LogisticsWeek September 16-30, 2011

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BlackBerry Ka Jawaab Nahin The performance of BlackBerry phones have not matched the grand claims of its brand promos. Its service logistics needs a face-lift.

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Event Report Driving It With Force Siemens executives explain how Drive Technologies have helped its customers increase productivity and provide better services.

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September 16–30, 2011 Editor’s Note

Intimate Logistics Dear Readers, Logistics is a back-room function. This is a commonly held perception among logistics executives both new and old at the job. That perception is changing, and changing fast. Not so long ago, Dell consumers could order a laptop of a particular design off a given list, lending an extra degree of uncertainty to the logistician’s job, till someone smart came up with the idea of interchangeable lids. Granted, smart product managers can save their logistics team from customization blues with smart ideas. But there are some areas of logistics, which have direct bearing on a company’s brand equity, like spare-parts logistics and service logistics. With auto companies launching new models and discarding old ones with abandon, where does that leave the car user who is stuck with a discontinued model? Providing spare-parts logistics for such users is the job of the logistics team — this has a direct bearing on the the consumers’ brand loyalty towards the company. Speaking of brand loyalty, Research In Motion’s service logistics, particularly, in Mumbai leaves a bit to be desired, if I go by costumer feedback, a recent media report and my own experience. Blackberry is a product that epitomizes cornercubicle status for its users, but the experience that they get (according to what one hears) at these service outlets could burst that bubble. Read the story on page 2 to learn more.

Your’s truly, Aanand Pandey Editor, LogisticsWeek

Here To Serve How do car manufacturers and ancillary companies attend to the logistics of spares, even after the vehicle model has been phased out? Jayashree Mendes Mumbai Nearly a decade ago, Daewoo Matiz abruptly pulled out of India when it faced problems at its parent company in Korea. The move left nearly one lakh cars owners in the lurch. Although General Motors stepped in to help out with spares, but by then most owners had come to rely on the grey market or the local workshops for maintenance and repair. Although car companies are diligent in offering post-sales support to its customers, the Daewoo incident was an eye-opener. At a time when companies are on the fast-track launching new models, they are also phasing out old models. So what is the service level commitment for these models? The largest car manufacturer in the country, Maruti Suzuki, has assured buyers that spares will continue to be available at its authorized service stations. Mayank Kaushik, Manager (MT-9), Supply Chain Division, Maruti Suzuki, says, “While we have an extensive service network for our cars, we also offer spares for those models which are phased out. All manufacturers support phased-out models as long as it is allowed to run on the roads, which means it has to follow norms such as BS III or IV, among others.” One company that has learnt its lessons well is global giant Fiat. In the late 90s, the company faced plenty of heat from customers for poor spare parts supply, among other issues. Today the company has emerged stronger with a slew of models and is putting its after-sales service strategy in place. On its after-sales service, Pankaj Chandak, Assistant Vice-President (Parts & Services) at Fiat India Automobiles Ltd says his company stocks about 80 percent of spares required for repairs of the vehicles which are older than five years. “Even for vehicles that have been phased out, our policy is to continue offering spares for atleast 7-10 years. We offer almost 80 percent of the parts for the older cars as most users do not need to change the balance 20 percent of the parts like seats or roof lines.”

Lending A Hand Managing the logistics of spares is the responsibil-

ity of manufacturers, as they are answerable to customers. According to a spokesperson of an auto ancillary industry, “Most manufacturers make more than one model of cars. So even if the model is phased out, it does not mean that maintaining spares are also discontinued. For instance, one variant of spark plugs would be fitted in several models, and the components supplier would continue to manufacture it, and would also be available to consumers.” The Sales Head of an MNC auto company explains the role that companies play in sourcing spares. “Before the emergence of all the new breed of manufacturers, we had few companies like Hindustan Motors, Premier, and Maruti Suzuki. The responsibility of stocking spares lay with them. Today, spares are available with dealers in the replacement market.” All vehicle manufacturers outsource parts from ancillaries, locally and globally. A decision to change specifications of newer models could make older parts defunct. “Users then resort to searching and sourcing for parts on the internet. There is also the secondary market,” adds

the Sales Head of the MNC. The lack of spares stocks with the organized sector has given rise to the grey market. Original Equipment Manufacturers (OEMs) cannot be concerned with constantly supplying or making provisions of spares for old models. They would much rather have the customers sell the old car and buy a new one. The availability of quick finance schemes is also working in their favor. A few years ago, the dearth of spares presented an opportunity to dealers in Taiwan and Korea. Having identified fastmoving parts and knowing that a particular vehicle model would be phased-out, they began exporting spares and developed tie-ups with local Indian dealers and began dumping spares into the country. But this seems to have lessened over time. Mr. Chandak says that globally manufacturers are expected to continue supplying spares for as long as 7-10 years, which is what Indian companies follow. “Here, in case of spares for phased-out models, the OEMs are asked to fix the car or support in the most suitable manner.”


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September 16—30, 2011 www.logisticsweek.com

RepoRt

BlackBerry Ka Jawaab Nahin The BlackBerry hand-set came as a status symbol. Now the owners are having second thoughts. The performance of the highly rated phones have not matched the grand claims of its brand promos. The service logistics needs a face-lift. Tell you, it is some time… Jayashree Mendes Mumbai Life is not all song for users of the BlackBerry smart phone. More often than not, the exasperated BlackBerry buyer has to track back to the seller or the nearest service center to find out what’s wrong with his prized exhibit. It’s not delivering as promised. It’s not functioning as it ought to. It has already run into corporal problems. A glimpse of the service logistics of BlackBerry can be acquired from a visit to the service center at Khar (for the more popular GSMs) in the western region of Mumbai. At any given time, the entire seating area is occupied by numerous people waiting for their complaints to be heard. The person at the counter touts that the center is constantly buzzing with human activity ranging from 150-200 complaints. Does that ring a warning bell? Consider the users of a BlackBerry. Most of them are professional consumers, or the up-market youth. When you go to the outlet, you are handed a small chit with a number. It requires a waiting of at least two hours before your number is called out. The only solace is that although the room is crowded, it is cool. While most complaints range from software to trackpad or display issues, a spokesperson at the counter assures the individual that it can be sorted out in a matter of halfan-hour. Questioned about the high rate of software problems, he shoots back, “Doesn’t your PC or laptop ever crash? If it runs on software, it is bound to crash.” Possibly, but only when it happens in moderation. An e-mail to RIM India on the number of users in Mumbai and the ample number of service centers required per density did not generate any response. However, according to the Ministry of Telecommunications website, there were approximately 114,000 BlackBerry users across the country early this

year. Considering a conservative figure of 30 percent would be Mumbai-based, it is still 34,000 users, and growing. The BlackBerry India website mentions the presence of four service centers for the Western Mumbai region – Borivali, Dadar, Andheri, and Khar. Repeated calls made to the first two service centers elicit no response. The Andheri one functions for CDMA users. That leaves GSM users with one single repair center in Mumbai at Khar. The system leaves one feeling humiliated. It means that owners across Mumbai will have to traverse to this one point in Khar or Andheri.

The Service Logistics It is tolerable if one has to wait for a couple of hours and know that the problem will soon be resolved. But what if it is a serious issue? The service center receives your complaint and asks you to hand over the set for repairs and wait for days and weeks. Is it worth the wait? The service centers listed on the BlackBerry India website are not exactly service centers, but mere collection centers. The centers have been set up to collect the defective piece and check for the problem. They are also allowed to conduct L1 level of repairs that are non-invasive and are mainly confined to offering software support and upgrades. For the hardware glitches (requiring a higher level of repair) the service centers will send the phone to a point in Bangalore. As the service centers are barred from conducting any repair that is invasive, RIM India has its own arrangements. Globally, the company has tie-ups with a few companies for conducting chip level and component level repairs. In India, it is Flextronics Global Services. The official distribution and post-sales partner to RIM India for BlackBerry GSM phones is Bangalore-based national distributor Redington India. The tie-up helped RIM India im-

When you go to the outlet, you are handed a small chit with a number. It requires a waiting of at least two hours before your number is called out. mensely as Redington immediately took charge of sales, service, and the reverse logistics, and took the smartphones to over 75 cities. In terms of service, RIM India mentions the presence of 112 service centers across the country on its website, of which 27 are manned by Redington. Speaking of the general policies that Redington has for its vendors, Shaik Abdul Nassar, GM (Supply Chain), Redington Service, says, “In most cases, repairs are carried out by replacement of parts/sub-assemblies. The turnaround time ranges from one hour (for walk-in consumer customers, enterprise) to five days for remote locations.” However, the spokesperson at the Khar service center (and other service centers across the country) has a different story to tell. They cite a minimum of 10-12 days if the phone needs intense repair. Although phones under warranty are repaired free of charge, for those outside war-

ranty, the user is not only expected to pay for the cost of repair, but an additional `200 for courier charges.

What Happens At The Back-end? The issues of dead-on-arrival (DoA)/warranty replacements are looked after by Redington’s Reverse Logistics Centre (RRLC), an extended arm of Redington Supply Chain Management. For DoA products, the Redington-affiliated service centers across the country register their call with RRLC through a toll free number. RRLC then checks the point of purchase as per the vendor process registers and approves the call. This is then approved by mail and a copy of it is sent to the respective warehouse in charge. Based on the availability of stock, a replacement is given through the DC. The approval is also communicated to the customer on his official mobile number as registered by him with RRLC. If replace-

ment is not available RRLC offers a credit note for the invoice value. In terms of transportation, depending on the volume at each service center the pick-up is daily or twice a week. Redington has tied up with about 10 national courier companies that have a presence in Tier-1 and Tier-2 cities. It employs the services of national courier companies such as Blue Dart, DTDC, and First Flight, and the services of 25 regional courier companies such as Skylark, Sahara, and Airnet to cater to Tire-3 cities. The courier companies support daily pick-ups from more than 3.000 cities across the country. But just like any other business, reverse logistics does have its share of risks. As the products travel through third-party courier services they could be prone to operational losses such as going out to a wrong address or the delay in ensuring timely pick-up and data flow till the end point. There is also the worry of sending out wrong parts and losses and damages that occur during transit. Mr. Nassar says that reverse logistics also has its share of thefts and damages, and warranty validation dispute. But, all said and done, a BlackBerry is a BlackBerry.


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September 16—30, 2011 www.logisticsweek.com Blogs, Journals, Book releases

Re-Evaluating The Supply Chain Post-Japanese Earthquake Prof. Carlos Cordon, Prof. Winter Nie Japan’s devastating earthquake, tsunami and nuclear accident have served as a wake-up call across the world to show just how fragile global supply can be. Until recently, many corporations entrusted their supply chain operations to middle level management. The chief purchasing officer usually reported to the CFO, CIO or COO. CEOs had relatively little exposure in dealing directly with supply chains. Often, the purchasing officers paid more attention to cost and product quality than to the risk factors in sourcing. The earthquake in Japan is changing all of that. The global supply chain is a rational attempt to remain “asset light.” In other words, focusing on a company’s core competencies and outsourcing the rest by taking advantage of low-cost sourcing. No one questions the value of the concept or of just-in-time manufacturing, but it is increasingly apparent that the approach works best when the global economy is stable, protectionism is not prevalent, and there are few natural disasters. The global economy has become increasingly integrated, and the growing frequency and intensity of natural catastrophes, such as what took place in Japan need to be factored into strategic planning. All of these factors have changed the rules of the game and created a radically new environment.

From “cost and value” to a “cost, value and risk model”: Most companies see their mission in terms of producing the highest value for customers at the lowest possible cost. An example of miscalculated risk is BP’s inadequate assessment of the potential danger from a deepwater oil leak in the Gulf of Mexico. Since BP had subcontracted its engineering to Halliburton, it assumed that the risk of a spill would be borne by Halliburton. As the public saw it, BP’s management was ultimately responsible. Lego, the Danish toymaker, took a more enlightened approach. The company pondered outsourcing its production to an Asian supplier specialized in plastic injection molding for computer printers. An investigation revealed that the two companies had radically different philosophies concerning the molds. The Asian supplier favored low cost, light-weight molds that were changed frequently as new printer designs came on line. In contrast, Lego, which depends on all its components interconnecting, sometimes uses the same molds for 40 years or more. A minor variation in the specifications risked making Lego’s bricks unusable leading to poor results for the company. In Lego’s case, it made more sense to in-source its production, even if it was slightly more expensive. Another variable of risk is expensive credit in the post-financial crisis world. Large corporations

enjoy preferential credit because of their size and dependability. Smaller companies are riskier propositions so credit is likely to be limited. For smaller suppliers, this can mean bankruptcy if the cash flow dries up, and for a large corporation that can spell disaster. Large corporations can no longer ignore the credit conditions experienced by their key suppliers. At the basic level, major corporations can serve as loan guarantors to see that suppliers stay in business. Enlightened corporations are using their size to negotiate preferential terms for their key suppliers. Another approach is for a corporation to simply extend credit on its own without going through a bank. When Toshiba wanted to build a new factory to ramp up its production of flash memory, Apple prepaid Toshiba $500 million for its chips so that the company could speed up the project. In the process, Toshiba eventually produced a third of the flash memory that went into the new iPad. Given the enormous impact of the supply chain on a company’s bottom line, executive input at from the corporation’s management team is important. The transition from mere purchasing to outsourcing requires expertise in managing external relations. It requires a different skill-set and different metrics, as well as a new mindset. http://bit.ly/oqYi7j


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September 16—30, 2011 www.logisticsweek.com

eVeNtS CALeNDAR

A Few Bright Ideas India Shipping Summit

cOMING SOON! October 2011

The seventh India Shipping Summit will take a fresh look at the maritime industry’s position, bringing together all key stakeholders and interested international parties for a high-level information exchange. Profile for exhibit includes ship equipment, ports, brokers and charters, shipbuilding and repair sectors, maritime, oil majors, crewing and manning, maritime colleges and training institute, government bodies, equipment supply. Seatrade Communications Limited is organizing the event from October 10 to 12, 2011 at Trident Hotel in Mumbai.

Constru India 2011 Constru India 2011 is being organized by Winmark Services Private Ltd at Mumbai Exhibition Center in Goregaon, Mumbai. Construction infrastructure is the second biggest industry in India and it is developing rapidly in the modern times. For the traders involved in the construction business, this three day fair to be held from October 12 to 14 will be an opportunity to explore the market and understand the modern trends. This year’s trade fair is the 13th edition of this high profile event and is much awaited within the trading circles. Constru India 2011 is designed with the intention of promoting new technologies and products in the market. Mumbai Exhibition Center at Goregaon will play host to the event.

India Electricity 2011 India Electricity 2011 is dedicated to the electronics and electrical industry in India. The event has been organized by FICCI over dura-

tion of three days at Pragati Maidan in New Delhi from October 12 to 14, 2011. The objective of the exhibition is to find a way to implement power projects in India with the collaboration of major investors and project developers. Besides an exhibition that will showcase latest trends and technologies in the industry, the event will also include an informative and educating conference. All important topics related with the industry will be discussed and analyzed under the guidance of reputed speakers. Some of the exhibitors expected to attend are from the industry of: control & instrumentation, equipment manufacturers, solar power, wind power equipment, hydro power equipment and control devices, pollution control equipment, financial institutions, power transmission equipment, transmission lines and towers, ACRS conductors insulators, and power electronics.

International Conclave on Climate Change From October 12 – 14, 2011 at Hyderabad International Trade Exposition Center (HITEX), International Conclave on Climate Change will focus on Renewable Energy. It will showcase the latest technologies on green products, solutions and renewable energy. This would cut across all sectors of business. The concept relies on exhibiting companies appearing as ‘climate artists’ each bringing their own mechanical or interactive exposition of technologies, products and solutions which contribute to a climate friendly global society. Exhibitors at the event will be start-up companies developing renewable energy related products and solutions, energy companies, banks and energy efficiency who are interested to get customers in the renewable energy industry. The event is being organized by Tafcon.

TeCHnologY

Dualdome Camera D14 From MOBOTIX The new weatherproof and shock-resistant MOBOTIX D14 DualDome camera with 6.2 megapixels is a more powerful successor model of the D12 camera. With the two separately adjustable camera modules, each with 3.1 megapixels, the D14 offers a variety of ways to examine a scene since the two modules can be combined to create one image. The D14 has a digital PTZ and no mechanical moving parts. Equipped with 90° wide angle and tele lenses, the camera can for example, monitor a scene entirely and, at the same time, the tele lens can record portrait photos in front of the entrance area. The two 90° lenses even allow a 180° recording, for example when monitoring an entire parking lot by one camera installed on the wall. And with the digital sensor switching function, the D14 can also be used as a day/night camera since it can be equipped with one color and one black/white module ensuring the most brilliant color during the day and high sensitivity at night. The D14 includes motion detection that can trigger both the recording as well as the alarm notification via email or VoIP call as a two-way communication. The integrated DVR can hold up to 64 GB memory and record for weeks without a PC. If needed, the memory can be extended to terabytes with an external NAS drive. Heating and cooling are not necessary. As a result, the very low power consumption of about 4 watts via network cable (PoE) reduces investment and operating costs and provides an inexpensive backup. A stainless steel vandalism-proof design with 3

mm polycarbonate dome and elegant wall and pole mounts is also available. Compared to the previous model, the D14 now offers USB and MxBus interfaces for extension modules such as I/O, GPS or RS232. The new, more powerful processor in the camera allows higher frame rates of up to 6 megapixel image format. Microphone and speaker are supported by new audio functions that include echo elimination. The entire recording and playback software is already included in the MOBOTIX D14 camera and is accessible via a Web browser. In addition, either the MxCC Control Center software, which is used for larger projects of up to 1,000 cameras, or the easilymanageable MxEasy software for smaller applications with analyzing, administration and display features are available free of charge.

Magellan Navigates With Roadmate 3065 GPS Device The Magellan RoadMate 3065 is a 4.7” navigator starting with Traffic Wakeup, Bluetooth, OneTouch favorites menu, free lifetime traffic alerts, highway lane assist and built-in AAA TourBook. Traffic Wakeup powers on a GPS device and provides real-time traffic updates. It also allows for traffic information before starting on the journey. One can manage hands-free calling and a noise-cancelling microphone with our advanced Bluetooth technology. The GPS navigator provides voice clarity when making calls. The OneTouch favorites menu allows the user to bookmark destinations and searches. The free lifetime traffic provides real-time traffic information. The Highway Lane Assist shows realistic highway signs and ensures that drivers choose the correct lane when approaching an upcoming interchange or exit. The unique, extra-large 4.7” screen provides maps and POI information on an easy-to-read screen that is 17 percent larger than a standard 4.3” screen. Drivers can keep their eyes on the road because spoken street name guidance announces the street name and direction of each turn. QuickSpell narrows the address and city searches, as one types, making destination entry easy.


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September 16—30, 2011 www.logisticsweek.com

eVeNtS RepoRt

Driving In With Force Pritha Dey Mumbai The serenity and beauty of the atmosphere perfectly complemented the energy, dedication and passion of the speakers at Siemens Smart Drive Technologies Media And Industry Analyst Meet 2011, on September 14, as they spoke about how Siemens helps customers improve Industrial productivity and production that is faster, better, more economical through integrated solutions. The summit hosted with the senior management representatives from Siemens AG and management team from Siemens India, highlighted Siemens AG and Siemens India portfolio. The focus of the summit was Drive Technologies and its products, solutions and services. The session also emphasized that Drive Technologies division increases productivity in operations by linkage of sustainable technologies from a single source that can help customers achieve higher productivity, efficiency and reliability. Economical and ecological requirements are on the increase throughout every field of industry and technology, exerting a impact on production processes and the machinery required to run them. As an integrated technology company, Siemens offers more than just a wide portfolio of products and solutions, explained Dr. Armin Bruck, MD, Siemens Ltd. in his presentation as he gave an overview of the Siemens India portfolio.

He also underlined the importance of the Drive Technologies Division saying “We support our customers and markets firstly by providing durable, specifically tailored products and solutions to meet the needs of diverse markets with cutting-edge technologies that are innovative and sustainable.” Speaking of India, he said, “India is huge in diversity and so you have to be close to your customers. To keep a double digit GDP growing, infrastructure is the talk of the day.” As much as 70 percent of all energy used in industrial facilities is used by electrical drives and motors to drive equipment. This demonstrates how important it is to use energy-efficient drives and motors– and drives and motors from Siemens Drive Technologies Division are designed to conserve resources. Ensuring maximum productivity, efficiency, and reliability, Siemens offers components such as electrical drives, motors, gears and couplings for optimal solutions for a variety of industrial applications. In creating an integrated solution and increasing industrial productivity, Siemens Drive family plays a significant part. The drive models cover the entire performance spectrum and offer a unified operating concept that is flexible, functional and energy efficient. The Siemens Drive family ranges from single-axis drives to coordinated drives and multipleaxis and motion-control drives for complex tasks. All drives are modular, scalable, offer a unique level of integration and are thus

A session in motion. able to offer countless benefits for mechanical and plant engineering, the process industry, and building technology. Ralf-Michael Franke, CEO of DT, a Division within the Industry Sector of Siemens AG, in his presentation, emphasized the importance of the Indian market and the Division’s local presence for its global business. The Division’s three-pronged integration approach – integrated drive train, integrated automation, integrated applications and solutions – is enriched by important stimuli stemming from the Indian business. “Asia is a driving force for our successful path of profitable growth. Mr. Franke said. “Sustainable growth is more realistic in India than in China,” he added. “Thus, the Division will continue to increase local value creation in India, which will also

enable us to meet the requirements of our local and global customers doing business in the fast growing economy. With the growing installed base in India, our integrated service approach ensures optimization of operating expense of our customers while keeping productivity high in the productions.” Robert Wagner, Head, Drive Technologies, said, “Services in India are not yet as important in India as in other developed countries.” He explained that Drive Technology comprises Large Drives, Motion Controls, Mechanical Drives, and, Inside eCar. “Motion Control is the brain behind everything that turns,” he said. Mr. Wagner also added, “Remote Monitoring Services (one of Siemens’ Value Added Services) will be a very important part of our services in five years down the line.”

Siemens’ strategy involves a three-pronged integration approach: creating a seamless drive train, integrating it into the Siemens automation world and incorporating it into the corresponding customer applications. This allows Siemens to provide its customers with a range of unique benefits in terms of energy efficiency, reliability, and productivity. Siemens Drive Technologies Division (Nuremberg, Germany) is the world’s leading supplier of products, systems, applications and services for the entire drive train with electrical and mechanical components and motion control systems for production machinery as well as machine tools. Drive Technologies serves all segments in manufacturing CONTINUED ON PAGE 7

Keeping Scores Of Records NewsDesk Mumbai The various Records and Information companies in India came together for the first time to form an association of their own, on August 20, 2011, at Hotel Bawa International, Mumbai. 29 delegates attended the event from 22 organizations. When asked about the necessity of the formation of the Association, Mr. Soorjaneel Chaterjie, General Manager - Records Management, Crown Records Man-

agement, said, “The Association will provide a platform for all companies dealing with record and information management and creating an atmosphere of mutual support, respect and progress.” Karunakar Rai, National Head - Sales and Business Setup, IL&FS Trust said that the Association would, “contribute to the progress and advancement of this industry, explore and provide solutions to various challenges faced by this Industry, encourage and reward new innovations that in-

Soorjaneel Chaterjie General Manager - Records Management, Crown Records Management

crease efficiency and reduce cost while serving customers.” Chandramouli, Founder and Managing Director, Verto Mobility Management Services Pvt Ltd., gave a brief introduction of the meeting and requested a few attendees to form a group and chair the meeting. N.S. Bhargava, Chairman & CEO, Shell Transource Ltd. and Smita Davda, Director, Navbharat Archive Xpress Pvt. Ltd. kindly accepted to jointly chair the meeting. Srikanth Bhandari, Vice President, Data and Record Ware-

housing gave a brief line on the agenda for the day, which was earlier circulated by email to all participants. The discussion began with ‘Membership Criteria’. The qualifications required for a company to become a member of the association were discussed. The next point of discussion was Objectives. The objectives of the association finalized were: 1) Promote the Records & Information Management Industry CONTINUED ON PAGE 7


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September 16—30, 2011 www.logisticsweek.com

poLICY UpDAteS

Auto Recall, Procurement High On List In this section, LW provides a recap of policy decisions of the last fortnight that impact various areas of the industry. auTo reCall PolICY The Indian government is working on a formal auto recall policy to improve manufacturing standards in the country. Joint Secretary (department of heavy industries) Ambuj Sharma announced the setting up of a National Automotive Board (NAB) to be formed in two-three months time. He added that the ministry is still examining prospects on the set of guidelines to be adopted. It is also considering whether to penalize a manufacturer in such a case. The NAB would have representation from all the nodal ministries and automotive bodies such as the Automotive Research Association of India (ARAI). Projects such as the one on National Automotive Testing and the R&D Infrastructure Project (Natrip) will fall under its purview. A recall policy would have to be included under the Mo-

tor Vehicles Act as it requires consent from other transportrelated institutions in the country.

CoMPeTITIon PolICY Union Corporate Affairs Minister Dr. M. Veerappa Moily has asked the corporate sector in the country to send their relevant and issue specific suggestions during the current exercise of initiatives underway in drafting the new national competition policy. The Minister chaired the second Consultative Meeting on draft National Competition Policy at FICCI Auditorium. Dr. Moily said his ministry is seeking to strengthen and refine India’s competition laws and the strategy involves the drafting of the competition policy, making changes to laws and norms that government departments need to follow. Once in place, the policy will be a guide

for various ministries and state governments to follow on Competition. Dr. Moily said inputs from state governments will also be considered during the preparation of the final draft for the new national competition policy and after detailed deliberations upon the views and suggestions received from the business fraternity in the country will be posted on the website of the Ministry of Corporate Affairs for further comments. He hoped that the Cabinet’s nod will be obtained by the end of this year to pave way for the New Competition Policy next year.

rlYs MoDernIZaTIon To give further impetus to Railways’ modernization plans, an Expert Group has been constituted under the Chairmanship of Sam Pitroda to recommend ways and means to modern-

ize Indian Railways to meet the challenges of economic growth, the aspirations of the common man, the needs of changing technology and the expanding market while at the same time ensuring adequate focus on addressing social and strategic requirements of the country in consonance with Indian Railways’ national aspirations. The terms of Reference of the Committee would involve outlining strategies for modernization of Railways with a focus on track, signaling, rolling stock, stations and terminals; using ICT for improving efficiency and safety; augmenting existing capacities of Railways through indigenous development; reviewing projects and addressing PPP issues. The Committee will inter alia address issues connected with organization, management and resource mobilization and professionalization of manpower on Indian Railways. The committee is expected

to submit its report in December 2011.

PuBlIC ProCureMenT To infuse transparency in governance, the Centre would be bringing in a new bill, Public Procurement Bill, in the winter session, announced Union Minister for Corporate Affairs Dr. M Veerappa Moily. Though the Indian government sources goods worth around `11 lakh crore every year, there is no proper policy to govern it. While smaller economies like Nepal and Afghanistan have well laid out norms to check procurement, India does not have the system. The introduction of the bill is expected to bring down corruption by nearly 50 percent. Moily said that the government will finalize a new competition policy by this November and it will become a law by December 2012.

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September 16—30, 2011 www.logisticsweek.com CONTINUED frOm PAGE 5 2) Qualitative Aspect (* Bench Marking) 3) Awareness to Media 4) Inspection / Certification It was proposed that each of the participants contribute in providing details of prospective eligible member names to be enumerated and work on bringing them into membership. Mr. Chaterjie said that the primary goal of the Association would be, “to promote the awareness of the importance of records management and bring in standardization in the process through introduction of general guidelines that will help both the businesses and the customers.” The Vision & Mission of the Association are as follows:1. Bring Excellence 2. How do we place our business is very important 3. To formulate, benchmarks process, highlighting to the rest of the world 4. Creating a mark and protection 5. To attract talent to the industry Participants concluded the name of the association as “Records & Information Management Association of India”. It was proposed that a core group will be formed to work on the Bylaws of the Association. The proposed names were: 1. Muthu Krishnan – Cameo Corporate Services 2. Vivek Verma – Karvy Data Management 3. Kamal Doctor – OEC Records Management 4. Kumud Chopra – PS Bedi Group 5. Carl Cooper – Safe House Two options were decided upon to register for the association. The first was registering as a trust; and, the second was, registering under Section 25 of the Companies Act. Three types of memberships and the respective fees for each category was finalized – Charter, Life Membership and Associate Membership. After much debate, `75,000 was finally fixed as the Entrance/Joining Fee. The Association is yet to decide the Annual Membership Fees. It will be decided once the bylaws are made. Mr. Chaterjie said, “More than 15 plus companies in the records and information management spectrum showed interest in becoming founding members. The exact number will be confirmed once the body has been officially formed and registrations accepted.”

Karunakar Rai National Head - Sales and Business Setup, IL&FS Trust

The association will be affiliated to PRISM and/or ARMA. Mr. Chaterjie said, “At this stage, RIMAI will work for the benefit of Indian companies and supporting Indian customers and hence affiliation from PRISM and/or ARMA is not at the top of its priority list. However, the same will be considered after the association has been formed and some of the key activities are set to motion.” The framework of the association was decided upon. It was also unanimously decided that the Board Structure would be expanded as and when re-

quired in future. It was decided that an Interim Board be formed through nominations to conduct the affairs of the proposed Association till the formation of the Association and conducting of the EGM to elect the First Board. The Interim Board is yet to decide on the location of the registered office of the Association. Mr. Chaterjie said, “In terms of conceptualization, the first meeting met its objectives. However, once the action plan is put into motion, the same will generate more interest and enthusiasm.”

CONTINUED frOm PAGE 5 industry, process industry and energy/infrastructure. The Division addresses key customer requirements in terms of productivity, energy efficiency and reliability. Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation and building technologies. Bireshwar Roy, General Manager, Head Large Drives, Siemens, said, “It’s not only about saving energy. When you save energy, you save money.”


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September 16—30, 2011 www.logisticsweek.com

poRtS UpDAteS

Lowdown On Major Ports In this section LW will provide the latest in ports and shipping news and a status on how the major ports have fared this fortnight. antwerp expects more n Sep 2: The Port of Antwerp expects a 10 percent growth in cargo volume from India. Antwerp Port specializes in handling break-bulk and project cargo as also chemicals and petrochemicals. Exporters from Nagpur, Ludhiana, Tuticorin and Pune prefer Antwerp to other ports as the overall cost of reaching the goods to the final destination, works out cheaper.

lated service conditions for port and dock workers to be given effect from January 1, 2012. Instead of settling the issue of wage revision through Bipartite Wage Negotiating Committee (BWNC) as per the practice, the decision for forming the Judicial Commission was officially communicated to the labor federations by Indian Ports association on September 5, created furore among the unions.

judicial Commission opposed

no Port Project awarded

n Sep 8: Major port and dock workers federations have opposed the Shipping Ministry’s decision on the appointment of Judicial Commission for the revision of wages and other re-

n Sep 9: The shipping ministry has failed to award a single port project out of a planned 24 this year, with a total outlay of `17,000 crore. Slackened ministerial behaviors are blamed for the delay

in approvals. Half the projects to be bidded out are carryovers from the past, valued at around `13,000 crore. These include a 2009-10 plan to create a mega container terminal at Chennai port costing `3,686 crore and a mechanized berth at Vishakhapatnam for `218 crore.

govt allots `16K Cr for Ports n Sep 15: The government plans to award 23 projects, entailing investment `16,700 crore, under the PPP model in FY12. Currently, total capacity of the 13 major ports is about 640 million ton. The combined capacity of the major ports and about 200 minor ports reached 1,095 million ton in March 31, this year.

Coal stocks idle at Ports

has set up a disinvestment target of `40,000 crore for the current fiscal. Government has approved disinvestment in ONGC, SAIL, HCL and NBCC, but it could mop up only `1,162 crore.

n Sep 15: Some of India’s importers reported that over 12 million ton of thermal coal are stockpiled at India’s ports, of which 7-8 million were not sold. Other importers were struggling to sell the coal. India is a key and rapidly-growing coal importer, expected to bring in 67 million ton in 2011, rising to 100 million by 2015.

toxic ship refused at Port n Sep 19: Chinese toxic ship MV Asia Union arrived in Chittagong early on September 19 for dismantling and has been asked to stay off the port as it is imported illegally. The importers did not apply for NOC prior to importing in India. It reportedly possesses hazardous substances including asbestos, toxic paints and chemical residues, which have adverse effects on the environment.

Port investment remitted n Sep 16: The shipping ministry has deferred its disinvestment plan for Ennore Port, Cochin Shipyard and Dredging Corporation of India (DCI) because of uncertain and volatile market condition. The finance ministry

Port Traffic This Fortnight Port of Chennai

Port of Kolkata:

The port handled an average of 4,448 TEU of container per day last fortnight. There was a drop in quantity of container handled by 26 percent this fortnight.

The port handled a total of 8,36,106 ton of cargo in the last fortnight, this time showing a rise by 6 percent.

PORT OF KOLKATA

PORT OF CHENNAI Total cargo handled

1290000 T

Total container handled

31473 TEU

Port of Cochin The port handled a total of 4,68,582 ton of cargo. Comparing to this fortnight there is a rise in the percentage of cargo handled by 9 percent.

PORT OF COCHIN

Total cargo handled

Port of Mumbai The port handled an average of 24,028 ton per day past fortnight. There is a surge in quantity of cargo handled by 77 percent. (The data for this fortnight was extrapolated from five days’ data because numbers were not available for rest of the days. The sharp skew shown in the table here could be because of the surge in port traffic on the recorded days).

Total cargo handled

281932 T

PORT OF MUMBAI

Total container handled

777 TEU

Total cargo handled Total container handled

Port of Ennore: The port handled an average of 1,22,457 ton of cargo per day in the last fortnight recording a steep rise in the percentage of cargo handled by 29 percent, compared to this fortnight.

PORT OF ENNORE Total cargo handled

1037340 T

155024 T 285 TEU

Port of Paradip The port handled a total 21,84,271 ton of cargo this fortnight as compared to 14,69,105 ton last time, recording a steep rise by 32 percent.

PORT OF PARADIP 2091427 T

Total cargo handled

1543077 T

Port of JNPT

Port of Tuticorin

The port handled an average of 10,732 TEU of container per day, last fortnight. The percentage of container handled dropped by nearly 3 percent in the last 15 days.

The port handled on an average 74,500 ton of cargo per day in the last fortnight. The quantity of cargo handled this fortnight plummeted by 19 percent.

PORT OF JNPT Total container handled

PORT OF TUTICORIN 91365 TEU

(Data is relevant to days when information was updated on port website)

Total cargo handled

565109 T


9

September 16—30, 2011 www.logisticsweek.com

LSp CASe StUDY: AGILItY LoGIStICS

Rebooting A Few Systems Tom Joseph CEO, Agility Logistics Beiersdorf AG is a group of globally active companies focused on the development, manufacture and worldwide distribution of high-quality skin care and beauty products, some of the brands being Eucerin, La Prairie, Labello, 8x4 and Hansaplast, Beiersdorf is Germany’s largest co smetics company and one of its brands, Nivea, is among the world’s best known brands amongst skin care and beauty products. Beiersdorf entered India in 2005 to conduct its manufacturing and distribution for the Indian market locally. In the last five years, Beiersdorf’s business in India has demonstrated strong growth adding to volume and distribution complexity. Agility Logistics has been their logistics service provider since the beginning and have been a partner in this

growth one of the indicators of which is the growth in the number of invoices processed annually from 11,000 in 2009 to 23,000 currently.

ed by month-end skews, where the last 4 days of any month accounted for 30 percent of monthly volume, as well as the seasonality of the product.

The Problem

A Fitting Solution

Nivea wanted pan India warehousing operations & secondary distribution with minimum human intervention. The idea was to have online, system-driven operations on real time basis where the criteria for selection would be batch wise, manufacturing date wise picking on FIFO basis. Given the large SKU base and transactions close to 23,000 per annum where the product is a cosmetic direct applied on human skin, the challenge was enormous. Also, the requirement of batch/lot traceability, which is essential in case of recalling a particular batch/ lot already distributed across India to various distributors added to the complexity. This was further compound-

To provide an optimum solution to the client, Agility Logistics proposed to merge two systems viz. the client’s SAP and Agility’s Warehouse Management System (WMS) via an Electronic Data Interchange (a paperless transaction process in which two systems transact data electronically using various protocols), which took around three months of rigorous user acceptance procedures). Also, significant customization of WMS was undertaken to achieve the desired results. The entire development was done in-house. For each SKU, a best fit was arrived at based on complex volumetric calculations. This also helped in designing a mathematical tool to arrive at a pallet-wise calculation at each

location thus completely doing away with the need for physical counting of pallets for billing. To ensure efficient usage, users from both ends were trained on the new system. There was initial skepticism which quickly gave way to acceptance once the results were found to be in line with expectations.

Reducing Errors The success of the project lay in its simplicity and reduction in repeated manual entries which brought down the error rate to near nil. The speed of the transaction increased tremendously. The rate of processing put away & pick went up by almost 70 percent as errors were almost zero and two systems were working in tandem in a seamless environment. With advance shipment notice and pre-alert mails, the storage/space was efficiently managed since the warehouse had a clear plan of the number of incoming pallets which also TU R TIM NAR

OU Logi E ND prov stics 20 a ne ider softw w ag Four are enda Soft for has se 2009 t .

meant that the cases of storage area spill over seldom occurred. Since the warehouse locations are mapped in the system, this has resulted in efficient put away and pick. These measures reduced the turnaround time of put and pick and hence contributed to faster operational output. Clear visibility of inventory has led to less out-of-stock problems and better use of warehouse space. Inventory accuracy between physical & system stock now stood at almost 100 percent. In addition, the robust Management Information System (MIS) automatically generated emails to all stakeholders at predetermined intervals and offered a complete visibility of inventory w H a across India, thus enit n h defficient product and abling an ca l e r distributione planning supporting strong sales growth. May ww 200 9 w.l og-i n

Vo dia l. 2 - N .co o.8 m

INR

:10

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NEW LAU NCH

MO 14 TO FR68 ROLA & FR 6000

.... .... .... .... .... .... .... .... .... .... .... .... ... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... IND ...... .... .... .... U . .... .... WA STR .... .... .... A cl TCH Y .... .... .... .... the ose lo 50 .... . .... af te autom ok at .... rmar otiv .... .... ket e .. in In dia. RIG HT EX Don’ PEC unle t shakTATIO enou ss th e ha N 38 gh ere nd

24

30 The case study 3has been taken 4 42 6 from KPMG’s 4latest report, Adding Wings. reas is a s on good to do it.

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Jacob Joseph Puthenparambil jacob@logisticsweek.com

India And China Looking to Be On The Same Road News Desk Mumbai

of the opportunities of investing in the highways sector of India and of the high returns that the sector promises to offer. Xianglong mooted the idea of the setting up of an India-China Highways Invest-

Designation:

Company Name:

Industry:

Address:

The two emerging super-economies have agreed to explore areas of cooporation in the road transport and highways sector

India and China have agreed to work towards signing of a Memorandum of Understanding (MoU) in the areas of Road Transport and Highways, said an Indian government press release issued on September 16. Under the proposed MoU, both sides would seek to enhance cooperation in highway construction, exchange of technology and investments in the sector. According to the release, this was agreed to during the meeting between Kamal Nath, Minister for Road Transport and Highways and Li Shenglin, Minister of Transport, China at Beijing on September 15. Nath was quoted in the note as saying that India has embarked on a massive national highway development program under which it is proposed to construct 7,000 km of national highways every year over the next few years. The ambitious targets set in the program provided huge opportunities to the Chinese construction companies as also the Chinese financial institutions to enhance their engagement with India, said the note. Nath also said that the preferred mode of highway development in India is Public Private Partnership. 60 perceent of the national highways would be developed under the BOT (Built-Operate-Transfer) Toll mode, while another 25 percent would be taken up on BOT (Annuity) basis. Already, several Chinese companies are participating in the National Highway Development Project of India. China has over the past decade made rapid progress in the infrastructure sector, particularly highway development. Li Shenglin said that presently, around 35,000 km of national highways is under construction in China of which 10,000 km is likely to be completed this year. Earlier in the course of the interactions with China’s government representatives, Nath met Lou Jiwei, Chairman, China Investment Corporation (CIC) and Dai Xianglong, Chairman of National Social Security Fund (NSSF) and apprised them

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September 16—30, 2011 www.logisticsweek.com

SURFACe tRANSpoRt UpDAteS

THE LW CrOSSWOrD

Bridging The Gap

1

2

3

4

5

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A low-down on developments in surface transport last fortnight.

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ence and expertise in managing innovation in technology and change will also provide a valuable independent outsiders’ view with respect to system and protocols.

n The Cabinet Committee on Infrastructure has approved the implementation of the project for development of six laning of Kishangarh-UdaipurAhmedabad section on National Highway NH-79A, NH-79, NH76 and NH8 in Rajasthan and Gujarat under NHDP Phase V on DBFOT basis in BOT (Toll) mode of delivery. The total project cost estimated of the project for implementing under DBFOT pattern is `6013.70 crore, out of which `626.40 crore will be for the land acquisition, R&R and preconstruction purposes. The project when completed will reduce the time and cost of travel and also increase the employment potential to the local labourers for the project activities and development of tourism activities and would boost economic activities in the State of Gujarat and Rajasthan.

steel plants and for other domestic user, `492.99 crore from 8.53 million tonnes of cement, `324.73 crore from 3.58 million tonnes of foodgrains, `256.30 crore from 3.30 million tonnes of petroleum oil and lubricant (POL), `317.06 crore from 3.02 million tonnes of Pig iron and finished steel from steel plants and other points, `322.45 crore from 4.43 million tonnes of fertilizers, `75.75 crore from 1.15 million tonnes of raw material for steel plants except iron ore, `276.93 crore from 3.11 million tonnes by container service and `359.79 crore from 5.49 million tonnes of other goods.

railway freight revenue goes uP n The Railways have generated `27024.90 crore of revenue earnings from commodity-wise freight traffic during AprilAugust 2011 as compared to `24547.05 crore during the corresponding period last year, registering an increase of 10.09 percent. Railways carried 389.07 million tonnes of commoditywise freight traffic during AprilAugust 2011 as compared to 366.74 million tonnes carried during the corresponding period last year, registering an increase of 3.78 percent. The Net Tonne Kilo Meters (NTKM) went up from 257813 million during April-August 2010 to 243779 million during April-August 2011, showing an increase of 4.10 percent. Out of the total earnings of `5204.26 crore from commodity-wise freight traffic during the month of August 2011, `2038.11 crore came from transportation of 34.20 million tonnes of coal, followed by `740.15 crore from 8.94 million tonnes of iron ore for exports,

railways’ safety review Committee n The Minister of Railways, Shri Dinesh Trivedi, at a press conference on September 16, 2011, announced the constitution of a High Level Safety Review Committee. The committee comprising of eminent persons/experts in technical and high end technology related fields with experi-

rise in railway revenue earnings n The total approximate earnings of Indian Railways on originating basis during the period from September 1-10, 2011, was `2510.31 crore, as compared to `2297.72 crore during the same period last year, registering an increase of 9.25 percent. The total goods earnings have gone up from `1501.17 crore during the period from September 1-10, 2010 to `1624.59 crore during September 1-10, 2011, showing an increase of 8.22 percent. The total passenger revenue earnings during the period September 1-10 2011 was `796.99

TRUCK FREIGHT RATES* Following are the truck freight rates (in `per tonne) from metros to metros

orIgIn

DesTInaTIons New Delhi

New Delhi

Kolkata

Mumbai

Chennai

Bangalore

--

2,550

1,850

3,600

3,400

Kolkata

1,950

--

2,700

1,850

2,300

Mumbai

2,900

4,350

--

2,550

2,050

Chennai

3,500

3,000

2,150

--

900

Bangalore

3,300

3,500

1,650

800

--

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EclipseCrossword.com

Across: 1 Car with a flat platform and sides three to four feet high 7. Transportation of materials and freight on a local basis 8. In distribution, the trading partner or reseller 10. Exempt for hire air carrier that publishes a time schedule on specific routes 11. Enclosed rail car typically 40 to 50 feet long 15. Obstacles or planned control that limits throughput 17. Movable property, merchandise or wares 20. A computer term referring to a system of numerical notation 22. Automated equipment used for picking small, high-volume parts 24. Flat-bottomed boat designed for cross-harbor or inland waterway freight 25. Data stored in computer readable form 28. Determining the correct transportation charges Down: 2. A person or firm that grants a lease 3. Material that will contribute to a finished product 4. An intermediary between the shipper and the carrier 5. Physical facilities available to meet the product or service needs of customers 6. Physical characteristics of a commodity measuring its mass per unit volume or pounds per cubic foot 9. Sum of the value of all order received 12. Carrier charges and fees applied when rail freight cars and ships are retained beyond a specific loading or unloading time 13. A box, typically 10 to 40 feet long, primarily used for ocean freight shipments 14. A person or firm to whom a lease is granted 16. Light assembly of components or parts into defined units 18. A statement or formula, based upon experience or observation rather than on deduction or theory 19. A type of truck trailer that consists of a floor and no enclosure 21. Cargo-carrying vehicle used primarily by inland water carriers 23. The cargo carried in a transportation vehicle 26. A computer term describing rate of transmission over a channel or circuit

Source: Trimurti Cargo Movers Pvt. Ltd.

*Rates are indicative Group Publisher: Jacob Joseph Puthenparambil jacob@logisticsweek.com Publisher: Frewin Francis Vazhappilly frewin@logisticsweek.com Publishing Director: Jayaram Nair jayaram@logisticsweek.com Editor-Special Projects: Pamela Cheema pamela@logisticsweek.com Editor: Aanand Pandey aanand@logisticsweek.com

12

Answers Across 1. Gondola 2. Drayage 8. Customer 10. Commuter 11. Boxcar 15. Bottleneck 17. Goods 20. Binary 22. Carousel 24. Lighter 25. Database 27. Exports 28. Auditing Down 2. Lessor 3. Component 4. Broker 5. Capacity 6. Density 9. Bookings 12. Detention 13. Container 14. Lessee 16. Kitting 18. Empirical 19. Flatbed 21. Barge 23. Lading 26. Baud

siX laning of seCtions of nh

Executive Editor: Jayashree Mendes jayashree@logisticsweek.com Editorial Executives: Anuja Abraham, Pritha Dey Chief Designer: Shivasankaran Pillai AD-SALES: Ashok Chand Thakur ashok@logisticsweek.com Dinesh Mishra dinesh@logisticsweek.com Snehal Phatnaik snehal@logisticsweek.com

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11

September 16—30, 2011 www.logisticsweek.com crore compared to `705.87 crore during the same period last year, reflecting an increase of 12.91 percent. The revenue earnings from other coaching amounted to `67.64 crore during this period compared to `65.92 crore during the same period last year, showing an increase of 2.61 percent.

ConferenCe on PubliC Private PartnershiP n A Conference on “Public Private Partnership (PPP) in National Highways: Challenges and Opportunities” organized by the Ministry of Road Transport & Highways with the assistance of the Planning Commission concluded on September 12, 2011. The one-day conference was inaugurated by the Prime Minister, Dr. Manmohan Singh. The Union Minister for Road Transport & Highways, Dr. C. P. Joshi gave a broad overview of the “Vision Ahead” of the Ministry. The Deputy Chairman of Planning Commission, Dr. Montek Singh Ahluwalia delivered the key-note address. The Ministers of State for RT&H, Shri Jitin Prasada and Dr. Tusharbhai A. Choudhary also addressed the inaugural session.

highway DeveloPment Program n Prime Minister, Dr. Manmohan Singh has said that good

roads are essential element of infrastructure for providing industry and agriculture with the connectivity to markets for growth in production and trade, and more generally for improving the quality of life of citizens. Delivering the inaugural address at the “Conference on Public Private Partnership in National Highways : Challenges & Opportunities” organized by the Ministry of Road Transport and Highways with the assistance of the Planning Commission, he said that they are crucial not only for accelerating growth rate, but also for making whole growth process more socially and economically inclusive. Dr. Manmohan Singh said that financing an ambitious highways programme will no doubt require substantial resources. Some parts of the network can only be developed through public investment. There are however areas where private investment can be invited, based on affordable user charges with some capital subsidy as necessary. The Twelfth Plan strategy calls for exploring the scope for such Public Private Partnership as much as possible.

railways freight transfer n A Indian Railways have car-

ried 389.07 million tonnes of revenue earning freight traffic during April-August 2011. The freight carried shows an increase of 22.36 million tonnes over the freight traffic of 366.71 million tonnes actually carried during the corresponding period last year, registering an increase of 6.10 percent. During the month of August 2011, the revenue earning freight traffic carried by Indian Railways was 75.75 million tonnes. There is an increase of 1.55 million tonnes over the actual freight traffic of 74.20 million tonnes carried by the Indian Railways during the same period last year, showing an increase of 2.09 percent.organized by the Ministry of Road Transport & Highways with the assistance of the Planning Commission concluded on September 12, 2011.

asian highways ProjeCt n India signed the Inter-Governmental Agreement on Asian Highway Network during the 60th Annual Session of the United Nations Economic and Social Commission for Asia and Pacific (UNESCAP), held in April, 2004. The agreement is for coordinated development of the highway routes falling on the Asian Highway Network in each country to a minimum acceptable standard within the

framework of their national programmes, envisaged in turn to develop international tourism, trade, transport and commerce. However, no specific time frame for completion of works has been stipulated in the Agreement. The Asian Highways (AH) 1 and AH 2 passes through the North-Eastern States of India following the National Highway stretches from the Indo-Myanmar border at Moreh in the State of Manipur via Imphal-Kohima(Nagaland)Dimapur -Nagaon-Jorabat (Assam)-Shillong-Dawki- Tamabil upto Indo-Bangaldesh border in the State of Meghalaya having a length of about 740 km.

national transPort DeveloPment PoliCy rePort n The Government had set up National Transport Development Policy Committee (NTDPC) under the Chairmanship of Dr. Rakesh Mohan on 11th February, 2010, with the main objective of recommending a long term National Transport Policy that would facilitate overall efficiency in the economy while minimizing energy consumption and environmental pollution, to provide an integrated and sustainable transport system to encourage competitive pricing and co-ordination be-

From the stables of LOG.INDIA, the country’s most respected logistics and supply-chain magazine, comes the LogisticsWeek Director 2012, a much-awaited reckoner that will list India’s 3PLs, 4PLs, transporters, solutions and service providers in the material handling and warehousing space, freight forwarders, shippers, cold chain service providers and all the stakeholders of the industry. Do not miss the chance to reach out to the decision-makers of the industry. Avail of huge early-bird discounts, NOW

tween the alternative modes of transport. The NTDPC also, inter-alia, constituted a Working Group on Roads in July, 2010. The NTDPC has not yet finalized its report.

restruCturing of nhai n Ministry of Road Transport & Highways submitted a Note to the Cabinet in 2007 for restructuring of National Highways Authority of India (NHAI). The Cabinet approval included amended procedure for selection of Chairman, NHAI, by a Search Committee headed by Cabinet Secretary, increase in number of full-time Members of NHAI Board from 5 to 6 and part-time Members from 4 to 6 (including experts who would be from nonGovernment sector), creation of additional CGM posts (15 Nos. for technical and 11 Nos. for non technical) over and above the existing posts, creation of various cells for improvement in process in technical areas, and amendment in NHAI Act, 1988 to effect the revised composition of NHAI Board. While the technical recommendations have been operationalized, for operationalising appointment of full-time and part-time members, a proposal to amend section 3(3) of NHAI Act, 1988 has been submitted for approval of Cabinet on 02.09.2011.


12

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