C & L Feb 2016

Page 1

‘CRWC IS INTEGRATING LOGISTICS SOLUTIONS TO BENEFIT RAILWAYS’ Volume IV No 12

FEBRUARY 2016 I `60

C A R G O

L O G I S T I C S

SHIPPING Tough year ahead SKYCARGO Indian exports booster

HUB Dholera is off the mark

2016:

LOGISTICS India’s one bright spot, if…

WORLD SPOTLIGHT ON INDIA

MANAGING EDITOR’s NOTE

Take the lead and move on

E

ven before the world of cargo and logistics could comprehend and swallow the bitter truth of low productivity and therefore low tonnages in shipping and air cargo, it was already the second month of 2016. Not that it really matters. The fact remains that the cargo and logistics industry must work even harder to cut corners and become more efficient in these troubled times. It may be worthwhile to mention that even as the air cargo sector plummeted to the lowest depths, thanks to those above the bellies, the carriers made money — in fact, lots of it. If International Air Transport Association (IATA) figures for 2016 are to be believed, there will be an increase in airfreight demand by 3 per cent, in comparison to the 1.9 per cent growth in 2015. That might be a bit of good news but the pace of growth will slow down because companies have brought “supply chains closer to home”, IATA said. IATA said the international air cargo sector was expected to handle 52.7 million tonnes of cargo in 2016 (from about 51.3 million tonnes in 2015). It would have been much more but for the “tough global economic environment and feeble world trade” where “emerging markets have struggled” and “a slowdown in China has sent commodity exporters wobbling”. The bleak forecast notwithstanding, there is hopefully

enough good news to cheer us all — at least as far as India is concerned. While on one hand, the government has fasttracked its infrastructure development and included roads, railways, ports and waterways in its list along with airports, international confidence in India has grown considerably (see story on page 16). The Emerging Markets Logistics Index has placed for the first time, India before China as the emerging market with the most potential over the next five years in a closely watched annual survey of more than 1,100 global logistics industry executives. To top it all, a top shipping analyst has said that the only bright spot in 2016 could be India if the Narendra Modi-led administration could deliver another year of strong growth. “For 2016, it’s going to be interesting to see if the Modi administration can deliver another year of strong growth, capitalising on the huge rebranding effort by India as being a good place to do business,” he added. Can we live up to expectations? Indeed, we can. The green shoots are out: Dholera, the Delhi-Mumbai Industrial Corridor and more. It is time to get ahead of the competition and take the lead. Till then, keep reading… tghosh@newsline.in

Cargo Logistics I February 2016

3

contents ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS PROFILES NEWS DIGEST STATISTICS COLUMNS

CONTENTS

C&L

VOLUME IV NO 12

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH Consulting Editor RAMESH KUMAR Senior Sub-Editor-cum-Reporter PUNIT MISHRA

COVER STORY

p10

In a major boost to the country’s infrastructure development, the government is focusing to develop a multi modal hub and international airport at Dholera, located near Ahmedabad. Once it is completed, it will be an important part of the Delhi-Mumbai Industrial Corridor.

FOCUS

p16

According to the annual Agility Emerging Markets Logistics Index, India has replaced China as the one with most potential to grow. The respondents ranked India as the top choice to emerge as a major logistics market and ranked it relatively high.

SPOTLIGHT

p23

The Panama Canal expansion project will be completed in a few months. The canal will allow Panamax size of ships that can carry more than twice as much cargo. Initially the project was to be completed by August 2014, but the date was pushed from June 2015 to December 2015 and now April 2016.

20

SPECIAL REPORT

Sr. Proof Reader RAJESH VAID Correspondents NAVEED ANJUM, ANJANA RAGHAV Designers NAGENDER DUBEY Picture Editor PRADEEP CHANDRA Photo Editor HC TIWARI Staff Photographer HEMANT RAWAT

Emirates SkyCargo is one of the strongest players among international cargo carriers operating in the Indian market. The carrier has been on the Indian scene for quite some time and over the years, built its reputation as an innovator and a provider of world-class air cargo services.

30

NEWS IN BRIEF

Central Railside Warehouse Company recently released CRWC Shabdawali. Schenker India has announced the opening of its biggest warehouse in India at Bhiwandi near Mumbai. Cathay Pacific Airways welcomed its first freighter showcasing the airline’s brand new livery.

Director (Admin & Corporate Affairs) RAJIV SINGH Vice President (Business Development) VINOD KAUL Subscription ALKA SHARMA Distribution PANKAJ KUMAR, BHUSAN KUMAR Executive Director RENU MITTAL For advertising and sales enquiries, please contact:

+91-9810030533, 9810159332 Editorial & Marketing office: News Kingdom Media Pvt. Ltd., D-11, Nizamuddin East New Delhi –110 013, Tel: +91-11-41033381-82 All information in C&L is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket- IV, Mayur Vihar Phase–I, Delhi–91 and printed by him at Archna Printers, 18, DSIDC Shed, Okhla Indl Area Ph-1, New Delhi -110020

Cover Design: Nagender Dubey

4

February 2016 I Cargo Logistics

JUST IN TIME

Decline bottoms out but there is still hope‌ However, WorldACD pointed out that while worldwide air cargo volume was up 1.9 per cent in September (Y-o-Y) but yield (in US$) was down 17.5 per cent

T

he International Air Transport Association (IATA) released data for global air freight markets showing air cargo volumes (measured in Freight Tonne Kilometers) were down 1.2 per cent in November 2015, compared to November 2014. Total cargo volumes, however, expanded compared to October 2015, and were higher than the low point in August. This indicated that the decline in cargo demand may be bottoming out. The negative year-on-year comparisons occurred across all regions with the exception of the Middle East. Of the major markets that together comprise more than 80 per cent of total trade, Europe was down 2.0 per cent, North America by 3.2 per cent, and $VLD 3DFLÂżF E\ SHU FHQW 7KH FRPSDUD-

6

February 2016 I Cargo Logistics

tive weakness in these regions was driven largely because the performance in November 2014 was very strong. Latin American and African markets also fell, by 6.4 per cent and 6.0 per cent, respectively. The Middle East region posted 5.4 per cent growth. “The freight performance in November was a mixed bag. Although the headline growth rate fell again, and the global economic outlook remains fragile, it appears WKDW SDUWV RI $VLD 3DFLÂżF DUH JURZLQJ DJDLQ and globally, export orders are looking better. In fact, the downward trend in FTK volumes appears to be bottoming out. But there is a great deal of uncertainty. The current volatility of stock markets shows how much the health of the global economy – upon which air cargo depends – remains on a

knife-edge,� said Tony Tyler, IATA’s Director General and CEO. World ACD added that going by the EDUH ZRUOGZLGH PRQWKO\ ¿JXUHV 1RYHPEHU 2015 was not a good month for air cargo. )RU WKH ¿UVW WLPH LQ \HDUV PRQWKO\ YROume dropped YoY (-0.9 per cent). Although USD-yields improved for the third month in a row, the 1 per cent increase was smaller than the usual yield improvement from October to November. However, the MoM yield increase was in line with last year’s when taking into account the major exchange rate effects. Even when viewing the three months – September, October and November -- toJHWKHU 1RYHPEHU KDG ¿YH 6XQGD\V DQG Mondays, traditionally not the best cargo

JUST IN TIME

TREND

GD\V WKHUH ZDV QR HVFDSLQJ WKH IDFWV L September-November showed a YoY volume growth of one per cent only, well below the YoY increase of 2.6 per cent until $XJXVW DQG LL 1RYHPEHU ZDV ZHDNHU WKDQ 2FWREHU IRU WKH ¿UVW WLPH VLQFH According to WorldACD, it was not all EDG QHZV DW WKH HQG RI ODUJHO\ GXH to China and Hong Kong. Together, these JURZWK HQJLQHV DFFRXQWHG IRU DOPRVW SHU cent of worldwide revenues. Their exports by air to Europe had been below previous \HDUœV YROXPHV IRU D JRRG SDUW RI EXW over the past months this negative pattern was reversed. North America had already SHUIRUPHG ZHOO VLQFH WKH EHJLQQLQJ RI and continued that trend towards the year’s HQG $QG WKH \LHOG GHYHORSPHQWV LQ 86' were even more encouraging. Contrary to reFHQW ¿JXUHV IURP RWKHU VRXUFHV :RUOG$&' observed rather positive yield patterns for WKH RULJLQ $VLD 3DFL¿F EHWZHHQ $XJXVW DQG 1RYHPEHU \LHOGV URVH E\ SHU FHQW WR (XURSH DQG E\ SHU FHQW WR 1RUWK $PHULFD +RZHYHU LQWUD $VLD 3DFL¿F DLU FDUJR suffered. YoY volumes were down by 4 per FHQW LQ 1RYHPEHU DQG E\ SHU FHQW IRU WKH last three months. And coupled with that, the DYHUDJH 86' \LHOG LQ WKH DUHD IHOO E\ SHU FHQW VLQFH $XJXVW 9ROXPHV IURP $IULFD (XURSH DQG WKH 0LGGOH (DVW 6RXWK $VLD 0(6$ JUHZ PRUH WKDQ DYHUDJH E\ DQG SHU FHQW respectively), while volumes from the $PHULFDV FRQWUDFWHG FRPSDUHG WR %XW in Central & South America, compensation was found in strongly growing yields beWZHHQ $XJXVW DQG 1RYHPEHU SHU FHQW 3HULVKDEOHV DQG SKDUPDFHXWLFDOV UHmained positive, also over the past three PRQWKV ZLWK <R< YROXPH JURZWK RI SHU

8

February 2016 I Cargo Logistics

FHQW UHVSHFWLYHO\ SHU FHQW :KLOVW SHUishables shared in the small yield upswing VLQFH $XJXVW SKDUPDFHXWLFDOV GLG not: their rapid growth is accompanied by a 86' \LHOG GURS RI SHU FHQW VLQFH 6HSWHPEHU :KHQ PHDVXULQJ LQ (85 KRZHYer, the main currency for pharma, the picture was much more positive. Carriers from North America contracted E\ SHU FHQW <R< YROXPH ZLVH RQ DYHUDJH over the past three months. Their colleagues IURP $VLD 3DFLÂżF DQG (XURSH KDUGO\ JUHZ Carrier groups from Africa and MESA noted JURZWK RI SHU FHQW UHVSHFWLYHO\ SHU FHQW Towards the end of January, the AsVRFLDWLRQ RI $VLD 3DFLÂżF $LUOLQHV $$3$ UHOHDVHG WKH SUHOLPLQDU\ WUDIÂżF ÂżJXUHV IRU WKH IXOO FDOHQGDU \HDU $FFRUGLQJ WR the release, international air cargo demand PHDVXUHG LQ IUHLJKW WRQQH NLORPHWHUV )7. UHJLVWHUHG SHU FHQW LQFUHDVH IRU WKH \HDU UHĂ€HFWLQJ WKH VORZGRZQ LQ JOREDO WUDGH FRQditions. Offered freight capacity increased E\ SHU FHQW OHDGLQJ WR GHWHULRUDWLRQ LQ the average international freight load factor, E\ SHU FHQW SRLQWV WR SHU FHQW IRU WKH \HDU $QGUHZ +HUGPDQ $$3$ 'LUHFWRU General said, “The region’s carriers enjoyed a year of strong growth in international pasVHQJHU QXPEHUV XS SHU FHQW IRU DQG ZHOO DKHDG RI WKH SHU FHQW LQFUHDVH recorded the year before. Long haul travel markets prospered on the back of an improvement in economic conditions in selected advanced economies. In addition, Asian regional travel demand grew solidly, despite slowing economic growth and regional currency weakness. Less optimistically, air cargo markets saw only marginal growth for the \HDU D UHĂ€HFWLRQ RI WKH VORZGRZQ LQ global trade.â€?

The Masdar Institute of Science and Technology, an independent, research-driven graduate-level university focused on advanced energy and sustainable technologies, and Etihad Cargo, the cargo division of Etihad Airways, jointly announced the launch of a new design for a smart, temperature-controlled, sustainable and enerJ\ HIÂżFLHQW DLU FDUJR FRQWDLQHU FRRO dolly) system. At present, many international airports and ground-handling teams around the world employ transportation dollies that are diesel-powered, with energy-intensive cooling units which are expensive to operate and often do not meet all performance requirements. As a result of the close collaboration between Masdar Institute and Etihad Cargo, the innovative new FRRO GROO\ LV VSHFLÂżFDOO\ GHVLJQHG WR optimise the transportation of temperature-sensitive cargo, which includes pharmaceuticals, livestock and perishable products that need to be transferred between the aircraft to the storage compartments in the cargo warehouses, providing Etihad Cargo and the Abu Dhabi International Airport a unique competitive advantage over other airports. The new hybrid cool dolly design incorporates the use of innovative thermoelectric module technologies, PRGLÂżHG FRPSUHVVRU XQLWV DQG D FXVtom-made power bank that can be attached to solar panels for sustainable recharging, ensuring that the temperature can be regulated to meet the needs of temperature-sensitive cargo while minimising power consumption. The announcement was made by 'U 6WHYH *ULIÂżWKV 9LFH 3UHVLGHQW RI Research, Masdar Institute, and David .HUU 9LFH 3UHVLGHQW (WLKDG &DUJR during the recent World Future Energy 6XPPLW :)(6 LQ $EX 'KDEL

COVER STORY

The hub question —

The country’s plans for a giant leap into the future with infrastructure that will match the best in the world is slowly taking shape in the form of the Delhi-Mumbai Industrial Corridor (DMIC). One of the major beneficiaries from this infrastructural enhancement will be the air cargo community. A number of airports along the corridor have been planned but the one that’s off the mark is in Gujarat’s Dholera, which promises to be an airport hub once it is completed, writes TIRTHANKAR GHOSH

F

or those who have been demanding an aviation hub in the country, there is good news but they will have to wait at least ¿YH PRUH \HDUV :RUN RQ WKH SURSRVHG *UHHQ¿HOG DLUSRUW LQ WKH VWDWH RI *XMDUDW KDV JDWKHUHG PRPHQWXP ,Q IDFW LQ WKH ¿UVW ZHHN RI WKH 0LQLVWU\ RI &LYLO

10

February 2016 I Cargo Logistics

$YLDWLRQ 0R&$ VHQW LWV LQ SULQFLSOH DSSURYDO IRU WKH 'KROHUD DLUSRUW SURMHFW 7KH DLUSRUW EHLQJ GHYHORSHG MRLQWO\ E\ WKH 'HOKL 0XPEDL ,QGXVWULDO &RUULGRU 'HYHORSPHQW &RUSRUDWLRQ '0,&'& DQG WKH *XMDUDW JRYHUQPHQW ZRXOG KDYH WZR SDUDOOHO UXQZD\V RI PHWUHV DQG PHWUHV DQG GHYHORSHG LQ WKUHH SKDVHV DW

DQ HVWLPDWHG FRVW RI PLOOLRQ ZLWK WKH ¿UVW SKDVH H[SHFWHG WR FRVW PLOOLRQ $FFRUGLQJ WR &KLHI ([HFXWLYH 2I¿FHU DQG 0DQDJLQJ 'LUHFWRU RI '0,&'& $ONHVK 6KDUPD 'KROHUD DLUSRUW ZRXOG VHUYH WKH ORJLVWLFV UHTXLUHPHQWV RI WKH XSFRPLQJ 'KROHUD 6SHFLDO ,QYHVWPHQW 5HJLRQ '6,5 DQ LQGXVWULDO WRZQVKLS SODQQHG

COVER STORY

in the DMIC. Situated -odd kilometers from the present international airport at Ahmedabad that incidentally, will reach LWV FDSDFLW\ E\ ² '0,& LV NHHQ WR develop Dholera as an aerotropolis. The airport will not only accommodate the spillover from Ahmedabad airport but will primarily cater to the cities of adodara, Rajkot, havnagar, Nadiad, Kheda and Anand. In addition, it will also have an DYLDWLRQ ]RQH &(2 6KDUPD LV FRQÂżGHQW WKDW E\ WKH HQG RI ZKHQ 3KDVH Âą ends, Dholera Airport and the Dholera Special Investment Region DSIR) would be “engines of economic growth in the state of Gujaratâ€?. According to its website, in addition to a new airport, there will be a port, highways and railway links. It will also be a smart city and the node in GuMDUDW IRU WKH SURSRVHG NP GHGLFDWHG Delhi-Mumbai freight corridor that will pass through six states. What will be of interest to air cargo stakeholders is Dholera’s strategic location. On the planned industrial and freight corridor between Delhi and Mumbai, the Airports Authority of India feels that the economic activity in the DSIR and the satellite cities would justify the establish-

A meeting of the MIHAN Task Force in progress

MAP NOT TO SCALE

— again ment of an international airport with carsite clearance which was followed by the go-handling facilities. The proposed plans green signal from the ministry of environhave also taken into account the potential ment and forests and lastly the in-princiof the maintenance, repair, and ple’ clearance from MoCA. Even overhaul MRO) sector. so, it will be quite a while Hyped as the poster before bricks and mortar A few reports boy for the present govstart moving because emanating from ernment’s developland has still to be Gujarat have gone ment initiative, Dholacquired. In fact, the to the extent era was conceived region has seen quite of saying that DholZD\ EDFN LQ a few protests from era would take on when Modi was the farmers who do not the likes of Chief Minister of Guwant to be evicted Dubai jarat. However, it was from their land. RQO\ LQ ZKHQ 0RGL A few reports emaEHFDPH WKH 3ULPH 0LQLVWHU nating from Gujarat have that things started moving regone to the extent of saying that ally fast prompting many to believe Dholera would take on the likes of Dubai. that the project will be completed well beOne of the prime reasons forwarded by IRUH LWV VFKHGXOH LQ )LUVW FDPH WKH the pro-Dholera group points out that the *UHHQ¿HOG DLUSRUW ZRXOG PDNH D EHWWHU hub than Dubai simply because a HeathURZ 'KROHUD 6LQJDSRUH ÀLJKW ZLOO À\ kilometers less than one that is on the Heathrow-Dubai-Singapore route. Whatever the reason, air cargo and aviation stakeholders are willing to wait if indeed a hub is in the making. Another cargo airport on paper it has the makings of a dedicated multi-modal logistics hub and airport has been planned on the outskirts of Delhi at Neemrana in the state of Rajasthan. To be built on the Delhi-Jaipur highway, it will be part of the Jaipur aerotropolis that includes a sq km industrial one on the DMIC corridor. The airport will be serviced by

Cargo Logistics I February 2016

11

COVER STORY

MIHAN gets a mighty push W

hether it is to boost the country’s development or ensuring a politician’s future, it is India and the city of Nagpur that will benefit. Remember Nagpur! That is the city with the ambitious Multimodal International Hub and Airport at Nagpur (MIHAN) and Special Economic Zone (SEZ) that was virtually forgotten till the Narendra Modi-led government at Delhi and later the Devendra Fadnavis government in Maharashtra came to power. Fadnavis, a citizen of Nagpur, along with another Nagpur bigwig Nitin Gadkari, the Minister for Surface Transport and Highways, have revived the MIHAN plans (in addition to being from the same region, both ministers are from Narendra Modi’s Bharatiya Janata Party). In fact, the city is on the fast-track to development with a whopping `1508.36 crore allotted for the project. The keenness of the government to boost infrastructure, has seen some crucial decisions. The Maharashtra government under Chief Minister Fadnavis, towards the end of last year, sent out a tough message to quite a few who had been allotted land at MIHAN-SEZ. Of the 80-odd companies that had been given land, 63 of them have been sent notices of termination since they have not done any work on the ground. The notices were sent after a recent meeting of the Special Task Force on MIHAN that is chaired by Gadkari (see photo on page 12). The 63 erring companies had pur-

chased plots a few years ago. According to sources present at the meeting, if some of the companies showed their willingness to start work and provided a roadmap for time-bound implementation of their project, the authorities would think about giving them more time and the termination notices could be withdrawn. Incidentally, among these companies are some well-known names like HCL, Wipro, Max Aerospace, etc. In a related move, the government of Maharashtra has decided to send out an invite to all those who were keen to invest in the MIHAN-SEZ area. On his part, Gadkari is believed to have instructed the Maharashtra Airport Development Company Limited (MADC) – the special purpose company set up to develop MIHAN and aviation infrastructure in Maharashtra -- to meet air carriers like Jet Airways, IndiGo, SpiceJet, etc to boost air traffic at Nagpur. In fact, MIHAN received a significant boost from Gulf major Etihad sometime ago when its President and Chief Executive Officer, James Hogan, met Fadnavis in Mumbai. He told the Chief Minister that the carrier would invest in the state. Officials present at the meeting said that Etihad was keen to set up a logistics park in the MIHAN complex. Even CM Fadnavis tweeted about his “fruitful� discussions with the Etihad team. They talked about bilateral cooperation in aviation, logistics and tourism. Perhaps, more important – as far as MIHAN is concerned -- was that the spotlight was on cargo exports. The Nagpur project has received a big boost from the Vidarbha Economic Development (VED) Council (a body of business-leaders and professionals who are committed to the economic development of Vidarbha, the region that comprises Nagpur) and its President Devendra Parekh who said that Etihad’s interest was “a good opportunity� for the Gulf carrier to start cargo services from the city. “They will require manpower and finances for that. Currently, all cargo services are handled from Hyderabad,� he said. Following Hogan’s meeting with the CM, an Etihad team – comprising Vice President (India and Indian sub-continent) Neerja Bhatia, Vice President (Cargo), David Kerr, Vice President (Network Planning), Alex Featherstone, General Manager (Airports) Matthew Davies and Senior Manager (International and Public Affairs) Moksha Watts – visited MIHAN.

12

February 2016 I Cargo Logistics

the users of the DMIC 4 per cent of which will pass through Rajasthan offering the state an opportunity for investment and livelihoood to its people. One of the key reasons for setting up the multi-modal logistics hub is its geographical location. On one side of the hub will be the dedicated freight corridor DFC) and on the other National Highway . The other reasons for establishing the airport are the problems of space faced by the Jaipur international airport where a new terminal was added recently. The airport in the historic city will be saturated in a few years. To top it all, the airport has only one runway and without even a parallel taxiway the number of aircraft it handles at the moment is limited. Now that the Dholera plan has begun along with the MIHAN initiative (see accompanying box) have begun and will hopefully see completion, the oft-repeated refrain uttered by air cargo and aviation stakeholders about the establishment of a global hub for cargo will end. uite some time ago, veteran freight forwarder and former resident of Air Cargo Agents Association of India ACAAI), J Krishnan had pointed out the innumerable instances when logistics and airline stakeholders raised the issue of making India an air cargo hub. He also questioned the possibility of such a hub ever being created Though airports like Hyderabad and engaluru have often stated their intention of becoming major gateways of South India, till the infrastructure around the airports and the links to the airports from the hinterland were completed there was no way these airports could become gateways, he averred. Krishnan pointed out the current deÂżFLHQFLHV LQ UHJXODWLRQV LQIUDVWUXFWXUH processes and policy that need to be idenWLÂżHG DQG LQQRYDWLYH VROXWLRQV IRXQG “Commercials will ultimately determine the success of the project as India does not HQMR\ WKH ÂżUVW PRYHU DGYDQWDJH ´ KH ZURWH and emphasi ed that “in the current scenario aviation hubs regional or InterQDWLRQDO ² ZLOO UHPDLQ D GLVWDQW GUHDP´ The country has not been able to create an aviation hub in all these years since its independence while next door neighbours, Dubai, Singapore, angkok and

COVER STORY

Hong Kong have taken away cargo and passengers from India. ut now some of our international airports seem have got into the act with the single-minded desire to become hubs. Our story begins sometime in December 2 when the Civil Aviation Economic Advisory Council CAEAC) decided to bring about changes in the air cargo set up. The industry had just weathered global recession and almost every aviation stakeholder had come to the realisation that it was cargo that brought in the money hence the emphasis on enhancing infrastructure for the sector. Keeping in view the projected rapid growth in air freight, the CAEAC set up a Working Group on Air Cargo and Express Service Industry to recommend a slew of policy initiatives. In fact, the terms of reference for the working group were clear: the group would assess the growth potential of air cargo in the country while identifying areas that require further improvements to sei e the emerging opportunities in international trade and in the context of faster pace of

lenges topping the list was, of course, economic growth in India. Headed by M infrastructure bottlenecks and acknowlKannan, Economic Advisor, Ministry of edged that airports in the country were Civil Aviation, the working group held developed primarily from the passengers’ seven meetings through 2 with stakeview hence the requirement for developholders comprising civil aviation and DLUOLQH RIÂżFLDOV FDUJR FDUULHUV DLUFUDIW ment of cargo facilities was not taken seriously. “Cargo is generally the last part manufacturers and airports. The 2 -page to be thought of and is relegated to that report that was submitted carried in-depth part of the airport, considered not analyses of issues and compreimportant otherwise. This hensive coverage of key asleaves the entire logistics pects of the air cargo busiThe report also of cargo infrastrucness that would lead pointed out that reguture and facility in a WR VSHFLÂżF DFWLRQDEOH latory hurdles had woefully inadequate points with timelines not only stymied the and poorly managed for implementation. growth of air cargo area of the airportâ€?, 7KDW WKH ÂżUVW RI but impacted the the report said. The its kind report was a industry spanning report also pointed out well-conceived exervarious departments that regulatory hurdles cise was pointed out by and ministries had not only stymied the Tulsi N Mirchandaney, growth of air cargo but imManaging Director, lue pacted the industry spanning varDart Aviation when she said LRXV GHSDUWPHQWV DQG PLQLVWULHV 5HĂ€HFWthat “it has highlighted the issues and asing the views of industry experts that air pirations of our sector. We look forward cargo growth worldwide would be driven to an equally aggressive implementation by Asia over the next two decades and that process.â€? The report detailed the key chal-

Cargo Logistics I February 2016

13

COVER STORY

Air cargo in the spotlight A

ir cargo stakeholders around India are hoping that 2016 will be the year when air cargo will be viewed not merely as a money-spinner but also as a separate entity with as much respect that passenger services command. The hope comes from government moves to boost cargo. The Ministry of Civil Aviation (MoCA) along with the Airports Authority of India (AAI) has started moves that will help the growth of air cargo — both domestic and international – in the country. Talking to ACNFT at the end of 2015, Chairman R K Srivastava said he was confident that the steps to improve cargo handling would usher in development in regions untouched till today while at the same time these moves would facilitate trade. One of the first moves by the government that will help cargo is the establishment of a cargo hub — the first one — in Chennai. The airport authorities have given the charge to RITES Limited — a government of India enterprise that has experts from engineering and management — to prepare a Detailed Project Report (DPR) on how the airport could be turned into international air cargo hubs (according to the AAI, the

intra-Asia growth will be expected to dominate world air cargo growth, the working group advocated the need to create strong air cargo infrastructure at the gateway airports of the country. It also recommended the creation of transshipment cargo facilities since Indian airports were ideally located to act as transfer hubs for various intercontinental routes like Australia and Europe and South East Asia. These routes, at present are dominated by European, Middle Eastern and South Eastern Asian carriers. The working group felt that in spite of the geographical advantage of the country’s airports, India had not been able to successfully compete in the market to FDSWXUH LQWHUFRQWLQHQWDO WUDI¿F 7KH JURXS put forward one of its ambitious deadlines

14

February 2016 I Cargo Logistics

Ministry of Civil Aviation has proposed for creation of air cargo hubs at the six major airports: Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad airports). The reports are expected sometime in the middle of January 2016. While Delhi airport is privately managed and operated, Chennai is the only metropolitan international airport under the management of the AAI. The annual handling capacity of the airport is 11,02,373 MT and in 2014-15, it had handled 303,904 MT. Meanwhile, air cargo stakeholders are also looking forward to the release of the much-awaited National Civil Aviation Policy. It is hoped that the government will, in all likelihood, give ‘infrastructure’ status to air cargo provided all related facilities were in the airport. If that happens, air cargo establishments would receive tax benefits under Section 80-IA of the Income Tax Act which provide a 10year tax holiday for infrastructure projects. Chairman Srivastava said that since there was “enormous potential for growth of air cargo in India, it is our endeavour to take advantage of the situation by providing cargo facilities even at second-tier cities in India which should also meet the principles of hub and spoke for overall de-

velopment of all regions in India�. AAI, he said, had planned to start handling domestic cargo “in a full-fledged manner which will also integrate the farflung areas and regions for development of air cargo, thus facilitate trade in the process�. Accordingly, he said, “24 airports across the country have been identified for this purpose. The objective,� he said, “was to create the basic infrastructure at AAI airports having potential for air cargo growth by creating Common User Domestic-cum-Cargo Terminals�. Also, the Air Cargo Logistics Promotion Board (ACLPB) has started to work on its topmost priority: chalk out a detailed plan to reduce dwell time of air cargo from ‘aircraft to truck’ first by less than 24 hours by December 31 of this year and to six hours by December 31, 2017. Perhaps, what is important to note is the decisive change in the thinking of the AAI. Srivastava pointed out that AAI “firmly believes that an open and constructive dialogue between global and national entities and between industry and regulators, will lead not only to mutual learning and understanding, but to a leaner, more agile, robust, effective and secure processes�. This would in turn, boost the economy

of creating at least one cargo hub in the country while promoting key gateway airports as cargo transshipment hubs. In fact, in discussions with industry and trade representatives, the working group found out that at least four air cargo transshipment hubs in India could be developed by 2 2 . These cargo hubs could easily capWXUH SHU FHQW RI WKH H[LVWLQJ WUDIÂżF along the intercontinental routes, experts VWDWHG 2QH RI WKH ÂżUVW DLUSRUWV RQ WKH ZD\ WR IXOÂżOOLQJ WKH KXE FULWHULD LV +\GHUabad’s Rajiv Gandhi International Airport RGIA). Not too long ago, when it signed RQ LWV ÂżUVW FOLHQW ² 7XUER -HW (QJLQHV ² IRU WKH FRXQWU\ÂśV ÂżUVW DLUSRUW EDVHG )UHH 7UDGH =RQH )7= LW WRRN D VWHS WRZDUGV KXE VWDWXV 7KH )UHH 7UDGH =RQH DW WKH DLU-

port was envisioned to fuel the growth of a strong airport-driven economy. It aims to provide compelling value proposition to players across the industry value chain by offering modern and integrated ecosystem that will bring down transportation costs and reduce the turnaround time for movePHQW RI JRRGV 7KH )7= ZRXOG DOVR SURvide facilities for servicing, distribution, trading, warehousing of goods and other value additions. All strong pointers to boosting air FDUJR JURZWK 7RS RIÂżFLDOV LQ WKH FDUJR division of the airport point out that the RSHUDWLRQV RI 7XUER -HW (QJLQHV ZRXOG comprise repair and calibration of aircraft parts with original equipment manufacturers and airlines sending equipment

COVER STORY

and better the living conditions of the people. The AAI’s moves apart, quite a few provincial governments have sent in their objections to the Draft National Aviation Policy. The states of Maharashtra (which has Mumbai airport), Tamil Nadu (with Chennai Airport), Rajasthan and Odisha have demanded that the policy should do away with one of the provisions that states that international and cargo airlines can only land at the six major airports. In fact, states like Odisha and Rajasthan have asked why the six airports should get preference. Though no official reaction to the objection has come from MoCA, those who have been handling the policy have said that there were objections when the provision – that airports at Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bengaluru would be the international and cargo hubs – was being included in the draft policy. After the objections that have been raised by the states, the provision would be deleted totally because there could be no discrimination between the states especially when a number of airlines have been asking for rights to touch more Indian cities.

from any part of the world to the facility at the FT . The facility will also derive synergies from the aircraft MRO located at the airport, besides supporting air cargo stakeholders such as airlines and logistics players, thus creating a multiplier effect and an integrated ecosystem. The develRSPHQW ZDV VLJQL¿FDQW FRQVLGHULQJ WKDW LW would complement air cargo growth and ERRVW SURGXFW GLYHUVL¿FDWLRQ DW 5*,$ erhaps, what is most important is that it dovetails with the airport’s strategy to establish facilities to provide seamless facilitation of goods and services in line with LWV YLVLRQ RI PDNLQJ 5*,$ WKH ¾/RJLVWLFV +XE RI ,QGLDœ 3XVKLQJ WKH DLU FDUJR KXE concept through, the airport management

While upgrading facilities for cargo has taken a leaf out of successful airport PRYHPHQW LV RQO\ RQH SDUW RI WKH 5*,$ stories being played out at Singapore, story, the airport has chalked out careDubai or Memphis, where there was little fully crafted out plans for development or no industrial activity. Today, the Hyderof the hub. There is the aerotropolis on abad airport is not only thriving but unlike 0HPSKLV ,QWHUQDWLRQDO $LUSRUW LWV YLVLRQ DFUHV WKDW +HPDQWK PHQWLRQHG DQG RQH ZKLFK UHFHLYHG SUDLVH IURP /RQGRQÂśV is to develop an aerotropolis around it mayor oris Johnson. The aerotropolis link the airport and businesses in the hina new urban concept that places an airport WHUODQG RIIHU TXLFN HIÂżFLHQW DFFHVV WR VXSin the centre with a city growing up around pliers and customers through the country it will promote education, healthcare, and the world attract investments, create entertainment, hospitality, commercial jobs, boost economic growth around the airport and, of course, in the process deand logistics ports. The airport authorities YHORS DQ LQWHJUDWHG /RJLVWLF +XE KDYH VLJQHG DQ DJUHHPHQW ZLWK WKH $SROOR 7KHUH LV WKHUHIRUH SRWHQWLDO IRU ,Q*URXS WR VHW XS D KRVSLWDO ,Q DGGLWLRQ WKH dia to play a major role in the air cargo airport has got in touch with international PDUNHW 6DLG +HPDQWK ' 3 &22 RI *05 corporates to form joint venture partner$LUSRUWV 6HFWRU +XE 'HYHORSPHQW Âł$LUVKLSV RQ WKH SURSRVHG DFUHV $Q DYLline operators who come to the airport ation special economic one spread over often joke and point out that the DFUHV LV VFKHGXOHG WR EH VHW XS Hyderabad airport is the best The airport has also started kept secret in the world.â€? some joint venture projIt is not that only 7KH\ DUH ÂłVWXQQHG DW HFWV $ PDLQWHQDQFH the Hyderabad airthe beautiful facility repair and overhaul port has geared itself that has been creat 052 IDFLOLW\ WKDW up to become a hub. edâ€?. Yes, there is the has begun its operThere are others classy terminal and ations. There is also too: Bengaluru and manicured gardens the world’s top airChennai are in the all around but becraft engine maker, run-up to acquiring ORZ DOO WKDW LV ÂłD VROLG &)0 ,QWHUQDWLRQDO gateway status hardcore pyramid the that inaugurated its enapex of which is a hub,â€? said gine maintenance training Hemanth. Even as a dedicated FHQWUH DW WKH +\GHUDEDG $LUSRUW cargo team ventures into the hinterland to $HURVSDFH 3DUN source business opportunities, the airport ,W LV QRW WKDW RQO\ WKH +\GHUDEDG DLUmanagement on its part is in innovation port has geared itself up to become a hub. mode at all times. This has seen the com7KHUH DUH RWKHUV WRR QHDUE\ %HQJDOXUX missioning of the second or alternate runand Chennai are in the run-up to acquirway capable of taking Code-E aircraft. ing gateway status. engaluru and HySome months later, a dedicated upgradderabad’s ambitions apart, the country’s ed cargo apron to accommodate Code-F DLU FDUJR VHFWRU ÂżQGV LWVHOI LQ D SHFXOLDU $ W\SH DLUFUDIW ZDV FRPPLVVLRQHG situation. While it has the potential to 3LWFKLQJ LWVHOI DV WKH Âł3KDUPD +XE´ RI handle increased tonnages, it cannot do the country, the dedicated cargo apron so because the infrastructure is still not was essential to accommodate widebody up to it. On the other hand, those in the planes. The move was aimed to boost business cannot give it up. Stakeholders and sustain the integrity of end-to-end have been crying themselves hoarse for cold chain from shippers’ premises to enhanced cargo infrastructure and when FRQVLJQHHV ,W ZDV ZH DUH JRLQJ LQWR WKH facilities are put up, the powers-that-be $HURVSDFH 3DUN WKH )UHH 7UDGH =RQH WKH oppose it tooth and nail. Such was the 6(= DQG WKH 052 $OO RI WKDW ÂżWV LQ YHU\ FDVH ZLWK $LU )UHLJKW 6WDWLRQV $)6 ZHOO LQWR WKDW ORQJWHUP SODQ WR IXOÂżOO RXU With one starting successful operations YLVLRQ WR EH WKH ORJLVWLF KXE IRU ,QGLD DQG in Chennai, it is hoped that the idea 6RXWK $VLD WR VWDUW ZLWK 7KHQ ZH ZLOO H[will catch on and be replicated in other pand further,â€? he said. cities too.

Cargo Logistics I February 2016

15

FOCUS

India has most potential to grow

S

upply chain executives expect an uptick in emerging markets growth in 2 6, despite concerns about further slowing in &KLQD ÀXFWXDWLRQV LQ RLO SULFHV DQG WKH possibility that the S economy could weaken, according to the annual Agility Emerging Markets Logistics Index compiled by Transport Intelligence Ti), a OHDGLQJ DQDO\VLV DQG UHVHDUFK ¿UP IRU WKH logistics industry. After a year of turbulence, 6 per cent of logistics industry executives surveyed say they are unclear on the direction of the global economy or expect more volatility in 2 6. In spite of their wariness, roughly the same proportion .4 per cent) say the International Monetary Fund forecast of 4. per cent growth in emerging markets

16

February 2016 I Cargo Logistics

is “about right.â€? Emerging markets grew an estimated .6 per cent to 4.2 per cent in 2 , down from 4. per cent in 2 4. The results are part of a new survey of more than , global logistics and supply chain executives in the 2 6 Agility Emerging Markets Logistics Index. The Index, in its seventh year, offers a snapshot of logistics industry sentiment and ranks the world’s 4 leading emerging markets based on their si e, business conditions, infrastructure and other factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. )RU WKH ÂżUVW WLPH VXSSO\ FKDLQ SURIHVsionals surveyed see India rather than China as the emerging market with the most growth potential. And in the over-

all Index rankings, which are based on economic and social data, India climbed two spots to No. , behind only China and nited Arab Emirates AE), on strong economic performance and initial reforms launched by the government of rime Minister Narendra Modi. China, the world’s second-largest economy, remains the leading emerging market by a large margin. Among the countries at the top of the Index rankings, AE No. 2), India ) and Malaysia 4) leaped over the commodity-dependent economies of Saudi Arabia ), ra il 6) and Indonesia ). Rounding out the top were Mexico ), Russia ) and Turkey ). Nigeria No. ) and Egypt No. 22) climbed spots in the data-driven por-

FOCUS

The annual Agility Emerging Markets Logistics Index places India, among emerging markets, as the one with the most potential to grow. In the overall Index rankings, which are based on economic and social data, India climbed two spots to No. 3, behind only China and United Arab Emirates (UAE), on strong economic performance and initial reforms launched by the government of Prime Minister Narendra Modi

tion of the Index, the biggest gains by any country in seven years of rankings. The potential of Nigeria, Africa’s largest economy, has come into sharper focus since the government updated the methods it uses to track economic performance. Egypt’s economy and business climate have stabili ed under its military government. Among the other Index findings: AE, home to the powerhouse economies of Dubai and Abu Dhabi, has the best business climate and the best “connectedness,” a measure of infrastructure and transport connections, of any emerging market. As a result, AE ranks as the world’s No. 2 emerging market after China, even though China’s economy is 2 WLPHV ODUJHU ,QGLD¶V LV ¿YH WLPHV ODUJHU

and ra il’s is six times larger. The most business friendly conditions are found in Gulf states. AE, atar and Oman have the best business climates a combination of market access and risk, regulation, foreign investment, urbani ation and wealth distribution. Other Gulf states also rank near the top in business conditions: Saudi Arabia No. ), Kuwait ) and ahrain ). AE, Malaysia, China, Chile lead in “connectivity,” meaning they have the best infrastructure and transport links, DORQJ ZLWK WKH PRVW HI¿FLHQW FXVWRPV DQG border administration. Countries in Latin America are losing ground to other emerging markets as a result of recession and political turmoil in ra il, the region’s biggest economy, and

depressed prices for commodity exports. Of the countries that slipped furthest in the Index, six are in Latin America: eru, Argentina, ruguay, ra il, Colombia and ene uela. Even so, Chile continues to be the top-ranked emerging market with GD under million. Russia, hurt by Western sanctions and isolated economically since it began backing rebels in kraine and intervened militarily in Syria, fell from No. to No. in the Index. Tension with Russia and the loss of economic output in the breakaway Crimea region have hurt kraine, as well. kraine fell four spots in the Index to No. 4. 2WKHU VXUYH\ ¿QGLQJV ,QGXVWU\ H[HFutives view oil prices and China’s economy as the leading risks to the global econ-

Cargo Logistics I February 2016

17

FOCUS

Ranking

Country China

2016 Index 7.91

2015 Index

1

8.09

Change in Ranking -

2

UAE

7.00

6.63

up 4

3

India

6.76

6.66

up 2

4

Malaysia

6.66

6.36

up 4

5

Saudi Arabia

6.62

6.76

down 3

6

Brazil

6.40

6.71

down 3

7

Indonesia

6.36

6.70

down 3

8

Mexico

6.17

6.30

up 1

9

Russia

6.16

6.57

down 2

10

Turkey

5.95

6.06

-

11

Chile

5.94

5.93

-

12

Qatar

5.83

5.87

-

13

Thailand

5.63

5.58

up 1 down 1

14

Oman

5.48

5.70

15

Philippines

5.34

5.15

up 1

16

South Africa

5.30

5.46

down 1 up 10

17

Nigeria

5.28

4.56

18

Kazakhstan

5.28

5.08

-

19

Vietnam

5.10

4.95

-

20

Morocco

5.05

5.11

down 3

21

Kuwait

5.02

4.91

-

22

Egypt

4.99

4.38

up 10

23

Pakistan

4.99

4.77

up 2

24

Uruguay

4.93

4.92

down 4

25

Colombia

4.91

4.86

down 3

26

Bahrain

4.90

4.78

down 2

27

Bangladesh

4.73

4.56

up 1

28

Peru

4.70

4.84

down 5

29

Sri Lanka

4.55

4.43

up 2

30

Algeria

4.46

4.10

up 4 down 5

31

Argentina

4.42

4.67

32

Ecuador

4.29

4.14

up 1

33

Jordan

4.28

4.54

down 4

34

Ukraine

4.09

4.46

down 4

35

Paraguay

3.71

3.74

up 3

36

Tunisia

3.69

3.87

down 1

37

Ethiopia

3.62

3.76

-

38

Bolivia

3.61

3.58

up 3 down 3

39

Venezuela

3.60

3.81

40

Tanzania

3.57

3.60

down 1

41

Libya

3.52

3.58

down 1

42

Lebanon

3.43

3.56

-

43

Kenya

3.38

3.47

-

44

Cambodia

3.36

3.46

-

45

Uganda

3.33

3.31

Source: Transport Intelligence

omy in 2 6. Logistics executives see “economic VKRFN´ DV WKH WRS ULVN LQ $VLD 3DFLÂżF D sign of concern that a slowdown in China could ripple through economies and supply chains elsewhere in the region. A VLJQLÂżFDQW SHUFHQWDJH SHU FHQW VDLG

18

February 2016 I Cargo Logistics

they are reassessing their China strateJLHV ,Q WKH SDVW LQGXVWU\ H[HFXWLYHV VDLG natural disasters and corruption were the top risks in Asia. )RU WKH ÂżUVW WLPH ORJLVWLFV SURIHVVLRQals see consumer spending in Africa as a more important driver of growth than

HQHUJ\ DQG PLQHUDOV 7KH\ LGHQWL¿HG 1LJHULD 6RXWK $IULFD *KDQD DQG .HQ\D DV Africa’s most promising markets. In spite RI UHFHQW JURZWK DQG LQYHVWPHQW 6XE 6Dharan Africa remains a frontier market for most supply chain executives: only 2 .2 per cent said they have operations there.

8-9-10, June, 2016 Pragati Maidan, New Delhi

www.IndiaWarehousingShow.com To Exhibit, Contact: Akshita Kapoor | +91-9811715124 | Co-located Show

Supported By

akshita.kapoor@reedmanch.com Organised By

Media Partner

SPECIAL REPORT

Emirates SkyCargo reaches out LUOLQHV À\ LQ DQG RXW RI FRXQWULHV IHUU\LQJ FDUJR DQG SDVVHQJHUV EXW UDUHO\ GR ZH VLW GRZQ WR FDOFXODWH WKHLU FRQWULEXWLRQ WR D QDWLRQ¶V HFRQRP\ 6R ZKHQ (PLUDWHV DQG WKH 1DWLRQDO &RXQFLO RI $SSOLHG (FRQRPLF 5HVHDUFK 1&$(5 LQ 1HZ 'HOKL UHOHDVHG WKH UHVXOWV RI DQ HFRQRPLF LPSDFW VWXG\ LW PDGH PDQ\ VLW XS DQG WDNH QRWH 1&$(5 HVWLPDWHG WKDW (PLUDWHV¶ RS-

A

HUDWLRQV KDYH FRQWULEXWHG RYHU 86 PLOOLRQ DQQXDOO\ WR ,QGLD¶V *'3 VXSSRUWLQJ RYHU ,QGLDQ MREV DQG JHQHUDWLQJ DOPRVW 86 ELOOLRQ LQ IRUHLJQ H[FKDQJH HDUQLQJV :LWK ,QGLD¶V DLP WR EHFRPH WKH WKLUG ODUJHVW DYLDWLRQ PDUNHW E\ DQG WKH ODUJHVW E\ WKH 1&$(5 VWXG\ HPSKDVLVHG WKH LPSRUWDQW FRQWULEXWLRQ WKDW (PLUDWHV PDNHV WR ,QGLD¶V HFRQRP\ DQG DYLDWLRQ VHFWRU 7KH UHSRUW DOVR IRUHFDVW WKH LQFUHDVHG FRQWULEX-

WLRQ WKDW (PLUDWHV ZRXOG EH DEOH WR PDNH LI FDSDFLW\ HQWLWOHPHQWV ZHUH H[SDQGHG 6DLG $GQDQ .D]LP 'LYLVLRQDO 6HQLRU 9LFH 3UHVLGHQW ± 6WUDWHJLF 3ODQQLQJ 5HYHQXH 2SWLPLVDWLRQ DQG $HURSROLWLFDO $IIDLUV (PLUDWHV $LUOLQH VDLG ³(PLUDWHV KDV EHHQ FRPPLWWHG WR ,QGLD VLQFH ZH VWDUWHG RSHUDWLRQV LQ ,Q WKH SDVW \HDUV ZH KDYH SURJUHVVLYHO\ JURZQ RXU VHUYLFHV WR ,QGLD E\ LQFUHDVLQJ FDSDFLW\ DQG RSHQLQJ QHZ URXWHV 7RGD\ ZH

One of the strongest players among international cargo carriers, Emirates SkyCargo has been on the Indian scene for quite some time. Over the years, it has built a reputation for being an innovator and a provider of world-class air cargo services. A report 20

February 2016 I Cargo Logistics

SPECIAL REPORT

to boost Indian exports RSHUDWH ZHHNO\ ÀLJKWV WR QLQH SRLQWV DFURVV ,QGLD RIIHULQJ RXU FXVWRPHUV LQ ,QGLD VHDPOHVV FRQQHFWLRQV WR PRUH WKDQ GHVWLQDWLRQV DQG DOVR IDFLOLWDWLQJ LQERXQG YLVLWRUV IURP DFURVV RXU JOREDO QHWZRUN LQWR ,QGLD ´ ³7KH 1&$(5 VWXG\ XQGHUOLQHV WKH LPSRUWDQFH RI DLU WUDQVSRUW DQG LWV UROH DV DQ HFRQRPLF GULYHU LQ ,QGLD $YLDWLRQ IDFLOLWDWHV WUDGH DQG WRXULVP DQG FUHDWHV HPSOR\PHQW LQ PDQ\ GLIIHUHQW LQGXVWULHV

(PLUDWHV¶ DQQXDO RSHUDWLRQV DORQH VXSSRUW PRUH WKDQ MREV DFURVV ,QGLD DQG FRQWULEXWH 86 PLOOLRQ WR WKH HFRQRP\ :H DUH FRQ¿GHQW WKDW ZLWK LQFUHDVHG FDSDFLW\ ZH FDQ FRQWULEXWH HYHQ PRUH WR ,QGLD¶V HFRQRPLF JURZWK DQG GH-

YHORSPHQW E\ RSHQLQJ QHZ FRQGXLWV IRU JURZWK LQ WKH H[SRUW VHJPHQW IRU (PLUDWHV 6N\&DUJR $FURVV RXU ,QGLD VWDWUDGH DQG LQYHVWPHQW WKURXJK RXU JURZWLRQV (PLUDWHV $LUOLQHV KDV VHHQ PRQWK LQJ ZRUOGZLGH QHWZRUN ´ 'U 6DXUDEK %DQG\RSDGK\D\ 1&$(5 RQ PRQWK RXWERXQG ORDG LPSURYHPHQWV DQG WKDW LV D SRVLWLYH VLJQ IRU ,QGLD ´ VDLG ³7KH FXUUHQW 1&$(5 UHSRUW REVHUYHG WKDW (PLUDWHV PDNHV DQ LPSRUWDQW KH VDLG :KDW LV PRUH LPSRUWDQW LV WKDW (PLUFRQWULEXWLRQ WR WKH ,QGLDQ DLU WUDQVSRUW VHFWRU LQ WHUPV RI SDVVHQJHU WUDI¿F DQG DWHV 6N\&DUJR KDV LQWURGXFHG LQLWLDWLYHV )RUHLJQ ([FKDQJH (DUQLQJV )(( 7KH WKDW SURPLVH WR WDNH WKH ,QGLDQ DLU FDUJR DLUOLQH¶V HFRQRPLF FRQWULEXWLRQ WR WKH DLU LQGXVWU\ IRUZDUG 2QH VXFK LV WKH LQWURWUDQVSRUW VHFWRU LV VHHQ WR SHUFRODWH WR WKH GXFWLRQ RI WKH DOO LQFOXVLYH IUHLJKW UDWH WKDW GRHV DZD\ ZLWK VHSDUDWH SULFLQJ FRPHFRQRP\ DW ODUJH WKURXJK YDULRXV PXOWLSRQHQWV EDVHG RQ ZHLJKW YROXPH SOXV SOLHU HIIHFWV ´ IXHO DQG VHFXULW\ VXUFKDUJHV :KLOH WKH 1&$(5 VWXG\ :HOFRPHG E\ VKLSSHUV DQG GHDOW ZLWK WKH SDVVHQJHU IRUZDUGHUV (PLUDWHV VLGH RI (PLUDWHV¶ EXVLWhile the NCAER study 6N\&DUJR¶V PRYH ZDV QHVV WKH FDUJR VLGH dealt with the passenger FKDUDFWHULVHG DV ³WKH WRR FDQ VD\ ZLWK side of Emirates’ business, EHVW VWDUW WR WKDW FHUWDLQW\ WKDW LW the cargo side too can say , FRXOG LPDJLQH´ DFFRQWULEXWHV TXLWH D with certainty that it conFRUGLQJ WR -RRVW YDQ FKXQN WR WKH ,QGLDQ tributes quite a chunk to 'RHVEXUJ DLUIUHLJKW HFRQRP\ (PLUDWHV SROLF\ PDQDJHU ZLWK WKH RSHUDWHV ZHHNO\ the Indian economy (XURSHDQ 6KLSSHUV¶ &RXQSDVVHQJHU ZLGH ERGLHG FLO +H ZHQW RQ WR DGG ³:H ÀLJKWV VHUYLQJ GHVWLQDFDQ RQO\ EH KDSS\ WKDW WKH ELJJHVW DLU WLRQV DFURVV ,QGLD SURYLGLQJ WKH FDUJR FDUULHU LQ WKH ZRUOG KDV GHFLGHG WR ,QGLDQ PDUNHW D SDQ ,QGLD EXVLQHVV RSPDNH WKH V\VWHP PXFK VLPSOHU ´ SRUWXQLW\ IRU H[SRUWV DQG LPSRUWV ,Q DG$ORQJ ZLWK WKH DOO LQFOXVLYH IUHLJKW GLWLRQ LW RSHUDWHV WZR IUHLJKWHU VHUYLFHV D ZHHN IURP ,QGLD RQH ZHHNO\ WXUQ DURXQG UDWHV (PLUDWHV 6N\&DUJR KDV JRQH DKHDG IUHLJKWHU % ) VHUYLFH IURP ':& WR WR LQWURGXFH H IUHLJKW 6SHDNLQJ WR D WUDGH 0XPEDL DQG EDFN DQG WKH VHFRQG % ) PDJD]LQH .HNL 3DWHO VDLG WKDW ³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± ,QGLD DQG 1HSDO DW (PLUDWHV XVH WKH H )UHLJKW VHUYLFH PRVW RI WKH EX6N\&DUJR ZDV TXRWHG VD\LQJ ZD\ EDFN LQ UHDXFUDWLF DXWKRULWLHV¶ V\VWHPV VWLOO KDYH QRW DGRSWHG WKH H ODQJXDJH ´ WKDW ,QGLD SURYLGHG D KXJH RSSRUWX$V IRU WKH NLQG RI JRRGV IHUULHG LQ QLW\ IRU WUDGH EXVLQHVV DQG WUDYHO« ³ZH KDYH ZLWQHVVHG D FRQVLGHUDEOH DPRXQW RI DQG RXW RI ,QGLD SKDUPD SOD\V DQ LP-

Cargo Logistics I February 2016

21

SPECIAL REPORT

portant role. Emirates offers world class infrastructure to ensure a smooth, consistent delivery. Emirates SkyCargo’s tailor-made solutions offer an unbroken Cool Chain, specialised containers and processes, greater security, plus complete compliance with industry and government regulations. Cool Chain solution is truly innovative to ship pharmaceutical and healthcare consignments. Emirates is greatly involved with all major pharma companies in India that export to Europe, East Europe, Africa, SA and South America. In addition to pharma, the carrier handles a wide variety of goods from India like garments, engineering goods, automotive spare parts, electronics and electrical goods, perishables and a whole lot more. Now that Emirates has launched the A to India, the cargo tonnages too are expected to grow since the aircraft provides uplift of about , kg in the belly-hold. Emirates SkyCargo is expected to grow with additional capacity in the coming years. “With the reduction in the operational challenges and improvement of economic conditions in the country we are expecting an increase in the freighter operations than the current offering of

22

February 2016 I Cargo Logistics

two per week depending on the market requirements for its scheduled services,” said atel.

said that “with the AE as India’s main trade hub and channel, there’s fantastic opportunity for its logistics industry, too, whether that be by sea or air. For a start, the current capacow with econoity of India’s airports mists and anaNow that is hugely underused lysts around Emirates has launched comparatively with the world emphasisthe A380 to India, the cargo other hubs that it ing that India could deals with, such as be the bright spot as tonnages too are expected Singapore, Hong far as trade and econto grow since the aircraft Kong, and Dubai. For omy were concerned, provides uplift of about example, India’s toEmirates SkyCargo is 8,000 kg in the beltal cargo volume of 2. strategically placed to ly-hold MMT in 2 covered all of ride the Indian wave. A LWV DLUSRUWV 7KDW¶V VLJQL¿FDQWO\ Financial Times’ feature lower than other major international airbrought out in the middle of 2 menports such as Hong Kong, which handled tioned that “a few things must happen 4.6 MMT, Dubai, . MMT, and Shangin order for India’s GD to return to the hai, 2.6 MMT. International cargo”, said growth rates of a few years ago. Its interQDWLRQDO WUDGH H[SDQVLRQ PXVW WDNH ÀLJKW the feature, “accounts for two-thirds of total cargo in India, and is handled by if it’s to continue towards its goal of midthe large airports such as Mumbai, Delhi, dle-income for the long-term. It must conChennai, and Hyderabad. tinue to focus on strong growth areas such The potential for air cargo being as pharmaceuticals, where diminishing ÀRZQ LQ DQG RXW RI ,QGLD¶V DLUSRUWV LV competition in China is beginning to open huge. However, cost is still a big concernup exciting revenue streams. And India ing factor. Typically, air freight is roughmust also come good on its plans to reduce O\ SULFHG DW QHDUO\ ¿YH WLPHV WKDW RI URDG the cost of its logistics industry, from the transport, and a staggering 2 to 6 times current 4 per cent of its overall GD to that of sea transport”. a hopeful nine per cent”. The feature also

N

SPOTLIGHT

Panama Canal: Bigger and better

In a few months, the Panama Canal expansion will be completed and it will be open for business. Capable of handling the New Panamax size of ships, the canal will open the doors for faster growth. Will that really happen?

O

nce completed hopefully by April , 2 6 the anama Canal expansion project, also known as the Third Set of Locks roject will double the capacity of the anama Canal by creating a new lane of WUDIÂżF 3HUKDSV PRUH LPSRUWDQW LV WKDW WKH lane will allow more and larger ships, the 1HZ 3DQDPD[ VL]H 7KHVH DUH DERXW RQH DQG a half times the current maximum width and length of the present anamax ships and can FDUU\ PRUH WKDQ WZLFH DV PXFK FDUJR Additionally, the project hopes to create demand for ports to handle the New anaPD[ VKLSV $PRQJ WKHVH SRUWV DUH D QXPEHU of S Eastern Seaboard ports while in the K, the ort of Southampton can handle post- anamax vessels and is expanding to

accommodate more and the ort of LiverSRRO ZLOO EH FDSDEOH E\ 2WKHU SRUWV too are renovating and enhancing infrastructure to accommodate the New anaPD[ VKLSV 2IÂżFLDOO\ SURSRVHG E\ WKH WKHQ 3UHVLdent Mart n Torrijos on April 24, 2 6, the SURMHFW ÂżQDOO\ EHJDQ LQ 7KH LQLWLDO announcements said that the Canal expansion would be completed by August 2 4 to coincide with the th anniversary of WKH RSHQLQJ RI WKH 3DQDPD &DQDO %XW WKH project has had to face strikes, disputes with the construction consortium over cost overUXQV DQG D KRVW RI RWKHU REVWDFOHV 5HVXOW WKH FRPSOHWLRQ GDWH KDV EHHQ SXVKHG IURP June 2 to December 2 and now April

The Third Set of Locks project seeks to build two new sets of locks, one on the AtODQWLF DQG DQRWKHU RQ WKH 3DFLÂżF VLGHV DQG H[FDYDWH QHZ FKDQQHOV WR WKH QHZ ORFNV Each set of locks will have three chamEHUV ZLWK ZDWHU VDYLQJ EDVLQV ,Q DGGLWLRQ the project will widen and deepen existing channels and raise the maximum operating OHYHO RI WKH *DWXQ /DNH There is, however, some question regarding the opening of the Canal in April 6RPHWLPH DJR WKH 3DQDPD &DQDO $GPLQLVWUDWRU -RUJH / 4XLMDQR YLVLWHG 0LDPL to update executives from the port, shipping OLQHV WHUPLQDO RSHUDWRUV DQG RIÂżFLDOV IURP )(& 5DLOZD\ RQ WKH H[SDQVLRQ DQG WR VHH how Miami-Dade port was preparing to handle the bigger ships that will cross the

Cargo Logistics I February 2016

23

SPOTLIGHT

expanded canal. Talking to the press, he said that though the canal expansion was per cent complete by the end of last year, a lot remained to be done. uijano mentioned that work was being done on the aids to navigation along the canal. “Mainly it is work on the locks that remains... We’ve also been testing the dam that separates the

24

February 2016 I Cargo Logistics

access channel from Gat n Lake). There’s also a lot of electro-mechanical work to be done and correction of a design problem on six of the eight sills in the new lock complexes. During testing, water seepage was detected in a concrete sill between the upper and middle lock chambers on the new 3DFL¿F ORFNV 7KDW VKRXOG EH ¿QLVKHG LQ

mid-January and then we’ll retest it. In January, we’ll determine the most likely date or range of dates for inauguration of the expanded canal. As for the inauguration, uijano said that while they had not changed the April date, “but it’s not going to be April . We still need additional information from our

SPOTLIGHT

contractor mainly because of the repairs RQ WKH OHDNDJHV WKDW ZDV VFKHGXOHG WR ÂżQLVK by January ). We’ll look at all the rest of the work that remains to be done to determine exactly when in April we’ll be open There’s always the possibility that it might not be April, but it shouldn’t be too much beyond that,â€? he said. Meanwhile, charges have been leveled at the AC , the anama Canal Administration, for its slow bureaucratic ways and payment procedures by Giuseppe uarta, the Director of G C, the consortium that is handling the project. uarta said that G C could “deliver the projectâ€? by April 2 6, but “this will be impossibleâ€? if the AC , maintains its current “bureaucratic and payment rhythm,â€? which will delay completion by six months. In an interview to a trade publication, uarta said that the delay was not due to the cracks and water leaks that were recently detected in the walls of three of the new lock levels, for which the G C had been blamed. In fact, while the leaks and cracks would be “completely repairedâ€?, the problem was the same that has existed throughout the project: the “excessive and inexplicable delay in all buUHDXFUDWLF SURFHGXUHV FHUWLÂżFDWLRQV DQG payments established by contractâ€? by the AC . Any payment authorisations had to go

trade demand, intermodal rail rates, canal toll levels, fuel prices, carrier mergers and acquisitions, and ocean carrier alliances. When work had begun in 2 , the shipping industry had said that the new locks would bring in more services. Accordingly, ports in the S on the east and Gulf Coast started work to expand terminals, deepen harbours and improve intermodal connections. Today, the expectations have been tempered since canal volumes will depend on economic growth that drives cargo demand. The expansion will, however, af-

TE s. The anama Canal Authority has calculated that by 2 the canal’s new locks will accommodate all but 6 vessels in the JOREDO FRQWDLQHU ÀHHW DFFRUGLQJ WR (GXDUGR enite , the authority’s deputy administrator. Even so, there will be intense competition with the Sue Canal, which has been gaining market share from anama. The Sue Canal in 2 completed an expansion programme that created a parallel waterway WR DOORZ WZR ZD\ YHVVHO WUDI¿F DQG UHGXFH vessel waiting times.

WKURXJK ÂżYH SHRSOH ZKR GHOD\HG WKH SURFHVV LQGHÂżQLWHO\ KH VDLG The delay notwithstanding, anama Canal with the larger locks will open in 2 6. Analysts have been forecasting the effect the canal will have on container shipping. According to them, changes will be seen over several years and these will include

fect carrier routings: large ships will be replaced by bigger vessels on the high-volume $VLD (XURSH DQG WUDQV 3DFL¿F URXWHV 7KH canal’s new locks will handle ships with capacities of up to 4, 2 -foot-equivalent units, depending on the vessels’ hull con¿JXUDWLRQ 3DQDPD[ FDSDFLW\ DW WKH H[LVWLQJ -by- , -foot locks is less than ,

The AC , however, expects the anama Canal to regain its lost market share unless the Sue offers “a dramatic reduction in price�. anama will offer an -day transit time advantage over the Sue for shipments from many Asian ports to the S. That would mean a lot of difference in terms of costs.

Cargo Logistics I February 2016

25

SHIPPING

Tough year for shipping

If 2015 was troublesome for the international shipping industry, 2016 promises to be even worse. Most analysts predict a gloomy future

I

t is just the beginning of the year but there have been worrying forecasts about how 2 6 is going to play out for shipping. Simply put, if 2 saw overcapacity and tussles in the marketplace for cargo, 2 6 will not only be a continuation of the same story but also be a “rough rideâ€?. According to eter Sand, Chief Shipping Analyst at IMCO in Denmark, 2 6 will witness oversupply of capacity. He pointed out in an outlook for the shipping markets that the negative indicators that were in evidence in 2 4 had not been overcome in 2 . In fact, 2 saw quite a low level of growth for global GD than the preYLRXV ÂżYH \HDUV 7KH SUHVHQW VFHQDULR ZDV according to Sand, largely due to the slow growth of the emerging economies that was led by changes in China’s economy. “As IMCO’s hope for a bounce-back in 2 6 wanes, shipping should brace itself for yet another challenging year. Despite this, the IMF) has forecast higher GD growth rates for 2 6 across the board. As China re-evaluates its future growth and direction, the shipping industry can expect an uncertain and lower level of support from one of the most important drivers of shipping, demand growth in recent times.â€? He went on to mention the causes of the volatility in shipping demand: unpredictability of China’s market forces making LW GLIÂżFXOW WR UHO\ RQ WKH XVXDO GULYHUV RU conditions within some Chinese industries. He was certain that the rebalancing of the Chinese economy from investment to consumer-driven growth would also drag down economic growth. 7KH VORZGRZQ LQ &KLQD ZDV KDYLQJ D ripple effect in emerging economies across Asia, South America and Africa. “China has in recent years spurred growth in emerging and developing markets, and as economic growth slows down for China as the main engine, so it does for others who

26

February 2016 I Cargo Logistics

QRUPDOO\ EHQHÂżW ´ 6DQG VDLG For shipping, he mentioned that the “ongoing devaluation of the Chinese Yuan against the S dollar is a two-edged sword. Exports may go up, which will be good for containerised imports into Europe, but imports will become more expensive in China, which may hamper the tanker and dry bulk markets.â€? 7KH UHFRYHU\ LQ GHPDQG IURP DGYDQFHG economies, Sand said, would not automat-

ically provide the boost to trade that many hope for. “Historically, growth in advanced economies has generated more trade than growth in emerging markets but that is not guaranteed going forward. What we know from the last few years is that the trade multiplier on economic growth has decreased from the level we saw before 2 and we have yet to see any improvement on that.� Where does all this put India Sand said that the only bright spot in 2 6 could be In-

SHIPPING

dia if the Narendra Modi-led administration could deliver another year of strong growth. GD in India grew by .4 per cent in 2 year on year, up from . per cent in 2-2 . “For 2 6, it’s going to be interesting to see if the Modi administration can deliver another year of strong growth, capitalising on the huge rebranding effort by In-

and the economic slowdown in emerging markets to exacerbate overcapacity, leading to declining and volatile freight rates. ut performance would vary across the segments, with dry-bulk and container shipping under pressure, while tanker and LNG shipping fare better. China’s slower growth and economic

dia as being a good place to do business,� he added. In addition, Europe and Japan were also “potential positive stories� this year. European shipping demand would continue at two speeds: the southern part struggling while those in the north generally performing better. Meanwhile, Fitch Ratings too has revised the global shipping sector outlook for 2 6 to negative from stable in 2 . It said that it expected muted global trade growth

WUDQVLWLRQ ZRXOG SRVH SDUWLFXODUO\ VLJQL¿cant risks for the shipping sector due to its key role in global trade, accounting for twothirds of global iron ore imports and 2 per cent of world coal imports. Weaker demand growth would increase overcapacity, the key factor blighting the shipping sector’s recovery prospects and putting pressure on freight rates. Fitch expected container shipping capacity to rise 6 per cent in 2 6 on top of a per cent increase in 2 , easily

outpacing demand growth of 2 per cent this year and -4. per cent in 2 6. Shipping companies would continue to implement defensive measures including cost-cutting, which will be helped by lower bunker prices, slow steaming, idling and the cancellation of sailings to achieve profitability. ut Fitch believed that these meaVXUHV ZHUH LQVXIÂżFLHQW WR OHDG WR D SURWUDFWed recovery in the sector. Rigorous capacity discipline along with a pick-up in demand would be necessary to reach a sustained equilibrium. It said in the outlook that larger container shipping companies that successfully implemented cost-containment measures ZRXOG UHPDLQ SURÂżWDEOH LQ %XW WKH ÂżQDQFLDOV RI VPDOOHU XQUDWHG HVSHFLDOO\ dry-bulk shippers will remain stretched, which will probably lead to more bankruptcies. Tanker shipping companies will outperform their peers in other segments due WR PRUH PRGHUDWH Ă€HHW JURZWK DQG KHDOWK\ demand resulting from oil stockpiling and KLJK UHÂżQHU\ WKURXJKSXW GXH WR ORZ RLO SULFes. There was more bad news as international accountant and shipping adviser Moore Stephens said that it expected the shipping industry to remain volatile in 2 6. According to Moore Stephens Shipping artner Richard Greiner: “The ultimate GHÂżQLWLRQ RI DQ RSWLPLVW KDV EHHQ FKDUDFterised as an accordion player with an answerphone. Such extreme optimism might EH GLIÂżFXOW WR ÂżQG LQ VKLSSLQJ WRGD\ EXW WKH portents for 2 6 are not all bad,â€? he said. The altic Dry Index, a measure of shipping rates for everything from pins to elephants, dropped to an all-time low in December, 2 , and fell in January too. “Most people blamed this on China for not consuming as much of anything as it did previously. Nevertheless, the dry bulk sector will probably have to reduce the newbuilding orderbook and increase ship recycling in 2 6 in order to restore the balance,â€? he said. The dry bulk sector’s key barometer, the %DOWLF 'U\ ,QGH[ ÂżUVW SXEOLVKHG LQ LV actually a barometer of shipping prices for a range of “dry bulk goodsâ€?, which include such essentials as cement, iron ore, coal, grain and fertiliser. It has been going down with news about dwindling Chinese demand.

Cargo Logistics I February 2016

27

INTERVIEW

“CRWC is committed to Move in India� The Central Railside Warehouse Company Ltd. (CRWC) has joined the ‘Make in India’ initiative and started its ‘Move in India’ movement by integrating the logistics solutions of the country that will benefit the railways and its traffic on a larger scale, says CRWC Managing Director K U Thankachen in this conversation with C&L

Central Railside Warehouse Company Ltd. (CRWC) was incorporated as a separate company under the department of food a few years ago to provide transit warehousing facilities on railway land. How far have you succeeded in your goals? CRWC, a Miniratna S , entered into a Mo with Railways in 2 for the development of 22 warehouses at various railway locations. We are now operating at terminals across India where we handle bagged commodities like cement, fertili ers, foodgrains and white goods which are generally transported via trains across these terminals.

What is the kind of business model you have? The very idea of providing warehousing at Railway terminals has been conceived to give value added service to customers at the Railway Terminal itself. The transit warehousing provided by us at goods

28

February 2016 I Cargo Logistics

sheds across the country has been useful in reducing damages and pilferages and savings on heavy demurrages to customers as well as in integrating the logistics services. In line with the Make in India’ concept, CRWC is committed towards the Move in India’ concept, which is bound to be a revolution in integrating the logistics solutions of the country benH¿WWLQJ WKH UDLOZD\V DQG LWV WUDI¿F RQ D larger scale. Indian Railways is not only a mammoth transportation organisation for people, but is also a big goods transporter. Needless to say, it needs warehousing services to undertake its logistics services. CRWC performs this crucial function of providing warehousing facilities and allied services to Indian Railways at crucial locations.

Going forward, what kind of expansion and diversification plans do you have? Till now, we have been limited to only the

22 rail warehouses provided. Now Railways have approved more warehouses with temperature-controlled facilities. Apart from this we also plan to get into allied areas like silos for massive storage of foodgrains, cement, etc. and handling RI VWHHO DXWRPRELOHV SDUFHO WUDIÂżF FROG chain, etc.

How do you plan to merge your cold chain idea with transit warehouses? The warehousing sector in India is dominated by small players with small capacities spread across India. All over the world, cold-chain service providers have ODUJH ÀHHW VL]HV DQG ELJ ZDUHKRXVHV ZLWK state-of-the-art technology. Thus, the costs of cold chain supply are prohibitive at a large scale in India. ecause of small and unorgani ed players, access to adequate and timely credit at a reasonable cost is also problematic. Also small or medium entrepreneurs are unable to provide

INTERVIEW

collateral in order to avail of loans from banks and are hence denied credit.

What was the scenario of warehousing and logistics sector in 2015? Do you see any progress in the coming months for the industry as a whole? Inspite of its strategic importance to the Indian economy, the opportunities that the Indian landscape presents and its immense potential for growth, the Indian warehousing sector confronts several challenges. These are the major ones: ‡ $YDLODELOLW\ RI ODQG UHVRXUFHV rocurement of land in a strategic location with clear title and proper approvals is still a key challenge for any new entrant to set up a warehouse. The shortage of existing clear land clasVL¿FDWLRQV LQ ,QGLDQ FLWLHV LV RI PDMRU concern as far as the development of warehouse ones are concerned. With land values peaking in the last WKUHH WR ¿YH \HDUV WKH DYDLODELOLW\ RI affordable land is another concern for the industry. It is getting increasingly GLI¿FXOW WR SURFXUH ODQG DW DIIRUGDEOH prices for building warehouses in India. To add to the misery, different states have different rules regarding agricultural land acquisition, which create entry barriers and have serious cost and time implications. ‡ )UDJPHQWHG PDUNHW Economies of scale cannot be explored as the warehousing sector in India is dominated by small players with small capacities spread across India. All over the world, cold-chain service providers have ODUJH ÀHHW VL]HV DQG ELJ ZDUHKRXVHV with state-of-the-art technology. Thus, the costs of cold chain supply are prohibitive at a large scale in India. ‡ 1RQ LQWHJUDWLRQ ZLWK FRPSOHWH VXS SO\ FKDLQ Though warehousing is an integral component of the supply chain, currently warehouses are structured on a standalone basis. Warehousing service providers often struggle with other supply chain stakeholders for integration of information and visibility. This disintegration in the upstream, downstream or both ends of warehousing leads to unpredictability of usage of space and facilities. In

‡

‡

‡

‡

addition, this impacts the value-added service performance level expected from warehousing service providers. 7UDLQHG PDQSRZHU LQ SRRU VXSSO\ The lack of training institutes adds to the woes of the warehousing sector. Evolving warehouse management processes and operations with more demanding customers, lack of attraction for new recruits arising from poor working conditions, relatively less atWUDFWLYH LQFHQWLYHV DQG EHQHÂżWV DQG the emergence of attractive alternate career options are reasons that contribute to the skill shortage in the Indian warehousing sector. ,7 SHQHWUDWLRQ LQDGHTXDWH The warehousing sector in India, with some exceptions, is characteri ed by low technology levels that act as a handicap in the emerging Indian and global market. Limited real-time visibility with manual inventory management, warehousing management, documentation, billing and reporting has raised doubts on the sustainability of a large number of warehousing players. The existence of these will be in jeopardy in the face of international competition from L and 4 L service providers. ([SHUWLVH OHYHOV QRW XSJUDGHG IRU PRGHUQ RSHUDWLRQ LQ ZDUHKRXVLQJ WHFKQRORJLHV A majority of the Indian warehousing players today have LQHIÂżFLHQW PHWKRGV RI VWRULQJ KDQdling and monitoring of goods. They also suffer from stock visibility issues, stock traceability, higher pilferages and damages. 7D[ UHJLPH UHIRUPV The delay in the implementation of GST and the existing complex sales and transport tax system tends to discourage hubs, the likes of which are often seen in developed countries.

Tell us about the initiatives CRWC has taken? CRWC has taken various initiatives in recent times. For example, in order to keep pace with the emerging technological trends and in order to provide a transparent and HIÂżFLHQW V\VWHP RI ZRUNLQJ LW KDV VWDUWHG maintaining a warehouse management system that provides support for all IT infra-

structure development where vendors can see and make an assessment of how much stock is lying at the warehouse where data is completely generated and managed via the computer. We are also planning to document 4 new railside warehouses which will be taken up in a phased manner. Some agreements have already been inked and many are under process like Joint enture Agreement and EOI with players like IWAI, IFFCO, etc. We are also in discussion for business avenues to run in mode for parcel services, silos, cold chain and other verticals. Logistics in India, by and large, is still an unorganised industry. With drivers bring pushed like reforms in E-commerce, GST, Road transportation, land procurement laws, etc, along with comparatively low crude oil prices, an era of excellent growth opportunities can be expected.

How can technology help in the growth of Indian logistics industry and how is CRWC positioned in technology? The warehousing Industry is under a tremendous transformation stage. Now, we have warehouses with ultramodern designs, racking systems, mechani ed handling equipments, IT enabled warehouse management system so on and so forth. Technology LV HQDEOLQJ JUHDWHU HI¿FLHQFLHV DQG PD[Lmising space utilisation with upcoming concepts like logistic parks, freight terminals, FTW ’s etc, which offer integrated services DQG HQKDQFH VXSSO\ FKDLQ HI¿FLHQFLHV 7KH growth in Indian economy will spur corresponding growth in this sector too.

Who are your present clients? CRWC has a good clientele base pan-India DQG KDV DFKLHYHG VLJQL¿FDQW EXVLQHVV UHsults using CRWC’s world-class warehousing services and business solutions. The commodities which are mainly handled at our terminal are cement, fertili ers and foodgrains. In the cement segment, major clients are ltratech Cement, India Cement, Lafarge, ACC, Ambuja, asavdatta, Jaypee, Maha, rism, Mycem, Nagarjuna, Deccan Cement, Cement Corporation, Manikgarh Cement, enna Cement, etc. Among others, our clients include RCF, KRI HCO, IFFCO, FACT, I L, JN FC, AC etc. in fertili ers and FCI and traders in foodgrains.

Cargo Logistics I February 2016

29

NEWS IN BRIEF

AIR

Etihad Airways reported strong cargo volumes for 2015, with 592,090 tonnes of freight and mail flown in total, a four per cent increase year-on-year. The national airline of the United Arab Emirates accounted for 88 per cent of cargo imports, exports and transfers at Abu Dhabi International Airport last year. The airline’s Etihad Cargo division extended its global reach on 2015 by offering belly hold capacity on Etihad Airways’ six new passenger destinations, bringing to 96 the total number of passenger destinations on which cargo services are currently provided.

VIGOROUS SEES 7.8 PER CENT CARGO SURGE Brussels Airport saw vigorous 2015 full year freight volumes grow 7.8 per cent to just over 4,89,000 tonnes, helped by the arrival of four new cargo carriers in the full freighter segment and the development of express services at the Belgian hub. Arnaud Feist, chief executive of Brussels Airport Company, said: “The growth is all the more striking because air freight transport in Europe looked bleak in the last 12 months.” Passenger aircraft belly hold cargo continued a status quo in comparison with 2014, but the integrator and full-freighter transport segments saw strong growth of 7 per cent and 18.1per cent respectively over prior year 2014.

AIRBRIDGECARGO CONTINUES TO SHINE Solidifying its reputation as one of the fastest-growing air cargo carriers in the world, AirBridgeCargo had a strong November, with a 27 percent year-over-year

30

February 2016 I Cargo Logistics

STEFAN WILDHIRT

ETIHAD CARGO VOLUMES UP BY 4 PER CENT

No more flowers for Lufthansa Cargo

F

rom March, Lufthansa Cargo will stop its twice-weekly service carrying cut flowers from Ecuador and Colombia, by way of Puerto Rico, and onwards to Frankfurt. By stopping in Puerto Rico, the service fell within the guidelines for operating in accordance with the openskies agreement between the United States and the European Union. However, Air France-KLM Cargo and Dutch Civil Aviation authorities objected, which began a legal dispute. Lufthansa said that it will not operate the scheduled service based on an adjustment in its flight schedules. Lufthansa still plans to import flowers from Bogotá and Quito for the upcoming Valentine’s and Mother’s Day festivities, both huge holidays for flower sales.

LH

Cargo

freight

volumes

down:

Lufthansa Cargo saw freight volumes decline last year as strikes, turbulence in the Chinese market and a stronger US dollar all weighed heavily on the German carrier’s results. Lufthansa Cargo carried 1.6 metre tonnes of freight and mail last year, which represents a 2.4 per cent decline on 2014 levels. In freight tonne km (FTK) terms, the airline recorded a 2.9 per cent year-onyear decrease to 8.4 billion FTK. However, it claimed to have maintained its leading position in Europe. Meanwhile, the carrier increased the capacity offered by two per cent over the last twelve months and as a result its load factor declined by 3.4 percentage points to 66.3 per cent.

Cargonaut strengthens Schiphol

E

yeing the importance of exchange of real-time information on air cargo, it has been decided to modernise Schiphol Airport’s Cargonaut information platform, with an investment of around 2 million Euros. Half of this sum will come in the form of a grant from Top Sector Logistics, while the remainder will be provided by Dutch Customs, Logius, ACN, Schiphol Group and Cargonaut itself. The investment aims to strengthen Schiphol’s competitive position, and therefore of all industry players at the airport together with the Government. Nanne Onland, CEO Cargonaut said, “The world around us is changing at high speed, and the strong and innovative position of Schiphol can no longer be taken for granted. Strong cooperation, well-managed processes and maximum support from state-of-the-art IT resources are the keys to increase the competitiveness of Schiphol, and therefore of all stakeholders, including the Government.”

NEWS IN BRIEF

Bombardier delivers first AIR cargo-combi to Japanese carrier

tonnage gain, compared to the previous November. Last month, ABC transported more than 50,000 tonnes of cargo across its global network, which includes Europe, North America and the Asia-Pacific region. For the first 11 months of 2015, the all-cargo carrier’s lift is up 20 per cent, year-over-year, totalling 4,39,000 tonnes of goods. Without providing more detail, ABC said freight tonne kilometers (FTK) for 2015 so far this year have had average growth of 25 per cent. Denis Ilin, AirBridgeCargo’s executive president said, “In 2015, ABC has continued following its growth strategy.”

CATHAY’S NEW LIVERY ON FREIGHTER FLEET

B

ombardier Commercial Aircraft’s new cargo-combi aircraft has been delivered to its first customer Ryukyu Air Commuter (RAC) Ltd in Okinawa, Japan, the first of five Q400 aircraft to be supplied to RAC. RAC is the launch customer for this new variant of the Q400 aircraft. The carrier operates domestic passenger services from the island of Okinawa to other islands of Okinawa Prefecture and the Amami Islands in Kagoshima Prefecture. Unveiled at the Farnborough Airshow in 2014, the Q400 is a turboprop aircraft designed with a standard single-class configuration for passenger service, or an optional dual-class interior for more

passenger comfort. It is also available in an optional extra-capacity configuration with up to 86 seats or a cargo-passenger combi configuration. The Q400 combi aircraft is the latest in a series of twin-engine, medium-range, turboprop airliners introduced in 1984 by de Havilland Canada and now produced by Bombardier Aerospace. Bombardier Commercial Aircraft builds the aircraft at a plant in Toronto. The new aircraft’s layout reportedly offers the greatest payload capability and operational flexibility in the turboprop segment. Bombardier claims it is the only commercial turboprop now available in various configurations.

Cathay Pacific Airways welcomed its first freighter showcasing the airline’s brand new livery. The freshly painted freighter, a Boeing 747-400ERF (Extended Range Freighter) arrived in Hong Kong from the Hong Kong Aircraft Engineering Company Limited (HAECO) facility in Xiamen. The new Cathay Pacific livery was first unveiled on one of the airline’s Boeing 777-300ER aircraft at an event held at Hong Kong International Airport on 1 November 2015. A continuation of the work that began in late 2014 to refresh Cathay Pacific’s brand identity, the livery is a vital part of the airline’s brand image and a symbol of the company’s values displayed on its most important asset. The new livery comprises three key design elements: the incorporation of the

Hactl sets all-time ramp records

B

eating its previous monthly record, Hactl, in November 2015 handled a total of 2,242 freighter aircraft, 10 more than the previous record set in November 2014. It also handled 95 freighters on December 2, 2015, a record-breaking number for a single day of operations. The previous record was set on November 19, 2014 and stood at 92. Simon Fu, executive director of Hactl said, “Our steady growth has been driven by our airline customers seeking a single provider for terminal and ramp operations.”

updated and streamlined brushwing; a simplification of the colour palette to Cathay Pacific green, grey, and white; and a more prominent display of the Cathay Pacific wordmark and brushwing.

Cargo Logistics I February 2016

31

NEWS IN BRIEF

SHIPPING AND PORTS

JNPT records Container Traffic

MoS TO INVEST `14,225 CR ON PORT

In order to bring the Major Ports in India at par with its contemporaries across the world, Ministry of Shipping has been emphasising on creation of additional capacities through development and construction of new berths or terminals, revamp of existing berths and terminals and other modernisation projects. “During 2015-16, a total of 30 projects are to be awarded which will involve an investment of `14,225 crores and capacity enhancement by 162 MTPA (million tonnes per annum),” the Shipping Ministry said in a statement. 26 projects with an investment of `10,543 crore were approved in 201415. The Ministry’s focus is on improving the existing port infrastructure, modernisation of the existing facilities and increasing port capacity.

COCHIN PORT, CONCOR TIES UP FOR CONTAINER SERVICES Cochin Port, one of the top 12 Major Ports in the country, has inked a pact with Container Corporation of India (CONCOR) for a weekly container train service. The trains are scheduled to connect the direct shipping services to Far East, China, Europe and Middle East. “Cochin Port Trust and CONCOR have entered into a MoU for the running of weekly container train service from Irugur ICD, Coimbatore to ICTT Vallarpadam, Cochin Port,” Ministry of Shipping said in a statement. CONCOR will provide storage space at very attractive terms and conditions to shipping lines who desire to stack the empty containers at Coimbatore, it added.

32

February 2016 I Cargo Logistics

J

awaharlal Nehru Port Trust (JNPT), the biggest container handling Port in India, has handled 4.48 million TEU’s (Twenty Foot Equivalent Unit) of container traffic during the calendar year 2015, as against 4.47 million TEU’s handled during the previous year 2014 thus registering a growth of 0.10 per cent. According to official sources, this was the highest ever container traffic handled in a year since the inception of the port. Also, the port handled 63.96 million tonnes of cargo during calendar year 2015. JNPCT, the port-owned and operated Container Terminal, handled 1.37 million TEUs (17.25 million tonnes) and registered a growth of 3.60 per cent in terms of TEUs and 4.65 per cent in terms of tonnes. JNPCT has handled the highest ever container traffic of 1.37 million TEUs in the calendar year 2015 since the inception of the port, surpassing the previous record of 1.35 million TEUs in the year 2006.

Ministry of Shipping initiates Project Green Port

T

he Ministry of Shipping has started a new project aimed to help make Major Ports across the country cleaner and greener. Project Green Ports will include 12 initiatives, such as preparation and monitoring plans, the acquisition of equipment required for monitoring environmental pollution and setting up sewage treatment plants. Other projects include setting up schemes for energy generation from renewable energy sources, the completion of Oil Spill Response facilities and improving the quality of harbour waters. Alongside this, there will also be 20

activities identified under Swachh Bharat Abhiyaan as part of Project Green Port. These will aim to clean the port premises, such as the wharf, repairing of port roads and modernising all toilet complexes in the operational area. In order to achieve these objectives, the government has promised that regular training will be provided to the staff in order to generate awareness and inculcate a positive attitude towards keeping the environment clean and green. All the major ports in the area have already initiated action on the above mentioned activities and are making good progress.

NEWS IN BRIEF

Second Chemical Berth at Mumbai Major Ports handle 13.45 Mn Tonnes more

C

M

umbai Port had got its second chemical berth. Built at a cost of `130 crore, the second chemical berth was inaugurated by Minister for Shipping, Road Transport and Highways Nitin Gadkari at Pir Pau. “This berth is situated about 3.2 km away from the shore in deep waters close to the main harbour channel,” the ministry said in a release. “This berth is laced

with modern handling facilities with separate loading arms for LPG (liquefied petroleum gas) and other chemicals.” According to the Ministry of Shipping, the new berth has faster discharge rates and is equipped with latest safety standards like modern fire-fighting equipment. “The cargo at this berth can be evacuated through pipelines to the storage areas at shore,” the statement elaborated.

argo traffic at the country’s 12 major ports witnessed an increase of 13.45 million tonnes during the period of April-December-2015 as compared to last year. Cargo traffic at the 12 major ports stood at 447.05 million tonnes between April-December 2015 as compared with 433.5 million tonnes handled during the same period in 2014. During the last three quarters of 2015-16, cargo traffic handled at India’s major ports recorded a growth of 4.3 per cent in the first quarter (AprilJune), 3.8 per cent in the second quarter (July-September) and 1.4 per cent in the third quarter (October-December). The volume of seaborne cargo is essentially in the nature of derived demand and is mainly shaped by the levels and changes in both global and domestic activity.

NEWS IN BRIEF

LAND MONETISATION SCHEME FOR NH PROJECTS The Ministry of Road Transport and Highways is considering monetisation of completed public funded national highway (NH) projects through Toll-Operate-Transfer (TOT) mode based on the expected collection of user fee receivables. NH Projects to be bid out under this mode will be finalised once the model is approved by the Government. However, no specific timeline could be ascertained at this stage. Various steps have been taken by the NHAI to remove the hurdles affecting the construction of NH projects including streamlining of land acquisition and regulatory clearances, close coordination with other ministries, revamped Disputes Resolution Mechanism, etc. NHAI has also decided not to award projects till all major pre-construction approvals are in-place for the project in order to avoid post bid delays and litigations.

Indian Railway losing freight in foodgrains segment

P

rocurement of foodgrains by state governments from within the state has been hurting Indian Railways. In the current fiscal, freight for foodgrains has come down by 7.6 million tonnes during April-December 2015. The other two sectors where Indian Railways has been losing share during the current fiscal are cement and container movement where commodities have come down by 3.8 million tonne

and 2.3 million tonne, respectively. A senior official in the railway ministry said that the Food Corporation of India was one of the biggest sources of freight revenue for the railways. In the foodgrain segment, 70-80 per cent of commodities were moved by FCI. However, the local procurement by the state governments had reduced this movement and the railways had observed a shortfall of 7.6 million tonnes in the first three quarters.

BANGLADESH, BHUTAN, INDIA & NEPAL DISCUSS RAIL NETWORK

Indo–Bangla, Indo–Nepal Rail Connectivity

Bangladesh, Bhutan, India and Nepal (BBIN) have agreed to begin discussions on the possibility of having a BBIN Rail Agreement drawing on the draft SAARC Regional Rail Agreement template. It was also agreed that land ports and land customs stations, crucial for sub-regional trade and transit, would be given a special attention by all four countries. An expert group will be constitut-

T

ed for exchanging best practices in water resources management and

34

February 2016 I Cargo Logistics

he 15 km-long Agartala to Akhaura project has been sanctioned for providing additional rail connectivity between India and Bangladesh with funding of the Indian portion of the project which is five kilometre by the Ministry of Development of North Eastern Region (DoNER) and of the Bangladesh portion which is 10 km by Ministry of External Affairs, the Rajya Sabha was informed recently. In a written reply, the Minister of State for Railways, Manoj Sinha, said the present cost of the project was `967.85 crore with the cost of the Bangladesh portion as `387.85 crore and that of India as `580 crore. As per the Memorandum of Understanding (MoU) signed between the Governments of India and Bangladesh, the Indian Railways will be responsible for the construction of the Indian portion and Bangladesh Railways for their portion. The execution of the Indian portion of the project has been en-

trusted to Indian Railway Construction Company Limited (IRCON). This line will cater to passengers as well as goods traffic, he said. Besides, the railways has also taken up two projects for Indo-Nepal connectivity. The 18.60 km Jogbani-Biratnagar (Nepal) new line project has been taken up at an anticipated cost of `407 crore and is being funded by the Ministry of External Affairs. Of the 18.60 km, 5.45 km length falls in India and 13.60 km in Nepal. The land for the entire project, except for a length of about 1.8 km falling in Nepal, has been acquired and earthwork, bridge works and others taken up, Sinha informed. Jaynagar-Bijalpura gauge conversion and its extension up to Bardibas (69 km) project was taken up at an anticipated cost of `540 crore which is also being funded by the Ministry of External Affairs. Of this, three kilometres falls in India and 66 km in Nepal.

NEWS IN BRIEF

NHAI signs MoU with ISRO and NECTAR

N

ational Highway Authority of India (NHAI) has signed Memorandum of Understanding (MoU) with National Remote Sensing Centre (NRSC) under the Indian Space Research Organisation (ISRO) and North East Centre for Technology Application and Research (NECTAR) to use spatial technology to monitor and manage National Highways. NHAI will receive satellite data and geospatial technology acquired by both Indian and foreign satellite product companies from National Remote Sensing Centre under ISRO. It uses the data and technology to prepare Detailed Project Report (DPR), prefeasibility status in new align-

ment, upgrading or road widening, monitoring of road segments which provide inputs in highway and infrastructure projects. Aerial images for infrastructure planning — acquired using Unmanned Aerial Vehicles (UAVs) by NECTAR — will be used to monitor the construction process, road asset management, feasibility report and DPR preparation, immediate assessment and remedy of problematic spots. NHAI will take up some pilot projects with both NRSC and NECTAR to identify and finalise actual use and benefits of both satellite data & geospatial technology and UAV technology in highway and infrastructure sector.

Online track management system inaugurated

U

nion Railway Minister Suresh Prabhu inaugurated the e-enabled Track Management System (TMS) and mobile application of TMS on Indian Railway recently. The Railways have brought in these initiatives to bring efficiency and effectiveness in management practices which involve handling of huge volumes of data as well as dynamic analysis of various measurement and defects and planning, deployment of large resources. Along with these two

initiatives, the minister also inaugurated Track Inventory Management System on Northern Railway. An important milestone to promote e-working in the civil engineering department of Indian Railways, the Track Inventory Management System has been implemented on all the 68 divisions of Indian Railways. With the implementation of this system, various activities of Track Inspection, Monitoring and Maintenance are now on the IT platform

LAND on specifics of the identified projects, power trade, inter-grid connectivity, flood forecasting and other areas of possible cooperation. The four South Asian countries reached the consensus at the recent two-day third Joint Working Group (JWG) meetings on Sub-Regional Cooperation on Water Resources Management and Power/Hydropower and on Connectivity and Transit.

GOVT MULLS SETTING UP SEPARATE TRANSPORT DEPT Road Transport and Highway Minister Nitin Gadkari said that the government was planning to set up a separate transport department comprising experts from the automobile sector, alternative fuel and emission, etc. “We had requested the Prime Minister Narendra Modi and the Cabinet Secretariat for a separate transport department. The Cabinet Secretary has approved the proposal. After obtaining the Finance Committee approval we will go to the Cabinet soon,” said Gadkari. The Minister pointed out that the automobile sector was huge and had a lot of work. The current department apparently has 10-12 people to address the larger issues pertaining to the transport sector. Presently the transport department is not independent, as Road and Transport comes under one Secretary, he added.

EXPANSION OF NATIONAL HIGHWAYS IN KERALA Development of NH 17 and NH 47 to four lane standard in the state of Kerala was taken up by National Highways Authority of India for which appointment of consultants for preparation of Detailed Project Reports were in progress. Works amounting to `2078 crore have also been included in the Annual Plan 2015-16 and a total of 28 works amounting to `2328 crore were in various stage of progress in Kerala.

Cargo Logistics I February 2016

35

NEWS IN BRIEF

LAND

Now, a Logistics Dictionary

AITWA INTRODUCES CRI All India Transporters’ Welfare Association (AITWA) recently introduced Carriage by Road Index (CRI) at the national level, though it had already launched CRI on January 1, 2016, through its monthly journal Parivahan Pragati. AITWA had data of the past three years as the pilot project of Carriage by Road Index. However it introduced the Index at 100 from January 2016. It had considered all the cost input up-dated data up to December 31, 2015. Any changes taking place from January 1, 2016 woould reflect in the Index of February 1, 2016.

MoRTH Gives Nod to Carriage by Road Rules: All India Transporters Welfare Association (AITWA) has constantly been working for the welfare of the transporters and often has taken up paramount issues to Road Transport and Highway Ministry, Home Ministry and Finance Ministry. One such important issue is Carriage by Road Rules and now that the ministry has amended the rule as per the suggestions given by AITWA there are lots to cheer about. For a while now, the Road transport and highways ministry was working towards altering some key provisions in Carriage by Road Rules 2011 on revocation of registration and imposition of liability for loss of goods. As per the Carriage by Road Rules 2011, which supports document to Carriage by Road Act 2007, the transporter should pay the consignee an amount equivalent to 10 times the freight paid if the consignment is lost or damaged. But the proposed amendments, which the ministry has considered now, are going to relax to the transporters. Earlier Union Minister of Road Transport Highways and Shipping Nitin Gadkari promised “We are looking at what can be done for the transporters, who have been protesting to the rules.” The move to alter the rules has been

36

February 2016 I Cargo Logistics

U

nion Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan, recently released the CRWC Shabdawali published by the Central Railside Warehouse Company, a Government of India enterprise in a function held at New Delhi. The Shabdawali contains technical terms pertaining to logistic industry along with information about Central Railside Warehouse Company in both English and Hindi. On this occasion senior officials of the Ministry and CRWC were also present. CRWC is a Public Sector Under-

taking under the Ministry of Consumer Affairs. The company provides multi-modal logistics services to the trade and supports the economy to reduce logistics costs. CRWC presently operates Railside Warehousing Complexes across the country. Receiving Award: Senior Officers of CRWC receiving Udyog Rattan Award conferred by Institute of Economic Studies on behalf of K U Thankachen , MD, CRWC Ltd from Bhishm Narayan Singh, Former Governor of Tamil Nadu and B P Singh, former Governor of Sikkim.

DB Schenker opens its 2nd largest warehouse in India

S

chenker India which is part of DB Schenker, the transport and logistics division of Deutsche Bahn AG has announced the opening of its biggest warehouse in India at Bhiwandi near Mumbai in western region. The 172,841 square feet (approximately 16,000 sqm) is also DB Schenker’s second largest warehouse anywhere in the world. This new facility employs around 60 people at the beginning and will handle warehousing operations for palletised and non-palletised cargo to the city and nearby areas. Two other large Schenker Logistics Centers covering

362,000 square feet (33,400 sqm) space are already operational in the area with modern supply chain capabilities. “Improving our services levels and adding value to the distribution system is our top priority,” said Shrichand Chimnani, Director, Logistics, Schenker India. “The new warehouse will allow us to consolidate a smart distribution system for customers in the west region. The tactical location and modern infrastructure ensures the high efficiency level in our operations even in case of anticipated increase in product volumes in next few years.”

NEWS IN BRIEF

JVs between railways, states get Cabinet nod

Cold storages in railways

E

U

yeing greater financial role of states in execution of rail projects, the Union Cabinet has approved the formation of Joint Venture companies with several states, which will enable the Centre to mobilise resources for various rail infrastructure projects. Chaired by Prime Minister Narendra Modi, the Cabinet decided that the initial paidup capital of the Railway Ministry would be limited to `50 crore for each state. The JVs envisage financial participation of the states as well as faster decision-making process to ensure speedy implementation of rail projects in respective states. The joint venture companies would be formed with equity participation from the Ministry of Railways and the state governments concerned. Each joint venture will have an initial paid-up capital of `100 crore and based on the projects to be undertaken, further fund infusion would be done on approval of the project. The joint ventures will be allowed to form project-specific special purpose vehicles with equity holding from other stakeholders such as banks, ports, public sector undertakings, mining companies, and others.

nder a pilot project called Kisan Vision Project, the Container Corporation of India Limited (CONCOR), the Central Warehousing Corporation (CWC) and the Central Railside Warehouse Company Limited (CRWC) were asked to provide infrastructure to encourage development of facilities for setting up cold storages and temperature-controlled perishable cargo centres as well as developing agri-retail outlets through public private partnership (PPP) mode at six locations on the railways. CONCOR’s fully owned subsidiary, Fresh and Healthy Enterprises Limited (FHEL), is operating a controlled-atmosphere store at Rai (Sonepat) in Haryana with a capacity of 11700 metric tonnes.

APPOINTMENTS

CEVA

Adani Ports & SEZ

CEVA Logistics, one of the world’s largest supply chain management companies had appointed Kamaljit (Kam) Hunjan to the position of Senior Vice President Global Healthcare Operations recently. He will be based from the company’s London Heathrow office and will report directly to Chief Operating Officer Contract Logistics, Brett Bissell. Hunjan joins CEVA from General Electric Healthcare in the USA where he was most recently Global Logistics General Manager with responsibility for logistics strategy, fulfilment and operations improvement. He brings more than 26 years’ experience of the logistics industry to his new role where he will be responsible for driving operational excellence, process improvements and management of all healthcare operational matters.

Karan Adani, son of Adani Group Chairman, Gautam Adani, has been appointed as the CEO of India’s Adani Ports and Special Economic Zone (APSEZ) recently. He had been associated with the group’s ports business since 2009 and “aims to build the group’s identity around an integrated logistics business model, backed by his sound understanding of new processes, systems and macroeconomic issues,” a regulatory filing reads. Karan Adani takes over from Sudipta Bhattacharya, who is to head up APSEZ’s operations in North America where he will be responsible “for driving the significant emerging opportunities between India and the US,” the filing added. Bhattacharya, in his new role, will be responsible for driving the significant emerging opportunities between India and the US, it said. Shares of APSEZ were up 0.81 per cent to `260.60 apiece in the afternoon trade at BSE.

38

February 2016 I Cargo Logistics

DHL Express DHL Express named Ken Lee as the new CEO of Asia Pacific. He succeeded Jerry Hsu, who was retiring after an illustrious career with DHL Express since 2001. As China continues to be an important part of the global economy, it will become a standalone region for DHL Express, with Wu Dongming remaining at the helm as the CEO of China. Both Lee and Wu have joined the DHL Express Global Management Board. Ken Allen, CEO of DHL Express, said, “Sustaining and consolidating growth in Asia Pacific is of critical importance to DHL, particularly as the region’s economies continue steadily on their strong upward trajectory. Ken’s track record at driving incredible mature-market business growth, combined with an unparalleled breadth of strategic vision across Asia’s countries and industries, puts him in good stead to maintain and extend DHL Express’ market leadership.

STATS

TRAFFIC HANDLED AT MAJOR PORTS (DURING APRIL TO DECEMBER, 2015* VIS-A-VIS APRIL TO DECEMBER, 2014)

(*) TENTATIVE

(IN ' 000 TONNES)

PORTS

APRIL TO DECEMBER

% VARIATION

TRAFFIC

AGAINST PREV.

2015* 2

1 KOLKATA Kolkata Dock System

2014 3

YEAR TRAFFIC 4

12396

11023

12.46

Haldia Dock Complex

24908

21884

TOTAL: KOLKATA

37304

32907

13.82 13.36

PARADIP

55132

52391

5.23

VISAKHAPATNAM

42247

43796

-3.54

KAMARAJAR (ENNORE)

22968

22627

1.51

CHENNAI

37417

39781

-5.94

V.O. CHIDAMBARANAR

27808

23309

19.30

COCHIN

16491

15992

3.12

NEW MANGALORE

25290

27102

-6.69

MORMUGAO

13895

10269

35.31

MUMBAI

46395

46166

0.50

JNPT

48231

48073

0.33

KANDLA

73872

70856

4.26

447050

433269

3.18

TOTAL:

Source:INDIAN PORTS ASSOCIATION

Cargo and Logistics

FOR 36 ISSUES

{

C&L

{ SAVE `432/-

Please accept my subscription for C&L NAME________________________________________________________________________________________________________________________ ADDRESS_____________________________________________________________________________________________________________________ PH. NO. ______________________________________________________________________________________________________________________ PAYMENT CASH CHEQUE CHEQUE/DD. NO. _____________________________________________________ DRAWN ON___________________________________________ CREDIT CARD NO._____________________________________________________ DATE_________________________________________________ SIGNATURE___________________________________________________________

No. of Issues

Cover Price

Discount

You Pay

12

`720/-

10%

`648/-

`72/-

24

`1440/-

15%

`1224/-

`216/-

36

`2160/-

20%

`1728/-

`432/-

Cheque / DD should be drawn in favour of NEWS KINGDOM MEDIA PVT. LTD. Send your subscription to News Kingdom Media Pvt. Ltd., D-11 Basement, Nizamuddin East, New Delhi –110 013, Contact: +91-11-41033381-82, Email: vkaul@newsking.in

You Save

STATS

TRAFFICTRAFFIC HANDLED AT MAJOR PORTS HANDLED AT MAJOR PORTS (DURING APRIL TO DECEMBER'2015* VIS A VIS APRIL TO DECEMBER'2014) (*)

TENTATIVE

(IN '000 TONNES)

PORT

TRAFFIC PERIOD

P.O.L.

IRON ORE

FERTILI ER FIN. RAW

COAL CONTAINER THERMAL COKING TONNAGE TEUs

OTHER CARGO

TOTAL

TRF APRIL-DEC.'2015

439

12

90

52

284

6768

424

4751

12396

TRF APRIL-DEC.'2014

474

60

95

63

105

6107

397

4119

11023

TRF APRIL-DEC.'2015

5175

869

259

265

1117

4769

987

63 11467

24908

TRF APRIL-DEC.'2014

3942

1739

215

364

850

4212

1357

82

9205

21884

TRF APRIL-DEC.'2015

5614

881

349

317

1117

5053

7755

487 16218

37304

TRF APRIL-DEC.'2014

4416

1799

310

427

850

4317

7464

479 13324

32907

TRF APRIL-DEC.'2015

14634

502

3287

22579

6503

105

4

7522

55132

TRF APRIL-DEC.'2014

13178

1445

51

3305

22477

5775

42

3

6118

52391

TRF APRIL-DEC.'2015

13014

3862

1683

679

2383

3864

3651

210 13111

42247

TRF APRIL-DEC.'2014

10846

6855

1299

597

1749

4186

3313

188 14951

43796

KAMARAJAR(ENNORE) TRF APRIL-DEC.'2015

2891

18113

1

1963

22968

TRF APRIL-DEC.'2014

2336

18050

1983

22627

TRF APRIL-DEC.'2015

8684

TRF APRIL-DEC.'2014

9574

V.O.CHIDAMBARANAR TRF APRIL-DEC.'2015

540

TRF APRIL-DEC.'2014

% VAR. AGAINST 2014 15

KOLKATA Kolkata Dock System 12.46

Haldia Dock Complex

PARADIP

VISAKHAPATNAM

CHENNAI

COCHIN

NEW MANGALORE

MORMUGAO

MUMBAI

J.N.P.T.

KANDLA

ALL PORTS

% Va iatio

40

258

61

176

22575

1170

5921

37417

146

173

255

22789

1181

6844

39781

86

362

763

8661

8809

445

8587

27808

443

384

787

6148

8014

408

7533

23309

TRF APRIL-DEC.'2015

10675

22

230

4204

306

1360

16491

TRF APRIL-DEC.'2014

10269

54

274

98

4025

281

1272

15992

TRF APRIL-DEC.'2015

17041

336

601

73

2488

2037

797

54

1917

25290

TRF APRIL-DEC.'2014

16834

1334

462

37

1952

4140

685

47

1658

27102

TRF APRIL-DEC.'2015

408

1496

163

2288

6042

251

19

3247

13895

TRF APRIL-DEC.'2014

418

368

148

988

4784

195

19

3368

10269

TRF APRIL-DEC.'2015

27076

129

220

2947

397

33 15626

46395

TRF APRIL-DEC.'2014

27032

141

182

3277

403

35 15131

46166

TRF APRIL-DEC.'2015

3490

42626

3357

2115

48231

TRF APRIL-DEC.'2014

2888

42957

3346

2228

48073

TRF APRIL-DEC.'2015

40214

702

3912

154

10930

111

1 17823

73872

TRF APRIL-DEC.'2014

41961

726

2998

569

7779

132

16691

70856

TRF APRIL-DEC.'2015 144281

7865

7282

5899

71506

23610

91197

6086 95410 447050

TRF APRIL-DEC.'2014 140195 12673

6020

6433

63368

23592

89887

5987 91101 433269

20.96

8.30

12.84

0.08

1.46

om p e io s yea

February 2016 I Cargo Logistics

2.91

37.94

26

1.65

4.73

3.18

13.36

5.23

3.54

1.51

5.94

19.30

3.12

6.69

35.31

0.50

0.33

4.26

3.18

Source:INDIAN PORTS ASSOCIATION

TOTAL: KOLKATA

13.82

STATS

INTERNATIONAL FREIGHT FREIGHT (IN TONNES) Fo t e mo t Fo t e pe iod Ap il Decem e SL. NO. DECEMBER DECEMBER % % 2015 16 2014 15 2015 2014 C a e C a e (A) 18 INTERNATIONAL AIRPORTS AIRPORT

1

CHENNAI

17557

17551

0.0

171136

168678

1.5

2

KOLKATA

4142

4089

1.3

37623

36583

2.8

3

AHMEDABAD

2190

1300

68.5

17651

13424

31.5

4

GOA

5

TRIVANDRUM

110

99

11.1

1050

900

16.7

3059

2532

20.8

27103

21130

28.3

6

CALICUT

757

1773

-57.3

10512

16307

-35.5

7

LUCKNOW

192

134

43.3

1947

1044

86.5

8

GUWAHATI

9

JAIPUR

10

SRINAGAR

0

0

-

2

0

-

11

BHUBANESWAR

0

0

-

0

0

-

12

COIMBATORE

82

70

17.1

826

687

20.2

13

MANGALORE

29

30

-3.3

448

223

100.9

14

TRICHY

403

394

2.3

5055

3445

46.7

15

AMRITSAR

29

51

-43.1

484

399

21.3

16

VARANASI

0

0

-

4

0

-

17

PORTBLAIR

0

0

0

0

18

IMPHAL

0 28741

0 28083

2.3

0 274739

0 263313

4.3

TOTAL

3

0

-

8

12

-33.3

188

60

213.3

890

481

85.0

(B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

40577

33764

20.2

367570

322178

14.1

20

MUMBAI (MIAL)

40894

42659

-4.1

368810

363397

1.5

21

BANGALORE (BIAL)

16223

13463

20.5

130860

125116

4.6

22

HYDERABAD (GHIAL)

4836

4559

6.1

44602

41303

8.0

23

COCHIN(CIAL)

5496

3692

48.9

50072

47918

4.5

24

NAGPUR (MIPL)

TOTAL

59

48

22.9

316

301

5.0

108085

98185

10.1

962230

900213

6.9

-

1

0

-

(C) 8 CUSTOM AIRPORTS 25

PUNE

0

0

26

CHANDIGARH

0

0 -

0

0 -

27

PATNA

0

0

-

0

0 -

28

VISAKHAPATNAM

1

0

-

21

0

-

29

BAGDOGRA

0

0

-

0

3

-100.0

30

1

2100.0

MADURAI

0

0

-

22

31

AURANGABAD

0

0

-

0

0-

32

GAYA

-

0

0 -

0

0

TOTAL

1

0

44

4

1000.0

(D) 45 DOMESTIC AIRPORTS

0

0

88

86

2.3

(E) OTHER AIRPORTS

0

0

0

0

136827

126268

1237101

1163616

GRAND TOTAL (A B C D E)

8.4

6.3

Source: AIRPORTS AUTHORITY OF INDIA

C Cargo argo ar go L Logistics ogis og istitics css I F c February eb ebru bru ruar ary ry 20 2016 16

41

STATS

DOMESTIC FREIGHT FREIGHT (IN TONNES) Fo t e mo t Fo t e pe iod Ap il Decem e SL. NO. DECEMBER DECEMBER % % 2015 16 2014 15 2015 2014 C a e C a e (A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 6015 7196 -16.4 62762 61081 2.8 2 KOLKATA 7237 6892 5.0 67767 68565 -1.2 3 AHMEDABAD 3472 3561 -2.5 33840 31734 6.6 4 GOA 221 337 -34.4 2628 2397 9.6 5 TRIVANDRUM 107 58 84.5 675 879 -23.2 6 CALICUT 15 21 -28.6 303 273 11.0 7 LUCKNOW 123 310 -60.3 1977 2571 -23.1 8 GUWAHATI 1066 1033 3.2 11699 7358 59.0 9 JAIPUR 1177 354 232.5 4922 1418 247.1 10 SRINAGAR 586 397 47.6 3999 4855 -17.6 11 BHUBANESWAR 621 486 27.8 5078 4206 20.7 12 COIMBATORE 572 686 -16.6 5140 5802 -11.4 13 MANGALORE 39 33 18.2 292 275 6.2 14 TRICHY 0 0 0 0 15 AMRITSAR 17 12 41.7 149 285 -47.7 16 687 480 43.1 VARANASI 73 51 43.1 17 PORTBLAIR 339 362 -6.4 2792 2278 22.6 18 -12.4 0.5 IMPHAL 338 386 3415 3399 TOTAL 22018 22175 0.7 208125 197856 5.2 (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 25278 23117 9.3 222329 203878 9.1 20 MUMBAI (MIAL) 17768 17379 2.2 157696 158922 -0.8 21 BANGALORE (BIAL) 10049 9728 3.3 87953 85944 2.3 22 HYDERABAD (GHIAL) 4325 3888 11.2 38310 32589 17.6 23 COCHIN(CIAL) 1031 919 12.2 9043 8458 6.9 24 NAGPUR (MIPL) 511 476 7.4 4566 4242 7.6 TOTAL 58962 55507 6.2 519897 494033 5.2 (C) 8 CUSTOM AIRPORTS 25 2483 2471 0.5 22995 20814 10.5 PUNE 26 365 275 32.7 3484 4262 -18.3 CHANDIGARH 27 349 421 -17.1 3349 3933 -14.8 PATNA 28 253 70 261.4 1334 1003 33.0 VISAKHAPATNAM 29 393 264 48.9 3405 2219 53.4 BAGDOGRA 30 52 73 -28.8 730 859 -15.0 MADURAI 31 125 94 33.0 1062 962 10.4 AURANGABAD 32 0 0 0 0 GAYA TOTAL 4020 3668 9.6 36359 34052 6.8 (D) 45 DOMESTIC AIRPORTS 33 621 514 20.8 5158 4846 6.4 INDORE 34 118 90 31.1 1224 1255 -2.5 JAMMU 35 353 351 0.6 3329 3030 9.9 RAIPUR 36 278 401 -30.7 3904 4609 -15.3 AGARTALA 37 234 213 9.9 1580 1499 5.4 VADODARA 38 322 316 1.9 3022 2481 21.8 RANCHI 39 6 4 50.0 39 18 116.7 UDAIPUR 40 89 73 21.9 892 695 28.3 BHOPAL 41 96 124 -22.6 958 986 -2.8 LEH 42 6 5 20.0 75 28 167.9 DEHRADUN 43 12 14 -14.3 116 98 18.4 RAJKOT 44 36 23 56.5 269 212 26.9 DIBRUGARH 45 0 1 -100.0 10 9 11.1 JODHPUR 46 0 0 0 0 TIRUPATI

Source: AIRPORTS AUTHORITY OF INDIA

AIRPORT

Continued on page 44

42 42

February Febr Fe bru uaryy 2 uary ua 2016 016 01 6 I Ca C Cargo arg rgo rg o L Logistics ogiisti og ist cs cs

MHWH[

:H 'HOLYHU (IILFLHQWO\ (FRQRPLFDOO\ 4\RXU /RJLVWLFV DQG 6KLSSLQJ 3DUWQHU LQ &LW\ RI -R\ 4<RXU RQH ZLQGRZ JDWHZD\ IRU DOO \RXU ORJLVWLFV VKLSSLQJ VROXWLRQV 4$OO $&$$, PHPEHUV FRQVLGHU -HWH[ DV \RXU SDUWQHU LQ WKH (DVW

285 6(59,&(6 )$LU &DUJR )6HD )UHLJKW )/&/ &RQVROH ),PSRUW &RQVROH )*URXSDJH )([SRUW &RQVROLGDWLRQ )'$) )''3 )''8 )&2' )7XUQNH\ 3URMHFWV 5HJLVWHUHG 2IÀFH $ 3 % &DQDO 6RXWK 5RDG 0HWURSROLWDQ .RONDWD ,QGLD +HDG 2IÀFH %KDUDWL\D (QFODYH 9 , 3 5RDG .DLNKDOL .RONDWD ,QGLD // _ )D[ :HEVLWH ZZZ MHWH[ RFHDQDLU FRP _ &,1 8 :% 37&

STATS

DOMESTIC FREIGHT Continued o page 42

47 VIJAYAWADA 48 SILCHAR 49 LENGPUI(AI WAL) 50 JUHU 51 RAJAHMUNDRY 52 BHUJ 53 SURAT 54 JABALPUR 55 BELGAUM 56 TUTICORIN 57 JAMNAGAR 58 BHAVNAGAR 59 KHAJURAHO 60 GUGGAL(KANGRA) 61 ALLAHABAD 62 DIMAPUR 63 JORHAT 64 HUBLI 65 AGATTI 66 DIU 67 GORKHPUR 68 PORBANDAR 69 AGRA 70 BHUNTAR 71 BARAPANI (SHILLONG) 72 GWALIOR 73 MYSORE 74 LAKHIMPUR (LILABARI) 75 PANTNAGAR 76 SHOLAPUR 77 KANPUR(C ) (D) 45 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A B C D E)

0 36 23 35 0 2 0 0 0 5 7 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2301 0 87301

0 41 24 34 1 2 0 0 0 10 21 1 0 0 0 22 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2286 0 83636

-12.2 -4.2 2.9 -100.0 0.0 -50.0 -66.7 -100.0 0.0 -100.0 0.7 4.4

0 354 222 286 4 17 0 0 0 43 64 1 0 0 0 171 7 0 2 0 0 0 0 0 0 0 0 0 0 0 0 21747 0 786128

0 314 206 292 1 15 0 0 0 36 124 1 0 0 0 141 12 0 2 0 0 0 0 0 0 0 0 0 0 0 0 20910 0 746851

12.7 7.8 -2.1 300.0 13.3 19.4 -48.4 0.0 21.3 -41.7 0.0 4.0 5.3

ANNE URE IVC REGIONWISE SHARE IN AIR TRAFFIC DECEMBER 2015 AND APRIL DECEMBER 2015 16 INTERNATIONAL REGIONS

DECEMBER

DOMESTIC

APRIL DECEMBER 2014 15

TOTAL

DECEMBER APRIL DECEMBER 2014 2014 15 2015 2015 16 AIRCRAFT MOVEMENTS (SHARE IN PER CENTAGE)

2015

2014

2015 16

EASTERN

5.78

5.58

5.72

5.15

10.17

11.37

10.45

WESTERN

25.61

26.28

25.11

25.46

30.07

29.63

29.33

SOUTHERN

39.76

41.15

41.89

41.53

29.16

30.95

NORTHERN

28.74

26.87

27.14

27.70

26.72

24.00

NORTH EAST

0.11

0.12

0.14

0.15

3.88

4.06

100.00

100.00

100.00

100.00

100.00

100.00

TOTAL

DECEMBER

APRIL DECEMBER

2015

2014

2015 16

11.18

9.23

10.07

9.46

2014 15 9.89

28.76

29.11

28.87

28.44

28.05

29.51

30.09

31.43

33.25

32.10

32.54

26.73

25.95

27.15

24.65

26.81

26.33

3.99

4.01

3.07

3.17

3.18

3.19

100.00

100.00

100.00

100.00

100.00

100.00

PASSENGERS (SHARE IN PER CENTAGE) EASTERN

4.21

4.25

4.31

4.01

10.98

11.19

10.48

10.89

9.28

9.29

8.96

9.05

WESTERN

27.26

27.35

25.72

26.22

31.16

31.20

30.28

30.01

30.18

30.15

29.16

29.00

SOUTHERN

39.89

39.77

41.88

40.70

26.05

28.16

27.30

27.59

29.52

31.33

30.88

31.09

NORTHERN

28.60

28.59

28.03

29.01

28.73

26.36

28.78

28.29

28.69

26.97

28.59

28.48

NORTH EAST

0.04

0.04

0.06

0.06

3.09

3.10

3.16

3.22

2.33

2.26

2.40

2.38

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

TOTAL

FREIGHT (SHARE IN PER CENTAGE) EASTERN

2.98

2.99

3.05

3.15

11.01

10.87

11.29

11.61

6.14

6.28

6.25

6.46

WESTERN

31.07

32.30

31.35

32.49

29.30

30.12

29.37

30.35

30.71

33.01

30.58

31.65

SOUTHERN

34.80

32.27

35.62

36.51

25.73

27.12

26.28

26.40

31.64

31.80

31.99

32.56

NORTHERN

29.44

24.91

29.98

27.85

31.90

29.58

30.51

29.46

30.71

27.99

30.19

28.48

NORTH EAST TOTAL

0.00

0.00 100.00

0.00

0.00 100.00

2.06

2.31 100.00

2.55

2.18 100.00

0.80

0.92 100.00

0.99

0.85 100.00

44

100.00

100.00

February 2016 I Cargo Logistics

100.00

100.00

100.00

100.00

We Deliver On Time...Anywhere

Corporate Office: 187-A, 2nd Floor, Sai Sadan, Sant Nagar, East of Kailash, Delhi-110065 Phone No.: 011-26214454, 26431222, 26211730 Email: brijesh@speedmanlogistics.com, pradeep@speedmanlogistics.com speedex_services@hotmail.com Website: www.speedmanlogistics.com Warehouse: 419-420, Lane No 1, Western Green, Rangpuri, Delhi-110037 Phone No.: 011-40502052

About Us SPEEDMAN LOGISTICS

.I .O

I .W SRUW DQG SURIHVVLRQDO VWDII PHPEHUV ZLWK IXOO ÀHHW RI YDULRXV YHKLFOHV

Our Mission To establish lifelong associations, retain clients and increase the number of customers trading every week. Improve the percentage of deliveries made on time. Decrease the number of outstanding invoice queries at the end of each week. Increase the frequency of contacts with existing and prospective customers. High-integrity workplace atmosphere. Empowerment of employees.

Our Services Air Freight I Train Freight I Road Freight I Warehousing I Door to Door Logistics I Packaging Service I Supply Chain Management

www.speedmanlogistics.com

-

WOMEN IN CARGO

‘Training, exposure and growth keeps me inspired in the air cargo sector’ Shobana Devarajulu, Cargo Services Manager, Cathay Pacific, forayed into cargo by accident. That chance meeting has developed into a passion and today, after nearly a dozen-odd years in the industry, the good lady has decided that air cargo is where she would like to stay. Excerpts from a conversation with C&L‌ How did you become part of the air cargo industry? What motivated you to join the business?

complex business that air cargo is today. Will the freight industry be able to keep up?

Honestly by accident I joined the airline to do aircraft weight and balance for cargo freighters and was asked to do cargo acceptance. I saw the potential and also the vast scope and decided to continue in the industry. Since then, I have had the best of training, exposure and growth in the industry which keeps me inspired to continue in this sector.

Yes. Certainly. As new standards and regulations come in, new WHFKQRORJ\ PRUH WHFKQLFDOO\ TXDOLÂżHG VWDII PRUH WUDLQLQJ DUH all coming in to handle the new regulations.

How long have you been working in the air cargo industry? Are you specialised to handle goods like perishables or dangerous goods? I have been years in the cargo industry and I am specialised to handle aircraft, dangerous goods, heavy odd si e, perishables and all types of special cargo.

What are some of the challenges you’ve faced working in this industry? Working in shifts as a woman at warehouses. There are other challenges too, like handling aircraft in extreme weather conditions and of course, the constrained infrastructure.

What do you like most about working in this industry? The fact that it is dynamic and ever-evolving. The follow-up chain is longer unlike the passenger side. It’s a small industry compared to the passenger side and there is more warmth and relationship amongst people.

How has the air freight industry changed since you joined? We are in e-mode today and it is a long way from entering details in register. There are better revenue management systems, automatic retrieval systems, ET against manual loading at feet height by personnel.

What are some of the developments we can expect in the near future? We see more training in addition to technical knowledge being shared and given today in the cargo industry. So, we can expect higher innovation and accelerated growth and development in the future.

More and more regulations and standards are coming in the

46

February 2016 I Cargo Logistics

What advice would you give women looking to build a career in air cargo? My words to them would be simple. This industry is extremely dynamic and all it requires is focused hard work. That will surely bring in success. Above all, that myth of this industry being a man’s one no longer exists.

Highest Standards of Excellence ensured at each level of operation

d(/(%Ăş '(/+, &$5*2 7(50,1$/ 0$1$*(0(17 ,1',$ 397 /7'

Room No: CE-05, First Floor, Import II Building, Cargo Terminal, IGI Airport, New Delhi - 110037 INDIA Tel:(+91 11) 25601310 Fax:(+91 11) 25601320, E-mail: sales.delhi@celebiaviation.in, Website: www.celebiaviation.com

o

L

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.