CARGOCONNECT - October issue 2018 by Surecom Media

PAGES 100 inclusive of cover

www.surecommedia.com 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

Enhancing Cargo Security: Need of the Hour

Time to Re-Engineer Automobile Supply Chain

Dedicated Air Cargo Airports - The Way Forward

New Age Challenges in Indiaâ&#x20AC;&#x2122;s Road Transport

VOL IX ISSUE XI october 2018 `20

Contents

Volume IX • Issue XI • october 2018

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

20 COVER STORY

Air Cargo What it needs to win?

SPECIAL FEATURE

Time to Re-Engineer Automobile Supply Chain

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INTERVIEW

Asst Manager Marketing Mehuli Choudhury Marketing Executive Akash Gupta

Tushar Jani

Accounts & Administration Nitish Kumar

Ramesh Mamidala

Sr Designer & Visualiser Shaique Ahmad

Chairman, Cargo Service Center ........................66

Infrastructure

Marketing Managers Parminder Singh Rahul Arora

SEBASTIAN SCHOLTE

Chief Executive Officer, Jan de Rijk Logistics .....64

Enhancing Cargo Security: Need of the Hour ....................................10

Director Ajeet Kumar

CEO, Çelebi Delhi Cargo Terminal Management India Pvt Ltd ....................................................68

Mehul Bhatt

MD, Maersk Tankers India ................................70

Designer & Visualiser Mayank Bhatnagar

Kailash Kumar Aggarwal

Joint Secretary, Ministry of Shipping, Government of India ...........................................................72

FRONTLINE ..........................................................6 BUZZ ...................................................................8

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.

INTERNATIONAL CONNECT .................................74

Dedicated Air Cargo Airports - The Way Forward ..................................................48

Startups ...........................................................76

feature

NEWS ...........................................................79-89

CargoConnect is printed, published and owned by Smiti Suri, and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014

APPOINTMENTS .................................................92 EVENTS ........................................................93-95 UPCOMING EVENTS ............................................96 New Age Challenges in India’s Road Transport ................................................56

PEOPLECONNECT Prabal Basu

Chairman & MD, Balmer Lawrie & Company Ltd .....................98

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

FRONTLINE We are planning a new alignment for Delhi-Mumbai express highway from backward areas of Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. That is the reason our land acquisition cost is reduced from `7 crore to `80 lakh per hectare. We saved `16,000 crore in land acquisition in this project” - Nitin Gadkari, Union Minister of Road Transport and Highways said while announcing a new road alignment for Delhi-Mumbai expressway

The government is working on a comprehensive strategy to double the country’s exports by 2025. This is necessary in view of challenges like uncertainty of global trade, rigid approach of banks affecting availability of credit, high logistics cost, and productivity standards and quality.’’

- said Jayant

Sinha

Minister of State for Civil Aviation

“We are likely to go from travelling in auto rickshaws to air rickshaws. There is a wide range of application of drones, from disaster relief, surveillance, security monitoring, precision agriculture, precision logistics.”

Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation informed during a stakeholders’ meeting to discuss strategies for revitalising India’s export

Complete railway electrification will reduce dependence on imported fossil fuel and also costs for the Railways. The PM wants to improve efficiency and by saving on costs we make Indian Railways profitable.”

Piyush Goyal, Minister of Railways of India

said after the Union Cabinet approved a proposal of complete railway electrification in the next four years

“Our paramount vision is to make the air cargo supply chain more transparent and efficient. And, TIACA being the only nonfor-profit organisation representing the entire air cargo supply chain has been playing a leading role in achieving this vision.” Sebastian Scholte, Chairman, The International Air Cargo Association (TIACA) said in an exclusive interview to CARGOCONNECT magazine

CargoConnect - OCTOBER 2018

Massive growth in the e-commerce sector is largely driving the domestic growth. New markets are opening up for the Indian exporters e s p e c i a l l y i n UA E , Africa and South America

buzz

MIA - aiming to be among top 10 airports of the world

irport Authority of India - Chennai Division Regional Executive Director S Shreekumar has said that new state-of-the-art and advanced air navigation aids and advanced security system are being introduced in Mangaluru International Airport. The airport after securing the second position in India as per ASQ rating has achieved a score of 4.85 out of 5 and is placed in the 30th position in the world rankings. The authority has been striving to bring the airport to first position in ASQ rating and various development projects have been planned in this regard. An extension of terminal building of the airport has been planned at a cost of `132.24 crore. With the execution of this project, the current area of the terminal building of `28,000 square metres would be extended by another 10,000 sq mt. Two additional passenger boarding

CargoConnect - OCTOBER 2018

bridges would be built and three more baggage claim belts would be added on the international arrival terminal and three baggage conveyor belts in domestic arrival terminal. A new arrival hall would be built at the car parking level while the elevated level would be reserved for passengers leaving the city. The works are to be completed by April 2020.

Aircraft parking bays would be extended at a cost of `7 crore to enhance the runway handling capacity from 10 flights per hour to 20

The safety basic strip of runway and a parallel taxi track would be constructed at a cost of `121 crore. Aircraft parking bays would

be extended at a cost of `7 crore to enhance the runway handling capacity from 10 flights per hour to 20. The terminal building would be provided with a facelift at a cost of `7.50 crore, to include expansion of domestic SHA, state-of-the-art false ceilings, cladding and planters, catering to international standards. The terminals would showcase the culture of the region through artworks featuring Guttu pillars, tiger dance, Yakshagana figures and so on. These apart, the air navigation system will be upgraded to include Doppler VHF omni-directional radio range (DVOR), radar, advanced instrument landing system (ILS) and advanced security system for improved surveillance. It would have threat containment vehicle to handle bombs and central air traffic flow management (CATFM) facility. All these works are expected to be completed by 2019, he added. CC

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Enhancing Cargo Security: Need of the Hour Despite witnessing several positive developments and reports suggesting that the Indian Air Cargo Industry is set to become the worldâ&#x20AC;&#x2122;s third largest by 2020, there are still few roadblocks existing â&#x20AC;&#x201C; especially security of cargo which is of great importance to the safety of aviation as a whole. Upamanyu Borah and Ritika Arora Bhola, in line with experts elucidates vividly on the current status of security procedures prevalent across Indian airports, along with a comprehensive analysis of the standards being practiced by cargo handlers globally across terminals.

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focus Drive Insight Security of ‘Cargo’ at airport terminals has always been a major issue of concern for the authorities. Although, over the years, various viable initiatives have been taken by the Airports Authority of India (AAI), IATA, GMR Group, airlines and other concerned bodies to ensure hundred per cent safety of cargo transportation and storage, a number of glaring gaps still exists in the security architecture, especially in the country’s smaller airports. Despite various positive developments happening at the airports, such as installation of advanced technologies, cargo tracking applications, high-end equipments to load/unload cargo, etc. there are still many roadblocks that need immediate attention of authorities.

Infrastructure & Security Challenges at Indian Airports According to reports, dearth of security gadgets – like shortfall in Random Screening Equipment (X-BIS machines, hand-held metal detector, door frame metal detector and explosive trace detector), Communication Equipment (VHF, walkie-talkie and hands free), Bomb Detection and Disposal Squad (BDDS) equipment are reasons which worries airport staff as well as exporters/importers. Apart from this, private security guards at majority of the airports are deployed for access control duties. The involvement of multi-agencies – security guards of the airport operators, security personnel of cargo handling agents, and the Central Industrial Security Force (CISF) – mainly creates gaps in the overall security architecture. However, Former Directorate-General of Civil Aviation (DGCA), Lt Kanu Gohain, who also worked on aviation security matters had said, “The AAI and the CISF need to improve their coordination mechanism but there is no need for a new security force. CISF is adequately staffed and equipped and

OCTOBER 2018 - CargoConnect

focus has over the years developed a range of expertise in aviation security. We need to build on this expertise of the CISF.” Meanwhile, as per facts, installation of CCTV system does not exist at six small airports namely - Dimapur, Jorhat, Lilabari, Silchar, Tezpur and Khajuraho – while full coverage of CCTV is not available at 33 airports. Provision of digital video recording system for 30 days does not exist at 20 airports and the Video Analytic Features need to be activated at all airports to ensure 100 per cent safety of cargo. Another cause of worry is unavailability of Dog Squads at six main airports namely Coimbatore, Agra, Gwalior, Porbandar, Port Blair and Diu from where thousands of shipments are moved every day.

“CISF is adequately staffed and equipped and it has over the years developed a range of expertise in aviation security. We need to build on this expertise of the CISF” Lt Kanu Gohain Former Directorate-General of Civil Aviation (DGCA), Govt. Of India

Also, Counter Terrorist Contingency Plan (CTCP) by CISF are available only at Delhi and Mumbai – this is something that needs to be put in place at 20 more international and ‘hyper-sensitive’ airports. The gaps are not restricted to just the smaller airports. During the course of a security review done recently at the Indira Gandhi International Airport (IGIA), the Delhi Police is reported to have highlighted several grey areas in the security detail, including inadequate CCTV coverage; the jungle area around T-3 being marked as vulnerable from the security point of view and the private land of DIAL cited as having neither the boundary or fencing and nor being protected by guards.

The cargo operations inside the airport have also been flagged as another cause of concern. The cargo complex is accessed by more than 5,000 casual employees daily for their work, most of who do not have validated entry passes and an easy access to apron side. The issue of presence of slums in the vicinity of the airport area is another security threat. Currently, Mumbai Police and the CISF need to keep vigil on the slums on the hillock and ensure security of airport operations.

Real Time Measures

“India being the member state of The International Credential Assessment Service of Canada (ICAS) has complied with the fullest during the, ‘International ICAO audits’ conducted during the past.” Ramesh Mamidala

Ramesh Mamidala, CEO, Çelebi Delhi Cargo Terminal Management Private India Limited, underscores the various security measures/procedures available at the Delhi airport terminal which ensure safety of cargo at IGI airport.

• “Implementation and maintenance of security and safety processes across the cargo terminals to reduce risks, respond to incidents, and limit exposure to liability in order to reduce financial loss to the organisation.

• Having the terminal CTPAT complaint - Customs-Trade Partnership against Terrorism. (C-TPAT) is a supply chain security program led by U.S. Customs and Border Protection focused on improving the security of private company’s supply chains with respect to terrorism.

CEO, Çelebi Delhi Cargo Terminal Management Private India Limited

Airport operator DIAL has countered some of these assertions by the Delhi Police on the outer periphery security detail, claiming that a Perimeter Intrusion Detection System has been made serviceable and that there are a total of 41 watch towers at IGI Airport that are more than the requirement mandated by BCAS (vide BCAS circular No.18/2002). All the watch towers, they claimed, are being manned by the CISF on a round-theclock basis.

12 CargoConnect - OCTOBER 2018

There are security gaps at the Chhatrapati Shivaji International Airport in Mumbai as well. According to a review report conducted recently, the airport operator – Mumbai International Airport Ltd – has recently raised the issue of deployment of a total of 3,797 CISF personnel as against the sanctioned strength of 3,996. They have also placed a demand of additional 882 personnel for the domestic operations from terminal T2, which is pending approval from the Ministry of Civil Aviation.

• NSG Anti-terrorist drills in the terminal for familiarisation in preparation for ‘Terrorist Attacks’. • Installation and management of around full HD CCTV cameras with the best of the video analytics available.

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“With limited infrastructure and resources available, the security of air cargo is far from desired. It is not possible for air cargo agents to ensure tight security throughout the chain of movement of cargo till it reaches the airport.” Bharat Thakkar Joint Managing Director, Zeus Air Services Pvt Ltd

“Even when there are only local safety standards required, we always want to go by the highest possible level of security. We want to make sure that we not only comply with security regulations, but that we are front-runners in the industry.” Lothar Moehle Director of Air Security Standardisation, Global Air Freight, DB Schenker

14 CargoConnect - OCTOBER 2018

• Complying and Implementation of BCASBureau of Civil Aviation Security, TSA (Transport Security Administration- TSA (Transport Security Administration) and DFT (Department of Transport) security standards.

• Having the NFS-National Fire Services complied safety standards as cargo terminal is prone to accidents due to various reasons such as speed breach, irregularity in handling, etc. And, implementing various steps to ensure an accident free environment.

• Access control & Inspecting Cargo entry. ETD (Explosive trace detectors) machines, X_BIS(X Ray Baggage Inspection Systems), 100 per cent screening of cargo, deployment of sniffer dog to search explosives. Sniffer dog periodic searches.

• Cargo terminals have been handling enormous challenge of installation of best fire-fighting technology in huge terminals spanning across thousands of sq m of land, installations of fire hydrants all across the terminal as per regulations, with the deployment of trained fire officers and more than required trained fire wardens to counter any crisis situation.

• Managing comprehensive location-wide safety and security education and awareness programs for employees and security personnel. Preparing incident written reports on all significant incidents happening at the institute. • During the Fire Safety Drill ensure that the floors in the buildings are cleared of employees. Ensure the safety and security of all assets and goods of the Institute including third party assets. Advise the management proactively on all security related issues. Handling the presence of multiple agencies eminently, volatility in business, specialised expertise in services, and handling challenges such as unionism etc. • Hundred per cent CCTV coverage. Strong monitoring of all the vital installations of cargo and external vendors, efficient vigilance control over outsourced manpower including incentives and penalties. Information security and robust surveillance systems in place. • Proper and periodic background checks of manpower involved. Security awareness training of all the employees of supply chain as a regulatory directive. • Stringent Access Control measures like 100 per cent Frisking/Biometric access controls, Optimum deployment of trained security manpower ranging from security marshals to security officers) hundred per cent staff uniform/ID Biometric Access control implementation.

According to veteran freight forwarder, Bharat Thakkar, Joint Managing Director, Zeus Air Services Private Limited, “With limited infrastructure and resources available, the security of air cargo is far from desired in our country, it is not feasible for our members to certify security/ compliance of contents of shipments. It is not possible for air cargo agents to ensure tight security throughout the chain of movement of cargo till it reaches the airport. This is only feasible in restricted, protected and secured environment of an airport cargo terminal. This is the final stop on ground for an export business before it flies out and at this point one must ensure a comprehensive and conclusive security closure.” Meanwhile, a senior official from Turkish Cargo - which move thousands of tonnes of cargo to and from India every day, talks about the security procedures they have put into place. He says, “Turkish Cargo terminal is fully equipped with high technology CCTV systems and no security blind spots. Interior and exterior areas are constantly monitored by a total of 330 high resolution cameras on a 7/24 basis. Only authorised staff has access to the warehouse. Each piece of outgoing cargo (except live animals, some kinds of healthcare products

focus and pharmaceuticals, and undeveloped films, etc) is screened by x-ray machines and detected by ETD systems and EDD sniffing dogs. For Valuable consignments, there are dedicated “Vaults” (VAL rooms) equipped with the latest technology such as pieces manual locking system, digital code, magnetic locks, alarm, motion and impact detection and surrounded with aluminum sheet cladding walls. For Vulnerable items, there are also dedicated rooms with dedicated guards shifting on a 7/24 basis.”

Concerned official bodies The Bureau of Civil Aviation Security (BCAS) is the nodal agency for laying down aviation security standards in line with the rules set by Chicago Convention of the International Civil Aviation Organisation (ICAO). The Bureau monitors and implements security rules and surveys the security needs of airports.

“We are the last gate before the shipment is put on board. We like to go over and above the minimum regulations. If everyone took security seriously, the minimum legal requirements would be sufficient.” Kelvin Ko GVP & Head of Logistics Technology - BPS Global Group

“All airlines and their handling representatives internationally must be obliged to ensure that air cargo is safe and secure. Those who give minimum attention/funding to the issue of security could be the ones to suffer in challenging times.” Harald Zielinski Head of Security and Environmental Management, Lufthansa Cargo AG

While the BCAS frames the rules and regulations for civil aviation security, CISF acts as the implementing agency for the guidelines framed by the Bureau. The latter also draws up airport-wise Counter-Terrorism Contingency Plans, which are currently available only at Delhi and Mumbai airports.

16 CargoConnect - OCTOBER 2018

1. Advance Information The standard Advance Cargo Information, ahead of the arrival of goods helps processing and clearance of cargo.

2. Standard CSD The Consig nme nt Sec urity Declaration (CSD) provides an audit trail of how, when and by whom cargo has been secured along the supply chain.

Founded in 1978 in response to the hijacking of an Indian Airlines jet to Lahore two years earlier, the BCAS started as a cell within the DGCA. Another wing of the Ministry of Civil Aviation, the DGCA looks after the issue of safety at the Indian airports including licencing of airlines and aircraft. The government empowers the BCAS Commissioner of Security to issue directions under Section 5A of Aircraft Act 1934 with respect to civil aviation security matters. He is also empowered to exercise all powers and duties conferred under the Aircraft Security Rules 2011. The security architecture laid down by the BCAS comprises of the National Civil Aviation Security Programme, Security Training Programme, Security Quality Control Programme and Bomb Threat Contingency Plan.

The International Air Transport Association (IATA) which supports aviation with global standards for airline safety, security, efficiency and sustainability, has set up the Cargo Security Working Group (CSWG) to ensure that the experiences and constraints of the airline industry are considered in the development of effective security regulations. To support regulators and strengthen supply chain security, IATA and the industry are working on the following main initiatives:

3. Capacity Building Through th e Cargo Sec ur it y Capacity Building Program, IATA works with regulators’ and industry to ensure air cargo is protected from unlawful interference across the whole supply chain.

4. ACC3 Validation IATA supports air carriers in complying with EU ACC3 Validation process providing all the necessary information and assessment to prepare for their validations.

“Well, in addition to the practices introduced by IATA, The International Civil Aviation Organisation (ICAO) being the ‘Internationally recognised body to form standardised policies for Aviation Security, all the good practices introduced by the European nations to be incorporated by ICAO are to be followed and implemented mandatorily by the

focus member states for the movement of cargo to travel from and to all member states. And, India being the member state of The International Credential Assessment Service of Canada (ICAS) has complied with the fullest during the, ‘International ICAO audits’ conducted during the past,” Mamidala elaborated. “Simplifying processes, enhancing efficiency; and maximising safety and security are in everybody’s interest — shippers, border authorities and airlines. Collaboration is critical. And the integration of Cargo-XML into WCO CTS is the latest example of the positive results that can be achieved.” Alexandre de Juniac Director General and CEO, International Air Transport Association (IATA)

“Effective electronic data exchange is integral for Customs authorities to build accurate risk assessments of cargo shipments. Using standardised and quality information is key to enhancing security, expediting customs clearance, optimising customs resources and facilitating global trade.” Kunio Mikuriya Secretary General, World Customs Organisation (WCO)

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On the front lines Lothar Moehle, Director of Air Security Standardisation, Global Air Freight, DB Schenker said his company often takes on the role of a consultant with customers to make sure they are in the most secure environment. Forwarders, he said, are just as concerned as airlines that an explosive device does not get into a forwarder’s warehouse. “Even when there are only local safety standards required, we always want to go by the highest possible level of security,” he said. “We want to make sure that we not only comply with security regulations, but that we are front-runners in the industry.”

been installed in the US$6 billion facility, designed to handle 2.6 million tonnes of cargo per year. The automated storage and handling systems ensure that very few people have to enter the building, “except for a limited number of engineers,” Ko said. The few who are allowed in the facility must be permit holders, with a scan card and photo ID. Each worker’s card is checked against the main database for each entry, with photo analysis software used to confirm the person’s identity. There are also metal detector machines for anyone going into or out of the cargo area. The scanning machines used at Cathay’s terminal have two X-ray generators, so they can view a pallet from two angles as it passes through, providing a more detailed picture of the contents. “To some extent, it is effective,” Ko said. “We don’t know better technology out there to scan pallets, combined with highly trained operators and intelligence reports.”

Most of DB Schenker’s customers are known consignors that have worked the company for many years, “so many of the security protocols are almost routine,” Moehle said. “But for new customers, there is an enormous screening process we go through to make sure they are all legal companies and well-known in the market. We also check to see if they are shipping any strange kinds of commodities.”

“A lot of what we do is trans-shipments,” Ko said. “Many of the airlines are in the Cathay Pacific Group and use a common protocol, so the risk level for air-to-air and air-to-land transfer is OK – at least it’s manageable.” But cargo coming from a truck has far more variables to consider, and is therefore considered a higher-risk, so it is subject to U.S.-style 100 per cent screening.

“The industry has become much more aware of the risks,” said Kelvin Ko, GVP & Head of Logistics Technology - BPS Global Group, and Former CEO - Cathay Pacific Services Ltd (CPSL). “We’ve created a system that balances commerce and security and makes sure it’s the safest possible environment.”

“Our perspective as a cargo terminal is that we are the last gate before the shipment is put on board an aircraft,” Ko said. “We like to go over and above the minimum regulations. If everyone took security really seriously, the minimum legal requirements would be sufficient. But it’s only if everyone takes it seriously.”

At just over a year old, the new Cathay Pacific Terminal has not experienced any security issues, but safety was built into it from the ground up, Ko said. More than 1,000 HD security cameras have

Harald Zielinski, Head of Security and Environmental Management, Lufthansa Cargo AG, “Lufthansa Cargo set considerably higher standards which even exceed legal and other binding

focus requirements. Our premium security hubs offer the same level of security as our other cargo centres, fulfilling all of our security regulations and security level requests. However, the ‘package’ that we offer within this premium security service is of an extremely high standard including internal security, digital CCTV and exceptional customer service. As mentioned, we still fulfil our security needs but within a ‘premium’ environment. IATA’s Cargo-XML messaging standard which has been fully integrated into the World Customs Organisation’s (WCO) Cargo Targeting System (WCO CTS), is a risk assessment tool available to WCO member countries worldwide. The integration of Cargo-XML in the WCO CTS has enabled electronic communication between airlines and customs authorities using the IATA Cargo-XML standards format. IATA’s Cargo-XML eliminates the constraints posed by the traditional Cargo Interchange Message Procedures (Cargo-IMP) standard and is designed to promote broader and seamless data interfaces. Alexandre de Juniac, Director General and CEO, International Air Transport Association (IATA) said, “Simplifying processes, enhancing efficiency; and maximising safety and security are in everybody’s interest — shippers, border authorities and airlines. Collaboration is critical. And the integration of Cargo-XML into WCO CTS is the latest example of the positive results that can be achieved. About one third of the value of goods traded across borders is transported by air. We look forward to the further expansion of our vital work with the WCO in support of efficient world trade.”

“Effective electronic data exchange is integral for Customs authorities to build accurate risk assessments of cargo shipments. Integrating Cargo-XML into the WCO CTS will allow customs authorities using this tool to easily access detailed information about shipments, profile these shipments and identify those presenting a high-risk,” said Kunio Mikuriya, Secretary General, World Customs Organisation (WCO).

Turkish Cargo also receives security services from a 3rd party solution partner to securely move cargo and prevent acts of illegal interference in accordance with the rules set by Aviation Industry by considering the requirements of airline security programs and accepted authorities

“Using standardised and quality information is key to enhancing security, expediting customs clearance, optimising customs resources and facilitating global trade.”

Building a convergence zone We need a move away from blanket prescriptive measures about security and towards a risk-based approach, on the part of the airlines, forwarders and handlers. From a security perspective, passenger screening is one of the current major concerns for airports and this should be the same for cargo screening. “Making air cargo safe and secure everywhere remains a challenge for the future. Some airlines are leading by example on this and investing in

the highest standards which often go beyond the minimum required by law to a significant degree. The next milestone must be to ensure all air cargo warehouses worldwide are operated at such a high level. To achieve this, all airlines and their handling representatives internationally must be obliged to ensure that air cargo is as safe and secure as checked baggage and this must be enforced globally. Otherwise, those who give only the minimum of attention and funding to the issue of security and its aspects could be the very ones to suffer financially in challenging times for the industry,” asserts Zelinski. In some airports, they focus, quite rightly, on the passengers as cargo may not play a huge part of their operations. For some airports the cargo area itself is not secure but this must change. The security level within the cargo area does not need to be at the same level as the apron but perhaps at a level of security between what is instigated at the apron and the passenger terminal buildings, he added. Thakkar said as intermediate service providers, we support enhancement in air cargo and aviation security. However, the need is for the measures to be efficient, realistic and total so that, security is fully and effectively achieved and such an objective can only be attained at the airport cargo terminal. However, Zielinski predicted that over the next 10 years, the emphasis on security will move closer and closer to the airport. “Rather than rely on someone else to screen the cargo from far away, it’s better to do it closer to the airport.” Air carriers and handlers, he said, will develop “a very close partnership with forwarders, based on the actual risk situation.” CC

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cover story

Air Cargo What it needs to win? Indian air cargo sector is booming and itâ&#x20AC;&#x2122;s expected to materialise a double-digit growth rate of 14-15 per cent in the current financial year. In this report, we tried to explore the trends which are fueling growth in the sector and also touched on points pertaining to the significance of supply chain transparency and security of air cargo in the supply chain. We also attempted to evaluate how much impact does global events like TIACAâ&#x20AC;&#x2122;s Air Cargo Forum 2018 put on the global air cargo sector as a whole. - Gaurav Dubey

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cover story

OCTOBER 2018 - CargoConnect

cover story

t would not be an exaggeration if we say air cargo sector could be an absolute standard barometer to access the economic health of any country. This sector touches life of every common man as it involves shipment of high value goods, time sensitive and temperature-controlled items like pharmaceutical, live animals, electronic goods etc. So, boom and downfall in the sector both impacts the overall economy of a country.

Available figures say that in the previous financial year, India’s domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes. India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.63 thousand and 437.93 thousand during 2017-18, respectively. By 2023, total freight traffic is expected to touch 4.14 million tonnes exhibiting growth at a CAGR of 7.27 per cent between FY2016 and FY23. In addition, international freight traffic

Inside Trends which are fueling growth in the Indian air cargo sector Transparent air cargo supply chain adding value to shippers’ business Enhancing air cargo security without slowing down supply chain Views of air cargo professionals on TIACA’s Air Cargo Forum 2018

is expected to grow at a CAGR of 7.13 per cent while domestic freight traffic is expected to grow at a CAGR 7.50 per cent between FY2016 and FY23. Although these figures are impressive but in order to ensure smooth flow of air cargo it is critical to enhance safety, security and strengthening of value proposition of air cargo. Air cargo is an emerging market and as per reports the Middle East and Africa is expected to deliver the fastest growth in air cargo volumes over the next five years. Trade lanes between Asia and Middle East, within the Middle East region and between North and South America are showing a strong growth forecast. Recently, Civil Aviation Minister Suresh Prabhu chaired a meeting of airlines and airport operators during which he had stressed the need for making India the next cargo hub. The minister emphasised on manufacturing of aircraft hardware in India, developing a robust chopper service and carrying out a demand survey for development of routes. Apparently, India has the potential to become a global air cargo hub. The rapid growth in domestic and international trade and a huge consumer base of more than 1.3 billion people

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cover story “The cross-border e-commerce has been presenting an excellent growth opportunity for the air cargo sector. Online sales are growing at double digit pace and air cargo is in prime position to capture this new business.”

Glyn Hughes Global Head - Cargo, IATA

facilities and services. Significantly, the new Civil Aviation Policy has given adequate importance to transshipment cargo and suggested for setting up of Free Trade and Warehousing Zones (FTWZ) to facilitate the same. The policy has also directed the Air Cargo Logistics Promotion Board (ACLPB) to give more insights and accordingly promote this sector. The ACLPB is constantly monitoring the potential and facilities for transshipment cargo from different foreign/Indian airports to Indian gateway airports and vice versa.

India on the verge of a revolution all augur well for the country’s air cargo industry. There is a popular saying ‘all that glitters is not gold’ and it’s right fit for the Indian air cargo sector, because despite several advantages the country has not been able to realise this potential due to the various reasons, such as -

The air cargo market in India has the potential to become a global hub not only because of its geographical location, but also for the transformation which the Indian Air Cargo sector has been witnessing from the past few years. According to global analytical company CRISIL, India’s air cargo growth will reach 14-15 per cent in the financial year 2018-19 as • Inadequate infrastructure in terms of warehouses, dedicated cargo against 12 per cent growth which was achieved in the previous freighters, inefficient supply chain, feeder financial year. The double-digit growth services, and unavailability of proper rate of Indian air cargo sector is expected According to CRISIL, equipment, etc. to continue over the next five years in India’s Air Cargo growth terms of both international and domestic will reach up to 14-15 • The Indian Air Cargo sector is striving to volumes on the back of – per cent in the present catch up to superior level of technological financial year 2018-19 as • Government of India is at the advancements. But issues of data against 12 per cent growth verge of rolling out National Air Cargo consistency, data quality and integration which was achieved in the Policy, which is expected to transform the problems within the supply chain are posing previous financial year Indian air cargo industry. a challenge in the digitisation drive. Despite the challenges existing in the Indian air cargo sector, available transshipment opportunities could be explored and harnessed in the best possible manner. Having that said, India has tremendous geographical advantage for transshipment cargo especially in some airports such as Delhi Airport (DEL) which has substantial capacity at present. Similarly, other green-field airports can also handle transshipment cargo efficiently. Here too, there is requirement of proper policy guidelines, especially for Customs. Of late, there have been some initiatives from the government and stakeholders, though things have to be further expedited and processes be made hassle-free to woo international transshipment cargo with world standard

24 CargoConnect - OCTOBER 2018

• Dwell time in practice has come down from 72 hours to 48 hours. •

A large percentage of the domestic growth is being witnessed due to the massive growth in e-commerce industry. • A new market is opening up for Indian exporters especially in UAE, Africa and South America.

• Manufacturing sector is now gradually shifting to South Asia. Government initiative of ‘Make in India’ programme is paving the way for attracting such manufacturing shift. Airlines are making huge investments in procuring aircrafts. At present around 600 aircrafts fly in India and carry out 2000 flights in a day. Indigo alone operates 1000 flights, i.e. 2000 flights with a capacity of 3000 tonnes,

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cover story “Integrators or airlines that supply high level of transparency always move to the front in the class. So, transparency is highly valuable and it is undoubtedly important for shippers.”

Tim Strauss Vice President - Cargo, Air Canada

On the part of MABkargo we saw an increase of about 15 per cent in both capacity as well as market demand in India this year as compared to last year.” Further, talking about the possible obstacles which could come in India’s way of becoming a global air cargo hub, Yussof said, “India definitely has what it takes to become a major cargo hub in the Asia Pacific region. The foreseeable obstacles which I observe are -

which works to around 6000-8000 tonnes belly capacity per day connecting 40-50 airports in the country. Approximately, 60 per cent of the domestic belly air cargo has an underload and if it’s used it would create a lot of potential.

i. Capacity constraints in India - The demand in

Emergence of the pharmaceutical industry is a major addition to Indian exports in air cargo market, India’s pharma exports grew to $17.27 billion in 2017-18 and market studies reveal that it is expected to grow up to $55 billion by 2020-21. Apart from pharma, India also holds second rank in the production of fruits and vegetables in the world.

ii. Connectivity for transit cargo must be enhanced - The hub and spoke connectivity in India must be

According to Sanjiv Edward, Chief Commercial Officer, Delhi International Airport Pvt Ltd (DIAL), Delhi Airport (DEL) is handling the country’s highest air cargo volume to the tune of one lakh metric tonnes annually and is now poised to become an air cargo hub of the northern region. Over the years, DIAL Cargo has undertaken several initiatives and projects to improve infrastructure capacity as well as to bring efficiency in handling processes by deploying best practices in line with several leading airports of the world. On being asked about India’s potential of becoming a global air cargo destination, Amiroel Shazrie Yussof, General Manager - Sales & Marketing, MABKargo Sdn. Bhd said, “MABKargo views India as a high potential destination as far as cargo is concerned, especially from China and other ASEAN markets.

India from China and other ASEAN markets is on an upward trend but the capacity in Indian destinations especially during peak period remains limited.

enhanced in order to cater the high demand. Furthermore, domestic connectivity to other points in India can also be improved by enhancing the road feeder service network. iii. Ground handling service levels not up to the mark - Ground handling service levels must be at

par with other hubs in the Asia Pacific region. In order to develop India as a global air cargo hub, there is a need to improve the efficiency of ground handling services in Indian airports to meet customer expectations.

“Shippers are seeking for transparency and high level of quality performance to meet the needs of final consumers, with the most upto-date digital solutions in place to track the status of the shipment and guarantee 24/7 monitoring.”

Sergey Lazarev

General Director, AirBridgeCargo Airlines

What’s around the corner? Presenting his views on the global scenario, Glyn Hughes, Global Head of Cargo, International Air Transport Association (IATA) holds the view that cross-border e-commerce has been presenting an excellent growth opportunity for the global air cargo sector. He says, “Online sales are growing at a double digit pace and air cargo is in prime position to capture this new business. Traditional retailing is being designed around supply chains that can efficiently move bulk shipments from production sites to distribution centers and from there to stores in a particular time frame. Cross-border is all about moving smaller shipments in the

26 CargoConnect - OCTOBER 2018

cover story “We need to look for the larger picture, a separate forum should be made, under the umbrella of TIACA, comprising of Asian, African, Middle East and Far East countries for the air cargo industry’s development.”

Strauss further informed that decisions on cargo security should be made in a manner which increases security without slowing down the process and that these kinds of decisions should be taken only on the basis of predictive analysis.

Tushar Jani

Air cargo sector is dependent on geopolitical, economic, financial, and other factors, which influence development and growth of the industry. Sergey Lazarev, General Director of AirBridgeCargo Airlines identified recent trends in the sector - Rising income among middle class consumers in regions, especially in Asia, and their emerging demands for higher quality lifestyle is leading to increased volumes of both exports and imports

Chairman, Cargo Service Center

B2C or B2B world much quicker with less slack in the supply chain delivery cycle. And, here air cargo excels.

Security of the cargo is the sector’s number one priority and we all have our part to play in mitigating the risk. A multi-layered Ever-increasing growth in demand for e-commerce products stream approach could enhance security – segment, has been developing at a fast of cargo without causing bottlenecks pace from the last couple of years. From and congestion. The effective use of one side e-commerce bonanza in the IGI Airport is handling advance data will also facilitate more world is driving demand for exports from country’s highest air effective targeting and supply chain China to all parts of the world, while on cargo volume to the protection.” the other side, explosion of e-commerce tune of one Lakh metric activity in China and with netizens is ton annually and now is Tim Strauss, Vice President - Cargo, becoming more tech-savvy and in turn poised to become an Air Air Canada Cargo touched upon various fostering air freight imports to China Cargo Hub of the region points ranging from trends in air cargo to measures that should be taken for cargo Digitalisation of services, which not security in the supply chain. He also only simplifies the process of cargo emphasized on the ways through which transportation, but makes it more a transparent supply chain can add transparent and reliable, with customers value to a shippers’ business. Strauss being able to monitor their shipments informed, “The global economy is status 24/7 in a real time manner super-hot right now, and almost while getting more enthusiastic all sectors are performing about using air cargo services well in the present scenario. This is good news for all Emerging demand for of us. Global demand for transportation of special cargo perishables continues in line with high demands from to be very strong. Both shippers for transportation these sectors are likely to (temperature conditions be a stabilising factor for for pharmaceuticals and air cargo in the event of a perishables, security and downturn in the economy.” safety for dangerous goods, comfortable conditions for While talking about the vitality animals, etc) of establishing transparency in supply chain, he added, “Integrators Development of cargo infrastructure, or airlines that supply high level of with building major logistics centers, transparency always move to the front in the enhancement of airport and warehouse class – we all love to see what’s happening with our infrastructure, creation of favorable conditions for air shipment, scheduled delivery, etc. So, transparency is highly carriers at some airports, talent acquisition and training for valuable and it is undoubtedly important for shippers.” handling of special types of cargo

28 CargoConnect - OCTOBER 2018

cover story “From the perspective of the Indian market, there has been increasing demand for products for the export of pharma, perishables, high tech electronics and readymade garments.”

Keki Patel

Cargo Manager – India and Nepal, Emirates SkyCargo

Outlining the amount of importance transparency in air cargo supply chain carries for shippers, Lazarey said, “Gone are the days when shippers used to value only speed as the main advantage of air cargo. Presently, they are seeking for transparency and high level of quality performance to meet the needs of final consumers, with the most up-to-date digital solutions in place to track the status of the shipment and guarantee 24/7 monitoring. With that said, shippers are aimed at developing relations with forward-thinking, quality driven, and tech-savvy carriers to be able to add value to their services and deliver outcomes as promised to their clients, i.e. final consumers. Meanwhile, for enhancing security of air cargo without slowing down the supply chain processes, security has been at the forefront of air cargo sector and a lot of measures have already been introduced in majority of the airports, cargo facilities, warehouses – additional cargo screening, video and photo surveillance during the process of cargo handling and ground transportation, introduction of digital solutions to be able to monitor the condition of cargo (e.g. temperature loggers for temperature-sensitive cargo, shock sensors for valuable or out-of-gauge shipments). Furthermore, actions will need more collaboration from all supply chain stakeholders with the ‘datasharing’ approach to get 100 per cent transparency, increase in security, and overall performance of air cargo transportation.

and so on. From the perspective of the Indian market, there has been an increasing demand for products, especially in the export of pharmaceuticals, perishables, high tech electronics and readymade garments.” Earlier this year, Emirates SkyCargo received Cargo iQ certification and Patel said that it is a direct result of the measures that they have taken to minimise and eliminate shipping errors while offering more visibility on shipments.

“In order to have transparent and quality driven air cargo supply chain, TIACA has launched ‘On-line Cargo Service Quality (CSQ)’ tool with a vision of driving Global Standards and raising the profile of Air Cargo.”

Sanjiv Edward

Chief Commercial Officer, Delhi International Airport Private Limited

Agreeing with the above professionals, Edward said, “In today’s world, shippers By 2023, total freight Emirates SkyCargo is a global player in expect that the air cargo supply chain traffic is expected to the air cargo sector which transports should offer complete transparency touch 4.14 million tones cargo to over 160 destinations across six along with providing quality and exhibiting growth at a continents. Keki Patel, Cargo Manager efficient services. In order to have CAGR of 7.27 per cent – India and Nepal, Emirates SkyCargo, transparent and quality driven air cargo between FY 2016 and FY who carries more than 3 decades supply chain, TIACA has launched ‘On2023 experience in the air cargo sector, while line Cargo Service Quality (CSQ)’ tool talking about the trends said, “With with a vision to drive global standards such a broad base, we see a wide variety and raise the profile of air cargo. This for demand across the various markets tool will greatly benefit the shippers by where we operate. Globally there has been an increase in the providing them visibility to the standard of services offered by need for specialised solutions for various industry verticals various stakeholders throughout the air cargo supply chain, and we have responded by creating a suite of solutions thus giving them multiple options for opting services by including Emirates Pharma, Emirates Fresh, Emirates Wheels, benchmarking them on techno-quality parameters.”

30 CargoConnect - OCTOBER 2018

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cover story

“Digitalisation is one of the most important growth trends which is sure to drive business in the future. ”

Ashwin Bhat Head of Cargo, Swiss WorldCargo

of all. E-commerce is at the heart of everything these days; the growth of air cargo is directly linked to e-commerce growth. Indeed, it is presenting a host of opportunities to the air cargo industry.” More believes that blockchain technology would guarantee integrity and complete consolidation of air cargo records with verification. Briefing on the importance of cargo security, he said, “The move towards being 100 per cent e-freight enabled will naturally result in enhanced security of air cargo while optimising the supply chain. There needs to be a broader push at the policy and regulatory levels to ensure we as an industry, with the help of technology, reach these wide-ranging goals sooner rather than later.”

While commenting on the potentiality that the trend of digitalisation would offer, Ashwin Bhat, Head of Cargo, Swiss WorldCargo said, “Digitalisation is one of the most important growth trends which is sure to drive business in the future. Whether it is the development of new tools which can benefit the entire supply chain or internal measures to Dheeraj Kohli, Vice President and Global Head – Travel boost performance, different companies within the air cargo and Transportation, Unisys on the question of prevailing sector are looking at continued ways trends and driving forces avows, digital offerings can promote positive “The nature of cargo products that change. We are continuing to look at gets shipped through air has seen a Recently, TIACA has ways within Swiss WorldCargo through significant shift over the last few years. launched a pilot of its which we can offer the right tools and The predominance of new products, new online Cargo Service innovations that would drive us forward such as pharmaceuticals, perishables, Quality (CSQ) tool which – both within our organisation and as a e-commerce and mail require more allows forwarders to means of supporting our customers. personalised sales interactions, better rate and review the controls and visibility on operations, service quality they There needs to be regular conversations and compliance and innovative payment receive at hubs and communications between ground settlement procedures. We see continued handling staff and all stakeholders – growth on these product sectors. the airlines, authorities at the airports, However, to deliver on this promise, all forwarders and shippers. Such dialogue stakeholders have to rethink, innovate and promotes good communities, develop a comprehensive strategy on the progress – and ultimately, an front of digital transformation.” effective collaboration between all parties,” Bhat added. “We believe a comprehensive strategy needs to be adopted Digitalisation has been a to address physical shipment key growth driver in the Air security, security related to Cargo Industry in recent people and locations where times, says Amar More, shipments are handled. Also, CEO, Kale Logistics cyber security relating to Solutions Pvt Ltd. He shipment information across informed, “The shift from the supply chain is needed paper-based reporting and for the industry. Technology documentation to digital enablers such as augmented processes has helped the air intelligence on risk analysis, more cargo sector in optimising time, automated screening and shipment eliminate redundancy and create profiling can combine to formulate greater efficiency between end-tothis strategy without slowing down, in end value chain operations. Things will fact speeding up the process in air cargo,” only get better in the future, with disruptive Kohli mooted his views while elaborating on the innovations in technology being at the backbone milestones to be achieved for effectuating cargo security.

32 CargoConnect - OCTOBER 2018

UNIWORLD LOGISTICS Pvt. Ltd. started its operations in 2002, with headquarters in Bangalore, India. It is currently one of the largest independent freight and supply chain solution provider in Asia. It has 31 centers spread across Asia with offices in India, China, Hong Kong, Taiwan, Singapore, Malaysia and Vietnam. Uniworld is quality complaint with ISO 9001-2015, AEO Certified for Customs Brokerage and Logistics, GDP certified for Pharmaceuticals, Healthcare and Veterinary product compliances. The company operates 6 integrated logistics facilities with an area of over 500,000 sq. ft., strategically located in the major business hubs of India. OEM MANUFACTURERS Forward supply point at next door, promoting reduction in lead time Flexible order management Better vendor management 24x7 assembly line feeding JIT scheduling, promoting lean inventory Reduction in replenishment cycle time Improved coordination with suppliers

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cover story increase the overall profile for the industry.” Tim Strauss, Vice President - Cargo, Air Canada

TIACA’s Air Cargo Forum 2018 The International Air Cargo Association (TIACA) is organising a global event – International Air Cargo Forum (ACF) 2018 in Toronto this October. TIACA claims that more than 4,000 air cargo decision makers from across the globe will throng the event to brainstorm on the issues being faced by the air cargo sector, how the sector’s challenges could be addressed and which are the new opportunities lying ahead. There is no denying the fact that event like ACF 2018 is a boon for air cargo sector as it brings the entire sector on one platform to mull upon the issues and their possible solutions. But the only question arising is that, does the outcome of events like ACF 2018 really puts an impact on the air cargo sector or is it just another commercial endeavor. With the help of industry professionals, we tried to find out possible answers to the query.

“TIACA’s ACF is one of the most important industry events, which is concentrated on industry networking and peerlearning, rather than customer relations. Its aim is much broader – to bring up discussion about hot topics, cover current developments, and discuss all the latest changes with industry representatives in real-time. Sometimes, companies just need to ‘look outside their boxes’ to see what makes the industry tick. This year, the ACF sessions will cover topics like digitalisation of supply chain, blockchain usage in logistics, improvement of quality performance, and many other issues that are of paramount importance to the industry. By attending the event of such a scale and level, the company representatives come back being aware of what actions should be taken to be competitive, and customer-centric.” Sergey Lazarev, General Director, AirBridgeCargo Airlines

“The move towards being 100 per cent e-freight enabled will naturally enhance the security of air cargo and optimise supply chain as well.”

Amar More CEO, Kale Logistics Solutions Pvt Ltd

Views and Insights “All industry events such as TIACA’s Air Cargo Forum or IATA’s World Cargo Symposium are excellent vehicles to raise industry issues and talk about industry solutions. But, the action is more important than mere discussions and it’s what the industry does after and between the events which can shape future in a desired way. Discussions without any action are of no use as only actions can change the world,” Glyn Hughes, Global Head of Cargo, International Air Transport Association (IATA)

“Like other industry conferences, TIACA’s ACF presents an opportunity to meet with customers in person. This is uniquely valuable because so much gets done when you can sit down and have a conversation. There is a unique value in providing that space. When key stakeholders in the industry regroup, we can move agendas and proposals forward that eventually can lead to legislative changes. Ultimately, the resulting changes

34 CargoConnect - OCTOBER 2018

“I have been participating in TIACA from the past two years and my observation says, India has not gained much ground in TIACA till now. Although, Sanjiv Edward, CCO, Delhi International Airport Limited, being the past president of the association, has helped our country show its influence in the global platform. I feel TIACA’s main focus lies in the US and European markets as it is US-centric and much of their interaction happens with Europe.

“However, TIACA’s events provide excellent networking and knowledge gaining opportunity but we need to look for the larger picture for the holistic development of the global air cargo industry. A separate forum should be made, under the umbrella of TIACA, comprising of the Asian, African, Middle East and Far East countries for the industry’s development. The real objectives cannot be realised until and unless this kind of forum comes into existence.” Tushar Jani, Chairman, Cargo Service Center

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cover story “We believe a comprehensive strategy is needed to address physical shipment security, security related to people, locations, and cyber security relating to information across supply chain.”

Dheeraj Kohli

Vice President and Global Head – Travel and Transportation, Unisys

“For the first time, ‘ACF-2018’ is being co-located with the Canadian International Freight Forwarders Association (CIFFA) and the new Multimodal Americas show, bringing together leading logistics supply chain companies from the world. Definitely, event like ACF plays an instrumental role by bringing together the experts from world’s air cargo community to address the issues in full spectrum, which affect the air cargo industry with offering appropriate solutions. The practical workshops being conducted by ACF on latest Security and Customs regulations also play a significant role in understanding and learning the global legislations.

align or re-define product/service offering and any changes to processes including ground handling. Meetings such as ACF also help raise awareness of the best practices, develop quality standards and compliance to various regulatory, safety and security requirements.” Keki Patel, Cargo Manager – India and Nepal, Emirates SkyCargo

“Events like ACF are vital in providing an opportunity for diverse groups of professionals from throughout the air cargo industry to mingle, network and discuss about the most important topics at hand. Only by having open discussions we can think of the best ways to move forward – not just individually, but also as an industry.” Ashwin Bhat, Head of Cargo, Swiss WorldCargo

“MABKargo views India as a high potential destination. We have seen an increase of about 15 per cent in both capacity as well as market demand in India this year as compared to the last year.”

Amiroel Shazrie Yussof The recently launched Cargo Service Quality (CSQ) on-line tool by TIACA, wherein Delhi Airport is playing a leading role, aims to drive the global standards and raising the profile of Air Cargo across the globe. The discussion on CSQ will also entice the ACF participants to understand the nuances of air cargo service quality, which has been the most neglected element among the entire Air Cargo fraternity. The aim of CSQ is to assess the quality aspect of air cargo supply chain and identify the OFI’s (Opportunities for Improvement) for all the stakeholders in an integrated manner.” Sanjiv Edward, Chief Commercial Officer, Delhi International Airport PrivateLimited

“TIACA is a global industry body that represents stakeholders from all players in the logistics and supply chain industries. Firstly, TIACA not only includes freight forwarders, air cargo carriers but also shippers and consignees. Secondly, members of TIACA represent all industry verticals, be it pharmaceuticals, fashion, high-tech electronics, automotive, oil and gas, perishables, engineering and so on.

In view of such broad representation and participation, events like ACF 2018 prove to be a very useful forum for exchanging of information and insights with other participants. Delegates and attendees can get a better understanding of new and changing business trends and requirements from partners to

36 CargoConnect - OCTOBER 2018

General Manager Sales & Marketing, MAB Kargo Sdn. Bhd

“Industry events such as the TIACA’s - ACF 2018 is a unique platform that aims to bring industry professionals together to exchange best practices, set industry benchmarks, facilitate knowledge exchange, share innovations and enable networking for business. Global platforms like these tap the entire air cargo value chain and see participation from various stakeholders. Kale Logistics Solutions is participating in the India Pavilion, where a group of companies will represent India, so this participation is at a country level in an international forum. We look forward to some thought-provoking discussions and workshops on the air cargo trends, future of the industry and meeting experts from the fraternity.” Amar More, CEO, Kale Logistics Solutions Pvt Ltd

“The Air Cargo industry demands embracing new ideas on efficiencies to better serve the shippers through active collaboration between all stakeholders. I believe, ACF would provide an opportunity for all stakeholders to come together, collaborate and commit on specific action plans that can increase and execute the air cargo value proposition.” Dheeraj Kohli, Vice President and Global Head – Travel and Transportation, Unisys. CC

Time to Re-Engineer

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special feature

World-class automotive supply chains are essential sources of competitive advantage. Similarly, Indiaâ&#x20AC;&#x2122;s dynamic business environment requires a smart, agile supply chain that can become a real differentiator in the marketplace. The evolution has already started and the companies are on their way to develop world-class automotive supply chain in India. - Gaurav Dubey

38 CargoConnect - OCTOBER 2018

special feature

he automotive business in India has been growing by leaps and bounds from the past few years. Global automobile brands such as Hyundai, Honda, Ford, Renault, Kia, Mitsubishi, Skoda, Volvo, Scania, Suzuki, Yamaha, Piagio, Harley Davidson and Ducati too have identified the potential and viability of the Indian market and have setup their business in the country.

Along with setting up auto outlets they have brought with them their global OEMs and Tier I and II suppliers. These suppliers not only cater to these business houses but also other automotive companies and their subsidiaries across the globe. It brings tremendous growth opportunities in terms of Infrastructure, availability of skilled/semi-skilled manpower to cater to customers across the country and the globe. Considering these tremendous growth opportunities, the following will be the key components which would shape the future trends: 1. Re-engineered Supply Chain Infrastructure 2. Changes and improvement in the governing regulatory structure 3. Global accessibility

OCTOBER 2018 - CargoConnect

special feature Re-engineered Supply Chain Infrastructure Presently, most of the automotive companies follow single or multiple types of supply chain models, for catering to both rural and urban areas and global markets. If we forward the clock to a period of 2030, various new situations could be foreseen, changes in customer requirements and considerations, business production flows – such as infrastructure growth requirements, availability of skilled labour, and market trends. This would require multiple supply chain solutions.

Key factors that would drive the change • A lean distribution design Companies have to create a smooth flow through distribution model which will facilitate the movement of heavier cargo across the supply chain flow by keeping critical functionalities in place.

center owners have to think out of the box. Techniques like building models with multiple levels should be constructed within the same area which would bring down the rental costs. Owners have to provide cost effective and scalable solutions to their customers in the days to come. Consolidation of service providers and competitors could be expected in the future. This would not only sharpen service levels but will also build strong business relationships where service providers will work in tandem in providing tailor made solutions to the customers; a survival of the fittest kind of situation.

Changes and Improvements in the Governing Regulatory Structure There are a few areas that would be critical in changing the regulatory structure in the supply chain model:

With the advancement in robotics, artificial intelligence and automation, India’s automotive supply chain is on the cusp of a watershed moment in its evolution, the tech-enabled industry is poised for an overhaul.” Sandeep Chadha CEO, Allcargo Logistics and Industrial Parks

• Organisations would have to look at incorporating sustainable supply chain models in their long-term planning and network design. For this to fall in place all the supply chain partners have to be trained to adopt to the best distribution practices. • There should be supply chain flexibility in implementation and

decision-making skills. • Organisations will have to develop situation based supply

chain planning processes so that its benefits could be reaped on implementation of the process. • Automation in distribution In order to maintain the pace with emerging trends there would be the need to bring automation not only in distribution but also in material handling and packaging. • Out of the box thinking In the current scenario, cost of land is going up manifold in prime industrial areas, therefore warehouse and distribution

• Improving the work environment, safety standards and employee-

based policies will be important as an organisation strive to align itself to global standards. Their supply chain models become more integrated on a global platform

Global Accessibility India has already made its mark in the global economy and therefore its most likely to encounter the following changes in the upcoming years – Foreign trade - The economy would most likely see an increase in foreign trade with key business partner countries and mutually favourable economies. Trade volume - Trade volumes are most likely to multiply by 5-10 times and India’s share on the global trade index could go up to 8-10 per cent of the global trade. Keeping an eye on the global development, the country is in constant negotiations with key developing and developed economies like the Middle East, the European Union and the European Free Trade Association in order to grow business volumes into these countries and to have bilateral business tie ups.

40 CargoConnect - OCTOBER 2018

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special feature Restructuring of Supply Chain in the post GST period Previously, central sales tax and a host of state levies in India’s tax regime had created substantial inefficiencies in supply chain operations. In the present Goods and Services Tax (GST) era, the supply chain designs are becoming ‘tax optimised’ with a warehouse set up within each state, which is impacting overall inefficiencies. The GST has been driving a large-scale redesign in the supply chain in order to make operations more efficient. The automobile industry is on its toes for this redesign and for potential upfront investments, specifically in warehouse footprint optimisation, recyclable packaging, and containerisation. In the post GST period, the automotive supply chain has been undergoing a large-scale adaptation to reap benefits of a unified market system. This would for sure lead to improvements in operations and re-engineered distribution models.

There has been significant restructuring of the supply chain in the post GST period and now supply chains have become more simplified, customer centric and visible.”

Achal Paliwal CEO, TML Distribution Company Limited

Now we are looking at a situation wherein we have a consolidated hub and spoke model instead of having hubs in every state. Zonal hubs managed by Logistics Service Providers (LSPs) would emerge from the present situation. These new models will provide the customer with better visibility - from the time a person places order till the time of final delivery of a vehicle. Major automotive distribution hubs would be the thing of the future. These hubs will stabilise the pressure on the zonal hubs that serve multiple states. Some major potential hubs could be constructed in Indore, Nagpur, Faridabad, Bangalore, and Kolkata. These models will help in preventing an inventory pile up at the manufacturing centres. LSPs have to relook at their asset base, review service deliverables and bring new automation models, along with new technologies to handle businesses would be the key to compete in this changing time.

42 CargoConnect - OCTOBER 2018

Manner in which LSPs and manufacturers handle their cash flows would be the next important aspect of GST. Tax exemption benefits will have a minimal impact on the bottom line. This new simplified tax structure could lead companies focusing more on their exports. Organisations need to plan their cash flow because of the shift from an exemption-based structure to a refundbased structure. With regard to the inbound supply chain, most of the time manufacturers source from within the states of their location as large numbers of ancillary units are situated in the vendor parks that have mushroomed around the major automotive hubs.

What service providers are offering! Scale and volume helps us to pass benefits to clients “Well, the automobile supply chain is one of the most critical components in the entire logistics chain. We, at Allcargo, are present in all such strategic locations that help in minimising the overheads in a supply chain,” says Sandeep Chadha, CEO, Allcargo Logistics and Industrial Parks. “In a dynamic landscape catalysed by technological advancements, bringing down the cost and timing of the automobile movement has become a need of the hour. We don’t say that it’s restricting the supply chain but we have aligned ourselves with the logistics clusters that enable a maximum throughput. We are proud to have a nationwide presence across all the key logistics hub. Our scale and volumes help us to minimise the cost and then we pass the same to our clients.” Further, Chadha talks about favourable logistics policies that are helping companies in planning in a better way and the trends that will make automotive supply chain more agile.

special feature Favourable logistics policies smoothening the way

Huge demand is waiting to explode

With an infrastructure overhaul in the process across the country, companies are customising their logistics operations that are pertinent to the particular catchments and overall surroundings.

Being a comprehensive facilitator of Warehousing & Industrial parks for a range of sectors, we Allcargo is well aware of the potential of India’s automotive sector. India is among the nations with a high percentage of GDP spent in the overall logistics sector, with automobile being a critical component.

Favourable state government policies to promote the logistics sector and announcements of dedicated logistics corridor are helping the companies to plan better for the foreseeable future. All such policies, technology evolution and a spurt in consumption are driving the demand for an enhanced and viable logistics realm. Leaders in the industry are striving ahead with the tailored offerings to niche as well as generic players. With the right mix around, it is incumbent to take care of the ever-widening expectations of the consumers and clients alike and companies.

Precise timing and a high degree of accuracy are crucial for the highly developed and industrialised automotive industry. Worldwide supply chains have to be designed considering the procurement and distribution processes and the individual schedules of a company.” Huned Gandhi MD, Air and Sea Logistics - Indian Subcontinent, Dachser India Pvt Ltd

Trends in automotive supply chain With the advancement in robotics, artificial intelligence and automation, India’s automotive supply chain is on the cusp of a watershed moment in its evolution. The tech-enabled industry is poised for an overhaul that will enable it to push the envelope and create markets in the unchartered territories so far. India’s Tier II and to some extent Tier III cities are well poised to take the mantle, with demand emanating from the rural sector as well. With saturation arising among leading metros, the same shall present itself as an opportunity for emerging cities. The Smart City project launched by the Government of India will help establish smaller yet critical logistics clusters in the country. So, alongside the The Automotive Supply Chain prominent auto Supplier Network hub like Chennai & Pune, where Raw Material Components Subassembly Allcargo has Transmission Suspension Steel a substantial presence, we might Aluminum Breaks Chassis see more such hubs in the several unheard locations.

44 CargoConnect - OCTOBER 2018

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India’s Tier II and to some extent Tier III cities are well poised to take the mantle, with demand emanating from the rural sector as well. The Government of India will help establish smaller yet critical logistics clusters in the country. So, alongside the prominent auto hub like Chennai & Pune With a boom in consumption and the unforeseen growth in e-commerce, there is a huge demand waiting to get exploded. Logistics in this regard should act as a key enabler for the same. Dedicated freight corridors, well planned Logistics Parks along the peripheries of developed cities are all there to minimise the overall costs. As a case in point, Allcargo says that they intend to be there in Anantpur, where Kia Motors has announced a multibillion-dollar plan for its automotive vertical. A whole new set of players are expected to be there and Allcargo, is exploring the possibilities for a large Industrial park therein, Chadha informed.

What is crucial? On being asked about how a better tailored supply chain could reduce cost of automobile logistics, Huned Gandhi, Managing Director, Air and Sea Logistics - Indian Subcontinent, Dachser India Pvt Ltd said, “Precise timing and a high degree of accuracy are crucial for the highly developed and industrialised automotive industry. Worldwide supply chains have to be designed considering

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the procurement and distribution processes and the individual schedules of a company. Along with its proven performance as a 3PL network provider, Dachser will also take on 4PL tasks. Serving as a lead logistics provider, we control, monitor and optimise the automotive supply chain to add real value. The focus here is on managing carriers and all kind of network providers while offering comprehensive supply chain visibility. On the top, we are performing various administrative tasks like preliminary checks of invoices from providers used by the customer.”

In the post GST period, we have restructured our supply chain on the basis of Consumer End Delivery (CED), i.e. landing cost of products. We are expecting higher savings in the upcoming years as compared to our savings which we have accrued so far.” Shailendra Goel CEO, Leostar Logistics Pvt Ltd

Supply chain has been restructured on the basis of Consumer End Delivery Shailendra Goel, CEO, Leostar Logistics Pvt Ltd said, “In the post GST period, we have restructured our supply chain on the basis of Consumer End Delivery (CED), i.e. landing cost of products. We are expecting higher savings in the upcoming years as compared to our savings which we have accrued so far. The roll out of GST has also helped us to cut down manpower engaged in monitoring of day to day activity and other operational processes. The logistics cost of transporting automobile is getting minimised by joining different depots together after implementation of GST.” “Automobile industry is one of the biggest and volatile industries of the country. Currently, the automotive sector contributes more than 7 per cent to India’s GDP. One of the trends that will shape automobile supply chain in the long run is that manufacturers will shift towards tailored outbound supply chain models which would cater to customer’s requirements and supply chain needs. And with implementation of Automatic

46 CargoConnect - OCTOBER 2018

Manual Transmission (AMT) technology in medium and small passenger vehicles, more buyers will get attracted than what was seen in the previous years. This will transform into huge demand in the next five years,” concluded Goel.

Take of service users! On the question of restructuring of supply chain, Achal Paliwal, CEO, TML Distribution Company Limited (a subsidiary of Tata Motors Ltd) talked about the trends that will drive the industry and the role of logistics in the growth projection of Indian automotive industry. He said that there has been significant restructuring of the supply chain in the post GST period and now supply chains have become more simplified, customer centric and visible. “Supply chain tailored to meet customer and market needs, is greatly helping in eliminating wastage at all levels, reducing overall logistics cost. 4 PLs equipped with expertise, greater return market network, informed decision making and capability to invest in cutting edge technology and human resources, can help in improving asset utilisation, transit time and cost efficiency,” he further added.

Indian automotive logistics moving towards bulk transportation mode Indian automotive logistics is gradually moving towards bulk transportation mode. Improvised AFTO policy is encouraging more investment in rail transportation. Capacity utilisation challenges and fuel cost pressures will force road transport industry to pass through the process of natural selection. The coming years will witness increased role for 3PLs and emergence of 4PL service providers in the business.

Upcoming years will be disruptive and redefining India automotive industry contributes more than 7.1 per cent to the GDP and Logistics being significant cost component, will continue to play a critical role as a key enabler in the economic growth story. Considering current macroeconomic scenario, India remains an isolated yet impressive growth market. Automotive industry is quite likely to keep pace with 8-9 per cent growth, with long term growth projections of over 12 per cent contribution to GDP by 2026. However, from technology point of view, coming years will be disruptive and redefining, leading to further consolidation among OEMs as well as LSPs. CC

Infrastructure

Dedicated Air Cargo Airports - The Way

Forward Presently, all-cargo aircraft share the same terminals and airstrips with passenger aircraft at major passenger hubs. This leads to airport congestion which increases the cargoâ&#x20AC;&#x2122;s dwell time and delays in its movements. An ideal scenario for air cargo would include a dedicated cargo aircraft operating at a dedicated air cargo airport, thus allowing timely loading/unloading of the freight, and reducing the aircraftâ&#x20AC;&#x2122;s turnaround time significantly. Gaurav Dubey, in this report, tries to find out the viability of dedicated cargo airports in India while talking to air cargo professionals.

ecently, ICRA (Investment Information and Credit Rating Agency of India Limited) released a report which indicated that in the next five years air cargo traffic in India is expected to reach at 4.7 million tonnes, which is close to around 60 per cent growth. This shows that the Government needs to overcome the infrastructural bottlenecks which are major constraints to the growth in the air cargo sector. Factors like staggering growth in E-commerce, improving air connectivity across small airports in the country and positive GDP figures are calling to improve infrastructural issues plaguing the sector.

48 CargoConnect - OCTOBER 2018

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Infrastructure Lack of hub limiting India’s air cargo traffic Currently, Indian airports have a combined capacity to handle 4.63 million tonnes of cargo per annum. In 2017, cargo traffic in India crossed 2.98 million tonnes while in the present year cargo traffic is growing at an impressive rate; available figures say it has reached 2.5 million tonnes in the first nine months of FY2018. Despite healthy growth figures of cargo handled at all major Indian airports, the total volume was much less than the volume of cargo handled by International airports such as Memphis, Hong Kong, Shanghai, Incheon, Anchorage and Paris. On one side, Cathay Pacific, Lufthansa and other international carriers are increasingly hovering over the Indian skies with their freighters, scouring for a perfect landing to bring in and take back air cargo loads. And on the other, heaps of potential air cargo parcels are lying at the warehouses of the Indian industry, waiting to be air-lifted and flown to their global destinations. Harsh Jagnani, Vice President – Sector Head, Corporate Ratings at ICRA Ltd says, “India needs a multifold approach for development of cargo infrastructure which should

airports surpasses the figure of total air cargo volume but if we consider the growth projections of the sector, the need of dedicated cargo airports would be felt very soon. Dedicated air cargo airports could be one of the possible solutions to address the infrastructural gaps and is the way forward.

Harsh Jagnani VP – Sector Head, Corporate Ratings at ICRA “India needs a multifold approach to development of cargo infrastructure which looks as upgrading existing cargo terminals with advanced technologies, development of new cargo terminals at airports, dedicated cargo airports and air freight stations.”

looks into upgrading existing cargo terminals with advanced technologies, development of new cargo terminals at airports, dedicated cargo airports and air freight stations.” Presently, combined capacity of all Indian

Cargo airports will bring agility in the air cargo supply chain, thereby making it more productive and efficient

50 CargoConnect - OCTOBER 2018

Clearly, India also has a significant potential to be a transshipment hub for international cargo movement from other countries given its geographic location. Construction of air freight stations at Indian airports, that are present at the global airports, could considerably lower down dwell time, preventing a plane to again take off soon. To realise a faster supply chain, it is quite much important to move the freight quickly to its destination once it has touched the ground. All-cargo aircrafts share the same terminals and airstrips with passenger aircrafts carrying cargo at major passenger hubs. This overcrowding of aircrafts, coupled with additional airport congestion factors, increases the cargo’s dwell time and delays its movements. An ideal scenario for air cargo would include a dedicated cargo aircraft operating at a dedicated air cargo airport, thus allowing timely loading/unloading of the freight, and reducing the aircraft’s turnaround time significantly instead of waiting in queue along with other passenger aircrafts. At dedicated air-cargo airports with general and temperature-controlled cargo buildings in close proximity to apron along with 24x7 customs clearances and well-connected roadways, the cargo offloaded from the aircraft and moved into these cargo buildings could then be quickly put on its onward journey in a matter of hours rather than days.

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Infrastructure Untapped potential We all know the air cargo business, which is a vital component of the aviation industry, is composed of two main models, namely: belly-hold freight on passenger aircrafts and full cargo operations. The demand for air cargo in India has been the strongest in the last decade. Recent growth projections of the sector are supported by a number of factors, such as a surge in international trade, doubledigit growth in E-commerce, India’s booming manufacturing sector and also an increase in passenger traffic. While the air cargo sector in India is thriving and the government is supporting this growth with policy reforms that enable privatisation and allow foreign investments at airports, the infrastructure at airports still needs substantial development and improvement. Some solutions that can help overcome these infrastructural development and improvement challenges include undertaking capacity expansion and establishing dedicated air freight stations at existing airports, building new cargo terminals at airports and developing dedicated air cargo airports across the country.

Vipan Jain Chief Operating Officer, Delhi Cargo Service Center “The viability of pure air cargo airports is quite a challenging task unless we have a huge volume to handle and customers around the location of dedicated air cargo airports. With significant reduction in turn-aroundtime of trucks in the post GST period and development of quality roads, existing airports are presently catering the demands efficiently.”

Vipan Jain, Chief Operating Officer, Delhi Cargo Service Center reckons that a cargo airport closer to sea port is still a workable

Presently, the combined capacity of all Indian airports surpasses the figure of total air cargo volume but if we consider the growth projections of the sector, the need of dedicated cargo airports would be felt very soon in a long run

52 CargoConnect - OCTOBER 2018

solution but its viability would be dependent on return on investment. He says,“The viability of pure air cargo airports is quite a challenging task unless we have a huge volume to handle and customers around the location of dedicated air cargo airports. With significant reduction in turn-around-time of trucks in the post GST period and development of quality roads, existing airports are presently catering the demands efficiently.” On being asked about ensuring commercial viability, Jain asserted, “commercial viability for airlines and also for the airport/terminal operator is the key factor to ensure success of dedicated cargo airports. Currently in India, four major metro airports of the country – Bangalore, Mumbai, Delhi and Chennai handle close to 84 per cent of international cargo volume and 79 per cent of total domestic cargo volume. Diversification from these airports is not easy because of their demand and location. Geographical location, local production, proximity of sea port and possibility of transit tonnage always makes dedicated air cargo airports successful in their operations.” There is no denying to the fact that the development of airport or cargo airport purely depends on demand and supply scenario. The current

Infrastructure offered capacity at India’s existing airports is able to cater the cargo demand. However, the capacity of Delhi airport is under-utilised.

even though more and more cargo now moves on dedicated freighters. With increasing levels of congestion at major passenger airports due to increase in passenger traffic, it has become all the more important to establish dedicated air cargo airports in order to cater to the ever-growing air cargo industry.

Significance of location for the establishment of dedicated air cargo airports Identifying a suitable location is the most important element while establishing a dedicated air cargo airport. It is imperative to make sure that the location is commercially viable for airlines and that the site falls under the consumption cluster, wherein there is a demand for consumer-based goods in that region. Moreover, the airport site should also be in neighbourhood of the industrial cluster, where there are several manufacturing units and a huge industrial base, thus making cargo movement easier. Being accessible is another pivotal factor while determining a dedicated cargo airport location, as there will be constant movement of goods. Also, the airport site needs to be well connected by rail and road to enable multi-modal transport connectivity. The air cargo sector is witnessing a trend of using wide body aircrafts, as opposed to using a greater number of narrow body aircrafts so as to cut down on the number of trips an aircraft makes to carry the freight to its destination. Therefore, a significant factor would be that cargo airport would need to have enough space to accommodate wide body aircrafts. Other factors that should be taken into consideration while determining an optimal location are runway configuration, altitude, topography, environmental considerations, and adjacent land use.

The way forward The dilemma for cargo airports is that, to attract a commercial carrier a strong forwarder community is

54 CargoConnect - OCTOBER 2018

Mike Chew CEO, AISATS “The pace at which air cargo is currently expanding will require dedicated air cargo airports to focus considerably on handling cargo and to develop its corresponding infrastructure. These airports will also bring agility in the air cargo supply chain, thereby making it more productive and efficient.”

its prerequisite. While on the other hand, to entice forwarder community an airport needs commercial air service; the classic chicken and egg scenario.

Geographical location, local production, proximity to sea port and possibility of transit tonnage are essential for the success of a cargo airport

Forwarders, who grew big at hub airports when all cargo moved in passenger bellies, have already committed major investments in manpower, warehousing space and equipment at these gateway airports could be reluctant to move,

According to Mike Chew, CEO, AISATS, “The pace at which air cargo is currently expanding will require dedicated air cargo airports to focus considerably on handling cargo and to develop its corresponding infrastructure. Dedicated air cargo airports would have a galvanising effect on the regional economy by attracting industries that require just-in-time inventory control systems or that deal in perishable or temperature-sensitive goods. The success of the dedicated air cargo airports would also lie in developing strong forwarder, shipper, brokers and consolidators community around the airport. These airports would also bring agility in the air cargo supply chain, thereby making it more productive and efficient. India has all the ingredients necessary to become one of the world’s leading air cargo and transshipment hub. While in recent times the air cargo sector has witnessed considerable changes such as increased investments, evolved regulator policies and several other initiatives such as the Regional Connectivity Scheme, there is a need to significantly accelerate the pace of such developments to meet the ever-increasing demand for efficient cargo movement. Establishing India as a full-fledged cargo hub, fortified by multi-modal transportation for last-mile connectivity, would not only give a much-needed boost to the Indian Air Cargo Industry but also invigorate the Indian economy,” he concluded. CC

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feature Delving Deep into Roadways Challenges With the onset of globalisation, logistics is expected to play an increasingly pivotal role in driving India’s economy to newer heights. In the year 2016, India was ranked 35th in the World Bank LPI Index, ranking countries based on their logistics performance — moving up from 54th in 2014. There is no single ministry which has been appointed to regulate the logistics sector, which has been in dire need of being accorded the status of an industry. Therefore, this lack of coordination between central and state government has been posing yet another challenge for the logistics sector to work at a holistic level. But, this is not the end; there are many other significant challenges in this ecosystem;

1. Most of the roads are not safe for running a heavyweight vehicle because of their poor maintenance. This problem aggravates especially during the rainy season. As per the estimate, the transport companies of the country bear around 200 crores per year on the wear and tear of the vehicles. The reason behind this is the poor road condition. The same road condition can be seen in case of National

In India, presently we incurr 18 per cent logistics cost, while in China logistic costs is estimated around 8-10 per cent. Therefore, our upcoming initiatives are towards reducing this cost up to a minimal level.”

Nitin Gadkari Minister of Road Transport and Highways

agencies or commissions have been framed to look after the maintenance and construction of roads but unfortunately, due to lack of coordination between the agencies and the government, it leads to a contradictory situation and result in bad road condition. 3. There is no sufficient fund for maintenance and construction of roads. In fact, over the years, the percentage of allocation has decreased a lot whereas this task requires high priority. In the five years, the allocation was calculated as 6.9 percent and now it has come down to 3.6 in recent days. 4 In India or any other country, rail and road are the two most important means of transportation. These two sectors should work hand in hand but unfortunately, a little coordination

Road transport is one of the most expensive ways of transportation and India already has 60 per cent of the cargo movement by road. In order for a sustainable balanced mode of transport, the share of road transport needs to come down. Secondly, last mile is still a challenge. While we may have addressed the other legs, the bottle neck is still the last mile.”

Sandeep Chatterjee Senior Manager, Deloitte

highways as well. Weak pavement, distressed bridges, poor riding quality, congested cities and lack of wayside amenities make these roads unsafe for any kind of transportation. 2. Another major road transportation problem in India is there is no strong policy taken by the government of India regarding road development. A set of

58 CargoConnect - OCTOBER 2018

is seen between them. Yes, you read it right. In order to make transportation of goods in a well-planned manner, the railways need to be engaged in shifting heavyweight goods while road transport should be used for transporting small or sensitive goods over small distances. But, this kind of planning can hardly be seen in the transportation structure of our country and for these transport

companies face major problems in shifting heavyweight goods and machinery parts. 5. Overloading is also a burning problem for road transportation in India. The problem of overloading can be observed everywhere and therefore, it is the time that a right strategy should be followed to tackle this kind of issue efficiently. However, states like Bihar, Uttar Pradesh, Jharkhand, and Andhra Pradesh have implemented certain acts and rules on road transportation and thus, this can be regarded as a model step towards this direction. On the other hand, many other states have allowed rampant overloading by issuing a special token that can be availed by paying a certain amount of fees. This kind of activities should be abolished by the administrative authority of our country. Recently, the government has given serious attention to this matter and taken a few measures in order to prevent impairment to roads. 6. Lack of expected functionality vehicles Indian auto manufacturers may also give priority to exports in the absence of nationalism. They do not want to give their good products in the national market. Sometimes the value of value is also of value in a valuation of these facts. As a result, Indian transport businessmen are not able to get good off-road vehicles available. Government Initiatives The Government of India is in the process of preparing an Integrated Transport and Logistics Policy which aims at transforming India’s logistics

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feature from a ‘point-to-point’ to a ‘hub- andspoke’ model, thus evolving centralised strategic networks. As part of this initiative, the government is planning on a full spree to set up 50 economic corridors, 35 multimodal logistics parks (MMLP) at 15 locations, ten intermodal stations, among other things. In continuation with the directed policy, for integrated logistics to be successfully implemented, several elements need to be integrated with the horizontal flow across the chain - services, infrastructure and information. • As of April 2018, there were 1,529 PPP projects in India, of which 740 were related to roads. • Ministry of road transport and highways (MoRTH) has signed MoUs with 36 different government departments i n cl u d i n g v a r i o u s p o r t s , s t a t e governments, transport cooperation, railways and aviation ministries to come out with a joint multi-modal logistics park policy which will specify designs of parks, locations, trunk infrastructure required and the pricing structure. • A Mckinsey research report shows that, of all goods transported by volume, roadways constitutes 57 per cent of goods resulting in under utilisation of the other cost effective modes like railways, coastal shipping and inland waterways. • Transport services by rail also exist in the metropolises; they play no major role in Indian passenger mobility. Thus the roadways already hold an estimated share of 80 per cent of the demand on land transport. • India’s extensive road network consists of 3.3 million km and has been termed as the second largest road network in the world. About 61 per cent of freight and 85 per cent of passenger traffic is carried by road.

Indian government has allocated approximately INR1.2 lakh crore for the Ministry of Road Transport

60 CargoConnect - OCTOBER 2018

The industry is going through a tough period because of the inaction on the part of the Government with regard to tackling of various issues. When we have good roads, it will automatically increase business in the market. I sincerely hope it will be a huge help for the overall economy to grow.”

Pradeep Singhal President, AITWA

and Highways, which comprises an investment of INR91,663 crore in National Highways Authority of India (NHAI) and INR29,762 crore in roads and bridges. • The government is expecting the completion of national highways exceeding 9,000km in length by the end of FY18; alongside has also approved the ‘Bharatmala Pariyojana’ which has been aiming to develop a 35,000km road network (in Phase I) providing connectivity to interior and border areas of the country — at an estimated cost of INR5.35 lakh crore • For Fund raising, the NHAI would be considering to organise its road assets into Special Purpose Vehicles and use innovative monetising structures such as Toll, Operate and Transfer (TOT) and Infrastructure Investment Funds (InvITs). The other major reforms include the introduction of GST (goods & services tax) and rolling out of E-tolling. This flagship initiative of MoRTH, has been implemented on pan-India basis in order to remove bottlenecks and ensure seamless movement of traffic and collection of user fee as per the notified rates, using passive Radio Frequency Identification (RFID) technology. These changes are likely to reduce the cost of logistics in India which currently stands around 13-14 per cent of GDP, which is significantly higher than countries such as US (9.5%)

and Germany (8%). The reforms and developments also marks a step in the right direction as government has already indicated its plans to bring down the logistics cost to around 10 per cent of GDP. Well, India is not even short of foreign hand holding. The World Bank too has been providing a major investment stake in India’s transport sector. The major one being Eastern Dedicated Freight Corridor Project. In this project The World Bank has financed a total of around 1,100 km of the Eastern Dedicated Freight Corridor in three phases, alongside also helping in developing the institutional capacity of the Dedicated Freight Corridor Corporation (DFCCIL) to build and maintain the DFC’s infrastructure network, etc.

Path Ahead The effort in the years ahead is to build a more robust logistics network in the country. With better infrastructure planning, increased coordination among stakeholders and improved operational efficiencies, India aims to unlock the potential of the sector needed to fuel economic growth. To achieve this, the state would need to put in place a comprehensive national logistics policy for a holistic improvement in the sector. The policy must incorporate key driversintegrated logistics, information technology, infrastructure, regulations, human resources and skill development, along with equal focus to the entire stakeholder community. CC

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Interview

TIACA to lead technological innovations in the Air Cargo Industry 64 CargoConnect - october 2018

Reputed to being an innovator and materialising what he thinks, Sebastian Scholte - Chief Executive Officer of Jan de Rijk Logistics and recently appointed Chairman of The International Air Cargo Association (TIACA), has a rich experience of over 20 years working in the Air Cargo Industry. Prior to being appointed as Chairman, Scholte has been TIACAâ&#x20AC;&#x2122;s Vice Chairman for nearly two and a half years. In an exclusive interview with Upamanyu Borah, he focuses on the need for more transparency and visibility across the supply chain and how TIACA is putting an emphasis on training and encouraging young people to join the industry. Excerpts!

What will be the measure of vision during your term as Chairman of TIACA? Our paramount vision will be to make the air cargo supply chain more transparent and efficient. And, TIACA being the only non-for-profit organisation representing the entire air cargo supply chain plays a leading role in this. On a personal note, having been associated with the industry for more than 20 years I have learnt how different the needs and abilities for implementation can be, depending on the cultural specificities, economic situation and the levels of comprehension and training. I intend to make good use of this knowledge.

How exactly does TIACA plan to bring the various air cargo organisations closer together? Collaboration and cooperation between all parties in the air cargo supply chain is the only way forward to solve many of today’s issues. TIACA is the only organisation representing all of those different players, and we are the natural platform to facilitate genuine collaboration and work towards a more innovative and quality-driven industry. We have been collaborating with a lot of regional organisations in Latin America, United States, Africa and Asia, and definitely it will be an important factor for us not only to spread the word but also to bring together stakeholders for offering advocacies.

from agents and airports handlers, airlines, forwarders to truckers, and there is a lot of handovers in this process. TIACA will play an ideal role in facilitating and leadling this process through the effective use of new technologies.

What are the suggestive steps taken by TIACA to attract and engage the younger generation who aspire for this industry? Being an apex organisation representing all elements of the air logistics network, it is one of TIACA’s prime responsibilities to inform and train the younger generation so as to make them future leaders who are engaging, dynamic and confident. There is a wealth of knowledge and experience in our network and we are always ready

The biggest changer to look out for will be control towers based on smart algorithms that will take over and optimise all the assets that we deploy in the industry. Also, proper training of industry professionals will be absolutely important and has to be imparted efficiently

To what extent you believe are new technologies helping the air freight industry revamp? What are TIACA’s initiatives for the same?

to share that. We have established programmes and procedures, in response to the industry’s need to attract, groom and retain the newer generation.

I believe we should not only embrace technology but lead the technological disruptions that are happening. Definitely, a lot of technological interventions are there and happening, therefore, it is imperative that we work and operate in the air cargo supply chain with an intergrated approach. Having said that, there are many different players in the air cargo supply chain,

Here in Netherlands, we have already rolled-out mini-internship classes for aspirants during weekdays, and now we are planning to take forward this initiative to Canada. With regard to that, we have in store some important and interesting initiatives to announce in the upcoming Air Cargo Forum in Toronto which will help encourage

us and the future generation towards coming forward and working together in this industry.

What are the crucial challenges you foresee in the Global Air Trade Industry in near future? What will be your ideal strategies to overcome them? In future, there won’t be supply chains any more but supply networks. We have to embrace technology to the utmost extent; we have to turn completely digital. I presume, in the next 20 years or so, there will be many significant changes to witness, such as driverless trucks, pilotless planes and so on. The biggest changer to look out for will be control towers based on smart algorithms that will take over and optimise all the assets that we deploy in the industry. Also, proper training of industry professionals will be absolutely important and has to be imparted efficiently. Many jobs will become absolete because of robotics and automation taking over normal work force. We have to be more proactive and reactive to these technological disruptions to effectuate our processess.

Do you believe Asia is a potential market and destination for major industry events such as Air Cargo Forum? Any initiatives/ investements/future plans in the pipeline? Definitely, Asia is a potential market and the aviation industry is booming in this region. Not to mention, the continent has eight of the ten fastest growing airports on the planet. Talking about future plans or investments in Asia, we haven’t concretely decided on the same. But, we are quite hopeful to initiate or organise large scale Air Industry events that will attract the interest of the larger community, industry players and stakeholders alike. CC

OCTOBER 2018 - CargoConnect

Interview

‘Naya Bharat will emerge from THE Northeast’

Tushar Jani, Chairman, Cargo Service Center, a visionary leader in the Indian logistics industry, says “due to the high literacy rate in the Northeast India, Naya Bharat will emerge from therein.” On the question of his expectation from the dedicated Air Cargo Policy, Jani says the policy should be enabling, catalysing and make processes easy so that entrepreneurs could invest more in business activities to further magnify the business scale. - Gaurav Dubey

66 CargoConnect - october 2018

Cargo Service Center wants to expand its cargo handling services from 5 airports to 84 airports located across India but the logistics industry in the country is primarily focused around major metro cities. What measures the Govt of India should take for uniform development of the industry? AIn the next 3 years, the logistics scenario of India will witness a metamorphic change and those who will not change according to the time will perish away. We are thinking ahead of time and totally committed to taking cargo connectivity to tier 2 and tier 3 cities of North, South, East, West and Northeastern belt of the country. The present Government is doing commendable work by enhancing connectivity between all smaller cities of the country through its projects like UDAN.While, as far as infrastructure is concerned, I believe with greater disposable income with the people of smaller cities the infrastructural growth is bound to happen. I am confident with a high literacy rate of the Northeastern states – ‘Naya Bharat will emerge from Northeast’. If we talk about the current scenario, I think the potential of the industry is still largely unexplored and it will constantly move on a growth trail.

Do you think the recent strike of transporters was the result of a substantial gap between the Government and mid/small-scale companies of the Logistics industry? How this gap could be filled? Logistics industry right from the beginning, across the world, has had a fragmented nature. And there is no common voice of any fragmented industry. However, the scenario has been changing from the last few years as transporters are also voicing their concerns in front of the government vociferously through associations. Transportation sector needs visionary leadership as small transporters are considered small entrepreneurs and often driven by the ownership mindset.

Transporters contribution should also be recognised and the ‘Industry Status’ should be given to the transportation sector. As I firmly believe like soldiers and farmers, transporters also serve the nation by carrying goods across length and breadth of a country. Government is also concerned about the issues of the industry as the creation of the Logistics Division under a Special Secretary is a testimony to it. My suggestion is that the Government should either send study teams or make an expert group before devising any policy on the transportation sector in order to understand the problems being faced by small transporters on ground. This step

In the post GST period, turnaround-time of trucks has reduced significantly which has in turn increased freight carrying capacity of trucks by 10-15 per cent and that too without making any capital investments could bring ground reality on the table and then accordingly a fair policy could be devised to make a level playing field for all the transporters irrespective of the volume of their business.

How has the industry changed postGST? What are your views on it? Manufacturers are seemingly happy and the logistics industry has also grown at an impressive pace after the roll out of GST. In the post GST period, turn-around-time of trucks has reduced significantly which has in turn increased freight carrying capacity of trucks by 10-15 per cent and that too without making any capital investments.This move has changed our investment profiles and now investments are flowing in the business. As far as issues regarding the E-way bill are concerned they are related to the operational process and will settle down soon.

Cargo Service Center calls itself a ‘Production company’. What is the thought process behind it? We call it a ‘Production company’ as we believe the element of responsibility is more in a production business rather than the service business. In production, one remains more conscious and focusedon research. We receive loose cargo then we secure and unitise it, and soon we will develop a Research & Development (R&D) section to find innovative ways catering to the cargo handling process. Definitely, with a well-placed R&D section in place, we will be able to devise more efficient and innovative ways to handle cargo.

What role a dedicated Air Cargo Policy can play in lowering down logistics cost and making Indian products globally competitive? Logistics cost could be lowered down only by increasing business scale and the policy has nothing to do about it. A policy should be enabling, catalysing, makes processes simple with creating an environment in which better infrastructure can be built. An enabling policy excites entrepreneurs to invest more in business activities which in turn makes business scale bigger. Businesses often fail when thegovernment at center tries to get involved in business activities.The instance with Air India is an evidence of that. When Prime Minister Narendra Modi was the Chief Minister of Gujarat, he had made a statement, “Government has no business to be in business.”I completely support and believe that businesses are only for entrepreneurs and government should not interfere. In the past, air cargo was the last in priority order of Ministry of Civil Aviation (MoCA), however, now the situation is changing and the appointment of an Additional Secretary rank officer as Economic Adviser in MoCA to look after the cargo business shows currently the wind is blowing in a differentdirection. CC

OCTOBER 2018 - CargoConnect

“International cargo is expected to grow with Good Momentum”

Interview

Indian freight forwarding industry is going to witness many positive changes in the coming year,” avows Ramesh Mamidala, CEO, Çelebi Delhi Cargo Terminal Management India Pvt Ltd. In a conversation with Ritika Arora Bhola, the veteran talks about the present scenario of Indian air cargo industry, importance of trade bodies like FIATA, TIACA etc., new policies, government initiatives and future plans.

68 CargoConnect - OCTOBER 2018

Please comment on the present scenario of the Indian air cargo industry. At present, we can see loads of changes happening in the Indian freight forwarding industry, while logistics and e-commerce business are growing, airlines are expanding their businesses, trade is going to change – therefore, we don’t know what’s going to happen in next one year but surely immense amount of positive energies will be flowed. Global trade relationships and global trade businesses are definitely going to have huge impact on the Indian freight forwarding business. India is the future for air freight and we are a very small baseline and therefore we have to grow substantially in the years to come. The kind of investments that we have done in the infrastructure, technologies and making airports across the country well-equipped with worldclass infrastructure and technologies and few airports becoming transshipment hubs – we expect the air freight to grow out of India.We do expect transshipment volumes to grow out of country, international e-commerce to begin etc., along with many good factors staring at us. We are delivering excellent services worldwide and getting recognized too – DHL is one example. We serve internationally, we are no less be it – capacity expansion, best systems, automation and good airports at – Hyderabad, Bangalore, Mumbai, Delhi and many more, we are going in the right direction.

Associations like FIATA, TIACA, ACAAI, DACAAI, FFFAI, ACFI etc., provide a platform to the freight forwarders to come together and discuss issues related to the Indian logistics/Air cargo industry. How do you think these associations benefit the industry as a whole? Does it

bring positive outcomes always? Yes, these conferences do benefit the stakeholders and industry as a whole and it also offers lot of opportunities to discuss about various issues. Events like ACAAI are country based and here we broadly discuss country-related issues, we collectively decide what needs to be done for the benefit of the stakeholders, industry and what interventions and policies need to come in. Butglobal events like TIACA and FIATA invite stakeholders from across the world to discuss international issues. When people from multiple countries come together things actually get explore, many people people come to explore opportunities,

There have been constant introduction of value-added solutions such as Air Freight Stations, 3PL logistics, Road Feeder Current government is also extremely supportive to promote the sector. One of the good initiatives by the government of India was the formation of Air Cargo Logistics Promotion Board

few come to showcase their products and services, few launch and represent their technologies and equipment, freight forwarders from across the globe come n share ideas, give opportunities to one and all.

Are you expecting new ground handling policies to be implemented this year? Actually, there has been an overlap, we are trying to bring in Air Cargo Policy and Ground Handling Policy is a part of it, we have already written to the ministry as members of ACFI. The first draft of the Air Cargo policy is ready and the policy is likely to come out soon.

How has the industry been changed since the time you stepped in? Since the time I stepped in, industry has evolved a lot in terms of infrastructure development, adoption of best practices, introduction of latest technologies, automation etc. Most privatised cargo terminals have done well in adopting modern IT systems along with modern storage equipment for both warehouse pallets and ULDs. However, a lot of modernisation is required in processing express, courier shipments, increasing processing capacity for both import and export and the entire trade needs to work on a model where the airport cargo terminals are limited to processing built units rather than bulk shipments. There have been constant introduction of value-added solutions such as Air Freight Stations, 3PL logistics, Road Feeder Services which will add immense value to the industry if directed properly. Current government is also extremely supportive to promote the sector. One of the good initiatives by the government of India was the formation of Air Cargo Logistics Promotion Board to carry out various development activities in the sector in structured manner.

How do you foresee the future of Indian air cargo industry? After the economic slump a year back and pressed business returns the aviation sector has returned back to its growth trajectory and is expected to sustain this tempo for a decade. Speaking about cargo, the international cargo expected to grow with good momentum. But something to watch out for will be the domestic air cargo market which is expected to grow immensely considering India as a big consumption based market. Moreover, the evolution of e-commerce market will only augment this growth. The current government is also extremely supportive in its policy matters to create a conducive business environment including bringing in more FDI which will only develop the sector. CC

OCTOBER 2018 - CargoConnect

Interview

I think digital is ‘IN’ right now, and India is a hub to many digital companies. We also see India as a base for many companies to set up their technological hubs; and that is also one of the reasons why Maersk Tankers has decided to invest in India,” says Mehul Bhatt, MD, Maersk Tankers India. In an exclusive interview with Ritika Arora Bhola, the expert talks extensively about the company, present day Energy (oil) consumption in India, and significance of digitisation. Excerpts:

According to reports, India is poised to become world’s third largest oil consumer by 2025. Please share some insights on present day Energy (oil) consumption in India.

“India is Home to Many Digital Companies” 70 CargoConnect - OCTOBER 2018

Maersk tankers is one of the oldest and largest companies globally. We work in several markets across the world. India is also one of the very important components of our global business. At the moment we import approximately 40 million tonnes of oil in India, we don’t have the exact statistics of the total amount of oil consumption in India, but we do have external sources that we refer to. One of the most important external reliable sources is the British Petroleum Tankers Oil Petroleum Report. In their recent published report, they have mentioned that India consumes 754 million tonnes of oil every year; and it is growing at 4.6 per cent annually. With these numbers, India is poised to become world’s third largest oil markets by

2025, and we are quite excited to know that! And the fact that we can now support our customers and partners make us much excited while we anticipate of what lies ahead.

Maersk aims to be the first digital tanker company in India. Please elaborate on the company, its market size and opportunities ahead. I think digital is ‘In’ right now, and India is home to many digital companies. We also see India as a base for many companies to set up their technological hubs; and that is also one of the reasons why Maersk Tankers has decided to invest in India. Having said that, we have also been expressing a keen interest in digital transactions. From our point of view, we are a global company and we make sure our oil trucks move around the world, as and when they are needed; and with that we keep the world moving – that’s really what we do. And in doing so, India is a modern part of our global strategy. When we talk digital, it is going to mean many things: On one hand, we want to use digital technologies to help and improve the way we run our business. We use technology on a day-to-day basis to make sure that our ships and operations are running better, but most importantly, we want to use the digital know-how/technology that we have and are working on to solve problems for customers and partners and make sure that we benefit from it. Further, we want to make sure that the industry, as a whole, benefits from it. We hope to optimise the industry by ensuring more energy is accessible around the world, including India, and that is what we are focusing on adequately. We are quite passionate about what we are working on; and at the moment the key area that we are emphasising on- the first one is Contract Management, where we make sure that all our contracts are clear; and the second one is around the positioning, which we are quite excited about.

Tell us about the infrastructure, amount invested in technology and combining global standards with the way of working in India; how is the tankers business growing. Are there any challenges in this business where you think the Government should work on? We don’t have any specific large-scale challenges as such, now that we have the path set for us. Let’s start with some statistics- If we look at India, it is one of the fastest growing world economies. In 2017 it has grown 7.4 per cent, which was higher than China’s growth, and

According to British Petroleum Tankers Oil Petroleum Report, India consumes 754 million tonnes of oil every year and it is growing at 4.6 per cent annually

that makes it a very interesting place for investment. Now, if we look at oil exports in India from both sides; especially when we talk of exports on refined petrol and products, it make 10 per cent of the overall Indian exports. Oil also makes up for 20 per cent of India’s annual imports. So as the country’s economy is growing, the import and export of oil also tends to grow.

How do you think digitisation is helping serve customers in a better way? If you look at digitisation, basically it is removing a lot of friction that has existed in the industry so far. So when we say that we want to improve the way our customers get their services from us, digitisation is one of the tools that helps us acheive that. One of the things we are looking at right now is the ‘Positioning’. But how do we make sure that the vessel is positioned at the right place, at the right time to carry the right cargo? We use a lot of information and data and a lot

of digital tools to make sure that we can predict where we should place our vessels at a certain point in time, so as to make sure that we carry the right cargo for the customers; as and when they need them. By doing so we avoid a lot of reactive behaviour, and make it more proactive; and get a sense of the customer’s benefit, the benefit for the partner, who come into play with our commercial tools, which is also something that is very important to us. Thus, by using the data, technology and some of the expertise we have inhouse and igniting views of historical knowledge; being in the industry for a long period, is variable to ensure that our customers are served much better.

How do you foresee the industry’s outlook in the near future? If you look at the figures, they all point in the right direction, so the fact that the economy is growing at a fast pace; the ease of doing business in India is improving. The workforce in India is qualified and young, compared to the workforce around the world. So, all these indicators point to the fact that the overall energy consumption in India will continue to grow. And, we want to make sure that we are there facilitating that as India grows, by focusing on our customers and partners along the way. Definitely, we are quite much positive about that.

Can you can tell us about any expansion plans or projects in pipeline. Well, we have been operating in India one way or other from the last eight years, and what we did sometime earlier this year was to establish a global service hub in India. We have around 150 people employed in the India office today, who are working on variety of operations, be it commercial, technical, financial, accounting, IT and HR. In addition to that, we also employ about 580 seafarers which makes us one of the biggest companies in this particular market; and we expect both these numbers continue to grow over the next couple of years. CC

OCTOBER 2018 - CargoConnect

Interview

â&#x20AC;&#x153;Shipping Ministry is confident, growth targets are likely to be met by 2025â&#x20AC;? The Shipping Ministry aims to double the share of transportation of cargo through coastal shipping and inland water navigation by 2025 under Sagarmala programme. Could you brief on the developments? In 2014-2015, total cargo transported by coastal shipping was 83 million tonnes whereas in 2017-2018 the same is estimated at 110 million tonnes. An estimated 9 per cent CAGR growth was recorded over the last 3 years, as against 4.5 per cent CAGR growth in the preceding 3 years. Also, various measures including sanctioning of additional coastal berths, reduction of vessel and port charges for coastal movement vis-Ă -vis international trade, priority for coastal vessels at ports etc. have been undertaken by the major ports for promoting coastal shipping. Some of these measures have a lead time to fructify. Our ministry has initiated the execution of projects and various policy initiatives have started taking shape. One of the objective of Sagarmala programme is to enhance the share of waterways in national modal mix from 6 per cent to 12 per cent and various projects have been identified to achieve the target. Ministry is confident that the growth targets are likely to be met by 2025.

The main vision of the Sagarmala program is to reduce the logistics costs for domestic and EXIM trade with minimal infrastructure investment, informs Kailash Kumar Aggarwal, Joint Secretary, Ministry of Shipping, Government of India. In an exclusive interview with Ritika Arora Bhola, he talks about projects under Sagarmala programme, role of technology, and future of coastal shipping in India.

72 CargoConnect - OCTOBER 2018

Please share the initiatives taken by the government to reduce cost, dwell time and congestion. At present, our focus is to exploit the potential of the existing coastal routes so that logistics costs reduces. To achieve this, firstly, we have to ensure world-class infrastructure at ports for the easy movement of cargo. Secondly, if industries are developed along the coastal routes, the cost of transportation of cargo to and from hinterland may reduce by as much as 90 per cent. Thirdly, ports also have to be well-connected to the hinterland, so that there is seamless movement of cargo from the hinterland to the ports and for that proper road/railway connectivity should to be available. Under the Sagarmala programme, more than 4200 km railway line and 8700 km road network is proposed to be added to the existing networks so that seamless

movement of cargo from hinterland to ports and vice versa. Fourthly, port operations haveto be of world standards with respect to productivity. In this regard, there is a need to have IT enabled services, better quality of cranes, more mechanisation, advance ‘Port Community System’ (PCS) etc. for stakeholders to interact with each other, less paperwork, more online transactions and seamless communications etc. All these areas have been given focus under Sagarmala and is expected to provide the desired framework for improving the logistics scenario in the country.

more profitable, and therefore ports are creating infrastructure to handle large capacity vessels that require higher draft. Ministry has funded development of National Technology Center for Ports, Waterways and Ports at IIT Chennai to develop related technologies and reduce our dependence of foreign consultants. Similarly, Ministry of Shipping has also funded the development of a Center of Excellence at Mumbai and Vizag for imparting training for ship design, ship building and hull design etc., which will be one of it’s unique type in ten South Asian regions.

Also, various studies have been undertaken by the Ministry of Shipping to identify routes which are financially viable through coastal shipping, besides discussion with various stakeholders for means to reduce costs through coastal movements. There are certain policy interventions which have been carried out, for example, the ministry has recently relaxed cabotage for movement of fertilisers and agricultural produce. Other policy interventions are in discussions with other ministries and State Governments. Overall, port authorities are trying to make it easier for the customers to move their cargo which will eventually reduce the dwell time.

Inland Waterways Authority of India (IWAI) is rolling out with world-class inland vessels for rivers. These vessels are being designed by a reputed international

How do you think technology is changing the future of coastal shipping in India? Port Community System is a platform where various stakeholders are able to communicate and transfer data online with each other. This platform is now being upgraded to PCS–1x. It will have additional features. It reduces paperwork and provides real time assessment of stock, cargo and equipments to the stakeholders on a need basis. Secondly, focus is on the modernisation and mechanisation of the equipment with state-of-art technology to improve efficiency and productivity. Also, servicing higher capacity ships is commercially

Ministry believes that there would eventually be a grid of roads, rail, pipelines and terminals all converging at one or the other MMLP in the country

firm and their prototypes will be available shortly. The prototypes are being designed with due consideration to efficiency in terms of fuel and durability, and their ability to operate in various conditions.

Please elaborate on government’s initiatives to promote coastal shipping and address the concerned issues. As far as route development is concerned, more than 4200 km of rail network and 8700 km of road network are planned to be added. These projects are under various stages of development and require an overall investment in excess of `2.25 lakh crores. For capacity addition, the Sagarmala programme is considering planned

investment of nearly `1.5 lakh crores. These projects include new port development, capacity addition at existing ports, and operational improvements at existing ports. For reduction in fuel costs, GST on bunker fuel which was earlier 18 per cent has now been reduced to 5 per cent. Further, since pipelines are one of the most efficient ways of transporting liquid cargo, 3 pipeline projects are in progress. For logistics costs, there is the concept of development of Multi Modal Logistics Parks (MMLPs). The objective of developing these MMLPs shall be to serve as hubs for aggregating cargo and further coordination for dedicated movementof individual cargo to enduser industries in their influence area. 15 MMLPs have already been identified under the Sagarmala Programme, one MMLP at Pantnagar is now completed. Ministry has a focus area to arrest the growing trend of the Indian cargo being transshipped at foreign ports and a policy initiative to relax cabotage to arrest this trend has been announced in May 2018, results of this intervention are very encouraging.

How do you foresee the future of coastal shipping in India? Main vision of the Sagarmala programme is to reduce logistics costs for domestic and EXIM trade with minimal infrastructure investment. One of the main objectives of the programme is to increase the current share of coastal and inland water transport in the national modal mix from the existing 6 per cent to 12 per cent by the year 2035 through various interventions, optimising the modal mix of transportation of goods and reducing the cost of transporting cargo. Ministry believes that there would eventually be a grid of roads, rail, pipelines and terminals all converging at one or the other MMLP in the country. CC

OCTOBER 2018 - CargoConnect

INTERNATIONAL CONNECT

Blazing a trail when it comes to Automation S

ingapore’s Changi International Airport, voted the world’s best for the past six years by international air transport rating organization - Skytrax, is pursuing that goal of extensive automation with such vigour that it built an entire terminal to help test the airport bots of the future. But what is Asia’s second-busiest international airport implementing? Changi opened its Terminal 4 in October 2017 partly with the idea of using its smallest and newest facility to test and develop automation. The goal is to have it all working for its gigantic Terminal 5, a monster building that would be able to handle 50 million passengers a year when it opens at the end of the next decade, making it one of the largest and most automated passenger terminals in the world. As a plane joins the long line to land, it’s detected, identified and monitored by an array of cameras and technology that bypass the traditional control tower. Once at the gate, a laserguided aerobridge positions itself to let passengers disembark, while automated vehicles below unload baggage, dodging others that are delivering robot-packed meals or processing cargo. The passengers head to automated immigration turnstiles that face-scan and thumb-print them, then head to collect their luggage, which baggage bots have already delivered to the carousel. Under the gaze of an actual human — the steely-eyed customs official — they head out to queue for a driverless taxi. Including services such as maintenance, cargo and other related services, Changi and related aviation businesses and services employ some 21,000 people, contributing about 3 per cent of GDP. Thus, the Civil Aviation Authority of Singapore and government-controlled companies such as ground-

74 CargoConnect - OCTOBER 2018

handling and in-flight catering firm SATS Ltd. are banding together to automate. SATS is testing a remotecontrolled vehicle that can collect luggage from a plane and move it to the baggage handling area in as little as 10 minutes. Another SATS trial uses an autonomous electric vehicle to ferry documents for air cargo. The company is using light detection and ranging to map routes to deliver trolleys with up to 200 kilograms of food each to lounges. SATS kitchens prepare almost 100,000 meals a day in Singapore and more than four times that number in its operations around the region. While it doesnâ&#x20AC;&#x2122;t yet have robots cooking up the chicken or the fish, its automated cutlery packing system has boosted productivity 36 per cent, and its tray assembly line now has nine employees instead of 45. A unit of ST Engineering Co., the stateâ&#x20AC;&#x2122;s flagship technology company, is testing autonomous aerobridges that align to the plane door using lasers and cameras. The same technology can be used for other airport equipment, such as catering trucks. Well, itâ&#x20AC;&#x2122;s not just automation that Changi is counting on to maintain its status as a major air hub. The airport is renowned for adding passengerfriendly facilities and shopping to sooth weary travelers and separates them from their currencies. Its terminals boast a butterfly garden, a 12-meter high kids slide and some S$2.5 billion ($1.8 billion) in annual retail sales. CC OCTOBER 2018 - CargoConnect

Startups Startups could be the synonym of Market disruption as startups in any field with their immense energy and innovative techniques challenge the traditional companies and disrupt the market by offering the same services at the competitive rates. Recently, several startup companies have cropped up in Indian logistics space with flabbergasting growth projections of the logistics industry. Here we will discuss how startup companies with their innovative solutions are changing the way of doing logistics business in the modern world.

Providing e-retail kind of marketplace to Logistics industry FreightCrate Technologies FreightCrate Technologies is a Logistics Technology company focused on improving the international freight/shipping process for both logistics service providers (LSP’s) and exporters/importers. ‘FreightCrate’ is a web-based marketplace, initially focused on Indian customers, where exporters/importers can view and compare freight quotes and manage shipments from multiple logistics service providers. However, the company’s main focus is the international shipping and freight industry. The company offers online freight quote, booking and order management solutions to all types of export-import businesses and manage shipments via Air and Sea, Door-Door to over 500 international ports.

Enabling the asset-light model in supply chain business ElasticRun

ElasticRun technology allows its customers to run the transportation and supply chain systems in an asset-light model. The team has devised a disruptive operating model and technology to deliver supply chain services to its customers. The team further claims that with their solutions, the customers don’t have to spend capex on building fixed-capacity logistics setups.

Simplifying international logistics

Cogoport

If you want optimized logistics solutions then Cogoport, a digital freight logistics startup, has answers of all your requirements. Cogoport provides highly customer-focused end-to-end global digital freight solutions for importers and exporters covering warehouse to warehouse transportation solution. It is an online international freight exchange that uses cutting-edge technology to make the most cost-effective match between exporters and importers on one hand and ocean and air freight carriers on the other. The company offers global freight rate trends, competitive rates, easy shipment booking options, real-time container tracking, door-to-door delivery, and business analytics on a single platform.

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76 CargoConnect - OCTOBER 2018

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Integrating safety and process control

in Autonomous Vehicles

to more complex ones, such as urban city streets, ultimately it has to be able to operate in different climates and different traffic conditions, from the Hindu Kush to downtown Manhattan. It can’t be impacted by lots of dust or by aggressive traffic.

utomation is coming. Driverless cars are already on the road, even if still in the early generations. The same applies to trucks. This is going to be the next leap forward in transport. Or is it? The technology to move, turn and stop an autonomous vehicle is quite straightforward. It’s more complicated to prepare the vehicle to operate in the multimodal environment of the public road, where there are pedestrians, cyclists, children playing, animals running across the road, potholes, other drivers and the rest. And yet automation promises to bring positives of increased safety, decreasing costs for transport operators and reduced emissions. What is clear from the precedents is that machines almost always out-perform humans. So what are we debating?

The end result needs harmonised and interoperable standards that can be applied across the world, with the accompanying technical controls and testing. Then there is the issue of awareness. When you know the technology, it’s easy to have confidence in it. But we also need to educate the general public because our industry has an impact on everyone. Everybody is a road user. So a significant challenge for the industry is to educate.

Security Anyone moving cargo needs to ensure that it arrives safely and securely. When you introduce automation, with data being sent to and from the vehicle, you introduce a potential vulnerability. Cyberattacks are an issue for any business. As an industry, our data security has to be the very best.

Regulation and incentives

Sustainability The third area is sustainability. And this is where we, and the regulators, have much work to do.

(Authored by Boris Blanche, Managing Director, IRU)

Safety As our very first priority, we must prevent loss of life and injury on the road. Safety overrides the purpose of getting things, or people, to the right place at the right time.

Conversely, automation may be a very good thing for security. In the automated world it will not be possible to physically steal the keys to a truck and drive away.

78 CargoConnect - OCTOBER 2018

The second focus is environmental. Autonomous vehicles have smoother driving patterns, reducing fuel consumption and increasing efficiency. Study after study shows that automation will therefore have an overall positive environmental impact. Lower fuel consumption reduces cost, of course, which is critical for a low margin industry.

It is an inevitable truism that technology always out-paces regulation. We need the international and national regulators to establish new rules and regulations around labour laws, based on the new roles of the driver/operator. And soon, they also need to provide incentives to drive the deployment of new technologies, so that, we and society more widely, can realise the benefits of automation as quickly and efficiently as possible. Governments, insurance companies and technology providers also need to evolve existing liability laws in order to provide legal certainly and identify appropriate solutions for damage and injury.

Hackers are always developing new attack routes so businesses have to remain nimble, moving fast to stay ahead. Or, at the very least, not falling behind. That means the highest cybersecurity not only for automated vehicles but for all logistics data processes.

We need to ensure the technology is proven, stable and solid. Even though geographical expansion will be gradual from easy-to-operate environments

One focus is employment, specifically drivers. It is obvious the job of a professional driver will change but, perhaps less obviously, it won’t go away. Automation will remove some of the more mundane elements – cruising the highway – but there’s a lot it won’t be able to do. However good it is, automation is unlikely to be able to negotiate with customs officials or change a tyre. So we are going to need a new type of driver. Perhaps they’ll be called operators or pilots instead? The benefit is that it could actually make employment in the industry more attractive.

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IndoSpace and GLP are now Strategic Partners

IndoSpace, the largest industrial real estate company in India, and GLP, the leading global provider of modern logistics facilities and technology-led solutions, have established a long-term partnership. GLP will partner with IndoSpace and also co-invest in IndoSpace’s managed investment vehicles. The partnership enables IndoSpace to leverage GLP’s fund management, development and operational expertise and resources, as well as GLP’s extensive global customer network, to further strengthen IndoSpace’s leadership position in India. Sameer Sain, Co-Founder and CEO of the Everstone Group (co-founder of IndoSpace), said, “IndoSpace is excited to partner with GLP, the global leader in the logistics space. GLP’s expertise, scale, technology and global relationships will give us a massive advantage and enable us to deliver significant value to our customers and investors.” Ming Mei, Co-Founder and CEO of GLP, said, “This partnership is highly strategic and mutually beneficial. IndoSpace is an experienced partner which shares similar values and culture as GLP. It provides us with the immediate scale to capitalize on the early growth stages of India’s rapidly modernizing logistics landscape and further expand our logistics ecosystem.”

Digital transformation of Bangalore Airport gets a boost

Siemens Postal, Parcel & Airport Logistics (SPPAL) and Bangalore International Airport Limited (BIAL) - operators of Kempegowda International Airport, Bengaluru (BLR Airport) - have signed a MoU to jointly drive the digital transformation of the BLR Airport. The declaration of intent envisages cooperation in a number of areas, including the digitalisation of existing infrastructure through the use of Internet of Things (IoT) applications. “The BLR Airport is a pioneer and leader of change in the Indian aviation industry. Our aim is to introduce more digitally advanced, innovative services and products at the BLR Airport, ” said Hari Marar, Managing Director and CEO of BIAL.

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INDIAN FMCG MARKET 2020 FMCG is the 4th largest sector in the Indian economy. A country whose middle class population is as big as the entire population of USA is a market which no FMCG player can afford to overlook. India’s robust economic growth and rising household incomes are expected to increase consumer spending to US$ 3.6 trillion by 2020. FMCG market in India is expected to grow at a CAGR of 27.86 per cent and is expected to reach US$ 103.70 billion by 2020 from US$ 52.75 billion in 2017-18.

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Chennai bags top position among worldâ&#x20AC;&#x2122;s 10 fastest growing airports

AISATS becomes first to introduce RFID cargo tracking at Kempegowda airport

According to IATA reports, Chennai has recorded a strong growth of 17.2 pc along with the Mumbai airport (18.1 pc) to figure in the list along with Kuwait, Moscow, etc. Bagging position in the list of top 10 fastest growing airports in India, the total cargo tonnage flown from India crossed the one-million thresholds in 2017, with a strong, double-digit growth rate of 16.9 pc. With regards to global ranking, Dehli and Mumbai were ranked at 29 and 31, respectively. The report also states that in the year 2017, more than 158 million passengers flew on routes to, from and within India, showcasing a steady increase an increase of almost 15 per cent over 2016 and it is the third consecutive year of growth.

Air India SATS Airport Services Pvt Ltd (AISATS) has launched a new shipment tracking platform that uses Radio Frequency Identification (RFID) technology for its cargo handling operations at the KempegowdaInternational Airport, Bengaluru. AISATS will now be the first and only air cargo terminal operator in India to bring this RFID technology to the country for real-time and improved cargo tracking. This technological initiative is a collaboration between AISATS and its Singapore-listed joint venture stakeholder, SATS Ltd., which operates an unrivalled network of Gateway Services and Food Solutions in over 60 cities across Asia. The introduction of RFID technology will enable AISATS to undertake real-time cargo tracking for end-to-end visibility and faster turnaround. The RFID tracking system, capable of processing large quantities of cargo, will further bolster speed and accuracy, thereby making the cargo handling process more secure.

SpiceJet signs MoU with Afganistan to operate cargo flights

SpiceJet will operate cargo flights between Delhi and Kabul after having signed a memorandum of understanding (MoU) with the Afghanistan Chamber of Commerce and Industries (ACCI). The cargo services, operating under the SpiceXpress brand will transport fresh fruits and dry fruits, carpets and other commodities from Kabul to different states of India, subsidised by the Afghan government. SpiceJet will transport the commodities from Kabul using its freighter aircraft to Indian metro cities and throughout India on its passenger network when operations begin from 15 October, with the airline saying it plans to transport up to 1,500 tons of cargo a month under the MoU. The MoU was signed by SpiceJet chief project officer, Manjiv Singh; ACCI chief executive director, Atiqullah Nusrat; and senior advisor of the president of Afghanistan in banking and financial affairs, Ajmal Ahmady.

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MoU inked for Indore-Manmad rail line project

ACI presented Airport Service Quality Awards to six AAI Airports

A pact for implementing the 9,000 crore Indore-Manmad new railway line project was signed between Jawaharlal Nehru Port Trust-Ministry of Shipping, the Railway Ministry and the Maharashtra and the Madhya Pradesh governments. The new project will reduce the distance from Mumbai/ Pune to key central India locations by 171 kilometers from earlier 815 km, resulting in lower logistics costs. Hailing the MoU, Union Shipping Minister Nitin Gadkari said this project is a major step towards development of backward areas of Madhya Pradesh and Maharashtra through which the new railway line will pass. The project is estimated to result in cumulative net economic benefits of Rs 15,000 crore in the first ten years of operations.

Airports Council International (ACI) presented Airport Service Quality (ASQ) Awards 2017 to winning airports in a glittering ceremony held recently at Customer Excellence Global Summit at Halifax, Canada. Airports Authority of India’s (AAI) six airports have bagged 07 awards in various categories. The winning AAI airports include Lucknow, Indore, Ahmedabad, Chennai, Kolkata and Pune airports. Based on the results of the survey carried out by the Airports Council International (ACI), (a global non-profit organisation of Airport Operators) on Airport Service Quality (ASQ), Lucknow Airport has been rated as the world’s top airport in the category - “Best Airport by Size” among the airports handling 2 to 5 million passengers per year. Lucknow Airport has also bagged the award for “Best airport by size and Region” among the airports handling 2-5 million passengers per year in the whole Asia Pacific region.

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IATA wants greater role of women in leadership role

Future Supply Chain partners with Voltas JV Voltbek

Five stakeholder organisations in the aviation and aerospace industry will launch a global study – “Soaring through the Glass Ceiling” – to identify and promote means by which the aviation and aerospace industry could more effectively recruit and advance women into leadership roles, the International Air Transport Association (IATA) has disclosed. The study is scheduled for release in the second quarter of 2019. According to IATA, women have made great strides in many professional fields and industries but there remains a gap at the leadership level. More can and should be done to enable the advancement of women into important leadership roles in the global aviation and aerospace sector.

Future Supply Chain Solutions Limited (FSC), a leading thirdparty supply chain solutions specialist and logistics service provider from Future Group, has signed an agreement with Voltbek Home Appliances Private Limited (Voltbek). Appointed as its logistics partner, FSC will design and manage a pan-India supply chain strategy for their complete range of consumer electronic products under the brand name Voltas Beko, including refrigerators, washing machines, microwaves and dishwashers. FSC will act as an end-to-end logistics service provider to Voltbek and will cater to the entire warehousing and transportation needs with an aim to improve lead time while optimizing supply chain costs.

AAI to develop plan for Palaly Airport, Sri Lanka

Vizag port gets electronic tool to track cargo bound for Nepal

AAI signed an agreement with the Ministry of External Affairs, Govt. of India for preparation of Detailed Project Report for development of Palaly Airport in Sri Lanka. The agreement was recently signed by Anil Gupta, Executive Director (Land Management & Business Development), Airports Authority of India andSanjay Panda, Joint Secretary, IOR, MEA, Govt. of India. Speaking on the occasion, Anil Gupta ED (LM & BD), AAI envisaged AAI’s vision for going global considering AAI’s expertise and capabilities in airport development and operation management.

The Customs authorities on Tuesday launched an electronic cargo tracking system (ECTS) for goods exported to Nepal from the Visakhapatnam port. The GPS-based tracking tool will cut down on the transshipment time to two weeks from 2-3 months now, and result in savings to the Nepalese trade. Cargo pilferage by tampering can also be prevented, as the containers are electronically sealed.

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Nitin Gadkari inaugurates a section of NH6 in Northeast

First greenfield airport of Northeast inaugurated in Sikkim

The Union Minister of Road Transport and Highways Nitin Gadkari inaugurated the rehabilitation and up-gradation of existing road to 2-lane with paved shoulders configuration in Jowai-Ratacherra (Meghalaya Assam border) section of the National Highway- 06 at Shillong recently. The 102-kilometre long road was constructed at a cost of Rs 683 crore by the National Highway Authority of India (NHAI). Speaking on the occasion, Gadkari said the government intends to give the highest priority to infrastructure development in North East, especially in the road sector. In addition, the other two important sectors are industry and agriculture. The union minister also asserted that there are various big projects for the NE states and further urged the National Highway and Infrastructure Development Corporation Limited (NHIDCL) to make small packages and give more contracts to the people from the area so as to provide employment opportunities, he said.

Prime Minister Narendra Modi recently inaugurated an aerodrome at Pakyong, Sikkim. This is the first greenfield airport in Northeast India and covers an area of 990 acres. The airport has been constructed at a cost of more than `600 crore. The airport, which is located 33 kilometres away from state capital – Gangtok, will provide passengers ease connectivity to Sikkim via air. Earlier, visitors had to take a flight to West Bengal’s Bagdogra airport and then travel for 124 kilometres uphill to reach Gangtok. Till date, Sikkim was the only state in the country that had no functional airport. The first commercial flight from Pakyong would take-off from October 4.

MIAL Cargo obtains Authorised Economic Operator certification

Celebi all set to commence operations at Kannur International Airport

GVK Mumbai International Airport Limited (MIAL), the company that manages the Chhatrapati Shivaji Maharaj International Airport has announced that MIAL Cargo has received the Authorized Economic Operator (AEO) – LO operator certification by The Central Board of Indirect Taxes and Customs (CBIC), which is valid for 10 years. The AEO certification offers an opportunity for customs to share its responsibilities with the businesses, while at the same time rewarding them with a number of additional benefits.

Celebi Airport Services, a global service provider in ground handling services, will soon start its operations at the Kannur International Airport Limited (KIAL) which is gearing up to go live for commercial flights this year. This will be Celebi’s sixth airport in India after Kempegowda International Airport in Bangalore, where the company won the ground handling licence in June 2018. The partnership with KIAL is the company’s second win in the state after Cochin International Airport. The total investment made by Celebi under this partnership will be worth more than $4 million. The license for providing ground handling services at KIAL was won by Celebi on the basis of a highly competitive international bidding process which saw multiple global ground handling players participate.

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ICAO audit says India fails to meet set standards The Centre’s performance on oversight of aviation safety rules has come under scrutiny and been seen as under par, according to International Civil Aviation Organisation (ICAO)’s global Universal Oversight Safety Audit Programme, 2017. The ICAO audit suggests that India fails to meet the global average score of “effective implementation” on five of eight parameters. The ICAO audit judges safety oversight to implement ICAO standards based on eight parameters — legislation, organisation, licensing, operations, airworthiness, accident investigation, air navigation services and aerodromes. India’s performance has been lower than neighbour Bangladesh when it comes to effectiveness of implementation of the ICAO standards. Bangladesh has also performed better than India on seven out of the eight parameters. Even Indonesia has performed better than India on all parameters while Malaysia has beaten India in five parameters.

Qatar flies 100 tonnes of medication for Hermes Travel and Cargo Pvt Ltd

Qatar Airways Cargo has transported more than 100 tonnes of medications from Mumbai to Brasilia for customer Hermes Travel and Cargo Private Limited. The airline said the Boeing 777F charter flight was one of the largest shipments of medicines that is has transported on a single flight. The government of Brazil initiated the implementation of PrEP to prevent new cases of HIV among key higher-risk population groups through 35 sites across the country. The Brazilian programme aims to offer PrEP to 54,000 people within the next five years. Rohan Thakkar, joint managing director at Hermes Travel & Cargo Private Limited, said: “The B777 charter freighter that was deployed on the Mumbai-Brasilia route to move such a huge volume of pharmaceuticals saw seamless, timely and very well-coordinated deliverables from Qatar Airways Cargo, which paves the way for a growing cooperation with the carrier in the near future.”

INSTC to spurt international trade and logistics: Commerce Secretary FFFAI jointly with Ministry of Commerce & Industry organised the International North South Transport Corridor (INSTC) conference on Tuesday, 25th September, 2018 at Pullman Hotel Aerocity, New Delhi. Speaking at the jam-packed session, Dr Anup Wadhawan, Commerce Secretry, Government of India maintained that there would be tremendous boost to exim trade between India and West Asia and European countries using INSTC route in the days to come. The conference was attended by Senior Bureaucratic, Diplomats from Embassy of Iran, Russia, Azerbaijan and CIS countries; Stanley Lim, Past President, FIATA; Mr Samir Shah, Past Chairman, FFFAI; Mr Shankar Shinde, EC Member of FFFAI; members from EXIM fraternity & delegates from India, Russia, Iran and CIS countries. The North-South Transport Corridor is an ancient route that connects the South Asia with North Europe for centuries. This route was used by European, Indian, Russian and many other foreign traders. These traders played a significant role in managing the trade and commerce between Russia and South East Asia through the territory of present day Azerbaijan and Iran.

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news

Concor offering 45-day free storage to exporters and Importers Market leader Container Corporation of India Ltd (Concor) is seeking to disrupt the container logistics market by offering 45day free storage period to exporters and importers at its facilities handling EXIM containers. From September 1, India’s biggest rail hauler of containers has begun to offer a 45 day free storage period to import/direct port delivery (DPD) loaded containers, export/direct port entry (DPE) loaded containers and 90 days for empty containers across its 46 EXIM terminals. After the free storage period, Concor will levy uniform terminal service charges (TSC) per day at all EXIM terminals depending upon its category. Concor will not levy TSC at four terminals under ‘Other category’.

India to use Bangladesh’s ports for cargo transportation Bangladesh cabinet has approved a draft agreement, allowing India to use its Chittagong and Mongla ports to transport cargo to its northeastern states. Bangladesh Cabinet Secretary Shafiul Alam said the draft has been prepared for signing the deal with India, but Nepal and Bhutan can be added to it, if they wish to use the 2 ports. Under the agreement, India can transport goods as per capacity of two sea ports. Only Bangladeshi vehicles will be used for transportation of goods within its territory. Indian goods can be transported through four entry points - Akhaura (Bangladesh) and Agartala (India’s Tripura), Tamabil (Sylhet, Bangladesh) and Dauki (Meghalaya), Sheola (Sylhet) and Sutarkandi (Assam) and Bibirbazar (Cumilla, Bangladesh) and Srimantapur (Tripura).

Government approves new domestic terminal building at Patna airport The Cabinet Committee on Economic Affairs (CCEA) has cleared construction of the terminal and other allied structures at Patna airport at an estimated cost of `1,216.90 crore. After construction of the new terminal building, the airport can handle 4.5 million passengers per annum (mmpa) from current level of 0.7 mmpa. The New Terminal building shall have an area of 65,155 square metre including basement of 18,650 square metre and shall be equipped with world class passenger facilities. The project is part of the ‘package for Bihar’ announced by Prime Minister Narendra Modi. With the construction there will be an increase in economic activities in Patna region, which in turn will create additional jobs.

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V-Trans Executive Director Aditya Shah honored as Emerging Leader of the Year Aditya Shah, Executive Director, V-Trans have been awarded the ‘Emerging Leader of the Year Award’ at the Future Leaders Summit 2018 held in Mumbai. The award which was presented to him by Sumit Mitra, CEO, Tesco; recognises his exemplary vision as an entrepreneur and his commitment to driving excellence in all aspects of the company’s operations. Aditya has been associated with V-Trans for over nine years. In less than a decade of active association with the company, he has been instrumental in key developments in the corporate and sales strategy, Key accounts and customer service and has led by example. He has been recognized for his innovation, versatile future ready thinking, and capabilities to align the demands of the market effectively. Aditya’s enthusiasm coupled with his risk- taking abilities and an uncanny sense of timing has helped him to be a well-deserved recipient of this award.

news

Drone Deliveries to boost logistics market

DHL Express opens first service center in Aurangabad

Delivery and pick up of goods by drones will boost logistic capabilities in the country, said Jayant Sinha, Minister of State for Civil Aviation. Flying of drones for civilian purposes would be legal from December 1. According to the Union Minister, drafting of the drone regulations through Civil Aviation Requirement (CAR) has taken long time “due to rapidly evolving usage of drone, many countries are in trial mode with drone regulations, no ICAO ethics have been settled & India’s security environment requires extra precaution.” The vital aspect of regulatory rule-making process is to allow safe zones for experimentation in cases of fast-evolving new technologies, the minister said. The Director General of Civil Aviation (DGCA), under MoCA, is in a process to set up a digital sky platform that will regulate its flight in Indian territory, and will also recognise unregistered drones flying in the sky.

DHL Express, the world’s leading international express services provider, recently inaugurated a new service center in Aurangabad. This marks the 14th facility established by DHL Express in Maharashtra, and with this the company became the first international service provider to commence operations in Aurangabad. The new facility aims to enable and facilitate trade in Aurangabad, which is emerging as a strong manufacturing base and a prominent location for the IT sector. In addition, it will extend support to industries such as automotive, pharmaceuticals, electronics and engineering. The sustained expansion in Maharashtra is part of DHL Express’ €45 million investment committed towards the company’s infrastructure development in key industrial clusters across the country.

First phase of National Logistics Portal likely to be implemented in March

Cargo Channels provides Logistics support in handling of Vintage Cars

The first phase of the National Logistics Portal (NLP) — a digital platform, bringing all stakeholders of logistics sector on board to cut down transaction cost and time for businesses — is likely to be implemented by March 2019, a government official said. “The Department of Commerce, which is designing the portal, has already received an approval of the ‘proof of concept’ from a Committee of Secretaries and is now working on the detailed project report,” a government official associated with the project told to a leading English daily - BusinessLine. Finance Minister Arun Jaitley, in his Budget speech this year, had announced that the Department of Commerce will create a portal which will be a single window online market place.

Cargo Channels Pvt Ltd provided logistics support to deliver 39 vintage cars from all over the world to their owners for “The Himalayan Challenge 2018” car rally. The rally started from Delhi on September 21 and will finish at Agra on October 11. A total of 35 cars were imported in CMA CGM containers and 4 in OOCL containers. Logistics support was provided by Cargo Channels Pvt Ltd (a group company of Argus Global Logistics), a prominent and experienced Delhi Customs broker. The cars were flagged off from the CFS by Customs Commissioner, Govind Dixit and CEO Capt. VM Bawa in the presence of guests and Customs staff. On behalf of the organisers, Mahesh Trikha, MD; Saurabh Trikha, Director and Manoj Kumar, CEO of Argus Global Logistics thanked the CFS staff and Customs officials for their guidance and support at ICD Dadri, which enabled clearance of the cars in time for this prestigious event. OCTOBER 2018 - CargoConnect

PROFILE

AAICLAS

Infrastructure created by AAICLAS and long term action plan for NER

NORTH EASTERN REGION

Developing integrated International Air Cargo Terminal at Guwahati Airport at the cost of 1.5 Crores to handle 1000MT/month.

Customs EDI system (Service Center) has put under operation at Guwahati Airport recently to promote Intl Trade.

The North East region shares borders with China in the north, Bangladesh in the South-West, Bhutan in the North-West and Myanmar in the East. This makes the North-East a prospective HUB of International Trade and Commerce. However, the current market outreach for perishable sector is restricted to only Indian states. Limited air connectivity confines the potential of the sector. It is therefore imperative to not only highlight the potential of the perishable sector in the region but also to understand the reasons behind itâ&#x20AC;&#x2122;s under- utilised potential and take corrective steps.

The existing CUDCT with dedicated Cold storage/valuable storage facilities in the out-bound/In-bound warehouses will cater the emerging potential of e-commerce, air cargo and perishable cargo.

INITIATIVES IN

he North East region (NER) of India, comprising of the states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim is endowed with rich natural bio-diversity producing large variety of agriculture and horticulture products including forest wealth, fruits and vegetables, flowers, herbs and aromatic plants, rare and rich flora and fauna.

Guwahati airport is termed as the major gateway airport for the North East region, catering to around 22,000 MT of air cargo. This cargo movement is growing at a CAGR of 18 per cent year on year for the last 10 years. The region possesses immense potential and perishable sector in the North-East region, specially the horticulture has not grown at par with the rest of the country. This lack of exploration of regionâ&#x20AC;&#x2122;s horticulture potential has been mainly due to lack of market led production practices, poor commercial understanding of farmers, insufficient infrastructure at the farm level, poor transportation system, inadequate road network, lack of postharvest infrastructure like dedicated markets, pack houses, cold storages, processing industries, etc.

Construction of Air cargo Terminal in Progress at Imphal, Silchar and Agartala Airports airport

Common User Domestic Cargo Terminal -2 and 3 is under construction to bring all Handling Airlines under one Umbrella at the cost of 3.5 Crores to handle 3000MT per Month with state of ART facilities.

M/s AIDC to develop Perishable Cargo Terminal and integrated pack-house facilitate for Perishable Cargo by following components: Washing, Sorting and Grading facility; packing facility; Two cold chambers for Transit storage; Refer vans & Plugs; Material Handling Equipment including pallets, hydraulic pallet trucks, fork lift, Crates etc.; DG sets, office & IT infrastructure, tables, RO water treatment plant, Digital Weighing scales, CCTV facility, lighting. Guwahati Airport may focus on emerging potential of Pharmaceutical Industry in then the State of Sikkim with the presence of leading companies in the sector-Zydus, Cadila, Alkem, Sun Pharma, Cipla, Golden Cross Pharma, etc. Movement of pharma units is expected into the state owing to the tax incentives being provided and the near-completion of tax exemption period in other states such as Tamil Nadu. Bagdogra Airport is in closer proximity to the pharma clusters in Sikkim, AAI/AICLAS may be able to cater to pharma clusters by assessing and creating infrastructure/services required for the facilitation of pharma cargo to GUA for onward air transshipment. Positioning FSSAI and PQ offices in Air Cargo premises will facilitate the trade to speed up the process (which is currently located at 30Km away from Guwahati Airport). AAICLAS may consider underwriting space in the belly of an airline/minimum cargo assurance to incentivised operation at Guwahati Airport.

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PROFILE

Our New Inititative for Enrichment Business Collaboration

On 12th September 2018, Wednesday, Om Logistics Ltd. in Collaboration with CELEBI & GSEC Ahmedabad has announced a dedicated bonded truck service from Ahmedabad to Delhi. This bonded trucking service will open tremendous opportunities for airlines to solicit business from stations they are offline. Exporters in Gujarat will now be able to custom clear their goods at Air Cargo Complex, Ahmedabad and the truck will reach Delhi airport in 26 hours. At Delhi, it will be given a special access to the terminal. This would help Exporters in Gujarat to connect to most international destinations and avail better freight charges from airlines operating out of Delhi. Om Logistics Ltd is a long-term partner with Celebi for any trucking requirements they wish to offer to their customers anywhere in the country, and are willing to provide customized solution to make it a value proposition for all stakeholders in business. This service bring the cargo to Delhi Airport and then the cargo will be handed over to airlines in Delhi. As a Leading player in Logistics we keep innovating to better serve our customers. This Collaboration approaches to make more safer and express delivery between two states.

This partnership is another milestone that confirms our commitment to creating value for our customers through innovations & Dedication. OCTOBER 2018 - CargoConnect

APPOINTMENTS Sean Healy, new regional COO of FedEx Express EU

Jessica Tyler promoted to VP, Strategy & Development

Steve Griffiths appointed as the new COO of LSA

FedEx Express Europe has announced the appointment of FedEx veteran Sean Healy t o Regional Ch ief Operating Officer (COO). Healy’s work in Europe will involve continued operational integration, as well as leveraging the company’s networks, people and innovation to deliver service excellence and support growth across the region. Healy succeeds Michael Holt who will retire by the end of September 2018.

American Airlines Cargo has appointed Jessica Tyler as new Vice President, Strategy and Development. Her organisation will focus on the future, specifically how the carrier plans and invests in the right technology, products, partnerships and ways of doing business to best serve customers. She will continue leading American’s digital transformation initiative enabling end-to-end business process and customer experience modernisation.

Steve Griffiths, who previously worked as the chief operating officer (COO) for Virgin Atlantic Airways, has been appointed COO of London Stansted Airport. He will take up the new role from Oct’ 15 and report directly to Ken O’Toole, chief executive of London Stansted. In his new post, he will be responsible for the safe and secure day to day leadership of the airport whilst it undertakes its biggest ever capital programme.

CargoLogicAir appoints Frank De Jong as COO

Ian Oliver is SEKO’s new VP for Domestic operations

Bombardier Transportation appoints Thomas Schmidt

Frank De Jong has joined British all-cargo airline CargoLogicAir (CLA) as Chief Operations Officer. In his new role, Frank assumes responsibility for Flight, Ground and Technical operations with a mandate to take the airline’s operational and service delivery performance to the next level. Frank succeeds Sten Rossby, who takes up another executive role in the industry.

SEKO Logistics has appointed Ian Oliver to the new post of Vice President, Domestic Operations. In his new role, Oliver will base the company’s Chicago headquarters and lead SEKO’s Strategic Partner engagement in the US and have responsibility for Domestic Operations, including its rapidly expanding line haul operations and supporting its home delivery services.

Bombardier Transportation has appointed Thomas Schmidt as the new Head of Global Communications. In his new role, Schmidt will lead all internal and external communications at Bombardier Transportation to further increase the impact and efficiency of its global communications activities. Schmidt will report directly to the company’s President, Laurent Troger.

Bicil to run affairs at Imperial logistics’ global division

Patrik Tschirch to now lead the expanded LUG network

BIFA expands training team with Capaccioli appointment

Imperial Logistics International, the international division of Johannesburg-based Imperial Logistics, has appointed CEVA Logistics’ executive Hakan Bicil as Chief Executive. In his new role, Bicil is charged with accelerating the development of the Group’s international business - which currently accounts for some 40 percent of Imperial Logistics’ total revenue, with a turnover of €1.6 billion.

Patrik Tschirch, MD and CEO of LUG aircargo handling GmbH, has been appointed to lead the expanded LUG network. In his new role, he is responsible for the stations in Frankfurt/Main, Munich, and Hamburg as well as for the further deveopment of the network idea. As a result, he has also assumed overall responsibility for sales and all sales relevant topics at all three locations.

The British International Freight Association (BIFA) has expanded its training team with the appointment of Claire Capaccioli as trainer – Freight and Customs Procedures. Claire, who has worked in the industry for 27 years, started her career in 1991 at Kintetsu World Express but more recently, spent 20 years at Yusen Logistics. She is also a member of the Chartered Institute of Logistics and Transport.

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events

HTL Group celebrates its 40th anniversary with fervor Eminent celeb Alston Koch steals the show

HTL Group, a leading logistics company in the Indian subcontinent, celebrated its 40th anniversary with untamed zeal and enthusiasm in a lavishly held ceremony at Hotel Shangri La - Colombo, Sri Lanka on September 19, 2018. In the words of Reyaz Farook, Chairman/CEO, HTL Group, the event was a celebration of dreams and the sincere efforts of the company’s employees who always stay on their toes to best serve their clients. Farook also dedicated the success to Farina Reyaz, his wife, and said, “She is the pillar of my strength and has supported me through the journey.” On the business front, he said, “We are now looking at expanding our foot prints in warehousing and distribution.” Farook also appreciated the efforts taken by the Sri Lankan government in the development of the logistics sector. Alston Koch, a renowned singer and internationally acclaimed artist, with singing one of his melodious numbers emerged as the show stealer at the event. In addition to that, the rumble-tumble dance performances enthralled the audience who couldn’t stop clapping and cheering the performers. Cargo Connect interacted with the leading faces of the management without whom the company would not have been able to reach the apex of the logistics business. Ram Thakur, Director, HTL Logistics, who is with the company for over 25 years said, looking back, down the line, the way we were doing things and today the way we handle cargo, definitely we have come a long way, to speak of. Dilhani Albert, General Manager - Bangladesh, HTL Logistics while congratulating Farook and the team said, “HTL Logistics celebrating their 40th Anniversary is like achieving a great milestone in the logistics industry, where only a very few

companies have reached. I wish all success and blessings for the coming years.” “Nothing is impossible in this world, this is the lesson which I have learned from Farook’s success story, said Faisal Yaqoob, General Manager – Pakistan, HTL Logistics. The event was fabulous and entertaining, I congratulate both Farook and Farina for the company’s success.” On the occasion, Dinesh Chandrasekara – Director, HTL Group, who has been associated with the company from the past 17 years, said, “I extend my warm congratulations to Farook and the entire team on completion of 40 years in the service. I look forward to more success in the years to come.” Naveen Gunawardene, Director, Forwardair Aviation Pvt Ltd while talking about the celebration said, “The event was meticulously planned and well-executed. The function itself reflects the excellent qualities and attributes of Reyaz that made him create a reputed organisation back then which is wellaccepted in the air cargo industry.” Raajeev Bhatnagar, Vice President, HTL Logistics said, “We are extremely happy to share the joy and success of our 40 years journey. This success is a tribute to our professional team at all levels of operations who have performed year after year. Leadership of the group has allowed our team to innovate, initiate and take charge of products offering to ensure that our clients always get the best.” The gala night was studded with star performers of the company who were honored for their contribution towards the end. The event followed with dinner and cocktail party. - reports Gaurav Dubey in an exclusive coverage from Sri Lanka

OCTOBER 2018 - CargoConnect

events

9th annual SCM Pharma Summit chalks huge success This year’s SCM Pharma Summit 2018 held from 6 - 7 September in Mumbai, witnessed huge participation of delegates from all parts of the country. The conference laid maximum emphasis on technological advancements taking place in the pharma industry, in addition to discussions over data storage and security issues. Designed keeping in mind the current trends in the industry as well as strong research, the conference promised to be a single platform for decision makers as well as influencers to learn, meet, interact and explore opportunities to grow the pharma business.

Bolloré organises 3rd edition of Marathon Day On Thursday, September 20, 2018, over 14,000 Bolloré Transport & Logistics employees across 95 countries took part in the 3rd consecutive year of Marathon Day. This internal sporting event was created by Cyrille Bolloré, CEO of Bolloré Transport & Logistics, to raise funds for charity organisations. Since 2016, Marathon Day has brought together employees from Bolloré Transport & Logistics across the world. The Group, which supports young people through its sponsorship programmes, has chosen to donate all the funds raised to the SOS Children’s Villages organisation.

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Abu Dhabi Ports showcases KIZAD at FWC-18

Abu Dhabi Ports and its business subsidiary, Khalifa Industrial Zone Abu Dhabi (KIZAD), showcased their innovative logistics products at FIATA World Congress, 2018 held during 26 - 29 September in New Delhi, India. Among the array of innovative and customer-centric solutions that were presented is the recently-launched KIZAD Logistics City, which offers pre-built warehouses and Light Industrial Units (LIUs). The industrial, logistics and manufacturing hub is integrated with Khalifa Port, one of the fastest growing ports in the world, close to major UAE airports, and seamlessly connected by uncongested highways to Abu Dhabi, Dubai and into Saudi Arabia.

events

‘FIATA World Congress 2018’ culminates amidst enthusiasm

Hosted by Federation of Freight Forwarders’ Associations in India (FFFAI), the FIATA World Congress (FWC-2018), which took place from September 26-29 at Pulman Hotel, Aerocity, New Delhi with the theme ‘The Future Starts Here’ witnessed the presence of 1200+ delegates from more than 130 foreign countries and across India. The inauguration ceremony was addressed by AV Vijaykumar, Chairman, Federation of Freight Forwarders’ Associations in India (FFFAI); Neeraj Bansal, Chairman, Jawaharlal Nehru Port Trust (JNPT); Robert A Voltmann, Secretary General, FIATA; Debashis Dutta, Past Chairman, FFFAI and Chairman, FWC-2018; and Samir Shah, Mentor, FWC-2018. The Day 2 of FWC-2018 saw quite many interesting sessions. The CEO Forum was followed by Business Sessions on Advisory Body Legal Matters (ABLM); Advisory Body International Affairs (ABIA); FIATA Logistics Academy (FLA) & Advisory Body Vocational Training (ABVT); Customs Affairs Institute (CAI); Advisory Body Safety And Security (ABSS) to ponder on sector specific issues that currently Freight Forwarders and Logistics practitioners are facing globally. In addition, there was a very crucial Session ‘Heart to Heart’ conducted by renowned Cardiovascular and Cardiothoracic Surgeon Dr Naresh Trehan to enlighten the delegates about ways of being healthy despite strenuous and stressful working schedules.

On Day 3, AFI’s Session on Air Freight was the most interesting and learned sessions in the history of FWC. The session was moderated by veteran air cargo personality Snehal Parikh, Member – Board of Advisors, ACAAI, Member, Shipping & Logistics Committee, IMC Chamber of Commerce & Industry. Eminent panelists spoke on this occasion were Vandana Aggarwal, Economic Advisor, Ministry of Civil Aviation, Government of India; Kirsten De Bruijn, Vice President, Cargo Pricing and Interline, Revenue Optimisation, Emirates SkyCargo; Ashwin Bhat, Head of Swiss WorldCargo; Kanishka Agiwal, Head - Travel & Transportation Industry, IBM India Private Limited, Member of IBM Industry Academy; Kapil Kaul, CEO – South Asia & Middle East, Centre for AsiaPacific Aviation (CAPA) and Sam Katgara, Partner, Jeena & Company, India. Other business sessions of the day were - panel discussion titled ‘Disruptions & Opportunities’ related to the Global Air Cargo scenario, Advisory Body Information Technology (ABIT)’s session on Blockchain and AI, and another significant session by Multimodal Transport Institute (MTI). The closing session was addressed by eminent mythologist and author Mr Devdutt Pattanaik who elaborated on relevance of mythology in modern times, especially in areas of management, governance and leadership. OCTOBER 2018 - CargoConnect

upcoming events AUTO CONNECT 2018 - Automotive Logistics Conference Organised by Surecom Media, Auto Connect conference scheduled on October 15, 2018, at JW Marriott, Pune, will bring together all the stakeholders of the Indian automotive logistics industry under one roof, with offering an excellent networking and knowledge sharing opportunity for the attendees. To know more visit www.autoconnect.co.in AIR CARGO FORUM 2018 - TORONTO Three day event scheduled from October 16 - 18, 2018, at Metro Toronto Convention Centre, Canada. Over 4,000 air cargo decision makers and more than 300 exhibitors from around the world is expected to gather at this premier air cargo industry event to network and address current industry challenges and opportunities. To know more visit www.indiawarehousingshow.com Perishables Logistics Africa Taking place on 21 November 2018, at Radisson Blu Hotel, Nairobi, Perishables Logistics Africa will offer its usual and interesting blend of industry leaders debating and deliberating on key challenges and trends, and offering solutions to complex supply chain concerns shrouding the flower, fresh produce and meat industry. To know more visit www.logupdateafrica.com/pla2018 India Cold Chain Show 2018 3 day event being held from 13th December to 15th December 2018 at the Bombay Convention & Exhibition Centre (BCEC) in Mumbai, India. The event will touch every dimension of the cold chain industry bringing to its participants a grand overview of new products, machinery, services, technological advancements and a lot more. To know more visit www.indiacoldchainshow.com PHARMACONNECT 2019 Organised by Surecom Media, PHARMACONNECT 2019 is a one-day conference to be held in Mumbai on January 17, 2019. Dedicated to the pharma supply chain professionals, the conference will offer knowledge sharing & networking, all Under one Roof. To know more visit www.pharmaconnect.in 18th AnNual Cool Chain â&#x20AC;&#x201C; Temperature Controlled Logistics Three day event scheduled from January 28 - 31, 2019, in London, United Kingdom. The event will take all delegates on a journey from planning their temperature controlled supply chain, through the different stages and mode of transport (though difficult regions, various temperature zones, on multiple forms of transport, right through the tricky last mile of distribution and back to re-planning.) To know more visit www.temperaturecontrolledlogistics.com E-COMCONNECT 2019 Deemed to be Indiaâ&#x20AC;&#x2122;s biggest event for e-commerce logistics professionals - E-COMCONNECT 2019, organised by Surecom Media is scheduled on March 24, 2019. The event will offer great opportunity to meet and network with over 200 e-commerce supply chain professionals. To know more visit www.e-comconnect.in 13th World Cargo Symposium Organised by IATA, the 13th annual World Cargo Symposium, to be held at Marina Bay Sands in Singapore from March 12 - 14, 2019, will bring together key stakeholders from the entire air cargo supply chain, with featuring plenary sessions, specialised tracks, workshops and executive summits, tackling aspects related to Technology & Innovation, Security & Customs, Cargo Operations, and Sustainability. To know more visit www.iata.org/events/wcs/Pages/index.aspx

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PEOPLECONNECT Prabal Basu

Chairman & Managing Director, Balmer Lawrie & Company Ltd

a CA who is at the helm of a 150-year-old Logistics company

- Gaurav Dubey

How has the journey been for the company so far? The logistics business including Logistics Infrastructure and Services has been of immense significance for Balmer Lawrie. Presently, during (FY2017-18) it has contributed to 14.37 per cent in the revenues and 21 per cent in profits of the company. The opportunities for growth in this sector are enormous and it will definitely continue to play a significant role in Balmer Lawrie’s overall growth story for the next 10 years and beyond.

How has the industry changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulation, etc? I took over as Chairman & Managing Director of Balmer Lawrie in August 2015. Since then, I have seen the logistics industry evolving at a rapid pace. Customer expectations have changed dramatically over the years and leveraging technology has become a key to meet customer demands. Enhancing customer experience by providing real time visibility of shipments, connecting business

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processes and providing agility and scalability has become imperative. And, technological advances such as the Internet of Things, automated transportation, warehouse robotics and similar futuristic innovations are becoming critical to provide quality services to the customers.

Apart from work, what are your other interests and hobbies? I am a Philatelist and have a good collection of stamps. I enjoy watching cricket, football, formula 1 racing, and listening to music. I also love travelling with my family on holidays.

What is the biggest challenge you have faced in your career? Being a qualified Chartered Accountant, I joined Balmer Lawrie in 1988 in their Finance arm and was entrusted with the responsibility of computerising the company’s manual accounting system. It was a tough situation for me; I faced lot of challenges and agitation while doing this in the late 80s and 90s. However, I was successful in bringing the change and the transition yielded positive results. Implementing SAP in all the businesses of Balmer Lawrie was also a great

challenge for me. As Director [Finance] of the Company, I used to look after the IT function as well and it was during my tenure that SAP was rolled out in Balmer Lawrie.

What is your success Mantra? And, whom you consider as your Guru in the business? I am a strong believer of the principle “Honest hard work always pays.” Talking about guru, it is difficult to identify anyone in particular. It’s just that I have tried to inculcate the good qualities of people around me. In my professional life, I had the good fortune of working with many stalwarts in the accounts & finance department of Balmer Lawrie, which definitely had a positive influence on me.

Which management lesson you would like to give to the ones who aspire to be in this industry industry? It is important to acquire in-depth knowledge in whichever domain you work and there is no substitute to hard work. To be able to survive in a competitive business environment, it is imperative to try and acquire niche skills. CC

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