CARGOCONNECT MAY 2018 by Surecom Media

PAGES 92 inclusive of cover

www.surecommedia.in

VOL IX ISSUE VI may 2018 `20

Postal Registration No.: DL (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Digitisation The Future of Trucking

Digitalisation in the Air Freight Industry A Slow Walk 08

Indiaâ&#x20AC;&#x2122;s Logistics Environment, 2017-18

CMY

Contents

Volume IX • Issue VI • may 2018

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

18 COVER STORY

Voices of the Pioneers

SPECIAL FEATURE

Digitalisation in the Air Freight Industry - A Slow Walk

focus

FEATURE

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

INTERVIEW Digitisation - The Future of Trucking .......40

Director Ajeet Kumar

Abhik Mitra CEO, Spoton Logistics Pvt Ltd .................60

Marketing Executive Twinkle Thakur

MRV Johnson Vice President (Sales), KION India Private Limited .......................................................62

Accounts & Administration Nitish Kumar

Shailender Anand Managing Director-India & Director-Dubai, Pronk Multiservice Global solutions .........64 Venkatesh Rao President, Transpeed Logistics Pvt Ltd .....65

Sr Designer & Visualiser Shaique Ahmad Designer & Visualiser Mayank Bhatnagar

Assistant Vice President- SCM, Relaxo Footwears Limited ...66

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

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

SHIPPERS SPEAK Vijay Wadhwani

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

NEWS ...............................................68-80

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

EVENTS ............................................82-86

Editor–Smiti Suri

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

APPOINTMENTS .....................................87 UPCOMING EVENTS ................................88 India’s Logistics Environment, 2017-18 ..................................................52

PEOPLECONNECT S L Sharma

Founder, SKYWAYS GROUP ...........................................90

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

frontline In the past three years, we have awarded around 14,000 km of highway contracts annually on an average. All these projects are hitting the implementation stage now. So, I don’t think the target of 45 km a day is unrealistic”

According to an in d e p e n d e nt st u dy conducted by Express Industry Council of India and Deloitte - The

said Nitin Gadkari, Minister of Road Transport, Highways and Shipping in an interview to a leading English daily

Indian Express Industry is expected to grow at a CAGR of 17% and reach INR 48,000 crore

The express industr y is a key enabler for the growth of India’s trade and economy. Factors such as ease-oflogistics will increasingly play a critical role in attracting investments into the country, which will in turn support the development of several industries involved in the manufacturing sector.”

said Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation while launching a report on the Indian Express Industry

Railway’s Freight Loading has increased by 3.91% from 108 million tons in March 2017 to 112 million tons in March 2018.” – Piyush Goyal, Minister of Railways and Coal shared his happiness on twitter after Indian Railways achieved growth in the freight loading capacity

We are in process of framing Air Cargo policy and inviting key stakeholders of the industry for their inputs” – said Angshumali Rastogi, Director, Minister of Civil Aviation in an event held in Delhi 6

CargoConnect - may 2018

by 2023

Rising exports and imports are supporting Warehousing Growth whereas increasing organised retail activity is pushing demand for modern warehousing in India

The Indian Aviation Industry is poised to become the third l a r g e s t av i at i o n market by the year 2020 and the largest by 2030

special feature

Digitalisation in the Air Freight Industry A Slow Walk

The outside world is rapidly changing, requiring air freight airlines to take a giant step ahead and reconsider their supply chains and the way they do business. At present, we see one significant challenge in the cargo airline industry and that is Digitalisation. Certainly, for the air cargo industry to survive, they need to adjust their business with new strategies. Digitalisation and its futuristic approach is taking the global business landscape by storm and air cargo industry is not an exception. â&#x20AC;&#x201D; UPAMANYU BORAH

CargoConnect - may 2018

special feature

hippers are increasingly willing to try ocean transport, even though it takes longer period of time. After all, they can switch to sophisticated supply chain software that boosts visibility to goods in transit, helping them balance the lower cost of ocean or over-the-road shipping with longer transit times. Three years ago, the initial e-AWB kick-off promised air cargo documents would be completely digitised by 2016. But weâ&#x20AC;&#x2122;re nearly halfway through 2018 and digital penetration has yet to hit 50 per cent. With the surging international e-commerce market, the market is ripe for disruption. But until airlines rid themselves of paper, decades-old problems will continue in the future. Full digitalisation will revolutionise air cargo, so what is holding up carriers from taking advantage of this golden opportunity? Uniting Logistics and Digital Intake The air cargo industry is defined by its fragmented supply chain, which comprises truckers, ground handlers, airlines, forwarders and shippers. The need for greater cooperation between these various parties is vital if we are to see a drop in transport times. Keeping this backdrop in mind, industry players are taking significant steps towards digitalisation in order to streamline and

may 2018 - CargoConnect

special feature “New technologies provide us the opportunity to offer more efficient and reliable processes. Data quality and consistency is improved and thus speed increases. Processes get more transparent; every party knows where goods are and through new booking platforms, even rates are no black box anymore.” Felix Kreutel Senior Vice President Cargo, Fraport AG

simplify the supply chain right from the origin to the final destination. Airfreight forwarders are working hard to manage the obstacles and leverage the opportunities. Many are increasingly offering integrated solutions, facilitating end-toend cargo delivery processes, enabling exporters to focus on their core competencies. Talking about how new technologies will help the air freight industry revamp, Felix Kreutel, Senior Vice President Cargo, Fraport AG says, “New technologies provides us the opportunity to offer more efficient and more reliable processes. Data quality and consistency is improved and thus speed increases. Processes get more transparent; every party knows

Bearing all of these in mind, Sanjiv Edward, Chief Commercial Officer, Delhi International Airport Limited, talking about how DEL Cargo has consistently introduced new technologies in its cargo handling activities over the last few years, represents a step in the right direction. He said to us, “Being India’s first IATA E-freight compliance Airport, DEL Cargo has significantly improved the efficiency and service standards by implementing the following factors: (see diagram below). Similarly, Felix Kreutel was enthusiastic to talk about FAIR@ link, the Air Cargo Community System for Frankfurt Airport. “Our newest solution for our customers, this portal will make

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where goods are and through new booking platforms even rates are no black box anymore.” According to Pratul Shekhar, Director- Air Product – India Subcontinent, DSV, “Technologies these days are changing practically every three-six months; hence airfreight industry will be forced to adapt new technology in order to keep up with the pace. Recent technologies, such as advanced analytics/machine learning/artificial intelligence/big data/ cloud/blockchain and many more can help us automate some of our back-end and customer-facing processes.” Going paperless, especially for airlines, has applications far more appealing than just environmental responsibility. E-commerce is at an all time high and global shipments are on the rise. There is still no method of transportation faster for cargo than air travel. But space, fuel, and money are the roadblocks to more international e-commerce, and excess paper is a big expense.

10 CargoConnect - may 2018

it possible to complete the entire DGR-declaration process electronically – a world’s first. The system connects for the first time all the players in the process chain – starting from the shippers. As the innovation leader in the air cargo supply chain, we are always working on new solutions in order to offer improved services to our customers.” he said. It is worth mentioning that many air cargo industry players have started embracing technology and making substantial investments in tech start-ups working towards developing these technologies specific to the industry’s requirements. Recently, Lufthansa Cargo has taken a stake in Fleet, a US based online marketplace, matching customer’s demand for freight services with free capacity provided by logistics companies. The move is part of a “strategic commitment” towards improving airfreight’s “digital maturity level”. Lufthansa Group is also working with Switzerland-based startup Winding Tree to

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special feature “Costs are the most important deterrent. Additionally, there are a number of platforms being used. However, without any single software across India, there remains a hesitation in investing. We have old, loyal and hardworking staffs who still need time to adapt. We also have a large young work force familiar to “copy pasting” in MS Office products.” Samir J Shah Immediate Past Chairman, FFFAI, and Partner, JBS Group of Companies

build blockchain-based travel apps. It has agreed to participate in the pre-sale of Winding Tree’s cryptocurrency Líf, which would then be used to finance a blockchain digital marketplace for travel. In order to bring the world of logistics and digital transformation together, IATA has said it would like to see more of its members adopt digitalisation, through which data and material flows are seamlessly integrated into the supply chain. Paperwork should be kept to a minimum.

J Shah, Immediate Past Chairman, FFFAI, and Partner, JBS Group of Companies says, “Costs are the most important deterrent. Additionally, there are a number of platforms being used. However, without any single software across India, there remains a hesitation in investing. We have old, loyal and hardworking staffs who still need time to adapt. We also have a large young work force familiar to “copy pasting” in MS Office products. They need to accept that usage of all fingers and original input is the correct way of working and the way ahead. The journey has begun and survival will be for companies that are technology driven.” On the other hand, Sanjiv Edward mentions a few deterrents coming in the way of faster acceleration of the digitalisation process amongst cargo players in India:

Complexities holding back Air Cargo from Digitalising The cost of data integration is a factor that is stopping small and medium-sized companies from investing in paperless air cargo. Until they see the prospect of enhanced profitability, many companies will simply stay out of the digital loop. Despite huge advances in IT industry, digitalised air waybill data transfer is a major hurdle, as only a limited number of airlines are capable of transmitting airway bill data digitally. With no guarantee that their businesses will see a return on any investment in game-changing technology, a comprehensive worldwide e-freight platform will remain a pipedream, experts warn. Pointing out the underlying issues in the Indian context, Samir

12 CargoConnect - may 2018

• Legacy System, wherein many air cargo carriers are still maintaining and operating their own legacy IT systems, which slows their reaction times and puts them at a competitive disadvantage. • Inefficient use of data, and a lack of adequate mechanism. • “Lowest Common Denominator Effect”, i.e. not all service providers in cargo industry are at same page, which could span several different continents and companies, do not have the adequate resources and technological know-how to provide prices and information online as is required to line up a fullydigital transaction. • There is a huge gap amongst few freight forwarders; some are fully embracing digitalisation and an online experience, while others are slower than ever. • In India, there is lack of knowledge base and digital awareness, especially about technological innovation, ideas like 3D printing, the Internet of Things (IoT), drone delivery, and augmented reality, etc. • Lack of availability of common IT platform viz-a-viz availability of resource to compute with latest virtual IT world. Pratul Shekhar also puts up his views on why air cargo players are slow on the digital uptake. He says, ‘’the air freight supply chain consists of many parties, shippers, forwarders, truckers, regional warehouse, consolidation at hub warehouse, airlines origin, and destination, etc. Even today, in many parts of the world air cargo has to be accompanied by many shipment papers,

special feature “Going paperless, especially for airlines, has applications far more appealing than just environmental responsibility. E-commerce is at an all time high and global shipments are on the rise. There is still no method of transportation faster for cargo than air travel. But space, fuel, and money are the roadblocks to more international e-commerce, and excess paper is a big expense.” Pratul Shekhar Director- Air Product – India Subcontinent, DSV

which are mandatory, such as declaration/various documents. All paper work should flow seamlessly through the interface which can talk to various softwares for movement from origin to destination. This currently is a challenge. None of the players own or control complete supply chain process, and that the same is managed through various intermediate vendors and hence getting all the stake holders to come together on the same level with transparency is the current issue. A lot of players are still hesitant Internet of Things services spending worldwide from 2014 to 2017 and expectations in 2020 (in billion U.S. dollars)

“The e-commerce business asks for fast and reliable delivery and the possibility to track the shipment. It thus forces our industry to increase efficiency, to share data and offer data transparency. Integrators, new players like Amazon and sea freight are already making much more use of the offered possibilities and are therefore often able to offer a better product. The “traditional” air cargo industry has to hurry in order to be able to compete with them. Digital transformation is not about changing individual processes, but revolutionising the interface between the different players”, shares Felix Kreutel.

600

481.8

500 400 300 200

156.8

192.9

234.8

284.8

100 0

2014

Source Gartner c Statisca 2018

2015

2016*

2017*

2020*

Additional Information Worldwide; Gartner; 2014 to 2016

in choosing the digital option as it demands absolute alignment and transparency.” Only collaboration and digitalisation will drive the future of the air cargo logistics chain, but the main question lies on how to move from an ego-system into an eco-system. Another concern that rises is, whom to partner, how to partner and how to ensure that the physical transport will go on its seamless way? E-Commerce stimulating Digitalisation The world of logistics is on the cusp of radical transformation, fuelled by the rapidly growing e-commerce industry, rising consumer expectations and digital technologies. As worldwide trade grow, so will the opportunity for air cargo carriers to transport more products. Space and weight will become increasingly valued. Given the recent dip in cargo revenues, this could present a grand opportunity for airlines that embrace digitalisation.

14 CargoConnect - may 2018

Sanjiv Edward, also certainly thinks so. “Digital Technologies have completely revolutionised the retail industry, buying patterns and consumer expectations, and will continue to do so. With the advent of gradual increase in global e-commerce, Indian market has witnessed tremendous growth in e-commerce during the last 3-4 years. With cargo capacity potentially increasing faster than cargo demand due to extra passenger flights and larger aircraft, the cargo capacity management has become the number-one challenge for airlines. In this environment of unconstrained capacity, the traditional approach to yield management will not work, as airlines may dump cargo space onto the market, creating a price war. This will require airlines to provide their alliance partners with transparent, real-time access to available capacity and predictive analytics to determine best routes based on speed, reliability and cost.” Research states that by 2020, 900 million shoppers will spend $1 trillion worldwide on e-commerce. And while cargo ships are still viable options, buyers expect much faster delivery. Indeed, the challenge is to stay one step ahead in satisfying customer expectations by welcoming the boon of disgitalisation. Rise of Start-Ups for a collaboration model Besides digitalisation in general, a major impact on the air cargo industry has been most evident with the rise of new tech start-ups, or ‘virtual forwarders’. These companies have launched apps that drastically simplify the process of booking, price comparison and route selection. Underscoring how new start-ups will take over the market

special feature “Many start-ups have successfully digitalised one or more parts of the value chain, such as quotations or invoicing, but none of them covers it in full. That probably wouldn’t be possible without partnering with traditional cargo players, since the full range of services requires physical assets, such as cross-docks for inland transportation of cargo.” Sanjiv Edward Chief Commercial Officer, Delhi International Airport Limited

in bringing shippers and airlines together, Samir J Shah, says, “The older companies have had enough problems over the years to be able to try new things easily. There is an inherent fear of the unknown. They are also victims of their knowledge and are caught in their experiences. The start-ups have no history and are primarily entrepreneurs with guts and bravado. They find usage of new models and techniques much simpler and easier than the older companies. Nonetheless, both must recognise that change is the way ahead and must use each and every new technique and technology before settling for something they are comfortable with.”

A special report conducted by the World Economic Forum, states that digitalisation could assist in reducing logistics-related emissions by as much 10 to 12 per cent by 2025. Raising the concern of why the Indian air cargo industry needs to cooperate and integrate data and material flows, Sanjiv Edward shares, “In India, during last 2-3 years, newer start-ups are upping the ante in offering faster, smarter and more costeffective services using data analytics. Tech-driven startups are disrupting traditional players in two ways - firstly, creating on-demand marketplaces that address information asymmetry and facilitate price discovery, thereby increasing utilisation levels, and secondly, by adopting core innovations like route optimisation, telematics and data analytics. This will lead to transparency, speed and customer satisfaction.”

16 CargoConnect - may 2018

“Today, no digital forwarder provides the full breadth of traditional forwarding services. Many start-ups have successfully digitalised one or more parts of the value chain, such as quotations or invoicing, but none of them covers it in full. That probably wouldn’t be possible without partnering with traditional cargo players, since the full range of services requires physical assets, such as cross-docks for inland transportation of cargo. In short, only collaboration of traditional cargo players with start-ups through digital platform, will drive the future of the air cargo logistics chain, and how do we ensure that the physical transport will go on its seamless way with back-up of tech support, needs to be looked upon to unveil the future air cargo business,” he further adds. Thus, collaboration is the only path towards progress, with the end-customer providing the pressure for change. Start-ups can be a catalyst for positive change, but one has to be aware about finding the right partners, with whom they are willing to collaborate. Future Outlook It is voiced that in near future; there won’t be supply chains any more but supply networks. We will see more start-ups entering the fold that will able to offer shippers app-based business to consumer (B2C) services at much lower costs. Digitalisation indicates a new way of working that needs to be developed collaboratively. It is therefore high time to get over the traditional paper methods and make concerted efforts towards digitalising the air cargo supply chain, for it has more to offer than just transparency and online tracking. Digitalisation has transformative capabilities that can and will enable more flexible and agile business processes which will leverage the explosion of data and harness it for data-driven workflows across organisations. Electronic messaging, smart data sharing platforms, blockchain technologies will simplify and change the flow of information between the stakeholders. Internet of things (IoT), connected devices, augmented reality (AR), and artificial intelligence (AI) will help to make the physical flow of goods more efficient, safer and easier.

cover story

voices of the pioneers 18 CargoConnect - may 2018

cover story

The Indian Logistics Industry, once regarded as â&#x20AC;&#x2DC;insignificantâ&#x20AC;&#x2122; has witnessed major transformations in the last few years. From manual work to automation, robotics, computerisation, standardisation, and IoT - the industry is exposed to all. In this article, Veteran Logistics Service Providers, dedicated to this industry, candidly share their personal experiences of serving the industry for decades, and industrial revolutions they have witnessed. They also puts forward message for young logistics aspirants. - Ritika Arora Bhola

may 2018 - CargoConnect

cover story

I came to this industry by default and just loved it”

Ram Menen

Former Divisional Senior Vice President, Emirates SkyCargo and Independent Director in the international board of EEFL (Expofreight) Journey So Far As was the case with most of my generation’s folks, I came into this industry by default and just loved it.

Industrial Revolution The industry has gone through some major changes. When I first came into this industry, it was very fragmented. Air, ocean and land transportation, all were isolated and worked as separate entities, and there wasn’t much inter-alia communications. Forwarders were more of agents and brokers and forwarding was just finding its feet. However, this has all changed, driven by the science of supply chain management and all elements now realise that they are part of one chain. Every aspect of manufacturing processes starting from inventory management to logistics has changed. Globalisation of production and marketing has brought in better cost-efficiencies. Driven by technology, the changes are now evolving faster than ever and now digitalisation is driving the growth of e-commerce. Archaic government regulation from protectionism has changed to facilitating smoother international trade and commerce. We are currently in a very dynamic evolutionary stage where old rules don’t apply and new ones are not written.

Message for Logistics Aspirants My message to the ones who aspires to be in this industry is that, this a very exciting market with tremendous scope for making a difference. Science of supply chain management is quite exciting, and is open for disruption in today’s evolving world of e-commerce. Without this industry, trade and commerce would come to a grinding halt.

20 CargoConnect - may 2018

cover story

The industry has become A vital link for business”

Tushar K Jani

Chairman, Cargo Service Center Journey So Far My family has been in this industry since 100 years. So I would say I have grown up in the family of freight forwarders. I entered the logistics industry in the year 1976. Earlier, the industry was considered primitive, unimportant and freight forwarding was regarded a labour job. Today, after 40 years, the industry has become vital for business. It’s been a great journey, I have learned a lot and will continue learning.

Industrial Revolution The industry has evolved over time. Now we have everyone from 3PL to 7PL working with us. At present, there’s engineering work, automation, IT and much more. Earlier, it was all manual work. The beauty of this business is that we get to work with everyone – airlines, custom agents, shipping lines, freight forwarders and manufacturers. We have high-end technology including standardisation, containerisation, IoT, communication, etc.

Message for Logistics Aspirants Logistics can’t be taught through theory. It is important to learn theories but like it is said, ‘practice makes a man perfect,’ logistics activities can be learned only through practice. It is an everyday job. One should be ready to learn and deliver on time. One should be agile, knowledgeable and ready to work with determination.

22 CargoConnect - may 2018

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cover story

my experience has been fruitful and driven with confidence”

Bharat J Thakkar

Co Founder & Joint Managing Director, Zeus Air Services Pvt Ltd Journey So Far My journey has witnessed fruitful results, which has given me the confidence to overcome speed breakers. Since the beginning of my career in this business back in March 1973, I have continously welcomed the growth with systems driven processes and have effortfullty tried contributing to the industry in whichever way possible. Nonetheless, I have received the same in abundance from all.

Industrial Revolution To start with, French Post is an IATA accredited forwarder but not India Postal Service, though the latter has reached every corner of India. Having said that, as a forwarder, a Boeing 737 Aircraft with 180 passengers, on arrival are able to clear customs duty payable within an hour and go back to its place of origin, while on the same plane if you place only 2 tons of cargo or even less, it takes days for pickup, post clearance. We need Paper Less System driven processes without human intervention. If our regulators have staff shortage, they need to strategise and implement policies, so that things move faster from far-fetched locations. Stakeholders don’t sing the same song; airlines, forwarders, terminal operators, all have one aim but they work in isolation. But, Digital India dream means all should be players of the same system With these challenges for air cargo, we need to work together as an industry to improve competitiveness and protect its value proposition. Otherwise, in any case LMP will take away business with integrators. As air cargo gets competitive and airlines are connecting to destinations like never before, a forwarders responsibity invigorates. As an industry, if we are to witness growth, the industry must collectively embrace an agenda for enhanced quality, efficiency and security.

Message for Aspirants I would like to share a lesson written by my friend Prakash Iyer, “Baby Giraffes never go to school but they learn very important lesson rather early in their life. The birth of a baby Giraffe is literally an earthshaking experience. The baby falls from its mother’s womb some 8 feet above ground. It shivers up and lies still to weal weak to move. Happy to see the baby standing on its own feet the mother Giraffe comes over and gives it yet another kick. The Baby falls one more time, but now quickly stands up. Here is an important lesson, no matter how hard you fall always remember to pick yourself up and get back on your feet. That’s why industry says, “We the forwarders are the unsung heroes and the backbone of global economy.”

24 CargoConnect - may 2018

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cover story

Logistics aspirants should upgrade their knowledge and skills”

T Venkataraman

Managing Director, Goodrich Group of Companies Journey So Far Forty two years back, when I started my journey, this sector was known as the Shipping Industry. I had the fortune of experiencing multiple aspects of this industry, which later on came to be known as the Shipping and Logistics Industry. I have handled right from a single CBM of LCL cargo to fixing up post Panamax vessels; in the interim was fortunate even to own ships. The length of my experience was divided into three different companies which now I call as institutions or the alma mater. The first was with the pioneering Indian shipping Company, ‘Scindia’, then with companies belonging to the famed ‘Transworld Group’, to the currently owned entity ‘Goodrich Group of Companies.’ One experience that really stands out high in my career is, when together with my Co-Managing Director, R Gopal, I could develop and nurture Goodrich Group from a fledgling outfit to a massive collection of Companies boasting 14 different activities; all of them in Shipping and Logistics and a geographical expanse of 24 offices in India and 14 overseas. Today, the opportunity to increase my knowledge and skills is limitless.

Industrial Revolution The metamorphosis of this industry has been something which even the most knowledgeable or visionary among the Shipping Pundits could never predict. There have been sweeping changes, so much so that when one looks back we tend to wonder as to how the industry could survive without the current changes. Liner Shipping today is most dominantly done only in Containers (of different types and sizes) and burgeoning sizes of container ships and increasing number of mega terminals.

Message for Logistics Aspirants I exhort youngsters desiring to make a career in the Shipping and Logistics Industry to urgently upgrade their knowledge and skills as this Industry is advancing. Those among the youngsters who fail to do so might surely fall by the way side. They have to imperatively develop in the sphere of technology which is threatening to render most jobs redundant over a period of time. In various forums, today, Industry experts do not fear to talk about the building of the “Crew-less Ships”. Such is the vengeance with which technology is trying to render a “Dinosaur” of the current system.

26 CargoConnect - may 2018

Air Freight Forwarders & Consolidaters

HO : 2 E & U, DCM Building, 16, Bharakhamba Road, Connaught Place, New Delhi-110001 T: + 91.11.47343502-16 F: +91.11.47343501 E: info@perfectexpress.in W: www.perfectexpress.in OUR BRANCHES: MUMBAI, CHENNAI, BENGALURU, HYDERABAD, KOLKATA, AHMEDABAD

cover story

One should have high drive to improve quality, improvise situations”

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

Journey So Far My journey so far has been challenging and different in its own way. There was less monotony. I rarely found any dull moment.

Industrial Revolution Concerning logistics and export industry, though we have seen steady growth in exports and serious logistics in play over the decade, it’s still not upto international levels on the mechanisation front. This ultimately suppresses the volume development. Similarly, skills in areas of machine usage, logistics knowledge and process management is still limited. Policies have witnessed a sea change. Sometimes it makes things complex. On the IT front in logistics, we have leapfrogged but lack in interconnectivity and networking of systems are still operative in islands. In general, efficiency and improvement are desired at transactional level.

Message for Logistics Aspirants One should have passion to find solutions, zeal to achieve efficient, simplified transaction management. ‘Never give up’ attitude and accepting fact that there is always a better way of doing things. High drive to improve quality and improvise situations are some attributes I would recommend to young serious players.

28 CargoConnect - may 2018

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cover story

There has been paramount change in the way industry has evolved”

Keku Bomi Gazder

CEO, AAI Cargo Logistics & Allied Services Company Limited Journey So Far If I were to put it as an artist, I see the open sky as a Huge Canvas awaiting endless opportunities to be scripted on the same. My experience in the aviation industry is of rich and varied opportunities. Of course, there were challenges along the way, which I enjoy converting them to opportunities.

Industrial Revolution Overall, there has been a paramount change in the way this industry has evolved especially on the IT front. Yet I am still confronted with challenges that are no different from where I started 26 years ago. We still have long paper trails, manual airway bills. Even today about 90 per cent of the time of delivery cycle, the cargo is on ground on account of dwell times. So, all the automation we take into account and the process that the industry initiated has not in real terms reduced the total transportation times. I often say - The most perishable commodity in our business is not “Perishables” as we know it for that can await the next flight but once the aircraft doors are closed, any available capacity is a lost opportunity that has already perished.

Message for Aspirants One clear message for those who aspire to work in the Logistics Industry is - make aviation industry your first choice to work not your last alternative. Clearly, I am convinced that as an industry, we are no longer a transporter of cargo, We Transport Businesses, as aviation industry justifiably known as “The Enablers of Businesses.”

30 CargoConnect - may 2018

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cover story

The trade is offering great opportunities for expansion & growth”

Vipin Vohra

Chairman and Managing Director, Continental Carriers Pvt Ltd Journey So Far Looking back, it has been a fantastic journey, spread over 60 years and involving three generations. Our family business, established by my father (late) TN Vohra in 1957, under the banner ‘Continental Carriers’, was one of the few known freight forwarding companies in Northern India. (Late) TN Vohra, a born leader and pioneer in the industry, had set up and headed various trade associations, for long. The Company started with import clearance in 1957, added export activities in 1967 and started import consolidation in the year 1987. The Company was mandated to handle Delhi Airport’s import cargo during the period 1979-86 and assigned export cargo handling by few major international Airlines in their export warehouses. Journey has been challenging, rewarding, growth-oriented, and promising. We have grown in strength and spread our network to many other cities and entered into business tie up with many foreign partners, across major cities in the world. We have 17 branches, spread across all major cities and production centers in the country.

Industrial Revolution India’s international business was absolutely controlled and regulated until the year 1992. This trend changed with the economic liberalisation by the Government in 1992-93 and export and import started registering manifold growth. Multinational companies entered the market ringing with them professionalism, which forced Indian firms to perform better in order to survive. Many domestic companies were merged with larger foreign entities.

Message for Logistics Aspirants Logistics service is sustaining and moving on trust between the stakeholders. Young logistics service providers need to live with the reputation and goodwill and perform within an acceptable sphere; without drifting into danger zone. The trade is offering great opportunities for expansion and growth.

32 CargoConnect - may 2018

cover story

work to your satisfaction, not someone else’s satisfaction”

Samir J Shah Partner, JBS Group of Companies Pvt Ltd

Journey So Far I was born to a Licensed Custom House Agent and a Doctor. Medicine was not a priority but history was. My father would have none and so I was groomed to take on this role. It is important to share that though I was the boss’s son, there were no privileges in the office. Being a Chemistry graduate, I was made to study accounts, Management and Law. Since the opportunity was there, I went to Austria to study Freight Forwarding followed by internships at Hamburg port and Vienna airport. On my return, I started right at the bottom - ordering tea or coffee from the tea stall across the street to manning the reception and dispatch departments. I visited practically all shipping lines; airlines offices to collect delivery orders and release bills of lading. Mumbai Docks did not have conveyance facilities and we often walked 4/5 kms everyday for customs clearance. Those were the real learning days. I am grateful to each person who crossed me then for all the learnings that I acquired.

Industry Transformation I find it difficult to compare since almost everything has changed. The importance of domain knowledge and human interface has been replaced by standardisation and technology. The shift to importance of domain knowledge along with technology as is now being seen is welcome. All changes are good. What is noteworthy is the adaptability of the industry and its stakeholders. The agility; adaptability; and dynamism make this an interesting place to be in. A few decades back, we were an industry very low in ratings. Now, we are moving up. Many institutions are offering curriculums such that we are on the way to become an industry of choice rather than one for those who did not get jobs.

Message for Logistics Aspirants Service is when you do something to help others do their work better. The burden of doing a good job is on the service provider and not the receiver. Do work to your satisfaction and not someone else’s satisfaction. Your satisfaction can be touched only with sincerity; hard work; acquiring good domain knowledge - the quest has to be continual. I don’t believe I have reached even a fraction of my potential - there are still many milestones to be achieved.

34 CargoConnect - may 2018

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cover story

You need to be Optimistic in Times of Crisisâ&#x20AC;?

Veli Polat

Senior Director Sales, Lufthansa Group Airlines Greater China Journey So Far I have been active in this industry for more than 20 years. What basically attracted me was the chance to work for Lufthansa Group, one of the leading aviation groups worldwide. At that time too, it was a brand. I started as a management trainee at Lufthansa Cargo and have always stayed with them. My experience so far has been great. Excitement is still there, but there is volatility in our air freight market. Whenever a crisis arises, we feel forced. But at the same time, with a peak in demand, as people now have a strong buying power and feel the confidence of purchasing and consuming. We are the first to get a feel of the product, because we transport high value products. Therefore, the volatility is great.

Air Cargo Industry: Transformation I think the biggest change in our industry happened on the ground and not in the air. We do have many modern aircrafts, engines, which are economic in fuel consumption. But the impact of basically what happened on the ground, especially with digitisation, has been revolutionary. As far as I can remember, when I started in 1994 - 1995, e-mail accounts came into being, at a very slow pace, and today we have world class technology. Thus, the biggest changes are happening on the ground level in all aspects. One thing which still stays is our dependence on the global process chain. We are also depending on the people who are part of this whole chain. Each process chain has to be hundred per cent accurate. Otherwise, we will not get the quality standard which we aim for.

A Message for Aspirants Human resource for me is the task of the management. I personally involve myself in hiring people in our organisation. For me, the best grades are important but not as important as the personality of an individual. Excitement for the job is something I look for in a candidate. An aspirant can apply for various job opportunities in aviation like sales, IT, handling, process management, etc.

36 CargoConnect - may 2018

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cover story

Youngsters should think seriously about Air Cargo Industry”

Sunil Arora

Managing Director, Delta Air Freight Services Pvt Ltd ,

Journey So Far We started Delta Air Freight Services Pvt Ltd in 1987. I had done my graduation in Pharmacy and the turning point in my life was when I had to take forward my father’s business of freight forwarding. But this was also interesting and we lived it happily. My journey in the industry has been fantastic. Its been an excellent experience - full of learning and challenges.

Industrial Revolution Industry has transformed in a unrelenting way. There’s automation, paperless transactions, digitisation and standardisation on initiation. In fact, we are happy with the initiatives and work done by the government, especially the Ministry of Civil Aviation for Indian air cargo logistics industry. Few years back, the focus of the government was mainly on passenger traffic but since last few years I have seen a dramatic change. The ministry has deployed a dedicated team who is looking after cargo industry. Recently, the government has also launched National Air Cargo Community System, embedding the country’s logistics scenario in one single platform. Our airports are getting automated and developed, and the custom department is improving their facilitation process and constantly supporting us, unlike earlier. Now, I believe, we are on the right track.

A Message for Aspirants Not many younger people are joining the industry. This is a big challenge, because after doing MBA, there are very few people opting for logistics and supply chain management business. We need to encourage more and more youngsters to come to the industry. They should be made aware of the demands. There are lot of vacancies and positions available. Definitely, there are ample opportunities and youngsters should seriously think about it.

38 CargoConnect - may 2018

focus

Digitisation The Future of Trucking

With over seven million freight vehicles moving around the country and volume of about 1,325 billion ton/km, a figure that is expected to double by 2025, India is at a must-win situation as far as the trucking domain is concerned. With such huge prospects, it is no surprise that just like the other modes of cargo; the trucking industry too is gearing up to undergo a technological paradigm shift. Gaurav Dubey finds out with the help of industry experts what we can expect from this booming segment in the coming years.

40 CargoConnect - may 2018

focus

his “digitised trucking” and the logistics industry of which it is a part, is still at least a decade in the future, but parts of it are already being put in place — thanks largely to two major global trends that are transforming the trucking industry. First, efforts on the part of regulators around the world to manage climate change and to save energy and resources are forcing the industry to develop cleaner, more efficient trucks and optimise the use of heavy vehicles. Second, social and cultural changes are opening up new markets and increasing expectations for the efficiencies to be gained through autonomous vehicles and the digitised supply chain.

The effect of these trends isn’t just a matter of how trucks move down the highway, or how the global supply chain is managed. Rather, digitised trucking will transform how virtually every stakeholder in these linked businesses — original equipment manufacturers (OEMs), logistics companies, warehouses, and local delivery businesses — will operate. Some stakeholders will see a wide range of new business models open up, while others will likely struggle as their roles in the logistics chain are diminished. Digital technologies have permeated and disrupted almost all sectors, and logistics companies are no exception.

may 2018 - CargoConnect

focus Indian transportation systems are increasingly getting digitised. As India continues to reinvent existing processes, tech-enabled transportation solutions will become the anthem of ongoing change.”

Dileepa BM CEO Bonded Trucking, Shreeji Translogistics Services Ltd – India Optimisation and efficiency, combined with speed and seizing the moment are the keys to success in today’s highly competitive advantage. Technology is the key enabler allowing companies to realise these aspects. A report by Transport and Logistics Analysts, Oliver Wyman, reveals transportation and logistics companies

increasing revenue, yet having reduced profits, over a 10-year period, and come with the recommendation to “standardise and streamline structures and processes, developing industry oriented and innovative solutions, th in k ing and acting in ter ms of networks.” On average, transportation companies invest about 5% of their annual revenues in digital operations, with the main focus on digitising their customer interface. The thrust these days is especially on mobile apps and solutions, to offer a personalised experience for their customers, and track the movement of vehicles accurately. However, side-by-side companies are also increasingly using digital technology to unlock new business models, focused on

42 CargoConnect - may 2018

the creation of value-added services and innovative solutions. Proactive transportation and logistics companies seek to go beyond merely improving their operational efficiency and retaining greater control over their operations, to enhance customer satisfaction. Digitisation in form of utilisation of industry specific enterprise

solutions that would automate in-house business processes from sales to MIS and community platforms that which connect them to their stakeholders digitally, is driving the much necessary soph ist icat ion to t he i ndust r y’s operations.

Unlocking avenues through Digital Logistics in India is characterised by an incompetent system, sheathing infrastructure, lower average trucking speeds, congestion and blockages in surface transport, and other issues. Transportation costs in India are high on account of a combination of factors such as vehicle quality, stressed drivers, overloading, poor road infrastructure, low average speeds and excessive taxes

and toll. Digitisation drive in logistics sector is in motion and set to fast-track moving forward. In view of rising customer demands, increasingly cost competitive market, every company in transportation and logistics sector requires implementing digitisation and data analytics so as to not loose opportunities for refining its costs and returns point compared to its market peers. R Shankar, CEO, T VS Logistics Services Ltd – India said, “While we are a long way from digitisation in India with respect to trucking, some steps in this direction are visible. As trucks move today, using a combination of technologies, they are generating a wealth of information and data from transport infrastructure, vehicle utilisation to remote maintenance. This is helping boost efficiency and safety on the road. Uberisation of trucks (connecting network ecosystem or online freight matching platforms) is gaining momentum and there is visibility between demand and supply. Even smaller service providers can get aligned on such platforms; and this is especially true for short haul movements. GPS is becoming a norm for most companies now for asset visibility but even those organisations that don’t utilise GPS are adopting some or the other form of track and trace.” Like most other things, digitisation too will need time for introducing itself to the Indian client base. Sandeep Chatterjee, Senior Manager, Deloitte said, “The truck industry is heavily fragmented in India and there are many

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focus Introduction of mobile solutions including GPS enabled longitude-latitude coordinates in fleet management is set to revolutionise it and provide end to end visibility besides convenience in business by altering the whole processes of dispatch and scheduling, driver and vehicle tracking, driver productivity, fleet maintenance, load management, pick-up and delivery.”

K Satyanarayana Co-Founder and Director, Ecom Express Pvt Ltd

On similar lines, Shankar said, “3PL

44 CargoConnect - may 2018

Meanwhile, the increasing influx of international logistics service providers (LSPs) are prompting third-party logistics (3PLs) and domestic LSPs to expand their footprint and focus on transportation service, warehousing

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Log istics compa n ies a re ma k i ng concerted efforts to keep pace with this growth in demand by digitising their solutions and offering online freight services. These services will provide visibility across the supply chain and transform it into an organised industry. Some of the advanced technologies adopted include automated storage and retrieval systems (ASRS) in warehouse and transportation, radio frequency identification (RFID) in place of bar codes, and global positioning system (GPS) for real-time tracking.

customers based on this.”

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operators like TVS Logistics will play a key role in utilising technology to enhance visibility of load carriage, turn-around time, vehicle utilisation, improving loading/unloading time by removing congestion at the docks, etc. We are already using cutting edge technology and software for load design

So u

players with a smaller fleet size. In addition to that, there are unions which call the shots. Though digitisation has transformed the taxi segment, this will not happen immediately in the trucking sector. Lack of awareness and limited access to technology are further inhibitors to digitisation in this segment. Since there is cartelisation in terms of rates, integration of shippers and end users is going to take time. There are aggregators who have tried to build a marketplace but they have not been very successful. But things are changing and we will see this integration in the long term. With lower costs of technology and access to open source, technology is not the challenge. Tech-Logistics players are providing innovative solution in terms of tracking via GPS, truck load optimisation and route optimisation. For the first time we are seeing a plethora of Tech-logistics players who are providing multiple solutions and industry has embraced a few of them.”

solutions, vehicle geo-tracking, inventory (order/part level) tracking, and route optimisation to add more value to our customers’ supply chain. TVS Logistics is also building and experimenting with tools for collection and evaluation of large amounts of data to facilitate predictive and prescriptive analysis and for identifying increasingly efficient and safe transportation solutions for

and freight forwarding. It will also open up opportunities for partnerships, and domestic logistics companies will have access to the modern technologies introduced by global service providers. K Satyanarayana, Co-Founder and Director, Ecom Express said, “Fleet management is the backbone and core of logistics activity and vehicle tracking and

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focus 3PL operators like TVS Logistics will play a key role in utilizing technology to enhance visibility of load carriage, turn-around time, vehicle utilisation, improving loading/unloading time by removing congestion at the docks, etc.”

R Shankar CEO, TVS Logistics Services Ltd – India management form the basic classification of any fleet management. Introduction of mobile solutions including GPS enabled longitude-latitude coordinates in fleet management is set to revolutionise it and provide end to end visibility besides convenience in business by altering the whole processes of dispatch and scheduling, driver and vehicle tracking, driver productivity, fleet maintenance, load management, pick-up and delivery.”

in developing technological solutions that are accepted as industry norms by rank and file. Trucking industry is also witnessing a plethora of online trucking marketplaces which connect the users of the trucking services to the service providers and also lend the capability of price discovery. Another important digital trend which presents opportunities for the trucking industry

Powered by Technology Digitally enabled, cloud-based solutions like Fleet Management Solution (Helios) from Kale Logistics Solutions, that is specially designed to enhance fleet operations has driven the previously semi-automated and paper based setups to become much more organised and automated. Through mobile integration, the concept of digitisation has been taken further. Optimal route planning, combined with real-time tracking of cargo movement through mobile apps enables routing of cargo by avoiding congestion points and trouble spots, to minimise risks and interruption. This has translated into reduction on costs, increase in customer delight and ultimately escalation in business volumes for truckers. In this regards, the role of Tech-Logistics players in making digital solutions viable and suitable for industry needs, is undisputed. Tech-Logistics players apply a wealth of data related to the movement of goods and trucks to identify patterns related to customer trends and unearth market insights to develop industry’s best solutions. A considerable domain expertise and the latest cutting edge technology goes

46 CargoConnect - may 2018

Perhaps the best way to understand the technologies that are already being implemented in the trucking industry, and how they will transform the industry’s many stakeholders, is to break them down into two primary areas: the truck itself and the logistics chain of which it is an essential part.

stems from creation of new generation airport and port community systems, created by Kale Logistics solutions. These community systems bring together the constituents of air and marine cargo supply chain who in turn can use these platforms to connect to truckers thus creating additional business opportunities for trucking companies. It is crucial for trucking industries to also consider partnering with technologistics thought leaders to piggy-bank on their vast and extensive experience in delivering industry centric solutions. A relevant and informed technology partner can derive the much coveted business value, efficiency, cost reduction and exploration of new avenues for business growth whilst taking customer satisfaction to new levels. Perhaps the best way to understand the technologies that are already being implemented in the trucking industry, and how they will transform the industry’s many stakeholders, is to break them down into two primary areas: the truck itself and the logistics chain of which it is an essential part.

The Importance of Telematics Telematics is not just about tracking of vehicles. Telematics powered fleet management solutions offer a number of smart features that the logistics domain can use to empower their business. Fleet management solutions provide the logistics industry with accurate information on location, tracking, route, fuel level, engine idling, delivery status of goods and timely alerts for crucial parameters including over speeding, unscheduled diversions, accidents and

focus Since there is cartelisation in terms of rates, integration of shippers and end users is going to take time. There are aggregators who have tried to build a marketplace but they have not been very successful. But things are changing and we will see this integration in the long term.”

Sandeep Chatterjee Senior Manager, Deloitte incidents, maintenance status, and improper driver behaviour. • Helps logistics industry get more control over business: Getting more control over your business starts with knowing the whereabouts of your fleet and driver. It is also vital to get insights into driver behaviour. Fleet Management Solutions (FMS) allow fleet managers in the logistics business to track and monitor the exact location of a vehicle and driver. It will also send alerts on critical functions such as harsh breaking, over speeding, uncharted diversions vehicle theft, accidents, and other emergency situations. This helps avoid unnecessary repair cost, take proactive actions and also protect your goods from damages and theft. Moreover, FMS enables you to easily track inefficient driver management, unproductive vehicle utilization and gain better control of your business. • Reduces cost to improve your business: Cost reduction is the business mantra for every successful business. Fleet Management Solutions alerts you on over speeding, breaking, excessive idling, unauthorised vehicle use, longer routes and regular maintenance enabling you to take preventive steps to reduce the idle duration, maintenance cost and fuel cost. Routing plays a major role in fuel usage. Providing drivers with efficient routes can make a real difference in reducing fuel costs and also in improving delivery schedule. FMS offers you an in-depth understanding of driver behaviour. Using this understanding you can train your driver on safety driving patterns. This

48 CargoConnect - may 2018

in turn, will prevent unnecessary vehicle idling, save fuel cost and reduce frequent usage of vehicle insurance. To maximize profits, it is also essential to monitor your fuel and maintenance costs. • Improves vehicle, driver and goods safety: Safety is the key concern for every fleet owner in the logistics business. Safety and security of the drivers, vehicle movement and goods being transported can be easily monitored through efficient Fleet Management Solutions. Timely alerts will be sent to the control centre to notify them of harsh breaking, reckless driving, accident, vehicle theft & other emergency situations for which you need to take immediate and appropriate actions in order to protect your vehicle and to ensure safety of your goods. • Bridge operational Gaps: All these four major factors- more control, cost reduction, improving safety and providing better customer satisfaction- are essential to offer the fleet managers in the Logistics industry a panoramic view of how the fleet and workforce functions. It provides actionable insights to enhance business. The insights obtained can be used effectively to bridge operational gaps and strengthen core areas of business, thereby paving way for growth and revenue. Embracing telematics and taking full advantage of its features will help the logistics space offer superior customer service and outrun their competitors. Providing premium service to customers can only be possible if logistics firms get insights into end-user needs, understand fleet risks, maintenance and productivity status, staff behaviour and areas of improvement.

Smart Infrastructure to Lead the Way ‘Smart roads’ or ‘Smart highways’ gaining ground in the developed world essentially use a suite of technologies that are intended to be both interactive and largely self-powering. The concept holds tremendous potential for India considering its road network is the second la rgest i n the world a nd continues to be the most important means of transport carrying almost 80 per cent of the country’s passenger traffic and around 65 per cent of its freight. This large road asset can be leveraged for a lot more than it currently is, implementing technology innovations that yield significant improvements in the driving experience. Dileepa BM, CEO Bonded Trucking, Shreeji Translogistics Services Ltd – India said, “Indian transportation systems are increasingly digitised. Indian highways are being fitted with RFID scanners that detect auto-pay FASTags to deduct toll charges, thus eliminating toll booth queues and reducing workloads for both roadway employees and travellers. The FASTags may be purchased online, through a mobile app or in person at several authorised points of sale. The system also renders toll payments cashless, thereby encouraging paperless and transparent money trails.” The world is slowly but stead i ly transitioning to a future in which selfdriving automobiles will define the traffic landscape. Are our roads and highways equipped for this transition? Moreover with Smart Cities currently dominating discussions on the next

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focus weight, as well as scheduled route, ETA, and other relevant information, and communicate this data to a digital freight-matching platform As India continues to reinvent existing processes, tech-enabled transportation solutions will become the anthem of ongoing change.

The adoption of digital systems is likely to enable the trucking industry to incur saving on their operation expenditures going ahead

generation of urban infrastructure and transportation, Smart Highways/Roads promise to be the third link to the chain in the fight against congestion and carbon emissions, helping to ease the flow of traffic, reduce accidents and in some instances, serve as viable sources of renewable energy in their own right. Smart highways are a crucial link in improving road transportation landscape in the country.

As critical as the connected truck will be in bringing sweeping changes to the global transport of goods, it’s very connectivity will allow it to be fully integrated into the entire logistics effort. That in turn will fully enable two key elements of the effort: the integrated d ig ita l supply cha i n a nd f reight matching.

availability of the goods and timing of shipment, enabling the manufacturer to optimise its just-in-time production schedu le. Once the good s a re available, the shipment will be dispatched from the warehouse along a predetermined route. If an accident or heavy traffic impedes the on-time arrival of the truck, the system can automatically determine a new route, and send a new estimated delivery time to both the shipper and the customer. Given the delay, the system will then calibrate changes in the shipping rate and cost of the goods. Moreover, manufacturing customers whose goods are delayed will be able to make immediate changes in their production sequences to avoid loss of production capacity while waiting for the missing parts. All that’s needed now is their approval of the changes.

T he in tegrated supply chain. It will soon be possible to integrate the truck into realti me log istics d ata across the entire supply chain, from parts and materials suppliers to manufacturers to warehouses and distributors and finally to the end customer. Thus, for example, when a customer sends an order to a manufacturer, the system will send back a report on the

A u to m ated f rei g ht matching. Thanks to their ability to communicate with fleet management and with shippers of goods — and in the future with cloud-based solutions for freight matching — trucks will eventually be able to determine whether they can take on additional freight. The truck trailer itself will be able to determine through sensors its available space and

Digital logistics

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With the implementation of logistics software and vehicles connected to a GPS, tracking the fleet and managing them become extremely practicable. The applications offer solutions such as intelligent geographic routing, opti m isi ng the routes, a lter nate route planning, examining vehicle performance, fuel monitoring, accident r ep or t i n g, l i abi l it y a nd ve h ic le maintenance cost, load management, driver efficiency and much more.

Going Ahead The trucking business in India will continue to prosper, thanks to the d e m a nd cre ated by t he su r g i ng ecommerce industry and the trade friendly policies. The adoption of digital systems is likely to enable the trucking industry to incur saving on their operation expenditures going ahead. A futuristic perspective to conduct sustainable trucking operations is not just to focus on digitisation for efficient movement of goods from shipper to consignee, but to also offer several value additions, like real time track and trace, processing of returns and fashioning financial transactions too, through sophisticated IT systems. With the implementation of logistics software and vehicles connected to a GPS, tracking the fleet and managing them become extremely practicable. The applications offer solutions such as intelligent geographic routing, opti m isi ng the routes, a lter nate route planning, examining vehicle performance, fuel monitoring, accident r ep or t i n g, l i abi l it y a nd ve h ic le maintenance cost, load management, driver efficiency and much more.

We offer Peace of Mind

Everfast Freight Forwarders Pvt. Ltd. CORPORATE OFFICE: FF CS-02, Ansal Plaza, Vaishali, Opp-Dabur, Ghaziabad 201010 UP. TEL: +91-120 4184500 FAX: +91-120 4184555 MAIL: info@everfastfreight.com WEB: www.everfastfreight.com BRANCHES: Delhi, Mumbai, Chennai, Kochi, Calicut, Lucknow, Coimbatore, Kanpur, Kolkata, Bangalore

FEATURE

INDIAâ&#x20AC;&#x2122;S LOGISTICS ENVIRONMENT, 2017-18 Achievements and Prospects With a promise of growth and improvements, the service oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade. The industry, worth around USD 160 billion, is likely to touch USD 215 billion in the next two years with the implementation of GST. Rise of e commerce logistics and increased domestic consumption will lead the way for the industry in the coming years. â&#x20AC;&#x201D; UPAMANYU BORAH

ogistics Industry, regarded as the backbone of Indian economy, is evolving rapidly. The development of transportation and logistics-related infrastructure, such as dedicated freight corridors, logistics parks, free trade warehousing zones, port modernisation, and container freight stations will help to improve efficiency. Technology adoption is likely to accelerate in the transportation, warehousing and freight forwarding segments, and logistics solutions will be the driving force behind warehousing market growth.

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FEATURE

WHO CARRIES INDIA’S FREIGHT?

Shipping 12 major and 187 nonmajor ports handle about 95% of the country’s foreign trade by volume and 70% by value

WAREHOUSING

Inland waterways carry only 0.15% of the cargo transported within India

Roads

Railways Carries about 3 million tonnes of freight annually It accounts for 26% of total freight

3.83 million Km long, 2nd largest in the world Carries 85% of passenger traffic and 65% of freight

What India Lacks? • • •

It accounts for 5% of Indian logistics market (excluding inventory carrying costs)

Seamless movement of goods across modes Right inter-modal transport (costly roadways commanding 65% of freight and more 26% for railways is flawed) Skilled manpower in logistics

• • •

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

An integrated IT infrastructure with a single window system Coordination among various logistics stakeholders, ministries (the logistics division’s first inter-ministerial meeting will be held next week) Benchmarking and standardisation (Source: Ministry of Commerce and Industry, media reports)

may 2018 - CargoConnect

FEATURE

SHIPPING & PORTS Sector

The Indian Maritime Industry contributes a significant portion to the country’s economy as 95 per cent of the trade by volume and 70 per cent by value are done through maritime transport. India has the largest merchant shipping fleet among developing nations. Today, the country boasts of a modern shipbuilding and shipping sector, replete with all the variables necessary for overall industrial growth.

Financial Year’17 Exclusives In FY 2016-17, the Indian Port sector witnessed capacity growth of 1,065 million tonnes per annum (MTPA), implying a CAGR of 7.8 per cent since FY07. Between FY07–17, cargo traffic grew at CAGR 3.4 per cent. Cargo traffic during FY17 for solid, liquid and container cargo was 310.8, 212.4 and 124.6 MMT, respectively. During April – December 2017, traffic handled by major Indian ports increased 3.6 per cent year-on-year. The government has initiated National Maritime Development Programme (NMDP), an initiative to develop

the maritime sector; the planned outlay is US$ 11.8 billion. The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, reported that the Indian ports sector received FDI worth US$ 1.64 billion between April 2000 and December 2017. In May 2017, DP World agreed to develop Indian port projects and signed a MoU with the National Investment and Infrastructure Fund (NIIF), the Indian wealth fund. The projects worth US$ 1.3 billion include the development of Sagarmala and Bharatmala projects.

Major Investments/Developments The Indian Minister for Shipping, Road Transport and Highways, Nitin Gadkari, announced a massive investment in India’s ports and roads sector, which is likely to help boost the country’s economy. The Indian government plans to develop 10 coastal economic regions as part of plans to revive the country’s Sagarmala project, initiated in 2015.

The zones would be converted into manufacturing hubs, supported by port modernisation projects, and could span 300–500 km of the coastline. The government is also looking to develop the inland waterway sector as an alternative to road and rail routes to transport goods to the nation’s ports and hopes to attract private investment in the sector.

Government Initiatives In March 2018, a revised Model Concession Agreement (MCA) was approved to make port projects more investorfriendly and make investment climate in the sector more attractive. Project UNNATI has been started by Government of India to identify the opportunity areas for improvement in the operations of major ports. Under the project, 116 initiatives were identified out of which 86 initiatives have been implemented. The Ministry of Shipping, Government of India, released Rs 25 crore (US$ 3.86 million) as grants-in-aid to Jawaharlal

Nehru Port Trust (JNPT) and `50 crore (US$ 7.72 million) to the Government of Karnataka for Karwar port, for infrastructure development under the Coastal Berth Scheme of the Sagarmala programme. Rajnath Singh, Home Minister, Government of India, and Nitin Gadkari, Minister for Shipping, Road Transport and Highways, inaugurated a new sea route to Baratang Island and initiated various shipping projects in the Andaman and Nicobar (A&N) Islands; along with announcement of addition of 14 new ships in the A&N Islands over the next three years.

Way Forward The capacity addition at ports is expected to grow at a CAGR of 5-6 per cent till 2022, thereby adding 275-325 MT of capacity. Under the Sagarmala Programme, the government has envisioned a total of 189 projects for port modernisation with an investment of `1.42 trillion (US$ 22 billion) by the year 2035. Ministry of Shipping has set a target capacity of over 3,130 MMT by 2020, which would be driven by participation from

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the private sector. Non-major ports are expected to generate over 50 per cent of this capacity. India’s cargo traffic handled by ports is expected to reach 1,695 million metric tonnes by 2021-22, as against 643 million in 2014-15, according to a report of the National Transport Development Policy Committee. Within the ports sector, projects worth an investment of US$ 10 billion have been identified and will be awarded over the coming five years.

FEATURE

The ROADWAYS

Roadways already hold an estimated share of 80 per cent of the demand on land transport carrying almost 85 per cent of the country’s passenger traffic and more than 65 percent of its freight. 2017 has been a major milestone year for the Ministry of Road Transport & Highways. While the period since 2014-16 was utilised for the purposes of reform and course correction, 2017 witnessed consolidation, culmination and the rollout of a new road-map.

Financial Year’17 Exclusives For 2017-18, the transfer to CRF (Central Road Fund) was estimated at `46,907 crore. This is a 23% increase from the revised estimates of 2016-17 (`38,209 crore). During FY17-18, Government of India allocated USD 9.51 billion for development of national highways across the country. In February 2017, 6604 kms of national highways were

constructed, against a target of 15000 kms, under various road transport & highway projects. The Ministry allocated `3,108 crore towards maintenance of roads and highways. Investment of USD31 billion is expected in PPP during the next 5 years (by 2020) for national highways.

Major Investments/Developments Chenani-Nashri Tunnel, India’s longest highway tunnel and Asia’s longest bi-directional highway tunnel, between Udhampur and Ramban was made functional. India’s longest bridge- the 9.15 km long Dhola-Sadiya Bridge over River Brahmaputra in Assam was inaugurated. The seven phased National Highways Development Project (NHDP) was implemented by the National Highways Authority of India (NHAI) with a total estimated expenditure of USD 92 billion. As the largest highway development project in the country since 2000, more than 49,260 km of roads are being upgraded to match international standards.

The Government has received public sector undertakings from Malaysia & Japan for funding the upcoming highway projects in India – annuity model 60 per cent of the investment is borne by the private investors and 40 per cent by NHAI in 5 equal installments. A MoU between India and Nepal for laying down implementation arrangement on cost sharing, schedules and safeguard issues for construction of a new Bridge over River Mechi at Indo-Nepal Border at an estimated cost of `158.65 crores has been signed in August 2017.

Government Initiatives MORTH (Ministry of Road Transport and Highways) plans to upgrade 10,141 km of roads in the region through three phased SARDP-NE, which aims to improve road connectivity in all district headquarters in the North Eastern region. The government has approved the Road Requirement Plan (RRP) for the development of NHs and State Highways in 34

remote districts in states of Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Uttar Pradesh. The Bharatmala Pariyojana envisages a “Connectivity Improvement Programme” for 4 dham (Kedarnath, Badrinath, Yamunothri & Gangothri) in Uttarakhand.

Road Ahead Indian Bridge Management System, to inventorise all structures, e.g. Bridges and culverts on the National Highways. A plan for replacement of Level Crossings on National Highways by ROBs/ RUBs under a scheme known as Setu Bharatam. The Ministry is monetising its road assets constructed with public funds through Toll-Operate-Transfer (ToT) scheme. As part of the planning for Multi Modal Transport Systems, 34 MoUs amounting to about `2 lakh crores were signed at the India Integrated Transport and Logistics Summit. The launch of Logistic Efficiency Enhancement Programme (LEEP) that rests around 4 pillars: Freight aggregation and distribution, Multimodal freight movement, Storage and

warehousing, and Value-added services. Under the first phase of LEEP, USD 5 billion has been allocated for development of multimodal logistics parks at 15 locations. NHAI plans to raise USD 770 million for construction of highways, tunnels and economic corridors in the country and the ministry plans to monetise projects worth USD 2.2 billion. Several road connectivity projects with neighbouring countries have been identified and innovative initiatives such as “electric taxi project”, and “closed toll policy” (where the toll will be charged) on distance covered on the toll road. A number of Green and E-initiatives have been implemented to build a sustainable road transportation model. may 2018 - CargoConnect

FEATURE

The RAILWAY Sector Spanning 115,000 route km, India’s rail network is the third-largest in the world. Further, India is the fourth-largest carrier of freight globally. The Railways runs 12,617 trains connecting more than 8000 stations and carrying 23 million passengers, and over 7000 freight trains, carrying 3 million tonnes of freight every day.

Financial Year’17 Exclusives The overall revenue of Indian Railways stood at US$ 23.63 billion during April-February 2017-18. The passenger earnings grew to US$ 6.8 billion and the freight earnings grew to US$ 15.6 billion during the same period. Foreign Direct Investment (FDI) inflows into Railways related components from April 2000 to December 2017 were US$ 897.09 million. A plan for redevelopment of Surat’s railway station will soon

be announced requiring a total expenditure of `4,650 crore. In March 2017, Railways started a new segment of revenue generation channel through auctioning for advertising and branding contracts on 1000 trains. The cumulative savings of Indian Railways due to procurement of power under open access arrangements reached `5,636 crore during April 2015 – October 2017 and are estimated to reach `41,000 crore by 2025.

Major Investments/Developments The Indian Railways plans to invest around `3,000 crore to convert 40 out of its 100 yards into smart yards and end manual inspections. Mumbai-Ahmedabad high speed rail project was sanctioned at a total cost of `97,636 crore. As of February 2017, Indian Railways planned to manufacture

semi high-speed, 160 kmph “world-class” train under Make in India initiative, comprising 16 fully air-conditioned coaches. Indian Railways aims to increase its freight traffic to 3 billion tonnes by 2030 and have a 50 per cent share in goods movement.

Government Initiatives In order to develop three new arms of Dedicated Freight Corridor (DFC) in various regions of the country, Indian government has planned to invest `3,30,000 crores. The Ministry of Railways is set to overhaul the US$ 15.61 billion station redevelopment plan to increase the lease period for developers to 99 years. India’s first National Rail and Transportation University to be set up in Vadodara has been approved by the Union Cabinet, to skill Indian railways’ human resources and build capacity. The Indian Railways has planned to phase out diesel locomotives over the next 5 years and replace them with electric ones, which

will help them save about `11,500 crore yearly. The state government, in a joint venture with Indian Railways, has decided to build two fully electrified rail corridors worth `10,000 crore in Chhattisgarh. Indian Railways has put forward a global tender for obtaining 700,000 metric tonnes of railway track for improving track safety. With the aim of boosting connectivity between India and Bangladesh, both the countries have launched various connectivity projects including a new passenger train service between Kolkata and Khulna.

The Track Ahead The Government of India is going to come up with a ‘National Rail Plan’ which will enable the country to integrate its rail network with other modes of transport. Railway Ministry has launched the Smart Freight Operation Optimisation & Real Time Information (SFOORTI) App to optimise freight operations and manage traffic flows. A new ‘Online Vendor Registration System’ has been launched by the Research Designs & Standards Organisation (RDSO) to have digital and transparent systems and procedures. Indian Railways plans to standardise the number of coaches

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in trains tow 22 or less which will lead to running of more trains. Indian Railways has come up with a new bill tracking system for contractors/vendors of Indian Railways to track status of their bills. Indian Railways is planning to adopt European Train Control Systems (ETCS) which will help in the development of the infrastructural facilities. Indian Railways have rolled out the first 12000 HP freight locomotive from its factory in Madhepura, Bihar, produced in collaboration with Alstom, France.

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FEATURE

The AVIATION Industry India is the ninth-largest civil aviation market in the world and presently has a market size of USD 16 billion. The industry is poised to become the thirdlargest aviation market by 2020 and the largest by 2030. It is among the five fastest- growing aviation markets globally, growing at over 20 per cent year over year. In India, air freight accounts for 2 per cent of logistics movement in terms of volume, and 30 per cent in terms of value.

Financial Year’17 Exclusives FDI inflows in air transport (including air freight) until December 2017 stood at US$ 1,608.51 million. Airports Authority of India (AAI) has finalised (`17,500 crore (US$ 27.13 billion) for the next five years) and around `22,000 crore (US$ 3.41 billion) for brownfield expansion in

Delhi, Mumbai, Hyderabad and Bengaluru by private operators and around `21,000 crore (US$ 32.55 billion) for greenfield airports. Airport building and modernisation projects worth over `19,300 crore (US$ 2.99 billion) sanctioned.

Major Investments/Developments Air traffic in India rose 15.80 per cent year-on-year to 280.24 million during April-February 2017-18. During FY17, domestic passenger traffic increased by 22 per cent in comparison with growth rate of 21.24 per cent in FY16. During FY17, international passenger traffic increased by 7.72 per cent. Indian airports are emulating the Special Economic Zone

(SEZ) Aerotropolis model to enhance revenues, focus on revenues from retail, advertising and vehicle parking, security equipment and services. The E-Governance for Civil Aviation (eGCA) project envisages online service delivery, automation of systems and processes at the back-end with implementation of required IT infrastructure and service delivery framework.

Government Initiatives Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) shall connect 56 unserved airports and 31 unserved helipads across the country. AAI will undertake new development works at Lucknow, Deoghar, Rajkot and Allahabad airports. Under the second round of Regional Connectivity Scheme

(RCS 2), the government has awarded 325 routes to airlines as well as helicopter operators with the objective of enhancing flight services to hilly and remote areas. Construction of 17 highways–cum–airstrips declared. DigiYatra platform to add a digital experience for air travellers.

The Runway Operations under UDAN scheme have already started at 16 unserved airports. India is estimated to see an investment of US $25 billion in the next decade in the airports sector, and traffic growth of 13 per cent, according to Morgan Stanley. AAI is going to invest `15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones. Allocation to Civil Aviation Ministry has been tripled to `6,602.86 crore (US$ 1,019.9 million) under Union Budget 2018-19. 300 business jets, 300 small aircraft and 250 helicopters are expected to be added to the current fleet of Indian carriers in the next 5 years. AAI aims to bring around 250 airports under operation across the country by 2020.

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The Prime Minister of India launched the construction of Navi Mumbai Airport which is expected to be built at a cost of US$ 2.58 billion. AAI has allocated around `3400 crore for the upgradation of airports in the North East region. NABH Nirman aims to expand airport capacity by more than five times to handle a billion trips in a year. In the coming 20 years, Indian companies will buy 2,100 new planes worth US$ 290 billion. Also, domestic air traffic in India is expected to cross 150 million in FY19, on the back of unprecedented capacity induction by airlines. Government on June 24th, 2017, cleared the proposal for setting up a greenfield airport, named (Taj International Airport), in Jewar, Greater Noida. India’s first aviation university at Fursatganj in Uttar Pradesh’s Rae Bareli district inaugurated on August 2017.

FEATURE

WAREHOUSING Sector

Warehousing forms a crucial link in the overall logistics value chain. It accounts for 5 per cent of the Indian logistics market (excluding inventory carrying costs, which amount to another 30 per cent). The size of the Indian warehousing industry (across commodities and modes) is pegged at about INR 560 billion. Modern Warehousing in India is growing at a rapid pace of over 10 per cent annually.

Financial Year’17 Exclusives Goods and Service Tax (GST) will simplify trade tax. Leasing transactions in the warehousing sector across key

markets burgeoned to 25.7 mn sq. ft, an 85% spike yearon- year.

Major Investments/Developments The Indian Supply Chain Industry is growing at a rate of 6 - 7 per cent per year. India’s cold chain sector has been growing at a CAGR of 28 per cent from the last few years. Demand for luxury products in India is growing at 25 per cent year-on-year. Pharma and biopharma industry is growing at 23 - 30 per cent yearly. The flower segment is growing at 25 per cent year-on-year with demand in export.

Domestic and export demand for spices is growing at 21 per cent year-on-year. The total liquid bulk traffic has been growing at a CAGR 8 - 9 per cent. CFS/ICD has grown with a CAGR of 10 - 15 per cent over last few years. Ahmedabad’s connectivity to Mumbai and Delhi and its location in the Delhi Mumbai Industrial Corridor (DMIC) has given an impetus to the warehousing sector.

Government Initiatives The government has granted Infrastructure Status to the logistics sector, including multi-modal logistics parks and cold chains, enabling firms to access loans at competitive rates. The Make in India initiative will boost domestic production, thrusting the logistics and warehousing market. The Warehousing (Development & Regulation) Act,

which aims to standardise warehousing operations, makes warehouse receipts (WRs) negotiable and establish accreditation agencies for warehouse registration. The Government is emphasizing on food parks and integrated cold chain development through public private partnerships.

The Growing Edge Many warehouses have adopted automation in an attempt to stay competitive or gain an edge over the competition. Growth in GDP and changing demographics are creating higher primary and secondary demand. Demand for high-end services and infrastructure, driven by the greater presence of MNCs and maturity in end-user industries (such as food, textile, pharmaceuticals, automotive and engineering goods), is creating new storage space requirements. Rising exports and imports are supporting warehousing growth. Increasing organized retail activity is pushing demand for modern warehousing. Huge demand for temperature-controlled warehouses/cold storages. High-quality warehouses, typically coined as Grades A and B

warehouses, require automation and safety in operations and would be equipped with vertical racking, reach trucks, automated conveyor systems, and fire sprinkler and hydrant systems, among others. Country specific investment regions and industrial parks on Public Private Partnership (PPP) model. Large scale investments in infrastructure sector are deemed to improve connectivity to nook and corner of India, impelling the need for storage space. Allowance of 100 per cent Foreign Direct Investment (FDI) in warehouses and food storage facilities under automatic routes and tax-free zones, such as free trade warehousing zones (FTWZs), has been attracting many foreign and private equity investments in the sector since the last few years. ICD/CFS facilities have been rising due to increase in port traffic and containerisation level in India.

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

may 2018 - CargoConnect

Interview

Committed to High Quality Service Delivery Spoton Logistics Pvt Ltd, India’s leading and most preferred Express Logistics Company, has been providing logistics solutions to industries and segments - Hi-Tech, Automotive, Engineering, Pharmaceutical, Electronics and Electrical and Life style and Retail, backed by robust people and operating processes. Abhik Mitra, CEO, Spoton Logistics Pvt Ltd, in an exclusive conversation with Upamanyu Borah, elucidates the company’s exclusives, working mannerisms, path-breaking customised solutions, and the future of Indian Logistics Industry.

1) Your brand line ‘Engineered for Accuracy’ suggests accuracy by design, not by chance. Can you please tell us on your company’s exclusives and how extensive is your network? SPOTON, puts into practice its brand line, “Engineered for accuracy” on a continuous basis. It is inbuilt into SPOTON’s business and operations culture. Below are a few examples which typify this:

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i. Continuous Monitoring of every aspect of the Network (i.e. from Pick up registration to pickup, to connections, to vehicles running on time, to delivery, to POD updating post deliveries) are monitored continuously. This provides real time MIS to the Service Delivery teams to ensure customers get the desired service, by design and not by chance. ii. Extensive coverage of all aspects of

operations through real time dashboards gives total and continuous visibility to our operations teams across all operating units. iii. Usage of consignment and vehicle data to predict problems in advance, so that corrective actions can be taken to reduce/ eliminate the problems beforehand. iv. Use of data analytics and latest generation data services, leads to enhanced problem solving capabilities.

Talking about network and reach, we now cover 20000 + pincodes which compares very favorably to the top players.

What makes your services different? Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome? And if so, how? Our best in class use of technology and processes to control and enhance service delivery performance is what makes SPOTON different. We support this with our outstanding customer centric culture, professional management, integrity, and Spoton Values. Our competitive advantage in terms of service delivery to customers comes in the form of consistency in services and continuous improvements that we offer across all verticals. Focussed, continuous and always available Key Account Management for customers is provided through our extremely efficient Sales and CS teams. We also believe in transparency and continuous sharing of information to customers to enhance visibility. Every customer has complete know how of the movement of his consignment. Outlining competitive disadvantages, we need to improve our reach in North East India, which is work-in-progress and should be fully corrected and running within the next 6 months.

3) Elaborate on how effectually SPOTON has been integrating the IoT in accelerating its logistics services? Any digital transformation process impending in your company? SPOTON is working on using IoT as a solution for Theft Reduction across its network and various pilots are on. Spoton has very effectively used digital transformation to run the company’s processes and drive performance

output over the last few years. Currently, we are looking at enhancing our data sciences capabilities in areas like Machine Learning and Artificial Engineering.

4) How has the India logistics industry evolved from the time you stepped in? What major transformations have you observed in terms of technology, manpower, practices, government regulations, etc.? The logistics industry has undergone substantial changes since I joined the industry in 2004. In the last 14 years, developing new technologies to improve processes has become even more prevalent. With

We are poised to enter the Air Express domain in the next six months and also looking at engaging with the rail network as and when necessary greater use of technology, the logistics industry is now more automated than ever before. Use of technology has also resulted in reducing costs significantly. Regular technological advancements also mean that today technology costs are much lower and hardware/ software applications are much more affordable. There is also greater use of data to manage business. Today it is possible to capture all the data that streams into our business and we are in a position to apply analytics to unearth insights or trends. The greater use of technology and data to manage complex supply chains has also resulted in the need for higher quality skills in managing the logistics business. As a result, there has clearly been a shift towards newer skill sets coming from engineering data analytics and IT into the logistics industry than in the past.

Today, infrastructure also plays a key role in transportation and logistics. Better roads and highways lead to higher driving speeds and impact the efficiency of the entire supply chain management process. With increased focus on infrastructure projects we have seen an improvement and a boost in the logistics industry. Moreover, GST and the E-Way are major positive transformation factors and will help the organised logistics industry undergo a major growth period.

How is SPOTON planning to increase its footprints in remote areas of India?

We are enhancing our reach and network in the North East part of India and also significantly strengthening our intra-regional network capabilities.

6) Many times, companies have to opt for the multimodal ways to transport the cargo from one place to another due to the geographical complexities of India. With reference to this statement, what kind of transportation solutions SPOTON has been offering to its clients? SPOTON currently offers only express road transportation to its customers. We are poised to enter the Air Express domain in the next six months and also looking at engaging with the rail network as and when necessary. Hence, we will seek to offer a multimodal service to our customers in the next few months.

7) How do you foresee the future of the Indian Logistics Industry? I see the future of the Indian Logistics Industry as extremely bright, preferably the best it has ever been over the last 2 – 3 decades. In addition to the implementation of GST and E-way bill, the ‘Make in India’ drive will also play a vital role in significantly enhancing the size and importance of the logistics sector.

may 2018 - CargoConnect

Interview

India has tremendous business potential in MHE business “We are a customer centric organisation and fully geared up to cater to the future requirements of the Indian MHE Industry,” says MRV Johnson, Vice President (Sales), KION India Private Limited. In an exclusive interview with Ritika Arora Bhola, he talks about their products and value-added services, key innovations and developments in the past few years, and expansion plans. Excerpts:

1. Please elaborate on the services offered by KION group to the warehouse operators in terms of technology and equipments, considering smart warehouses, concepts life robotics and automation having taken over the warehousing industry. KION group is represented by its six brands – OM, OM Voltas, Linde, STILL

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and Baoli. Each brand addresses specific customer segments at market place and fulfills their needs. In genral, we are a onestop-solution provider in the Indian MHE industry through our extensive product range and diversified solutions. Our vast sales and service network with more than 100 customer touch points across India

makes sure our products and services are within customer’s reach. We offer solutions that cater to small warehouse requirements to high-end technology based warehouses. Our product range starts from small pallet trucks to high end fully automated solutions, including counterbalanced forklifts.

2.Palletized Material Handling Equipment is the need of the hour and is required in all industries/ warehouses. Tell us about your products and strategies to hold on the customers. India has tremendous business potential in MHE business as the country is now becoming more proficient in logistics. Ground storage and manual material handling is still common in the country with high share of small warehouses and logistics providers. However, the trend is now shifting towards advance and reliable ways of material handling to improve the productivity and reduce losses; customers are now moving towards powered MHE. Huge spending on ports infrastructure and a surge of e-commerce are among factors that are leading to an increase in containerisation and palletisation. This is a positive trend for our MHE industry. Practically after a certain volume; manual material handling is beyond human control and requires advanced and automated solutions. As much we move towards large capacity warehouses, automated and smart warehouses become vital for efficient operations. We are a customer centric organisation and are fully geared up to cater to the future requirements of the Indian MHE Industry.

3.Kion Group also sells Industrial trucks. Please elaborate on this segment. Our strategy is centered on market share and profitability growth. This is accompanied by a higher focus on the value and economy price segments. KION Group intends to harness its global potential even more effectively, focusing on growth, profitability, resilience and capital efficiency in order to strengthen its position as one of the leading companies in MHE industry worldwide.KION group sells all type of powered/non-powered industrial trucks starting from pallet truck to high end technology based reach truck. We do in-house production of warehousing equipmentIC and E-forklift trucks at our Pune production facility. We are manufacturing industrial trucks for the OM Voltas brand as well as importing industrial trucks and

warehousing equipments for OM, Linde and Baoli.

4. Please tell us about the nature of your products and value-added services. What is your USP? KION India is the only multi-brand company in the Indian MHE market offering a comprehensive product range through various sub-brands which are able to address the diverse customer requirements across various segments of the MHE market. Our individual brands are wellplaced with their brand strengths and capabilities. With integration of their strengths and utilisation of synergy among their S&S channel network, we enhance our product portfolio and customer reach as well as provide efficient aftersales support.

With more than 15 per cent market share, MS. KION Group is the largest manufacturer of industrial trucks in Europe, the second-largest producer of forklifts globally, and a leading provider of warehouse automation solutions. KION India is the market leader in Indian MHE space and currently holds more than 30 per cent market share with~ 50 per cent market share in IC forklift segment alone.

6. What are the key innovations and developments accomplished by Kion group in the last one year? We are the first company to produce cleaner technology based reach truck in India. We recently launched an environment friendly Electric forklift with advanced twin motor drive technology which could be driven in very small turning aisles. We provide a variety of features for specific needs, involving customised attachments. Operator sensors, overload protection system, travel speed control system, operator belly button are key safety features embedded in our machines.

KION India is the market leader in Indian MHE space and currently holds more than 30 per cent market share with~ 50 per cent market share in IC forklift segment alone 7. Please elaborate on the current overall demand We customise our products as per customer requirement and application. Currently we offer IC forklift trucks with capacity ranging from 1.5 to 16 Ton which comply with BSIII emission standards and are best in class fuel efficienct. We provide E-trucks in capacities of 1.5 to 5 Ton. E-trucks are ecofriendly with lower operating cost. Battery Operated pallet truck, Stackers with height of up to 6.5 m and reach trucks with height of up to 12 m cater to warehousing needs. We are continuously upgrading our products as per market feedback and planning to launch a number of new products in the coming years.

5. Discuss the market share of KION group in the Indian material handling market as compared to International market. We are a global leader in manufacturing industrial trucks, and offering related services and supply chain solutions with presence across more than 100 countries.

supply scenario for forklifts from small/medium/ and heavy duty forklifts. Business in India is continuously working towards innovations, development or improvement of cost competitive products, processes or services and looking towards a business model which has high potential of employment generation and wealth creation. With high pace of growth, businesses become more dynamic and less predictable. Hence an agile approach with quick responsiveness is the key requirement. Market is clearly shifting towards more reliable and high performing products.

8. Your future projects. We have recently invested to expand our production facility at Pune to meet the long term market growth. We are continuously investing in R & D at Pune to be one step ahead of the market. We are also investing to further improve our product aesthetics by improvements in areas such as paint technology.

may 2018 - CargoConnect

Interview

“Devising eco-friendly packaging solutions for Customers” locations across India.

2) When it comes to air freight, what are the factors which affect the secure transportation of cargo? What packing services do you offer to your customers for air cargo?

“Packaging industry is still at a nascent stage in India. In the last five years, it has seen only 15 per cent annual growth,” says Shailender Anand, Managing Di-

rector-India & Director-Dubai, Pronk Multiservice Global solutions. He feels packaging not only protects and maintains the quality of the product but also helps

The goods transported by air undergoes various forms of stress or rough transport conditions like multiple and rough handling of cargo, vibration, turbulence in the flight, vertical stress due to stacking of other heavy cargo on your packed cargo, etc. To ensure proper packaging of goods to withstand all these tough conditions during transportation, it is imperative for a packaging engineer to gain the thorough knowledge of the product before designing the packaging solution. He/she must know the weight distribution of the cargo in the boxes or on the skids or on pallets. Accordingly, the packaging solution should be designed by using extra dunnage so that the movement of the product is arrested inside the box or pallets.

in boosting sales and brand image. In an interview with Ritika Arora Bhola, he discusses about packaging services for air freight, industry as a whole, developments and new projects in pipeline. Excerpts!

1) Pronk has been serving the industry since last 7 years. How has the journey been so far? Pronk has completed a journey of seven years so far in India and it has been quite an exciting and learning experience for us, as India is a very different market. We have developed expertise in packaging for various verticals since our inception. Today, we provide complete packaging solutions for engineering goods, garments, oil and gas, power and energy, aviation, automotive and pharmaceuticals, with centers in nine

64 CargoConnect - may 2018

Pronk provides all kind of packaging solutions to their customers according to their airfreight requirements, ranging from normal corrugated boxes to garments on hanger boxes (GOH), plywood to wooden boxes, and honeycomb boxes. We also provide paper pallets (in combination) which is good for airfreight purposes as it is much lighter in weight in comparison to wooden, plywood or plastic pallets and can also bear load of 1000kg-1500 kg. Pronk has also been providing eco-friendly packaging solutions to all their customers across India, because most of the customers are shifting from wooden to eco-friendly packaging solutions like industrial corrugation and honey comb packaging.

3) The packing and lashing industry is still at a nascent stage in India. Comment! This is mainly due to the fact that the majority of suppliers in India till date,

despite the lashing services under the responsibility of a road transporter who unfortunately do not follow any safety standards, leading to risking the lives of various people on the roads and highways. Customers are doing it just to save a little amount of money. But, if anything goes wrong, the impact of it can be unbearable for them.

4) Please elaborate on the developments you have seen in packing industry in the last few years. Packaging industry has grown at a rapid pace in the last few years, especially after e-commerce gained the momentum. Over the last five years, the industry has seen a 15

This year we are initiating packaging solutions in corrugation for airfreight industry, a challenging endeavour per cent annual growth. Packaging not only protects and maintains the quality of the product but also helps in boosting sales and brand image. Earlier the production units used to pack their goods in sub-standard, low grade jungle woods and that seemed deplorable. Today, with the passage of time, clients are getting more aware as they have to compete in an international market and now they are asking for packaging in pine wood instead of jungle wood. Pine wood is lighter in weight, stronger and goods packed in pine wood and plywood has better aesthetic looks.

5) What are your new projects in the pipeline? We are planning to start our corrugation fabrication units across India. We are planning to start at two more locations this year i.e., Hyderabad and Baroda. We are a recognised player in India for devising the packaging solutions for ODC cargo, and this year we are initiating packaging solutions in corrugation for airfreight industry as well.

“Logistics industry is all set to touch new heights” 1) Transpeed Logistics provides warehouse solution to its clients so when it comes to warehouse automation, on which technology you put the thrust most in order to achieve better efficiency? Nowadays, companies use technology for warehouse automation in order to perform multiple tasks at a time. But, I would still prefer to depend on humans for the handling of the creative tasks. I would like to put thrust on the usage of robots for the following purposes • To handle laborious tasks – such as cargo pick up and put away • To maximise space – As robots need less space to operate, a warehouse can have smaller aisles, which means more space for storage • For faster retrieval of an item, which means faster fulfillment Technologies such as RFID and a cloudbased Warehouse Management System are important automation tools that ensure warehousing operations run smoothly.

2) If warehouses are made fullyautomated then it would curtail the requirement of humans inside the warehouses. So, what could be the midway to tackle this situation? I reckon robots could not replace humans completely as there are many tasks that are beyond the capabilities of robots, such as – creative decisions, judgments, ability to improvise, and other actions that require fine dexterity. The concept of Cobots – collaborative robots are the way forward. Cobots are designed to work alongside humans not to replace humans in warehouses. These robots make the human’s jobs easier, faster and perform repetitive tasks that affect the health and safety conditions. Collaboration of humans and robots reduce time, cost and floor space as well. Humans and cobots working together as teams have shown to be significantly more productive than teams that

Interview

consisted of robots or humans alone. In the long run, humans must continue to rely on the inherent benefits of cobots and further develop the abilities of robotic systems at the same time.

3) Which opportunities are available in domestic and international air cargo which has not been explored yet? The opportunities in air cargo which hasn’t been explored yet are - transshipment cargo, live animals, time-definite express delivery of parcels, perishables (requiring cold storage and/or temperature-controlled cargo) – vegetables, meat, fruits, flowers, pharma, dangerous goods etc.

4) How quality roads could significantly lead to overall economic development? Roads carry almost 60 per cent of the freight traffic in India, continually growing at a CAGR of 15 per cent. The transportation industry in India is currently hampered due to poor road infrastructure. The national highways form only 2 per cent of the entire road network in India but handle over 40 per cent of the national road freight traffic. This puts enormous pressure on the highway infrastructure of the country. The above fact serves as a testimony to the fact that the transportation is vital to a nation’s economy and it serves several purposes.

5) How the industry has changed from the time you stepped in? What major transformation have you observed in the industry? The logistics industry has come a long way from being a labour intensive industry to the present technology driven system. Previously, Indian manufacturing companies used to manage their logistics in-house. Then 2PL service providers came in the picture.Today, we have the 3PL and 4PL models in the industry. Indian companies perceived cost as the major consideration in selecting their service

Transpeed Logistics not only transports cargo but bring appropriate and economical solutions to the logistics needs as well. The company has a rare combination of talented young individuals and experienced professionals who strive to provide a competitive edge to its clients by delivering cargo on time and on affordable prices. Venkatesh Rao, President, Transpeed Logistics Pvt Ltd in an exclusive interview to Gaurav Dubey talks about the recent trends in the logistics industry and much more.

providers in past, now companies have realised the importance of timely data driven information, high quality customer responsiveness and transparent communication. Post liberalisation, the logistics industry has undergone a vast transformation and sophisticated technologies has come in the industry. With receiving of ‘Infrastructure status’ and the implementation of GST, the logistics industry is all set for further transformation and ready to achieve new goals in the coming years.

may 2018 - CargoConnect

Shippers Speak

“Innovation is essential for supply chain performance” How important is logistics for the overall scheme of your business? Supply chains are unique networks between businesses that deal with the production, shipment, warehousing and delivery of products. These networks are very important to businesses as they largely affect sales and profits. However, without effective and well-organised logistics, supply chains can’t help your business gain a clear advantage over the competition.

Relaxo Footwears – A Delhi based footwear manufacturing company has emerged as one of the largest footwear companies in Asia. The company has achieved high performance in the field of supply chain which helped the organisation in becoming fastest growing footwear company by having highly profitable multi fold turnover. Vijay Wadhwani, Assistant Vice President- SCM, Relaxo Footwears Limited talks to Charu Pandey about their seamless supply chain and throws light on the USPs and overall management of supply chain of the company. 66 CargoConnect - may 2018

While a good marketing strategy can “open many doors” and attract customers, a reliable logistics service can help your business build and maintain a positive public image. Meanwhile, poorly organised logistics can lead to losing customers and decreased sales. So, we believe, keep your customer satisfied because customers are the most precious asset for any business. With over 25 years of work experience and a long list of satisfied customers, we are proud to offer seamless logistics service to our customers.

How do you ensure smooth coordination between suppliers, transporters and other departments in your supply chain? Supply chain management by its vary nature depends on relationship and connections. Smooth coordination can only come if we have better relationship either with internal or external people. The relationship play an important role in achieving supply chain success. Vendors provide a critical service for any business. This service allows your business to focus on building products or services that add value to your customer. This is an important dynamic to understand since, in the long run, a healthy vendor relationship will be a competitive advantage. Vendor relationship works on four major components i.e. respect, trust, mutual benefit and honesty. Without

these components, relationship will be challenging to maintain and will certainly descend into a bad situation over time. Yo u c a n ’ t r e a l l y d e v e l o p o p e n communications with other if your orga n isat ion is pa r t it ioned itse l f. Manufacturing and distribution need to do more than communicate- they need to march in lockstep. Both functions need to be plugged into what’s going on with sales and marketing, sourcing and procurement can’t operate independently of other supply chain functions. Senior management must include the supply chain organisation in the strategic information loop, while the supply chain organisation must let the C- level officers know what it can do to support strategies.

Are there any unique or innovative strategies that you have adopt better supply of your product? We must think more innovatively and proactively to balance product flow and cost throughout a product life cycle. As a product moves through each of the four life cycle phases, the supply chain also change in response. In the first phase, delivering product to meet demand is most important, so the supply chain must be highly responsive. The focus drives service and fulfilling consumer needs, rather than reducing and limiting costs. As sales increase, the company shifts from a lowvolume supply chain to a higher-volume supply chain. Product demand increases, the number of sales outlets increases and the supply chain becomes more complex. As the product matures, the emphasis shifts from fulfilling sales orders to improving supply chain efficiency to reduce costs. When sales and profits start to decline, costs must decline as well. The product must still be available to consumers, but at a lower production cost. At this time, the goal to limit distribution and increase supply chain efficiency becomes

increasingly important. Innovation can greatly impact supply chain performance. In our major aspects, we monitored design for manufacture to make it easy to produce, thereby reducing the costs of manufacturing, design for assembly to minimise number of components, easing the assembly process. And more important, design for serviceability. The big challenge we faced was delivery of goods in time to distance customers in least possible cost. In our innovative work, we introduced mother warehouse concept first to club all units inventory at one place, than introduced regional warehouses for distance states for Eastern, Western and Southern states. We also improved our transportation, rationalised transporters, introduced FOR basis transportation, started delivering goods at customer door steps, minimised lead time drastically etc. In addition to this, worked on warehouse automation with WMS for smooth warehouse operation.

What percentage of logistics work is outsourced? What functions are performed by your logistics partners and what are controlled internally? 3PL providers have a vast resource net work ava i l able t h at prov id e s advantages over in-house supply chain. Using 3PL’s resource network each step in the supply chain can be executed in most efficient, cost effective way. 3PL can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL provider allows your company to benefit from resources which are unavailable in-house. In our outbound logistics, our work is divided into two parts one is warehousing and second is transportation. In warehousing, we have product wise mother warehouses called (CDCs) Central Distribution Centres, regional warehouses called (RDCs) Regional Distribution Centres. The operation of CDCs is in company hands, and operation of RDCs is in hands of 3PL companies. If we talk in percentages, our 40 per cent warehousing operation at RDCs is through 3PL companies. As far as transportation job is

concerned, we deal with large number of transporters for supply of goods in more than 650 towns for more than 800 direct distributors. In number we at present deal with more than 100 transports. However, we deal with some local players also for better service to specific customers of remote areas. Plan in near future - after GST, we are expecting high business growth with the additional business to be captured from unorganised sector of footwear industry. We concentrate on maximum time of strategy planning and other productive activities. So, considering the benefits of 3PL outsourcing as mentioned above, we are in planning to outsource our entire logistics operation i.e. end to end outbound logistics to a reputed 3PL company.

After GST, we are expecting high business growth with the additional business to be captured from unorganised sector of footwear industry

Tell us about the most common problem faced by your company during its supply chain process. What steps do you take to overcome these? Rather than mentioning the word ‘problem’, I would say ‘opportunity and challenge’ as the industries have got after implementation of the Goods and Services Tax, and now implementation of E-way bills. Like all other industries in India, GST, impact on footwear industry will also bring some major changes in the way these domains operate, as well as their book keeping activities. Under the GST regime, supply has been defined to include transfers. Stock transfers become taxable in the following manner: Intrastate- when a business entity is registered in one state with more than one registration; Interstatewhen there occurs a transfer between two business entities in different states (which is a taxable event).

The cash flow of a business is greatly impacted under the GST due to the taxability of stock transfers as tax is paid against a stock transfer on the date of such transfer and the input tax credit is utilised only when such transfer has been liquidated by the branch receiving the transfer. In our case, we are in the fashion industry, in 80:20 ratio, 80 per cent SKUs hold in warehouses are slow moving, contributing 20 per cent sale but tax is already paid before sale. It may also be noted that funds for seasonal businesses are blocked for long periods of time as the sale mostly take place only during the particular period in a year, additional GST is paid during the month when the transfer are made from the branch. However, the credit shall be utilised during the month when the actual sale takes place. We in our action plan have re-structured our CDCs locations and shifted to the states where our plants are located and came out from the liability of advance tax.

Who are your Logistics Service Providers (LSP) and what qualities you seek in them before choosing their services? Presently, we have six LSP companies for operation of our seven RDCs. Some of them are National LSPs such are Indoarya (Patna, Bangalore), Alexis Logistics (Guwahati); some are local players such are Sohan Lal Sewa Ram Jaggi AgenciesLucknow, V2 Logistics – Bhiwandi, Pawan Kumar Agarwal & Sons – Cuttack, and Shree Ramji Services- Ranchi. We as business head see the economic value of supply chain management to the LSP. Using LSP partner to manage your logistics frees up your resource to concentrate on the key areas of that grow and develop your business- relieving the burden of day-to-day operational logistic problems. The main qualities we see in LSP are – time saving, cost efficiency, accountability, innovation, expertise, adjustable, optimisation, technology, network and reduce risks. may 2018 - CargoConnect

news Complete built-in plan on logistics on anvil The commerce ministry is working on several measures, including formulating an integrated plan and setting up of a digital platform, to promote growth of the logistics sector. Commerce Secretary - Rita Teotia, said that the sector holds enormous opportunities to boost economic growth of the country and these measures would also help cut transaction costs and time of traders. All economic activities including exports and manufacturing are linked with logistics and its efficiencies would help improve economic development, she added.

Agility launches new online forwarding platform

Kuwait-based Agility Logistics, a leading global logistics provider and early-adopter of digitalisation in the logistics space, has introduced Shipa Freight, the first fully integrated online freight service platform that allows users to get rate quotes and book, pay and track ocean and air shipments around the world. Shipa Freight provides instant, no-obligation rate quotes from the countries that account for 95 per cent of global trade and allows users to manage their international shipments with a simple, easy-to-use tool accessible by desktop, laptop, tablet and mobile app.

Goa to be developed as cargo hub Central government in the collaboration with state government and private partners is working on to promote Goa as a tourism destination as well as a cargo hub, stated Union Minister for Civil Aviation, Suresh Prabhu. “Mopa Airport will commence operations by September 2020. Dabolim Airport will continue to remain operational along with Mopa”, added Prabhu. A renovation work worth `300 crore is going on at Dabolim airport. By July, new multi-layer parking complex will be operationalised.

FreightCrate launches e-marketplace FreightCrate Technologies, a Mumbai based logistics technology company, has launched the first of its kind online logistics marketplace, www.freightcrate. in for international freight and shipping needs of exporters and importers. The brain child of two international freight and logistics experts, www.freightcrate. in is the first of the many products to be launched by FreightCrate Technologies that aim to transform the Indian logistics industry through organised, transparent, cost effective solutions and mutually beneficial growth opportunities for vendors and customers.

WRI and FedEx to work jointly on public bus system US-based WRI India Ross Center for Sustainable Cities, with support from FedEx Express, the world’s largest express transportation company and a subsidiary of FedEx Corp., recently announced the “Better Bus Challenge,” a competition to augment the quality, safety and efficiency of public bus systems in India. The open innovation challenge will bring together ideas from manufacturers, technology and service providers, mobility entrepreneurs, NGOs, corporations, and transit agencies to cocreate solutions in the public bus sector.

Hyderabad Bangalore Chennai Ahmedabad Baroda Bhiwandi Jaipur Surat Pune

WHEELS FORWARDERS PVT. LTD.: Corp.Off: G-47, Vardhman Diamond Plaza, D.B. Gupta Road, Pahar Ganj, New Delhi - 110055 Airport Office: Khasra No. 973/1-974, Mahipalpur, New Delhi 110037 | Ph: 9312211317, 9811313289, 9811023496 E: info@wheelscargo.com W: www.wheelscargo.com

We cover entire Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Rajasthan, Gujarat & Maharashtra

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Daily Time Bound Express Service | Containerized nonstop GPRS enabled dedicated vehicles | Time bound money back guarantee option | Godown to Godown & Door to Door services | All India Air & Train services also available

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

LOGISTICS PARTNER

SOUVENIR PARTNER

NETWORKING PARTNER

REGISTRATION PARTNER

ASSOCIATE PARTNER

LANYARD PARTNER

SUPPORTING PARTNERS MEDIA PARTNERS

KEYNOTE SPEAKER

GUEST OF HONOUR

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

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

PANELISTS

SP SAHU Commissioner Single Window ICEGATE

ANIL VARMA President Delhi Exporters Association

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

XAVIER BRITTO Chairman Kerry Indev Logistics

H.K.L MAGU Chairman Apparel Export Promotion Council

VIPIN VOHRA Chairman Continental Carriers

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

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

GURBIR SINGH MADAN Managing Director M/s Madan Trading Co. Pvt. Ltd

ABHIK MITRA Managing Director Spoton Logistics

RAJIV PANDE President Perf - By Rahman Group

ARVIND SINHA Immediate Past President The Textile Association (India)

SANJAY CHAWLA Publisher & Editor in Chief DFU Publications

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

news Indian ports handled 4.77 percent cargo traffic during 2017-18 According to Indian Ports Association (IPA), major ports in India witnessed 4.77 percent growth, and cumulatively handled 679.35 million tonnes of cargo between April 2017 and March 2018, as against 648.39 million tonnes during the 2016-17. Cochin Port registered the highest growth of 16.52 percent, followed by Paradip (14.68 percent), Kolkata including Haldia (13.61 percent), JNPT (6.2 percent), and New Mangalore (5.28 percent). Nine ports, including Haldia, Visakhapatnam, Paradip, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal also registered positive growth in cargo traffic.

Digital platform launched for Indian MSME exporters

The Minister of Commerce and Industry, Suresh Prabhu, recently launched the FIEO GlobalLinker- a digital platform for MSME exporters to digitise their businesses and join a global community of growing businesses. “This initiative will help in expanding India’s multi-focused export strategy and also aid in connecting art and artisans to the market,” said Prabhu while launching the platform. The minister also informed that at least 300 Geographical Indications will be registered very soon, which will give a major boost to exports.

Cathay Pacific enters into leasing partnership with Sonoco Cathay Pacific Cargo and Sonoco ThermoSafe, a leading global provider of temperature assurance packaging has announced a partnership agreement for the leasing of the PharmaPort 360 temperaturecontrolled bulk shipping container. The agreement enables pharmaceutical shippers to lease PharmaPort 360 containers directly from Cathay Pacific Cargo, the first Hong Kong airline to be awarded IATA CEIV Pharma Certification, boosting the carrier’s Pharma LIFT capabilities and providing its customers worldwide with a leading hybrid option for moving timesensitive, high-value medications by air.

Join us in Mumbai for PHARMACONNECT 2019 PHARMACONNECT is the most prestigious annual pharma logistics industry event, bringing together key stakeholders from the entire pharma supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories. We look forward to welcoming you in Mumbai, a city poised to become a global financial, commercial and entertainment hub with a potential to generate $50 billion revenues.

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

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

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

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

news Hyderabad Airport cargo gets WHO-GSDP certification

JNPT to roll out direct port delivery solution

The cargo terminal of GMR Hyderabad International Airport Ltd has been certified with the World Health Organisation’s Good Storage and Distribution Practices (WHO-GSDP). Awarded by SGS India, the WHO-GSDP certificate underscores Hyderabad Airport’s commitment to and compliance with quality management standards and International requirements throughout the pharma supply chain. Hyderabad being the Pharma hub of India, GMR Hyderabad Airport’s 60 per cent cargo exports are comprised of pharma products. In 2010, Hyderabad International Airport operationalised India’s first Airport-based dedicated Pharmaceutical handling facility (Pharma Zone), to handle the export of pharmaceutical products. Pharma Cargo at the airport has witnessed CAGR of 10 per cent for the last 5 years.

To ensure faster cargo movement, Jawaharlal Nehru Port Trust (JNPT) will roll out direct port delivery (DPD) solution by May, a move that will benefit 1,600 importers. “Four successful bidders have won the mandate for five routes - from JNPT to Gujarat, to Goa and Bengaluru, to Nashik, Nagpur, Aurangabad, Indore and Hyderabad, to Ahmednagar and to local regions in and around Mumbai,” Ministry of Shipping said in a statement.

NHAI Joins Hands with AAI for Green Corridor in Varanasi National Highways Authority of India (NHAI) has collaborated with Airports Authority of India (AAI) for developing green corridor along Varanasi Bypass covering 16.55 kilometers of NH 56 and NH 29. A formal Memorandum of Agreement (MoA) was signed towards this between AAI and NHAI recently. Airports Authority of India has agreed to provide financial assistance of five crore rupees for plantations and maintenance work under their CSR funds for five years.

UPS opens logistics facility in Ahmedabad

DP World may bid for new free trade zone at JNPT

UPS recently inaugurated a larger integrated logistics facility to support businesses and SMEs (small and medium enterprises) in Gujarat to expand trade with the global marketplace. Located at Ahmedabad, the facility is easily accessible for walk-in retail customers and will provide services for small package, supply chain solutions and contract logistics for faster and more efficient access to international markets. The new facility is part of UPS’s investment strategy into its global integrated network, which moves three percent of the world gross domestic product (GDP) across 220 countries and territories daily.

Dubai-based DP World, one of the leading global operators of marine and inland terminals, is interested in setting up a logistics hub and also managing the free trade zone in Mumbai’s Jawaharlal Nehru Port Terminal (JNPT). The company is likely to bid for the free trade zone that will come up in the 277 hectare special economic zone (SEZ) in the country’s largest port. It may invest about `1,000 crore in the facility if it wins the bid, a top shipping ministry official said.

72 CargoConnect - may 2018

UDAN: Pathankot gets air connectivity The maiden flight for the Pathankot Airport took off from the Terminal 3, IGI Airport, New Delhi, recently. With this, Pathankot now got operationalised as the 21st airport under UDAN (Ude Desh ka Aam Naagrik) – RCS (Regional Connectivity Scheme). Suresh Prabhu, Minister of Civil Aviation in the presence of other dignitaries, inaugurated the maiden Alliance Air flight from Delhi Airport. Its 19th route under the UDAN scheme, Alliance Air is flying its ATR aircraft on this route.

news Safexpress launches ultra-modern Logistics Park in Hubli Safexpress, India’s largest supply chain & logistics company has launched its ultra-modern Logistics Park in Hubli. This top-notch facility is strategically located on National Highway 4, which is connected to Mumbai, Pune, Bengaluru and Chennai. On this occasion, senior dignitaries from Safexpress were present to launch the Safexpress Logistics Park at Hubli, which included Rubal Jain - Managing Director, Safexpress - Vineet Kanaujia, Vice President – Marketing, S K Jain - Chief of Administration, and P S Narayan, Regional Manager – Karnataka. Speaking at the launch ceremony, Rubal Jain - Managing Director, Safexpress said, “Over the years, Hubli has flourished economically. It has a wide cluster of industries and more than a lakh of small and medium enterprises. However, Hubli does not have adequate warehousing and Logistics infrastructure. Safexpress Logistics Park at Hubli will help in bridging these infrastructure gaps. It will also allow us to provide clients with the latest transshipments as well as 3PL services. With the development of Hubli Logistics Park, we will be able to further boost our leadership position in the supply chain & logistics industry.” The new logistics park is spread across 30,000 square feet, and is enabled with state-of-the-art transshipment and 3PL facilities. It has

the capability to handle loading and unloading of over 20 vehicles simultaneously to ensure smooth and uninterrupted movement of goods. Safexpress states that the operations at the new location are highly streamlined, which will ensure the country’s fastest transit-time from Hubli to over 620 destinations across India. The logistics park has a column-less span of over 157 feet to facilitate movement of goods within the facility, along with all-weather loading and unloading of goods through the facility’s 16 feet wide cantilever shed.

news CSC JV Awarded International Cargo Handling Concession at CSIA Airport Mumbai CSC, in a joint venture with SATS, has been awarded a cargo handling concession for designing, developing, operating and managing the international cargo facilities at Chhatrapati Shivaji International Airport (CSIA) in Mumbai. The joint venture company, Mumbai Cargo Service Center Airport Private Limited, is held 51 per cent by CSC and 49 per cent by SATS. The concession started on April 16, 2018 and will continuetill 2036. CSC has been providing its services since 1995 and is today the country’s largest air cargo facility handling services company. CSC operates and manages air cargo handling facilities in Mumbai, Delhi, Ahmedabad, Aurangabad, and Mangalore airports and currently handles more than six lac tons of cargo per annum across various airports of the country. With this acquisition CSC group is expected to handle more than ten lac tons of cargo per annum across various airports of the country. Earlier, CSC has also been awarded a concession to expand and operate the existing cold chain temperature-controlled cargo terminal at CSIA Airport Mumbai till 2036. CSC group currently provides employment to more than 2,200 people across various airports of the country. Elated on the achievement, Tushar Jani, Chairman of the CSC group, said with this concession CSC group will be providing seamless quality services at Mumbai, Delhi and Ahmedabad to the Exim community and international airlines. He further said that CSC group’s endeavor is to achieve industry leadership through

innovative and efficient processes and motivated people. SATS is Asia’s leading provider of Food Solutions and Gateway Services with network spanning 14 countries and 54 cities. SATS has extensive experience in operating air cargo handling facilities and has invested substantially in technology to enhance service and efficiency. Mumbai airport is a very important cargo gateway airport of the country and currently handles 33 per cent of country’s international air cargo. CSC along with MIAL will develop a world-class air cargo handling facility at Mumbai airport and deliver top rated customer service. With this latest win, SATS and CSC will connect the Mumbai hub to their network, increasing connectivity and growth potential for their airline customers and shippers.

Çelebi launches CargoCEL TRUCK app Çelebi Delhi Cargo Terminal Management India Pvt Ltd, a Joint Venture between DIAL (Delhi International Airport Private Ltd) and Çelebi Ground Handling Turkey, has rolled out Çelebi CargoCEL TRUCK application for bonded and non bonded trucking services. The new service application will allow customers to book trucks online for PAN India destinations, offering real-time visibility of the shipment. The launch event was attended by Sanjiv Edward - CCO, DIAL, Ramesh Mamidala - CEO, Çelebi Delhi Cargo Terminal Management India Pvt Ltd, Akash Bansal - Country Head, Om Logistics, among others. Speaking on the launch, Ramesh Mamidala said, “Our customers can now book online bonded and non bonded trucks for their cargo by logging on to www.cargoceltruck.in. This app will facilitate customers to smartly organise their bookings, with real time visibility and saving on cost.” “Currently, Çelebi is operating bonded trucks from Kanpur and Ludhiana and plans to increase it to ten stations by the end of this year. We are elated to launch this app to benefit the trade,” Mamidala added. Sanjiv Edward said, “DIAL is keen and positive about Çelebi’s model app for booking trucks. The initiative of Çelebi is to consolidate customers on a single platform for reliable bonded/ non bonded booking of trucks and DIAL will fully support to

74 CargoConnect - may 2018

make it a success.” Akash Bansal voiced, “We are long term partners of Çelebi for any trucking requirements that they wish to offer to their

customers anywhere in the country, and we will definitely provide customised solutions to make it a value preposition for all stakeholders in this business.”

DURABLES 20 CONNECT 18 DURABLES LOGISTICS CONFERENCE

Join us in Delhi for DURABLESCONNECT 2018 DURABLESCONNECT a prestigious durables logistics event, bringing together key stakeholders from the entire durables supply chain, with a focus on the air supply chain to share experiences, debate the key industry issues and showcase success stories. We look forward to welcoming you in Delhi, the city, famous for being the commercial and cultural hub, having a vibrant historical significance attached to it.

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news Cogoport Collaborate with FIEO for effective cargo management Federation of Indian Export Organisation ‘FIEO’ and Cogoport, India’s fastest growing digital logistic company has entered into Memorandum of Understanding ‘MoU’ to collaborate, cooperate and interact for the deployment of high performance technology to offer fundamental cargo management service to enable members for their mutual benefit to foster a collaborative framework operating in logistics space. The” MoU” was signed by Ajay Sahai, DG & CEO, FIEO along with Khalid Khan, Chairman “FIEO” Western Region and Purnendu Shekhar Founder, CEO Cogoport during Export Excellence Award in Mumbai. The event was addressed by Chief Guest, Suresh Prabhu, Union Minister for Commerce & Industries, Guest of Honour, CK Chaudhary, Union Minister for State, Rita Teotia, Commerce Secretary, Guest of Honour, Saurabh Desai, Industries Minister and dignitaries and members of ‘FIEO’.

Virgin and DP World launch ultra-fast cargo transport service Dubai’s giant port operator, DP World has joined hands with Virgin Hyperloop One to create a global firm that will build high-speed cargo delivery systems. The new company, DP World Cargospeed, will create futuristic transport systems using Hyperloop’s tube-based technology to deliver goods and link existing road, rail and air transport infrastructure. And, while it will require tens of billions of dollars in investments, it already has potential projects in India, the United Arab Emirates and Saudi Arabia. The incredible technology was rolled-out on April 29th, and the launch was attended by the UAE Prime Minister and ruler of Dubai, Sheikh Mohammed bin Rashid al-Maktoum.. Cargospeed is expected to provide a high-speed delivery service which is “on demand, direct and autonomous”.

Fraport and Swissport Sign Lease Agreement for New Cargo Warehouse at Frankfurt Fraport AG and Swissport signed a long-term lease agreement for a new air cargo facility in CargoCity South at Frankfurt Airport (FRA). Fraport is developing a new custom-built air cargo warehouse for Swissport at CargoCity South. The facility will have a surface of 16,900 square meters, with an additional 2,260 square meters to be used as office and social space. The attractive new warehouse will be optimally tailored to the requirements of modern air cargo handling. Built in line with the latest industry standards, the facility will be designed for flexible use. Construction is scheduled to begin in 2019. The completion and handover to Swissport Cargo Services Deutschland GmbH is planned for the beginning of the third quarter of 2020. “Thanks to the excellent location in CargoCity South and a flexible design, this new warehouse will allow Swissport to meet and continually optimise air freight handling requirements. Therefore, the innovative facility will provide Swissport with long-term growth opportunities at Frankfurt Airport,” explained Christian Balletshofer, senior VP of real estate at Fraport AG.

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Railways allows automobile loading from all box terminals The Railways has liberalised the policy for handling vehicles with an aim to increasing vehicle-traffic handling. This month onwards, the Railways will allow handling of automobile from all container terminals, and allow loading automobile and auto spares in privately owned wagons in different directions for optimal utilisation of stock, said Mohd Jamhsed, Member Traffic of the Railway Board. This was not permitted earlier. “Vehicles can be loaded and unloaded from all Inland Container Depots (ICDs), container terminals managed by Container Train Operators, a move that shall result in availability of additional 86 locations where automobiles can be handed,” he said in a release. The move comes on the back of a growth in handling and revenue from automobile traffic.

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Join us in Delhi for AUTOCONNECT 2018 AUTOCONNECT a prestigious automotive logistics event, bringing together key stakeholders from the entire automotive supply chain, with a focus on the supply chain to share experiences, debate the key industry issues and showcase success stories. We look forward to welcome you in Delhi, the city, famous for being the commercial and cultural hub, having a vibrant historical significance attached to it.

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

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

news Aviation ministry in process to set up task force

Hans Infomatic launches Cargo E-Go digital portal

Union Minister, Suresh Prabhu has released a statement that the civil aviation ministry is in the process of setting up a task force for the manufacturing of passenger aircraft in India. Prabhu, who is the minister for commerce and industry and also holds the charge of civil aviation, said that the government will come out a new cargo policy to spur the growth of the sector. Prabhu also said that a new cargo policy will be announced soon that will be aimed at making India a new cargo hub. He said the government is looking to modernise some of the industries and also set up new industries in the country to boost manufacturing. â&#x20AC;&#x153;For new industries we have identified a few sectors. We have already decided to work with Japan on new emerging sectors. There are also several other countries in the list,â&#x20AC;? added Prabhu. Prabhu said that the next phase of growth in India will be driven by entrepreneurs.

In a leap forward towards building a Digital Logistics marketplace, Hans Infomatic launched Cargo E-Go portal at the recently held Wings 2018 at Hyderabad. The digital platform was introduced to the industry gathering by Vandana Aggarwal, Economic Advisor - Ministry of Civil Aviation, and formally launched by K T Rama Rao, Cabinet Minister for IT, Telangana State. In the industry, which has multiple stakeholders, each specialising in specific services, providing an optimum quality and economical service becomes a challenging task. It requires multiple communication and manual co-ordination to deliver the best possible service. Recognising these challenges and continuing its pioneering solution offerings to digitally integrate multi-stakeholder processes, Hans Infomatic has developed Cargo E-Go. The platform brings together all key stakeholders in the supply chain, to communicate freely and avail the best service offering from one another. Interacting with the industry gathering, Parvinder Singh, MD of Hans Infomatic, said that while one is assured of selecting the most valuable and cost-effective services, the digital platform Cargo E-Go also ensures transparency in decision making.

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news IATA launches certification program for animal safety

Frankfurt Airport Launches “Smart Air Cargo Trailer”

The International Air Transport Association (IATA) has launched a new standardised global certification program to improve the safety and welfare of animals travelling by air. The Center of Excellence for Independent Validators for Live Animals Logistics (CEIV Live Animals) program increases the level of competency, operations, quality management and professionalism in the handling and transportation of live animals in the air freight industry while reinforcing training and compliance across the supply chain.

Frankfurt Airport has participated in the ‘Smart Air Cargo Trailer’ research project to minimise ramp waiting times and increase utilisation of the trucks. Intelligent truck trailers known as ‘smart trailers’ are equipped with complex camera systems that continuously record how full the trailer is. Once a certain loading level has been reached, a control system automatically requests an autonomous truck for transportation. The trucks pick up the trailer and take it to the relevant ramp destination where it is processed by a forwarding agent or cargo handler.

DHL expands e-commerce fulfillment internationally DHL Parcel and DHL eCommerce recently rolled out a global fulfillment platform for online retailers to fulfill their e-commerce needs in the UK, Americas and Southeast Asia. The new IT platform will allow DHL to provide online retailers with access to all important e-commerce regions from a single source. It will ensures simple and secure data synchronization, as well easy connection to new business locations or regions, since reintegration is no longer required.

Adani Ports inaugurate phase II of Dhamra Port

“Allcargo plans to start Uber for shipping”

Adani Ports and Special Economic Zone Ltd, (APSEZ), India’s largest port developer, recently inaugurated the phase II expansion of Dhamra Port in Odisha. The expansion will help the company achieve its vision 2020 of 200 MMT, well ahead of time and we now aim to touch 500 MMT by the year 2025, APSEZ CEO Karan Adani said. The company has deployed more than 3,000 manpower with around 88 per cent locals employed for the phase II expansion, the statement said.

A unit of the Mumbai-based Allcargo, ECU Worldwide, which aggregates orders from clients, plans to use Uber’s model to make it easier for clients to book marine freight. Allcargo Chairman, Shashi Kiran Shetty said, “The idea is to help its customers to make it simple to conduct their business with ECU Worldwide, from any corner of the world through their devices.” Allcargo — which claims to be India’s largest integrated logistics services provider in the private sector — has seen its shares fall 31 per cent this year, while profit dropped about 30 per cent in the three months ended December.

80 CargoConnect - may 2018

APM Terminals inaugurates cold storage facility APM Terminals (APMT) has inaugurated South India’s first cold storage facility integrated with a container freight station, hoping to ensure the reliable transport of temperature controlled cargo. The warehouse, which is located in the Ponneri suburb of Chennai, will be used to store goods such as fish, fruits, medicines and speciality chemicals, which require strict temperature control. The 10,000 sq m facility will offer customs clearance facilitation and proximity to the ports of Chennai, Ennore, Kattupalli and Krishnapattnam with round the clock accessibility.

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Ethiopian Airlines Cargo hosted Air Cargo Agents Awards event Ethiopian Airlines Cargo in collaboration with Allied Aviation Pvt Ltd (CSA, Karnataka, Telangana) hosted its annual Air Cargo Agents Awards event in Bengaluru to recognise its customerâ&#x20AC;&#x2122;s outstanding and unrelenting support. Top supporters included Cargo Partners, ScanWell Logistics India, and Skyways Group.

Growing importance of Digitisation and Automation in Air Cargo How does the future for Air Cargo look like? What automation is necessary in Air Cargo industry? Which developments will lead to digitalisation? Are there real benefits to digital integration? And, other thought provoking ideas were discussed in an interactive session by Parvinder Singh, MD, Hans Infomatic during-the annual lunch gathering of the Air Cargo Club of Delhi (ACCD). Primarily discussions were conducted on the future role of technology and innovation in use of Augmented Reality, Robotics, Automated Guided vehicles, etc. in the air cargo industry. The need of integrating software to ensure better transparency, accuracy, informative and timely transaction processing were also discussed during the day. Key initiatives taken by Hans Infomatic, in developing such integrated digital platforms were highlighted. This included ACMES, an integrated stakeholder communication and management platform that has recently been deployed along with DIAL and Cargo E-Go. Ravinder Katyal, President, ACCD extended vote of thanks to M/S Hans lnfomatic for enlightening the members on importance of digitisation and automation in air cargo.

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events

Qatar Airways Cargo honours Air Cargo Agents Qatar Airways Cargo recently hosted its Annual Air Cargo Agents Awards event at Ahmedabad, to recognise its customersâ&#x20AC;&#x2122; outstanding and unrelenting support. The cargo carrier operates four weekly Airbus A330 freighters and also offers belly-hold capacity on daily A320 passenger flights from the largest city of Gujarat.

ACAAI ER elected new office bearers The Regional Meeting of ACAAI ER was organised to elect new office bearers and a separate team to represent ACAAI ER in their monthly CAFAC meeting. Jaideep Raha, who also happens to be a member of the managing committee of ACAAIâ&#x20AC;&#x2122;s national body was elected as a Regional Chairman in the meeting, while Amit Koley was elected as Secretary, Subir Das as Joint Secretary and Seemah Daga as Treasurer. The CAFAC team was represented by Neha Tandon, Samir Bose, Partha Dutta and Soumoydeep Dutta. ACAAI ER also invited Debasish Dutta, Chairman, FIATA World Congress, to address the members about the upcoming FIATA World Congress which is scheduled to be held in September 2018 at Pullman/Novotel Hotel, Aerocity, New Delhi. Rahul Nandy, General Manager of AAICLAS, Raju Goswami, President of CCHA, executives from Airlines and many others attended the meeting. Samir Das, Branch Manager - DSV Air & Sea, Kolkata, received special thanks on the occasion.The meeting was followed by the fellowship dinner sponsored by Kolkata branch of DSV Air and Sea Private Limited. may 2018 - CargoConnect

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Unsung heroes of roads honoured at Mahindra Transport Excellence Awards Event The seventh edition of Mahindra Transport Excellence Awards honoured unsung heroes of the Indian road transport ecosystem. Change, Road Safety and Innovation were the mantras of the evening that marked the evening of the Mahindra Transport Excellence Awards Event at Hotel Ashok, New Delhi, where the whoâ&#x20AC;&#x2122;s who of Indian Road Transport Sector gathered and honoured various outperformers of Indian Transport. Mahindra Transport Excellence Awards recognise and reward various stakeholders in trucking industry on parameters like outperformance, excellence, innovation and change leadership,

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judged against the backdrop of RISE pillars â&#x20AC;&#x201C; Accepting No Limits, Alternative Thinking and Driving Positive Change. The initiative, with its inclusive nature, has set very high standards for itself. Ministry of Road Transport & Highways have shown their continued support towards the awards programme for the fifth consecutive year. Besides higher numbers, the entries also exhibited better quality, more interesting stories and stronger pitch, giving a feeling that the transport excellence awards have come of age.

events

Bangalore Air Cargo Club organised its Annual Ball 2017 The Bangalore Air Cargo Club (BACC), organised their Annual Ball 2017, at Bangalore. Hari Singh, Founder Member and Past President of BACC was the chief guest on this occasion. The event was inaugurated by lighting of lamp by Mr. Rex, President - BACC, Hari Singh, Past President - BACC, and all committee members of the club. The event was concluded by proposing vote of thanks by Mr. Lokesh, Secretary - BACC and Dileepa BM, Joint Secretary BACC. Boston Matrix Pvt Ltd and Phili Orient Group of Companies were sponsors of the event while Shreeji Translogistics Ltd, Tripath Logistics Pvt Ltd, Aerosail Services Pvt Ltd and Force Logistics Pvt Ltd were the co-sponsors.

may 2018 - CargoConnect

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Express Industry Council of India and Deloitte peg Indian express industry growth at 17% CAGR The Express Industry Council of India and Deloitte released a report titled ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’, at The Oberoi, New Delhi. Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation, launched the report and said, “The express industry is a key enabler for the growth of India’s trade and economy. We are pleased to see the industry sustaining its growth momentum, and also acting as a

major contributor to employment generation within the country.” The report forecasted the growth projection of the industry at 17 per cent CAGR and estimated the size of the industry will touch INR 48,000 crore by 2023. The industry also has a huge employment potential and its employee base will expand from 16 lakhs to 26 lakhs in upcoming years. E-retail will continually be a key growth driver of the Indian express industry.

Report on the insurance requirement of LSPs released

USC Global Supply Chain Symposium India 2018 held in Mumbai

TCI, India’s leading multimodal integrated logistics provider, released an exploratory study, conducted jointly with the Insurance Institute of India (III), exploring the need for insurance in India’s logistics sector. The report, titled ‘Insurance Requirements of the Indian Logistics and Warehousing Industry and their Customers’ was launched by Nitin Gadkari, Minister for Road Transport & Highways, Shipping and Water Resources, at a gala event held at the Transport Bhawan, New Delhi.

USC Global Supply Chain Symposium India 2018 saw a gala presence of dignitaries from all over the world at St. Regis Hotel in Mumbai. The inaugural session was attended by Raj Dias, Symposium Chairperson and President - Global DCM Inc, Nick Vyas, Program Director - USC Center of Global Supply Chain Management, Dheeraj Rastogi, Joint Secretary - GST Council, Ajay Jhalani, Managing Director - WTPL Thailand, Junaid Ahmad, Country Director India - World Bank, Augustine Chalissery, Founder and CEO - SourceProcureDeliver, among a packed audience. The event witnessed unique opportunitie for business executives and professionals to connect and share insights on a global platform on how to strategically manage supply chains in rapidly evolving local and global markets.

86 CargoConnect - may 2018

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APPOINTMENTS Harrison Park appointed MD of UPS Korea

Csafe Global appoints Jeff Pepperworth as new CEO

Saudia Cargo names Omar Hariri as new CEO Saudi Airlines Cargo has roped in Omar Hariri as its new chief executive officer. As the new CEO, Hariri will lead the company and strengthen its current position in accordance with the transformation strategy which took into account, the development of all services provided, the promotion of performance and production. In addition, he will help strengthen the aspects of security and safety in all stations and facilities to meet the international quality standards.

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

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

Dorothea Boxberg is the new CCO of Lufthansa Cargo

Alexis von Hoensbroech named CEO of Austrian Airlines

Lufthansa Cargo has appointed Dorothea von Boxberg as its new executive board member product and sales (chief commercial officer), from August 1. As Lufthansa Cargo’s CCO, Boxberg will be handling sales, revenue management, pricing, network planning and sales management, globally. Boxberg is currently with Lufthansa Cargo as vice president global sales management.

Alexis von Hoensbroech, who is currently a member of the executive board and chief commercial officer (CCO) of Lufthansa Cargo, has been appointed as the new CEO and chairman of the management board of Austrian Airlines, from August 1. Hoensbroech commenced his career in 1999 with the Boston Consulting Group in Munich and Tokyo. Later, he joined as CCO and member of the executive board of Lufthansa Cargo.

Oman Air, the national carrier of the Sultanate of Oman, has recently appointed Paul Starrs as its new chief commercial officer. Starrs brings with him several years of experience in the aviation industry. He will mainly focus on developing a comprehensive and sustainable plan to improve Oman Air’s commercial operations. Earlier, Starrs was employed with Emirates as senior vice president global sales, distribution and ancillary products.

Ralf Garlichs will join Siemens Postal as COO

Robert van de Weg rejoins Volga-Dnepr Group

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

Ralf Garlichs will be joining Siemens Postal, Parcel & Airport Logistics GmbH as Chief Operating Officer (COO), from July 1. He will also be a part of the executive managing board of the company. Garlichs will be responsible to oversee the overall operational and technical functions of all units, worldwide, improving its operational performance.

Robert van de Weg has been roped in as the vice president for sales and marketing to strengthen VolgaDnepr’s global commercial activities. In his new role, he will embrace the commercial activities of all the Group’s airlines - AirBridgeCargo Airlines, VolgaDnepr Airlines and Atran Airlines, with responsibility to strengthen and develop the Group’s ‘cargo supermarket’ strategy.

Allcargo Logistics’ fully owned international subsidiary ECU Worldwide announced the appointment of Rene Wernli as the regional CEO for the India, Indian subcontinent (ISC). Wernli will be based in Dubai and support ECU’s Global Management Team in building a stronger product management function across all product categories.

Oman Air appoints Paul Starrs as new CCO

may 2018 - CargoConnect

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upcoming events WERC National Conference The Warehousing Education and Resource Council (WERC)’s 41st annual conference to be held from May 6 - 9, 2018, in Charlotte, North Carolina. The conference will provide an excellent opportunity to the logistics industry professionals to learn more about the processes involved in warehousing. To know more visit www.wercconference.org APPARELCONNECT 2018 One day conference scheduled on May 17, 2018, to be held at Shangri-La’s Eros Hotel in New Delhi. Knowledge leaders of the apparel logistics industry will share their views on the ways of building a seamless apparel supply chain. To know more visit www.apparelconnect.in

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

3PL & Supply Chain Summit Three-day conference to be held from June 5 - 7, 2018, at the Westin Peachtree Plaza in Atlanta. The conference will focus on e-commerce, high and low-tech solutions, urban, suburban, and rural delivery, and keeping pace with consumers. To know more visit www.events.eft.com India Warehousing Show 2018 Three-day event from June 21 - 23, 2018, at Pragati Maidan in New Delhi. This 8th edition of the show is expected to witness a huge footfall from the Logistics and Transportation industry of India. To know more visit www.indiawarehousingshow.com

DURABLEsCONNECT 2018 One day conference scheduled on July 26, 2018, to be held at Shangri-La’s Eros Hotel in New Delhi. Knowledge leaders of the durables logistics industry will share their insights on the costs and performance of the Indian consumer durables industry, based on extensive interactions with supply chain and logistics heads. To know more visit www.apparelconnect.in Maritime Nation India Three-day event from September 20 - 22, 2018, at CIDCO Exhibition Centre in Mumbai. A unique global platform for exhibitors to demonstrate their expertise and secure business opportunities in the Indian Maritime Sector. To know more visit www.maritime-world.com/mni2018 FIATA World Congress Four-day world level conference to take place at the Hotel Pullman New Delhi Aerocity in New Delhi, from September 26 - 29, 2018. The conference will offer logistics industry leaders from around the globe remarkable insights to industry challenges with sustainable solutions. To know more visit www.fiata2018.org

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Extolling the virtue of Failure

PEOPLECONNECT

Incepted in the year 1983, SKYWAYS GROUP OF COMPANIES has developed a reputation of being a leader in the field of global logistics, successfully meeting the international freight & supply chain needs by providing services that are reliable, time sensitive, cost effective and tailored to the unique requirements of customers. S L Sharma, Founder, SKYWAYS GROUP, in a candid interaction with Upamanyu Borah, describes his entrepreneurial streak in the industry from an employee, and a state of mind he has achieved through a non-linear journey of strategy, discovery, and perspective.

Tell us about your journey so far. I joined the industry in 1968 and over the last 50 years have thoroughly enjoyed the journey. I worked in two large industry conglomerates before starting my own business in 1983, Skyways Air Services (P) Ltd. The company was formed with just 5 personnel and is now a leading LSP in the country with over 400 personnel. Today, Skyways has its presence in 25 cities of India, 2 cities of Bangladesh, and 1 city of Germany. How has the industry changed from the time you stepped in? There has been a tremendous change in the Industry over the last 50 years. When I started, the industry was small and had very basic requirements. As the EXIM grew so did the demands of the customers. The industry has been highly responsive and adapted well to these demands. Professionalism and technology are the two biggest positive transformations I

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have witnessed in the industry over the last 5 decades. Timelines have become shorter and with huge improvement in transportation equipments (aircrafts, vessels, trucks, etc.) the movement o f go o d s h a s b e c o me f a r mor e efficient now.

What is the biggest challenge you’ve faced? Retaining and motivating a team is the biggest challenge for any service industry, and so was for Skyways. Our business is dependent on various factors such as carriers, customs, regulators, custodians, etc. and at times, things don’t go as per plan which can be highly demotivating to all. Therefore constant motivation is required and a sizable amount of time must be spent with the teams by the Management. I have always abided by the 4Ps – Positive approach, Prompt action, Proper follow up and Prosperity to all, and the same has

been inculcated by my generously motivated team.

Your success Mantra? Your Guru in this business? My Motto or Mantra in life is “YOU CAN ACHIEVE WHATEVER YOU WANT IN LIFE, IF YOU HAVE THE BURNING DESIRE IN YOU”. And, for everyone, Gurus in life are the failures that teach us to be wiser and smarter for future. Apart from work, what are your other interests and hobbies? To serve humanity; help the needy and provide medical support to the destitute, particularly school children. I have always been associated with various social causes and have even spread the virtue ‘sense of giving’ among my team members. Skyways Gr oup conduct s va r ious so c i a l activities round the year where our team members come forward and participate actively.

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