C & L

DOMESTIC AIR CARGO AGENTS DEMAND REMOVAL OF BOTTLENECKS THAT IMPEDE GROWTH Volume IV n No 7

C A R G O

SEPTEMBER 2015 I `60

L O G I S T I C S

CANAL WARS The expansion of the two canals - Suez and Panama that open shipping routes between continents and are part of a business worth billions - could rewrite the rules of trade.

Silk Route Logistics Pvt. Ltd. Your Satisfaction Is Our Success

Corporate Office: A-112/5 GF, Road No. 3, NH-8, Mahipalpur Extn., New Delhi-110037, INDIA. Tel: +91-11-46017353 (D), 26781730, 26783390 (Telefax) Mobile: +91-9999025725 e-mail:ramnik@silkroutelogistics.com Website: www.silkroutelogistics.com

Organisation

A professional team of experienced and trained staff, supported by fully computerized documentation processes and latest communications equipment, we offer tailor made services to suit every customer’s shipping needs in Air, Ocean, Land transportation services, Customs clearing, Logistics, Warehousing, Distribution, etc. Our guiding philosophy of “Customer and Solution oriented thinking” is achieved through strict adherence to work ethics.

Services Speed and Reliability are the keys to international trade. As the sheer diversity of consignments show, it is a highly complex field. We provide cutting edge supply chain solutions to our Domestic and International Clients.

Mission Statement

To provide prompt, efficient and reliable services in the field of Freight Forwarding and total Logistics Solutions.

www.silkroutelogistics.com Chennai Office: Room No. C-2A, Asirvatham Business Center, 9th Floor, West Wing, Fountain Plaza No.345 Pantheon Road, Egmore, Chennai 600008 INDIA, Tel. : + 91 44 42642133, E mail: rs@silkroutelogistics.com

MANAGING EDITOR’s NOTE

…and the winner is world trade

L

ast month, the world of shipping, trade and commerce found a reason to rejoice: It was the inauguration by Egyptian President Abdel-Fattah Al-Sisi of the expanded Suez canal. Launched exactly a year earlier, the project was pushed through in double-quick time by the Egyptian Army. According to Bloomberg, 25,000 workers from 400 private companies took out 260 million tons of sand, built a new 35-kilometer channel, and widened and deepened 37 kilometers of the original canal. The expansion will ensure the reduction in transit time from 18 hours to 11. Indeed a remarkable achievement and one that will help commodities to reach their destinations faster.

There are a number of stories in the media on why President Sisi was so adamant that the $8 billion project – considered unnecessary for the time being — be completed in a year.

These stories point out that the expansion of the Suez Canal had a lot to do with politics, rather than economic necessity.

Apparently, President Sisi wants to secure himself politically in these uncertain times – what with an ISIS-sponsored insurgency raising its head in Sinai among other security incidents throughout the country. “Al-Sisi is trying to gain legitimacy through his government’s achievements,” Amr Adly, a scholar with the Carnegie Middle East Center in Beirut, was quoted by Bloomberg. “(The new canal) shows the government can deliver, it can commit to something and get it done,” said Adly.

Politics apart, the project was aimed to keep pace with the expansion of the Panama Canal. The Suez Canal Authority has claimed that around eight per cent of the world’s cargo currently passes through the canal. Now with the expansion, Egypt obviously expects more. And it is then that the global trade war will start.

The two canals, Suez and Panama, play major roles in business worth billions and once the Panama Canal expansion is completed — scheduled for completion in 2016, it could take a while longer, thanks to the continuous spate of strikes by labourers — it will rewrite the rules of trade. Figures show that

today $270 billion dollars worth of goods pass through the canal connecting the Atlantic and the Pacific Oceans every year reaching 1,700 ports in 160 countries through 144 routes. That record will have to be changed once the new canal that will be able to accommodate Post-Panama ships with three times the capacity of existing vessels start plying the Asia-US East Coast route. Analyst agency Alphaliner believes it will get its chance to get back market shares it lost to Suez since 2008. Vessel sizes on the Asia-US East Coast, through the Suez, have increased around 73 per cent since 2005 against ships on the same route via Panama saw only a small 12 per cent rise due to the limitations imposed by the locks.

Meanwhile, the Suez authorities are making the most of the Panama delay. It has already taken away quite a bit of business from Panama. A statement from Drewry mentioned: “It has already persuaded several ocean carriers operating on the arterial route between Asia and the East Coast of North America (ECNA) to change allegiance this year, and now has more time to persuade others to follow suit.” The vessel capacity operating from Asia to ECNA through the Suez Canal went up from around a third between October 2010 and October 2012 up to 42 per cent in October 2013, with the Panama Canal’s share conversely falling from two third’s to 58 per cent. This was because the average size of vessels passing through Suez went up from 6,911 teu to 7,756 teu over the past year while those using the Panama Canal remained at less than 5,000 teu capacity.

The next year will be interesting since the challenge to control the seas and get a larger share of the global economy will depend on the trade routes. So, even as Suez and Panama battle it out, the winner will be world trade.

tghosh@newsline.in

Cargo & Logistics I September 2015

3

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

CONTENTS

C&L

VOLUME IV n NO 7

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH

H C TIWARI

Consulting Editor RAMESH KUMAR

COVER STORY

p12

If it were not for the Suez and Panama Canals, the most important channels of trade, the world’s economy would have floundered. Now that both the canals are going through a phase of transformation, it remains to be seen how each will tackle the challenges. Will the world witness a war where each canal will try its utmost to woo ships?

FOCUS

p20

Setting up a solid infrastructure can be time consuming and expensive for airlines so most prefer to opt for GSSAs that are responsible for selling their cargo space. C & L spoke to Bertrand Schmoll, CEO of Paris-based ECS Group about the business in India.

SPOTLIGHT

p24

Concerns have grown in the wake of the killing of Cecil, the lion from Zimbabwe.

After the hue and cry and the campaign against hunting across the globe, a number of carriers have banned the transport of hunting trophies as their cargo. However, there are still some that carry on…

28

COLUMN

Senior Sub-Editor-cum-Reporter PUNIT MISHRA Sr. Proof Reader RAJESH VAID Correspondents CHARCHIT SINGH, ANJANA TANWAR, NAVEED ANJUM Designers NAGENDER DUBEY, MOHIT KANSAL Picture Editor PRADEEP CHANDRA Photo Editor HC TIWARI Staff Photographer HEMANT RAWAT Director (Admin & Corporate Affairs) RAJIV SINGH

Imagine the chaos on shopfloors if supply chains collapse! Most manufacturers do have back-ups for emergencies but it is time one is aware of collapses that could occur because of natural calamities — earthquakes, floods, etc — or even man-made ones like riots or strikes.

30

NEWS IN BRIEF

The partnership between Oman Air and Cargolux has introduced a second frequency to Chennai to expand its air freight services from Oman to India. In the land section, International Finance Corp (IFC) is planning to invest around $700m in logistics infrastructure projects in India.

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 Shivam Printographics (P) Ltd, 163, DSIDC Shed, Okhla Indl Area Ph-1, New Delhi -110020

Cover Photo: A view of locks and ships at Panama Canal Photo credit: HOLLAND AMERICA Cover Design: Nagender Dubey

4

September 2015 I Cargo & Logistics

JUST IN TIME

First half of 2015 disappoints

T

he International Air Transport Association (IATA) released data for global air freight markets showing a slowdown in growth for air cargo demand in June. Air freight volumes measured in Freight Tonne Kilometers (FTK) rose just 1.2 per cent compared to a year ago. This was consistent with falling trade activity and weaker than expected global growth.

According to IATA, regional performance varied widely. Asia-Pacific, North American and Latin American carriers reported year-on-year declines (-0.3 per cent, -3.3 per cent, and -1.6 per cent, respectively) while European carriers reported that markets were flat. This was offset by the strong performance of Middle Eastern (+15.3 per cent) and African (+6.7 per cent) carriers to keep growth in positive territory.

The general trend of a weaker 2015 compared to 2014 can be seen in the halfyear data. Air freight markets expanded by 5.8 per cent in 2014. However, growth for 2015 till date stands at 3.5 per cent.

6

September 2015 I Cargo & Logistics

“The half-year report for air cargo is not encouraging. With growth of just 1.2 per cent over June last year, markets are basically stagnating. Some carriers are doing better than others at picking up the business that is out there. But overall it has been a disappointing first half of 2015, especially considering the strong finish to 2014. The remainder of the year holds mixed signals.

The general expectation is for an acceleration of economic growth, but business confidence and export orders look weak. Air cargo and the global economy will all benefit if governments can successfully focus on stabilising growth and stimulating trade by removing barriers,” said Tony Tyler, IATA’s Director General and CEO. WorldACD also released its market data which shows that worldwide revenue (in USD) was down by 9.3 per cent in the first half of 2015 as compared to 2014. Worldwide air cargo developments in June did not differ much from those in May. Year-overyear (YoY) volume growth was slightly

higher this time (+2.6 per cent vs. 1.8 per cent), overall yield (in USD) fell again by 2 per cent month-over-month (MoM), yield excluding charges stood its ground, and Africa (+5 per cent) and the Middle East and South Asia (MESA: +6.4 per cent) were again among the best performing origins volume-wise.

“What changed markedly was the performance of the origin Europe, with YoY volume growth of 5.9 per cent (-1.2 per cent in May). The origin Asia Pacific recorded a YoY volume growth of only 0.4 per cent (+1.7 per cent in May). Incoming air cargo increased most in the regions MESA (+9.8 per cent YoY) and North America (+6.9 per cent YoY),” said WorldACD. WorldACD said: “Of the top-50 traffic streams outside the transpacific market, only three recorded a positive revenue development: Nairobi-Amsterdam, Chicago – London and Mumbai-London. Of the absolute volume growth worldwide, 37.5 per cent came from pharmaceuticals and perishable only.”

JUST IN TIME

TREND The slowdown in air cargo being witnessed now has not affected perishables and pharmaceuticals. Both the segments are highly prized because of the time-sensitive nature of their delivery. In fact, the performance by both has been so good that carriers are drawing up plans to boost pharma and perishables to bolster revenue.

Take American Airlines, for example. It opened a $5 million, 25,000-sq ft temperature-controlled facility at Philadelphia International Airport in June this year and is the first of its kind for a commercial air cargo company. Tailor-made for the specific requirements of pharmaceutical shippers, the facility is located near pharmaceutical manufacturers along the US East Coast, that are looking at markets in South America and other parts of the world.

The facility can maintain temperatures for medicines and medical devices of 2 to 8 degrees Celsius and boasts of a 6,000-square-foot Control Room Temperature to keep passive shipments at plus-15 degrees C and plus-25 degrees C; a deep frozen area (FRO) for shipments between minus-10 degrees C and minus-20 degrees C; and advanced technology for 24/7 monitoring of products, including proactive alarming, validated to 0.25 degrees C. Along with American Airlines, EVA Cargo, UPS and a host of others have reinforced their facilities and introduced special features for pharma and perishables. EVA Cargo has launched its Pharmacare service in collaboration with Envirotainer to provide active temperature-controlled containers for air cargo on a rent-it-when-youneed-it basis. UPS too has enhanced its services to accommodate perishable and pharmaceutical shipments with the recent opening of a facility dedicated to healthcare and life sciences at Schiphol Airport in Amsterdam.

8

September 2015 I Cargo & Logistics

PSUs comes to power T

he Union Cabinet has given its approval to government Public Sector Undertakings (PSUs) to take quick decisions for transportation of cargo on ocean. The shipping ministry had earlier proposed to decentralise existing charter arrangements to provide flexibility to state government departments and PSUs to make their own shipping arrangements for ocean transportation of cargo. The move is aimed at helping PSUs take quick decisions to efficiently manage their cargo supply and logistics chain operations and add to their competitiveness.

This will not only provide flexibility to government departments and PSUs to find solutions for cargo operations in dynamic global shipping market but also promote Indian tonnage.

As a step towards further simplification in respect of general liner cargoes, government departments/PSUs can now finalise import contract both for Free on Board (FOB) or Cost and Freight (C&F) basis, subject to right of first refusal being given to Indian ships, in case of FOB import with the need of prior permission from the Ministry of Shipping.

e-AWB growth not sufficient G

lobal electronic-air waybill (e-AWB) penetration is growing, but not fast enough, says IATA. Latest figures for June 2015 show that the number of e-AWBs submitted globally rose to 28.8 per cent, up by just 0.8 per cent from the previous month. IATA said that although the positive growth trend continues, the rate of growth is not sufficient to meet the industry target of 45 per cent by the end of 2015. “One of the strategies identified is to focus efforts on accelerating implementation at the top 50 priority e-Airports where e-AWB is already enabled.

More collaborative and focused efforts at these e-Airports will help. Offering Single Process is another winning strategy. Experience shows that it can triple the rate of e-AWB adoption, so we encourage all airlines to roll out Single Process across more locations in their network,� IATA said.

According to IATA one of the recent examples of stellar e-AWB growth has been in Asia with SriLankan Airlines growing almost 44 per cent Year-over-Year (June 2014 to date) and 17 per cent already in 2015.

In the Spotlight this month Country/Location

% e-AWB Penetration

% Growth month over month

Hong Kong SAR

60.1%

2.3%

United States of America

28.5%

1.1%

Korea

41.4%

2.6%

Airlines KLM

34.1%

2.4%

Lufthansa Cargo

22.9%

2.3%

IAG - British Airways

41.5%

2.3%

Freight Forwarders DGF - DHL Global Forwarding

40.2%

1.3%

Panalpina

46.2%

1.3%

Agility

33.1%

3.0%

T MEN P I R SH U O K Y NLINEtics.co.in O O logis BO W

NO

.om

w ww

HOURS

Head Office: Om Logistics Ltd. 130, Ring Road, Transport Centre, (Near Punjabi Bagh Flyover), New Delhi - 110035

For Any Enquiries Call: +91-9999811611 +91-8588900505 011-45970362

Email: info.ecom@omlogistics.co.in Website: www.omlogistics.co.in

NUMBERS

8

PER CENT CARGO UP `45.59 CR PROFIT FOR DHAMRA PORT FOR BLUE DART D B hamra Port Company Limited (DPCL), a deep draught port off the coast of north Odisha and controlled

by Adani Group, has registered eight per cent growth in cargo in 2014-15.

The total cargo handled by the port inclusive of import and export traffic, stood at 15.45 Million Tonnes (mt) by the end of 2014-15 compared to 14.31 mt logged in the year ago fiscal. In 2014-15, Dhamra port, handled 14.05 mt of import cargo and 1.40 mt of export cargo.

The port’s export cargo shrank 65 per cent in FY15 compared to 4.08 mt registered in 2013-14 as curbs on iron ore exports prevailed.

During April-June of the current fiscal, the port has handled total cargo of 3.22 mt which included 2.88 mt import cargo and the balance 0.34 mt being export traffic.

DPCL had lined up `10,000 crore expansion plans to ramp up its cargo handling capacity fourfold to 100 Million Tonne Per Annum (mtpa) up from 25 mtpa presently.

lue Dart Express Limited recently declared its financial results for the quarter ended June 30, 2015. The company posted `45.59 crore profit after tax for the quarter ended June 30, 2015. Net Sales/Income from operations for the quarter ended June 30, 2015 stood at `619.60 crore.

Anil Khanna, Managing Director, Blue Dart Express Limited said, “The macroeconomic environment continues to be sluggish, which has further stifled the growth of our industry. Despite this,

we have worked on constant innovation by strengthening our product portfolio to serve our customers with solutions that match up to meet their dynamic and evolving business needs.

We are committed to serve Blue Dart country and sustain our leadership position in the air and ground express segments through the widest range of innovative products and services, dedicated air and ground infrastructure, superior technology and passionate people force”.

nd 2THROUGHPUT HIGHEST CONTAINER FOR JNPT

J

`1,000 CR FOR INDO-BANGLA RAIL LINK

T

o improve bilateral ties and increase trade between India and Bangladesh, the Union Government has sanctioned `1,000 crore for laying a 15-km long railway track to connect Bangladesh through the north-east. Tripura state transport Secretary Samarjit Bhowmik said “We were informed by the Centre that it has sanctioned `580 crore for acquiring land and laying of five-km long tracks on the Indian side.”

The External Affairs Ministry had earlier sanctioned `400 crore to Bangladesh for

10

September 2015 I Cargo & Logistics

acquiring land and laying of about ten km long track on the Bangladesh side, he said.

The project would be completed by 2017, Bhowmick said, adding, an elevated corridor would be constructed for covering 3.7 km length of the route.

“IRCON would construct the entire route and other works as it has experience of working in Bangladesh. The 15.06 km long track would connect Agartala with Akhaura railway junction in Bangladesh,” Bhowmik added.

awaharlal Nehru Port handled 3,98,974 Twenty Foot Equivalent Unit (TEU) in July 2015, 10.6 per cent higher than the June 2015 figure of 3,60,624 TEU. This July throughput was the second highest monthly figure in the history of the Port, only after the 3,99,419 TEU handled in March 2014, according to a release.

JNPCT, the Port Trust-owned container terminal, registered a growth of 13 per cent in volume in July compared to the previous month. JN Port registered the highest inter-terminal transfer (ITT) of tractor trailers, 15,421 trucks, resulting in 19,249 transactions in July, the highest till date since the start of this initiative on February 24, 2015.

NUMBERS

I

8

NHS TO BE UPGRADED

ndia’s road infrastructure will soon be strengthened. Union Government is planning to convert eight National Highways (NH) into world-class express highways. This includes Delhi-Jaipur, Delhi-Chandigarh and Delhi- Agra sections.

The stretches approved for upgradation into expressways include 249 km Delhi-Chandigarh section of NH-1 and NH22; 334 km of Bengaluru-Chennai section of NH-4; 261 km of Delhi- Jaipur section of NH-8, and 277 km Kolkata-Dhanbad stretch of NH-2, Pon Radhakrishnan, Minister of state for Road Transport and

Highways said in a reply to Lok Sabha.

The National Highways to be upgraded also include 66 km Delhi-Meerut section of NH-58; 200 km of Delhi-Agra section of NH-2 and 135 km length of Eastern Peripheral Expressway, Minister added.

The Minister said, “Government of India had earlier approved a plan for constructing 1,000 km of expressways under National Highways Development Project

(NHDP) PHASE - VI at a cost of `16,680 crore on DBFOT (design, build, finance, operate and transfer basis.”

Earlier, Nitin Gadkari, Minister for Road Transport and Highways said that work on 10 expressway projects will start soon and once completed they will reduce travel time.

$485 BN TRADE THROUGH SILK ROAD

T

rade volume for China through the Silk Road has touched $485.4 billion in the first half of this year. This has accounted for 25.8 per cent of the country’s total volume of foreign trade. In the first half of 2015, China’s export value to the countries along the Silk Road was $295.8 billion, accounting for 27.6 per cent of its total export. Whereas, the import value from those countries was $189.6 billion, accounting for 23.4 per cent of its total import.

The Chinese enterprises made a total of $7.1 billion direct investments in 48 countries along the Silk Road in the first half of 2015, a year-on-year growth of 22 per cent.

Chinese enterprises has also taken 1,401 contracted projects in Silk Road countries and in the first half of this year.

5 SMALL AIRPORTS COMING SOON F ocusing on increasing regional connectivity, the Union Government is constructing five small airports at an estimated cost of `740 crore. Mahesh Sharma, Minister of State for Civil Aviation, said the government had decided to develop small airports at Tier-II and Tier-III cities to promote regional and remote area air connectivity. The five locations that have been identified are: Hubli and Belgaum (Karnataka), Kishangarh (Rajasthan), Jharsuguda (Odisha) and Tezu (Arunachal Pradesh).

“The estimated project cost for Hubli is

`141.44 crore, Belgaum is `141.87 crore, Kishangarh is `160.05 crore, Jharsuguda is `200 crore and Tezu is `96.5 crore,” Sharma said in a written reply to the Lok Sabha.

Construction work had already started at these locations. The Minister also added that the timelines for completion of the airport projects depended on many factors like availability of requisite land, mandatory regulatory clearances, environmental clearances, traffic projections and provision of support services by the state government such as access road to the airport, water and power supplies.

Cargo & Logistics I September 2015

11

COVER STORY

A Tale of Two Canals

EXPONAV.ORG

Two major canal expansion plans – one completed in August 2015 and the other slated to be finished by April 2016 – pose a great impact on cargo movement down historic waterways around the world. However, the plans are not without a few major troubling issues: from the size of the ships that limits movement across the two canals or workers’ demands in increasing pay packets. A look at the state of affairs of the historical Suez and Panama canals. Sarada Vishnubhatla reports

12

September 2015 I Cargo & Logistics

COVER STORY

T

AMBITIOUS EXPANSION: (Left) A ship passing through the expanded Suez canal; (top right) A view of work going on expansion plan of Panama canal

PANAMA CANAL

he oldest man-made waterway in the world, the Suez Canal, opened in 1869. In fact, it has always been held in high regard right from the time of the Pharaohs. Not only has the canal always connected the Mediterranean and the Red Sea, it has brought in the much need moolah into Egypt’s coffers since ancient times. In 2014, for instance, 48 international cargo liners earned the canal authorities more than US$ 5 billion. The new 45 mile or 72 km section — expanded and inaugurated in August 2015 — increases the canal’s capacity to gradually float close to 100

set of locks that enables it to accommodate vessels by the year 2023. The expanded large vessels moving to North America. section is part of one phase of the Suez Today, after delays and obstacles in its Canal Corridor Area Project which was work flow, the project has reached nearly created to turn Egypt into an internation90 per cent completion. al trading and logistics hub. It took just a Expanding Needs year and a total of over US$ 8 billion of inBoth Suez and Panama Canals were not vestment in the project. By the year 2023, unable to accommodate the growing size the government of Egypt forecasts annual of ships that needed to pass through them. revenues of US$ 13 billion. The truth of it, If in 1984 a million tons of cargo according to analysts, is yet to be floated the Suez Canal daily, proven.

The Suez roughly 20 years later in Nearly 45 years afCanal can move 2014, 2.6 million tons ter the Suez Canal was huge containerships of cargo was ferried. opened, the Panama with beams meaThe reason being the Canal came into besuring upto 164 feet number of the ships ing in the year 1914. but the lock system crisscrossing the caThe first major exin Panama made it nal daily dropped pansion plans for this unworthy of moving from 21000 to 17000 canal officially began these ships because the size of the in September 2007 but vessels became enormous. the actual work started These higher capacity vessels only two years later in Auare equipped to carry more than gust 2009. Since then, the Panama four times the cargo the older ships could Canal has been undergoing major renovaever hold. tions to deepen its draft and it is hoped that In a struggle to accommodate the meby April 2016 it shall be opened to hangaships with deeper drafts that can reach dle the floating cargo vessels. This is the more than 50 feet, the Suez and the Panafirst major expansion of this canal since ma Canals have fought hard for expansion. its birth. After the widening and deepenThe Suez Canal can move huge containering of the canal, supertankers, containers ships with beams measuring upto 164 feet and passenger ships shall be able to pass but only in one way at a time. The famous through this canal while earlier they could lock system in the Panama Canal made it not. Absorbing roughly US$ 5.25 billion of unworthy of moving these giant ships. The investment, the canal now boasts of a new

Cargo & Logistics I September 2015

13

PANAMA CANAL

COVER STORY

A view of big steel gates of Panama Canal

Suez Canal: To be or not to be!

Pros: 1. More than 1 million work opportunities shall be created in the next 15 years due to the Suez Canal Corridor Area Project 2. The project shall help develop industries such as iron, cement, and food 3. The hub will be established as a special economic zone minus the bureaucratic and legal hurdles 4. US$ 8.5 billion was raised for the canal expansion project 5. Projected revenue by the year 2023 – US$ 13.2 billion 6. 72 kms of new channel and bypasses have been built 7. 97 ships per day will traverse the canal by the year 2023 8. 11-hour southbound transit as against 18 hours prior to expansion 9. One year completion on the demand of the President of Egypt instead of three according to the original plan 10. Historically, the Suez Canal transformed the economics and dynamics of making things, marketing and buying them. Moving goods and cargo between Asia and Europe was never ever faster and cheaper as the waterways of the Suez Canal offered.

Cons: 1. The expansion plan of the Suez Canal disregarded the container industry, which otherwise would have generated more revenue as a 20-foot container can cost as much as US$2,500.

2. Supply fuel stations for the equipment that transport containers and a repair station for containers are missing in the plan.

14

September 2015 I Cargo & Logistics

need for expansion hence became imperative for the two canals to remain relevant in today’s world of transportation and new technology.

The Suez has had a parallel new canal built upto a distance of 22 miles of the existing one and the current bypasses have been expanded too. The resulting 45 mile lane will reduce a vessel’s journey by around 12 hours. The total excavation cost for the new section of the canal is estimated at EGP 19.5 billion broken down into EGP 4 billion for dry excavation, EGP 500 million for revetment and the remaining EGP 15 billion for dredging. Originally, the expansion plan was spread over three years to finish but with the demand from Egypt’s President Abdel Fattah al-Sisi, the project was ready to be implemented in a mere one year. As a result the cost of the entire project shot up by double.

Suez’s western hemisphere counterpart, the Panama Canal is slated to finish

by April 2016 for ship movement. The original purpose of its expansion embraces the need to increase its capacity for its current scope was having more ships queuing up than ever before. One reason cited is that the cargo market share shift that is being

COVER STORY

witnessed from the US West Coast to the US East Coast and hence the Panama Canal expansion may help increase the shift.

The expansion plan included widening the waterway on the Pacific entrance to a minimum of 225 meters and deepening to 15.5 meters below mean low water springs. Till date, a total of 8.7 million cubic meters of sediment and silt dredging has been completed.

A major component of the expansion programme of the Panama Canal is the construction of the third set of locks which includes building two new lock complexes in the Pacific and the Atlantic sides of the canal. Out of the four phases of the project, namely, PAC1, PAC2, PAC3 and PAC4, the first three excavation phases have been completed. The total excavation is supposed to be of roughly 50 million cubic meters of material. This creates a third lane for bigger ships to float through. The new lane with one lock on each side — having three chambers each — offers service vessels a space of dimensions like 160

locks have filled up while the filling of the feet wide, 1200 feet long and 50 feet deep Pacific side locks is under progress and and a cargo volume of upto 170,000 DWT may take roughly three months to finish. and 12000 TEU. The total fixed cost for Positive Impact building the new locks is US$ 3.2 billion.

With the projected increase in the annuWhen ready, the new Panama Canal al revenues to be earned from the expanshall handle vessels of upto 13,000 TEUs sion of the canals, the impact carrying eight-storey high of conis bound to be positive in tainers stacked up on its lap. more ways than one.

In comparison, the current Once The Egyptian nalocks can handle vessels completed, the tional gross product with capacities upto new Panama Canal will receive a much 5000 TEUs while the shall handle vessels needed fillip from world’s largest containof upto 13,000 TEUs the incoming hard er vessels carry nearly carrying eight-storey cash besides creat20000 TEUs. With the high of containers ing new employment new locks, the canal stacked up on for its people. Accordshall allow another 2000 its lap ing to the builders of the transits annually.

Suez Canal Corridor Area In anticipation of the exProject, Shair & Partners, who pansion of the Panama Canal, carrihave built the entire project in Suez, Isers are starting new Asia to US East Coast mailia and Port Said, roughly one million services but at the risk of losing premium people shall find new employment in the freight rates, according to the UK-based next 15 years until the year 2030. It is also Drewry Shipping Consultants. In a more expected that the area around the canal, current development, the Atlantic side

COVER STORY

Panama Canal: Ground Realities Pros: 1. The centenarian - The Panama Canal - celebrated its 100th anniversary in 2014, and has witnessed more than a million ships float its waters 2. The expansion project of the Panama Canal is based on six years of research, including more than 100 studies on the economic feasibility, market demand, environmental impact and other technical engineering aspects.

3. The different components of the project are: a. New third set of locks b. Pacific Access Channel c. Improvement of dredging or navigational channels d. Improvement of water supply 4. According to a report from the World Maritime News, since January 2013, traffic between Asia and US East Coast has grown by 26 per cent whereas the same between Asia and US West Coast, volumes have been slow to grow (around 6 per cent). In comparison, the Asia – US Gulf Coast grew a little over 40 per cent mainly from a low base Cons: 1. Workers’ strikes and monetary disputes have time and again stopped the work and taken toll on the flow of the completion of the Panama Canal expansion 2. A new 175-mile long canal through Nicaragua has been announced by a Chinese national which would ferry large vessels. As and when it comes into being, both the Suez and the Panama will have a direct and tough competition on their home turfs 3. Melting of ice due to global warming in the natural channels, called Northern Passages, above Canada and Russia is freeing these waterways. As a result, a variety of possible cargo movements on the backs of today’s megaships on a route that will roughly be 300 miles North of the Panama Canal.

4. The limitations of both the Suez and the Panama Canals shall remain.

The new locks on the Panama Canal will not be able to handle vessels that can carry upto 20000 TEUs while the Suez shall mostly remain oneway.

called the Canal Zone, near the Sinai and the neighbouring governorates, new urban sites, publicly-funded infrastructure and large private investments shall come up.

Another fillip to the country’s economy coming from the canal expansion is development of heavy industries like iron and cement, besides food industries. In total, the investment in developing these facilities is expected to reach US$ 15 billion besides covering an area of 500 sq km, including six seaports.

The expansion is expected, according the Egyptian government, to attract close

16

September 2015 I Cargo & Logistics

to US$ 60 billion worth of foreign direct investment and that its economy shall reach an average growth rate of seven per cent in the next four years. The resultant investments and the earnings, together, will supposedly make up a third and a half of the country’s economy.

The new logistics and trading hub will be treated as a Special Economic Zone where the transit of the ships will be devoid of bureaucratic and legal hurdles.

The Suez Canal Special Economic Zone is poised to be a one-stop shop for investors which shall include concessions with

regards to sales and export tax exemptions besides having no restriction on the foreign ownership of the companies.

As for the Panama Canal, the opening up of this vital shipping lane to the large cargo cruisers balances the current supply and demand by offering more trade options, according to Drewry. Naturally, the carriers are making efforts to increase their customer base by starting new Panama-transiting services. As a result, six new services have been created, since the beginning of 2015, for the Asia-US East Coast trade, of which very few are routed via Suez. According to a new study

by The Boston Consulting Group (BCG) and C.H. Robinson, upto 10 per cent of container traffic to the US from East Asia could shift from West Coast ports to East Coast ports by 2020. Since the expansion programme of the Panama Canal started, more than 30000 work opportunities have been created.

Besides, each lock chamber is designed to re-use 60 per cent of the water during each transit. There are nine water-saving basins for each of the two lock complexes.

Reach of the Canals It is a known fact that the Suez Canal has become more important due to the Panama Canal’s Asia limitations. This is despite the longer time and marginally higher tolls via transiting the former. In a bid to keep the latter relevant and to keep the balance between the business that the two canals bring between them, the Panama Canal has no choice but to undergo expansion to accommodate larger vessels, and therefore generate more revenue.

Ships that carry upto 10, 000 TEUs coming out the Asia-Europe are slowly replacing the Panama vessels. Besides this, the additional expenses that the construction delays whether due to the workers strike or any other, the Panama Canal has overshot its deadline of finishing last year.

Hence, it has no choice but to hike up its tolls to compensate the final bill that could be anywhere over US$ 7 billion. So if the Suez accommodated the Panama Canal’s traffic, soon with expansion, the latter will push trade patterns to the extent that even the ports in the UK are bound to feel the call of this brand-new and fitted waterway.

FACE TO FACE

‘High value cargo business is here for long-haul’ Apollo International Limited recently forayed into the luxury logistics market in India in association with Ferrari Group and set up a JV company, AF Ferrari Secure Logitech. Raaja Kanwar, Vice Chairman and Managing Director, Apollo International Limited in a free-wheeling interview with C&L talked about the high value cargo business and its future in India What kinds of expensive cargo do you move other than gems and jewellery?

Other than diamonds, gems and jewellery, we move luxury products like watches, pens, art, accessories, phones, etc.

Ports and cargo terminals at airports are not known to have the best facilities for storage and handling this form of cargo. How would you rate the infrastructure available in India for such cargo and what improvements can be made?

Airports and shipping ports are only transit points and our aim is to keep the high value goods there for the least amount of time; and move it to our own secure facilities, be it bonded or non-bonded.

Could you give us a glimpse of the market size of high value cargo in India?

The Indian luxury market grew at a healthy rate of 30 per cent in 2013 to reach $8.5 billion in 2013. It is likely to continue growing at a healthy pace to reach $14 billion by 2016. The sector includes luxury products such as apparel, accessories, home decor, pens, watches, wines and spirits and jewellery; services such as fine dining, concierge services, travel, hotels and spas; as well as assets such as fine art, yachts, and automobiles.

The luxury market is expanding rapidly in India on the back of economic deregulation, fast GDP growth, and wealth (re)generation, increasing per capita consumption, and a growing young working population.

Wealthy Indians represent a source of enormous potential for global luxury brands. India would have more than double the number of High Networth Individuals (HNIs) to 403,000 by 2015 from 153,000 in 2010 and communication media have put luxury in the public eye.

What are the key challenges in moving high value cargo?

The key challenge in the high value cargo is security and on time delivery of products.

Sometimes, a delay in one day will have significant cost of demurrage and detention charges. This needs close operational coordination with airlines and other modes of transport. Secondly, to keep the product safe and secure and to eliminate various middlemen, we need to invest in secured systems, armed guards and insurances.

These are inherent risks which high value cargo carries and even a single incident can have severe impact on the brand name of logistics solution provider, if not mitigated adequately. AF Ferrari Secure Logitech Pvt. Ltd. is 100 per cent secure with the various insurances in place.

Could you take us through the measures you undertake to ensure safety of high value cargo more because it changes so many hands –– from freight forwarders to custom agents to carriers?

To ensure safety, we provide door-to-door

services which encompass all of the above services, so use of multiple agencies are done away with. We have warehouses with stateof-the-art security systems in place including biometric lockers. We have installed Grade 6 Vault which is the highest category Vault ever installed in India. We have dedicated secured vehicles, equipped with GPRS, armed guard and our own company personnel, for inland movement of luxury products.

Rail, road or sea – which is the most preferred mode of delivering high value cargo?

Generally high volume cargos are smaller in size and need to be delivered on a stipulated time period. Hence, most of the time it is moved by air. Within the city limits and neighbouring areas, goods are sent via surface.

How are the shipments tracked in transit?

The Ferrari Command Centre works in the following ways: Track and trace: The Command Centre is integrated with Ferrari’s carrier partners which monitors the goods in transit.

Door to Door tracking: In surface transport of high value goods, the Ferrari secures vehicles are integrated with the Command Centre which tracks the shipment via GPRS tracking.

Additionally, we also provide the facility of ‘hand-carry’ of valuable shipments between cities. We offer the above service for international business as well.

Explain the concept of 3PL in Luxury Logistics?

3PL concept is a mirror image with enhanced security, full insurance coverage but at a smaller scale with a larger number of stock – keeping units and of larger value. AF Ferrari’s services are more customised and personalised and have zero tolerance for error or delays.

Cargo & Logistics I September 2015

17

INFRA PUSH

Domestic air cargo is on a growth path and with more regional connectivity, the tonnages could go higher – only if infrastructure improves. A report

T

he domestic air cargo sector in India is keen to build on the growth that it is experiencing.

Even as new airlines — one regional carrier, Air Pegasus has started operations in the last few months and a few more like Hyderabad-based Turbo Megha Airways and Flyeasy from Bengaluru have got the necessary permissions — begin flying, India is finally receiving the connectivity it has been looking at for a long, long time.

That connectivity, according to the Domestic Air Cargo Agents Association of India (DACAAI), the apex national body of the domestic air cargo agents, will go a long way to boost cargo flow from the interiors of the country and vice-versa. In fact, air has become a preferred mode of transport for vaccines, medicines, fruits and vegetables, high value electronics, mobile phones, couriers and the e-commerce sector. Domestic air cargo has been growing at a faster than international cargo. DACAAI figures point out that domestic air cargo has been growing between 15 and 20 per cent year-on-year and during 2013-14, stood at 0.8 mn mt and is 50 per cent of international cargo. The figure is expected to reach 19.7 mn mt by 2022-23

BLUE DART

CARGO ON A HIGH: Blue Dart vehicles and plane standing at one of the domestic airports

18

September 2015 I Cargo & Logistics

Demand for better facilities and according to air cargo stakeholders, domestic cargo will surpass international cargo by the year 2030.

Today, with new airlines coming in, the country will see an increase in the number of aircraft from the 525-plus to 1000 by 2020. Along with that, the increase in flight frequencies to Tier-II and III cities will also result in sufficient airlift capacity for domestic cargo. The Ministry of Civil Aviation (MoCA), on its part, has been preparing to handle the growth in domestic cargo when the Airports Authority of India (AAI) announced the development of common-user domestic cargo and courier terminals in 24 air-

ports around the country.

The AAI has chalked out plans to boost the domestic cargo market by utilising passenger terminals at regional airports that see few passengers. In a written statement, the AAI pointed out that with the Indian economy opening up, “tremendous growth” had been seen in air cargo movement at airports in the country. Tonnages could go up if basic cargo facilities were created in Tier-II cities that could feed gateway airports. Hence the creation of common-user domestic cargo and courier terminals at 24 airports after “minor modifications”.

Among those airports where common user facilities were set up or were in the process of establishment are Amritsar, Lucknow and Varanasi in the north; Ahmedabad, Surat and Aurangabad in the west; Chennai, Coimbatore, Mangalore, Trichy, Trivandrum, Calicut, Madurai and Vishakhapatnam in the south; Kolkata, Bhubaneswar, Ranchi, Gaya and Raipur in the east and Guwahati in the north-east.

The high domestic air cargo tonnages notwithstanding, stakeholders have been raising issues that could retard the growth.

In a recent move, DACAAI members —

INFRA PUSH

MEET TO FACE CHALLENGES The Domestic Air Cargo Agents Association (DACAAI) will be holding its fifth convention on September 11, 2015 at New Delhi. Dr Mahesh Sharma, Minister of Civil Aviation (State) will be the chief guest at the convention.

The one-day meet, themed ‘Believe, Achieve and Sustain’, will be divided into different sessions that will be addressed by experts from the industry. While the major session will look at how to manage the increasing growth in the domestic air cargo sector, infrastructure problems, terminal handling charges and skilled manpower will be some of the key topics that will be discussed.

The issue of having an independent ombudsman to remove bottlenecks in the domestic cargo sector will also be raised. There will be a session on Goods and Sales Tax and how it will transform the whole industry. According to Amit Bajaj, DACAAI General Secretary, “We are looking at GST as

that investments by AAI and JV airports are utilised properly for trade facilitation”. Agarwal also mentioned that “the major hurdle is infrastructure and the cargo warehouses where we accept the cargo are not up to the mark”. He acknowledged that the Civil Aviation Ministry had taken initiatives “but those are not enough to handle such type of growth”.

Forwarders also mentioned the heavy burden of service tax — at 14 per cent — on domestic air cargo. General Secretary Amit Bajaj added that service tax was a major issue that needed to be addressed by the government. “Service tax charged on air cargo is 14 per cent while only 4.2 per cent is charged on other modes of transport. On international cargo it is 0 per cent. This heavy taxation inflates the cost of air freight and makes it uncompetitive as compared to train and road.” He also pointed out the high terminal handling charges: in fact, the charges varied from airport to airport. “There are charges by terminals on air freight. We are looking at the increasing charges that should go

H C TIWARI

President Suraj Agarwal; General Secretary Amit Bajaj; Secretary General Col R P Shukla and Arvind M Nayak, Presiding Officer met Dr Mahesh Sharma, the Minister of State for Civil Aviation, to apprise him about the growth of domestic cargo and the problems the sector was facing.

Speaking to C&L, Suraj Agarwal said: “There is a fantastic growth in air cargo. We don’t have proper infrastructure to handle this type of growth. The growth is much higher than the figures are showing but the growth is getting diverted to the other modes of transportation because we are not able to handle this growth properly.”

Highlighting the unplanned and ad hoc infrastructure available for air cargo stakeholders, it was pointed out that apart from the metro airports, airports operated

by AAI had provided some facilities but they were not properly planned. At many places, these facilities are non-existent or being provided by individual airlines from their airport/city offices, that are scattered resulting in waste of time and money, according to the DACAAI members. Even at the metro airports, the infrastructure was not efficient enough to cater to the present tonnage and growth. As a result, domestic air cargo handlers and airlines have been utilising only 25 per cent of their capacity. On an average, each aircraft has available capacity of around 2500 kgs but today is only able to record 600 kgs per departure.

To achieve efficiency in handling such large tonnages of domestic cargo, DACAAI had conducted a study on the need of proper standard centralised domestic cargo facilities that had been handed to the MoCA in October last year. The study had recommended the creation of common terminals in 32 airports — where domestic air cargo has been witnessing rapid growth — in the first phase. “We would like the Ministry to utilise DACAAl’s experience in handling domestic air cargo,” said President Suraj Agarwal. This could be done by consulting DACAAI before issuing policy guidelines. One of the irksome issues was the multiple charges levied by different airport operators and the establishment of standard facilities, handling and screening equipment, “so

it will change the whole industry. Experts will give a brief knowledge about GST and how it will change the whole industry. We will also discuss other problems that will creep in. Manpower is also an issue which hampers growth. We don’t have any set of training and skill development for manpower to handle this type of growth. If we are talking about handling the growth close to 15-20 per cent we will have to hire such manpower who understand the business and who are trained enough to handle it. We will be looking at this issue in the convention.”

—Charchit Singh

down,” Bajaj said.

The trade body also demanded an independent ombudsman who could be approached for redressal of grievances, highlighting of issues like service levels by different providers and sorting out bottlenecks in the handling domestic air cargo. “A robust, exclusive, monitoring, consultation and redressal mechanism needs to be put in place. We would like the Ministry to give us a separate ombudsman,” said Agarwal. On his part, Minister Dr Sharma said that air cargo was one of the top priorities that his ministry was working on. “We are working on how to increase the cargo business, how to ease this cargo business. Even after having everything, our share of cargo is very small just because of charges are very high and there is poor infrastructure support. We are going to discuss this with the related ministers,” he said.

He went on to emphasise that “we are committed that the problems of air cargo industry are addressed in a proper manner”.

Cargo & Logistics I September 2015

19

FOCUS

ECS bets big on India Instead of setting up a solid infrastructure for the movement of air cargo, most carriers now prefer handing over the business to GSSAs. The Paris-based ECS, for example, has been providing services to a number of carriers doing business in India, reports TIRTHANKAR GHOSH

P

aris-headquartered ECS Group Chairman and CEO Bertrand Schmoll loves the Indian market. “It is one of the best in the world,” he pointed out to C&L during his recent visit to Delhi. The CEO of the General Sales and Service Agency (GSSA) makes quarterly trips to India and has witnessed the changes that are taking place in infrastructure at both big and small airports around the country.

“You have all the tools to become the key market in the world,” he went on to say.

Add to that the population of which only a small part is flying today, he said. That is what he is optimistic about because the numbers are surely going to go up in the future.

Upbeat about the tie-up with AirAsia India, Schmoll mentioned that ECS was “very happy with the partnership. AirAsia is a growing airline. They have five aircraft that will increase to eight. And as far as I know, in terms of passengers they are seeing growth. If we can continue our partnership on a long-term basis, they will benefit since cargo will bring in additional revenues. It is a perfect partnership for us,” the CEO said.

It was around this time last year that AirAsia India appointed Global Air Cargo India (with Rajendra Dubey as Country Manager), part of the ECS Group, to manage its cargo sales. At that time, Mittu Chandilya, CEO, AirAsia India had said that the carrier had “left it to experts to handle cargo while we will concentrate on the passenger side, which we know better”. AirAsia India is one of the few low-cost carriers to have its total cargo operations managed by the ECS Group. And the GSSA has been able to deliver according to AirAsia India’s expectations. That is because the business model that is followed is custom made

20

September 2015 I Cargo & Logistics

where, for example, the fast turnaround times at airports have been factored in.

The carrier demands no delays due to

CHANGING TREND: GSSA loading the cargo onto a Qatar Cargo’s freighter

loading and unloading of cargo.

Today, the tie-up with AirAsia India has provided the global GSSA the op-

FOCUS

portunity to offer services to its clients – ECS handles Saudia, Tiger Airways and even Etihad — around the subcontinent. Today, for instance, Saudia in the US can move cargo to Indian airports served by AirAsia India. It is the same with cargo from India. The other airlines ECS serves from India with global GSSA agreements are Brussels Airlines, Ukraine International Airlines, and Camair..

To serve AirAsia India and its other clients – “We are always looking for oth-

er carriers,” Schmoll said – ECS has set up its own offices. The CEO, however, was quick to point out that the number of offices or employees was “not significant when you compare with the size of the country”.

ECS Group’s expansion in India with its inherent infrastructural woes is not surprising. Recent international air cargo figures of April 2015, according to WorldACD, indicate that cargo General Sales and Service Agency (GSSAs) and General Sales Agents (GSAs) have seen

a substantial growth in revenues. In fact, well over 20 per cent of global revenues came from sales through GSA agreements. Data suggests that sales through GSAs were higher than those from other sources in Asia Pacific, North America, Middle East and South Asia. Two regions that GSAs did not do well were Africa and Latin America. “In Q1-2015 volumes released through GSA’s amounted to 19 per cent worldwide, ranging from 10-12 per cent (North America and Asia Pacific) via 24 per cent (Africa) to 2832 per cent (Europe, Middle East and South Asia (MESA) and Latin America). GSA-yields remained below “ownsales-yields”, but the gap was smaller than a year before: they increased from 87 per cent of own-sales-yields to 90 per cent. The GSA-yields in Africa and Latin America even surpassed those from own sales,” WorldACD said in its trend report.

C&L asked Schmoll for the reasons of this growth. It was important, he said, to maintain high standards of service.

Airlines wanted more dedicated services today, he emphasized. He was merely underscoring the role of the General Sales and Service Agency (GSSA) appointed by a large number of airlines across the globe to sell cargo space. (Airlines normally use GSSA in areas that it does not operate to or from, allowing them to have a sales presence in a country at lower cost than opening their own offices in the short term. The services of GSSAs are used because they have historical ties with cargo agents which are time-consuming for the airline to build itself.

ECS Group was focused on innovation and “new services must be offered to airlines”. For ECS, and hence the airlines that it was representing, it was important to create new avenues of growth in conjunction with interline solutions.

Bertrand Schmoll was clear when he mentioned that meeting the airlines’ growing needs “requires us to be highly disciplined and organised. Sales activity is our core business, it is our DNA. Revenues depend on the generated sales. We need to be strong sellers in order to satisfy both airlines and forwarders.”

Cargo & Logistics I September 2015

21

FOCUS

“The Indian market is one of the best in the world” Bertrand Schmoll, CEO, ECS, is optimistic about the future – as far as business in India is concerned, he told C&L in a short conversation recently. ECS, said Schmoll, values the partnership with AirAsia and is looking forward not only to build on it but also provide similar services to other carriers in the country. Excerpts: What is it that GSSAs are doing right?

The airlines want more and more service of course and more dedicated service, more commitments from our side. People want more service and more dedicated service and they want that we commit more and deliver of course.

The other point is that the situation of the airlines is not very healthy. And then I think there has been a change recently where cargo has become more important for them than in the past – I think so. And, therefore they are expecting more from us… they are also expecting more ideas from us: How to increase the tonnage and how to increase also the yield. So, they want ideas from us and not only for selling point to point but also

How do you think has ECS fared?

This is the big challenge for us but I think that ECS has proved that it wants to bring solutions to the airlines and bring ideas which can increase their revenue. I think we are well positioned to answer to these new challenges.

What is your view about the Indian market?

I love the Indian market. For me, it is one of the best in the world because you have all the

tools to become the key market in the world: you have the population which is increasing, and for the time being there is only a small part of the people or a small percentage of the population which is travelling by plane.

This will change for sure in the future and a number of low cost carriers which is developing in the country shows that it’s on the way and the country is changing… the infrastructure is better and it is better organised. I see the changes when I come to the country.

So, you have the population, you have the aircraft – so for cargo it is great. And you have a big country. You have two kinds of freight business: the domestic which keeps on changing (and growing) because the distances are great because you are a big coun-

GREAT COORDINATION: Bertrand Schmoll, CEO, ECS Group with Rajendra Dubey, Country Manager, ECS Group

H C TIWARI

22

ideas for a larger network or to choose a destination with better yield. Or, to make cargo coming from other destinations that they are not covering — in fact, everything that can increase their revenue.

September 2015 I Cargo & Logistics

FOCUS

try. You need the aircraft especially for all the purchase orders through internet because people want fast deliveries. So, they want to use air freight. And, of course, there is the export market.

How is your partnership with AirAsia going?

We are very happy with our partnership with AirAsia. Air Asia is a growing airline. They had five aircraft, they have increased to eight and they plan to increase and develop the airline. And as far as I know in terms of passengers, they have a very good load factor.

And if we can continue our partnership on the long term with them, bringing additional revenue with cargo, it is the perfect partnership for us. We love this kind of partnerships.

Are you scouting for partnerships with other carriers in India?

We are always looking for other carriers in India. Now we have more than 120 staff and we are in 19 cities in India. I think it is significant to compare to the size of the country but we are very happy about the development of (ECS in) India. I consider that India is one of the best successes of the group because we didn’t buy anything, we just created this company from scratch and

I think after 3-4 years I feel that having this development (120 staff) and this presence (19 offices) in India is an achievement.

Latest cargo figures point out that GSSAs have strengthened their position in air cargo: more than 20 per cent of worldwide revenues were generated through sales under GSSA agreements. In fact, GSSAs showed a higher than average volume growth coupled with less yield loss. What do you attribute the success of the GSSAs to?

There are many, many reasons. But of course there is the development of the low cost carriers. The low cost carriers see cargo as an important revenue stream and they don’t want to invest. They want to bring in revenues and they don’t want to have the cargo setup. The development of this low cost cargo revenue is also the development of the GSSA and this is specifically for Asia. In Europe, the low cost carriers are not doing cargo because the infrastructure is not the same, but in Asia it’s really one business for them.

The other thing is that the airline industry in the past was doing everything. They were doing the maintenance, they were doing the catering, they were doing the

hotels… Now, more and more their focus is shifting to their core business which is the transportation of the passenger and the sales of the ticket to the passenger.

Their focus on their business is the transportation of passengers and of course there is space in the belly to transport cargo.

In the newer aircrafts as you know, there is more space for cargo. In the 777s you can put 30 tonnes which is more or less (the tonnage) carried by a small freighter. So, you now have the capacity on a passenger aircraft to transport as much as the size of a freighter. The world is changing…

So, it (the transportaiion of cargo) is not their core business. We are organised for that. We have a portfolio of airlines from where we are able to go to others and propose many destinations. And then we become real partners for others and we can propose to them a large range of destinations. For the airlines that we represent it is good because they have better relations or stronger relations with others than if they were selling on their own or within their own network.

It is also a question of savings because the cost of a GSSA is usually less than the airlines having its own team.

Cargo & Logistics I September 2015

23

SPOTLIGHT

The uproar that the killing of Cecil the lion started has had a salutary effect: a number of airlines have banned the carriage of hunting trophies. But confusion still prevails since some carriers continue to transport such trophies provided they are legitimate hunting trophies. A report

Yes, no, maybe to hunting trophies 24

September 2015 I Cargo & Logistics

SPOTLIGHT

W

alter Palmer from Minnesota and Jan Casimir Seski, a doctor from Pennsylvania would not have become international figures were it not for 13-year-old Cecil the lion. Today, both men from the medical profession are on top of Zimbabwe’s wanted list — certainly not for their services but for their passion of hunting. While Palmer managed to lure Cecil, one of Africa’s most iconic lions and ultimately kill the beast on July 1, 2015, Seski is believed to have shot a lion in April. Cecil the lion, incidentally, was one of the main attractions at Hwange National Park in Matabeleland North, Zimbabwe, and an integral subject of Oxford University’s Wildlife Conservation Research Unit.

The lion’s body was skinned and the head removed — ostensibly for a trophy by the American dentist. After all, Palmer is reported to have paid a whopping $50,000 to hunt the lion.

What followed was swift and, according to news reports, “merciless”. Palmer’s clinic was closed and his office’s Yelp page saw a host of angry retorts. Result: Palmer vanished. Recent reports suggest that he had started cooperating with the US Fish and Wildlife Service that was trying to determine his “crime”.

Palmer’s act woke up airlines around the world (see list) — each one declaring that it would not carry hunting trophies any more. The first carriers off the mark were Delta, United and American Airlines. Delta has flights to a number of African cities (it is the only US carrier flying direct to South Africa) and had to face an online petition signed by 60,000 people to ban such shipments. Initiated by a Delta frequent flyer, Chris Green, who is also chairman of the American Bar Association’s Animal Law Committee, the petition was followed

by a meeting with Delta’s CEO, Richard Anderson, who was asked to “refuse to play a role in the wildlife trafficking supply chain”.

On the other hand, though American Airlines and United fly to fewer African cities than Delta, United pointed out in a tweet that it would stop transportation of trophies: “Effective immediately, Delta will officially ban shipment of all lion, leopard, elephant, rhinoceros and buffalo trophies worldwide as freight”. Charles Hobart, United’s spokesman, justifying the ban said: “We felt it made sense to do so.”

Virgin Atlantic Cargo went a step further: it called for an ethical cargo policy to be adopted by all carriers. In fact, Virgin had adopted its own ethical policy more than three years ago bans the carriage of hunting trophies, Bluefin tuna, shark fins, animals for research including primates and laboratory rats, as well as hatching eggs and day-old chicks, meat or products from Cetaceans, and furs and pelts. Virgin’s John Lloyd, Senior Vice President Cargo said: “As part of our ethical cargo policy adopted a number of years ago, we do not carry certain cargo including hunting trophies, endangered species, shark fins and any animals for research purposes. It’s great to see other carriers adopting similar policies but an industry-wide agreement that all airlines support would be a significant step forward in helping to prevent such shipments.”

Virgin Atlantic Cargo also pointed out that an industry-wise agreement would make it imperative for all carriers to put an end to shipments of hunting trophies and endangered species. In addition, it would do away with any confusion and inconsistency. The announcement by the Convention on the International Trade in Endangered Species (CITES) and International

Air Transport Association (IATA) to reduce illegal trade in wildlife and products from animals could, according to Virgin, become the catalyst for this much-needed change. More than 35,000 species (over 5,000 animals and 30,000 plants) are protected under the CITES, which includes, but is not limited to, great apes, the giant panda, many South American monkeys, cheetahs, lions, leopards, tigers, elephants and rhinoceroses.

Another carrier that has decided to enforce the ban has a different take. Air Canada, for example, said it would stop carriage of trophies of the Big Five animals — lions, elephants, rhinoceroses, leopards and Cape buffalos — worldwide as cargo but it would transport some Canadian animal trophies like the black bears or grizzly bears.

Like Air Canada, WestJet said while it would not carry any of the Big Five animals, but it would transport elk, deer, bears or any other animal that had been legally hunted, according to spokesman Robert Palmer.

Swimming against the tide, the government-controlled South African Airways (SAA) lifted its ban — imposed barely three months ago — on the carriage of hunting trophies: heads or carcasses of elephants, rhinos, and lions, according to a report from Bloomberg. The carrier gave no reasons for the lifting of the ban.

Apparently, it was the lobbying by the Professional Hunters’ Association of South Africa (PHASA), a nonprofit organisation that supports the professional hunting industry, with South Africa’s Department of Environmental Affairs that ended the ban. An elated Adri Kitshoff, PHASA’s chief executive, mentioned that the lifting of the ban was “in line with the South African government’s policy of ‘sustainable

NO TROPHIES

Cargo & Logistics I September 2015

25

SPOTLIGHT

utilisation’ of its natural resources”. PHASA is the largest association of its kind (it has 1200 members) and claims that hunting and “the trophy hunting industry, in particular, has a significant role to play in conservation in South Africa”. “There is a clear distinction between illegal wildlife products, such as poached rhino horn or ivory, and legitimate hunting trophies.

The export of trophies is strictly regulated by both the country of origin, the country of import and, where applicable, CITES,” said Kitshoff in a statement.

Like SAA, United Parcel Service (UPS) too has not stopped the carriage of hunting trophies. It pointed out that it adhered to US and international laws when it wanted to determine what to ship and what to avoid. UPS public relations director Susan Rosenberg went on record to

state in an email to The Washington Post: “There are many items shipped in international commerce that may spark controversy. The views on what is appropriate for shipment are as varied as the audiences that hold these views. UPS takes many factors under consideration in establishing its shipping policies, including the legality of the contents and additional procedures required to ensure compliance. We avoid making judgments on the appropriateness of the contents. All shipments must comply with all laws, including any relevant documentation from the shipper required in the origin and destination location of the shipments.” Simply put, if the shipment was legal, UPS would carry it.

FedEx too, held a similar view. Spokesman Jim McCluskey said that the company “may accept legitimate shipments of parts

While a senior Zimbabwe minister Oppah Muchinguir has called for Dr Walter Palmer (see photo) to be extradited to Africa to face illegal hunting charges, in the world of air cargo, other than the carriers that have banned the carriage of hunting trophies, no word has come from regulator IATA about the call for an ethical air cargo industry standard that was initiated by Virgin Atlantic.

26

September 2015 I Cargo & Logistics

for taxidermy purposes if they meet our shipping guidelines…These are legitimate shipments, not shipments that are illegally obtained. Our priority is to ensure we abide by laws and regulations for all shipments”.

Till airlines across the board take a decision to follow CITES, confusion on what will be carried or not will continue.

However, what is important is that the carriage of dead or live animals is one of the most stringently regulated today. The IATA Live Animals (LAR) is the global standard and the essential guide to transporting animals by air in a safe, humane and in a cost-effective manner. Whether one is a shipper, a freight forwarder, an airline, or an animal care professional, the LAR is a must for transporting animals humanely and in compliance with airline regulations and animal welfare standards.

Often, however, there are cases where these regulations do not work. But that is a different matter altogether and needs to be addressed separately.

16-17-18

december

BOMBAY EXHIBITION CENTRE MUMBAI

GATEWAY TO THE WAREHOUSING & LOGISTICS COMMUNITY OF WESTERN & SOUTHERN INDIA MATERIAL HANDLING | STORAGE | FLOORING | WAREHOUSING INFRASTRUCTURE AUTOMATION & IT | PACKAGING | LOGISTICS SERVICE PROVIDERS

PRE-REGISTER NOW to visit India Warehousing & Logistics Show 2015 at www.indiaWLshow.com To Exhibit, Contact: Rohit Dewan M: +91-97111 57626 E: rohit.dewan@reedexpo.co.uk

Co-located show

Media Partner

Organised By

COLUMN

Collapse of Supply Chain A natural or man-made disaster could usher in a frightening scenario for the manufacturing industry today that depends on materials arriving ‘just in time’ to the assembly line, comments Ramesh Kumar Ramesh Kumar

we are a two trillion dollar economy and if the Government of India statistics are to be believed the share of manufacturing in the GDP is around 16 per cent and our rulers want this share to be scaled up to 25 per cent as early as possible 28

M

y friend, Save Life Foundation Chief, Trainer Pradipto Bhattacharya, has a fond sentence that he repeats at every ‘gig’ of his: “Accidents don’t pre-announce their arrival. They just happen when you don’t expect.

So be alert always when at the wheels.” He’s spot on.

The multi-linguist advocate of safe driving was addressing long-haul truck drivers.

Disasters come in all forms: hurricanes, earthquakes, tsunamis... Rail, road, ship and air accidents, food poisoning, asphyxiation, chemical or gas leak – remember the Bhopal disaster or Cheronobyl? Well, the list is endless. Every country worth its salt has some form of disaster management planning to cope with crises.

Handling them when confronted with such situations is dicey and painful. There is no 100 per cent satisfaction from the victims. Why? The reasons are many: Relief not reaching in time; We are taking up emergency medical, food, shelter, etc. These kind of unforeseen happenings are routine. Across the globe, such catastrophic events occur regularly.

Tess Pennington and Daisy Luther aptly put it, “Although it is difficult for many to accept, there are and forever will be events beyond our control,” in their magnum opus, The Pepper’s Blueprint: The Step-by-Step Guide To Help You Through Any Disaster (2014).

Echoing Bhattacharya, they write, “Emergencies don’t announce themselves. They just show up and expect you to make do while they are present. These events could be so severe that they have the capacity to bring us to our knees.” Pure and unadulterated truth.

Given the fact that we all live in an age of outsourcing, our dependence on someone outside our own comfort zone is glaring.

Convenient, it may appear on the surface of it. But is it? What if the housemaid from the neighbour who comes to cook, clean and wash clothes does not turn up for two days? What if the regular school bus does not turn up at the

September 2015 I Cargo & Logistics

scheduled time to pick up our kids at the street corner? What if … Well, the list is endless even at the personal level.

Now shift the gear to the manufacturing side. Remember we are a two trillion dollar economy and if the Government of India statistics are to be believed the share of manufacturing in the GDP is around 16 per cent and our rulers want this share to be scaled up to 25 per cent as early as possible. Well, the ‘Make in India’ campaign, enticing Foreign Direct Investment (FDI) into our country is part of that game. Like everything else, our manufacturing style is a copy of western and matured economies. That is to say, outsourcing is the name of the game. By and large, various Tier 1 and Tier 2 and perhaps Tier 3 vendors supply to the mother plant where everything is assembled. Yes, you heard it right.

If you think the BMW or Swift Dzire or Duster you’re driving on Indian roads is built from scratch at these European or Japanese auto manufacturers in India, forget it. More than 80 per cent of each of these most loved passenger vehicles are put together with parts supplied by vendors approved by these companies. There was a time when most of these parts were made by the company concerned. That was in pre-Maruti Udyog era. No longer. Why? Those days, the numbers were small. Few could afford cars. It was like cottage industry. Can you believe that Ambassadors and Fiats in the pre-Maruti age used to dispatch each car to dealers by road driven by a dedicated driver. Why? Because the massive and long 22 metre car carriers did not exist. Until the arrival of Maruti Udyog in early 1980s which ushered in the concept of cars being dispatched in bulk – say five or six inside the belly of specially fabricated trucks.

Just not finished cars. Even parts that go into the innards of cars was manufactured outside the factory – in collaboration or under the supervision of foreign companies, brought in for assembly. Imagine that these parts sometimes used to come from Chennai, Mumbai, Pune, Bengaluru or Madurai to Gurgaon in the north

on two-lane highways (the concept of 4-lane highways came much later).

Add the ‘Just in Time’ fascination of global giants. Put it differently, no one wanted to hold stocks to feed the assembly lines. There are several reasons: inventory cost was high when you hold two or three months’ stock of spare parts to feed your assembly line to make a finished car or any product. Plus, that action occupied space which again is at a premium. And to manage that inventory you need people. Again additional costs. Imagine if parts are brought directly to the assembly line from the truck that has just entered the factory premises. Well, that is a bit of an exaggeration. Even JIT practitioners held a week’s stock of domestic items. Of course, 30-60 days stock of imported items. Why? Because you’re unsure of the Imponderables.

What if the truck ferrying spare parts from Madurai or Nashik or Bengaluru or wherever gets stuck in some highway challenge – be it an earthquake, rioting in the area that the truck was passing through or violent activities of extremists? The assembly line has to be shut down if spares don’t reach in time. Imagine what would happen if out of several hundred or thousand parts one item does not reach JIT…you had it!

Production planners and executions cannot make a vehicle with just one part missing and later rerun the same vehicle on the same assembly line to fix the earlier-missing-but-now-arrived-part?

That would be utter madness.

I will give a concrete case. At a plant in western India, a leading automaker’s production chief was scratching his head in despair when he realised that a truck carrying some spare parts from a Tier 1 vendor – hardly 60 km away from the manufacturing site – vanished with no trace. Mobile switched off. GPS off. The vendor assured that the vehicle had left on time. It does not take seven hours to cover the distance of 60 km! True.

But there was no trace of the vehicle. Every part is critical. The stoppage of production would mean heads would roll which no one wanted.

The warehouse head quietly escalated the issue to find a solution quickly. It was a classic case of supply chain collapsing.

The absence of one small nut or bolt can ‘screw up’ everyone’s happiness and shoot up blood pressures leading to all kinds of tension.

“Beyond our control”! Untraceable vehicle!

What can one do? Another time, a consignment from an European parent ferried by road from Mumbai port met with an accident on the road to the plant. On a busy, crowded two lane state

WIKIMEDIA

COLUMN

highway, a smart supply chainer cajoled the traffic police to help him unload the entire container because the most-urgently needed item was in it! The entire supply chain team saved the embarrassment of shutting down the assembly line on its maiden launch.

Supply chain disruption/collapse can be man-made, natural causes, product recall, etc.

Dr Alan Punter, Risk Management Consultant, beautifully sums up: “The financial impact can be a near-term temporary drop in profits (because of increased costs and/or reduced sales) and shareholder value, and/or a longer-term more permanent loss of market share (as competitors take customers or a new product launch is delayed). The non-financial impact can be long-lasting damage to a company’s reputation or brands, if unethical behaviour within the supply chain become associated with the ‘front’ customer-facing company.”

Supply chain is not for weak-hearted. Nor for traditional desk job guys. If anyone believes that technology would be the ultimate saviour, they would be disappointed when there would be a tech blackout with no electronic gadget working. Nothing to track and nothing to trace. Back to cave ages. Are we ready for that?

(The author is Member, Committee on Supply Chain & Logistics, National Centre for Cold-Chain Development - A Govt of India Organisation Under Ministry of Agriculture. He is also author of 10,000 KM on Indian Highways, Naked Banana! and An Affair with Indian Highways

AUTOMATED: A car being assembled at one of human free car manufacturing units in India

The non-financial impact can be long-lasting damage to a company’s reputation or brands, if unethical behaviour within the supply chain become associated with the ‘front’ customer-facing company

Cargo & Logistics I September 2015

29

NEWS IN BRIEF

AIR  PANTNAGAR TO BECOME AIR CARGO HUB Pantnagar Airport in Kumaon region will be developed as a cargo hub and will get better air connectivity soon.

At a meeting of the Airport Advisory Committee recently, it was decided to develop Pantnagar as a cargo hub and to increase the length of the runway from its present length of 1,372m to 1,865m. Expansion of the airport and new flights to Dehradun and Delhi were also recommended. The master plan for the airport includes its expansion for which the request for 500 acres of land has already been forwarded to the state government. “The main points discussed were acquisition of land for expansion, development of the airport as a cargo hub to fulfil the demands of adjacent industrial area and increasing connectivity through more flights,” said N Subramaniam, Director of the airport.

TAC PUSHES AHEAD WITH E-AWBS Thailand’s second largest air forwarder, Trans Air Cargo (TAC), has continued to increase its use of e-airwaybills.

TAC began its digital transition in the spring of 2015 and is now sending 400 to 500 electronic-air waybills (e-AWB) per month. Continuous engagement with airlines on a local level is an important factor, as airline headquarters may be ready but that doesn’t mean their local offices are,” said Keree Chaichanavong, Managing Director of TAC. “Selecting the right technology partner is vital, it’s one thing to begin sending electronic data, and it’s a further step to go paperless as per the IATA resolution 672. First, we needed to get connected and begin transmitting data to all our airlines. Then we engage with each locally to coordinate the switch to full e-AWB,” he added.

TAC selected Worldwide Information Network (WIN), the online platform for independent forwarders, as its technology provider due to its airline coverage, experience in helping independent

30

September 2015 I Cargo & Logistics

Oman Air-Cargolux adds second flight to Chennai T

he partnership between Oman Air and Cargolux, launched in April 2015, has introduced a second frequency to Chennai from August 11, 2015. The addition of Chennai to the Oman Air Cargolux network is the cooperation’s latest step in expanding its air freight services from Oman to India. The cooperation was established to enable Oman Air and Cargolux to jointly access new freighter destinations and contribute to the development of Oman’s logistics hub. It will allow Cargolux to utilize Oman Air’s experience of flying to a range of global destinations, including 11 destinations in India. Mafoodh Al Harthy, Chief Officer Sales, Oman Air, said: “We are pleased to

announce that Oman Air and Cargolux will now operate two full freighter flights from Chennai to Muscat. The new service will enable us to strengthen our presence within the Indian market by accessing the industrial belts of South India. We look forward to seeing our new services to Chennai rapidly become a cornerstone for the transportation of cargo between India, the Middle East and Europe,” he added.

Niek van der Weide, EVP Sales and Marketing, Cargolux Airlines,said: “ India will be a very important market for Cargolux in the future and we will look at further expansion soon with planned addition of Bombay as a second destination.”

Sri Lankan Airlines to start cargo service from Trichy

T

he Trichy International Airport, established four years ago, has been witnessing a rise in cargo shipments. Now, international freight carriers have decided to start their operations from the city. Sri Lankan Airlines will become the first international airlines to introduce a cargo flight from Trichy in the next two months using McDonnell Douglas MD-82 (twin-jet) aircraft. The carrier, which has a capacity of 19 tonnes, will be operated for twice a week, and the airline is currently working on processes involved in ground handling operations.

The old terminals of the airport have been modified to cargo terminals. The terminals spans to 4,000 square feet and has ability to handle at least 250 tonnes of goods at a time. The Sri Lankan Airline authorities recently had a meeting with cargo officials and investigated facility at the cargo complex. The airport expected over 6,500 tonnes of goods to be transported this year. In July alone, more than 600 tonnes of goods were exported.

NEWS IN BRIEF

AIR  forwarders make the switch to e-AWB, ease of use, and proactive support.

NEW CARGO PRICING FROM LUFTHANSA AND SWISS

IAG Cargo and Qatar extends deal

I

AG Cargo has significantly extended its capacity partnership with Qatar Airways, one year on from the signing of their landmark freighter deal. Qatar Airways now operates nine routes on which IAG Cargo purchases capacity, in what has become one of the largest cargo partnerships of its kind. A new Shanghai to Madrid service and a new feed from Islamabad to the IAG Cargo network has been launched, representing this latest stage of the partnership. IAG Cargo is also increasing the capacity it books on regional routes, covered by the Qatar Airways partnership.

QATAR LAUNCHES ON-BOARD COURIER SERVICE: Qatar Airways Cargo has launched an express airfreight service for door-to-door and time-critical shipments. The new QR On-Board Courier service rolled out across the cargo carrier’s global network on August 1, 2015, enables customers to book time-definite airfreight delivery solutions.

QR On-Board Courier provides bespoke transportation services, which meet customers’ specific requirements, with dedicated couriers accompanying each shipment from collection to delivery

direct to the recipient. The Qatar Airways Cargo team provides a comprehensive booking service for customers from flight reservations to entry requirements and customs regulations anywhere in the world. The maximum level of security is also provided for customers’ courier shipments.

BOEING 747 FREIGHTER INTRODUCED: Qatar Airways Cargo’s first Boeing B747 freighter has joined the carrier’s expanding fleet having completed its first flight from Doha to Hong Kong. Flexibility in loading is a key feature of the Boeing B747 freighter. With a large side cargo door the aircraft can be loaded quickly and easily, whether the cargo is made up of standard containers and pallets or nonstandard, outsized objects.

Lufthansa Cargo and Swiss WorldCargo have adopted a new pricing structure with effect from the winter flight schedule 2015/2016. Swiss WorldCargo’s and Lufthansa Cargo’s pricing structure will consist of two components: a net rate plus an Airfreight Surcharge. The new Airfreight Surcharge will be significantly lower compared to the combined fuel and security surcharges, which will be eliminated with the start of the winter flight schedule. As the surcharge level will be decreased, the change in the pricing structure will subsequently lead to a re-aligned and increased net rate that will reflect the real value of our service in an adequate way. Overall prices of transportation will remain at current

levels, Swiss WorldCargo said in a release.

“In countries that are subject to state regulation, e.g. Japan and Hong Kong, we will retain the current surcharge structure. The new, market oriented Airfreight Surcharge reflects the volatility of external cost factors, such as fuel, exchange rates, flight dependent cost such as airport charges and fees, which are beyond our control. The Airfreight Surcharge will be adjusted whenever one of these external cost factors changes significantly and thus will display necessary price adjustments in a transparent way. This would not have been the case with an all-in rate, which we also investigated in detail,” release added.

Cargo & Logistics I September 2015

31

NEWS IN BRIEF

SHIPPING AND PORTS 

India and Egypt likely to join hands

I

The central government is keen to improve the standard of supply chain in the country. In a move to reduce the bottlenecks of supply chain, the government has ordered all the major public ports to set up a green channel for the clearance of coastal cargo. “Guidelines have been issued to all the major ports to earmark exclusive berths, storage areas and gates for coastal cargo outside the custom bonded area of the ports to facilitate the movement of coastal cargo,” Minister of State for Shipping Pon Radhakrishnan said in a written statement.

“The ports of Kolkata, Visakhapatnam, V. O. Chidambaranar (Tuticorin), Cochin, New Mangalore, Mumbai and Kandla have already established green channels for coastal cargo,” the minister said. India’s 12 major ports cumulatively registered a 6.7 percent increase in throughput to 8 million 20-foot-equivalent units in fiscal year 2014-15, from 7.46 million TEUs the previous year.

ENNORE MAY GET NEW VEHICLE TERMINAL Exports of car from India have grown dramatically in the last four years. The country registered a growth of about 9 per cent. In order to accelerate the growth and keep the momentum going, the central government is planning to set up a new terminal in Port Ennore at Kamarajar city. The construction of the new terminal will start in 2016, after the project is approved by the Board of Directors of the Port.

The development of the port is mostly due to the big production capacities of Renault SA and Hyundai Motor Company. The growth of cars export through Port Ennore for the first six months of 2015 is 11 per cent and according to estimates, the Port will reach the limit of 300 thousand cars handled through the terminal during the next fiscal year. India Government and Port Ennore are quite optimistic

32

September 2015 I Cargo & Logistics

H C TIWARI

COASTAL CARGO PRIORITISED

ndia and Egypt have agreed to strengthen the bilateral relationship in the area of inland waterways and port development. Road Transport and Highways Minister Nitin Gadkari called on the Egyptian Transport Minister Eng Hany Dahy to discuss the same. The Egyptian Minister also expressed keen interest in India’s ambitious plans for infrastructure development. Gadkari was in Egypt representing India at the inaugural ceremony of new Suez Canal on behalf of Prime Minister Narendra Modi.

“The two Ministers agreed to enhance cooperation between India and Egypt in the area of Inland waterways and Port development,” an official statement from Road Transport and Highways Ministry said.

It said, “Both leaders exchanged ideas on innovative financing for PPP (Public Private Partnership) projects and use of new technology in areas of green transport, river transport, Ports etc.

RSVs to move cargo via Bangladesh

T

he north-eastern region of India will receive its cargo through River Sea Vessels (RSVs) or equivalent-class vessels via Bangladesh as both countries signed an agreement for the same, according to the Minister of State for Shipping P Radhakrishnan. “These vessels have lower technical and manning standards compared to foreign-going vessels and are more cost-effective without compromising on the safety of the vessel,” the Minister said.

According to Radhakrishnan, the two countries will give the same treatment to each other’s vessels as each country gives to its own domestic vessels with respect to port dues and other charges. He made it clear that the agreement only included merchant vessels and excluded warships, research vessels and fishing vessels, among others. “The opening of coastal route between India and Bangladesh is expected to provide an alternative route for transportation of EXIM cargo as well as transit cargo to the northeastern parts of India,” the minister added.

NEWS IN BRIEF

SHIPPING AND PORTS  and there are forecasts of a growth of 20 per cent until 2020.

SCI’S Q1 PROFIT RISES

Traffic rise for major ports

I

ndia’s major ports saw a five per cent rise in container volumes in July as compared to last year. It also helped the ports to recover from a year-over-year decline of 1.5 per cent in throughput recorded in July 2015. The number of export and import containers handled at the country’s 12 major ports reached 730,000 Twenty Foot Equivalent Unit (TEU) during the month, up from 697,000 TEU in July 2014.

Containerised cargo tonnage in July expanded 6 per cent to 11 million tonnes (mt) from 10.4 mt. Jawaharlal Nehru Port

Trust which was again India’s busiest container gateway handled 3 per cent more containers in July than a year earlier, with throughput increasing to 399,000 TEU from 388,000 TEU. From April to July, JNPT grew volumes by 1.2 per cent from a year earlier to 1.51 million TEU. Chennai port, the Country’s second-largest Public Container Port complex and busiest on the Eastern coast recorded a 1.4 per cent gain, moving 143,000 TEU in July, up from 141,000 TEU a year earlier, according to the data.

The Shipping Corporation of India (SCI) recently declared its financial results for the first quarter of 2015 ending June 30, 2015. The company has noted a net profit of `163.54 crore as compared to a net profit of `49 crore registered in Q1 ended on June 30, 2014. The company had marked a net profit of `101.49 crore during the quarter ending march 2015. In the previous financial year ending March 2014, the SCI had registered a net profit of `200.93 crore. Bunker costs dropped to `181.11 crore during the April-June quarter from `385.67 crore a year ago. Bulk carrier and oil tanker earnings rose to `805.91 crore from `740.97 crore a year ago.

SCI currently owns 69 vessels corresponding to 5.89 million dead weight tonnes and 3.29 million gross tonnes which include 35 tankers.

GANGAVARAM CONDUCTS MEDICAL CAMP

Kandla Port starts container handling

K

andla Port has commenced container handling after a gap of two years. The port started its operation on August 7, 2015 with the call of the coastal vessel MV Allcargo Susheela under the agency of Mystic Shipping Private Limited at Berth No. 11. Ravi Parmar, IAS, Chairman of Kandla Port Trust (KPT), flagged off the resumed container operations in the presence of a large gathering of Port users and exporters/importers. The vessel loaded 20 Twenty Foot Equivalent Unit (TEU)—168 TEU of iodised salt and 32 empties. Of the 200, 125 TEU were destined for Mormugao Port and 75 TEU for New Mangalore Port. This

will be a regular weekly coastal service covering Kandla - Mormugao - New Mangalore - Kandla, it was highlighted.

Mukesh Balani, KPT Traffic Manager, said that presently the Port can only handle container vessels having their own cranes (geared), adding that it will take about six months for the shore cranes to be repaired and running.

Gangavaram Port Limited recently organised a mega medical camp for the local people in the area surrounding the port. The camp was conducted at Nadupuru High School, Peda Gantyada Mandal, Visakhapatnam.

The campaign was supported by a team of 12 expert doctors and the Gitam Dental College team. The initiative was a part of Gangavaram Port Corporate Social Responsibility programme which has been specially designed to bring an improvement in society. The health camp provided free treatment and medication to the locals and created awareness about the prevention techniques for a better living.

The participants at the camp went through a systematic process of checkups followed by preliminary diagnosis and consultation by the doctors. A total of 609 persons were given treatment and distributed medicines free of cost.

Cargo & Logistics I September 2015

33

NEWS IN BRIEF

LAND  IFC TO SUPPORT LOGISTICS SECTOR IN INDIA

International Finance Corp (IFC) which is a part of World Bank is planning to invest around $700m in existing transport and logistics infrastructure projects in India. India is said to constitute the largest portfolio exposure for IFC and its total infrastructure portfolio in the country is around $2.6bn.

“Transport and logistics infrastructure are key to envisaged GDP growth in India. With the government embarking upon reforms to boost GDP, the country needs the right transport infrastructure. IFC is looking at investing in segments including logistics back-up of e-commerce companies, warehousing companies, operating road assets and container freight stations, besides renewable energy firms,” said Sujoy Bose, IFC’s Global Head of infrastructure and natural resources to a daily.

The group has also taken up a 20 per cent stake in Cube Highways and Transportation Assets Advisors that is promoted by I Squared Capital.

Cube Highways is likely to acquire operating road assets in India along with other transportation and logistics assets including parking facilities.

PROFIT RISE FOR VRL LOGISTICS VRL Logistics has reported a 40 per cent rise in its net profit at `35.38 crore for the April-June quarter of financial year 2015-16. Total income from operations increased 9 per cent to `447.01 crore during the quarter under review, from `411.36 crore in the corresponding period a year ago.

Earnings per share were at `3.94 as compared to `2.94 in the first quarter of 2014-15. The segment revenue of the goods transport business increased to `339.69 crore, up 12.66 per cent, in the first quarter of 2015-16.

34

September 2015 I Cargo & Logistics

Pilot corridor for cargo movement soon

CLOSE TIES: Road transport ministers of Bangladesh, Bhutan, India and Nepal (BBIN) before the signing of BBIN Motor Vehicle Agreement (MVA) in Thimphu, Bhutan

I

ndia and Bangladesh will soon identify a corridor as pilot for direct movement of cargo between the two countries. The move is expected to boost the trade between two countries. Both the countries are expected to meet in September to identify the route that is expected to be between a point in West Bengal in India and Bangladesh.

The move is a plan under the agreement signed between Bangla-

desh, Bhutan, India and Nepal (BBIN) agreement for movement of all types of vehicles for seamless transport of cargo and passengers. Once it becomes successful, it could be replicated on other corridors. At present, the cargo coming from either side is transferred at the border to vehicles plying in that particular country. This pilot project will also help Nepal as the vehicles carrying cargo from Bangladesh can reach Nepal directly using Indian roads.

Single window clearance soon

T

here has been a demand for single window clearance in the country from last few years. This is going to be a reality very soon. To improve ease of doing business, the central government would soon set up a single window system for clearance of import and export documents. The Commerce and Industry Ministry is engaged with the Finance Ministry in this regard. Currently traders have to run from one department to other. Under the single window project, importers and exporters would have to lodge their clearance documents at a single point only.

The move will help traders as they will have to fill a single application and that will travel to the concerned departments for no-objection certificate. This will also help in reducing transactions cost of traders in facilitating global trade.

NEWS IN BRIEF

No to private firms by railways

LAND  KALE’S HELIOS GETS NEW TECH

I

ndian railway has refused to allow private firms to use its network for goods transportation but it will allow private freight terminals. “Rail operation on Indian railway network by private firms is not permissible. However, private firms can transport commodities using Indian Railway network in containers and can also develop freight terminals,” Minister of State for Railway Manoj Sinha said.

The permission to run container trains by private players is active since 2006 and so far 17 firms have taken li-

cense to run containers trains on Indian Railways of which 15 are active. Under the scheme the rakes are owned by Container Train Operators and railway has the exclusive right to haul the rakes on its networks. Private freight terminals are developed under Private Freight Terminal Policy of 2010 which was revised in 2015, minister said. So far 59 proposals of Private Freight Terminal (PFT) have been received out of which 24 terminals have been notified and 35 granted in-principle approval.

Kale Logistics Solutions has added automated load planning and route optimisation functionality to its webbased application HELIOS - Transportation and Fleet Management System. The functionality will help its clients optimise their vehicle utilisation, delivery time and customer satisfaction levels. The load planning module offers the transporter a comparison between order volume and vehicle resources available.

A plan gets created based on best recommended combination and the transporter chooses the most optimised plan for delivery. The route optimisation function within HELIOS helps plan the best route plan factoring the shortest route and en-route expense and prompts the transporter/driver of which route to take first on a multiple delivery route as in the case of a milk run. A completely automated load planning and route planning function in the TMS helps control the expenses, prevent delivery delays and avoid cumbersome co-ordination with customer and drivers.

SER

Transport Centre crying for better roads

T

ransport Centre, Punjabi Bagh of West Delhi is facing serious issues like bad roads, garbage overflowing onto busy Punjabi Bagh. Transport Centre’s roads has been obstructing traffic and creating unhygienic conditions for over a year now.

Transport Centre of Punjabi Bagh is the spine of the logistics industry from where all major logistics companies operate and transport goods pan-India. Because of illegal encroachments and bad road conditions, every user of the Transport Centre has hit a pothole or an open pit (approx 4-6 feet) at some point of time.

For most people it is an expensive annoyance. It has become a critical and relentless problem of the area now. As a result, residents commuting from the surround-

ing areas and people working in the vicinity are unable to reach their offices/homes timely and safely. Even as the local civic body’s plan to revamp the collection system has failed to take off, there are many damaged vehicles dumped and hazardous scrap (non-recyclable waste) lying on the roads and vacant plots which create difficulties for genuine road users and building owners. Delegates from Transport Centre Punjabi Bagh Welfare Society met with the Chairman of DDA (Delhi Development Authority) to seek a way out. DDA officials visited Transport Centre and also met with the delegation. Further, after the meeting, a MOM was supposed to be circulated but till date it is pending and no action has been taken yet.

FREIGHT

EARNINGS

UP

The South Eastern Railway (SER) has reported a near 9.5 per cent growth in freight earnings to `3,445 crore for the first four months (April to July) of financial year 2015-16.

Freight earnings stood at `3,145 crore (apprx) in the year-ago-period.

During the period, SER loaded 43.81 million tonnes (mt) of freight (as against 42.96 mt loaded during the corresponding period of last year). Freight loading in the April to July of FY-16 period grew by nearly 2 per cent; as against the comparative four months of last fiscal.

According to release issued by SER, the growth in freight loading came on the back of increased carrying of pig iron and finished steel, iron ore, food grains and fertilizers.

Cargo & Logistics I September 2015

35

NEWS IN BRIEF

India committed for Chabahar

INFRA  NO TO PRIVATISATION CHENNAI AIRPORT

OF

The Airports Authority of India (AAI) has decided not to privatise the operation and maintenance of the Chennai Airport. The bids for the same have been withdrawn. The AAI spent nearly `2,400 crore to construct a new terminal building and other aeronautical infrastructure at the airport. It then decided to undertake Operation, Management and Development of the airport through a public-private partnership on Operate, Manage, Develop and Transfer basis. It floated bids last December calling for Request for Qualification (RfQ) but the process was delayed.

Earlier, representatives from different companies visited the airport as part of the RFQ and the company was expected to invest `492 crore to modify the old international terminal building, provide connectivity tube to metro rail and upgrade the taxiways and runway. AAI has decided to undertake this itself.

NAVI MUMBAI AIRPORT TO BE OPERATIONAL BY 2019 The long-awaited Navi Mumbai International Airport will be operational by 2019, according to Devendra Fadnavis, Chief Minister of Maharashtra, who added that work would commence within six months. According to him, all formalities had been completed and the tender bid will be opened soon.

“Most of the permissions are in place and all development including that of the airstrip will get completed in the next three years.

We are confident that the first flight will start in 2019. This ambitious project will reduce the burden of the existing airport,” Fadnavis said.

The airport was cleared in 2007 but the plan had stuck midway after encountering problems in land acquisition and environmental clearances.

36

September 2015 I Cargo & Logistics

coast, the port would provide India a sea-land access route to Afghanistan bypassing Pakistan. India has pledged to invest about $85 million in developing the Port. Zarif also met Minister of External Affairs Sushma Swaraj and Minister of Shipping Nitin Gadkari seeking their help to expedite the development of the strategic port.

Zarif in a meeting with Gadkari urged India to develop an integrated ChabaSTRONG BONDING: The Minister of Foreign Affairs of the Islamic har Port which has a SpeRepublic of Iran, Mohammad Javad Zarif calling on the Prime Minister, Narendra Modi in New Delhi cial Economic Zone (SEZ). The Ministers of the two countries he Central Government has comdiscussed the need for early conclusion mitted to help Iran in developing of the India-Iran-Afghanistan Transit the Chabahar Port, which is expected Agreement, which will enable the poto boost trade ties between the two natential of Chabahar Port to be realised. tions. The port was discussed when IraGadkari said that once the port was nian Foreign Minister Javad Zarif had a developed it would provide a big boost meeting with Prime Minister Narendra to Indian industries as the distance beModi. The Prime Minister conveyed Intween Chabahar to Mundra, Kandla is dia’s commitment to work with Iran for less than Delhi and Mumbai. A MoU was the development of the Chabahar Port signed between India and Iran for develthat would have far-reaching benefits, opment and operation of two terminals not only for the people of India and Iran, at Chabahar Port on May 6, 2015 and but also for Afghanistan and entire Cendiscussions are on for concluding the tral Asia, according to a PMO statement. agreement between the organisations of Located on Iran’s south-eastern the two governments.

T

CIAL goes green

S

etting an example for every airport, the Cochin International Airport (CIAL) is soon going to become the first airport in India that’s fully powered by solar power. The solar plant has been built inside the airport premises with an aim to power all the electronic equipment and general infrastructure at the airport. With 100 per cent adaption of solar power, the Cochin International Airport has become the first ever, truly green airport in the country. CIAL has proposed to build the new plant based on the success of two smaller solar plants which were constructed about two years ago. The first one was a 100 KW peak plant which was then upgraded to 1000 KW peak capacity. CIAL authorities decided to allot about 45 acres of area next to the cargo complex at the airport.

The solar power plant comprises about 46000 solar panels that produce 52000 units of power on a daily basis. The move is expected to reduce the carbon emissions about 1.75 lakh MT over the next 25 years.

NEWS IN BRIEF

AWARDS

APPOINTMENTS

Cathay Pacific and Dragonair Cargo

C

athay Pacific and Dragonair Cargo teams in India held their annual Top Agents Award Dinners across the months of July and August 2015 in Mumbai, Delhi, Chennai, Hyderabad and Bengaluru with more than 80 guests in attendance at each event. The award functions were held to honour and thank the stalwarts of the cargo industry for their support to Cathay Pacific and Dragonair Cargo for 2014. Charlie Stewart-Cox (General Manager - South Asia, Middle East and Africa), Anand Yedery, Regional Cargo Manager - South Asia, Middle East and Africa, along with the Cargo Managers for each port, presided over the presentation of the awards. Trophies and certificates were presented to the top ten cargo agents for their contribution to the airlines’ revenue as well as to the agencies that support both airlines in their operations at the various airports.

DB Schenker DB Schenker has appointed Oliver Bohm as the new CEO of Schenker India Pvt. Ltd, the transport and logistics division of Deutsche Bahn AG in Germany. Oliver Bohm has assumed the position on August 1, 2015, and replaced Reiner Allgeier who is taking another appointment within the DB Schenker network. In his new assignment in India, Bohm will be responsible for the overall country management and growth of the Indian subsidiary of global logistics giant DB Schenker.

PRODUCT

Now, a drone cargo ship Rolls-Royce is working on autonomous cargo ships that promise to transform the global shipping industry as the company is working on unmanned cargo ship

N

ew innovations and technologies are transforming the world.

To reduce operational costs, minimise emissions and enhance the earning capability of vessels, experts at Rolls-Royce are hoping to take an unmanned cargo ship prototype live in coming years.

Rolls-Royce’s unmanned ships will be able to store more cargo and would use 12 to 15 per cent less fuel. Unloaded weight could also fall by as much as 5 per cent.

The Rolls-Royce Blue Ocean team is responsible for research and development of future maritime technologies and focuses on disruptive game-changing innovations. The team has developed a range of autonomous ship concepts as well as innovative designs for various ship types. The prototype, a computer-simulated model, is already running at the company’s Norwegian office.

Rolls-Royce is leading a new €6.6 million project that could pave the way for autonomous ships. The Advanced Autonomous Waterborne Applications Initiative will produce the specification and preliminary designs for the next generation of advanced ship solutions. The project is funded by Tekes (Finnish Funding Agency for Technology and Innovation) and will bring together universities, ship designers, equipment manufacturers, and classification societies to explore the economic, social, legal, regulatory

38

September 2015 I Cargo & Logistics

and technological factors which need to be addressed to make autonomous ships a reality. The technological work stream, which will be led by Rolls-Royce, will encompass the implications of remote control and autonomy of ships for propulsion, deck machinery and automation and control, using, where possible, established technology for rapid commercialisation. Rauli Hulkkonen, Tekes, Chief Advisor, said: “This project is a fantastic opportunity to establish the Finnish maritime cluster as the world leader in maritime remote control technology.”

Esa Jokioinen, Rolls-Royce, Head of Blue Ocean Team, said: “Rolls-Royce has extensive experience of successfully coordi-

nating multi-disciplinary teams developing complex technologies. We bring a world leading range of capabilities in the marine market to the project including vessel design, the integration of complex systems and the supply and support of power and propulsion equipment. We are excited to be taking the first concrete steps towards making remote controlled and autonomous ship applications a reality.”

STATS

TRAFFICHANDLED HANDLEDAT ATMAJOR MAJORPORTS PORTS TRAFFIC (DURING APRIL TO JULY, 2015* VIS-A-VIS APRIL TO JULY, 2014)

(*) TENTATIVE

(IN ' 000 TONNES)

PORTS

APRIL TO JULY

% VARIATION

TRAFFIC

AGAINST PREV.

2015* 2

1 KOLKATA Kolkata Dock System

2014 3

YEAR TRAFFIC 4

5198

4510

15.25

Haldia Dock Complex

11636

9188

TOTAL: KOLKATA

16834

13698

26.64 22.89

PARADIP

24335

22898

6.28

VISAKHAPATNAM

18467

20638

-10.52

KAMARAJAR (ENNORE)

10788

9766

10.46

CHENNAI

17816

17685

0.74

V.O. CHIDAMBARANAR

13065

10242

27.56

7421

7168

3.53

11685

12409

-5.83

5362

4343

23.46

MUMBAI

20800

19276

7.91

JNPT

22056

21742

1.44

KANDLA

33159

30856

7.46

201788

190721

5.80

COCHIN NEW MANGALORE MORMUGAO

TOTAL:

Source:INDIAN PORTS ASSOCIATION

Cargo and Logistics

{ SAVE `432/FOR 36 ISSUES

{

C&L

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

INDIAN PORTS ASSOCIATION

TRAFFIC HANDLED AT MAJOR PORTS TRAFFIC HANDLED AT MAJOR PORTS

(DURING APRIL TO VIS-A-VIS APRIL TO JULY’2014) (DURING APRIL TOJULY’2015* JULY'2015* VIS-A-VIS APRIL TO JULY'2014) (*)

TENTATIVE

(IN '000 TONNES)

PORT

TRAFFIC PERIOD

P.O.L.

IRON ORE

FERTILIZER FIN. RAW

COAL CONTAINER THERMAL COKING TONNAGE TEUs

OTHER CARGO

TOTAL

% VAR. AGAINST 2014-15

KOLKATA Kolkata Dock System

Haldia Dock Complex TOTAL: KOLKATA

PARADIP

VISAKHAPATNAM

KAMARAJAR(ENNORE)

CHENNAI

V.O.CHIDAMBARANAR

COCHIN

NEW MANGALORE

MORMUGAO

MUMBAI

J.N.P.T.

KANDLA

ALL PORTS

TRF APRIL-JULY'2015

195

6

14

23

-

167

2836

178

1957

5198

TRF APRIL-JULY'2014

206

50

24

37

-

6

2547

163

1640

4510

TRF APRIL-JULY'2015

2489

460

92

114

651

2294

424

28

5112

11636

TRF APRIL-JULY'2014

2058

469

73

182

428

1642

592

37

3744

9188

TRF APRIL-JULY'2015

2684

466

106

137

651

2461

3260

206

7069

16834

TRF APRIL-JULY'2014

2264

519

97

219

428

1648

3139

200

5384

13698

TRF APRIL-JULY'2015

6123

243

-

1309

10241

2958

57

2

3404

24335

TRF APRIL-JULY'2014

6125

682

51

1614

8859

2648

18

1

2901

22898

TRF APRIL-JULY'2015

5837

1476

650

310

1051

1577

1462

86

6104

18467

TRF APRIL-JULY'2014

4951

3942

538

320

813

1920

1604

89

6550

20638

TRF APRIL-JULY'2015

1272

-

-

-

8695

-

-

-

821

10788

TRF APRIL-JULY'2014

894

-

-

-

7965

141

-

-

766

9766

TRF APRIL-JULY'2015

4611

-

64

83

-

-

10424

541

2634

17816

TRF APRIL-JULY'2014

4422

39

34

96

-

-

10033

520

3061

17685

TRF APRIL-JULY'2015

205

71

208

331

3638

-

4115

206

4497

13065

TRF APRIL-JULY'2014

212

-

163

265

2554

-

3540

179

3508

10242

TRF APRIL-JULY'2015

4720

-

-

98

-

-

1814

129

789

7421

TRF APRIL-JULY'2014

4568

-

54

134

48

-

1750

120

614

7168

TRF APRIL-JULY'2015

8011

-

238

49

1217

910

403

27

857

11685

TRF APRIL-JULY'2014

6954

905

224

37

968

2284

347

23

690

12409

TRF APRIL-JULY'2015

170

260

77

-

405

2616

85

7

1749

5362

TRF APRIL-JULY'2014

194

228

47

-

442

2009

88

6

1335

4343

TRF APRIL-JULY'2015

11238

-

25

92

1932

-

144

12

7369

20800

TRF APRIL-JULY'2014

11474

-

40

90

1520

-

153

17

5999

19276

TRF APRIL-JULY'2015

1832

-

-

-

-

-

19442

1507

782

22056

TRF APRIL-JULY'2014

1253

-

-

-

-

-

19549

1489

940

21742

TRF APRIL-JULY'2015

18559

351

1628

83

4716

43

-

-

7779

33159

TRF APRIL-JULY'2014

18219

323

992

440

2697

97

-

-

8088

30856

TRF APRIL-JULY'2015

65262

2867

2996

2492

32546

10565

41206

2723

43854

201788

TRF APRIL-JULY'2014

61530

6638

2240

3215

26294

10747

40221

2644

39836

190721

6.07

-56.81

33.75

-22.49

23.78

-1.69

2.45

2.99

10.09

5.80

% Variation from previous year

15.25

26.64

22.89

6.28

-10.52

10.46

0.74

27.56

3.53

-5.83

23.46

7.91

1.44

7.46

5.80

Source:INDIAN PORTS ASSOCIATION

40

September 2015 I Cargo & Logistics

STATS

INTERNATIONAL FREIGHT AIRPORT

SL. NO.

JUNE 2015

FREIGHT (IN TONNES) For the month For the period April - June JUNE % % 2015-16 2014-15 2014 Change Change

(A) 18 INTERNATIONAL AIRPORTS 1

CHENNAI

20229

18794

7.6

56897

56543

0.6

2

KOLKATA

4306

4434

-2.9

11869

11834

0.3

3

AHMEDABAD

2073

1405

47.5

5551

4177

32.9

4

GOA

60

43

39.5

238

255

-6.7

5

TRIVANDRUM

2157

3255

-33.7

7006

7476

-6.3

6

CALICUT

1055

1970

-46.4

4407

5667

-22.2

7

LUCKNOW

261

172

51.7

746

414

80.2

8

GUWAHATI

9

JAIPUR

10

SRINAGAR

11

BHUBANESWAR

0

0

-

0

0

-

12

COIMBATORE

90

81

11.1

282

228

23.7

79

18

338.9

227

59

284.7

0

3

-100.0

1

7

-85.7

25

52

-51.9

223

117

90.6

0

0

-

0

0

-

13

MANGALORE

14

TRICHY

514

337

52.5

1730

1133

52.7

15

AMRITSAR

37

44

-15.9

91

86

5.8

16

VARANASI

0

0

-

2

0

-

17

PORTBLAIR

0

0

0

IMPHAL

0 30886

0 30608

-

0

18

0 87996

-

0.9

0 89270

1.4 16.7

TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

40944

35879

14.1

125291

107345

20

MUMBAI (MIAL)

42908

39552

8.5

127809

118667

7.7

21

BANGALORE (BIAL)

14316

14024

2.1

42845

40045

7.0

22

HYDERABAD (GHIAL)

5210

4912

6.1

15386

13968

10.2

23

COCHIN(CIAL)

5757

5713

0.8

16602

16158

2.7

24

NAGPUR (MIPL)

31

34

-8.8

109

97

12.4

109166

100114

9.0

328042

296280

10.7

0

0

-

0

0

-

TOTAL (C) 8 CUSTOM AIRPORTS 25

PUNE

26

CHANDIGARH

0

0

-

0

0

-

27

PATNA

0

0

-

0

0

-

28

VISAKHAPATNAM

2

0

-

10

0

-

29

BAGDOGRA

0

0

-

0

0

-

30

MADURAI

2

0

-

2

0

-

31

AURANGABAD

0

0

-

0

0

-

32

GAYA

0

0

-

0

0

-

TOTAL

4

0

-

12

0

-

(D) 45 DOMESTIC AIRPORTS

0

0

-

0

0

-

(E) OTHER AIRPORTS

0

0

-

0

0

-

140056

130722

7.1

417324

384276

8.6

GRAND TOTAL (A+B+C+D+E)

Source: AIRPORTS AUTHORITY OF INDIA

Cargo & Logistics I September 2015

41

STATS DOMESTIC FREIGHT DOMESTIC FREIGHT

ANNEXURE-IVB

ANNEXURE-IVC

FREIGHT (INT'L+DOM.) INT‘L & DOMESTIC FREIGHT

FREIGHT (IN TONNES) FREIGHT (IN TONNES) For the month AIRPORT For the period April - June For the month For the period April - June SL. NO. JUNE JUNE % % JUNE JUNE % % 2015-16 2014-15 2015-16 2014-15 2015 2014 Change Change 2015 2014 Change Change (A) 18 INTERNATIONAL AIRPORTS (A) 18 INTERNATIONAL AIRPORTS 1 7.3 3.5 CHENNAI 27115 25277 78034 75380 1 CHENNAI 6886 6483 6.2 21137 18837 12.2 2 -3.3 0.9 KOLKATA 11737 12138 34707 34400 2 KOLKATA 7431 7704 -3.5 22838 22566 1.2 3 22.6 18.7 AHMEDABAD 5911 4822 16748 14108 3 AHMEDABAD 3838 3417 12.3 11197 9931 12.7 4 8.6 22.6 GOA 341 314 1151 939 4 GOA 281 271 3.7 913 684 33.5 5 -33.8 -7.0 TRIVANDRUM 2218 3349 7270 7814 5 TRIVANDRUM 61 94 -35.1 264 338 -21.9 6 -45.1 -20.9 CALICUT 1087 1979 4501 5690 6 CALICUT 32 9 255.6 94 23 308.7 7 16.7 23.2 LUCKNOW 468 401 1366 1109 7 LUCKNOW 207 229 -9.6 620 695 -10.8 8 117.9 86.3 GUWAHATI 1364 626 3703 1988 8 GUWAHATI 1364 623 118.9 3702 1981 86.9 9 -1.1 158.3 JAIPUR 186 188 1077 417 9 JAIPUR 161 136 18.4 854 300 184.7 10 -49.0 -24.5 SRINAGAR 508 997 1319 1748 10 SRINAGAR 508 997 -49.0 1319 1748 -24.5 11 15.0 20.2 BHUBANESWAR 505 439 1604 1334 11 BHUBANESWAR 505 439 15.0 1604 1334 20.2 12 -6.7 -2.7 COIMBATORE 650 697 1963 2017 12 COIMBATORE 560 616 -9.1 1681 1789 -6.0 13 197.1 139.5 MANGALORE 104 35 285 119 13 MANGALORE 25 17 47.1 58 60 -3.3 14 52.5 52.7 TRICHY 514 337 1730 1133 14 TRICHY 0 0 0 0 15 -26.1 -3.6 AMRITSAR 51 69 135 140 15 AMRITSAR 14 25 -44.0 44 54 -18.5 16 18.4 -13.0 VARANASI 58 49 187 215 16 VARANASI 58 49 18.4 185 215 -14.0 17 43.5 35.4 PORTBLAIR 277 193 853 630 17 PORTBLAIR 277 193 43.5 853 630 35.4 18 -16.4 -3.2 IMPHAL 351 420 1068 1103 18 -16.4 -3.2 IMPHAL 351 420 1068 1103 53445 52330 2.1 157701 150284 4.9 TOTAL 22559 21722 3.9 68431 62288 9.9 TOTAL (B) 6 JV INTERNATIONAL AIRPORTS (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 10.6 14.2 63539 57447 194698 170422 19 DELHI (DIAL) 22595 21568 4.8 69407 63077 10.0 20 MUMBAI (MIAL) 4.5 6.1 59757 57157 179299 168974 20 MUMBAI (MIAL) 16849 17605 -4.3 51490 50307 2.4 21 BANGALORE (BIAL) 1.8 8.1 23551 23137 70810 65533 21 BANGALORE (BIAL) 9235 9113 1.3 27965 25488 9.7 22 HYDERABAD (GHIAL) 11.0 14.9 9358 8432 27570 24005 22 HYDERABAD (GHIAL) 4148 3520 17.8 12184 10037 21.4 23 COCHIN(CIAL) 1.1 3.3 6669 6596 19502 18886 23 COCHIN(CIAL) 912 883 3.3 2900 2728 6.3 24 NAGPUR (MIPL) 24.2 20.1 605 487 1801 1500 24 NAGPUR (MIPL) 574 453 26.7 1692 1403 20.6 163479 153256 6.7 493680 449320 9.9 TOTAL 54313 53142 2.2 165638 153040 8.2 TOTAL (C) 8 CUSTOM AIRPORTS (C) 8 CUSTOM AIRPORTS 25 2.0 5.4 PUNE 2294 2250 6801 6453 25 2294 2250 2.0 6801 6453 5.4 PUNE 26 16.5 5.6 CHANDIGARH 451 387 1378 1305 26 451 387 16.5 1378 1305 5.6 CHANDIGARH 27 -3.8 -2.3 PATNA 460 478 1336 1367 27 460 478 -3.8 1336 1367 -2.3 PATNA 28 -17.3 -37.0 VISAKHAPATNAM 105 127 294 467 28 103 127 -18.9 284 467 -39.2 VISAKHAPATNAM 29 -0.9 -24.4 BAGDOGRA 210 212 471 623 29 210 212 -0.9 471 623 -24.4 BAGDOGRA 30 -43.4 -22.4 MADURAI 73 129 222 286 30 71 129 -45.0 220 286 -23.1 MADURAI 31 16.3 20.2 AURANGABAD 93 80 316 263 31 93 80 16.3 316 263 20.2 AURANGABAD 32 GAYA 0 0 0 0 32 0 0 0 0 GAYA 3686 3663 0.6 10818 10764 0.5 TOTAL 3682 3663 0.5 10806 10764 0.4 TOTAL (D) 45 DOMESTIC AIRPORTS (D) 45 DOMESTIC AIRPORTS 33 -8.8 -1.9 INDORE 485 532 1572 1603 33 485 532 -8.8 1572 1603 -1.9 INDORE 34 18.9 28.3 JAMMU 145 122 489 381 34 145 122 18.9 489 381 28.3 JAMMU 35 12.5 17.6 RAIPUR 361 321 1055 897 35 361 321 12.5 1055 897 17.6 RAIPUR 36 -4.4 -9.9 AGARTALA 543 568 1452 1611 36 543 568 -4.4 1452 1611 -9.9 AGARTALA 37 -3.8 -11.5 VADODARA 200 208 553 625 37 200 208 -3.8 553 625 -11.5 VADODARA 38 9.4 22.4 RANCHI 304 278 968 791 38 304 278 9.4 968 791 22.4 RANCHI 39 UDAIPUR 3 0 12 0 39 3 0 12 0 UDAIPUR 40 15.1 32.2 BHOPAL 99 86 279 211 40 99 86 15.1 279 211 32.2 BHOPAL 41 -19.6 -10.5 LEH 82 102 434 485 41 82 102 -19.6 434 485 -10.5 LEH 42 DEHRADUN 10 0 30 0 42 10 0 30 0 DEHRADUN 43 18.2 29.0 RAJKOT 13 11 40 31 43 13 11 18.2 40 31 29.0 RAJKOT 44 -13.0 81.7 DIBRUGARH 20 23 109 60 44 20 23 -13.0 109 60 81.7 DIBRUGARH 45 -100.0 -33.3 JODHPUR 0 2 2 3 45 0 2 -100.0 2 3 -33.3 JODHPUR 46 TIRUPATI 0 0 0 0 46 0 0 0 0 TIRUPATI 47 VIJAYAWADA 0 0 0 0 47 0 0 0 0 VIJAYAWADA 48 SILCHAR -7.7 -30.4 24 26 64 92 48 24 26 -7.7 64 92 -30.4 SILCHAR 49 LENGPUI(AIZWAL) -9.5 7.5 19 21 72 67 49 19 21 -9.5 72 67 7.5 LENGPUI(AIZWAL) 50 JUHU 3.3 3.3 31 30 94 91 50 31 30 3.3 94 91 3.3 JUHU 51 RAJAHMUNDRY 0 0 1 0 51 0 0 1 0 RAJAHMUNDRY 52 BHUJ 50.0 2 0 6 4 52 2 0 6 4 50.0 BHUJ 53 SURAT 0 0 0 0 53 0 0 0 0 SURAT 54 JABALPUR 0 0 0 0 54 0 0 0 0 JABALPUR 55 BELGAUM 0 0 0 0 55 0 0 0 0 BELGAUM 56 TUTICORIN 100.0 22.2 4 2 11 9 56 4 2 100.0 11 9 22.2 TUTICORIN 57 JAMNAGAR -50.0 -56.8 1 2 16 37 57 1 2 -50.0 16 37 -56.8 JAMNAGAR 58 BHAVNAGAR 0 0 1 0 58 0 0 1 0 BHAVNAGAR 59 KHAJURAHO 0 0 0 0 59 0 0 0 0 KHAJURAHO 60 GUGGAL(KANGRA) 0 0 0 0 60 0 0 0 0 GUGGAL(KANGRA) 61 ALLAHABAD 0 0 0 0 61 0 0 0 0 ALLAHABAD 62 DIMAPUR 266.7 228.1 33 9 105 32 62 33 9 266.7 105 32 228.1 DIMAPUR 63 JORHAT 0.0 0 0 2 2 63 0 0 2 2 0.0 JORHAT 64 HUBLI 0 0 0 0 64 0 0 0 0 HUBLI 65 AGATTI 0 0 0 0 65 0 0 0 0 AGATTI 66 DIU 0 0 0 0 66 0 0 0 0 DIU 67 GORKHPUR 0 0 0 0 67 0 0 0 0 GORKHPUR 68 PORBANDAR 0 0 0 0 68 0 0 0 0 PORBANDAR 69 AGRA 0 0 0 0 69 0 0 0 0 AGRA 70 BHUNTAR 0 0 0 0 70 0 0 0 0 BHUNTAR 71 BARAPANI (SHILLONG) 71 0 0 0 0 0 0 0 0 BARAPANI (SHILLONG) 72 0 0 0 0 72 GWALIOR GWALIOR 0 0 0 0 73 0 0 0 0 MYSORE 73 MYSORE 0 0 0 0 74 0 0 0 0 LAKHIMPUR (LILABARI) 74 LAKHIMPUR (LILABARI) 0 0 0 0 75 0 0 0 0 PANTNAGAR 75 PANTNAGAR 0 0 0 0 76 0 0 0 0 SHOLAPUR 76 SHOLAPUR 0 0 0 0 77 0 0 0 0 KANPUR(Chakeri) 77 KANPUR(Chakeri) 0 0 0 0 (D) 45 DOMESTIC AIRPORTS 2379 2343 1.5 7367 7032 4.8 (D) 45 DOMESTIC AIRPORTS 2379 2343 1.5 7367 7032 4.8 (E) OTHER AIRPORTS 0 0 0 0 - (E) OTHER AIRPORTS 0 0 0 0 GRAND TOTAL (A+B+C+D+E) 82933 80870 2.6 252242 233124 8.2 GRAND TOTAL (A+B+C+D+E) 222989 211592 5.4 669566 617400 8.4

SL. NO.

42

AIRPORT

September 2015 I Cargo & Logistics

Source: AIRPORTS AUTHORITY OF INDIA

STATS

REGIONWISE TRENDS IN AIR TRAFFIC REGIONWISE TRENDS IN AIR TRAFFIC JUNE 2015 AND APRIL2015-16 JUNE 2015 AND APRIL- JUNEJUNE 2015-16 INTERNATIONAL REGIONS

JUNE 2015

2014

% CHANGE

ANNEXURE-V

DOMESTIC

APRIL -JUNE 2015-16

2014-15

% CHANGE

TOTAL

JUNE APRIL -JUNE REGIONWISE %TRENDS CHANGE IN AIR TRAFFIC 2015 JUNE 2014 2015-16 2014-15 2015 AND APRIL- JUNE 2015-16

% CHANGE

JUNE 2015

2014

% CHANGE

ANNEXURE-V APRIL -JUNE

2015-16

2014-15

% CHANGE

AIRCRAFT MOVEMENTS(IN NUMBERS)

EASTERN REGIONS WESTERN

1626

1313

23.8 5190 INTERNATIONAL

3987

30.2

7406 JUNE

6937

SOUTHERN

12524 2015

NORTHERN

7713

7649

0.8

23474

23153

1.4

NORTH EAST EASTERN TOTAL WESTERN

36 1626 29305 7406

36 1313 27526 6937

0.0 23.8 6.5 6.8

120 5190 89255 22802

104 3987 83443 21331

15.4 30.2 7.0 6.9

6.8 22802 -JUNE 21331 6.9 APRIL % CHANGE % CHANGE 11591 8.0 2015-16 37669 2014-15 34868 8.0 2014

11747

11482

32428 JUNE

29806

2.3 36587 DOMESTIC

4691 11747 112318 32428

4039 11482 103596 29806

16.1 2.3 8.4 8.8

13755 36587 338533 98649

12524

11591

8.0

37669

34868

8.0

32735

EASTERN NORTHERN

180163 7713

153115 7649

17.7 0.8

550515 23474

442525 23153

24.4 1.4

1417661 30717

WESTERN NORTH EAST

1119756 36

1083895 36

3.3 0.0

3463031 120

3255853 104

6.4 15.4

3837866 4691

3277933 4039

SOUTHERN TOTAL

1839915 29305

1704270 27526

8.0 6.5

5671038 89255

5134957 83443

10.4 7.0

3508619 112318

2924070 103596

NORTHERN

1212800

1193749

1.6

3590091

3447932

4.1

3912427

NORTH EAST EASTERN TOTAL WESTERN

1699 180163 4354333 1119756

1971 153115 4137000 1083895

-13.8 17.7 5.3 3.3

6023 550515 13280698 3463031

4246 442525 12285513 3255853

41.9 24.4 8.1 6.4

436255 1417661 13112828 3837866

SOUTHERN

1839915

1704270

8.0

5671038

5134957

10.4

3508619

FREIGHT (IN 2924070 20.0TONNES) 10938802

EASTERN NORTHERN

4306 1212800

4434 1193749

-2.9 1.6

11869 3590091

11834 3447932

0.3 4.1

9548 3912427

9625 3464578

-0.8 12.9

29125 11647178

45072 1699

41034 1971

9.8 -13.8

133707 6023

123196 4246

8.5 41.9

24760 436255

24945 366803

-0.7 18.9

74970 1275854

SOUTHERN TOTAL

49411 4354333

49104 4137000

0.6 5.3

145394 13280698

141277 12285513

2.9 8.1

22037 13112828

20993 11308141

5.0 16.0

NORTHERN

41267

36147

14.2

126353

107962

17.0

24234

NORTH EAST EASTERN TOTAL WESTERN

43060 139207 45072

44343 136543 41034

-100.0 -2.9 2.0 9.8

118691 417324 133707

118347 384276 123196

-85.7 0.3 8.6 8.5

2354 9548 82933 24760

1690 9625 80870 24945

39.3 -0.8 2.6 -0.7

SOUTHERN

49411

49104

0.6

145394

141277

2.9

22037

20993

5.0

NORTHERN

41267

36147

14.2

126353

107962

17.0

NORTH EAST TOTAL

0 139207

3 136543

-100.0 2.0

1 417324

7 384276

-85.7 8.6

JUNE 2015

8.3 4.0 7.7 10.0

13373

12795

39834 JUNE

36743

45259 2015

4.5TOTAL 41777

8.4 % CHANGE 41826 8.2 2014 7.7

114748

108275

6.0

4727 13373 141623 39834

4075 12795 131122 36743

16.0 4.5 8.0 8.4

13875 41777 427788 121451

12799 39160 397880 111011

8.4 6.7 7.5 9.4

7.1

45259

41826

8.2

135937

126635

7.3

16.3 7.2

1597824 38430

1427872 35683

11.9 7.7

4929003 114748

4206454 108275

17.2 6.0

17.1 16.1

12106440 13755

10021043 12695

20.8 8.3

4957622 4727

4361828 4075

13.7 16.0

15569471 13875

13276896 12799

17.3 8.4

20.0 8.4

10938802 338533

8808078 314437

24.2 7.7

5348534 141623

4628340 131122

15.6 8.0

16609840 427788

13943035 397880

19.1 7.5

3464578 12.9 11647178 PASSENGERS (IN NUMBER)

10088730

15.4

5125227

4658327

10.0

15237269

13536662

12.6

1089636 3763929 33771416 10021043

17.1 16.3 19.5 20.8

437954 1597824 17467161 4957622

368774 1427872 15445141 4361828

18.8 11.9 13.1 13.7

1281877 4929003 53627460 15569471

1093882 4206454 46056929 13276896

17.2 16.4 17.3

8808078

24.2

5348534

4628340

15.6

16609840

13943035

19.1

28208 10088730

3.3 15.4

13854 5125227

14059 4658327

-1.5 10.0

40994 15237269

40042 13536662

2.4 12.6

71643 1089636

4.6 17.1

69832 437954

65979 368774

5.8 18.8

208677 1281877

194839 1093882

7.1 17.2

66799 40346762

60062 33771416

11.2 19.5

71448 17467161

70097 15445141

1.9 13.1

212193 53627460

201339 46056929

5.4 16.4

23617 FREIGHT (IN2.6TONNES)74774

68263

9.5

65501

59764

9.6

201127

176225

14.1

6574 29125 252242 74970

4948 28208 233124 71643

32.9 3.3 8.2 4.6

2354 13854 222989 69832

1693 14059 211592 65979

39.0 -1.5 5.4 5.8

6575 40994 669566 208677

4955 40042 617400 194839

32.7 2.4 8.4 7.1

66799

60062

11.2

71448

70097

1.9

212193

201339

5.4

9.5

65501

59764

9.6

201127

176225

14.1

32.9 8.2

2354 222989

1693 211592

39.0 5.4

6575 669566

4955 617400

32.7 8.4

18.9 11.2 16.0 17.1

1275854 4378488 40346762 12106440

REGIONWISE TRAFFIC 24234 23617 SHARE 2.6 IN AIR 74774 68263

2015-16 4948 2354JUNE 2015 1690 AND APRIL39.3 JUNE6574 82933 80870 2.6 252242 233124 DOMESTIC

5.55

4.77 INTERNATIONAL 5.81

25.27 JUNE

25.20

SOUTHERN

42.74 2015

2014 42.11

42.20 2015-16

2014-15 41.79

NORTHERN

26.32

27.79

26.30

27.75

NORTH EAST EASTERN TOTAL WESTERN

0.12 5.55 100.00 25.27

0.13 4.77 100.00 25.20

0.13 5.81 100.00 25.55

0.12 4.78 100.00 25.56

4.18 10.46 100.00 28.87

25.55 APRIL -JUNE

APRIL -JUNE

2014 2015 2015-16 AIRCRAFT MOVEMENTS (SHARE IN PER CENTAGE)

EASTERN REGIONS WESTERN

135937 2015-16

35683

91767

11.2 9.6

JUNE

2014-15

6.7

9.4 % CHANGE 126635 7.3 2014-15

38430

REGIONWISE SHARE IN AIR TRAFFIC REGIONWISE SHARE IN AIR TRAFFIC JUNE 2015 AND APRIL- JUNE 2015-16 JUNE 2015 AND APRIL- JUNE 2015-16 2015-16

39160

121451 APRIL -JUNE 111011

3763929 85122

366803 1274757 11308141 3277933

APRIL -JUNE

2014

4.0

4378488 91274

1274757 28034

INTERNATIONAL

REGIONS

12695 35173 314437 89680

PASSENGERS8.3 (IN NUMBER) 30235 98268

SOUTHERN

WESTERN NORTH EAST

35173

8.8 98649 -JUNE89680 10.0 APRIL % CHANGE % CHANGE 32735 2014 30235 8.3 2015-16 98268 2014-15 91767 7.1 2015 NUMBERS) 30717 AIRCRAFT 28034 MOVEMENTS(IN 9.6 91274 85122 7.2

TOTAL

JUNE

2014-15

2015

APRIL -JUNE 2014

2015-16

2014-15

4.78

10.46

11.08 DOMESTIC

10.81

11.19

9.44

9.76

25.56

28.87 JUNE

28.77

29.14 APRIL -JUNE

28.52

28.13 JUNE

28.02

2014-15 29.18

31.96 2015

2014 31.90

31.78 2015-16

2014-15 31.83

27.07

27.14

27.21

26.82

27.21

4.04 11.19 100.00 28.52

3.34 9.44 100.00 28.13

3.11 9.76 100.00 28.02

3.24 9.77 100.00 28.39

3.22 9.84 100.00 27.90 31.83

2014 29.14 29.03 29.19 2015 2015-16 AIRCRAFT CENTAGE) 27.35 MOVEMENTS 27.06(SHARE IN PER26.96 3.90 11.08 100.00 28.77

4.06 10.81 100.00 29.14

TOTAL

9.77

9.84

28.39 APRIL -JUNE

27.90

SOUTHERN

42.74

42.11

42.20

41.79

PASSENGERS (SHARE 29.14 29.03 29.19 IN PER CENTAGE)

29.18

31.96

31.90

31.78

EASTERN NORTHERN

4.14 26.32

3.70 27.79

4.15 26.30

3.60 27.75

10.81 27.35

11.27 27.06

10.85 26.96

11.15 27.07

9.15 27.14

9.24 27.21

9.19 26.82

9.13 27.21

WESTERN NORTH EAST

25.72 0.12

26.20 0.13

26.08 0.13

26.50 0.12

29.27 4.18

28.99 3.90

30.01 4.06

29.67 4.04

28.38 3.34

28.24 3.11

29.03 3.24

28.83 3.22

SOUTHERN TOTAL

42.25 100.00

41.20 100.00

42.70 100.00

41.80 100.00

26.76 100.00

25.86 100.00

27.11 100.00

26.08 100.00

30.62 100.00

29.97 100.00

30.97 100.00

30.27 100.00

NORTHERN

27.85

28.86

27.03

28.07

29.84 28.87 30.64 IN PER CENTAGE) PASSENGERS (SHARE

29.87

29.34

30.16

28.41

29.39

NORTH EAST EASTERN TOTAL WESTERN

0.04 4.14 100.00 25.72

0.05 3.70 100.00 26.20

0.05 4.15 100.00 26.08

0.03 3.60 100.00 26.50

3.33 10.81 100.00 29.27

3.16 10.85 100.00 30.01

3.23 11.15 100.00 29.67

2.51 9.15 100.00 28.38

2.39 9.24 100.00 28.24

2.39 9.19 100.00 29.03

2.38 9.13 100.00 28.83

SOUTHERN

42.25

41.20

42.70

41.80

26.76 FREIGHT (SHARE 27.11 25.86 IN PER CENTAGE)

26.08

30.62

29.97

30.97

30.27

EASTERN NORTHERN

3.09 27.85

3.25 28.86

2.84 27.03

3.08 28.07

11.51 29.84

11.90 30.64

11.55 28.87

12.10 29.87

6.21 29.34

6.64 30.16

6.12 28.41

6.49 29.39

WESTERN NORTH EAST

32.38 0.04

30.05 0.05

32.04 0.05

32.06 0.03

29.86 3.33

30.85 3.24

29.72 3.16

30.73 3.23

31.32 2.51

31.18 2.39

31.17 2.39

31.56 2.38

SOUTHERN TOTAL

35.49 100.00

35.96 100.00

34.84 100.00

36.76 100.00

26.57 100.00

25.96 100.00

26.48 100.00

25.76 100.00

32.04 100.00

33.13 100.00

31.69 100.00

32.61 100.00

NORTHERN

29.64

26.47

30.28

28.09

29.22 FREIGHT (SHARE 29.64 29.20 IN PER CENTAGE)

29.28

29.37

28.24

30.04

28.54

NORTH EAST EASTERN TOTAL WESTERN

0.00 3.09 100.00 32.38

0.00 3.25 100.00 30.05

0.00 2.84 100.00 32.04

0.00 3.08 100.00 32.06

2.84 11.51 100.00 29.86

2.09 11.90 100.00 30.85

2.61 11.55 100.00 29.72

2.12 12.10 100.00 30.73

1.06 6.21 100.00 31.32

0.80 6.64 100.00 31.18

0.98 6.12 100.00 31.17

0.80 6.49 100.00 31.56

SOUTHERN

35.49

35.96

34.84

36.76

26.57

25.96

26.48

25.76

32.04

33.13

31.69

32.61

NORTHERN

29.64

26.47

30.28

28.09

29.22

29.20

29.64

29.28

29.37

28.24

30.04

28.54

NORTH EAST TOTAL

0.00 100.00

0.00 100.00

0.00 100.00

0.00 100.00

2.84 100.00

2.09 100.00

2.61 100.00

2.12 100.00

1.06 100.00

0.80 100.00

0.98 100.00

0.80 100.00

3.24 11.27 100.00 28.99

Source: AIRPORTS AUTHORITY OF INDIA

44

September 2015 I Cargo & Logistics

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’ foray into logistics industry is not just for creating another logistics company. It is a lifetime commitment to excellence and trust that our customers can bank upon. Our infrastructural strength supports in feeding arround two thousand destinations in India. We are soundly backed by our customer support and professional staff members with full fleet of various vehicles.

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

“This industry never lets you become complacent” With more than two decades of experience, Shumita Balodi has made a name for herself in the cargo business. As Proprietress of Kansas International, she is well aware that to remain ahead in the tough competition, the ever-demanding customer cannot be ignored.

Cargo is essentially a male-dominated industry. How did you find yourself in it?

Females have proven themselves in every other field, so cargo is no exception. If given equal opportunities at education and treated at par, females can perform better and we can see so many examples around us. Well-qualified and dedicated women are now working in various sections of cargo industry. I don’t feel any different from any other female working in different industries. We have to face the same challenges. Over time, a lot of changes have taken place in this industry — fortunately for the better.

I am glad that now many females have high positions in management and are handling operations as well as office management with ease.

How many years have you been with the cargo industry and how has the journey been this far?

It’s nearly 24 years.

I practically learned everything first hand and was quite determined to learn everything. My enterprise grew with time and so did I. It has given me satisfaction of achievement.

How have your colleagues and those reporting to you reacted to you?

My determination and hard work did all the talking and they all respected that. It was never an issue.

46

September 2015 I Cargo & Logistics

Do you specialise in any section of the industry: e.g. handling of dangerous goods, etc.?

Over a period of time and at different phases I did different things. I have a CHA Licence and have also done DGR course.

Although I have experience in every aspect of logistics handling, I specialise in import shipments handling and clearance.

What is so exciting about the cargo industry that keeps you attracted to it?

The ever-changing face of this industry never lets you become complacent. You have to upgrade yourself to meet the new challenges it throws at you. The tough competition and ever-demanding customer always keeps you on your toes.

How confident are you about future growth on equal opportunity basis with male colleagues?

With the Indian Government’s emphasis on women empowerment, in future I do believe equal opportunities will be given to deserving persons.

Dedicated staff is an asset to any company and it is often seen in our industry that females are more honest and sincere in their approach (with no offence to males). With a conducive working environment, females can do wonders in this field.

What advice would you give youngsters especially women - to join the industry?

Youngsters have a lot of enthusiasm and eagerness to learn. They can mould easily with changing trends and can work really hard — women are no exception. Keep your cool, be honest and give it a go.

We are proud to announce that Sovika is now the CARGO GSA partner for GO Air, Air Costa & Vistara

The complexities of Air Cargo Sales, Operations and Handling are countless to say the least. You can focus on business expansion and growth while Sovika deals with your next cargo emergency. Our team at Sovika is almost never challenged by intricacies like warehouse management, document processing etc.

Let Sovika deal with your cargo, while you grow your business!

SOVIKA AVIATION SERVICES PVT. LTD. | SOVIKA AIRLINE SERVICES LTD.

ALL THINGS AVIATION. FROM THOSE WHO KNOW BEST.

101 - 104, Dynasty Business Park, Andheri - Kurla Road, J. B. Nagar, Andheri (East), Mumbai - 400 057. INDIA. Phone: +91 22 4099 4444 | Fax: +91 22 4099 4400 Email: info@sovikagroup.com For more details visit www.sovikagroup.com

RNI No. DELENG/2011/387546

Highest Standards of Excellence ensured at each level of operation

ÇELEBİ DELHI CARGO TERMINAL MANAGEMENT INDIA PVT. LTD.

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