding unrealistic credit terms from forwarders from 60-90 days. As per IATA regulations, the payment terms are 30 days agreed between the Agents and the Airlines.

Due to competition from various forwarders bidding for the same shipment from the shipper, the shipper takes advantage on the credit part. Finally, the forwarders have to give in to the demands and to commit a longer credit term has to request the banks for OD- Over Draft Facility which is given by the banks

impact due to weakened demand in key developed markets such as that of the U.S and Europe.

Because of economic challenges and political instability in European Union (aggravated by Brexit), has somehow also affected the logistics front of India. The freight forwarding business has thus become fragile in a way that hardships in emerging markets has slumped the trade.

at a particular interest rate agreed between the Banker and the IATA agent. By the time the IATA agent gets the payment from the exporter/shipper, OD and the interest paid by the Indian IATA forwarders is more than the profit they make on the shipment. The shipper/ exporter keeps on exporting the shipments through the same forwarder and automatically the business shifts from Forwarder to Banker as the shipper has various choices to move his shipments. The Shipper gets the payment from

Challenges faced by players in Indian freight forwarding market a. Inadequate Use of TechnologyMany Indian freight forwarding companies spend on latest software solutions in their pursuit to improve operations. Something like webtracking feature essentially helps these companies to have better visibility for orders and shipment. However, just investing into these systems is not enough, one needs to keep up with the changing intelligence and technology, train staff to operate these tools or analyze it to the bestwhich is where the problem lies. b. Excise Policies and Customs- Differences in excise policies and customs harshly affect both importers and exporters. If this can be improved, then function of freight forwarding agents will ease down.

Due to stringent regulations at various stages of cargo movements, time and money are wasted, and greater are the complaints from traders, customers, etc. c. Lack of Infrastructure- Even in the Union Budget 2017-18, a lot many initiatives were introduced for hon-

46 CargoConnect - JUly 2018

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feature Problems faced by Indian Forwarders are many. This is because of Bureaucracy starting

from

Shippers,

Truckers,

Customs,

Custodians, Airlines and Consignee. But, instead, every small mistake is pointed out at the Forwarders.”

Pramod Menon Vice President, Atlas Aviation India Pvt Ltd consignee on time either through Bankers or before their shipment is dispatched to the consignee. But if you take the history of Indian freight forwarding market, the forwarders payments are always delayed Secondly, the sad thing in Indian freight forwarding market is that every second staff is trying to be an entrepreneur. Instead of learning and studying the biz and stabilising the industry, these new people go for their own biz without any proper financial planning and utilises various IATA services, creating debts for themselves as well as for the IATA Agents Thirdly, over capacity in Indian Markets has resulted in lower yield to the Airlines as well as Freight Forwarders. The only people enjoying this benefit are the Exporters. To streamline the yield, Airlines and forwarders should come together not as competitors but as partners and over capacity needs to be reduced to increase the yields. For Middle East Carriers coming into India, fuel is the cheapest and they have that advantage in any market and consolidate entire worldwide destined cargo in Middle East. Other carriers, mainly Indian carriers have the most disadvantages due to high fuel tax and no support from the government Lastly, poor infrastructure at cargo complexes, which is still not ready to handle excessive freight, monsoon related issues, uncooperative government officials (customs), and, corruption- the root of everything.”

New Developments While the Indian airfreight forwarding market faces headwinds, it also can look to several more promising trends.

Increasingly complicated supply chains, with more materials and components from overseas, means air freight likely will continue to play a role in companies’ supply chains.

48 CargoConnect - JUly 2018

The growth of “fast fashion,” or the rapid turnover of apparel inventory so retailers can feature new styles, may prompt more shippers to move to air freight in order to ensure their goods quickly move to store shelves. Even five days in transit is no longer fast enough.

Varghese anticipates, “The e-commerce sector has its own operating model which has not synchronised with the air freight sector. The delivery model of this sector is entirely different

Africa was always the major and best yield generating sector for Indian Pharmaceuticals, Temperature Control Shipments, Apparel, Imitation Jewellery, Machinery Spares, DGR Shipments, Project shipments, etc from the air freight sector and it is unlikely that their model will change in the near future.

The freight forwarding sector is extremely competitive in India and only the players with sound business fundamentals and policies will be able to sustain themselves.”

Many mission-critical components and parts, such as those needed to keep data centers humming or medical equipment operational, will continue to move as rapidly as possible. For most, that means air transport.

New phones, watches, tablets, and other devices that generate high consumer excitement and urgent demand also tend to boost the airfreight market.

When consumers are lining up to be first in line for a product, shippers often decide to move it via air.

Given the forces buffeting the industry, it’s clear the freight forwarding business isn’t for the faint of heart. Industry leaders have robust systems that are difficult to duplicate. They’re also used to preparing for anything. As the saying goes - “People who ship boxes, always have to think outside the box.”

Futuristic Solutions Looking ahead, forecasts are mixed, though the overall outlook of the air freight industry in India seems to be bright. However, to handle the growing traffic, significant investments need to be made for expanding, modernising and upgrading infrastructure, deploying advanced equipment and technology, and setting up of new storage and transit facilities.

“Increase in manufacturing activities, government policies such as the “Make In India” programme and the estimated growth of the economy between 7 - 7.2 per cent during the next few quarters bodes well for the Indian freight forwarding market,” Varghese shares.

An integrated approach that streamlines the supply chain process in terms of route, customs, and cost shall prove to be effective. Steps must be taken to enhance the training models for IT professionals involved in logistics and freight forwarding sector. Selfassessment and EDI initiatives must be strengthened to clear any roadblocks.

Though logistics business is fast growing, adapting to newer technology and transportation networks will ease the operations for cargos and freight forwarding agents involved. Using appropriate balance sheet potency to obtain niche players in vital locations and routes will be crucial objective.

Another key factor will be to encourage better understanding of customers; needs and then respond to those with advanced logistics solutions.

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feature

India’s Apparel Supply Chain– present and future outlook The Indian apparel industry is subject to constant dynamism. Companies need to constantly stay updated in order to understand the latest fashion trends and meet customer’s demands. Today, fast delivery of apparels has become an essential factor to keep the fashion industry moving.

Also, fashion houses have the backbone of apparel logistics sector to keep the industry more spirited. Additionally, Indian exports of apparels have immense potential for its further growth.

In such a scenario, Porni Banerjee discusses about the contribution, growth and challenges prominent in the apparels logistics segment as far its export is concerned

50 CargoConnect - JUly 2018

feature

T

o stay competitive in the market, companies need to quickly analyse their c u s t o me r ’s ne e d s a n d demands and make them their loyal ones for the future, build up competence in consumer target groups, sustainability and marketing channel digitalisation. Apparel industry is amongst the largest in the world with a huge manufacturing base and large raw material pool. It is a major contributor to our economy in the domestic and exports markets.

Growth potential of Indian apparel exports Interestingly, garment exports from India will touch US$ 185 billion by the year 2024-25. India has a share of approximately 5 per cent of the global textile and apparel trade. Additionally, India is one of the largest exporters of yarn in the global market. Growth in apparel exports of certain items was high in case of handicrafts (17 per cent), carpets (15 per cent) and readymade garments (12 per cent).

Countries where Indian apparels are majorly exported include the United States of America, the United Kingdom, United Arab Emirates and Germany. Men’s or boy’s suits, ensembles, jackets, trousers; women’s or girl’s suits, ensembles, blazers, dresses, skirts, babies’ garments and clothing accessories, T-shirts and singlets are the major products that are exported.

A r v i nd Si n ha , Im med iate Pa st President, The Textile Association of India is certain about the fact that, “the global apparel market size is expected to reach US$ 2.6 trillion in 2025 growing by a projected rate of 4 per cent. The major growth drivers of the global apparel market will be the developing economies, mainly China & India, both growing in double digits.

China will become the biggest apparel market adding more than US$ 378 billion in market size by 2025 while India will be the second most attractive apparel market adding around US$ 121

billion by 2025.

Export Promotion Council said.

“A large and growing domestic demand coupled with increasing spending power of people in these two countries will result in the combined addition of around US$ 500 billion. in the global apparel market size by 2025. The combined apparel market size of China and India i.e. US$ 795 billion. is expected to exceed combined market size of EU and USA i.e. US$ 775 billion by 2025”.

The decline was mainly on account of sharp reductions in the effective drawbacks and rebate on state levies, he continued.

Under drawback, exporters get the reimbursement of duties they have paid on the imported items used in the finished goods.

In the years to come, India’s apparel exports to developed markets are expected to increase considerably.

Exports of apparel from India are likely to reach US$ 82 billion by 2021.

Buchasia further added, “the drawback mecha n ism, pr ior to Good s a nd Services Tax, reimbursed both the customs duties and domestic taxes like central excise and service tax. But after GST, the drawback rates are now only reimbursing the customs duties.

For other duties, the argument is that those would be available as part of the credit chain”.

The below table shows the Major exports of Ready made garments from India:

Sinha elucidates the fact that in the first year of implementation of the goods and services tax (GST), India’s apparel

Haresh Thadani, Director, Seaworld Group, says that, “we perceive a growth potential of 7 to 8 per cent in future”.

Market

Export

% share in total exports

USA (Q)

11443

29.46

Germany (Q)

4629

11.9

UK (Q)

3568

9.19

France (Q)

2463

6.34

Benelux (Q)

1798

4.63

Impact of GST on Indian apparel exports Appa rel ex por ters a re losi ng competitiveness by around 9 per cent in export markets after the implementation of GST and want a higher reimbursement of central and state levies to stall the continuing decline in exports.

“The demand for a higher reimbursement of central and state levies has come after a 39 per cent decline of apparel exports for October.

For July-October, there has been a drastic fall of 5.94 per cent in overall exports of apparels from India”, Anil Buchasia, Former Chairman, Apparel

or readymade garment (RMG) exports have declined by nearly four per cent in dollar terms in FY18. In rupee terms, the decline is higher at 7.6 per cent.

RMG exports fell from $17.4 billion in FY17 to $16.71 billion in FY18, a 3.8 per cent decline.

Fall in RMG exports happened due to continual month-on-month (MoM) decline in dollar terms, beginning from a 39.30 per cent fall in October 2017 and ending at 17.8 per cent in March 2018.

In the latter month alone, India’s RMG export was $1.49 billion, against $1.81 billion for the corresponding month last year.

JUly 2018 - CargoConnect

51

feature “The global apparel market size is expected to reach US$ 2.6 trillion in 2025 growing by a projected rate of 4 per cent. The major growth drivers of the global apparel market will be the developing economies, mainly China & India, both growing in double digits.”

Arvind Sinha Immediate Past President, The Textile Association of India

Initiatives by Indian government Some export promotion policies were introduced by the union government for the apparel sector. They are as follows: Some speci f ic tech n ica l te x t i le products are covered under Focus Product Scheme. Under this scheme, exports of the commodities are entitled for duty credit scrip, which is equal to 2 per cent of freight on board (FOB) value of exports.

Under the Market Access Initiative (MAI), scheme, financial support is provided to activities related to export promotion on focus countries and focus product countries.

Sinha explains, Textiles exports from India are likely to get a boost with the increase in the special package for the financial year 2018-19.

Finance Minister Arun Jaitley in the Union Budget 2018-19 raised special package by 19 per cent to `71.48 billion for apparel sector to boost exports. In 2016, the government had announced a special package of `60 billion for the same purpose”.

But a big question remains that a r e s uc h gove r n me nt p ol ic ie s suitable enough to bring a growth in the export sector? Arvind Sinha, being optimistic, explains, “Yes. Government has given very favourable

Textiles and apparel exports from India (US$ billion) 100 80 60 40 20 0

CAGR 12.06% 82 40 FY16

The central government has taken the initiative for the expansion of 24/7 customs clearance facility at 13 airports and 14 sea ports. This would result in faster clearance of import and export cargo. Arvind Sinha says, “The Budget 2018 is a boost for textiles exports with Rs 71.48-bn special package.

52 CargoConnect - JUly 2018

19 FY17(P)

2021E

policies and government is ready to listen and do the needful as and when there are issues related to Garment industries. However, the Indian domestic market is doing well; exporters are suffering because of tremendous competition from Bangladesh, Pakistan, Myanmar, Vietnam, Sri Lanka, etc.

These countries are enjoying cheap finances and support from large markets. India is also facing a problem of low pr o duct iv it y. The r e for e ma nu fact urers have to upg rade themselves to improve productivity and production techniques”.

Furthermore, Thadani highlights the fact that, “the government has taken multiple measures to facilitate exports - from improving port infrastructure to ease of customs procedure”.

Is it enough?

Sinha claims that, “Government has given very favourable policies and it is ready to listen and do the needful as and when there are issues related to garment industries. Although, the Indian domestic market is doing well, exporters are suffering because of tremendous competition from Bangladesh, Pakistan, Myanmar, Viet na m , Sr i L a n k a, etc. These countries are enjoying cheap finances and support from large markets.

India is also facing a problem of low productivity. Therefore, manufacturers h ave to upg rad e t he m se lve s to improve productivity and production techniques.”

On the other hand, H.K.L Magu, Chairman, Apparel Export P r om ot ion C ou nc i l q uote s a n example and highlights a fact that, “If an Indian exporter ships goods to the US east coast it does take around 24 days, whereas from our neighbouring countries like Bangladesh and China, it just takes 14 days to reach to the US east coast. We do not have that kind of ports where mother vessels

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feature “It is clear that technology and logistics strategies are so impactful to maintain competitive edge. The urgent need of hour is innovation in apparel logistics which can ensure quick, efficient and flexible processes. Optimum degree of automation will certainly help garment manufacturers to deal with a number of issues of supply.”

H.K.L Magu Chairman, Apparel Export Promotion Council

position in 2012 to 6th position in 2013.

India’s apparel exports, was to the tune of US$ 15.7 billion in 2013, as against US$ 12.9 billion in 2012. Among the top five global clothing suppliers except for the Vietnam; India’s Apparel Exports growth was highest registering 21.8 per cent growth during the year 2013.

Apparel exports from India accounts for 3.7 per cent of share in the global readymade garment exports.

Total global textiles exports are to the tune of US$ 772 billion with India commanding 5.2 per cent of the share.

India's textile trade (US$ billion) 30.0

India’s share in Global Textiles has increased by 17.5 per cent in the year 2013 compared to the previous year.

Currently, India’s textiles exports to the world are US$ 40.2 billion. This

54 CargoConnect - JUly 2018

19.1

15.0

17.6

36.63

36.75

22.4

20.0

21.2

22.1

25.0

5.81 FY17

5.6 FY16

3.04 FY15

FY14

2.7

5.4 FY13

FY12

FY11

3.4 FY10

3.5 FY09

3.3 FY08

2.8 FY07

0.0

2.7

5.0

5.2

10.0

FY06

“Despite having slow recovery in USA and EU, our biggest traditional markets as well as prevailing global slowdown coupled with sustained cost of inflationary inputs, we made the best possible efforts to reach here. The gover n ment pol icy of diversification of market and product base has helped us and we ventured into the newer markets, which paid huge dividends. We also leveraged our raw materia l strengths and followed sustained better compliance practices which attracted the buyers and international brands across globe to source from India.”

33.05

33.3

35.0

37.66

37.58

40.0

27.8

Export business of textiles and apparels in India: How can it transcend?

Sinha highlights the fact that, “India has improved its ranking as per the recent data released by ‘UN Comtrade’ in Global Textiles as well as Apparel Exports. In Global Textiles Exports, India now stands at second position beating its competitors like Italy, Germany and Bangladesh, with China still retaining its top position.

growth is phenomenal as the global textiles growth rate is only 4.7 per cent compared to India as it has registered the growth of 23 per cent beating China and Bangladesh which has registered 11.4 per cent and 15.4 per cent, respectively.

4.2

are present, we have to transship our cargo through Colombo which adds extra cost as well. An appeal should be made to Ministry of Civil Aviation and Ministry of Shipping in order to have such an infrastructure which facilitates us to transport our cargo within 14 days to the US east coast”.

Exports

This growth in the increase in share of the Textiles Exports from India is largely attributed to the growth in the Apparel and Clothing sector as it accounts for the almost 43 per cent of the share alone. The Apparel Exports ranking has also improved from 8th

It is very difficult to imagine that India will become number 1 garment producers globally. China continues to be on top and it is a very distant number 2. Apart from this, China has very seriously developed Pakistan, Vietnam, Indonesia and now Africa

feature as large manufacturing hubs. Sri Lanka, Bangladesh are controlled by Chinese and all the fabric suppliers also controlled by them. China is spreading its wings very systematically and reach i ng to each and ever y country, developing garment business,

situations are not encouraging LSPs to explore more and more crossborder possibilities. E-commerce trade cross-border has also not taken up. However, now Walmart and few more American companies coming to India will improve these situations.

providing employments, financing their needs, etc. Recent development of North Korea, in case North Korea becomes a friendly territory, Chinese and South Korean investments will shift there and it will be a blessing for the entire Far East. Further, Iran equations are not favourable with America which will give big advantage to China than India. Therefore, we should not focus on becoming number 1. Rather, we should attempt to multiply our exporters by two to three times”.

Indian government has announced big conce ssion for i mpor t i ng ga r me nt s f rom Ba ng l ad e sh a nd Sri Lanka”.

LSPs preparing themselves to expand cross-border trade in future The Indian government has decided to take immediate steps to make trade procedures more efficient so as to facilitate movement of goods and improve India’s ranking in ease of doing business. However, few challenges in trade regulations still prevail.

A c c o r d i n g t o Si n h a , “ v a r i o u s restr ictions by the Gover n ment of Ind ia and un friend ly borders

56 CargoConnect - JUly 2018

The central government has taken the initiative for the expansion of 24/7 customs clearance facility at 13 airports and 14 sea ports. This would result in faster clearance of import and export cargo Thadani says, “the only cross border movement is textiles from India to Bangladesh mainly by road”.

Technology for speedy export of apparels Magu opines that, “All the fashion houses want to keep their supply chain speedy and flexible. Hence, staying at the top of the supply chain is essential for the ultimate

success of any fashion house. With the unpredictability the industry functions, it is essential to have a trustworthy logistics company by our side to make sure all our products reach to our customers in the given timeline. It is clear that technology and logistics strategies are impactful to maintain competitive edge. The urgent need of hour is innovation in apparel logistics which can ensure quick, efficient and flexible processes.

Optimum degree of automation will certainly help garment manufacturers to deal with a number of issues of supply. Manufacturers now need products and solutions tailored as per their individual needs and scalability.

And with the growth in scalability, t he sector w i l l become f ur t her competitive than ever. So, the need to deliver trending products quickly and efficiently will be a game changer. IT supported logistics operations are of utmost significance. Redefined pattern of global consumptions and pace of fashion have resulted in a huge struggle to meet the international delivery timeliness. In future, we are hopeful to see more investment of imperative thoughts and efforts in retail and logistics technology to improve apparel businesses especially those which are export oriented as per the new buying behaviors.”

According to Sinha, “there is no choice but to have good technology. Current Indian garment manufacturing system productivity levels are low and workers skills should be improved.

Factories in USA now are fully automatic and use of artificial intelligence (AI) is very important. We have to improve our productivity, delivery times, variety, etc”.

Various initiatives have been taken by the government to boost the export.

However, technological advancements, infrastructural development and crossborder trade are the driving factors which need to be focused more upon so as to bring further growth in the export sector and ease operations in the logistics industry for on-time delivery of goods.

Interview

“We are all set to play our part in the growth story of Indian e-commerce” Allcargo Logistics and Industrial Parks Pvt Ltd (ALIPPL) is a part of India’s largest Integrated Logistics Solutions provider, Allcargo Logistics. ALIPPL offers state-ofthe-art warehousing and industrial realestate solutions and is striving to expand its nationwide warehousing footprint to 15 million sq. ft. by the year 2020. Presently, 14 industrial parks which are located at different strategic locations of the country are in the developmental phase. ALIPPL is under the able leadership of Sandeep Chadha who is the CEO of the company and has proven track record of 17+ years of surpassing ambitious business goals and delivering results. In an exclusive interview to Gaurav Dubey, he shares his views on burgeoning growth of e-commerce market and shifting of growth centre of logistics to tier II and tier III cities

58 CargoConnect - JUly 2018

1)

How are you leveraging the burgeoning growth rate of the e-commerce market?

Well, there is no denying the fact that e-commerce is the way forward. In the wake of consolidation at the industry level, especially the interest shown by the global leaders of e-commerce in India’s growth story, it becomes incumbent on players like us to serve the burgeoning demand to the best of our abilities.

At the moment the focus of the players is to consolidate the warehousing space around the big metros. A hub and spoke model is being adapted by the industry. This model not only serves the immediate demand, it also acts as an enabler in improving the overall throughput. Our immediate focus is the key Indian metros but in the medium to long term we have our plans ready for Tier-II and Tier-III cities.

2) Does your company have enough infrastructure in Tier II and Tier III cities to cater your clients’ requirements?

Being a leader in India’s logistics realm, we are glad to inform that we have a plan ready to meet the demand emanating from India’s emerging cities.

Be it Guwahati, Kolkata, Jaipur, Indore, Nagpur, Anantpur, Coimbatore, Pune, Ahmedabad - we have a plan for each of these cities. Being a leading player in the category, presently we have our land bank in Indore, Nagpur and Goa and we always look forward to expanding to other emerging destinations of the country. Being an end to end player with close to 30 years of experience, scaling up the infrastructure is our forte. So, we can say that we are ready to play our part in India’s e-commerce growth story, in key metros as well as in the emerging hubs.

3)

How E-way bill will contribute in making logistics easier, cheaper and efficient?

I would say, it will help in removing the bottlenecks from the system. The idea behind E-Way bill is free and smoother movements of goods while

helping the same in implementing a uniform tax regime and curbing the tax evasion. A digital entry will ensure faster movements and less stoppage time at the toll booths. At the same time, it will also help in matching tax records which was hitherto not possible. All in all, it’s the next step in GST to make it simpler for all the stakeholders.

4)

H o w y o u a re p o s i t i o n i n g warehouses in the smaller cities in order to cut cost and provide faster services to clients?

Well, at the moment our focus is to tap the markets around established logistics centers. Being a new entity but with a long term plan, we would like to have some legacy in the pipelines in terms of serving clients across the industries.

Our immediate focus is the key Indian metros but in the medium to long term we have our plans ready for Tier-II AND Tier-III cities. We have our land bank in several small cities and are looking forward for expansion to other emerging destinations as well Going forward, smaller but promising cities are going to claim a fair share of the demand. In this light, we would like to position ourselves as a holistic and comprehensive player with enough executional and development potential to scale up the business in smaller but upcoming logistics destinations.

5) What is your take on the concept of Warehouse Cobots– collaborative robots that are designed to work alongside human workers in warehouses?

I would say that incumbents in the

industry need to pay heed to the technological advancements while planning a warehousing facility.

A lot is happening in the areas of robotics & AI. The change in same has to be incorporated in a phased manner. There is enough buzz going around that it will remove human intervention and there is a fear of mass unemployment as well. Most of it is misunderstood the way computers were feared initially.

Initially, there has to be a mid-way.

Cobots in this regard should help in having a compatible platform and further from this learning we can have the same scaled up to bigger areas.

We should be delighted that there is a technological platform that can work alongside humans and bring much needed efficiency in the system.

6)

Being one of the giant global logistics companies, which goals you missed to achieve in the year 2017?

And, what were the possible reasons behind it?

Being a leading logistic conglomerate, we have our own set of goals and standards which we follow in a timely manner. As a diversified group you win some and there are areas that keeps demanding more of your focus and resources. It’s not like we have missed some goals but there are always some things on which we need to improve upon.

Being a newly launched vertical, we at ALIPP (Allcargo Logistics & Industrial Parks Pvt Ltd.) would like to look at things afresh. We have our land bank as big as it gets. Our first priority is to roll out our warehousing solutions in key Indian markets. I am glad to share that we have covered most of our bases and in a very short period of time, we are likely to emerge as a leading force to reckon with as far as cutting edge, Grade A warehousing is concerned. We are all set to deliver 15 million square feet of warehousing spaces by 2022. We are committed to our various stakeholders and we would keep learning and evolving with passage of time.

JUly 2018 - CargoConnect

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Interview

Crafting new standards in Safety, Quality and Security Established in 1935, Hörmann has emerged as a pioneer in manufacturing high performance doors across the world and is the No. 1 door brand in Europe. Today, Hörmann’s product range includes rolling shutters, folding, fire, and high-speed doors, door operators and controls, as well as loading technology systems, fire and smoketight door assemblies, entrance and internal doors. Jagdish Anne, Vice President – Sales, Shakti Hörmann, in a conversation with Upamanyu Borah, annotates on the company’s journey to becoming a leading global brand, its line of products and their uses, global alliances, and its offerings to the Indian market

60 CargoConnect - JUly 2018

1) Hörmann has gained significant market share in entrance automation industry. How did you manage this commendable growth?

Hörmann is a brand in itself. Being Europe’s no.1 has its own advantages. More than 15 million doors have been produced and delivered worldwide since its foundation back in 1935. When Hörmann decided to enter India, it came with a pedigree of having a good product range. Shakti Met Dor a leading Indian door manufacturer since 1994 has earned a reputation for itself before becoming a subsidiary of Hormann in 2012. The whole concept of selling a product based on a consultative approach has helped Hörmann to gain a good market share.

It’s all about giving a completely visible solution to customers in the entrance automation industry which we feel we are doing dedicatedly, and thus it helps in our overall development.

2) What is the track record of Hörmann in terms of overall performance?

Safety, quality and security are the three hallmarks of every Hörmann product that is manufactured. There is no compromise on these three factors. Having said that, we have never had any major drawbacks as far as the products are concerned or been used in a country. In fact, every Hörmann product has been pretty well appreciated because of the safety and quality factors.

And, we would never want to compromise on that going forward even at the expense of reducing of costs.

Moreover, our world-class products are backed by a service paradigm that has now become an industry benchmark. Post installation of the product by Hörmann’s authorised installers, regular annual maintenance programs (AMC) ensure that products are always kept in the best of working conditions so that they do not hinder or hamper customer operations.

3) Tell us about Hörmann’s initiatives in entrance automation industry.

Our vision is to introduce products and services that enrich customer experiences in the residential, commercial and industrial spaces. Over the years, we have built our presence across diverse markets to become a leading global

brand with more than 15 million doors delivered worldwide through our 65 sales subsidiaries, and hundreds of authorised dealers. With 28 specialised factories in Europe, North America and Asia, and powered by a 6000-strong workforce, we work relentlessly to create world-class products that ensure optimum customer satisfaction levels.

We have a pan-India presence with sales and marketing offices spread across all major metros. Our ISO 9001-2015 certified manufacturing facility near Hyderabad, Telangana, is equipped to produce over 200,000 custom-made doors, door frames and over 10,000 Industrial doors per annum. All our doors come with varied options in ironmongery, sizes and finishes, incorporating the latest global standards in safety and security.

Over the years, we have built our presence across diverse markets to become a leading global brand with more than 15 million doors delivered worldwide

4)

Can you brief us more about Hörmann’s top line product range catering to demands of the industry?

Furthermore, we offer an exclusive range of residential doors such as Safety Entrance System, Rail & Stile Series, high performance Garage Doors, and automatic Door Operators.

5) What is the market potential for Hörmann’s products in India? How do you plan to position these products?

Well, India is warming up to the requirements of the products that Hörmann is supplying to the Indian market. Going forward, I see this market booming and growing. For the sheer reason that at one point in time, it was the multinational corporations who were interested in buying our products, but off-late we have seen that a lot of Indian companies embracing the products. We see that the market potential is growing exponentially and there is humongous scope for a lot more players to come into this market.

Today, this is an unorganised market so as to speak of, which I presume should become more organised.

6) Brief us about Hormann’s global

reach and what are the global alliances that have been made in order to out-front the competition.

Hörmann is a multi-national corporation.

We have close to 28 manufacturing units across the globe. We operate in around 65 countries and we are always on the lookout for good acquisitions. Recently, we acquired a unit in France and also in Italy, which is into the manufacturing of perimeter protection like Hydraulic Bollards, Tyre Killers, Road Blockers, etc.

These are products which we feel will be of good value to end customers in India also.

We have a small niche product range which caters to the top line, and at the same time there is a huge product range which caters to the majority of the customers.

7) How do you foresee the future of India related to your industry?

Some of the top line products falling in the industrial range are: High-Speed Doors, Rolling Shutters and Grilles, Industrial Sectional Doors, and Dock Levellers. We have another set of perimeter protection products like Hydraulic Bollards in the industrial as well as commercial range.

We have the top line series for entrance doors such as ThermoPro Entrance Doors, and also the Aluminium range of Entrance Doors. Recently, we have launched our latest range of fully glazed Fire-rated Doors tested to international standards.

The industry is still at a nascent stage in India. Our neighbour, China has reached that level and is seen as part of the developed cliché. Although we are one of the fastest growing economies, we have failed to deliver on that promise. But, I definitely feel that the potential exists and is there. Also, with the new ‘rights of persons with disabilities bill 2016’ passed by the Government of India, stress has been given to ensure accessibility in public buildings (both Government and Private) and Shakti Hörmann is geared towards serving this cause.

JUly 2018 - CargoConnect

61

GUEST COLUMN

Network Optimisation key to supply chain cost and efficiency inventory level.While at operational level focus remain on operating efficiency.

B

Vikash Khatri

usinesses are becoming competitive day by day. New products, new channel, new geographies, new legislations, new entrant in market, fast changing consumer habits are making overall ecosystem more complex. In such a competitive and complex world managing efficient supply chain is not easy. Supply chain leaders are always under pressure of reducing cost and improving efficiency. In such a scenario Supply chain Network optimisation is an effective modelling tool to reduce overall supply chain cost and improve service levels. Network optimisation delivers holistic, strategic and quantified view of overall supply chain of the organisation.

For a successful supply chain, first and foremost objective is its sync with business strategy. A gap between both is always harmful in long term. Which means the sole objective of network optimisation is not only network cost reduction, instead objective can be defined as how network can be fully leveraged for achieving business objectives. One of the objectives in a network optimisation remains cost minimisation, but it always has a tradeoff with service levels.

Similar to other management decisions, supply chain network decisions are also at three levels: Strategic, Tactical and Operational. At strategic level activities and decisions having longer time horizon and linked to structural decisions are addressed.Which may attract high investment or structural change like what should be facility location and size.

At tactical level activities are related to cost structure and operating policies like which market should be served from which facility or what should be

62 CargoConnect - JUly 2018

A Network optimisation exercise provide output in quantitative terms which enables informed and strategic decision making on following parameters: • Source location • Distribution center / warehouse locations • Distribution center / warehouse size and capacity • Inventory level • Transportation cost • Customer service level • Overall cost of supply chain Steps in Network optimisation: Usually network optimisation exercise follow i. Data gathering & as is assessment: The process of any network optimisation start with detailed data collection and information gathering about the existing network of supply chain. Usually collected data exist in unstructured form and it needs cleansing of data. Apart from data existing operational processes, service framework and operational strategies are analysed for detailed understanding of supply chain network. ii. Base lining: Second step in the network optimisation is base line modelling. In base line specific assumptions are finalised and cost models are developed for exciting network. The output of cost model must match with the actual cost of network. If actual cost and baseline model cost are significantly different, than the assumption of base line models are not appropriate. Base line model provide a framework against which cost and benefits of various scenarios are evaluated. iii. As is optimisation: As is optimisation provide the scope of efficiency improvement or cost saving, without doing any structural changes. As is

optimisation exercise leads to low hanging fruits, where improvement can take place within no time only through minor changes like connectivity or vehicle configuration or product mix etc. iv. Scenario building: This step involves development of alternatives and operating methods. The alternatives can be based on future requirements, demand clusters, customer service inputs, statutory compliance or number/location of sites, etc. v. Scenario analysis: Actual simulation of various scenariosare run in this step for present volume and forecasted volume to determine the cost and service level of each alternative.

All outputs are summarised and compared with current cost. Based on the outcome certain sensitivity analysis are further performed to determine impact of change in one parameter on overall output. vi. E c o n o m i c a n a l y s i s & F i n a l recommendation: This is the last step of the exercise in which cost saving and ROI of each alternative is assessed against baseline. In order to conclude final strategy some more factors are considered at this stage which are: ease of implementation, risk factors associated with various alternatives, availability of funds for recommended change and customer service.

Overall it is an effective approach to optimise the supply chain cost and improve customer service level. Many large organisations having mature supply chain have invested on such process and tools in order to achieve better efficiency.

Especially post GST when supply rules have drastically changed and network decisions have become efficiency driven instead of geo-political state boundary driven, the adoption rate of network optimisation has further increased.

(The author is Co-founder of Aviral Consultancy)

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Shippers Speak

“Transparency is what we seek from Logistics Service Providers” 1. How important is logistics for the overall scheme of your business?

Logistics plays a vital role in our business, same as in other businesses.

If you have sensitive and responsive logistics provider than you can plan and support your customer with minimum safety stock of inventory, which will ultimately improve your cash flow and space utilisation in our factory

2. How do you ensure smooth coordination between suppliers, transporters and other departments in your supply chain?

Dura Automotive Systems is a global automotive supplier specialising in the design, engineering and manufacturing of solutions that drive the evolution of mobility. With the presence on more than 300 models worldwide, DURA markets automotive products to every single equipment manufacturer in America, Asia and Europe. K V Verma,

Materials Manager, DURA Auto Systems India Pvt Ltd, in an interaction with Upamanyu Borah, voices the importance of technology in supply chain, and strategies they have implemented to effectuate their business and services

We believe in some major factors for success in the coordination between suppliers, transporters and other departments in the supply chain. Factors such as training, monitoring, tracking, information flow, communication and transparency are the key to success.

3. A re there any unique or

innovative strategies that you have adopted for the better supply of your products?

Ever y log ist ics ser v ice prov ider implements effectual strategies that have immediate and desired results on better service. Considering our innovative strategies, we have made a yearly business contract with our service provider for all type of modes.

We groom and explain the criticality of our business to our providers; tracking shipments from day one to till we get the shipment.

4. Today, businesses are looking for more innovative technological solutions to best serve their clients.

How far have you been successful in implementing technology to strengthen your supply chain operations?

True, due to technology, we are getting

64 CargoConnect - JUly 2018

all the required information on time and to implement the same, training the resource with the clear need of requirement plays a very important role. I am proud to say that we have implemented every technology which is need of our business and also need of the hour.

5. Tell us about the most common problem faced by your company during its supply chain process.

What steps do you take to overcome these?

The most common problems that we face during the supply chain process are the wrong commitments or wrong information, damaged shipments, and most importantly, customs clearance at the destination. But as problems are part of every business, we have several ways to overcome these hurdles. We have selected service providers who can dedicate their resources to our business.

Or, in case they have a portal, through it we organise and continue our training, which eventually helps us to consider and see them as partners to our success.

We schedule a conference call once in every month – supplier - service provider - us.

6. Who are your Logistic Service

Providers (LSP)s and what qualities you seek for in them before choosing their services.

We enjoy the management of two dedicated service providers: Fairmacs and Berrio.

We l l, t he e x pectat ion f rom a ny logistics service provider would be is cost-effectiveness, transparency, faster response, and sensitiveness to customers’ needs. They must also be updated on the latest information in regard to the business, locally and globally.

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news

Green nod to Chennai airport expansion An Expert Appraisal Committee (EAC) under the Ministry of Environment, has accorded environmental clearance for `2476 crore Chennai Airport expansion programme by Airports Authority of India (AAI).

According to the minutes of meeting held on May 30, the Committee while clearing the project said the modernisation will be carried out within the existing airport premises over an area of 1301.28 acres. As the entire land is already under possession of AAI, no additional land acquisition is involved.

Once the expansion is done, the passenger capacity after modernisation of proposed Chennai airport will be 30 Million Passenger Per Annum (MPPA) from the existing 14 million, the EAC said.

Rail projects worth Rs 18,790 cr under implementation

Aimed at bringing down logistics costs by providing rail connectivity to ports, Indian Port Rail Corporation (IPRCL), a joint venture between major ports and Rail Vikas Nigam Ltd (RVNL), along with other agencies are implementing projects worth `18,795 crore, the government has said.

As many as 70 rail connectivity projects for 4,247 km length were identified to be implemented at a cost of about `46,728 crore, the report said.

Of the 70 identified projects, 27 projects are currently under implementation for 1,967 km at a cost of about ` 18,795 crore, it said.

Thirteen projects having a length of 426 km have already been completed at a cost of `2,592 crore, as per the report.

It also said that 30 more projects entailing an investment of `25,341 crore are under pre-implementation stage to provide 1,967 km connectivity.

300 National Highway projects to be ready by March 2019 The ministry of road transport & highways has identified about 300 projects for completion by March 2019.

Of these, about 100 projects are likely to be completed by December 2018. Union minister for road transport & highway Nitin Gadkari informed that an extensive, state-wise review of the ongoing highways projects of 20 states in Goa had happened earlier this week. The meeting was attended by senior officials of the Ministry, NHAI (National Highways Authority of India) NHIDCL (National Highways Infrastructure Development Corporation Ltd), PWD Secretaries of respective states and other officials.

Gadkari said that they reviewed about 427 projects of NHAI and 311 projects of NHIDCL and the Road Transport Ministry covering 20 states over the two day period. 127 NHAI projects and 153 Ministry projects, which were scheduled for completion

by June 2019, have now been targeted for expedited completion

by March 2019.

In addition, there are about 100 projects that are going to be completed by December 2018. The construction target of NHAI for the year 2018-19 has revised upwards from 5058 km to 6000 km. Gadkari expressed confidence that the organisation would surpass this target. The minister also informed that the projects of Maharashtra and the North Eastern states remain to be reviewed.

66 CargoConnect - JUly 2018

India poised to be worth up to $10 trillion in the next 15 years - Suresh Prabhu The fifth edition of The Economic Times Supply Chain Management & Logistics Summit 2017 saw Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation of India, elucidate on steps taken by the government to give a fillip to the Supply Chain domain across the spectrum. Speaking at the event, he said, “Our economy is poised to grow up to $5 trillion in the next 7-8 years, and up to $10 trillion in the next 15 years. Logistics will play a key role in driving this growth, it has always been the backbone of the economy; it determines how fast an economy grows. So we are working on an economic plan to create logistic hubs and see how more to efficiently manage logistics. We are identifying hindrances and removing them. At the same time, we are trying to digitalise the entire supply chain. The idea is to prepare a proper integrated logistics plan.�

Kannur International Airport to begin operations in September

Kannur International Airport will begin operations in September, Kerala Chief Minister Pinarayi Vijayan has said after meeting Union Aviation Minister Suresh Prabhu.

Kannur aerodome will become the fourth international one in Kerala, which is already the state with the most number of international airports in the country.

The Kannur airport will be provided with all possible help to make it fully operational by September, an official release quoted Prabhu as saying.

Railways clocks 7.5% rise in April-May freight earnings Indian Railways has earned `20,000 crore from freight loading in April and May. The national transporter posted a 7.5 per cent year-on-year growth in freight loading and carried a record 200 million tonnes of freight in the first two months of the current financial year. The brisk start to the year has raised hopes that the railways will be able to meet its freight loading target of 1,216 million tonnes for 2018-19, officials said.

The maximum increase in the first two months came from coal, they said. “Out of the total 200 million tonnes of loading, around 100 million tonnes was coal. It was around 7.5 per cent more than in the corresponding period last year,� said a senior railways ministry official.

news

DP World completes acquisition of Peruvian logistics firm for $315 mn Dubai-based port operator DP World has completed the acquisition of Cosmos Agencia Marítima SAC (CAM), a leading fully integrated logistics provider in Peru, for $315.7 million.

DP World and Andino Investment Holding announced an agreement for DP World to acquire 100 percent of the shares of CAM. This also includes 100 per cent of the shares in Triton Transports and Neptunia, and 50 per cent in Terminales Portuarios Euroandinos SA, in the Port of Paita, which is the second largest container terminal in Peru.

This move expands DP World’s footprint in Peru by adding another container terminal to the existing terminal at Callao as well as integrated logistics services including warehousing, distribution and cargo handling to provide tailor made solutions to a range of industrial sectors in the country.

Kuehne+Nagel enhance track and trace services for last mile deliveries

Logistics giant Kuehne+Nagel has entered into a strategic partnership with Zebraxx, a leading application service provider of logistics solutions to provide customers with more visibility for their last mile shipments.

Kuehne+Nagel customers have enjoyed the benefits of Zebraxx for several years. In 2017, almost 10 million transactions have been handled by the system.

The growing alliance between the companies will strengthen K+N’s capacity to offer additional methods for collecting and sharing delivery information, such as realtime vehicle location, photographic evidence of the state of consignments and delivery confirmation, IoT validation or electronic proof-of-delivery (ePOD) – independent from backbone systems and carriers used.

UPS Expands Ocean Freight Service

Cargo volume increases for Cathay Pacific in May

UPS has announced a major expansion to its ocean Less-Than-Container Load (LCL) service with the addition of direct sailings in 130 lanes. The origin and destination countries cover most of the globe, including ports in Asia, Latin America, Africa, Europe, U.S. the Carribean and the Middle East.

Customers can now access costeffective ocean transportation using UPS’s extensive network of capabilities and freight facilities. These services include cargo insurance and financing solutions from UPS Capital, customs brokerage services, supplier management, sea-air service, UPS Preferred ™ LCL, and China-Europe Rail service.

Cathay Pacific and Cathay Dragon have carried 175,074 tonnes of cargo and mail last month, an increase of 8.2 per cent compared to the same month last year, according to recently released traffic figures by Cathay Pacific Group.

Capacity, measured in available freight tonne kilometres (AFTKs), was up by 3.8 per cent while cargo and mail revenue freight tonne kilometres (RFTKs) increased by 7.4 per cent. In the first five months of 2018, the tonnage rose by 7.9 per cent against a 4.5 per cent increase in capacity and a 7.7 per cent increase in RFTKs.

68 CargoConnect - JUly 2018

Deendayal Port to have fertiliser cargo facility The Standing Finance Committee of Ministry of Shipping has cleared a project for setting up an exclusive, fully mechanised handling facility for fertiliser cargo at Deendayal Port in Kandla. The facility will be developed at berth number 14 of the port, which is being constructed at an approximate cost of `138 crore. The port will further invest approximately `340 crore for the project from its internal resources.

Initially, the proposed facility will handle 2.60 MMTPA and subsequently this will be raised to 4.50 MMTPA. The facility is expected to be commissioned by October, 2020.

news

Krishnapatnam & CONCOR launch new rail service to Central India Krishnapatnam Port Company Limited (KPCL) - the country’s largest all-weather; deep water port has launched a new weekly direct container rail service connecting the country’s central region to the east coast and beyond in association with CONCOR. The inaugural train left from KPCT on May 29 with a full load of MAERSK Line import containers.

The new rail transit will run a direct shuttle service between ICD (Inland Container Depot), Nagpur to Krishnapatnam Port Container Terminal (KPCT) in record 55 hours, at competitive freight rates. The service is set to offer huge benefits for EXIM shipments between Central India and trade destinations like China, Far East, Australia, Bangladesh and West Africa, among others.

Commenting on the occasion, Ms. Vinita Venkatesh, Director, Krishnapatnam Port Container Terminal, said, “With the excellent rail infrastructure of CONCOR, we offer a fixed day weekly service from KPCT to ICD Nagpur. Further, our logistics arm is able to efficiently road bridge cargos from ICD Nagpur across central Indian states like

Madhya Pradesh. This rail service will enable importers and exporters of central India to benefit by using an east India port for cargos to and from China, Korea, Japan, and South East Asia.”

Unlike road transport, which involves multiple examinations even after taking prior customs clearance of the containers, the train can directly enter the port without any further examination, benefitting customers.

The new service will offer a 24x7x365 customer service desk to help shippers avail real-time information on connectivity, container availability, freight rates, cargo tracking among others.

www.skyways-group.com

news

Dachser India expands in Northern Capital Region

Saudia Cargo launches pharmaceutical cold storage facility at KAIA

Riding on the tailwind of robust growth in Asia Pacific last fiscal year, DACHSER India further expands its network in Gurugram, Haryana in order to serve a larger and growing customer base.

“Our continuous efforts and enthusiasm to provide intelligent logistics to all our customers has fueled continued growth, making a move to a new facility in northern India necessary,” said Huned Gandhi, Managing Director Air & Sea Logistics, India. The city of Gurugram is a logical choice for the company as the area is now experiencing rapid urbanisation with the third-highest per capita income in India.

Gurugram has close connectivity not only with South Delhi but also with the rest of India and worldwide destinations via International Airports, Indira Gandhi airport and dedicated freight corridors connecting the ports indicating faster connection for air and sea freight.

Saudia Cargo inaugurated one of the newest and most modern cold storage facilities of pharmaceuticals and medicines at King Abdulaziz International Airport to meet the surged demand on highly-sensitive and temperature-controlled shipments. The refrigerated warehouse was opened in conjunction with launching FlyPharma, an innovative product designed specifically to meet the growing demand for the pharmaceutical and life sciences sector.

“The new facility boasts of a 1010M2 pharmaceutical handling space with double operational capacity and conforms to the international standards of World Health Organisation, the European Committee for Medicinal Products for Human Use as well as the local standards of the Saudi Food and Drug Authority,” said Omar Hariri, CEO, Saudia Cargo.

Saudia Cargo is also planning to launch an 800M 2 specialist pharmaceutical handling facility in Riyadh offering FlyPharma services.

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Cathay Pacific keen to explore new connections in India

JSW Infra to pump Rs 5,100 cr into capacity expansion JSW Infrastructure, the port operating arm of the JSW Group, aims to spend `5,100 crore for capacity expansion till 2020, by which time it also aims for its maiden public issue of shares, its CEO said in a recent interview.

The company had in 2015 charted a five-year capex plan of `10,000 crore.

That was later optimised to `8,800 crore of which it has already spent `3,700 crore.

The money will be spent in more than doubling its total annual cargo handling capacity to 200 million tons from 75 million tons.

E-tailers focusing on AI, VR to cut logistics cost E-commerce companies are focusing on Artificial Intelligence and Virtual Reality with a view to cut logistics costs and identify fraudulent orders, said a report by global auditing and consulting firm PwC. With an emerging middle-class population of more than 500 million and approximately 65 per cent of the population aged 35 or below, India represents a highly aspirational consumer market for retailers globally, said the PwC TechWorld report.

It observed that to identify fraudulent orders, reduce return rate and also cut down on logistics cost, e-commerce companies are investing in robotics and AI heavily.

Cathay Pacific is keen to explore new connections to India, including nonmetros, even as it awaits the outcome of bilateral negotiations between the respective governments to increase entitlements.

“India is a very promising market for us. We would like to increase our capacity by deploying bigger aircraft in existing routes,” Paul Loo, Cathay’s chief customer and commercial officer, said.

Jetex Oceanair Pvt Ltd customs cleared 25tons of class I DG cargo

Zebra Enable CEAT to Unleash Productivity Gains and Supply Chain Accuracy

A Russian-made Tupolev Tu-204C freighter took off from Kolkata airport for Almaty in Kazakhstan with 25 tonnes of non electric explosive detonators used for blasts in mining operations or tunnelling through mountains.

Customs clearance agent Jaideep Raha of Jetex Oceanair Pvt Ltd, which handled the consignment, said the boxes were very carefully loaded in the operation. He added that this is first time from CCU Airport such a cargo has been handled and perhaps the single largest uplift of class I DG cargo in India.

CEAT Limited, the tyre manufacturer, has used Zebra’s Technologies Corporation’s solutions to simplify its processes and build automated workflows that deliver greater efficiencies and business value at its Halol plant in the state of Gujarat.

CEAT has successfully deployed Zebra’s MC3200 Mobile Computer, DS457 Fixed Scanner, and ZT230 Industry Printer in its manufacturing facility including seamless integration with its existing Management Information Systems (MIS).

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Udaan scheme gaining momentum in J&K

Qatar Airways to apply for launch of Indian airline

The Udaan scheme for skill training to the educated unemployed youth in Jammu and Kashmir has been getting very good response, Union Minister of State for Skill Development and Entrepreneurship Anant Kumar Hegde said.

Udaan is being implemented in collaboration with the state administration, his own department and Union Home Ministry for quite some time in Jammu and Kashmir, Hegde added.

“So far it has received a very good response from the people there”, Hegde said in the sidelines of a session on ‘Human Resources Development for SocioEconomic Development.

Qatar Airways will “soon” move an application to launch a full-service airline in India for domestic operations, according to its chief Akbar Al Baker.

Al Baker said the proposed airline would be fully financed by Qatar’s sovereign fund. It would have Indians heading the board and as most of its members.

In March 2017, Al Baker first mentioned about the airlines’ plans for a carrier in India and in February this year, he had said it plans to launch an airline in India with at least 100 planes.

Emirates SkyCargo inks MoU with Cainiao Network Emirates SkyCargo, has signed an MoU with Cainiao Smart Logistics Network, the logistics arm of the Alibaba Group, to jointly facilitate the delivery of cross-border parcels as Cainiao looks to expand its global logistics infrastructure with Dubai as a hub.

The MoU was signed by Nabil Sultan, Emirates divisional senior vice president, cargo and Xiaodong Guan, general manager of Cainiao Global Business at Cainiao’s global headquarters in Hangzhou. It is a landmark agreement for both Emirates SkyCargo and Cainiao to leverage each other’s strengths in cross-border e-commerce trade and cargo operations.

FarEye expands footprint in European market

Avvashya CCI Logistics plans Rs 60-cr warehouse

India based digital logistics platform FarEye has announced the opening of its first European office in the heart of London with an aim to expand its business foothold in the region and to serve its customers directly.

The company said in a press release that it sees humongous scope in the European market and to capitalise the explosion in online sales in Europe, which is estimated to reach $700 billion a year by the end of 2018, FarEye has launched its first office in the continent.

FarEye’s logistics management software helps in digitising end-to-end operations by automating field processes and workforce thus eliminating inefficiencies in logistics.

Avvashya CCI Logistics Private Limited (ACCI), a subsidiary company of Allcargo Logistics Limited announced that it plans to invest around `60 crore in the next two years to build an auto engineering part warehouse in Guwahati.

The facility will be spread across one lakh sq ft and provide employment to around 100 employees in the first phase.

The second phase will see an expansion of three lakh sq ft and employ more than 250 employees. A large part of the investment will be used towards automation in the state-of-the-art facility designed to meet global standards.

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PCET to connect Northeast to West Coast The Northeast Frontier Railway has started operating one lease Parcel Cargo Express Train (PCET) on fortnightly basis, connecting Northeastern part of the country to the West Coast. The route of this Parcel Cargo Express Train lease is: New Guwahati in Assam to Kalyan in Maharashtra with stoppages at New Jalpaiguri, Kalumna Goods Shed. This move would enable farmers to market their products like tea, betal nuts, pineapple, jute, horticulture products, cane furniture etc. at the retail markets in Mumbai, Bengaluru, Nagpur, Pune etc. This initiative is likely to promote industries of the region particularly.

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Minister of commerce & industry asks exporters to augment exports to US$ 76 bn Minister of state of commerce & industry, CR Chaudhary asked the exporting community to further build on the exports of over US$76 billion in 2017-18, assuring them of government support.

Awarding EEPC India National Awards to 110 engineering exporters in New Delhi recently, Chaudhary said that it is significant that these entrepreneurs made this possible in 201617 when the market was tough. However, things improved in the following 2017-18 and the prospects seem equally encouraging this year.

In her address, commerce secretary Rita Teaotia said the government is working on creating an integrated logistics division within the commerce ministry to bring down the total cost of movement of shipments. She asked the engineering exporters to work on a strategic plan to completely wipe out the trade deficit of US$ 16 billion of the engineering sector in the next few years, with a focus on newer markets.

DB Schenker Awarded as Best Rail Freight Service Provider For the third year in a row, DB Schenker was granted the AFLAS Award as Best Logistics Service Provider Rail at the Asian Freight, Logistics & Supply Chain (AFLAS) Awards 2018 ceremony in Shanghai.

Having pioneered Rail Freight services a decade ago with its first Asia – Europe rail link from China to Germany in 2008, DB Schenker has continually developed an extensive portfolio of market-leading rail solutions in Asia Pacific, offering full container load (FCL), less-than-container-load (LCL), blocktrains, multi-customer, reefer services and so on, to customers in the automotive, electronics, industrial/chemicals, consumer goods and other sectors.

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Brussels Airport introduces blockchain app on their BRUcloud platform

IAG Cargo seeks application for Hangar 51 programme IAG Cargo is currently seeking application for the International Airlines Group (IAG) Hangar 51 global innovation programme, in collaboration with British Airways and Avios. The initiative invites start-ups of all sizes and growth stages from around the world to join the industry-leading accelerator programme to transform the aviation industry. This could include future cargo logistics such as shipping analytics, asset tracking, measurement and monitoring tools, smarter operations, such as big data analytics or robotic processes, and new products or wildcard disruptive ideas that have the potential to reshape the industry.

Hactl helps AirBridgeCargo deliver outsized shipments Cargo handler Hong Kong Air Cargo Terminals Limited (Hactl) has handled two charter flights for its customer AirBridgeCargo Airlines, each carrying 20-meter long machinery components weighing 18,800 kilograms.

The Russian-based all cargo airline carried the outsized shipments on two of the airline’s brand-new B747-8 freighters from Schiphol, Netherlands, to Hong Kong.

The machinery components were secured to customised built up pallets and had to be unloaded through the aircrafts’ nose doors. Hactl deployed four main-deck loaders, lowered in perfect alignment to avoid any damage.

VO Chidambaranar’s record in thermal coal handling V.O. Chidambaranar Port Trust created a new record by handling 51,413 metric tonnes of coal in a single day at IXth berth from the vessel MV Ultra Gujarat, surpassing the previous record of 45,396 metric tonnes of coal handled in a single day at IXth berth from the vessel MV Sea Hope. M/s. Seaport Shipping Pvt Ltd is the steamer and Stevedore agent.

During the current financial year 2018-19 (Up to June 14, 2018), V.O. Chidambaranar Port Trust has handled 28.49 lakh tonnes of coal surpassing the previous year’s achievement of 26.49 lakh tonnes registering an increase of 7.15 per cent.

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Brussels Airport recently announced the launch of a blockchain-based application. The system is part of the company’s BRUcloud, an open datasharing platform that can be used for the development of different apps. The blockchain app will help track cargo movement from handlers to forwarders and will integrate with upcoming and existing applications like Slot Booking App. The new blockchain-based app takes to the next level the “Landsite Management tool” that the company is developing in collaboration with its stakeholders at the cargo unit.

AISATS completes ten years of service at Kempegowda International Airport APM Terminals India receives AEO certification The Authorised Economic Operator certification program aims at preventing unlawful trade across borders and facilitating legitimate trade designates.

By getting the AEO certification, APM Terminals India Pvt Ltd is acknowledged as a ‘secure’ and ‘reliable’ trade partner in the global supply chain and will enable delivery of higher efficiencies and speedy export-import services.

The certification has recently been introduced as a single tier certification for economic operators like logistics providers, custodians or terminal operators, customs brokers and warehouse operators.

Air India SATS Airport Services Pvt Ltd (AISATS), India’s premier airport services company, has completed ten years of providing airport services at the Kempegowda International Airport in Bengaluru. AISATS has captured 56 per cent market share in international flight handling and 54 per cent market share in international cargo handling in its decade-long service. In the last decade, AISATS has played a significant role in adopting and implementing several technological and digital innovations to its ground and cargo handling operations, thereby bolstering the status of Kempegowda International Airport as the Gateway to South India.

news

New look for UPS’s 747 Jet ahead expo 2020

Emirates SkyCargo uplifts record volumes of perishables from Mumbai Emirates SkyCargo, the freight division of Emirates, has transported record volumes of mangoes from Mumbai in the month of May and June this year.

The air cargo carrier witnessed a growth of more than 50% in the volume of mangoes transported in May this year compared to the same period last year. Close to 1130 tonnes of mangoes were uplifted from Mumbai to other destinations around the world through Emirates SkyCargo’s extensive global network in May 2018. The mangoes were uplifted both as belly hold cargo on passenger aircraft as well as on freighter aircraft.

The state of Maharashtra is the largest grower of mangoes in the country exporting over 30,000 tonnes every year. Mumbai is therefore an important gateway for the mango exports.

One of UPS’s 747 jumbo jets dedicated for long-haul international use is sporting a modified paint scheme highlighting the company’s role as official logistics partner for Expo 2020 Dubai. UPS has only modified the livery of an aircraft four other times in the airline’s 30-year history. Each time signifies a major news event. This time, it is to mark UPS’s unique role in delivering one of the world’s most complex logistics challenges at the upcoming Expo 2020 Dubai.

Millions of visitors from around the world are expected to attend the Expo in the United Arab Emirates. During the event’s six month run, UPS will manage all of the logistics of the event, using a team of nearly 1,000 employees and a dedicated 2,90,000 square-foot warehouse.

profile

Speedbox: Technology that delivers Shippers today need a variety of services - door to door, port to port, last mile delivery, hyperlocal, domestic, COD, packaging and more. It is common for shippers to have contracts with multiple service providers and also have to spend additional resources to manage all the shipments effectively.

Speedbox, recently serviced a customer for an international delivery that used 5 different companies along the way - and all of this means ​more paperwork, no integration (off​line) and layered operations. ​These are some of the reasons why every entity has “developed” its own processes, systems, tools and software to manage their unique needs.

Speedbox understands there is a lot more to a logistics “platform” or “software” than placing shipment requests, managing addresses, tracking and custom pricing - these basic essentials are already offered by Speedbox. So, the best way to explain what Speedbox does is through an example - a use case.

Allied Aviation is one of the largest air freight forwarders in India today. The company’s courier/express vertical, Allied Express, uses Speedbox Technology in all their 14 offices pan-India.

Each of these interfaces are available on mobile, web as well as through APIs. For instance, Speedbox recently integrated with a large cargo entity that is making inroads in India through

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its courier/express vertical as well. This company has its own website for shippers. By integrating with the Speedbox API, this company is now able to generate carrier AWBs (like, Fedex)​from its own system and is seamlessly integrated with tracking as well.

Speedbox software can be deployed by any company and in any country. Due to the robust and intelligent software architecture/technology stack, one can deploy Software-as-aService applications (SaaS) with customisations - and this is how Speedbox has presence in Malaysia as well.

Speedbox aims to be in 10 countries and be able to cover 40 cities in India within the next 3 years.

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APPOINTMENTS Al Baker takes over as chairman of IATA board Qatar Airways Group Chief Executive Akbar al-Baker has assumed his duties as chairman of the IATA Board of Governors (BoG) for a one-year term, effective from the conclusion of the 74th IATA Annual General Meeting which ended in Sydney.

Al-Baker is the 77th chair of the IATA BoG and the first CEO from Qatar Airways to hold the position. He has served on the BoG since 2012.

He succeeds Goh Choon Phong, CEO of Singapore Airlines.

John Moseley is the new CCO of Port Houston

Ashutosh Dixit named DAMCO CEO for India, Bangladesh, Sri Lanka DAMCO, one of the world’s leading providers of supply chain management services and freight forwarding has appointed Ashutosh Dixit as CEO for India, Bangladesh and Sri Lanka (IBS).

With over two decades of experience in supply chain, Ashutosh will lead the next phase of growth for Damco across IBS with a key focus on offering innovative and seamless solutions to customers shipping from and to the IBS markets.

CEVA appoints Niels Weithe to head up global eCommerce business

Allcargo appoints Ashish Mathur as Group CIO Allcargo Logistics has appointed Ashish Mathur as Group Chief Information Officer (GCIO) to spearhead the technology initiatives that will take the global leader to the next phase of growth.

The appointment of Mathur, a seasoned IT professional with more than 28 years of experience across multi-national organisations and diverse industries, becomes key in the backdrop of Industrial Revolution 4.0, where automation, big data and AI is set to change businesses.

Delta’s Colvile appointed CEO of SkyTeam

John Moseley is the new Chief Commercial Officer of terminal operator Port Houston, succeeding Ricky Kunz who has elected to retire from the Port of Houston Authority.

In his new role, Moseley will take the lead in developing and executing Port Houston’s commercial strategy. He will be responsible for Port Houston’s real estate, trade development, economic development, marketing/external communications and media relations departments.

CEVA Logistics has appointed Niels Weithe to the newly created position of Global head of eCommerce.

Weithe will be based in Germany and will report directly to Chief Operating Officer of Contract Logistics, Brett Bissell. He brings more than 25 years’ experience of this market segment to his new role and will assist CEVA in expanding its B2C solution based on its established global network.

IAI appoints Swami Iyer as new CEO for North America

UPS appoints Kevin Warren as chief marketing officer

Lindsey Jalil becomes MD – Commercial of Delta Cargo

Swami Iyer is the new CEO of Israel Aerospace Industries (IAI) North America, its US subsidiary.

In this new role, Iyer will be responsible for all IAI operations in North America, including its subsidiaries Stark and ELTA North America.

Iyer is a former military pilot and veteran executive in the aerospace, defense and cybersecurity industries.

Supply chain giant UPS has appointed Kevin Warren to the position of Chief Marketing Officer.

In this new role, he takes up the responsibility for all US and international marketing, including the company’s product development, pricing, customer loyalty, industry segments, customer communications and public relations, among other functions.

Delta Air Lines Cargo has appointed Lindsey Jalil as Managing Director – Commercial.

She will lead the carrier’s commercial activities including: Alliances, Distribution, Marketing and Communications, Products, Technology, Reporting and Revenue Management.

She succeeds Kristin Colvile, who was recently promoted to CEO and MD, at SkyTeam.

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Major airline alliance SkyTeam has appointed Delta executive Kristin Colvile as its new Chief Executive Officer, at the alliance’s Governing Board. The alliance has been co-founded by Delta.

In her new role, Kristin will be tasked with building on the significant investment that SkyTeam has made into developing industry-leading technology.

She will continue to focus on maximising the tools to enhance seamlessness for all our members and their customers.

events

Ethiopian Cargo and Namaste India Aviation jointly hosted Awards night Ethiopian Cargo and Namaste India Aviation (GSSA-North India) jointly hosted an Award Ceremony, followed by cocktail and dinner reception, at Hotel Andaz, New Delhi on June 2, 2018.

The event was organised to celebrate the success of establishing stability for Ethiopian Cargo in India.

Ethiopian Airlines has travelled a long and fruitful journey with Namaste India Aviation in India. From starting with a meager 5 tons, both have together built up the market share for Ethiopian Cargo at a tremendous pace.

Tadesse Tilahun, Regional Director of the Indian Subcontinent; Kirubel Shitahun, Traffic & Sales Manager for North India; and Tamirat, Manager of Airport Services in New Delhi were active participants from Ethiopian Airlines at the event. It was a pleasant gathering of around 100 people. The presence of top ten agents in Cargo, Service providers: GMR (New Delhi airport operator) and Celebi (Ground Handling Agent and warehouse handler) added glitters to the event.

Aviraj Rathi, Director, Namaste India Aviation gave the welcome speech on the occasion and highlighted the company’s long-term plans for growth with Ethiopian Airlines.

The event witnessed traditional Indian and Ethiopian dance

performances which completely captivated the audience and ignited a sense of awe amongst them.

Kirubel Shitahun, Traffic & Sales Manager in New Delhi for North India, in his short speech talked about the newest collaboration with Ethiopian Airlines: Ethiopian Holidays. He discussed about the unique attritions Ethiopia possesses, such as the lowest point on earth and the fossils of Lucy, the ideal weather conditions of the country, which provide refuge from the scorching heat of the Indian summer, and the new destinations opened on the ET route. He invited people to visit and do business in Ethiopia as it is the fastest growing country in the African continent.

In the end, all ten of the top agents were awarded with trophies, certificates and gifts. Following which some lucky guests also won exciting prizes sponsored by Ethiopian Airlines, which included Business class tickets to Addis Ababa, a 3 - night and 2 - day stay in Ethiopia’s capital, and what was most sought after by our guests: a lunch with the Regional Manager.

The event concluded with food and drinks followed by memorable photographs that served as a reminder of how far Ethiopian Airlines Cargo and Namaste India Aviation have reached.

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events

ACCD organises its 41st AGM, witnesses active participation of members The 41st Annual General Meeting of Air Cargo Club of Delhi (ACCD) was held at Hotel Four Points by Sheraton, New Delhi on June 1.

The President of the club, Ravinder Katyal welcomed the members of newly re- elected managing committee. The house actively discussed previous year’s tasks executed by the committee and gave some valuable suggestions for the coming year.

Members and past presidents appreciated the work done by the entire team of the committee and also complimented newsletters and social media coverage by the sub-branding committee. Katyal on behalf of the committee thanked all the members and said, “We thank you for all your love and support. We sincerely look forward to having another promising, entertaining and a rocking year ahead.” The incumbent committee was re-elected for the next year and ensured a more promising and fruitful year ahead. The contribution of the Past Presidents of the club was also acknowledged in the meeting.

FFFAI participates in RAME 2018 Conference in Cameroon to promote FWC-2018 As part of its international campaign for the FIATA World Congress 2018 (FWC-2018) to be held from September 26-29 at Aerocity in New Delhi, Federation of Freight Forwarders’ Associations in India (FFFAI) participated in RAME (Region Africa & Middle East) 2018 Conference, which held from May 3 to 5 at Douala in Cameroon.

The Conference was part of FIATA’s Annual Regional Conference where more than 700 delegates consisting of Customs Brokers, Freight Forwarders and Logistics Companies mainly from African countries gathered to exchange views on market trends, trade opportunities and skill development.

The conference saw interaction among FFFAI leaders S Ramakrishna, Vice Chairman, FFFAI; Mr Sudip Dey, Vice Chairman, FFFAI and Vinod Sharma, Honorary Treasurer, FFFAI about FWC 2018 and business opportunities in India with conference delegates.

“Our visit to RAME 2018 was very fruitful and we are expecting about 200 delegates from African countries alone,” said Ramakrishna.

To be hosted by FFFAI, which is a member association of FIATA, the FWC 2018 will be attended by more than 1500 delegates from overseas countries as well as India. The theme of this World Congress is “The Future Starts Here”, to showcase brand India as a lucrative hub for manufacturing and logistics industry.

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events

New office of C.H.Robinson inaugurated in Mumbai C.H.Robinson inaugurated their new office at Fulcrum, Hiranandani Business Park, located at Andheri East, next to Hyatt Regency in Mumbai. The inaugural function was held on June 28, 2018 in presence of Kenneth Edward Potts, Regional Director- South Asia;Laxmana, Vice President- Global Ocean Services and John Mccarthy, Senior Counsel Global Forwarding.

The new office is situated nearby the previous office location. The new office features best facilities and distinctive architecture. The office is strategically located in the hub of the city with access to connectivity with the Airport, Mumbai Metro and nearby hotels. The company assures commitment of flexibility and customer ease.

viewpoint

2018 is the year of transformation for the Indian Logistics Industry Movement by Government of India like Make in India programme and improvements in infrastructure has provided a strong base and encouraged many skilled professionals to launch their own brands.

Pawan Grover Head Corporate Affairs and Business Development-Cogoport Logisticians are responsible to align the line between disorder and order. Every logistics company aims to be ductile enough to adopt and limit capabilities to align with the demands within the supply chain model at a given time.

The year 2018 is expected to be a year driven by effective strategy that comprises of flexible automation solutions to increase the agility and elasticity of the logistics infrastructure and implementing and meeting sustainability goals to meet market fluctuation costs effectively.

It is imperative for companies to introduce big-data algorithms, datavisualization techniques and smarter analytics to boost process efficiency

and service quality by shortening the delivery times. I must say that the year 2018 will mark the transformation in the logistics Industry. Geography based search trends shall anticipate demand of certain products in a region and ship in advance.

By anticipating the demand and studying the data-patterns, companies can estimate, plan and align the operations well in advance. In the ever-changing business, staying ahead in delivering the service is the key and data-driven logistics will help enhance the future of logistics. Customer experience needs to be a competence, not a function. The end game is to have a customer-centric culture and a process that becomes self-sustaining.

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upcoming events APPAREL LOGISTICS SUMMIT 2018 One day event to be held on 4th July, 2018, at Dhaka, Bangladesh. A global convergence of textile and apparel industry stakeholders and policy makers to discuss and deliberate on devising a strategy for manufacturing excellence and growth of the apparel manufacturing industry and its supply chain.

To know more visit www.itln.in/apparellogisticssummit2018 ASEAN PORTS AND SHIPPING 2018 (JOHOR BAHRU, MALAYSIA The three-day event will take place from July 3 to July 5, 2018 in Johor Bahru, Malaysia. The event will focus on showcasing one’s innovative container ports and terminal equipment and discovering new technological trends and developments in the logistics & transportation industry in South-East Asia and all over the world.

To know more, visit https: freshexpo.ru/en/exhibition/7846 FTR Transportation Conference The three-day event to take place from September 11-13, 2018 at the Historic Union Station in Indianapolis, Indiana. The FTR Transportation conference is the conference that brings the different aspects of freight transportation world into one place. With over 80 speakers and panelists and 450 attendees, the event is the premiere transportation forecasting event of the year.

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

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

To know more, visit www.maritime-world.com/mni2018 PORTLORE One-day event to be held on September 28, 2018 at the Renaissance Mumbai Convention Centre Hotel in Mumbai in India. The event will focus on the maritime transportation of iron ore and coal, making an attempt to forecast the trends of the global economy and geopolitics.

To know more, visit www.10times.com/portlore AIR CARGO FORUM 2018 - TORONTO Three day event scheduled from October 16 - 18, 2018, at Metro Toronto Convention Centre, Canada. Over 4,000 air cargo decision makers and more than 300 exhibitors from around the world is expected to gather at this premier air cargo industry event to network and address current industry challenges and opportunities.

To know more, visit www.tiaca.org Supply Chain Innovation Summit 2018 Two-day conference to be held from October 24-25, 2018 at Chicago, Illinois. The event will focus on uniting supply chain leaders from across the globe to provide insight and spark discussion about the latest trends and challenges in the supply chain.

To know more, https://www.theinnovationenterprise.com/summits/supply-chain-innovation-summit-2018-chicago

84 CargoConnect - JUly 2018

PEOPLECONNECT

Big challenges

drive a person towards

bigger achievements

Uday R Sharma is a logistics professional who has witnessed all the highs and lows of the Logistics business in his two decades plus career in the industry. Whether it is managing business or people or crafting business strategy he has a solution for any problem or challenge thrown at him. Presently, Uday is Director - Sales with Spoton Logistics Pvt Ltd since July 2013 where he is responsible for the overall growth of business and yield for all products.

—Gaurav Dubey

1

Today when I look back, I express thanks to my stars and elders’ blessings that I chose to make a career in the logistics industry which not only brought professional success to me but also moulded my personality to a great extent. It’s only due to logistics that today I have a profound knowledge and an insight into the various industries.

2

have you observed in the industry in terms of technology, manpower, policy etc?

Today, logistics in India has transformed metamorphically and witnessed exceptional growth in the last few years. The industry has become one of the major contributors to India’s total GDP. It’s a fact that the need for logistics services will increase in proportion with opening of more doors to trade and investment in India. In coming days, logistics will be driven by technology and techintegration is future. The availability of on-demand consumer logistics space is another positive trend that will keep the momentum up. I must say, the introduction of GST – ‘One Nation-One Tax’ is the best thing that has happened.

What motivated you to be in the logistics industry? How has been your journey so far?

When I started my career, everyone was in the rat race to join the IT sector. During my post-graduation days in IT, I had decided that I won’t be a part of this rat race. At that point in time, I got driven towards Logistics which was then largely dominated by un-organised players but winds of change had started blowing as international players started to form JV’s in India.

How has the industry changed from the time you stepped in?

What major transformations

86 CargoConnect - JUly 2018

3

What is the biggest challenge you have faced in your career?

I trust, big challenges drive a person towards bigger achievements. And it has been the story of my life as well.

Whether it was being a part of the group that worked towards establish-

ing Aramex in India or being a part of the growth journey in Safexpress or playing a pivotal role in turning around Spoton into a profitable and one of the fastest growing companies in India, each of the task was challenging but brought immense satisfaction of achievement.

4

5

Whom you consider as your Guru in the business?

I firmly believe in the quote - ‘Forget Luck, Live by Intent’. Everyone who has added value to my journey as a professional has been my guru. I have been influenced by ideas, theories and approach of most of my managers. All my friends, colleagues, team members and customers have had equal influence on the way I approach business and business decisions today.

What are your other interests and hobbies?

Whenever I get break from my work, I spend quality time with my family and friends. I also like to watch movies in my leisure time.

2000+

100+

employees across our network of airport warehouses

50,000

Customers trust us to deliver their goods on time

550,000

Sq.Mtr total warehouse area across six airports

general cargo handled per year

12,000

Tons

100,000

Sq.Mtr cold storage area across three airports

perishable cargo handled per year

Tons

GROUND HANDLING SERVICES Documentation Handling

BRANCHES : MUMBAI Register Office

Air Cargo Security

DELHI

CHENNAI

Air Cargo Handling

MANGALURU

AHMEDABAD

Special Cargo Handling

AURANGABAD

: 301- 303, Rangoli, Opp. Air Cargo Complex, Sahar Road, Andheri (East), Mumbai 400 099. Tel.: +91-22-4221 5100 Fax : +91-22-2681 7047

Corporate Office : B-201, Polaris, Off Marol Maroshi Road, Marol, Andheri (East), Mumbai-400 059.

Tel.: +91-22-4043 3906 Fax : +91-22-2920 5768 www.cscindia.in

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