PAGES 98 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
VOL IX ISSUE XII november 2018 `20
14
India as a global air cargo destination: Not a distant dream
42
Dynamic On-demand Warehousing: Pay only for what you occupy
50
Rising significance of Supply Chain transparency in business
56
Uttar Pradesh: India’s next warehousing destination
Contents
Volume IX • Issue XII • november 2018
Publisher/Editor Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Gaurav Dubey Correspondent Upamanyu Borah
42
26 COVER STORY
Best warehousing practices to augment efficiency
SPECIAL FEATURE
Dynamic On-demand Warehousing: Pay only for what you occupy
focus
Director Ajeet Kumar Marketing Managers Parminder Singh Rahul Arora Asst Manager Marketing Mehuli Choudhury
India as a global air cargo destination: Not a distant dream ...............................14
INTERVIEW
Marketing Executive Akash Gupta Managing Director, V-trans (India) Limited .....66
Mahendra K Shah
Accounts & Administration Nitish Kumar
Yoann Maugran
Sr Designer & Visualiser Shaique Ahmad
Ross Thompson
Designer & Visualiser Mayank Bhatnagar
Cargo Sales Manager, Paris-Vatry Airport .......68 Chief Commercial and Strategy Officer, Abu Dhabi Ports ..................................................70
FEATURE
FRONTLINE ..........................................................6 Hub ....................................................................11 BUZZ .................................................................12 GUEST COLUMN .................................................72 Rising significance of Supply Chain transparency in business .......................50
Startups ...........................................................74 Technology .....................................................75
infrastructure
NEWS ..........................................................76-87 PROFILE ............................................................87
Utt
ar
Pra d
esh
APPOINTMENTS ................................................88 EVENTS .......................................................90-93 UPCOMING EVENTS ...........................................94
Uttar Pradesh: India’s next warehousing destination....56
PEOPLECONNECT Cyrus Katgara
Partner, Jeena and Company .......................................96
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.
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FRONTLINE The shipping ministry will review the cabotage policy next year and introduce changes if Indian shipping lines have been adversely affected in the intervening period”
India’s exports declined for the first time in the current fiscal, with shipments contracting 2.15% in September to $27.95 billion
Nitin Gadkari Union Minister for Road Transport, Highways and Shipping said at an event in Mumbai
warehousing sector in Bengaluru The
India is the ‘worst sufferer’ of declining trade and slow global economic growth as the country has a huge stake and its share in world trade is rising.” Suresh Prabhu Commerce and Industry Minister, Civil Aviation said at an Assocham event
is witnessing a noticeable shift toward an organised market and the demand is primarily being driven by the IT city’s growing e-commerce sector, said a recent report published by workplace solutions firm Vestian Global
We are striving for 100 per cent electrification of the Railways. This will cut down our imports of fuel, and result in using electricity made from domestic and renewable energy sources.”
Piyush Goyal, Minister of Railways and Coal
There are both opportunities and challenges, both for us. We can increase our engagement with the US as also China, seeking to occupy the markets which would be vacated in the midst of the ongoing mutual tariff increases by both the top two economies.” said Ravi Sehgal, Chairman, EEPC India
6
CargoConnect - november 2018
Pointing out that none of its demands have been met almost three months after an assurance from the government, All India Motor Transport Congress (AIMTC) has said it will decide on launching an indefinite strike after Diwali
Hub Projects worth 2.35 lakh crore under Sagarmala in Maharashtra alone
U
nion minister Nitin Gadkari has said that the shipping ministry is planning to undertake works worth `2.35 lakh crore under the Sagarmala project in Maharashtra.
Eight projects entailing investment of `5,384 crore have already been completed, while 45 others involving investment of `27,000 crore are in various stages of implementation, he said.
Projects worth over `1.50 lakh crore are in various stages of implementation, while the work on remaining `85,000 crore-worth projects is yet to begin.
The minister did not offer details of all the works being undertaken, but said the figure includes `1 lakh crore for waterways development.
Work on these remaining projects, starting with preparation of detailed project reports, will be initiated soon, Gadkari said while speaking at the inauguration of a premium passenger ship service to Goa, which is being restarted after a gap of nearly three decades. Overall, departments including shipping, ports, roads and waterways will be spending `7.5 lakh crore in Maharashtra.Gadkari said initially the estimates of spend on various projects in the state were in the range of `5 lakh crore, which have now gone up to `7.5 lakh crore.
At least five rivers in the state feature in the list of over 100 rivers where water transport potential will be exploited, he added. Gadkari also said that he had a meeting with a Russian deputy prime minister who assured India to deploy ethanol-powered “watercrafts� in the Ganga river. An Indian company has forged a joint venture with Russian firm United Ship Builders for this, he said.
Port Blair airport to get a new terminal building
T
he Port Blair airport, officially known as Veer Savarkar Airport, will have a new terminal building very soon, Airports Authority of India (AAI) officials said.
A world-class terminal building is coming up at the airport at an estimated cost of `417 crore, the AAI officials claimed and the deadline is 2020. The director of Port Blair airport, George D Silva said that work on the project commenced on January 14, 2017 and the construction work is progressing as per schedule. The built-up area of the new terminal will be 40,000 square metres and it will be able to handle 1,200 passengers -- 600 domestic and 600 international passengers-- at a time during peak hours, he said. The shell-shaped design of the building has been inspired by nature - a shape which is a part of the seas and islands, Silva said. The height of the terminal building’s roof would vary between
between 18 metres and 32 metres. The building will have three floors. While one floor would be used as departure and as service area, the other floors would be used for access to the terminal building and for arrival of passengers, and as waiting lounge for international passengers. The airport will have four aerobridges. The new building will have 10 elevators and six escalators, Silva said. There will be 28 check-in counters. An in-line scan system would be used for handling baggage. There will be three conveyor belts arrival baggage, two for domestic and one for International separated, which will be separated by a sliding glass partition. The building features easy check-in, ease of movement to departure gates and minimum queuing as well as nice waiting and shopping areas, Silva added. The entire terminal will have 100 per cent natural lighting for 12 hours a day which will be achieved by skylights along the roof. november 2018 - CargoConnect
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buzz
Cochin Shipyard chalks out biggest expansion with 1,799-cr dry dock
C
ochin Shipyard Ltd, India’s biggest state-owned shipbuilder by dock capacity, will start work on a `1,799 crore new dry dock, its third, as the Mumbai-listed firm looks to expand capacity to tap potential for constructing and repairing specialized and technologically advanced large vessels including aircraft carriers. Along with `970 crore international ship repair facility being developed at next door Cochin Port Trust, Cochin will turn into a one stop maritime hub for repairs of all vessels calling at Indian ports, chairman and managing director Madhu Nair informed. The new dry dock will generate employment opportunities for about 2,000 people (direct and indirect) in the core shipbuilding and ancillary and supporting industry sector. Besides, it will help develop a strong ancillary base in the country for ship building, promote adaption of world class technology and shipbuilding skills and training of youth, he said. Kerala Chief Minister Pinarayi Vijayan and Union Shipping Minister Nitin Gadkari will break ground for the new dry dock – the second largest in India and the
12 CargoConnect - november 2018
largest and more dynamic amongst its three docks in terms of ships docked. The mini-ratna PSU said that the new dry will contribute towards the target of increasing India’s share of the global shipbuilding industry to 2 per cent from 0.4 per cent. Cochin Shipyard sold shares in an initial public offering (IPO) in August 2017 to part-fund a `2,769
The new dry dock will help Cochin diversify its product portfolio to build large, complex and technology intensive vessels such as LNG vessels, jack up rigs, drill ships, dredgers, a second indigenous aircraft carrier of much larger capacity than the one it is building for the Indian Navy, high end research vessels and repair of offshore platforms and larger vessels
crore expansion plan comprising construction a `1,799 crore new dry dock and a `970 crore international ship repair facility. The new dry dock would be a ‘stepped’ dock with a length of 310 m (the existing dry docks have a length of 270m), width of 75m at the wider part and width of 60m at the narrower part and depth of 13m with a draught of up to 9.5m.
It will be equipped with one 600ton capacity gantry crane, two LLTT cranes each with a capacity of 75 tons with an option to add another 600-ton gantry crane at a later stage. The dock floor is designed to take a load of 600 ton/m. The stepped dock will enable longer vessels to fill the length of the dock and wider, shorter vessels such as jack-up rigs to be built or repaired at the wider part. The new dry dock will help Cochin diversify its product portfolio to build large, complex and technology intensive vessels such as LNG vessels, jack up rigs, drill ships, dredgers, a second indigenous aircraft carrier of much larger capacity than the one it is building for the Indian Navy, high end research vessels and repair of offshore platforms and larger vessels. The new dry dock can accommodate aircraft carriers of 70,000 tons docking displacement and tankers and merchant vessels of 55,000 tons docking displacement. Larsen & Toubro Ltd was awarded the turnkey contract for the new dry dock for `1,298.76 crores, which is expected to be completed by May 2021. CC
november 2018 - CargoConnect
13
focus
India as a global air cargo
destination
Not a distant dream
14 CargoConnect - november 2018
focus
The Indian Aviation Sector underwent liberalisation in the late 90s, and since then, it has seen a flurry of private service airlines entering the industry and, currently, is considered a sector of highly untapped potential. Emerging as one of the fastest growing air cargo markets globally, India presents abundant opportunities for industry operators willing to invest in one of Asia’s economic powerhouses. Upamanyu Borah analyses facts and figures after speaking to industry experts, with evaluating the real status of the air cargo industry in India.
Overview Amidst challenges, the Indian air cargo sector throws innumerable opportunities. However, in order to ensure smooth flow of air cargo it is critical to enhance safety, improve security, strengthening the value proposition of air cargo, driving efficiency through global standards, improving quality, strengthening partnerships, and building sustainability. Also, growth in E-commerce and government initiatives is expected to boost the air cargo business in India. Soaring the skies In November, 2017, Air France-KLM and Jet Airways signed an “Enhanced Cooperation Agreement” for improving their operations between Europe and India. The agreement will see Jet Airways, India’s second largest airline by revenue, and Air France-KLM working together to develop their commercial and product offerings.
november 2018 - CargoConnect
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focus Besides passenger growth, the European carrier and Amsterdam Airport Schiphol speculated that this alliance can help them explore the cargo potential of India. Bart Pouwels, Head of Cargo at Amsterdam Airport Schiphol (AMS), detailed on the benefits of the tie up, “With the expansion of the joint venture KL-9W we expect more direct flights between two nations. That gives us more cargo capacity. Recently 9W introduced a direct service between Bangalore and AMS. From AMS, this makes a weekly total of 14 flights to Delhi, 10 flights to Mumbai and 7 flights to Bangalore.” “India is one of the main regions of pharma manufacturers for the EU and US markets. The network of KLM and Jet Airways is a perfect answer to the needs of the pharma industry to deliver a fast and reliable service with temperature controlled solutions,” he added.
year in a row, driven by economic and network expansion,” the report said. Also, in December 2017, India registered the highest growth rate of 17.4 per cent
“India is one of the main regions of pharma manufacturers. The network of KLM and Jet Airways is a perfect answer to the needs of the pharma industry to deliver a fast and reliable service with temperature controlled solutions.” Bart Pouwels
Head- Cargo, Amsterdam Airport Schiphol
Alexander Arafa, Head - Cargo Area & Contribution Management, Swiss World Cargo talks about the rising business collaboration between the two countries. “We offer daily flights to Mumbai and New Delhi from Zurich, served with an A330 aircraft, which offers a payload of approximately 19 tons, offering a monthly inbound and outbound capacity of 550 tons. Our steady performance over the years has placed us in top 15 slots out of Mumbai and New Delhi airport.”
“We offer daily flights to Mumbai and New Delhi from Zurich, served with an A330 aircraft, which offers a payload of approximately 19 tons, offering a monthly inbound and outbound capacity of 550 tons.”
Many Indian carriers have embarked on ambitious expansion plans and local airlines have placed orders for over 900 aircraft. Since late 2014, lower airfares have helped in boosting passenger growth -- which in 2017 was also supported by broad-based pick-up in global economic conditions. Latest Airbus India Market Forecast reveals that India will require 1,750 new passenger and cargo aircraft over the
India, one of the prominent export global hubs for pharma is now considered as one of the world’s global players with the size of the market expected to reach more than $85 billion in 2020 next 20 years to meet an exponential rise in both passenger and freight traffic. It also points out that to help meet this anticipated growth, India will require 1,320 new single-aisle aircraft and 430 wide-body aircraft valued at $255 billion.
“Make in India is at the heart of our strategy. Airbus has the largest footprint Growth of civil aviation traffic in India in India of any International aircraft “The domestic India market posted the manufacturer, nationwide across all Alexander Arafa fastest full-year growth rate for the third aircraft programmes. Our sourcing Head- Cargo Area & Contribution year in a row (17.5 per cent), followed by volume has grown 16 times over the Management, Swiss World Cargo China (13.3 per cent),” the International past 10 years and it is currently at more Air Transport Association (IATA) said in than $550 million annually,” informs a report earlier this year. “India posted the fastest domestic Srinivasan Dwarakanath, President - Airbus Commercial Revenue Passenger Kilometres (RPK) growth for the third Aircraft in India.
16 CargoConnect - november 2018
focus “India is set to become the world’s third largest aviation market by 2019-20 and Airbus is well positioned to partner its growth with backlog orders of over 530 aircraft to date, the statement divulged,” added Dwarakanath.
“The Airports Economic Regulatory Authority of India (AERA) Act to have provisions for new tariff models for airports as well as change the definition of major aerodromes.” Guruprasad Mohapatra
Chairman, Airports Authority of India
“The fast-paced growth of Indian aviation has been highly driven by the country’s strengthening economy, high passenger demand, technological development, and visa reforms. However, the progress over the next 12 months will be determined by the way in which some of the key issues affecting aviation are addressed along with the challenges the industry will face,” said Essa Sulaiman Ahmad, Vice President – India & Nepal, Emirates. Looking at the current scenario, development of airport infrastructure and fostering a healthy competitive industry landscape are the two areas that present significant opportunity for Indian aviation. The right policy frameworks and stewardship in these two areas will propel aviation as a real force for India’s economic growth and development opening new avenues for tourism, trade and investment, and ultimately benefitting Indian consumers.
“The single window clearance means, it is all on one platform and that the dwell time for both imports and exports have to come down. What we understand now that the dwell time in practice has come down from 72 hrs to 48 hrs.” Binaifer F Jehani
Director, Crisil Research
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As a long-term strategic partner for India, Emirates is committed to future investment and expansion in the market in support of India’s 2020 growth target of 85 million international passengers a year, and to assist India in its goal to be the world’s third largest aviation market by 2020. We are confident that with increased capacity and technological developments, Emirates can contribute even more to India in the years to come, Ahmad informed. Freight growth rises Global analytical company Crisil has predicted a growth rate of 14-15 per cent in FY18 for the Indian air cargo segment against the 12 per cent growth
in FY17. It’s for both domestic and international combined. Binaifer F Jehani, Director, Crisil Research, opined that the National Civil Aviation Policy 2016 paved the way for single window clearance and that step, Jehani believes has been taken in the right direction. “Clearly, the single window clearance means, it is all on one platform and that the dwell time for both imports and exports have to come down. What we understand now that the dwell time in practice has come down from 72 hrs to
Fast-paced growth of Indian aviation has been highly driven by the country’s strengthening economy, high passenger demand, technological development, and visa reforms. However, the progress over the next 12 months will be determined by the way in which some of the key issues affecting aviation 48 hrs. In other words, it means that air cargo becomes much more competitive in comparison to other modes of transport,” she adds. According to Hemal Shah, Director of International Policy, U.S. Chamber of Commerce’s Global Innovation Policy Center (GIPC), airfreight has seen a consistent rise over the years and there’s more reason to believe that this sector will see rapid growth in the coming years. “The CAGR for total domestic freight traffic was recorded at 7.6 per cent (FY 2006-16) and 4.8 per cent in the international sector for the same period. The impending e-commerce boom, passage of the GST, impetus from “Make
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focus Factors affecting the aviation fuel demand in India An Indian push to connect more cities via airports as an expanding middle class increasingly takes to the skies is set to help propel the country’s demand for jet fuel to record highs this year.
in India,” India’s rise on the World Bank’s Logistics Performance Index, and ratification of the WTO Trade Facilitation Agreement has positioned this sector favourably. The government also plans to increase the number of operational airports - including unused airstrips and underused airports - to 250 by the year 2020,” she informs. Dieter Hulick, Spokesman - Traffic & Terminal Management, International Media, Fraport AG, feels that in general, more opportunities will arise for Indian air carriers as international cargo flow might be rerouted from non-Indian to Indian cargo airports. As a result, jobs will be created in India and competitiveness of Indian products (‘Made in India’) in the global marketplace will increase (automotive, apparel, pharma, etc).
“The impending e-commerce boom, passage of the GST, impetus from “Make in India,” India’s rise on the World Bank’s LPI and ratification of the WTO Trade Facilitation Agreement has positioned this sector favourably.” Hemal Shah
Director International Policy, U.S. Chamber of Commerce’s, GIPC
“India is an interesting market for us, we are observing growth of the Indian market and are seeking close contact to the industry,” he adds. Oleg Orlov, Antonov Company’s Vice President voices his opinion on how the socio-political factors influence the bilateral relations regarding cargo handling between both the countries.
“As a producer of a wide range of project cargo, India is an excellent market for the Antonov Airlines (and indeed Antonov Company as a whole) and, we look forward to an ever-closer relationship with India.”
Average monthly demand for jet fuel could break through 700,000 tonnes this year, up from 2017’s record 623,000 tonnes and from 566,000 tonnes in 2016, several industry analysts estimated. That would be an annual growth rate of around 12 percent, comparable to what China achieved during its main boom years in the early 2000s.
All parties from our countries involved in air cargo can freely discuss ideas and the most cost-effective solutions. As a producer of a wide range of project cargo, India is an excellent market for the Antonov Airlines (and indeed Antonov Company as a whole) “The country’s air transport sector has huge potential to grow in the long-term given its large geographical expanse and growing consumer affluence,” said Sri Paravaikkarasu, Analyst at energy consultancy FGE.
“India and Ukraine have historically an excellent relationship, and it is very good to see this continuing. With such a stable backdrop, all parties from our India used 2.02 million tonnes of aviation countries involved in air cargo can freely fuel from January-March this year, up discuss ideas and the most cost-effective 9.4 per cent from a year earlier, the latest solutions. As a producer of a wide range of government data showed. Meanwhile, Oleg Orlov project cargo, India is an excellent market FGE forecasts a 10.5-percent year-on-year Vice President, Antonov for the Antonov Airlines (and indeed increase in Indian demand for jet fuel in Antonov Company as a whole) and, we 2018, while energy consultancy Trifecta look forward to an ever-closer relationship with India.” expects growth of 12-15 per cent.
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focus That rapid growth in appetite for aviation fuel means the country’s refiners are far less likely to send cargoes abroad, tightening markets from Asia to Europe. To deal with rising consumption, India’s refineries are expanding.
“More opportunities will arise for Indian air carriers as international cargo flow might be rerouted from non-Indian to Indian cargo airports. As a result, jobs will be created in India and competitiveness of Indian products (‘Made in India’) in the global marketplace will increase.”
Outlining the derivatives, Alexandre de Juniac, IATA Director General and CEO said, “The reason for this is that the taxation structure on airlines is much higher than those faced by most airlines across the globe. In other words, Indian airlines are hit harder by the taxation than any other global airlines. We are
Spokesman Traffic & terminal Management, International Media, Fraport AG
Alexandre de Juniac
Director General and CEO, IATA
22 CargoConnect - november 2018
“The wide variation in airport tariffs creates challenges for domestic and foreign airlines that have to recover the same from passengers,” asserted Guruprasad Mohapatra, Chairman, Airports Authority of India (AAI). On July 18, the government introduced a bill in the Lok Sabha that seeks to amend the Airports Economic Regulatory
Government agencies project that around 500 Brownfield and Greenfield airports would be required by 2020. The private sector is being encouraged to become actively involved in the construction of airports through different Public Private Partnership models, with substantial state support in terms of financing, concessional land allotment, tax holidays and other.incentives.
Dieter S. Hulick
“Indian airlines are hit harder by the taxation than any other global airlines. We are requesting the Indian government to lower taxation on fuel and various other taxes associated with the sector.”
Many more airports are expected to be operational in the coming years, especially with rising air passenger traffic and infrastructure woes at some of the existing major aerodromes.
requesting the Indian government to lower taxation on fuel and various other taxes associated with the sector.” Recent policy reforms by the Government The government plans to have a predetermined tariff structure linked to inflation for airports as it seeks to address issues hindering investments in the fastgrowing Indian aviation sector. Currently, there is cost plus tariff structure wherein the rates for an airport are determined every five years, which is known as the concession period.
Authority of India (AERA) Act to have provisions for new tariff models for airports as well as change the definition of major aerodromes. The AERA is an independent economic regulator for protection of interests of airports, airlines and passengers. About the proposed changes in the Act, Mohapatra said the government plans to correct the anomaly of wide variations in airport tariffs. “This is proposed to be done by shifting ‘to a pre-determined tariff structure which
focus would be indexed to inflation during the concession period.’ The current cost plus tariff structure involves a long drawn tariff determination process every five years with adjustments on annual basis, Mohapatra further added. Juniac informed that the Indian government needs to reduce taxes that are levied on airlines. Aviation turbine fuel (ATF) should be brought under the GST (Goods and Services Tax) regime. We have suggested several ideas and solutions to the Indian government as we discussed the issues faced by airlines here. I found the government very open to the suggestions. “The government will need to take the right decisions on taxation, building the appropriate infrastructure, and set up the right regulation, which will be a boost up to the industry instead of being a barrier or constraint (to its growth). But, all over the world, decisions on taxations by government doesn’t always come quickly. The federal structure of India adds to complexity as parts of taxes go to state. But, we hope ATF will eventually come under GST,” mentioned Juniac. A destined epilogue The fast-paced growth of Indian aviation has been highly driven by the country’s strengthening economy, high passenger demand, technological development, and visa reforms. However, the progress over the next 12 months will be determined by the way in which some of the key issues affecting aviation are addressed along with the challenges the industry will face.
propel aviation as a real force for India’s economic growth and development - opening new avenues for tourism, trade and investment, and ultimately benefitting Indian consumers.
“As a long-term strategic partner for India, Emirates is committed to future investment and expansion in the market to assist India in its goal to be the world’s third largest aviation market by 2020.” Essa Sulaiman Ahmad Vice President – India & Nepal, Emirates
“We are already seeing movement towards developing airport infrastructure across the nation -- be it the civil stations or cargo operations -- and the reinvigoration of existing secondary airports under the regional connectivity scheme (RCS). In the recent past, we have witnessed opportunities of new flight options by an array of foreign carriers. The market has also benefitted from the network expansion of Indian carriers which today represent Indian
Government will need to take the right decisions on taxation, building the appropriate infrastructure, and set up the right regulation, which will be a boost up to the industry instead of being a barrier or constraint (to its growth). “India is set to become the world’s third largest aviation market by 2019-20 and Airbus is well positioned to partner its growth with backlog orders of over 530 aircraft to date, the statement divulged.”
aviation in a much stronger way - adding non-stop flights to global destinations and competing head-on with foreign carriers. This has also resulted in average airfares decreasing and offering passengers with more options than ever,” affirmed Ahmad.
Certainly, recent study forecasts the cargo movement to grow between 9 to 10 per President - Airbus Commercial cent over the next five years indicating a Aircraft, India Looking at the current scenario, healthy growth. Besides, India’s domestic development of airport infrastructure aviation sector has been growing and fostering a healthy competitive significantly, with air passenger traffic industry landscape are the two areas that present registering double-digit growth for more than three years. significant opportunity for Indian aviation. The right This definitely leads to the fact that India is going to be the policy frameworks and stewardship in these two areas will next hot destination. CC
24 CargoConnect - november 2018
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cover story
Best
warehousing
practices to augment efficiency
India’s warehousing sector is changing rapidly, and opting for best practices in warehousing has become the need of the hour for the logistics service providers to ensure faster turn-around-time from their warehouses. In this feature, we talk about the present-day best warehousing practices that helps enhance productivity, inventory management, better space utilisation, and use of latest technology that takes efficiency to an overall next level. Gaurav Dubey
26 CargoConnect - november 2018
cover story
W
arehousing industry has become significantly complicated due to SKU proliferation, rise of e-commerce and increase in customer demands. As warehousing organisations are looking for new ways to face present day challenges and dynamic shift in trends, many are looking to adopt ways to optimise and automate for increasing efficiencies. Organisations have been relying on the traditional methods of warehousing since years now, however automation make companies unsure about the point of start. It’s simple to improve warehouse operations with the adoption of good warehousing practices. Redesigning of existing facilities, consolidation of disparate facilities, optimisation of picking process with automation and
november 2018 - CargoConnect
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cover story “We at HTL believe that the best warehousing practices are the one which provide “real” time data with a minimal human intervention, as this helps our clients to proactively plan their productions and other related activities.”
Reyaz Farook Chairman and CEO, HTL Group
keeping technologies up-to-date are some of the key steps which could help companies in optimisation of their warehousing facilities and at the same time it will also skyrocket the level of operational efficiency in a warehouse.
Tech disruption Technology has drastically altered the retail landscape and it’s forcing many retailers for relooking on their business strategies. Customisation is emerging at a huge level without significant increase in warehousing, storage and shipping costs. Technology is growingfor virtual services – which enables a product to be viewed and manipulated in a virtual environment. It provides in-store experience of purchasing to customers who come from digital medium for buying. Many leading retailers are already reaping huge benefits from social media platforms. Retailers today have an opportunity to either disrupt their markets or to be disrupted by more innovative and agile competitors. In future there will be fully autonomous vehicles which can respond accurately to their environment and wouldn’t require any human intervention. Mobile technology has been a part of warehouse operations for over a decade with the use of RFID and handheld barcode readers. However, this technology has evolved and it now includes a plethora of new devices.Tablets and smartphones are increasingly becoming the mobile devices of choice that allow a person to conduct various warehouse operations remotely and efficiently. Mobile devices also bring the advantage of being cost-effective and are familiar to users, which helps in lowering the training costs and enables widespread adoption amongst the users.
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Internet of Things or IoT is expected to be the next big thing in warehouse operations. Sensors and data-communication technology can be built into warehouse components like conveyors and other physical equipment. IoT connects these sensors and data-communication technology to the Internet, thus allowing collecting and analysing important data. It enables the physical devices to be tracked, traced, coordinated and controlled within a warehouse and through a supply chain, up until it reaches the customers. Cloud-based solutions were not prominent for a long time in warehouse operations. One of the challenges was that most operations were mainly carried out in the warehouse only, which meant that there was little or no need to access Warehouse Management System (WMS) from mobile devices remotely from anywhere else. Facility of ‘access from anywhere’ was the main reason why companies implemented the cloud technology; it held little appeal for WMS applications. However, this idea is changing with experts agreeing that cloud could make its presence felt in warehouses in the near future, especially for smaller warehouse operations as it has a low cost of ownership and small IT footprint. Identification of right level of automation and systems is strategic. Wrong material handling equipment can lead to hidden lost time and inefficient product flow which ultimately impact both cost and customer service. In present scenario, success in this business is no longer dependent on
cover story “Implementation of 5S methodology of warehouse management, regular cycle counting, ABC analysis and ageing analysis of the stocks are some of the best warehousing practices.”
K Chandramohan Chairman & Managing Director, NTC Logistics India Pvt. Ltd
only having a great warehouse. Now, success depends on how well the warehouse is contributing in building an efficient supply chain. Robotics has been playing an important role and will continue to play its part in automation in near future as well in bigger warehouses of post GST period.
Below are a few scrum methodology best practices to boost efficiency in a Warehouse – Identify fast moving SKUs Some SKU’s move faster than other. Consistently review SKU velocities and relocate SKUs that have moved from fast to slow, or vice versa. Ensure fast moving, popular SKUs are kept in an accessible and ergonomic location (end of aisle at waist height). Consider storing SKUs frequently picked together as a kit.
Labor management Calculate the cost of labor to ensure a true cost balance in your operations. Are you constantly putting more bodies in your picking system? Spending too much money on worker comp claims? An investment in automated storage can reduce the amount of people you need in your picking operation, allowing you to reassign them elsewhere.
Zone to zone planning Order totally travels from zone to zone for fulfillment. Each picker works to fill SKUs only in their zone, passing the order tote to the next zone when completed. Once the order has gone to the last zone, it reaches shipping and is sent out for delivery. To add to your productivity gains, pick the orders into a shipping container, so these orders can be labeled and put onto a truck once picking is complete.
Parallel picking In a parallel picking strategy, pickers are assigned to a specific zone and they are responsible for picking the SKUs in their assigned zone. Each zone picks the SKUs required from their zone simultaneously
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(in parallel). Once the SKUs from the zone are picked, they are sent to a consolidation area where SKUs from each zone are married up to complete the order. This strategy allows for more orders to be picked at one time, speeding up order fulfillment.
Prioritise replenishments Every team needs someone ready to step in, which is why your warehouse should prioritise replenishment. Prioritise it to reduce short picks and to reduce overflow in the receiving area. Instead of leaving new product at the receiving door, find times for your operation to fit replenishment in throughout the day. This will eliminate sending out orders which are short a part or two, when in fact you had those parts in your facility the entire time!
Grouping Inventory Group inventory (by SKU velocity or size) and match SKUs to proper storage method. Perhaps some bulky, fast moving goods; that might belong on shelving in a front pick zone. Whereas small sized, medium movers might belong in automated storage technologies. Matching SKUs to the proper storage method is only going to improve warehouse efficiencies.
Theft prevention Deploy inventory control to prevent theft and misplaced SKUs resulting in part shortages. Using inventory management software to monitor transactions, posting cameras in open rack and shelving areas and simple locks on cabinets and drawers can save you in the short term and in the long run. For high monetary value SKUs, consider using RFID to track down their location and find the culprit.
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cover story “The next game changer, I believe will be Blockchain and Artificial Intelligence. More real time data, automated inward and outward, automated pick and pack and classified returns management will be the disrupters in warehousing business.”
Rishi Singla Director, Jhanu Logistics Limited
LIFO & FIFO process Implement an inventory handling process which best fits your business practices. Common practice is FIFO, or “first in, first out”, but it is not necessarily for everyone. Most often, FIFO is beneficial for companies looking to rotate their inventory so the goods stored don’t expire or reach end of life before they are used. However, LIFO, “last in, first out”, works well in certain environments.
Plan smartly Don’t be spontaneous when it comes to your facility! Learn to become a planner when it comes to your business. Plan for flexibility and scalability. Investing in racks of shelving today might make sense today. But 5 years from now, you might find your product line changing or you downsize due to a new lean process. All that shelving isn’t necessary now is it? Have long term plans and goals so you can accommodate future growth easily, without a major headache or lastminute investment.
Utilise elevated space Look up – you see the unused ceiling height? That’s wasted money. Consolidate your overall footprint and maximise your square footage by implementing automated storage and retrieval systems. Vertical Lift Modules (VLM) and Vertical Carousels utilize the floor to ceiling height recovering up to 85 per cent of otherwise wasted floor space.
Go with the Flow Review the facility flow to make sure it flows in one direction from receiving, to stocking, to picking to shipping – you don’t want people wasting time zig-zagging from area to area. Once you find the flow which makes sense for your facility, you’ll be running in tip top shape.
Plan forklift lanes Smartlymake way for the forklifts in a warehouse. Design your facility with enough aisle space for forklifts to travel easily. However, don’t
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give them too much room or you’re wasting valuable space. Find the “just right” spacing to be productive but not wasteful.
Optimise space Are you making the best use of every square foot you’re paying for? Consider the benefits of implementing high density dynamic storage and retrieval technologies to consolidate your storage areas and recover wasted space, expanding your footprint without a brick and mortar expansion.
Illuminated picking For an illuminating approach to picking, Pick to light technologies can show the way. Pick to light technologies direct pickers to the exact location of the SKU for increased accuracy. Light-directed technologies take the guessing out of picks or puts. Lights can pinpoint a location to pick from, or tell the exact SKU number and quantity to pick, eliminating picking errors and increasing accuracy to 99.9 per cent.
Manage mis-picks We all make mistakes but it’s important to know how to recover. Mis-picks cost time and money, and can damage your company reputation. Consider implementing automated storage and retrieval systems integrated with light-directed picking features which can eliminate human error.
Use signage The proper signage and labels can keep your warehouse moving forward. To direct people and stay organised, make sure your signage is clear and easy to understand. In addition, consider posting floor maps to provide additional information for visitors. This can help
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cover story “Today order fulfilment time from an e-commerce distribution center has come down to one hour. Such fast turn-around-time requires high accuracy and efficiency, which is not possible without automation.”
Vikash Khatri Founder, Aviral Consulting Private Limited
Tracking by serial Track high dollar or sensitive items by serial, lot and batch number throughout the receiving, stocking and picking process. This is especially important for the medical device manufacturing industry for example. When picking a knee replacement, it is important to know which serial, lot and batch number is in each order in case of a recall.
you avoid accidents and major cleanups. (Warehousing best practices – content courtesy – Ms Chelsea Tarr) Get In the (Golden) Zone Reduce bending and reaching by organising products in the golden zone, the area between the waist and shoulders. This improves worker ergonomics, increases picking productivity and reduces employee backaches.
Minimise product touches Take a look at your processes to determine where you can improve. Minimise product touches, reduce wasted steps and re-allocate the time spent doing these activities elsewhere for a more productive outcome.
Linking systems together WMS, WCS, ERP – it’s all gibberish but when you link the systems together real data starts to emerge. Gain real time insight into your entire operation by connecting data across multiple platforms, so you can start making data driven operational decisions.
Go Paperless No one wants to manage paper pick list anymore – it’s tired, old fashioned and error prone. Reduce or eliminate paper whenever possible, using technology for a mobile and environmentally friendly worker experience.
Lost and Found Use traceability to determine the exact part accessed by an operator with a time stamp. Using inventory management software, it’s possible to monitor AS/RS operators as they pick parts. This traceability is important for industries who use tools in CNC machines for example. They are able to determine when a tool was picked from a unit and what person took it in case they need to track down this particular tool.
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cover story “Implementation of technology like barcoding and RFIDtagging items that are traversing across the warehouse accurately helps staff in tracking their location and remaining stock, which in turn expedites the process to a great extent.”
Stuart Scott Director, Enterprise Mobility and Solutions Marketing APAC, Zebra Technologies
Industry stakeholders’ suggestive ways to drive efficiency Reyaz Farook, Chairman/CEO, HTL Group holds the view that providing real time data to clients certainly add value in their business. He says, “We at HTL believe that thebest warehousing practices are the one
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which provide “real” time data with a minimal human intervention, as this helps our clients to proactively plan their productions and other related activities. We work on providing data and information which is accurate and meets our clients’ requirements.”
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He continues, “We have a robust Warehouse Management System (WMS) which helps our clients to work efficiently. Majority of clients also look at that the service provider uses client’s WMS, which we also undertake as this helps us and them to maintain data integrity. Our WMS is ably supported by Hand held Scanner by which data is seamlessly transferred from one activity to other.” On being asked about the significance of Collaborative Robots (Cobots) in the warehouses, Farook says, “Cobots have been very successful and in the upcoming time it would be proven as an excellent resource for the Logistics industry. As far as the question of replacement of human workers by Cobots is concerned, the future will only tell about its implications.” Implementation of 5S methodology of warehouse management, regular cycle counting, ABC analysis and ageing analysis of the stocks are some of the best warehousing practices, informs K Chandramohan, Chairman & MD, NTC Logistics India Pvt Ltd. On the technology front Chandramohan adds, “we use conveyor systems for material flow, dynamic space allocation with location matrix, barcode systems and RFID technologies. For the safety of inventory, we have installed CCTV cameras and fire safety systems including hydrant, sprinkler and alarm systems.
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cover story “Automation of warehouse processes helps in eliminating errors, reducing touch points, checking pilferage and auditing inventory real-time. Three to five years from now, warehouses would become more agile, dynamic, smart and will be guided by algorithms.”
Akash Gupta Co-founder and Chief Technology Officer, GreyOrange
“Cobots can be used in the picking process, packing and standardised kitting activities where the volume is very high, which are repetitive in nature and require high degree of accuracy. They are extremely useful where there are high possibilities of human error due to repetitive nature of work and slow down due to human fatigue and error.” Rishi Singla, Director, Jhanu Logistics expresses that it is very important to get to the basics and take care of the smallest operational process and details. Some elements that would bring in more efficiency are:
Warehousing practices are changing, especially post evolution of e-fulfillment centers there has been a phenomenal change. Decade back, turnaround time or order fulfillment time from a warehouse was measured in days, later it converted to same day dispatch and then to hours
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• Utilise Cross Docking • Make maximum utilisation of vertical space • Every movement should be recorded as a transaction • Use dynamic slotting if possible • Workplace safety protocols should be adhered without any deviation • Open communication at all steps • Maximise automation for data collection and process outcomes For warehouse automation, Singla believes that it all depends on the scale, product and collaborative approach of the product and dynamics of operations. He says, “Technologies like RFID, Barcoding, and ColourCards still work fine for a lot of products and operations. But with the advancement of technology, Robotics and Artificial Intelligence would play a major role. Efficiency and benefits could be reaped by utilising these technologies in a warehouse.
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cover story “The future warehouses will be better aesthetically designed, there would be ample height so that vertical space could be used more efficiently, smoother flooring to enable greater load bearing capacity, grid structures to comply with international storage/binning requirements and wider setbacks for better traffic movement.”
Jasmine Singh Senior Executive Director (National Head – Logistics Services), CBRE
“As the world is progressing towards e-commerce and direct ordering system, more and more small deliveries have been increasing nowadays. With many tax reforms, technology advancement like Blockchain and access to online marketplace, Cobots is the future for India. If taken in good spirit, Cobots will complement humans and more efficiencies and real time functional goals could be achieved. I strongly believe that technology is a key ingredient to manage smooth and efficient warehouse operations.”
“Our practices like close monitoring of available space, inventory, equipment, technology for e.g. WMS and EDI and standardisation of processes keep productivity high.”
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“The warehousing industry is changing at a very rapid pace. The operations methodology has become more automated and robust. The next game changer, I believe will be Blockchain and Artificial Intelligence. More realtime data, automated inward and outward, pick and pack and classified returns management will be the disrupters in warehousing business,” concludes Singla. Agreeing with Singla, Vikash Khatri, Founder, Aviral Consulting Private Limited says, “Warehousing practices are changing, especially post evolution of e-fulfillment centers there has been a phenomenal change. Decade back, turnaround time or order fulfillment time from a warehouse
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was measured in days, later it converted to same day dispatch and then to hours. Today order fulfilment time from an e-commerce distribution center has come down to one hour. Such turn-around-time requires high accuracy and efficiency, which is not possible without automation. We see strong surge in digitised warehousing in coming days.” For bringing efficiency in a warehouse, Khatri suggest multiple technologies from basic to most advanced level such as real time data capturing, IOT, Put to light, Pick to light, ASRS, drones, cobot or robotics will add to strategic improvements in operations and efficiencies in productivity. He adds, “Real time data capturing or real time inventory are the commonly recommended solution as basics but right selection of technology for advanced solution depends on multiple factors. “Cobots can improve efficiency significantly. The rate of adoption of cobots in supply chain industry is much lower than that of manufacturing but we see higher adoption of cobots in this industry as well. Cobots help in reduction of TAT, reduction of cost, increase in throughput and reduction in error rates.” Khatri observes digitisation as one of the growing trends in the warehousing sector. He adds further, “If we talk about disrupter technologies, we can name a few like autonomous guided vehicles, cobots and AI. Autonomous guided vehicle like drones or robotics movement makes pick up, put away, inventory count etc. in a fraction of time, while AI tools with ML and IOT help in predictive analytics for demand and inventory.” CC
special feature
Dynamic On-demand Warehousing
only for what you occupy
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special feature
T
he warehousing industry has been undergoing through a period of transition across the globe. Several evolution and innovations are taking place every day in the industry. Scene of a traditional warehouse staffed with workers manually stocking shelves, running from aisle to aisle and performing paperwork with pen and paper has started waning away. The future of warehouses will be driven by the technology - drones whizzing around picking up items from their receptacles and delivering them to droids, waiting at sorting station In Dynamic On-demand Warehousing a small will soon turn into reality.The retailer/company needs to pay only for the automation is happening at the rapid space their goods occupy in a warehouse pace in the warehousing industry in instead of owning distribution centres or order to make warehouse operations fast, efficient and smooth. signing contracts with 3PLs. Gaurav Dubey
presents a short feature elucidating how Ondemand Warehousing can be particularly useful for e-commerce, where retailers typically face high demand uncertainty and often have significant capital constraints.
Recently released JLL India report forecasts that India would witness investments close to `50,000 crore in creation of warehousing facilities between 2018 and 2020. A whopping `10,000 crore was invested in the year 2017 itself. These figures itself clarify that there would be no dearth of warehousing space in the upcoming years. However, we should also understand that this demand is being largely fueled by the growing e-commerce sector of the country. And, the demand in e-commerce space keeps on going up and down very frequently. Here comes the concept of Dynamic On-demand Warehousing in play and it’s emerging as the viable way of purchasing warehousing services in the current scenario.
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special feature
Jasmine Singh
Senior Executive Director (National Head – Logistics Services), CBRE
We all talk about cost advantages and sharing spaces in order to gain more efficiencies etc. But I think, one important thing in which I personally believe is that the quality of solutions would not have improved if we had not been sharing information. So, I think current service providers have become more innovative and efficient because of the outsourcing and shared services being offered.�
In Dynamic On-demand Wa r e h o u s i n g a sma l l reta i ler/ compa ny ne e d s to pay on ly for t he space t he i r goods occupy i n a wa rehouse instead of owning distribution centers or signing c ont r act s w it h third-party logistics providers (3PLs). A nd the actual pay-per-use transactions occur in an electronic marketplace.
The approach can extend to a company’s entire warehousing strategy, or it may s u p pl e m e n t a n existing logistics net work bui lt on long-ter m contracts. In either case, it allows the company to adapt quickly to variable demand and cost conditions. Dynamic ondemand warehousing can be particularly useful for e-commerce, where retailers typically face high demand uncertainty and often have significant capital constraints. For e-retailers, shipment options have been challenging indeed. Traditionally, their options were Start-up drop ship, self-owned network, network outsourced to 3PL and complete outsource of distribution. In start-up drop ship fashion if the retailer owns its own manufacturing/assembly facility, initially it may ship directly from that facility. Many small e-commerce retailers start this way. If the retailer operates opts for its own self owned network then it is unlikely to have the scale and financial resources to build an extensive network. As a result, the average distance to the customer is high, resulting in high shipping costs
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Characteristics of an ideal warehouse Convenient location Use of mechanical devices for handling goods Adequate space for storage of goods Cold storage facility for perishable items
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special feature and longer delivery times. However, network outsourced to 3 PL offers a little more flexibility compared to a selfowned network, many 3PLs demand commitments of one year to three years. This effectively locks the retailer into a fixed structure for several years. If a retailer considers complete outsourcing of distribution then it can provide speedy service to customers, the costs can be high and many retailers are wary of handing over a core part of the business to a top competitor. Dynamic on-demand warehousing is best suited to retailers with small but highly variable demand, such as emerging e-commerce retailers. For mid-size retailers, it can act as a buffer to handle unexpected demand variability, complementing a primarily self-operated and 3PL-based network.
Dynamic On-Demand Warehousing – The latest trend Dynamic on-demand warehousing, quickly matching those needing space with facilities that have space available, is emerging to help facilitate the pace and scope of e-commerce’s logistics needs. It is “dynamic” in the sense that the retailer ca n ch a nge t he configuration frequently: based on demand conditions, warehouse space could be deployed at different locations, for different volumes, in a dynamic fashion. Its order Ramkesh Jangra management Supply Chain Head, Ericsson system and wa r e ho u s e management system can link The challenge in shared t he r et a i le r ’s warehouses is security, in systems with those terms of information as the of the warehouse same team will handle my provider.
products and competitor’s products then it gives rise to chance of information leakage.”
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The idea is that the shipper has access to a large network o f wa r e ho u s e s , and can activate ser vices “on the f l y,” r a n g i n g from bulk pallet
handling to fulfillment, in small to large volumes and for relatively short times. For example, a small e-commerce retailer may decide to create half a dozen different distribution points, with as few as 50 pallets at each warehouse and little to no fixed time commitment. The warehouse provider would use its own labor and equipment to perform standard and optional services such as receiving, shipping, case pick, item pick and packing, and would charge the retailer on a per-unit basis. In such a system, the retailer incurs no upfront fixed costs, and gains significant flexibility. Of course, the unit cost charged by the warehouse provider may be higher or lower than what would be incurred by the retailer if it operated its own high-volume, high-utilization warehouse. But this is the benefit of dynamic on-demand warehousing: The retailer gains flexibility and avoids capital expense, even if sometimes the per-unit cost is higher. With dedicated warehousing, a small retailer/company either has to own or rent the location, but in either scenario, operational cost of the facility and cost of the building has to own by a retailer/ company. In case if a company wants a warehouse that will cater
It is “dynamic” in the sense that the retailer can change the configuration frequently: based on demand conditions, warehouse space could be deployed at different locations, for different volumes, in a dynamic fashion
special feature
K Swaminathan
Director [Service Business], Balmer Lawrie & Co Ltd
In today’s world, a shared warehousing model is more beneficial to a company then a dedicated warehouse. More over a Shared warehouse will give access to state-of-the-art warehouse and management systems. Three advantages readily come to my mind viz., cost saving, efficiency and flexibility particularly to the MSMEs.�
to all its supply chain needs, it is obvious that the company might have certain reservations about sha r i ng its product space with other products in one warehouse. It i s t r ue t h at there are certain d isadva ntages of Dynamic On demand warehousing however, its advantages definitely exceed the disadvantages.
1. Pay for the space you use
When you share a warehouse space, you are sharing the cost of the warehouse with a l l the cl ients. This in a way can reduce the overall expenses that you have to bear on this warehousing. You as a company needs to pay only for the space that you occupy.
2. Industry Knowledge A third-party logistics with shared warehousing has employees that are exposed to different products. They indeed have knowledge and experience with niche industries.
3. Expertise With shared warehousing, you will always have access to the state of the art management system and warehouse. The th i rd-pa r t y log istics that are associated with shared warehousing are well aware of managing the freight rightly along with other things such as KPIs and online reporting.
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4. Security Shared warehousing will always have security guards on duty, round the clock. Further, to avoid the security concerns there is IT infrastructure, WMS, CCTV cameras, and alike. So, be assured that your products are in the best hands and under the toughest security.
Here is the crux It should be mentioned that dynamic on-demand warehousing is not without its own risks. The single biggest risk is that the retailer is exposed to market rates for warehousing space. Putting it in consumer terms: Much like surge pricing, market conditions may cause warehousing rates to spike suddenly. A retailer that has its own network of owned/operated warehouses will typically be in a better position to manage its costs. Another potential risk factor stems from the fact that orders are being fulfilled by a network of unrelated warehouses contracted only through an online marketplace. As in any such outsourcing situation, operating conditions at some warehouses may not be optimal, leading to errors in order fulfillment, for example, or misalignment with the retailer’s values and objectives.
This risk can be mitigated by appropriate contract structures and monitoring, both on the marketplace plat for m a nd v ia th i rd parties. Dynamic on-demand warehousing is an idea whose time has come. Not only does Further, to avoid the security concerns it offer a cost-efficient way for there is IT infrastructure, WMS, CCTV smaller e-commerce retailers cameras, and alike. So, be assured to offer high service levels that your products are in the best in a flexible fashion, but it hands and under the toughest security is a lso likely to become a standard way of contracting for warehousing services. CC
feature
Rising significance
of Supply Chain transparency in business
Visibility in supply chain could be achieved by organisational reforms and incorporating latest technologies in the operations. It has tactical and strategic elements impacting the transactions throughout the supply chain and the structure of the resource network. Gaurav Dubey
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feature
I
f there is one buzzword that continues to define supply chain management, its ‘visibility’. End-to-end supply chain visibility helps logistics professionals take intelligent and strategic supply chain decisions. It also improves internal efficiency of operations and helps in building customer value.
Firstly, complete transparency in product manufacturing and its delivery has become a fundamental aspect. With new advances in technology, such as the IoT (Internet of Things) and big data, companies are able to gain complete visibility of their entire supply chain. It helps in making dynamic decisions and better optimisation of resources.
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feature Secondly, in the era of e-commerce, customers not only buy products they also buy customer experience. Every emerging trend has to be directly a l i g ne d to c h a n g i n g con s u me r experience along with bringing higher levels of transparency. The companies will require to come up with new innovations to create unique customer experiences. For example, Amazon has already started developing its response to this trend with Amazon Prime Air, a future service that will allow A Morgan it to del iver Stanley p ac k a ge s o f report f ive p ou nd s states that or less to the Indian customers within 30 e-commerce m i nut e s v i a market will drones. hit $200
billion mark by the year 2026
Th i rd ly, digitisation is another trend in the supply chain industry which is contributing a lot in offering visibility in supply chain. It is the process of using the latest tech solutions together with other physical and digital assets to
Supply chain goes a long way in creating a logistics value chain. Earlier this year we received our Cargo iQ certification and this is a direct result of the measures that we have taken to minimise and eliminate shipping errors and provide our customers with more visibility on their shipments.”
Keki Patel Cargo Manager – India and Nepal, Emirates SkyCargo
warehousing segment. This includes use of gesture recognition solutions instead of keyboards and mice in the procurement process. It also includes autonomous vehicles (self-driving cars) which are designed to navigate without human input.
Evolution of e-commerce fueled the need of supply chain visibility A Morgan Stanley report states that the Indian e-commerce market will hit $200 billion mark by the year 2026. Every year e-commerce has been fueling growth of the global logistics industry and significantly the year 2017 also witnessed tremendous boost from the sector. Recently, the growth rate was really tremendous as online shopping straight away jumped from
It provides industry APIs which facilitate high level of shipment transparency, while the Cargo IQ program is all about transport quality through shipment control and process optimisation.”
Glyn Hughes
Lastly, advanced Artificial Intelligence solutions have numerous applications in the supply chain, especially in the
52 CargoConnect - november 2018
According to a survey conducted by PRTM, global management consulting firm, there are several key supply chain challenges by which several global companies are struggling in the present scenario. Firstly, consumers have become more price conscious and brand loyalty has decreased considerably which is resulting in commoditisation and constant increase in supply chain volatility. Secondly, companies are looking forward to serve international customers to leverage growth of the foreign markets. But, very few companies are prepared for the comple x it y that resu lts from serving global customers with regionally customized products. Thirdly, end-to-end supply chain cost optimization has become a critical factor in business success. Fourthly, t he s cop e of r i sk a nd opportunity management should span the entire supply chain including the supply chains of key partners.
Global Head of Air Cargo, IATA
redesign logistics practices. There is no need to mention that digitisation is not only driving the logistics industry but it’s at the helm of other industries as well.
customer’s home at the place of moving goods from a warehouse to storefronts.
10 per cent to nearly 30 per cent of the total retail sales. This exponential growth has been constantly pushing the supply chain industry to come up with new ways of moving products from warehouses to customers. Supply chain is continuously evolving and that time is not far away when good will be moved straight from warehouse to
Fif thly, e x i s t i n g s u p p l y c h a i n organisations are not completely integrated or empowered – lack of i nteg ration bet ween product development and manufacturing f u nct ion s a r e s t a nd i n g i n t he way of capturing the benefits of economic recovery.
feature Viewpoint of stakeholders Glyn Hughes - Globa l Head of A i r C a r go , I ATA , e st abl i s he d the relationship of supply chain t r a n s p a r e nc y w i t h d ay-t o - d ay activities and elucidated on how visibility has acquired an important role in our lives. Glyn expressed, “Each morning we wake up and look out of the window, we see a different world. The same is true in business as well, each day presents new opportunities, new expectations, new demands and new challenges. Technology has moved at a tremors pace and now we can track the path of the taxi coming to pick us up, our pizza deliverer or our pet’s location.So, it’s natural that we bring these same expectations into the business environment. In the coming times, shippers will expect to see full shipment transparency with dynamic real time communication, and actual shipment routing issues.” While talking about IATAs One Record project, Glyn said, “It provides industry APIs which facilitate high level of shipment transparency, while the Cargo IQ program is all about transport quality through shipment control and process optimisation.”
Transparency and quality both has become the key to success. There needs to be regular monitoring of shipments and transparency throughout the supply chain to ensure that shipments arrive correctly and receive the correct services. “
Ashwin Bhat Head of Cargo, Swiss WorldCargo
Emirates SkyCargo said, “We’re always looking at adding value to our customers’ business and a transparent supply chain goes a long way in creating a logistics value chain. Earlier this year we received our Cargo iQ certification and this is a direct result of the measures that we have taken to minimise and eliminate shipping errors and provide our customers with more visibility on their shipments. “We have also set up a dedicated Cargo Operations Control Centre (COCC) which monitors the status of shipments in real time. The COCC uses live shipment data and Cargo iQ metrics to track the progress of the shipment’s journey against its routemap and the delivery commitment created at the time of booking.”
The traditional pact between airlines and forwarders to collectively enhance the shipper’s business interests has come to question. Concerns are on transparency and consistent quality of execution. These are burdening the shipper’s ability to move goods at a speed and reliability that they rely upon to execute their business.”
Dheeraj Kohli Vice President and Global Head – Travel and Transportation, Unisys
Transparent supply-chain enables the shipper and other connected stakeholders to be aware of the movement of goods. Apart from ensuring the timely movement and arrival of goods, it also allows for accurate planning for the shipper and consignee. Keki Patel, Cargo M a n a ge r – I n d i a a n d N e p a l ,
54 CargoConnect - november 2018
Meanwhile, Ashwin Bhat, Head of Cargo, Swiss WorldCargo informed, “Transparency and quality both has become the key to success. There need s to be reg ula r mon itor i ng of sh ipments a nd t ra nspa rency throughout the supply chain to ensure that shipments arrive correctly and receive the correct services. Likewise,
there should be a continued focus on quality in regards to handling is one of the most important determinants in if a shipment arrives correctly and on time. Our recent CEIV certification throughout our network confirms that we are able to offer standardised processes and steps everywhere within the supply chain.” Dheeraj Koh l i, Vice P re sident a nd Globa l Head – Travel a nd Transportation, Unisys talked about how perfect coordination between airl ines and forwarders Recently, the could enhance growth rate s u pply c h a i n was really v isibi l it y. He added, “The tremendous traditional as online pact bet ween shopping airl ines and straight for warders to collectively away jumped enhance the from 10 shipper’s per cent to b u s i n e s s nearly 30 per i nterests has come to cent of the question. total retail Concerns are on sales t r a n s p a r e nc y and consistent qua l it y of e xecution. These a re burdening the shipper’s ability to move goods at a speed and reliability that they rely upon to execute their business. More efficient process in air cargo coupled with the right te ch nolo g y e n able rs cou ld ad d significant value to the shippers.” CC
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h e r a n k i n g o f I n d i a’s lo g i s t ic s performance index has witnessed an improvement and shot up to 35th position in 2016 according to the World Bank report. The logistics industry is expected to grow at a CAGR of 15-20 per cent between 2016 and 2020 and the Indian logistics industry is expected to reach over `13,000 crores by 2019. Carrying the vision of Make in India initiated by the union government, the State of Uttar Pradesh has already launched Industrial Investment and Employment Promotion Policy (IIEPP) 2017 and Food Processing Industry Policy 2017 to create a supporting ecosystem for investments in
The Uttar Pradesh government is drafting its own logistics policy as higher industrial activity, economic growth and the government’s recent policy decisions are triggering unmatched growth in the logistics and warehousing sector. Porni Banerjee evaluates the state’s upcoming logistics environment, present infrastructural conditions that could cater to the growth of logistics within its territory, investment zones, and government policies and initiatives to further strengthen logistics and make UP the next world-class warehousing and logistics destination.
industries and related infrastructure. In addition to complementing the UP IIEP Policy 2017, the Uttar Pradesh Warehousing and Logistics Policy 2018 aims at strengthening the state’s foothold in the logistics industry. The state’s infrastructure – The Lookout Strategically located on the golden quadrilateral, and having the largest rail network spanning over 8949 kms, Uttar Pradesh has a good position to meet the requisites of expanding logistics industry. Since the state is connected to major national and international airports, it has a strategic advantage of access to market. Major national and international airports are operational at Lucknow, Allahabad, Gorakhpur and Varanasi. The Multi-city metro rail projects, coming up at Lucknow, Kanpur, Meerut and Varanasi, and upcoming international airport at Jewar
and Kushinagar are adding strength to State’s connectivity advantage. The National Waterway-1 (Allahabad-Haldia Inland Waterway) project is also expected to benefit the exporting hubs in eastern Uttar Pradesh. The entire connectivity web of air, water, road and rail network will help the state’s industries and manufacturing units switch seamlessly between different modes of transport so as to send their goods to markets in India and abroad. Talking about the infrastructure of Uttar Pradesh that could cater to the growth of the logistics industry, Vikas Yadav, Director, Future Warehousing Solutions Pvt Ltd, opines, “Uttar Pradesh has witnessed massive infrastructure development over the last few years. The speed at which developmental decisions have been takIing place and getting implemented are testimonials of the commitment of the government towards developing the state’s infrastructure. “ICD Dadri, private ICD at Khurja, Eastern peripheries Expressway, the Yamuna Expressway, Ag ra Luck now Ex pressway and the justannounced Purvanchal expressway are great initiatives by the government of Uttar Pradesh which has literally reduced the travel time (a key attribute for logistics and warehousing ) to less than half and increased the penetration to the last customer in a very effective way. “Furthermore, Uttar Pradesh has an enabling ecosystem for the logistics industr y. It is strategically located on the golden quadrilateral and has the largest rail network spanning over 8949 kms. Air connectivity through 6 airports (2 international and 4 domestic) also provides a strategic advantage to the state. The upcoming multi-city metro rail projects and upcoming international airports at Jewar and Kushinagar are adding strengths to the state’s infrastructure.” Commenting on the contributions made by the team of NHAI for improving connectivity, Rajeev Yadav, Member, NHAI, said, “Almost 3.6 crores cumec of earth work has been used. Out of which 1.2 crore cumec of fly ash has been used for the construction of embankments of the expressway. All the thermal power plants of Dadri and Panipat have been utilised. Furthermore, the EPE is likely to reduce the pollution level as all the movement of trucks will be out of Delhi. EPE will be the november 2018 - CargoConnect
57
infrastructure value out of EDFC and AKIC. In addition to this, to develop new industrial zones along the corridor, the government has taken into consideration the Greenfield railway stations and zones where there is a probability of related logistics infrastructure to be developed. The Government intends to expand market for freight consigning industries in the state along the Eastern Dedicated Freight Corridor.
With both the eastern and the western freight corridors and several industrial corridors passing through Uttar Pradesh, we are at a good position to take advantage of this logistics revolution which we expect to see in the next two years,”
RajivE Kumar Former Chief Secretary, Uttar Pradesh
game changer in the highway sector. Cities that have been connected with EPE are Kundli, Baghpat, Ghaziabad, Noida, Greater Noida till Palwal.”
Key Logistics and Investment Zones The existing logistics infrastructure in Uttar Pradesh includes Moradabad rail linked combined domestic and EXIM terminal, Rail linked Pvt Freight Terminal and Inland Container Depot in Kanpur, ICD at Dadri Terminal and Kanpur ICD. Besides, three multi modal logistics/ transport hubs are also proposed at Noida, Boraki and Varanasi. With the development of all these road and railway networks, there is a strong reason to develop several investment zones and logistics hubs to attract maximum benefits from these infrastructure projects. Besides areas along DMIC and EDFC catchment area, there are many more places where logistics infrastructure can be developed. This includes Logistics hub at Meerut along Delhi-Meerut Expressway and near proposed Bhaupur Industrial Area. Similarly, Azamgarh alongside the Purvanchal Expressway near the upcoming
Freight Corridors and Industrial Corridors The two promising industrial and freight corridors are Delhi Mumbai Industrial Corridor (DMIC) – Western Dedicated Freight Corridor (WDFC) and Amritsar Kolkata Industrial Corridor (AKIC) – Eastern Dedicated Freight Corridor (EDFC) that fall in Uttar Pradesh. 1. Western Dedicated Freight Corridor (WDFC) and Delhi Mumbai Industrial Corridor (DMIC): The upcoming WDFC has connectivity from Dadri in Ghaziabad to Jawaharlal Nehru Port in Mumbai. This corridor will enable the state bolster its economic activity by reducing the travel time to ports. Uttar Pradesh has a vast area of 36,000 sq. km, extended across 12 districts along DMIC. Government of UP is already promoting projects such as Integrated Industrial Township at Greater Noida, Multi-Modal Logistics hub at Dadri and Multi-Modal Transport Hub at Boraki with an aim to obtain maximum value out of DMIC. The corridor is the path towards the development of new industrial regions such as Meerut-Muzaffarnagar Industrial Area. 2. Eastern Dedicated Freight Corridor (EDFC) and Amritsar Kolkata Industrial Corridor (AKIC): The EDFC project in Uttar Pradesh connects the western region to the eastern one. The project has a catchment area of 57 per cent. The state government has already started promoting Integrated Industrial Townships, Integrated Manufacturing Clusters and logistics hubs along the corridor in order to maximise the
58 CargoConnect - november 2018
Deen Dayal Upadhaya Nagar (Mughalsarai)-Varanasi Mirzapur Investment Zone over 3,000 hectares is a promising location. Jhansi National Investment and Manufacturing Zone (NIMZ) proposed over 5567 hectares alongside National Highway – 44 is another promising location giving gateway to the northern states to southern India. Nonetheless, Allahabad is one the most attractive location to develop a logistics park alongside the upcoming Inland waterways route to Haldia port. Policy undertaken by the government The Government of Uttar Pradesh realises that to achieve the vision of sustainable industrialisation in the state, the development of warehousing and logistics infrastructure will be a critical factor. A vibrant warehousing and logistics sector would increase the competitiveness of goods produced in the state, both in the domestic as well as export market. The sector has high potential to boost manufacturing and job creation
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infrastructure in the state, and therefore can be instrumental in improving the State’s GDP. With this view, the Govt of UP envisions this “Warehousing and Logistics Policy” to maximise the benefit of the strategic geographical location of the state, and spur far reaching economic benefit. Talking about the initiatives undertaken by the government to facilitate ease of doing business in Uttar Pradesh, I.S. Yadav from Prerna Logistics, says, “The recent policy on warehousing and logistics by the state government was drafted on February 21 and 22 in FY18. We are aware of the fact that logistics and warehousing has been granted an ‘infrastructure status’ by the government of India. Granting infrastructure status to this sector would ease the loaning facility. UP government has announced two other policies in 2017 – The Industrial Investment and Employment Promotion Policy and Food Processing Industry Policy. The inter-state barriers have disappeared now because of the implementation of GST from July 1 in FY17 and now we have a unified mode of business now. So, the gates are wide open now for all the places for this industry. Also, UP is projecting itself as a welcome destination for this industry.” Few of the benefits that the UP government has announced in its upcoming policy are highlighted as follows: 1. The policy is for a period of 5 years i.e. from 2018-2023 2. If under any other scheme, some other benefits are already granted to entrepreneurs, then the benefits which are being announced under this policy would have an overriding effect. The government wants to come up with a holistic approach. They want to create better road connectivity all over. We also have five container depots in Moradabad, Dadri, Mirzapur, and Varanasi. Likewise, the government is also planning to come up with three additional hubs in Noida, Varanasi and Boraki. 3. The government is also coming up with dedicated agency for the development of logistics sector. They have nominated a secretary level officer to look after all the benefits to be accrued to entrepreneurs or investors in this sector. 4. The government has also decided to develop logistics parks on 100 acre land which would have container freight stations, inland container depots, air freight stations, warehouses, port chains and related infrastructure developments. Under this policy, the government is also conscious about the needs of the industry such as the green channel for exim cargo, promotion of inland container depots, improving quality storage facilities. So far, the government has identified Dadri as the logistics zone. Discussing about the policy undertaken by the state government, Vikas said, “The Uttar Pradesh government is, for the first time, drafting its own logistic policy, as higher industrial activity, economic growth and government’s recent policy decisions are triggering unprecedented growth in the logistic sector. The policy provides strategic direction for the development of the logistic industry in the state.It is aiming at promoting private
60 CargoConnect - november 2018
investments in setting up logistics facilities in the state with backward linkages. This includes upgrading and improving the existing state infrastructure in order to boost economic activities in the state, so as to generate mass employment opportunities. Furthermore, the government intends to enhance the warehousing capacity to promote the interests of both primary and secondary sectors. In this process, the policy promotes green and innovative logistics to develop a competitive logistics infrastructure.” Through this policy, state government targets to attract investments in the following categories but not limited to • Warehousing, Silos, Cold Storages and associated infrastructure • E-Commerce hubs • Technological solutions in Real time logistics, supply chain management and process improvement • Robotics and Automation technologies in warehousing and logistics sector • Skill Development and Training The policy aims to take forward the vision and objectives of State’s Industrial Investment and Employment Promotion Policy 2017 (IIEPP 2017) and further provides strategic direction for development of the warehousing and logistics sector in the state over the next five years. Objectives of the Policy The state government has drafted its own logistics policy keeping the following points in mind: • Encouraging private investments to establish logistics facilities in the state with forward and backward linkages • Enhancing and improving the existing infrastructure of warehousing and logistics sector in order to boost several economic activities and multiply mass employment opportunities • Enhancing warehousing capacity to promote the interests of both primary and secondary sectors • Fostering green and innovative practices to develop a competitive logistics infrastructure in the State. Structure of the Policy The following structure of the policy highlights several projects undertaken by the government of Uttar Pradesh; thereby intensifying the overall face of logistics in the state
Free Trade and Warehousing Zone (FTWZ) – Government of UP targets to create FTWZs at strategic locations near ICDs and dry ports and along the existing and upcoming expressways, highways and freight corridors in order to ease the import and export activities of goods and services, with freedom to carry out freight transactions in free currency. The state government foresees the creation of such FTWZs with facilities like customised warehousing, office spaces, transportation and handling facilities including support
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infrastructure the state government is likely to introduce sector specific courses. The UP government will also lay emphasis on upgrading the existing training infrastructure as per needs from the industry.
Uttar Pradesh has witnessed massive infrastructure development over the last few years. The speed at which developmental decisions have been taking place and getting implemented are testimonials of the commitment of the government towards developing infrastructure.”
Vikas Yadav Director, Future Warehousing Solutions Pvt Ltd
facilities such as medical centres, canteen, etc. with one-stop clearance of import-export formalities.
Promotion of Inland Container Depots (ICDs) – At present, there are major ICDs in the state at Dadri, Agra, Mirzapur, Moradabad, Kanpur, etc. Also, major multimodal logistics/ transport hubs have been proposed at Noida, Boraki, Varanasi. The Government of Uttar Pradesh will focus on strengthening dry ports and inland container depots at suitable locations with access to road corridors, quality network of 4-lane and 6-lane highways, interlinking roads, etc. Promoting Green Logistics –The state government aims to adopt eco friendly and sustainable logistics and transportation system in the state. Green logistics aim at minimising ecological impact of logistics activities on the environment. Such techniques include eco-friendly transportation, reducing carbon emissions, solid liquid waste management, scientific disposal techniques, use of biodegradable items, adopting recycling techniques, using renewable energy, etc.
Encouraging Innovations and Intelligent Logistics – In order to enable access to efficiency enhancing mechanisms and adopt modern techniques, the state will encourage acquisition of better equipment such as larger and well equipped trucks, higher load capacity railway wagons, etc. Govt of Uttar Pradesh will also promote developing standardised layout for inter-modal transport and logistics hubs to include containers, pallets, cranes, etc. with consistency. Dedicated agency for development of logistics – The State has decided to set up a dedicated Logistics Division headed by a Secretary rank officer under Industrial and Infrastructure Development Department, Government of Uttar Pradesh. The role of Dedicated Division will be ensuring better coordination between Departments including Civil Aviation, Transport, Power, Food & Agriculture, and other related departments in establishing logistics infrastructure in the state.
Development of Green Channel for Exim Cargo – The state has plans to identify Green Channels (with less inspection during transit) in order to check delays for vehicles carrying export-import cargo. State government expects the development of comprehensive Transport zones in all major cities, including truck terminals near major national and state highways, expressways, investment zones and industrial corridors. These comprehensive transport zones and terminals will have common facilities for goods vehicles such as workshops, canteens, rest-houses, etc. Logistics Zone –– The two key freight corridors of the country - WDFC and EDFC, connecting north India to the western and eastern parts of the country, which intersects at Dadri, the government of UP will lay special emphasis on developing the region as Logistics Zone. Similarly, Bhaupur and Naini will also be developed as logistics zones. The state government will identify and declare such logistics zones from time to time.
Promoting Solar Powered Logistics Park – Government As far as promoting green logistics is concerned, Yadav of Uttar Pradesh is all set to encourage private logistics highlighted the fact that, “The state government is park developers to use new and renewable supporting the cause of clean energy sources of energy so as to support the cause and promoting developers of logistics Government of UP of and promote clean energy. parks to meet their power requirements targets to create f rom sol a r e ne rg y. It is prov id i ng FTWZs at strategic Logistics Skill Development – With infrastructure interest subsidy in the form locations near expansion in logistics industry, demand of re imbursements to logistic units to the ICDs, dry ports for skilled personnel in warehouse extent of 5 per cent per annum for 5 years and along management, logistics management heavy on loan taken for solar panels subject to an expressways vehicle drivers, etc. is on its rise. Therefore, overall ceiling of INR 1 cr.” CC
62 CargoConnect - november 2018
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E-way bill has led to smoother movement of goods “We are known for our ethics, reliability and transparency in business, and by the virtue of these characteristics, we have earned a strong goodwill in the Logistics industry in the past six decades,� says Mahendra K Shah, Managing Director, V-trans (India) Limited, in an interview with Gaurav Dubey. He also talked about the issues which the logistics industry has been facing and its possible remedies. Here are the excerpts!
1) How has the E-way bill been contributing to make logistics easier, cheaper and efficient? The E-way bill is probably one of the most important developments under the GST implementation for the logistics sector. Reduced checkpoints, warehouse consolidation and adaption of automated technology resulting from the implementation of the E-way bill have been saving transporters time and money. The adoption of E-way bill has also led to faster and smoother transportation and movement of goods with reduction of number of state border and check points. The cost of transportation for businessmen has also reduced substantially. E-way bill has helped in the removal of bottlenecks in the inter-state
66 CargoConnect - november 2018
movement of goods. However, with the mentioned advantages there are certain areas where the scope of improvisation still lies, such as issues pertaining to part truck load service providers - goods return, interchange of cargo and material accommodation in two vehicles due to bulky nature of material and so on. We are confident seeing the government working to address all these issues at the earliest.
As per the revised norms, in the case of intra-state movement of goods, there will be no need for E-way bill if the individual consignment is valued at less than `50,000, which means it has largely provided relief to e-commerce and courier companies. The revised policy has also extended the relaxation on the requirement of updating vehicle details for intra state movement to 50 kms from 10 kms.
2) Union
Minor mistakes in E-way bill updation like vehicle number etc. by the carrier are treated as clerical mistake and penalty on such shipment is waived off.
government has made several amendments to provide relief from E-way bill compliance burden to courier, e-commerce logistics and LTL operators. Are you satisfied with the amendments or you believe the bill require further amendments?
While these amendments provide some relief to the LTL & e-commerce player there are still routine issues and problems
that needs to be addressed, such as return of undelivered goods, E-way bill cancellation by clients even after updating part B, and vice versa.
3) Do you think the recent strike
of transporters was the result of a substantial gap between the Government and mid & smallscale logistics companies? How could this gap be filled in order to create a level playing field for all the companies irrespective of their size?
The logistics industry in India has a fragmented nature. Mid and small-scale companies through various associations have been voicing out their issues to the government. While some of it has been addressed through GST and other reforms, concerns still remain on national uniform pricing, quarterly revision of fuel prices, and a toll barrier free India for seamless movement of vehicles. In order to strike a balance, the government needs to understand the issues being faced by the companies and the industry as a whole and; while making the plans/policies, a team of officials should physically inspect and look into the ground level issues and bring it to the table for discussion. Only then the government will be able to formulate a policy which will be beneficial for the country’s entire logistics industry.
4)
Experts anticipated that post-GST; the demand for large tractor-trailers and high-powered commercial vehicles could increase. What are your views?
Post implementation of GST, the logistics and transportation industry has grown at an impressive rate. In the present scenario, fundamental principles of logistics - demand, supply, near-tocustomer, sourcing, and transportation and inventory costs have become the determining factors of logistics planning.
This is expected to lead to a major shift/ consolidation in warehousing locations; development of logistics hubs which will then cater to their local (spokes) cities thus leading to tonnage growth of large commercial vehicles (LCVs). Earlier, none of the transporters under GTA got tax benefit against purchase of vehicles, now FCM transporters could avail benefits of input credit which is the biggest motivating factor. After analysing the operating costs of bigger vehicles and the increase in revenue, one will find that the equation is in favor of the latter.
Our extensive reach with more than 650 branches, presence of warehouses in more than 20 major cities come handy as clients today look for single window solutions 5) The
Indian Express Logistics Industry is expected to grow at a CAGR of 17 per cent and reach INR 48,000 crore by 2023. In such a growth scenario, what major trends will shape the future of the industry?
Government is pushing this sector hard, and granting of ‘Infrastructure status’ to the logistics industry is itself a testimony of that. The coming years will help us in understanding the impact of the measures taken by the government. The major trends that would shape the logistics industry are: • •
•
Increased impact of Government spending and regulations on the sector. Government’s initiative such as ‘Make in India’ is boosting up the manufacturing sector, and it is forecasted to generate further growth of around 10 per cent. Booming e-commerce sector is definitely a big factor in growth of express companies,
•
•
we have already started our e-commerce division in the xpress vertical of the group – ‘V Xpress’ and it is doing very well. Consolidations and collaborationsLarger companies will tie-up with local and regional partners who have strong networks and enable them to meet faster delivery timelines. Technology adaptation- Stronger technology systems like increasing adoption of Robotics & Automation and Smart Trucking are some of the emerging trends. Automation in invoice generation, quick upload of bills, transparent refueling, transactions using fuel cards, etc. will help provide transparency, efficiency and reliability in operations.
6)
V-Trans offer customised solutions to its clients as per their needs. Please tell us about the solutions you offer, and the ones that differ you from your competitors?
Smart combination of services that we provide under one roof makes us unique. Our offerings are built to suit clients’ requirement in all areas - transport, express movement or warehousing. Various combinations of pick up & delivery and billing options are meant to cater effectively to the requirement of all clients irrespective of their size, industry and location. We give full thrust on quality and customer service and adoption of best available technology. We are immune to the industry type and volumes, which means we serve across industries to any volume and location. Moreover, our extensive reach with more than 650 branches, presence of warehouses in more than 20 major cities come handy as clients today look for single window solutions. Notably, we are known for our ethics, reliability and transparency in business, and by the virtue of these characteristics the goodwill that we have earned over the past six decades has been exemplary. CC
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Interview
We provide all our customers a first-class service Located at the crossroads of the main European transport routes, Paris-Vatry airport offers high quality faculty in handling all types of cargo with 24/7/365 operations. Yoann Maugran, Cargo Sales Manager of Paris-Vatry Airport, in an exclusive interaction with Upamanyu Borah, talks about the adaptive infrastructure at the airport, its exclusives, the shift towards implementing technology in all the process flows, potential of the Indian market, and trends that will shape the future of the air freight market. Excerpts:
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1) Paris-Vatry Airport handles all types of cargo including relief goods, temperature and time sensitive shipments, live animals and outsized cargo.With regard to that, what are the key factors to watch out forwhile performing these operations in real time? People are the key and customer service is in our DNA. We have succeeded in handling all types of cargo on a H24/7 basis, thanks to the dedication and flexibility of our staff. At Paris-Vatry Airport, we do self-handling; therefore all the services provided in the airport from warehouse to the airside are integrated. Keeping our staff welltrained and experienced allow us to position the right people in the right place and provide to all our customers a first-class service.
2)
What added advantages shippers get while transporting cargo through Paris-Vatry Airport in comparison to using services of other airports in France? There are not much airports in France capable to welcome all types of aircrafts, and at anytime of the day or night, without any restriction, slots and curfew. Our human-size structure allows us to guarantee a top safety, security and confidentiality in all areas of our activity. By combining this with a personalised service at the right cost, it gives us valuable assets to be exploited.
3)
Security of air cargo is one of the crucial issues for airports across the world. What measures does Paris-Vatry Airport take to provide end to end security of cargo? Our staff is fully trained and acts as regulated agents in terms of security of air cargo. We do cargo screening by ourselves, and work with local partners if we need sniffer dogs or RASCargo™ method for specific cargo. Our cargo
warehouse is equipped with alarm systems and continuous surveillance cameras. Once cargo is positioned airside, we are able to dedicate staff for security measures during the ramp handling process.
4)
Air Cargo standards for handling time and temperature sensitive cargo is becoming more stringent. How does Paris-Vatry Airport ensure an uninterrupted and transparent cold chain to end users?
We proved to the French pharma community our know how in the handling of healthcare products.
Once cargo is positioned airside, we are able to dedicate staff for security measures during the ramp handling process Every year we handle full freighter charters with big volumes. Our 2.500m2 temperature controlled warehouse allows us to maintain the cold chain from the cargo acceptance until the storage of the build-up pallets. Our dedicated warehouse was designed to guarantee the +2/+8°C but after hearing our customers concerns, we decided to upgrade it to +15/+25°C. Last year, we launched the CEIV Pharma certification. Within our commitment to get certified in 2019, we will raise our healthcare products handling to industry standards and bring transparency in the supply chain. Last but not least, we plan to bring visibility to the airport and develop confidence of the stakeholders.
5) Air cargo industry still relies heavily on paper documentation
for the exchange of data and information. In such a scenario, how much progress Paris-Vatry Airport has made to implement e-AWB in its system? At the end of last year, at a very short notice, we had to introduce a scheduled cargo service with B747Fs. We had to upgrade our cargo IT solution to be fully compliant with e-AWB and exchange of electronic data.
6) How important do you think is the Indian market for the overall growth of the global air cargo industry?
Earlier this year, I had the opportunity to attend a major air cargo event in Mumbai. I figured out the importance of the Indian market for the overall air cargo growth, in particular for the pharmaceutical and garment/textile industry. Indian State authorities seem to encourage and support the development of air cargo. We will keep a close look at the Indian market tendencies and investigate any opportunity of business in the area.
7)
Research has predicted that worldwide Air Cargo Logistics market will experience a 5.97 per cent compound annual growth rate from 2014 to 2019. What trends do you foresee will shape the Global Air Freight market in the upcoming years?
We are currently witnessing important mo ve s fro m majo r e -c o m merc e operators seeking to enter, in an integrated concept in the European market. This will definitely shape the global air freight market and open new development opportunities. Airports will have a key role to play by facilitating implementation and expansion of such companies. The challenge will be in bringing together all the national authorities towards a disruptive and innovative vision. CC
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Interview
THE FUTURE IS HERE AND NOW Abu Dhabi Ports is currently undergoing major infrastructural growth. What kind of investments is it making to support the same? Our main expansion project is the Dh10 billion expansion of Khalifa Port to increase capacity from 2.5 million twenty-foot equivalent units (TEUs) to 8.5 million TEUs over the next five years. As part of this development, we will create a new island for general cargo and bulk purposes, called South Island.
Since its establishment in 2006, Abu Dhabi Ports has been completely aligned with the economic plans and directives of Abu Dhabi Government’s 2030 Economic Vision, by playing a pivotal role in the growth of the Emirate. Ross Thompson, Chief Commercial and Strategy Officer, Abu Dhabi Ports, in an exclusive interview with Upamanyu Borah, elucidates vividly about their evolution from being a port operator and developer to becoming a preferred global trade enabler through a diverse portfolio of services and activities streamlined with technological advancements and industry innovations.
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Mediterranean Shipping Company (MSC), one of the world’s largest container vessel shipping lines, will be investing Dh4 billion to develop a container terminal at Khalifa Port, including investment for operational equipment and the deepening of the berths to handle some of the world’s largest shipping vessels. China COSCO Shipping Corporation Limited will also build and operate a terminal at Khalifa Port and we have signed a partnership agreement with Autoterminal (a member of Noatum Maritime Group) to provide world class services in vehicle handling and vehicle logistics. To support this growth, as well as boost connectivity with Khalifa Port, KIZAD (the Khalifa Industrial Zone Abu Dhabi) has upgraded almost 14 kilometres of roads and utilities, supporting new investors in heavy and general industries as well as logistics.
How far have you been successful in implementing technology to streamline processes and logistics operations at Abu Dhabi Ports and related facilities? Innovation is a core part of our growth strategy at Abu Dhabi Ports, and we are constantly assessing ways to harness technology to streamline our processes and operations. We’re proud to say that Khalifa Port is the first semi-automated port in the region, with a fully-automated security gate that is linked to an online clearance and ePass system. When container vehicles enter the port via the advanced Gate Management System (GMS), downtime is cut to 8 seconds from 30 seconds. This automation saves trucks anywhere from 12-40 minutes on turnaround time. We’re also using blockchain technology to provide a seamless and secure link between stakeholders across the trade community, allowing trade actors to record and extract transaction details with greater security, transparency and efficiency. At GITEX Technology Week this year, our subsidiary Maqta Gateway launched an international pilot project for ‘Silsal’, Abu Dhabi’s first entity-developed blockchain technology, in partnership with the Port of Antwerp, Belgium, and the MSC. Also, at GITEX Technology Week, Maqta Gateway collaborated with Abu Dhabi Customs to create a modernized singlewindow online interface that offers more than 14 digital services to the Emirate’s regional and international trading partners - MAMAR.
our product offerings with the launch of new free zone warehouses and Light Industrial Units (LIUs) located within KIZAD Logistics City, and adjacent to Khalifa Port. The new free zone warehouses will cater to trading and export companies, 3rd party logistics providers, freight forwarders and distributors while the pre-built and flexible LIUs will serve various light manufacturing businesses and workshops. The industrial, logistics and manufacturing hub is close to major UAE airports, and seamlessly connected by uncongested highways to Abu Dhabi, Dubai and into Saudi Arabia. It is due to be completed in October.
One of our key strategic pillars is investment in the latest technologies that will increase the efficiency of how we move and store goods Presently, Abu Dhabi Ports owns, manages and operates 11 ports and terminals in the UAE and Guinea. Any future expansion plans in the pipeline? We have established commercial schemes for target markets including Saudi Arabia, China, India, Russia and Japan, and have recently signed MoUs with the Confederation of Indian Industries, China Council for the Promotion of International Trade and Russian Trade and Economic Development Council.
KIZAD, one of the largest industrial zones in the Middle East and a subsidiary of Abu Dhabi Ports showcased their innovative logistics products and services at the recently held FWC’18 in New Delhi. Please elaborate.
We have signed agreements with 15 Chinese companies to invest $1 billion in the Khalifa Port Free Trade Zone (KPFTZ) and established an in-house China desk, staffed with Chinese nationals.
At FWC 2018، we presented the recentlylaunched KIZAD Logistics City, which we developed to respond to the needs of distributors, manufacturers, shippers and logistics companies. We have expanded
In March this year, we also signed a MoU with Emirates Global Aluminium (EGA), the UAE’s aluminium conglomerate, to work together to develop opportunities for Abu Dhabi Ports.
H ow e f f i c i e n t ly h a s Fu j a i ra h Terminals, the only multi-purpose port on the Eastern seaboard of the UAE, been able to offer shipping lines seamless transshipment options and an excellent platform to especially serve the Indian Subcontinent? Abu Dhabi Ports signed a 35-year concession agreement with the Port of Fujairah in 2017, enabling us to develop port infrastructure, including making berths deeper to accommodate bigger vessels, and manage operations. Fujairah Terminals will offer shipping lines seamless transshipment options to serve the Indian subcontinent through increased capacity (expected to reach 1 million TEUs and 700,000 tons of general cargo by 2030), connectivity between Khalifa Port, Zayed Port and Fujairah Port, and possible links to KIZAD and Etihad Rail as well. We have witnessed in the first half of 2018 a significant growth in operations with a two-fold increase in roll on/roll offcargo handling, compared to the same period last year. In addition, general cargo handling increased by 66 per cent whilst container handling services and number of cruise ships rose to 5 per cent.
What are the crucial challenges you foresee in the global maritime industry in near future? What will be your ideal strategies to overcome them? The challenge for our industry is to keep up with the rapid change of pace, and to harness the benefits of new technologies whilst mitigating the risks. That is why one of our key strategic pillars is investment in the latest technologies that will increase the efficiency of how we move and store goods. Sustainability is another key challenge. In a world of diminishing resources and climate change, organisations must step up to ensure that its operations are as sustainable as possible. To that end, we are proud of the sea water cooling and desalination system in KIZAD, which supports heavy industries and ensures water pumped back to sea is fully cooled and does not harm marine life. CC
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guestcolumn
Impact of Gst on Warehousing Hence, while it may look like there is a reduction in warehousing requirements, it is more a case of restructuring for an efficient operating environment. GST has promoted efficient and larger warehouses which are expected to have economies of scale and larger floor space utilization for storage efficiency.
Sushant Sarin
G
ST integrated the country into a common market by breaking down barriers across states and enabling smooth flow of goods from one state to the other. It subsumed various indirect taxes levied by the Centre and the states to bring in a uniform pan-India indirect taxation system. Indian warehousing industry is pegged at about 55,000 crores and implementation of GST in July 2017 has already started re-shaping the industry. The most prominent impact of GST on the warehousing sector will be to spawndifferent distribution model from the traditional clearing and forwarding (C&F) distributor-based models. Previously, the Centre and the States levied taxes and the tax rate for most goods worked out to be 26.5% (Cenvat of 14%, and VAT of 12.5%). Post GST implementation, the same has reduced to standard rate of 12% or 18% which is levied on most goods and all services. On account of various indirect taxes under erstwhile regime, companies had to set up warehouses in almost every state. Since the uniform GST does not require this, smaller warehouses are getting downsized, while capacity is being increased to as much as 40% in the larger ones. Under the new tax regime, the strategy of large companies is that of consolidation followed by expansion.
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Consolidated warehouses would benefit from technological applications by implementing state-of-the-art planning and warehousing systems which are not possible in smaller and scattered warehouses. Demand and supply is shifting from inefficient, low quality redundant warehouses to large, good quality warehousing. All pharmaceutical, FMCG companies, consumer durables and consumer electronics are looking at consolidation in warehousing. As of 2017, the total combined warehousing space was 150 million Sq’ft which is expected to jump to 320 million Sq’ft. GST has also played a pivotal role in enhancing the hub and spoke model and growth of the Multi Modal Logistics Park (MMLP), due to which around 25 new MMLPs will be developed in the next few years. Warehousing and logistics have emerged as one of the biggest growth areas post GST. India’s logistics and warehousing sector is rapidly transforming. . Major impact of GST implementation on warehousing in India can be summarized as: 1.
Reduction or elimination in number of small-time, inefficient, high cost warehousing
2. Logistics: With companies opting for one or two major warehouses, the logistics will move towards hub-&-spoke model, wherein
bigger but fewer trucks will move cargoes between manufacturing units & warehouses. This will increase shipment values. Flow of goods is expected to get quicker with reduction in turnaround time. 3.
Technology: Consolidated warehouses would be bigger in size with huge inventory at a central location. Warehouse Management Systems (WMS) and modern robotics would get adopted for large warehousing hubs.
4. Costing: With lesser number of tolls and check posts, businesses will have overall cost benefits. Reduction in total number of warehouses and automation of large ones will help companies streamline distribution, improve efficiency and save costs. The major beneficiaries will be E-commerce, consumer electronics, automotive, pharmaceuticals and FMCG players who can now own or lease larger warehouses at major locations such as Mumbai, Delhi, Indore, Chennai, etc. Fewer stocking points will free up inventory. For safety of high value storage, warehouses will need to be RCC framed structures, with good quality fire retardant electricals and adequate fire extinguishing appliances. While investing in insurance for the stocks, care will have to be taken to cover the large value shipments adequately as much as the large buildup of stored stocks too. Logistics companies & 3PL providers have taken the lead and till 2020, we should be looking at a new era of warehousing & complete turnaround of supply chain management. (Authored by Sushant Sarin, Executive Vice President - Commercial Lines, TataAIG)
APPAREL 20 CONNECT 19
APPAREL LOGISTICS CONFERENCE
MAY 16, 2019, SHANGRI – LA’S EROS HOTEL, NEW DELHI
200+
DELEGATES
5
PANELS
40
SPEAKERS
NETWORK WITH Export Houses, Clothing Brands, LSP’s / Freight Forwarders, Warehouses, Logistics Parks, Shipping Lines, Airlines, Airports, Ports, Terminals / Depots, 3 PL/ 4 PL service providers, Post and Parcel Companies, Skill Development Sectors, Transportation Companies, Technology & solution providers, Regulatory Bodies, Cargo Terminals, Associations, Banks and Investors, Academicians, Research Companies, Government Policy Makers Witness the leading voices from among Policymakers, Industry Players in the segment, Academicians & Researchers, as they discuss debate and ruminate on how the supply chain of this segment will be reshaped with the phenomenal growth and opportunities in India. Also on, how India is positioned to take advantage of the enormous changes in status quo disruptions, technology and practices in the apparel supply chain.
INDIAN APPAREL MARKET 2020 Among the emerging markets, India is quickly becoming a preferred destination for international apparel brands. Indian apparel market is calculated to grow at a CAGR of 13% and is predicted to reach approximately USD 124 billion by 2020.
APPAREL CONNECT 2018
180 Delegates 30 Speakers Sponsors, Partners & Supporters
Ajeet Kumar: + 91 9810962016 ajeet@surecommedia.com | Smiti Suri: + 91 9711383365 smiti@surecommedia.com Mehuli Choudhury: + 91 9810730347, 8700292866 mehuli.surecommedia@gmail.com Parminder Singh: +91 9870212244 parminder.surecommedia@gmail.com Rahul Arora: + 91 9899211616 rahul.surecommedia@gmail.com
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.
Now locate where your truck should be!! Locus Locus aims to solve problems such as scheduling, tracking, and managing an on-field fleet in the on-demand and hyperlocal industry. The startup helps traditional logistics businesses with services like hyperlocal delivery, intraand inter-city logistics, automated smart dispatches, tracking and fleet visualisation, geocoding, and route deviation engine. It manages everything from dispatching, route optimisation, and real-time driver tracking to managing on field workforce to sending SMS alerts to customers.
Empowering Indian Transporters 4TiGO 4TiGO provides a common tech platform along with complementary business services. The startup is on a mission to empower the Indian goods transportation industry ecosystem through technology and the power of networking. The Truck Network, facilitates its participants to break away from the constraints arising out of the opacity & inefficiencies of the current eco-system. The 4TiGO platform empowers its participants with knowledge, technology and confidence in their ability to fund and manage their business effectively and efficiently.
Expert in pooling
LEAP India
The company is floated by a group of professionals with multi-functional experience. It varies from strategic management, business and operations management lumber sourcing, distribution business, channel marketing, sales and supply chain.
LEAP stands for “Leading Enterprise in Advanced Pooling�. The founder Sunu Mathew has nearly two decades of work experience at various levels. He always wanted to combine his sales and supply chain experience in order to create a solution-based organization. This triggered the birth of LEAP India. LEAP’s business is of returnable packaging and pooling of equipment namely; wooden pallets, plastic containers, wooden boxes and metal wire mesh catering to all sectors which uses this equipment to store or transfer products from one location to another.
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Technology
Upbeat to steer driverless trucks in India
A
driverless car on Indian roads may still be a distant dream, but companies are actively looking at ways to use other autonomous vehicles like tractors, buses, trucks, and even choppers. German logistics giant DHL, for instance, feels driverless trucks can halve logistics costs and improve customer service. About 65 per cent of logistics movements in India happen by road and about 85 per cent of these are in the unorganised sector; typically, a driver takes a truck for a long distance, and has to make stops for rest and food, which reduces the efficiency of truck use. Malcolm Monteiro, CEO, DHL eCommerce India, said the initial discussions with the Indian government over driverless technologies have been positive. “The government is favourable in terms of looking into it because it does realise there is a tremendous shortage of skilled drivers. So it will look at any technology to make sure the demand side is addressed.” Well, if that happens, definitely it will bring in a lot of reliability into the system, besides reducing cost. Then probably the industry will not have to work on a hub-and-spoke model; the industry can even work point to point. However, Moteiro said the company will test the safety aspects of driverless technologies in Germany before beginning pilots in India to ensure there is no scepticism about the technology here. DHL, however, is taking it one step at a time. “For a vehicle to be autonomous, driven fully, one of the first things that needs to happen is the electrification; we have a concrete target for electrification. And for autonomy to happen, we need everything electric. So, we are really focussing more of our efforts to electrify all our vehicles as a first step,” said Pang Mei Yee, Vice-President, Head of Innovation, Asia Pacific, Customer Solutions & Innovation, DHL. Yee feels these technologies can make the existing trucks a lot safer and more efficient even as the company prepares itself for a fully autonomous future. “Our smart trucks are a fantastic example where we are introducing a lot of optimisation efforts, notification to drivers for their behaviours. There are sensors that allow drivers to get reminded when they are eating while driving or when they are dozing off. So, progressively you’ll see intelligence built into the truck. Full autonomous vehicles are still some time off,” Yee added.
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UPS announces full ownership of express services unit in India
Saudia Cargo is committed to develop cargo facilities: Omar Hariri
UPS has announced further investment to attain full ownership in its express services unit in India. The company previously held a majority position in an express services joint venture, which exclusively served UPS’s international express small package shipping business in India. UPS’s move to obtain full ownership, along with planned network upgrades, demonstrates the company’s commitment to invest strategically in high-growth international markets and countries with expanding economies such as India, one of the world’s fastest growing economies. “In recent years, India has emerged as a key player in the shipping and logistics sector and UPS is poised to play a leading role in supporting international trade and supply chain related needs,” said Rami Suleiman, UPS President for Indian subcontinent, Middle East and Africa (ISMEA). “Full ownership in our international small package express business in India will position UPS for its next phases of expansion in India and the region,’’ added Suleiman.
At the second Supply Chain and Logistics Conference held in Riyadh, Saudi Airlines Cargo Company CEO Omar Talal Hariri reiterated the pivotal role the air cargo sector continues to play in achieving the objectives of Vision 2030 aiming to turn the Kingdom into a global logistics hub for goods transport and cargo services. The local air cargo sector, he stressed, is committed to improving all handling facilities, and this is exactly what Saudia Cargo has done lately by launching new projects to develop and construct the infrastructure facilities of Jeddah and Riyadh cargo stations. Hariri lauded the efforts and plans that resulted in reducing import and export documentation and procedures by 75 per cent, an action which will surely enhance the efficiency of logistics services and speed up the accomplishment of the objectives of the Kingdom’s digital transformation.
PSA JNPT terminal targets transshipment with new call
BUD, DUS & HAM Promoting Cost Effective European Gateways
PSA International’s new Bharat Mumbai Container Terminals (BMCT) is increasing its pro-trade efforts to generate more volume, as competition among terminals at Jawaharlal Nehru Port Trust (JNPT) — India’s busiest container gateway — intensifies. BMCT, which officially opened in February, has added a fortnightly coastal service from domestic shortsea ship operator Shreyas Shipping and Logistics. The first such call at BMCT was made by the 1,613-TEU MV SSL Mumbai. The Pan India Express 1 (PIX 1), designed to connect east and west coast regions, rotates BMCT (JNPT), Cochin, Tuticorin, Mangalore, Mundra, Hazira, and BMCT. PSA said the coastal call at BMCT provides shippers with options for transportation of domestic cargo and export-import transshipment freight, with the latter’s significance underscored by a cabotage rule change implemented on May 21.
Budapest (BUD), Düsseldorf (DUS), and Hamburg (HAM) airports have joined forces to promote their cargo operations under the slogan “Connect Differently”. Budapest Airport in Hungary last month started construction of its 20,000 sq m Cargo City, part of its EUR160 million Development Program called BUD2020. The hub, which saw a 39 per cent increase in cargo volumes from 2015 to 2017, handled 141,500 tonnes of air cargo in the period from October 2017 to September 2018. Düsseldorf Airport Cargo GmbH is also investing in two customised airside temperature controlled dollies for the transport of pharmaceutical goods from its 12,700 sq m Cargo Processing Area (CPA) to the aircraft. DUS has a 450 sq m cool storage for perishables and pharmaceuticals with temperature ranges from 2C to 8C and from 15C to 25C, with another 800 sq m storage facility under construction.Hamburg Airport in Germany has invested around EUR50 million in the new Hamburg Airport Cargo Centre (HACC). With efficient operational processes, a direct connection to the apron, and a multi-user concept, the HACC, which opened in 2016, is ideally suited to provide efficient, tailored logistics solutions – with a total capacity for around 150,000 tonnes of freight per year.
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news
Fate of Major Port Authorities Bill is unclear A much-awaited plan to convert 11 of the 12 Central government-owned ports that are currently run as ‘trusts’ into ‘authorities’ through a new law is now down to the wire. A perception is also gaining ground that the government is “not serious” about the plan after taking the process almost to the finishing line. The fate of the Major Port Authorities Bill — the biggest structural reform of the major ports in more than five decades — hangs in the balance with only the winter session of Parliament offering a small window of opportunity to get it passed before the country goes to the polls to elect a new government in May next year. Shipping Minister Nitin Gadkari gave a cryptic reply when a leading media group, The Hindu BusinessLine asked him on the chances of the Bill getting approved by Parliament in the upcoming winter session. “Mujhe malum nahin (I don’t know). It all depends on how the Lok Sabha and Rajya Sabha are going to function,” he said recently in Mumbai.
JNPT planning to acquire three ports in Maharashtra The largest container port JNPT is mulling to acquire three ports in Maharashtra, as it targets to more than double its profits. The Jawaharlal Nehru Port Trust (JNPT) is also going ahead with its efforts to develop an offshore port at Wadhawan, north of the financial capital. Union Shipping and Ports Minister Nitin Gadkari told PTI that the JNPT, which handles more than half of the overall container traffic, is looking to acquire Vijaydurg, Revas and Dighi ports. It can be noted that of the three, only Dighi is an operational port while the other two are concessions held by corporations with little or no development on the ground. Gadkari said the Revas port, where the concession is held by Reliance Industries, is “in problem” and a solution will have to be found in co-ordination with the Maharashtra government. The minister also said that the port is in talks to acquire Vijay Kalantri-promoted Dighi Port in Raigad district, which is facing financial trouble and has been undergoing resolution in insolvency courts. According to reports, the Dighi Port owes over ` 1,600 crore to a consortium of banks led by the Bank of India.
news
India on the path of becoming 3rd largest aviation market by 2024: IATA India will become the world’s third largest aviation market around 2024 surpassing the UK, global airlines’ body IATA said on Wednesday as it projected total air passenger numbers to touch 8.2 billion in 2037. Releasing the latest update to IATA’s 20-year Air Passenger Forecast, the grouping also cautioned that growth prospects for air transport and the economic benefits driven by aviation could be curtailed if protectionist measures are implemented by governments. The present trends in air transport suggest passenger numbers could double to 8.2 billion in 2037, the International Air Transport Association (IATA) said. The Asia-Pacific region is projected to drive the biggest growth with more than half the total number of new passengers over the next 20 years coming from these markets. The growth is being driven by a combination of continued robust economic growth, improvements in household incomes and favourable population and demographic profiles, it noted. According to the IATA, China would displace the United States as the world’s largest aviation market in the mid-2020s.
Aviation market is defined in terms of traffic to, from and within a country, as per the grouping. “India will take 3rd place after the US, surpassing the UK around 2024. Indonesia is forecast to be a standout performer - climbing from the world’s 10th largest aviation market in 2017 to the 4th largest by 2030,” it said.
Inland water transportation between India and Bangladesh set to get new boost India and Bangladesh recently discussed various issues pertaining to the protocol arrangements and improvement of inland water transportation between the two countries in the 19th Standing Committee meeting under ‘Protocol on Inland Water Transit and Trade’ (PIWTT) held at New Delhi. The meeting was attended by high level delegations that included representatives of Ministries of Shipping, External Affairs, Home, Finance, DONER and Inland Waterways Authority of India (IWAI) and officials from Bangladesh belonging to Ministry of Shipping, Board of Revenue, DG (Shipping) and Bangladesh Inland Water Transport Authority (BIWTA). The two sides agreed to consider inclusion of Rupnarayan river (National Waterway-86) from Geonkhali to Kolaghatin West Bengal in the protocol route. They also agreed to declare Kolaghatin West Bengal and Chilmari in Bangladesh as new Ports of Call. The new arrangement will facilitate movement of flyash, cement, construction materials etc from India to Bangladesh through IWT on Rupnarayan river. Further, both sides agreed to declare Badarpur on river Barak (NW 16) as an Extended Port of Call of Karimganjin Assam and Ghorasal of Ashuganj in Bangladesh on reciprocal basis. The Indian side proposed for extension of the protocol routes from Kolkata upto Silchar in Assam. In another critical understanding between the two countries,
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the standard operating procedure for movement of passengers and cruise vessels on Inland Protocol route and coastal shipping routes have been finalised. These river cruise services are likely to commence between Kolkata – Dhaka and Guwahati – Jorhat and back. It was also agreed that a Joint Technical Committee will explore the technical feasibility of operationalisation of DhulianRajshahi protocol route upto Aricha and the reconstruction and opening up of Jangipur navigational lock on river Bhagirathi. It was also decided that a Project Management Consultant for supervision and monitoring of dredging of Ashuganj-Zakiganj and Sirajganj-Daikhowa stretches of Indo-Bangladesh Protocol Route in Bangladesh will be engaged with 80 percent financial contribution from India and rest by Bangladesh.
The Highest Circulated/Read & Referred Logistics Industry Magazine
news
Zebra unveils Enterprise Mobile Touch Computing Solutions
BIAL introduces automated passenger screening system
Zebra Technologies Corporation has unveiled the next generation of enterprise-class handheld mobile touch computers designed to help retail, manufacturing and transportation and logistics companies empower their front-line workers to deliver a superior level of customer service and satisfaction. The new TC5x and TC7x touch computers provide businesses with the lowest total cost of ownership (TCO) in the industry by securely extending the life of the devices deployed at the edge of the enterprise through additional support and compatibility with future generations of Android, in addition to the LifeGuard solution. The new touch computers also offer technological advancements that maximise productivity, such as an ultrapowerful processor for faster application execution, innovative locationing support using Visible Light Communications (VLC) and the latest WiFi/Bluetooth® enhancements to deliver faster speeds and better range without draining battery power.
The Bangalore International Airport Limited (BIAL), which operates the Kempegowda International Airport in Bengaluru, is all set to introduce automated passenger screening systems which will reduce wait time for people at security check-points. Even it will enable families to be screened together. BIAL has collaborated with L3 Macdonald Humfrey (Automation) India Pvt Limited, to introduce an automated tray retrieval system (ATRS). A trial run for the initiative was conducted in 2017. “We can now process more passengers in a secure and controlled environment, improving overall operational efficiency and enhancing safety and security. In addition, passengers benefit from a quicker passage through security check-points,” said Javed Malik, COO, BIAL.
Kerry Indev Logistics planning to go public by 2021
Cabinet committee gives nod to new railway line Bahraich and Khalilabad in UP
Kerry Indev Logistics, an end-to-end logistics and distribution provider has announced its plans to go public by 2021. The initial public offering (IPO) is expected to raise funds for projects such as warehouses, nonvessel operating common carrier (NVOCC) operations, coastal shipping and related business of the company. In 2016, Kerry Logistics and Indev Logistics have been merged to expand the latter’s logistics services and solutions. Speaking on IPO, Xavier Britto, Chairman, Kerry Indev Logistics stated, “There will be no dilution of stakes between Kerry and Indev. If dilution occurs, it will be shared on equal basis.”
The Cabinet Committee on Economic Affairs (CCEA) approved a new railway line between Bahraich and Khalilabad in Uttar Pradesh. “The new line serves five districts of Uttar Pradesh including four aspirational districts -- Bahraich, Balrampur, Shravasti and Siddharth Nagar and Sant Kabirnagar,” the ministry said in a statement. The project will generate direct employment for about 57.67 lakh man-days. Estimated to cost `4,939.78 crore, it will be completed by 2024-25, the statement said. This line is significant for tourism as it passes through Shravasti district which is an important tourist place and is closely associated with the life of Gautam Buddha.
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Maersk Line adds Ennore in its network
Aiming to improve its service offering and optimise its Indian Network, Maersk recently started its services from Kamarajar/Ennore port, located fifteen miles north of Chennai, India. “Port Ennore has the potential to be the new gateway of South India, and we are geared up to support our local customers to move their cargo to and from markets around the world,” said Steve Felder, Maersk managing director for South Asia. Captain Sandeep Mehta, president of Adani Ports and SEZ, welcomed Maersk to Ennore and said, “I hope that this would be the beginning of a long-term collaborative partnership between us and Maersk.”
Guwahati airport all set for international connection The Union ministry of civil aviation has cleared an international air connectivity scheme, which will connect Guwahati airport with seven countries. Under this scheme, flights will operate from Guwahati to Singapore, Bangladesh, Bhutan, Nepal, Myanmar, Malaysia and Vietnam. The government will provide viability gap funding of operations of Rs 100 crore for three years. Additional chief secretary to industries and commerce department of Assam, Ravi Capoor said, “AAI on behalf of the ministry of civil aviation and government of Assam, has invited bids for selection of airlines under the UDAN scheme.”
IIFF starts admission for Distance Learning Course
SpiceJet targets to expand overseas
Indian Institute of Freight Forwarders (IIFF), a training arm of Federation of Freight Forwarders Associations’ in India (FFFAI), has announced admission for Distance Learning Course in Diploma in Logistics, Shipping and Freight Forwarding for year 2018. The Institute had launched its first distance open learning course in 2016. This course is expected to pave the way for further digitisation of the FIATA diploma and set a milestone in the Indian education market. The IIFF FIATA Diploma in Logistics, Shipping and Freight Forwarding consists of a set of specialised modules and content (as attached herewith) that applies directly to the different areas of work related to customs, freight forwarding, sea, air, road, rail transport and logistics business.
SpiceJet is planning to expand its reach to new international destinations with its more fuel-efficient Boeing 737-8 MAX planes, according to the airline. The airline, which has inducted its first 189-seater B737-8 MAX aircraft, stated that the plane can fly non-stop to Singapore, Doha (Qatar), Kuwait, Abu Dhabi (UAE), Riyadh (Saudi Arabia), Kuala Lumpur (Malaysia), Tehran (Iran), Salalah (Oman) and Kunming (China), among other destinations, from various Indian airports. “With a one-stop, the aircraft can easily fly up to Finland, Norway, Morocco, London and Amsterdam,” the airlines said.
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Indigo launches operations to Kuwait and Abu Dhabi
IndiGo has commenced operations to Kuwait and Abu Dhabi, further enhancing air operations between India and the Gulf region. The carrier already operates 13 daily flights to Dubai and another four to Sharjah, with Kuwait and Abu Dhabi becoming its 10th and 11th international destination, respectively. As part of its new operations, the airline will operate a daily flight from Kochi-Abu Dhabi which started from October 15, and another daily service from Kozhikode-Abu Dhabi from October 16. Operations between Kuwait and Chennai also commenced on October 15.
Halwara to get international airport
The Centre has approved the proposal of setting up of an international airport at Halwara, 32 km from Ludhiana. The development came after chief minister Captain Amarinder Singh sent a proposal to the Centre for permitting civilian flights from Halwara Air Force Station. Recently, a team of officers of Airports Authority of India (AAI) visited Halwara for a survey and also prepared a detailed report on the project, which will be submitted to the Punjab government. The AAI has also included Halwara in the list of unserved airports under UDAN scheme. In the third round of bidding for regional connectivity scheme (RCS), airlines will be invited to bid for starting operations to and from Halwara.
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New Domestic Terminal Building to be constructed at Patna airport
Saudia Cargo signs employee development agreement with Gallup Inc.
The Cabinet Committee on Economic Affairs has approved the construction of a New Domestic Terminal Building and other allied structures at Patna airport at an estimated cost of `1,216.90 crore. After construction of the New Terminal Building, the passenger handling capacity of the airport shall enhance to 4.5 Million Passengers Per Annum (MPPA) from existing 0.7 MPPA. 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 a part of the ‘Package for Bihar’, announced by the Prime Minister Narendra Modi. Patna airport is one of the major airports in the eastern region. The existing terminal building of the airport is currently operating at four times of its capacity.
Saudi Airlines Cargo Company has signed an agreement with Gallup Inc., the global management consulting company, for developing Saudia Cargo employee performance and studying its employee trends and performance levels. The agreement comes in line with the company’s Strategy 2020. Saudia Cargo , CEO, Omar Talal Hariri said the company attaches great significance to the development of its human capital, which is its greatest asset, and also aims to turn the Kingdom into one of the major global logistics platforms in line with Kingdom’s Vision 2030. “The agreement aims to create and implement clear strategy and vision to increase the company’s client base and launch an internal program speeding up the implementation of the transformation strategy and creating conducive environment that enhances culture of sharing. Gallup will provide consultations to executive officers and directors of departments to help them achieve and surpass the expectations of clients,” Hariri said. The three-year agreement will help Saudia Cargo enhance its vision and values and meet the expectations of staff members while retaining capable staff members who can support the achievement of the company’s objectives
Indian Railways signs MoC with ‘Russian Railways’
AIMTC mulling on indefinite strike after Diwali
A Memorandum of Cooperation has recently been signed between India’s Ministry of Railways and the Joint Stock Company ‘Russian Railways’ on the sidelines of India-Russia Summit. The MoC intends to carry forward the activities taken up under the MoU signed between the two countries in December, 2015. The Memorandum of Cooperation includes points like the implementation of speed up gradation project of NagpurSecunderabad section; setting up of single traffic control centre for managing mixed traffic at local level; best practices in freight cargo operation; development of multi modal terminals; and exchange of best technologies being practiced by the two countries; and training and advanced qualification improvement of Indian railway employees with the involvement of Russian railway-related higher education establishments. The cooperation agreement was signed by railway board chairman Ashwani Lohani from Indian side and Oleg Belozerov, CEO & chairman of Russian Railways.
Pointing out that none of its demands have been met almost three months after an assurance from the government, transporters union — All India Motor Transport Congress (AIMTC) — has said it will decide on launching an indefinite strike after Diwali. The union’s three main demands were a lower third-party insurance rates, lower diesel prices and seamless movement of trucks by paying one-time toll payment through an alternative payment mechanism. “Members have agreed to have a strike. We are going to the district level to garner support,” Kultaran Singh Atwal, Chairman, said. “We were assured by the government that third party insurance rates will be dropped to 15 per cent from 26 per cent. We were also asked to meet the insurance regulator – Insurance Regulatory Development Authority,” Atwal said. “There has been no movement on any of these demands. Also, a high-powered committee was formed, which has met just once,” said SK Mittal, President, AIMTC.
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news
RO-PAX ferry service set to sail between Saurashtra and Dahej
Trade relations of India and Bangladesh strengthened
The 650-crore Ro-Pax ferry service project to connect Saurashtra and Dahej in Gujarat is set to start today after a successful trial run. The Gogha- Dahej Ro-Pax ferry service project with a capacity to carry 500 passengers along with 100 vehicles would reduce the travel distance. The land route between the two places involves a 294 km or 8-hour drive, the Ro-Pax service reduces this distance to just 31 km and travel time reduced to 1.5 hours. The vessel ‘Voyage Symphony’ will sail for its maiden journey from Ghogha to Dahej with passengers as well as multi-wheeled cargo. It has a capacity to load 60 trucks, 5-7 buses, 35-40 cars, 40 bikes and a cumulative capacity to carry 525 passengers on board per voyage. The operator, Indigo Seaways Pvt Ltd, an arm of Surat-based Detox group, has entered into an exclusive PPP agreement to ply on the given route and has a revenue sharing contract with the Gujarat government’s ports authority, Gujarat Maritime Board (GMB).
A cruise service will be launched between Kolkata and Dhaka from March next year, an operator who will launch the service informed to the media. The cruise operator, Exotic Heritage Group, has already booked the service for five years. Exotic heritage group already runs cruises on River Ganga. “The bookings are already done for five years,” Raj Singh, Group Chairman, Exotic Heritage Group, told to a leading daily The Hindu BusinessLine. Singh said this on the sidelines of a conference where India and Bangladesh signed an agreement to use Chattogram and Mongla Ports in Bangladesh for movement of goods to and from India. Both the countries also decided to initiate river cruises services between Kolkata- Dhaka- Guwahati-Jorhat. Speaking to the media, Shipping Secretary Gopal Krishna said the move will strengthen trade ties between the two neighbours.
India’s first engine-less train – Train 18 starts trial run
Adani Group looking forward to invest in Bangladesh ports
Train 18, the country’s first engine-less train which is being regarded as a successor to the 30-year-old Shatabdi Express, has started its trial run from October 29. Driven by a selfpropulsion module san a separate locomotive, the train, capable of running at a speed of up to 160 kmph, comes with technical features for enhanced quick acceleration. The swanky 16-coach prototype without a locomotive (engine) will cut travel time by 15 per cent compared to the Shatabdi. Developed by the city-based Integral Coach Factory in 18 months, the full AC train is designed in such a way that passengers can have a look at the driver’s cabin. ICF General Manager Sudhanshu Mani told PTI that it cost nearly Rs 100 crore to build the prototype and subsequent production would bring down the cost. “After the launch, it will do three to four days of trial outside the factory and then will be handed over to (RDSO) for further trials,” he said.
Adani Group is eyeing investments in Bangladesh ports through privatepartnership, according to senior executives. It is exploring possibilities to invest in Chittagong Port’s proposed Bay Terminal, a deep terminal proposed to be developed near the port. Asian Development Bank is considering funding the terminal, which is expected to handle coal. This terminal is also on the top priority of Bangladeshgovernment’s infrastructure roadmap. Bangladesh is expanding its congested Chittagong Port. It is inviting private investment through public-private-partnership to further develop the port infrastructure. On Thursday, an Adani Group executive expressed interest in making an investment in the concerned terminal before visiting Bangladesh shipping and trade delegation. The delegation was here for a Secretary level talks between India and Bangladesh. However, questions sent to the company remained unanswered. Adani Group’s port arm – APSEZ – has invested in several terminals in India along east coast including Dhamra, Ennore and Katupalli. It has investments in ports, power, energy and real estate and is also present in Haldia, West Bengal.
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news
Saudia Cargo Launches Fly Express Service
Saudia Cargo has launched Fly Express, offering high priority express delivery for urgent international shipments. The service offers early booking via the email, flyexpress@ saudiacargo.com for airport-to-airport delivery up to 300 kilos per shipment, as well as a money back guarantee for an added cost if it does not deliver on time. Fly Express service is an added value service that offers customers high priority status for shipments that can be accepted three hours prior to the scheduled time of departure, alongside quick handling procedures at arrival. Clients will be able to benefit from Fly Express in Brussels, Amsterdam, Frankfurt, Milan, Paris and London inbound to Saudi Arabia, with Hong Kong joining in December 2018, followed by additional locations.
NTPC begins transporting fly ash through inland waterways
In a first, fly ash has successfully reached Pandu Port in Assam via Bangladesh, making the longest haulage in inland water transport movement. The fly ash from NTPC, Bihar was transported by Inland Waterways Authority of India (IWAI) to Assam through serpentine routes of rivers and sea via Bangladesh before reaching Pandu port. About 1,235 of Fly Ash was transported from NTPC Kahalgaon to Pandu Port via Kolkata through National Waterways 1 and 2 via Indo Bangladesh Protocol (IBP) route. “This endeavour will also establish the water highway route from Kahalgaon to Pandu in Assam via Bangladesh border helping transportation of other goods also,� said NTPC.
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APPOINTMENTS Vineet Gulati joins as member air navigation services at AAI
CEVA Logistics’ new MD Guillaume Sauzedde
Vineet Gulati has taken charge as the member air navigation services (ANS) on the board of the Airports Authority of India (AAI). Prior to his appointment as ANS member, he has served at AAI in various capacities, as executive director (air traffic management), general manager (air traffic flow management) and air traffic controller in ATC centers at various international airports. He has been mainly responsible for implementation of air traffic flow management (ATFM), management of air traffic services, development of aeronautical survey, aerodrome licensing and ANS integrated planning group (IPG). He was also responsible for the establishment of R&D wing of ANS.
Guillaume Sauzedde has been appointed by CEVA Logistics as MD of its Central & Eastern Europe cluster. He will be reporting to CEO, Xavier Urbain. Sauzedde, who succeeds Piotr Zborowski will be based in Warsaw, Poland. He brings in more than 20 years of experience across the logistics industry to his new role. Prior to joining CEVA Logistics, he was MD for Kuehne & Nagel in Poland where he had full responsibility across all business lines including air freight, ocean freight, ground, and contract logistics.
Gary Wilson is the new MD of B&H Worldwide
Saudia Cargo appoints chief ground handling officer
Gary Wilson has been appointed as the new managing director of B&H Worldwide. Wilson has spent the last three years working closely with B&H’s Group CEO Stuart Allen on shaping the group’s strategic development including current initiatives to increase the B&H presence and services in Europe ahead of Brexit, expansion of B&H’s hub in Miami and the further expansion of the company’s 24/7 Control Tower in Asia. He will continue to be based from the company’s London Heathrow headquarters.
Saudia Cargo has appointed Abdulrahman Al-Mubarak to lead the airline’s ground handling business unit. The appointment of Al-Mubarak as chief ground handling officer is part of Saudia Cargo’s recognition of the important role its ground handling business unit has in achieving its Strategy 2020 transformation program. Prior to joining Saudia Cargo, Al-Mubarak held several executive positions including GM- Cargo and Logistics at GACA and Executive Director Traffic and Logistics Development at Dammam Airports Company.
Sunil Bhaskaran appointed as AirAsia India’s MD
Yedery new RH- Marketing & Sales at Cathay Pacific
AirAsia India, has appointed Sunil Bhaskaran, a Tata Steel veteran as the new chief executive and managing director. Bhaskaran will take up the role with effect from 15 November and oversee the next phase of expansion and growth, AirAsia India said in a statement. Currently, Bhaskaran is the vice president corporate services at Tata Steel and is based in Jamshedpur. AirAsia India has been without a chief executive since June when Amar Abrol quit due to personal reasons.
Cathay Pacific Airways has appointed Anand Yedery as the airline’s new Regional Head- Marketing & Sales for South Asia, Middle East & Africa. Yedery will be responsible for overseeing the business of Cathay Pacific and Cathay Dragon Passenger sales in the said regions and will be based in Mumbai, India. Since 2014, Yedery has been the Regional Cargo Manager – South Asia, Middle East and Africa and was heading the business and operations of Cathay Pacific cargo in these three regions.
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AUTOCONNECT 2018 registers huge success
Surecom Media’s another flagship event AUTOCONNECT 2018 – Automotive Logistics Conference was convened at The Westin Pune Koregaon Park on October 15, 2018. More than 220 automotive industry professionals from around the country participated in the event. Four intriguing panel discussions were held in the conference which touched each and every aspect of India’s automotive supply chain. Ajeet Kumar, Sureom Media’s Director, provided the opening remarks and noted the organisation’s commitment to delivering first-rate logistics conferences to the entire industry. The conference formally commenced with the lighting of lamp by dignitaries- Vipul Nanda, President, Car Carrier Association; Mandeep Walia, Head- SCM & Logistics, Man Trucks India; Om Vijayvargiya, Head- SCM & Logistics, Schaeffler India; Fabio Soares Freccia, Vice President- Logistics, Volkswagen India; Syrus Vasania, Director- SCM & Logistics, General Motors; and Smiti Suri, Publisher- Surecom Media. Spoton Logistics; Om Vijayvargiya - Head – Supply Chain Management & Logistics, Schaeffler India; Manu Raj Bhalla, Director & Global head- Contract Logistics & Supply Chain, Freight Systems, and Mandeep Walia, Head- Supply Chain Management & Logistics, Man Trucks India, who converged to discuss on how to propel India’s automotive supply chain to world-class performance levels.
The 1st panel discussion of the conference on ‘The Indian Automotive supply chain tapping the growth - Preparing for the future’ highlighted the latest trends, approaches and directions in construction of the Indian Automotive supply chain, and how to foster national and interdisciplinary collaboration for consolidating its functioning. The panel saw eminent speakers- Krishnadhasan, Manager - Vehicle Logistics Operations, Ford Motor; Uday R Sharma, Director - Sales,
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events In the 2nd panel discussion, Aditya Shah, Executive Director, V Trans India; Jayaprakash Loganathan, Senior Manager- SCM, JK Fenner India; Naresh Kundlas, Managing Director, Wallenius Wilhelmsen Solutions; KV Verma, Materials Manager, DURA Automotive Systems; Fabio Soares Freccia, Vice President - Logistics, Volkswagen India; and Abhishek P Rao, DirectorGroup Sales & Marketing, Varuna Integrated Logistics, brainstormed on the issues pertaining to ‘Inbound Logistics’. The wide canvas of questions that were debated ranged from basic issues like storage and packaging, personnel management, due diligence, regulatory audits, to complex ones such as greater standardisation and visibility, network design and planning, etc. Director, Crystal Indus & Logistics Parks; Sushil Rathi, Chief Operating Officer, Mahindra Logistics; and Vishwas Vaidya, Director- Engineering Hardware and Services, Minda Corporation Limited, who briefed on the changes taking place in terms of mechanisation and automation in the industry and how companies face no challenge in accessing the latest technologies. The conference concluded with a delectable dinner and bohemian cocktail treats.
The post lunch session kicked off with a presentation by Vishal Mayani, Executive Director (Leasing), Indospace Development Management who informed on the availability of infrastructure space for India’s automotive supply chain and what their company has been doing to boost the segment. The session was followed by the 3rd panel discussion ‘Indian Automobile Logistics at an inflexion point’. Addressing a dozen of questions of relevance on policy changes, implementation of the GST, impetus from “Make in India,” and India’s rise on the World Bank’s Logistics Performance Index, industry leaders- Achal Paliwal, CEO, TML Distribution Company - Tata Motors; Vipul Nanda, President, Car Carrier Association; Rajinder Singh, Managing Director, Janta Roadways; MSN RAJU, Director- Business Development and Operations, PKT Indev Global Logistics; Nidhish Kuchhal, General Manager- Demand Chain Management, Mahindra & Mahindra; Vishal Mayani, Executive Director (Leasing), IndoSpace Development Management; and Vinayak V Shanbhag, Head- Strategic Sourcing, Eicher Trucks and Buses, discussed on the various factors that affect the logistics supporting India’s growing automotive sector. The last panel discussion of the conference ‘Technology Connecting the Stakeholders’ brought to the stage Kalpesh Pathak, Sr Vice President - Corporate Supply Chain Management & Business Development, Fiat Chrysler Automobiles; Prabu Nithyanandham, General Manager- Asia Pacific Logistics and Customs, Ford Motor; Bakir Gandhi, Chairman & Managing
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events
Huge footfall at FWC Exhibition; FFFAI bullish on new areas for logistics business About 50 exhibitors from the cross section of international logistics industry have participated in the FIATA World Congress 2018, held from September 26-29 at Pullman Hotel, in Aerocity, New Delhi. The Exhibition was formally inaugurated by Vandana Aggarwal, Economic Advisor, Ministry of Civil Aviation, Government of India. The FWC 2018 was attended by 1197 delegates from across the world and a large section of delegates visited the exhibition stalls with eager to know about logistics infrastructure facilities, products & services and connectivity available to and from India. “We are happy that the World Congress of this magnitude has been fantastically organised by us (FFFAI) in respect of arrangements, hospitality, topics discussed (contents), entertainment programmes, sightseeing/tour programmes, etc, above all B2B as compared to previous FIATA World Congresses (FWC) held in other venues in the world. Our aim was to organise this event in such an innovative way so that delegates can remember this in their minds and hearts, which never ever happened in FWC history,” said S Ramakrishna, Vice Chairman, FFFAI and Convener, FWC 2018. In his opinion, FFFAI has posed a challenge to all fu-
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ture FIATA World Congresses as far as its standard is concerned. Commenting on the number of delegates that exceeded the target Ramakrishna attributed the success to cohesive efforts by FFFAI members; all supporting trade association partners; Ministry of Civil Aviation, Commerce, Finance, Home Affairs, External Affairs and Culture; and government agencies, etc. highlighting the footfalls at the exhibition Ramakrishna maintained that huge queries were received from foreign delegates, especially from Africa and Latin America. “These two regions would be the next emerging business centres for Indian logistics companies. Same thing was noticed in B2B Business Meets also,” he added. In his opinion, FWC 2018 has displayed once again the strength of FFFAI which would further strengthen the organisation, and its position in FIATA as well as logistics industry in India. “In fact, FFFAI’s former Chairmen, Shantanu Bhadkamkar and Samir J Shah, are already playing very important roles in World Customs Organisation and International Federation of Customs Brokers’ Associations. And, it is for sure now they would go further for taking FFFAI and Indian logistics industry to greater hieghts in the international arena,” Ramakrishna concluded.
events
Korean Air Cargo felicitates top performing agents On 5th October, Korean Air Cargo invited its top agents for a Cocktail and Dinner party to appreciate their continuous support. The function was held at Tapas Lounge, Jaypee Vasant Continental, Vasant Vihar. The session kick started with a Korean Cargo product presentation by Prithviraj Singh Chug, Director-Acumen Overseas Pvt Ltd, who also spoke about the support received from the agents and about Korean air cargo’s growth in a short time span.
Sanjiv Edward, Chief Commercial Officer- Delhi International Airport Limited was the chief guest for the evening. Speaking on similar lines, he briefed on the positive growth of India and Korea relationship. At the function, top 5 agents were recognised and awarded followed by a lucky draw. The Top two prizes were - a couple ticket for Delhi-Goa-Delhi and the bumper prize was one single ticket for Delhi-Seoul-Delhi. The function came to an end with a scrumptious networking dinner.
FFFAI and Kazakhstan Embassy host Round Table on INSTC
With an objective to promote Kazakhstan-Turkmenistan-IranIndia route under International North South Transport Corridor (INSTC), FFFAI hosted a Round Table meet jointly with the Embassy of Kazakhstan at Pride Plaza Hotel, Aerocity, New Delhi on October 31. The meet was attended by members of Delhi Customs Clearing Agents Association under the leadership of its president PS Atree, and a number of leading freight forwarding and logistics companies from different parts of India to interact with their overseas counterparts and explore business opportunities. Speakers present on this occasion were Bulat Sarsenbayev, Ambassador of Kazakhstan to India; Manish Prabhat, Joint Secretary, Ministry of External Affairs, Government of India; Samir J Shah, Past Chairman, FFFAI; Dias Iskakov, President
of JSC, Kazakhstan Temir Zholy Express; S Ramakrishna, Vice Chairman, FFFAI; Shankar Shinde, EC Member, FFFAI and other dignitaries. The event was also supported by JSC “Kazakhstan TemirZholy Express” (Kazakhstan Railway Express) and Ministry of Commerce & Industry Government of India. Moderating the Round Table Shah suggested Indian freight forwarders/logistics companies as well as logistics company representatives from Kazakhstan, Turkmenistan and Iran to utilize this platform for expansion of their horizon by exchanging mutual requirements. Shah also commended the efforts being taken by the Government of India and appealed Indian companies to explore opportunities on Kazakhstan-Turkmenistan-IranIndia route. “The main purpose of the event is to inform the Indian business community about the logistical capabilities of the Eastern branch of the “North-South Transit Corridor” and to attract Indian business circles to the wider use of this route,” said Bulat Sarsenbayev. At present Kazakhstan-India trade turnover is about $ 1 billion and he expected it to increase manifold. Prabhat in his speech underlined the collaborative efforts from the Government of India and industry stakeholders. “FFFAI has done a commendable job to promote INSTC as a viable one. Thanks to our long relationship with Kazakhstan and other INSTC countries, it is for sure that there would be a spurt in trade and logistics business transaction when this route will take its final shape in the near future,” he said. november 2018 - CargoConnect
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upcoming events India Material Handling & Logistics Show Three day event scheduled from November 6 - 8, 2018, at Oman Convention & Exhibition Centre, Muscat, Oman. The new global event for road transport, mobility and logistics, IRU World Congress is the platform for global decisionmakers to exchange ideas, debate solutions and define the future of road transport. To know more visit www.iruworldcongress.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 Chartered Institute of Logistics and Transport India Expo Scheduled from 22 - 23 November 2018, at National Rail Museum, New Delhi, The Chartered Institute of Logistics and Transport India Expo will bring the logistics and warehousing including cold chain industries together to display latest innovations and technologies, discover new trends& methodologies, and build relationships. To know more visit www.ciltindiaexpo.com India Cold Chain Show 2018 Three day event organised from 13 - 15 December, 2018, at the Bombay Convention & Exhibition Centre (BCEC), 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 Anuual Cool Chain – 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 India’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 Cyrus Katgara
Partner, Jeena and Company
What motivated you to be a part of the logistics industry? How has been your journey so far? I have inherited my family business and now our company Jeena & Company has entered in 118th year of its operations and I must say the journey has been superb. We have come a long way and earned client’s trust by delivering impeccable services in the field of global logistics.
What is the biggest challenge you have faced in your career? We have overcome several challenges successfully in our journey of more than a century. If I talk about the current business scenario, the biggest challenge is to remain compliant in all aspects of the business.
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 regulations, etc.? At its core, the role of a freight forwarder in today’s modern society is simple yet significant. If you compare the first freight forwarder in existence to one from today, the role would be essentially unchanged. Items are still being shipped all over the world and we are still an integral part of making it all happen. Nearly everything around today’s freight forwarders, however, has changed dramatically - particularly due to technology’s continuous march towards the future. Once printed press replaced pen and pencil and now it’s being supplanted by digital technology. Jeena has been investing in ERP and other relevant technologies since past two decades. We are at par with the global standards of forwarding industry. I reckon, manpower retention has become a new challenge as there are many competing industries looking for trained personnel for the purpose of recruitment. On the regulations side,
the union government is working on ease of doing business and bringing E-governance in practice. A lot of initiatives are taking place including government’s move to go paperless, which is quite commendable.
What is your success Mantra? And, whom you consider your Guru in this business? Being ethical, compliant and implementing best trade practices has been my success mantra. I admire Fred Smith, Founder, Chairman, President and CEO of FedEx.
What are your hobbies? Any management lesson you would like to give to the young generation of the industry? Apart from work, I like to play Golf and Chess. Also, I like swimming during my leisure time. Well, I have only one management lesson for the young generation of the industry; to follow the ‘Path of ethics.’ This would certainly lead them to the path of success. CC
Path of ethics certainly lead to success 96 CargoConnect - november 2018