CandL

P OL ITIC S USHERS IN A S E COND A I R POR T F OR T H E CA PI TA L Volume IV n No 6

C A R G O

AUGUST 2015 I `60

L O G I S T I C S

READY AND WILLING While the warehousing industry in the country looks at a bright future, it has a host of problems to overcome before the good times roll in.

MANAGING EDITOR’s NOTE

ASEAN for inspiration

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t comes as no surprise that US-based companies are surging to Southeast Asian nations for business. After all, the ASEAN nations (Association of Southeast Asian Nations) comprising Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam covers a land area of 4.4 million square km or three per cent of the total land area of the earth. The member countries have a combined population of approximately 625 million people, 8.8 per cent of the world’s population. Wikipedia informs that “in 2015, the organisation’s combined nominal GDP had grown to more than US$2.6 trillion. If ASEAN were a single entity, it would rank as the seventh largest economy in the world, behind the US, China, Japan, Germany, France and the United Kingdom”.

On paper, the prospects are exciting. Alex Feldman, President and CEO of the US-ASEAN Business Council was quoted saying that “ASEAN has a combined GDP of $2.4 trillion and a consumer base of 626 million…It’s growing middle class, purchasing power, and trade ties all point to greater benefits for US shippers over time.” The potential of doing business will increase manifold when the ASEAN Economic Community (AEC) makes its entry later this year. When that happens in December this year, ASEAN will become one of the largest single market economies in the world which will see the free movement not only of goods but also of services and professionals.

Feldman also pointed out that “over the next decade, by virtue of its youthful populations, growing middle class, infrastructure development, and strategic position at the centre of Pacific trade routes, ASEAN’s members will enjoy growth rates among the most robust in the world”.

Companies from the US and around the world are also attracted by the incomes per capita that range from $56,000 in Singapore to $1,600 in Laos. It will be a challenge to cater to such a market and it is no wonder that CEOs of major companies have started mulling strategies like local production.

While that may solve some supply chain problems, companies have to overcome other transportation obstacles. To begin with, infrastructure disparities persist between countries

like Thailand, Vietnam and Laos. Vietnam, for example, has accused Laos for its plans to dam the waterway. The biggest issue will concern transport infrastructure: Singapore has good roads but in Cambodia and Laos only around 10 per cent of the highways are paved. Though 98 per cent of the 38,400-mile Trans-Asian Highway has been built, some of the critical links are yet to be completed. And, above all, the ten ASEAN nations have both left- and right-hand-drive vehicles. That will become a barrier for transfer of trucks and their loads between borders.

One of the major reasons why ASEAN has been mentioned is the fact that a spirit of unification exists among the 10 nations. In Malaysia, for example, advertisements and hoardings point to a glorious future with ASEAN. The spirit – to say the least – is attractive.

Compare this to our situation. We have yet to get all our states to agree to a common GST (Goods and Services Tax).

This despite the fact that the Goods and Service Tax Bill or GST Bill would be a Value added Tax (VAT) to be implemented in the country from April 2016. It has been aimed at being comprehensive for most goods and services. Exports will be zero-rated and imports will be levied the same taxes as domestic goods and services adhering to the destination principle. It will bring huge advantages to consumers with the reduction in the overall tax burden on goods, which is currently estimated between 25 and 30 per cent.

Now, the country’s top corporate captains have started lobbying for a slowdown in ushering in the GST which most complain of being hastily crafted and flawed. According to the corporate honchos, the GST in its present form would not only hike up manufacturing costs but also encourage imports. That will substantially bring an end to the Prime Minister’s ‘Make in India’ programme. Will we ever be able to forge ahead?

tghosh@newsline.in

Cargo & Logistics I August 2015

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

CONTENTS

C&L

VOLUME IV n NO 6

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH

H C TIWARI

Consulting Editor RAMESH KUMAR

COVER STORY

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Stakeholders from the warehouse industry recently met at the annual India Warehousing Show. Challenges faced by warehousing and logistics industry were discussed during the three day conference where delegates debated key topics that included technology for the supply chain of the future.

SPOTLIGHT

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The non-implementation of the ground handling policy has given rise to safety concerns at a number of major airports in the country. C & L spoke to Prem Bajaj, Chairman and Managing Director of Bhadra International to discuss more about Ground Handling.

FOCUS

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PIB

Rise in air traffic at New Delhi airport has given rise to a demand for a second airport in Delhi NCR region. Even after the approval from the Central government there are many obstacles to build an airport in the region. Political compulsions are the main hurdles that are faced to develop the new airport in Jewar in Greater Noida.

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PROFILE

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

It is not easy to sharpen your competitive edge while working up the hierarchy in a traditional set up for over a decade — especially if you have your sights set on working in logistics. But Kaushik Mahadevan, Manager — EXIM, Grindwell Norton who faced many challenges in the industry has braved all obstacle.

Vice President (Business Development) VINOD KAUL

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For advertising and sales enquiries, please contact:

NEWS IN BRIEF

TIACA has welcomed the WCO Council’s adoption of important updates to its SAFE Framework of Standards to Secure and Facilitate Global Trade. In the land section, a newly constructed broad-gauge railway-line was recently inaugurated for the movement of goods.

Subscription ALKA SHARMA Distribution PANKAJ KUMAR, BHUSAN KUMAR Executive Director RENU MITTAL +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 Design: Nagender Dubey

August 2015 I Cargo & Logistics

JUST IN TIME

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he International Air Transport Association (IATA) released data for global air freight markets showing that growth continued to slow in May. Compared to May 2014, growth in Freight Tonne Kilometers (FTK) was 2.1 per cent, the slowest rate this year and outpaced by a capacity expansion of 4.3 per cent. On a year-to-date basis, freight volumes are up 4 per cent on the previous year, but much of that growth was realised in the latter part of 2014.

Carriers in most regions, with the exception of those based in the Middle East, saw weak growth or even contractions.

In aggregate, airlines in North and Latin America and Europe reported that their freight business was smaller in May 2015 than in the same month of 2014. Carriers in Asia-Pacific experienced slow growth as a result of poor import/export performance.

“Cargo growth has undoubtedly come off the boil. The expansion in volumes we saw in 2014 has ground to a halt, and load factors are falling. Some economic fundamentals still point to a rebound in the second half of the year, but we have to recognise that business confidence is flat and export orders in decline. There is also the risk of a shock to the economic system of a ‘Grexit’ from the Eurozone,” said Tony Tyler, IATA’s Director General and CEO.

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AIR

CARGO GROWTH SLOWS

Asia-Pacific carriers reported demand growth of 2.8 per cent in May compared to May 2014, below a capacity expansion of 6.7 per cent. European carriers saw demand declined by 1.3 per cent in May, compared to a year ago while capacity grew by 2.7 per cent. North American airlines reported a fall in demand of 2.9 per cent year-onyear while capacity was cut by 4.2 per cent.

Middle Eastern carriers saw demand grow by 18.1 per cent, on the back of increased trade within the region, as well as shippers taking advantage of the Gulf carriers’ hub strategy. Capacity expanded to 19.4 per cent. WorldACD market data said that after four months of reasonably satisfactory – albeit quite random – growth, the month of May brought only limited increases in air cargo volumes. Worldwide Year on Year

(YoY) growth was a meager 1.8 per cent, fuelling suspicions that air cargo may have to face some adverse market conditions once again. Worldwide yield (in USD) was down by 2 per cent compared to April. Further analysis is required to find out whether this would not – on balance – be good news for airlines. Yet, it may be hard to establish the impact of lower fuel prices and shifts to all-in pricing. At this stage, we state cautiously that there has again been a slight increase in yields excluding charges.

The areas Europe and North America, volume-wise among the best performing areas only one month ago, were the laggards this time around, together with Central and South America, an area that has been suffering for a while. The growth in May came specifically from Africa and the Middle East and South Asia (MESA), with YoY increases of 8 per cent and 5.5 per cent respectively. MESA was also the fastest growing destination. Interestingly, the Americas did best when it comes to yield comparisons with May 2014.

As has been the case for a while, perishables and pharmaceuticals were the engines of growth again, the former playing a much larger role than the latter in terms of volumes. Worldwide growth in May was completely driven by these two categories with growth figures of 7 per cent and 13 per cent.

JUST IN TIME

Indian Railway’s new freight scheme Airports Council International (ACI) released recent figures which showed that the number of airports that have achieved Airport Carbon Accredited status has increased by 22 per cent during the last year. Figures highlighted that a total of 125 airports in 40 countries have now achieved accreditation through the organisation’s programme, with 26 locations becoming Carbon Accredited since June last year. The accreditation covers four stages of carbon management: mapping, reduction, optimisation and neutrality. The independently administered programme was developed and launched by ACI Europe in 2009 and has been extended to airports in Asia Pacific, Africa and North America over the last four years. As well as 26 new airports achieving accreditation, 14 airports advanced from mapping to reduction, four airports went from reduction to optimisation and four airports reached neutrality.

ACI Asia-Pacific Regional Director Patti Chau said: “These airports are reporting on their carbon management activities every year and they have mobilised on this of their own accord. It’s not just the bigger hubs like Dubai, Heathrow, Hong Kong, Paris CDG, Istanbul-Atatürk, Seattle-Tacoma, Seoul-Incheon and Schiphol – the programme has certified a huge number of smaller airports like Eindhoven, Enfidha Hammamet, Farnborough, Hat Yai International, Malmö, Portland-Troutdale and Puerto Vallarta. Most promisingly 22 airports advanced up a level of the programme in the past year, making further progress in the way they manage their carbon emissions. In the past year, these airports have succeeded in reducing the CO2 emissions under their direct control by 212,460 tonnes of CO2.”

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HEMANT RAWAT

TREND

TRADING HIGH: A freight train at Lajpat Nagar station, New Delhi

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n a bid to increase the revenue from freight traffic, the ministry of railways has come out with a new scheme called Automatic Freight Rebate for Traffic Loaded in Traditional Empty Flow Direction. According to a recent circular, the ministry is going to provide automatic rebate from the computerised FOIS (Freight Operations Information System) to customers offering traffic in traditional empty flow direction (inter-zonal and intra-zonal). The scheme will be in place till March 31, 2016 and will be reviewed in January.

Under the new scheme, except for commodities like mineral and ores, coal and coke, POL traffic, RMC traffic, military traffic and commodities falling under class LR2 and LR3 all other commodities including new commodities will be charged at class-LR1 (Low Rated Traffic Lines) for trainload traffic and at base class 100 for wagonload traffic irrespective of the terminal, commodity and customer. However, there are some riders to the scheme.

Goods have to be booked for at least 200 km. The permitted wagons for this scheme are open wagons, covered wagons and flat wagons and mixed steel rakes. In addition to the commodities which are not eligible for this

scheme certain commodities are not permitted to be transported between designated inter-zonal and intra-zonal divisions.

While transporting cement, the customer could save nearly 32 per cent, in the case of iron and steel 42 per cent, and fertilisers and foodgrains 27 per cent, sources said. The national transporter is expecting an additional flow of 10 million tonnes (mt) by the end of this financial year, and hopefully added revenue of around `700 crore, according to a Railway official.

“Proper data analysis has been done and we have made sure that the Indian railways will be able to monetise on these schemes in spite of giving such heavy discounts,” official added.

Other freight incentive schemes like Incentive Scheme for Loading Bagged Consignment in Open and Flat Wagons, Incentive Scheme for Traditional Empty Flow Direction, Incentive Scheme for Incremental Traffic have been discontinued.

The Railways had run a pilot of this scheme in North Frontier and Southern Railways. In the North Frontier Railways, an additional 15-17 rakes were loaded a month, while in the Southern zone, an additional two rakes were booked a month.

NUMBERS

1.22 PER CENT GROWTH IN FREIGHT TRAFFIC

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uring the period from April 1 to May 31, 2015, Indian Railways (IR) carried 182.72 Million Tonnes (MT) of revenue earning freight traffic, registering an increase of 1.22 per cent. The freight carried shows an increase of 2.20 MT over the freight traffic of 180.52 MT actually carried during the corresponding period last year.

During the month of May 2015, the revenue earning freight traffic carried by IR was 92.91 MT. There is an increase of 1.19 MT over the actual freight traffic of 91.72 MT during the same period last year, showing an increase of 1.30 per cent.

The Eastern Railway (ER) has reported improved freight traffic in the first quarter of this fiscal (period ending June 30, 2015). Total freight loading in ER during April to June period stood at 14.921 MT. Loading of iron and steel has shown an increase of 24.71 per cent; while cement loading moved up by 3.94 per cent.

Other goods loading (including that of stone) increased by 10.08 per cent. According to a release issued by ER, loading of coal from Coal India showed an increase of 16.92 per cent during the April to June period over the corresponding period last fiscal.

`8.50 LAKH CR FOR RAILWAYS

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overnment is planning to spend `8.50 lakh crore during five years in rail infrastructure development such as modernisation, de-congestion of the existing railway system, upgradation, production of wagons, and building over 8,000 stations and train coaches, said Suresh Prabhu, Union Minister of Railways.

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`850

CR PORT PROJECT IN KERALA

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rade through Kerela is going to get big boost as `850 crore would be taken up for the port projects in the coming days. K Babu, Minister for Ports and Fisheries confirmed the investment. He said that a bunkering service would be introduced to enable refuelling, provide water and other items for big vessels passing through the sea off Kerala coast. He further added that other projects include the `763-crore Ponnani port, the foundation stone for which would be laid next month. There are also plans to set up a sand purification plant at the port at a cost of `20 crore.

Further, a `20-crore worth dredger and a container handling crane at a cost of `14 crore would be made available at Azhikode Port in Kannur district. The work would soon begin on a `10 crore NABARD-aided godown at Azhikode. A container handling crane would be installed at Beypore Port at Kozhikode at an estimated cost of `14 crore and a Maritime Training Centre at a cost of `10 crore at Kodugaloor are the other projects, Minister added.

`269 CR PROJECT LAUNCHED AT PARADIP PORTS U

nion Minister for Road Transport and Highways and Shipping, Nitin Gadkari recently inaugurated projects worth `269 crore at Paradip Port. During the inauguration, Gadkari said that a super speciality hospital will be set up in the port town, while a medical college is under consideration. The Minister inaugurated the South Oil Jetty of ten million tonnes capacity, built at a cost of `222 crore, for smooth movement of liquid cargo from Paradip Port. Installation of the

new oil jetty would lead to enhancement of Paradip Port’s cargo handling capacity to 118 Million Tonnes Per Annum (MTPA) from 108 MTPA. The Union Minister also laid the foundation stone of `16 crore Dust Barrier System under Environmental Management Programme of the Centre and also laid the foundation of `174 crore Capital Dredging of Iron Ore, Coal and Multi-purpose Clean Cargo Dock Basin and a plantation programme of about 20,000 saplings.

The Railways has received a 30-year loan from the Life Insurance Corporation of India (LIC) with a moratorium of five years, he said adding that the funding is not an issue for the next two-three years.

“A market cannot be built by one tax system alone but needs to be supported by infrastructure, and it will come from the Railways. Logistics will ultimately decide how India becomes a manufacturing hub,” he pointed out.

NUMBERS

10 PER CENT RISE IN CARGO

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russels Airport saw a 10 per cent rise in cargo for the period, January to June, 2015 as compared to same period last year.

Total cargo volume at the airport this year reached 245,000 tonnes versus 223,000 tonnes at the same period in 2014.

June 2015, alone, saw a 16 per cent increase, year-over-year, with 43,000 tonnes moving through the airport, compared to 37,000 tonnes in June 2014. Belly cargo remained the same at approximately 12,000 tonnes in June, but full-freighter loads jumped 41.6 per cent in June 2015, yearover-year (13,726 tonnes vs 9,600 tonnes in June 2014), with integrator loads increasing 12.4 per cent, from 15,283 to 17,200 tonnes.

The freighter increases are credited to the arrival last year of new full-freighter airlines to Brussels Airport, including Ethiopian Airways, Qatar Cargo, Yangtze River Express and KF Aerospace, which just began its general cargo operations in May. DHL’s continued growth also contributed to the airport’s success, Brussels Airport said.

91,000

BOXES HANDLED BY KPCT

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rishnapatnam Port Container Terminal (KPCT) has reported big jump in container traffic volume in 2014-15. Last year, the port handled over 91,000 boxes against 58,577 boxes in the previous year. The huge increase in trade volume also resulted in doubling of Customs revenue from `970 crore to `1,943 crore. KPCT has proposed to handle around 1.78 lakh in the current year.

KPCT in the last seven years collectively handled more than 150 million tonnes of cargo. The port handled 41 million tonnes consisting of cement, granite, rice, waste paper and automotive parts in last year.

€22

WORTH HUB EXPRESS AT CDG AIRPORT

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ir France-KLM-Martinair Cargo has officially opened the hub express at Paris, Paris-Charles de Gaulle (CDG) airport. The express freight company Sodexi and its shareholders Air France-KLM (65 per cent), and Geopost (35 per cent) invested €22 million in this new state-of-the-art terminal.

Alain Malka, EVP, Air France Cargo, said, “This investment proves we attach a big importance to this activity and we strongly believe in the development of the express and postal business and this facility and that is why we have achieved a certain investment and dedicated so much energy

to it.”

The eight-line sortation hub on a 7,600 sq m footprint is located just ten minutes from the bellyholds of the carrier’s 450 passenger flights that fan out daily from CDG across Europe and the rest of the globe. It can handle 6,000 parcels an hour at peak demand, but is currently handling around 10,000 units a day, so there is significant room for further growth. AF-KLM handled some 2.5m parcels in 2014 and is forecasting a five percent increase in 2015.

51 PER CENT STAKE IN FRAPORT ACQUIRED

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orldwide Flight Services (WFS) is set to acquire a 51 per cent shareholding in Fraport Cargo Services (FCS) as part of a strategic partnership with Fraport AG. The move is part of WFS’ strategy to continue to expand in Europe’s major cargo markets. Fraport is to retain a 49 per cent share in FCS and will continue to take a substantial role in the management of the company.

Terms of the transaction, which WFS and Fraport plan to close by September 2015, have not been disclosed.

Olivier Bijaoui, Executive Chairman, President and CEO of WFS, said: “This is a major transaction that positions WFS and FCS as the leading cargo handler at one of the biggest cargo airports in the world. As Europe’s largest economy, Germany is obviously a prime focus in our growth plans.

We could not ask for a stronger partner than Fraport, with whom we share a passion for quality and performance and likewise who have demonstrated a commitment to the

cargo handling industry over more than 40 years.”

Fraport AG Executive Board Chairman Dr Stefan Schulte said: “As in the past, the cargo business continues to be vitally important for our business model. To continue developing our cargo handling business successfully, it has been our wish to find a strong and competent partner that offers a strong international network. Thus, we are pleased today to announce this new strategic partnership with such a renowned international partner like WFS, to gain an even broader globally-linked base for successfully developing FCS further in the future.”

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COVER STORY

H C TIWARI

Packed and ready

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COVER STORY

The warehousing industry in the country is upbeat – a mood that was reflected at the recently concluded India Warehousing Conference. But before largescale growth can occur, the sector will have to overcome major obstacles. PUNIT MISHRA and CHARCHIT SINGH reports

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few days back, Fairfax India holdings, the Indian arm of the Canada-based Fairfax, acquired 74 per cent stake in National Collateral Management Services (NCML), at a whopping sum of `800 crore. It was a big announcement as far as the Indian warehousing industry in India was concerned – that is incidentally still in its evolutionary stage. The potential for the industry is – literally – humongous. In fact, the mood among industry stalwarts is upbeat and one of optimism.

The recently-concluded India Warehousing Conference 2015 echoed the same sentiments although it ended on a note that the warehousing industry will still have to cross many hurdles before becoming competitive on the global level. Just like Fairfax lapping-up a stake in Indian warehousing company, many foreign warehousing players are eyeing the warehousing industry seeing the potential it holds. But the peculiarities of the Indian warehousing industry are keeping them away. The first and foremost peculiarity which was hotly debated at the India Warehousing Conference 2015 was that 90 per cent of people in the country still consider warehouses as godowns. Most panelists speaking at the conference strongly advocated that people in the country should do away with the generally-held view that warehouses were godowns. India is still in that mindset, one of the panelists at the conference said. The question was apt and logical when seen in respect to India. What then are the differences between warehouses and godowns? The answer is simple: Godowns are less mechanised and automated whereas warehouses are well-kept, mechanised and more automated. But ideally, what constitutes a good warehouse. Deepak Sharma, VP, Supplychain, Indus Towers pointed out, “If you are creating a warehouse, you have to be sustainable. First and foremost build safe warehouses. Keep the safety of the warehouse, your prime concern. Warehouse should be clean, lean and green. Lean warehouses and green warehouses are liked by the customers. It has got very great performance. A good warehouse reduces waste and creates greater efficiency. Benchmarking of the warehouses is also great idea. Exploit the right idea to make the good warehouse. The right idea is compare, act and implement. Inbound and outbound operations should be rightly monitored by the warehouse. Warehouse should be flexible.”

Another panelist Prashant Bhatmule, VP, Supplychain, HSIL also echoed the same opinion and said, “Economisation of the warehouses is also very important. Warehouses should embrace Kaizen’s rule for small improvements.

Green warehousing should be there.”

While his point was well taken by other panelists at the conference, the next question that arose was: How to improve warehousing operations? “Indian warehouses should achieve more accuracy. Setting the benchmarks are also important,” said Shreyas Malkan, CEO-Founder, Passion for Logistics, a firm associated with the logistics business.

Panelists also laid greater emphasis on the automation of the warehouses to achieve greater efficiency. “Mechanisation of the warehouses is also very im-

Cargo & Logistics I August 2015

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COVER STORY

‘Warehousing industry is in futuristic mode’ PUNIT MISHRA during the India Warehousing Show 2015 caught with Asim Behera, Chief Operating Officer, Factory and Distribution Automation, Daifuku India, gaining his insights on the present state of the warehousing industry in India. Excerpts from the interview:

With the e-commerce industry booming in India, how do you see the warehousing industry catching-up with the demands of e-tailers in India?

The boom of e-commerce industry has thrown-up multiple opportunities for the warehousing industry in India. The ware-

housing industry will have to modernise keeping the needs of e-commerce industry in India. Firstly, the time-delivery is very important in the e-commerce industry so it becomes important that customers get delivery on time. So, to counter this challenge, Warehousing units will have to beef-up Stock Keeping Units (SKUs). Plus, automisation of the warehousing will also play a key role.

Lots of foreign players are looking to invest in warehousing industry in India. Do you think they will have competitive edge over domestic players in India?

‘Cold chain industry needs a push’

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t the recently concluded India Warehousing Conference 2015, an outreach on cold chain took place: the India Cold Chain Summit. The meet outlined various challenges that cold chain in India was facing. R K Sharma, Consultant, National Institute of Food Technology Entrepreneurship and Management (NIFTEM), said that the revenue of India’s cold storage businesses was approximately $8 billion and revenue was growing at a pace of 25 per cent despite various challenges the industry was handling. Among the major challenges the sector was facing, Sharma said, “Most of the cold stores are stand alone units with only 16 per cent being part of a network. Transport services were not provided by 80 per cent of the cold storage units. Of the 20 per cent that provided transportation, 52 per cent had an outsourced asset base.” During transportation, the main problem which occured was damage of perishables items such as Litchis and Mangoes. The other problem was modernisation of the cold storages. The modernisation of the cold storages would entail chambers 7-8m, 1000MT, produce dumped on floor up-to 4.5-5 m, facilitate dumper trucks and hoppers, conveyer belt carries potato, easily filled, air circulation underneath pile. The other challenge was accreditation of cold store facilities which had been overlooked by the government. For this, Cold Storages Warehouses Manual should be standardised comprising the following agenda: • Goods to be stored, storage conditions and Insurance Cover • Managerial competence; Warehouse worthiness • Description; identity of Warehouseman and capacity to discharge liability • Guidelines for grading, packaging, marking and labelling, stacking and storage • Accreditation agencies and Check List identified

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No, I don’t think foreign players will have competitive edge over domestic players in India as work culture is very different in India. Foreign players may come with large cash-flow as compared to domestic players but domestic players hold an edge as they know the local culture and language of business. So, if foreign players want to succeed in India, they will have to localise.

Warehousing industry in India is in transitional phase. Do you agree?

The demand and supply do not meet.

Between 2016-2020, 15 million sq feet of warehousing space is needed to meet

portant. Due to improper mechanisation, expenses of loading and un-loading goes high in warehousing,” said Priyatosh Gupta, Sales Head, Gandhi Automations.

“Automation has to integrate with infrastructure to meet the demands of the fast growing e-commerce and retail industry,” said Bhavyassh Agarwaal, CEO, Urbanechain.

Improvement of the warehouses is not only important. Panellists were of the view that transportation also formed a vital link for the warehousing industry and if the transportation industry improved, then warehousing industry will be benefitted a lot. In the panel discussion Business solution initiatives for the warehousing industry, panellists spelt out their views outlining how logistics companies were employing methods to improve transport vis-à-vis the warehousing industry. Umesh Madhyan, National Lead Infrastructure and Projects – Hindustan Coco Cola Beverages, said, “If we see transportation industry in India, it is highly unorganised.

Loading and un-loading takes lots of time.

Once Goods and Services Tax (GST) is implemented, it will help to raise throughput and manage the transportation business

COVER STORY

supply demand shortfall. Plus, we have to think above B and C-grade warehouses.

We need A-grade warehouses. Operational excellence is the need-of-the-hour. Also, we need policy initiatives which encourage trade and commerce. If you see the example, if the GDP is seven per cent, then logistics industry grows double at 14 per cent. I appreciate that government has taken some new initiatives such as Dedicated Freight Corridor (DFC) in Mumbai. The biggest hurdle for warehousing industry is land acquisition. For instance, in Haryana, it is a big problem to acquire land because of several bureaucratic hurdles.

Your views on the current situation of warehousing industry in India?

The 70 per cent of warehousing units are owned in India by the Government. These warehousing units are still working and managed as it used to be 50 years ago. Another 30 per cent warehousing units owned

by private sector are seeing a paradigm shift. There is a tremendous change in the mindset. More and more warehousing units are going for automisation to modernise in tune with the demands of the industry.

Any suggestions for the improvement of the warehousing industry?

Third-party logistics needs greater push.

More investment is needed to boost-up the Third-party logistics in India.

How do you see warehousing industry shaping-up its future in India?

Warehousing industry will be very successful in the future in India with the improvement of supply-chain operations.

If you take the example of Walmart, they represent the perfect success story when it comes to warehousing.

Walmart builds, operates and manages their own warehouses thereby leaving very less scope for mistakes. With the adoption of OMNI channel as Walmart does, India will achieve great success in warehousing.

As far as my projection, India will leave behind ASEAN countries in Thailand and Malaysia in another 10 years.

Above all, given the lack of infrastructure, do you feel that the warehousing industry needs to improve and innovate to serve domestic as well as international needs?

Absolutely! Lack of infra also plays an important part. If you see, most of the warehouses are located just side-by-side to the national highways. The cost of travelling from warehouses to national highways is very high in India just as twice as compared to US. Trucks in US travels on an average 750 kms as compared to 250 kms by trucks in India. So, more and more national highways should be built. ‘Make in India’ campaign is good for logistics. But I would say for logistics, ‘Make it Cheaper’ will be good.

COVER STORY

better. Laws are fragmented. So, we have to have a single law for transportation.”

Another panelist also added, “The problem in India is that we don’t have a single India, we have 29 states. Each state has its own law when transportation is concerned. We need a single law on transShahid Ahmed, Regional Head, portation.”

North India, IndoSpace –– the The logistics industry scenario in India too was also widely debated at the leading developer of modern inconference. S L Sharma, President, Air dustrial and logistics real estate Cargo Agents Association of India put in India –– at India Warehousing forth his views on logistical challenges and Show 2015 talked to C&L on development for air, sea and railways and the wide range of issues consaid, “India should play a positive role in cerning warehousing industry in strengthening the logistics industry. Logistics industry is important for the counIndia. Excerpts: try’s economy. The government is taking corrective steps in rail freight, sea freight Warehousing industry in India is witnessand air freight. Our government is making ing large-scale penetration by the foreign efforts to promote cargo in all – air, rail multinational giants? How do you see this and sea. Logistics industry in India will be trend? greatly benefitted by ‘Make in India’ proForeign players are welcome. FDI is algramme. Cargo is very competitive marready there. They must not have any ket but we have to compete. Even small problem. It will also be good for the countries such as Bangladesh are doing country as they will bring newer technolwell. Tax matters, bureaucracy should be ogies. Walmart India has been great exmade simpler. Government is giving push ample. It became agents of change when to infrastructure industry. Government is it started in India. keen to develop rails and roads. Dedicated freight corridors are good concept and they Do you think that warehousing industry will boost the cargo industry very much.” is keeping pace with the e-commerce With a special mention to air cargo, industry, which is booming in India?

Sharma gave his insights for the improveBiggest catch in e-commerce today is dement of the sector. “Ministry of Civil Avimand and supply gap. If you see future ation (MoCA) is taking corrective steps in projection, two million sq feet of wareremoving the impediments of the air cargo industry. Cargo industry should embrace Electronic Data Interchange (EDI) system. tom clearance time in foreign countries is We have to go paperless. EDI sysvery less. As a result, the cost of tem should work in india. We the material goes higher. We have to be competitive. have made a taskforce for Another Another problem in custom-facilitation. We panelist also added, India is higher transare very happy with the “The problem in action costs. Transresponse of the govt.”

India is that we don’t action costs should Complementhave a single India, be reduced. Our ing the views of S L we have 29 states. dwell time is more.

Sharma, Hemanth DP, Each state has its When we are bringing Chief Operating Offiown law when transmaterial from foreign cer, Aerospace Business, portation is concountry, it takes too much Asia Pacific Flying School, cerned time in taking clearance from Cargo and Free Trade Zone, customs. We ought to reduce that.

GHIAL too was upbeat on the air If it takes too much time, then we can’t cargo landscape in India. “As per IATA, compete on the global level as the cusair cargo carries 35 per cent world trade

‘Warehousing sector is seeing paradigm shift’

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August 2015 I Cargo & Logistics

housing space is needed only in Gurgaon in next 18-24 months. It is a natural progression then there is whole range of value-added services which is needed such as technical solutions and enhancing headcounts. Also, the small towns in India consisting of Tier-1 and Tier-2 cities will play a significant role – where there are 15,000 towns. Then, quality and accuracy is needed. The other important thing is seamless integration of services. E-commerce is all about accuracy and time delivery, one bad experience for the customer and you will be gone. You have to be a specialist in catering to the demands of e-tailers. In the future, e-tailers are planning for 3-4 hour deliveries bypassing one-day deliveries.

So, to ensure that warehousing units will

COVER STORY

determine the future. Use of modern innovation techniques such as Radio-frequency identification (RFID) and Bar-code will also help. Increasing excellence in throughput will also be helpful. Palletisation will also be there, movements of pellets and more mechanised warehouses will be developed.

Development of cold-chain is also needed. Supply-chain industry should be given boost.

have to embrace modern systems such as cloud computing, large database, logical search and linear programming.

Also, creating more positions such as Purchase Managers and Demand Managers. The adoption of six-sigma will also help.

Warehousing industry in India is in transitional phase. Do you agree?

The demand and supply do not meet.

Between 2016-2020, 15 million sq feet of warehousing space is needed to meet supply demand shortfall. Plus, we have to think above B and C-grade warehouses. We need A-grade warehouses. Operational excellence is the need-of-the-hour. Also, we need policy initiatives which encourage trade and commerce.

If you see the example, if the GDP is seven per cent, then logistics industry grows double at 14 per cent. I appreciate that government has taken some new initiatives such as Dedicated Freight Corridor (DFC) in Mumbai.

The biggest hurdle for warehousing industry is land acquisition. For instance, in Haryana, it is a big problem to acquire land because of several bureaucratic hurdles.

Which technologies according to your view should warehousing industry leverage to be more efficient?

Think large, think big. Go for the automisation. Develop A-grade warehouses.

There has been lot of emphasis given by the Modi government to improve the infrastructure sector. How critical is the improvement in infrastructure sector with respect to warehousing industry?

Lack of infrastructure is surely a big problem. If you see, transport trucks in India usually travel 130-140 kms a day as compared to 400-500 kms a day in US. So there is a huge gap. Create hubs to enhance transportation. Enhance supply-chain networks. I think, government should develop more and good roads.

Also, critical is quality of roads, at least show some intent, award the projects and ensure the deliveries of the projects.

That is critical.

How do you see the future of warehousing sector in India?

Large consolidated warehouses will

PHOTOS: H C TIWARI

BUSINESS AS USUAL: A view of the Honeywell stall at the recently-concluded India Warehousing Show 2015

by value and 10 per cent by volume. High value, time-critical and perishable goods depend on air cargo. So, air cargo is the key enabler in the logistics industry and important part of supply chain industry.”

Hemanth gave the broader view of the air cargo industry in India by focussing on the various trends that the sector was going to witness in the future. He stated, “Integrated Cargo Terminal and Warehouse is the major infrastructural requirement of an airport logistics chain. Airports should be capable to accommodate various infrastructure requirements as per traffic pro-

jections. Also, special facilities are needed to handle temperature sensitive, dangerous and special cargo. Plus, airports should be able to handle all type of aircraft. And last but not the least, strong multimodal network plays a vital role in supply chain.

Availability and access to different transportation modes can also increase demand for air cargo.”

The solution lay in creating cargo village at airports, Hemanth DP said. He gave the example of Hyderabad Airport which was in the process of creating India’s first cargo village. This cargo village will act as hub and will have Integrated Cargo Terminal, Pharma Zone, Free Trade Zone, Cargo Satellite Building – Offices and Warehouses, Perishables Terminal, On-site Regulators, AFS (Air Freight Station), Road Feeder Service (RFS) and International Express Terminal.

E-commerce logistics also came into sharp focus garnering attention from the panelists. They were unanimous in accepting the fact that e-commerce logistics was a different ball game. They contended that emergence of e-commerce on a large scale had thrown challenges as well as opportunities for the warehousing units in India to match up with the demands of the industry.

Experts predicted that e-tailers would be adding more warehousing space to scale-up the businesses. “Biggest catch in e-commerce today is demand and supply gap. If you see future projection, two million sq feet of warehousing space is needed only in Gurgaon in next 18-24 months,” a panelist noted. The panelists also said that most of the e-tailers would also be looking to open their own warehouses for faster deliveries and therefore not depending on third party for deliveries. One of the panelists also said that in future the e-tailers were planning to give the customers three or four-hour delivery slots. Hence, they were looking to build their own warehouses to iron-out the logistical bottlenecks. Some also said that to tap in to the huge demands of the e-commerce industry, third-party logistics players would open special arms just to cater to e-tailers.

One of the panelists gave the example of Amazon which has built its own warehouses to ensure better logistics to ensure one-day delivery.

Cargo & Logistics I August 2015

17

SPOTLIGHT

‘It is a free run for these Non-Entitled Entities’ Ground Handling is, perhaps, the most sensitive and integral part of an airport’s functions. Keeping the security sensitivity in mind, the government framed the Ground Handling Regulations 2007, to ensure and address heightened security-related issues at Indian airports and allow for the provision of world class ground handling services. The regulations were framed on the recommendations of the Ministry of Civil Aviation (MoCA), the Cabinet Committee on Security and the Ministry of Home Affairs (MHA). The regulations permit only the Airports Authority of India (AAI)/ Airport Operator; NACIL (now Air India) or a Joint Venture subject to revenue sharing; a Ground Handling company selected through competitive bidding and subject to security clearances and revenue sharing, to commence ground handling activities.

Tirthankar Ghosh spoke to Prem Bajaj, Chairman and Managing Director of Bhadra International, that has the Ground Handling license for seven International Airports in India.

“

Can you tell us about these Non-Entitled Entities? Who are they and what is their role at the airports?

The Non-Entitled Agencies are basically manpower agencies providing manpower to run the various functions of Airport Ground Handling. In the face of the AAI Ground Handling Regulations, 2007 followed by inviting tenders, they do not have the official right to carry on with the tasks at the airports.

Currently, their role entrusts them with complete jobs unauthorisedly such as shifting of baggage from the aircraft, cabin cleaning, trolley handling, etc. The airlines availing their services do not realise that the hiring of the services of multiple Non-Entitled Entities to serve one particular aircraft increases the security concerns, besides leading to clandestine affairs at security sensitive airports. These manpower agencies hire manpower from the hinterland and hence background antecedents of these individuals are not known to anybody.

It all started because foreign visiting

Irrespective of the numbers of these Non-Entitled entities, the actual issue is that if one aircraft is serviced by three or four different Non-Entitled companies, where is the accountability? These entities pick up casual staff and operate through them and God forbid, if an accident happens, who will take responsibility?

“

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airlines have been assigning the job of handling their aircrafts, while on ground, to Indian Airlines and Air India. Both these organisations have merged and now have become a new entity as Air India. It is very surprising that on one hand, we all know that Air India has excess manpower while on the other; it continues to outsource the services to these non-entitled entities (who are none other than manpower suppliers) for handling their contracted foreign visiting airlines.

Airports Authority of India (AAI) had invited Global Tenders for provisioning of Ground Handling activities in 2009? What is the status?

Yes, AAI invited Global Tenders, region-wise, in 2009. The present status is that the consortium of Bhadra NOVIA, after participating in the global tenders, succeeded in getting rights for Ground Handling activities only at the airports at Chennai and Kolkata and for the five southern region airports, namely: Trivandrum, Calicut, Coimbatore, Trichy and Mangalore. NOVIA from Denmark has over 50 years of experience in Ground Handling and Bhadra had been in a tie-up arrangement with them since 2003.

Thereafter, we have positioned the best equipment and highly trained manpower with certain facilities such as GSE hangars, offices at all the airports, with careful selection of senior management and blue-collar staff and special checks on their background antecedents carried out.

These tenders were invited following the promulgation of the comprehensive AAI Ground Handling Regulations, 2007, based on the observations of the Cabinet Committee on Security and with active contributions from the MHA, MoCA and the Ministry of Law. The Regulations, 2007, were formed by the government keeping the overall security scenario, post the 9/11 and other terror attacks. The policy, besides emphasising deployment of full time bonafide employees, also wanted to ensure that the concerned agencies use modern equipment conforming to IATA and ICAO norms, following best practices, while rendering ser-

SPOTLIGHT

vices to the Airlines.

According to the terms of the Regulations, 2007, promulgated on October 18, 2007, those airlines or entities, presently involved in ground handling, which are not governed by these regulations, were not to be permitted to undertake self-handling or third party handling, with effect from January 1, 2009. However, in spite of the serious threats which the regulations were meant to address, when the above-mentioned time limit, for exit of non-entitled entities was about to end, a further extension was granted to favour the continuance of such agencies, initially till December 31, 2009 and subsequently, on the request of the Federation of Airlines (FIA) which represented the five petitioner airlines (and no foreign airlines), up to December 31, 2010 by the Ministry of Civil Aviation. This has resulted in the unabated continuance of the non-entitled entities.

Meanwhile, we heard that the FIA had approached the government with a request for certain amendments in the Ground Han-

dling Regulations 2007, under which along with others, we were appointed as one of the security cleared Ground Handling Companies. However, the Ministry of Civil Aviation refused to entertain the request of FIA as the regulations were cleared and settled at the level of Cabinet Committee on Security and Ministry of Home Affairs. Having lost this hope from the Ministry, this Federation then filed a petition in the High Court of Delhi. After three months of deliberations in the High Court, the court dismissed their petition. Thereafter, the members of the FIA decided to file a “SLP� (Special Leave Petition) in the Supreme Court. During the last four years, the case has been coming up for hearing and has also been partly heard.

However, the petitioners, on one pretext or other, have been successful in taking adjournments all these years and, meanwhile, continue to avail the services from unauthorised manpower agencies.

On the basis of the above, our umpteen numbers of prayers on record, right from the dealing officer to the Chairman and from the

Chairman to the Minister for Civil Aviation, have been waiting to be seriously pursued, the matter pending with the Supreme Court through the senior counsel or Solicitor General, who can follow up the matter with the Apex Court and bring this stalemate to a logical conclusion.

However, due to a lacklustre approach in initiating action to remove the Non-Entitled Entities from these Airports, they continue to perform. The current status, where in spite of the presence of licensed Ground Handling Service providers like us, the unauthorised entities still operate at the airports, defeats the purpose of the Regulations, 2007 and the tenders.

Has AAI taken any action to stop the outsourcing of manpower by the airlines as it is a violation of the GHR? Well, ostensibly yes and factually no. The AAI headquarters has been writing to their REDs and APDs for stopping of the entry permit passes to the staff of the Non-Entitled Entities engaged by the concerned air-

Cargo & Logistics I August 2015

19

SPOTLIGHT

lines. However, they continue to be allowed under one pretext or another.

Once directives from MoCA and AAI were issued to REDs and APDs, have they stopped issuing passes to Non-Entitled Entities?

Unfortunately, no. They haven’t. We fail to understand why, in spite of clear-cut directions from the MoCA and AAI CHQ, the airport Directors or REDs continue to allow these Non-Entitled Entities to perform at these airports is not being understood.

ent companies or manpower suppliers, i.e. one supplying the cabin cleaners, the other supplying manpower for bringing and dropping the baggage, some other for cleaning the lavatories and filling water, step ladders and coaches being dealt with by yet another, and so on, where is the accountability?

These entities mostly pick up casual staff and operate through them and God forbid, if an accident happens, who will take the responsibility? Each entity would blame the other and by the time the antecedents of the entire crew, working on the respective flight, is determined, the loss would have already occurred.

What were the significant modifications in the ground handling regulations, 2007 We understand that these Non-Entitled based on which the fresh tenders were Entities, supplying manpower, are claiming called? that they are paying royalty at par with the Some of the significant modifications in the authorised agencies. Your comments? ground handling regulations, 2007 which No, they are not. The Non-Entitled Entihad been notified in the gazette in October, ties are paying similar percentage of roy2007 inter alia contained the following: alty only on the cost on manpower A) At the metro airports, all the charges, unlike the authorised airlines could avail the agencies appointed by the services from the naThe existence AAI, who are obliged to tional carrier or its of the illegal subsidiary/Joint manpower agencies pay the royalty on gross realisation. Also, neither Venture; Airports has seriously have these Non-Entitled Authority of India/ jeopardised our companies participated in Airport Operator; business the tenders invited by the Ground handling seropportunities.

AAI nor have they made huge vice provider, selectdeposits with AAI, running into ed through competitive crores. Hence, AAI stands to lose a bidding process, subject to substantial amount of royalty payment. obtaining security clearance from the concerned government agencies.

What has prevented AAI and MoCA to take B) Non-Entitled Entities should exit by action against Non-Entitled Entities as January 1, 2009. per the AAI Ground Handling Regulations, C) All the ground handling agencies shall 2007? ensure that state-of-the-art equipment We do not understand why the AAI and is used and best practices are followed.

MoCA are taking their own time to take D) All the agencies appointed by the AAI firm action. The constant delays, in ensurto render the ground handling services ing complete implementation of the AAI under the Regulations 2007 shall deGround Handling Regulations, continue to ploy whole-time bonafide employees put the airports in high security risks. Since on the payrolls of their company. the last 5 years, we have been pressing AAI and MoCA to remove all Non-Entitled EntiWhat would be the total number of the ties. This question can be best answered by non-entitled entities working at the airAAI and MoCA. ports?

Off-hand, it would be difficult to comment Has the FIA approached the Supreme Court on the number of such agencies. However, for recourse to the grievance and what is irrespective of the numbers of these non-enthe outcome? titled entities, the actual issue is that if one The FIA has approached by filing a SLP on aircraft is serviced by three or four differ-

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April 4, 2011. The Supreme Court, in its interim judgement, has asked the petitioner airlines to enter into a MoU with the legitimate and authorised ground handling agencies at the airports, licensed by the AAI, based on which their staff would be entitled to get the issuance/renewal of the passes.

Despite the limited interim order being applicable only to petitioner airlines who are allowed to use their own staff, the AAI has been allowing all illegal Non-Entitled Entities to operate at the airports.

Did the airlines enter into a MoU as per the orders of the Apex Court?

The airlines entered into an MoU with the authorised ground handling agencies with immediate effect of the order dated April 4, 2011 of the Supreme Court, for a valid period of six months from the date of signing the MoU. Have the MoUs been renewed by the airlines?

The concerned petitioner domestic airlines have not come forward to renew the MoUs and as such, the executed MoUs are not in vogue in terms of the Supreme Court order and hence, does not have legal validity.

Have you been directed by AAI, BCAS and MoCA to approach the airlines for renewal of the MoUs, based on which the airlines staff passes were to be renewed/extended?

No, we have not been issued any directives/instructions to the effect.

What is the status of the SLP in the Supreme Court?

The SLP filed by the FIA and the domestic airlines in April, 2011 came up for hearing for the first time on April 4, 2011. The Supreme Court had passed an interim order on that date wherein the petitioner airlines were asked to enter into MoUs with the ground handling agencies for renewal of the passes of their staff.

Thereafter, the Supreme Court heard the petitioner but could not conclude and the matter was adjourned for a further date.

Subsequently, the Supreme Court gave the petitioners two days to complete their arguments. The petitioners have been dragging the matter by seeking regular adjournments and the matter is listed in such a way that it

SPOTLIGHT

will take its own time to come up for hearing.

Has anyone from the government or representing the Airports Authority of India and MoCA made any application requesting the Apex Court for early disposal of the case?

To the best of our knowledge, we are not aware of any such request. However, we feel that the AAI and MoCA may have informed the Supreme Court about the serious security concerns arising due to the continuance of the unauthorised manpower agencies.

Has the continuance of the unauthorised agencies affected your work?

The existence of the illegal manpower agencies has seriously jeopardised our business opportunities and has adversely dented our revenue potential. The unauthorised agencies are not accountable to the airlines in any manner except in providing the agreed manpower. Some of the agencies even indulge in providing out-dated equipment which is hazardous and results in violating the safety and security of the airport operational area.

The ground handlers who have participated in the tenders had based their offer on the basis of the tender conditions and the AAI Ground handling Regulations, 2007 stipulated by AAI in their NIT. Accordingly, we had ventured to induct

brand new state-of-the-art, pollution-controlled, environment friendly and world class equipment, imported from Germany, USA, UK, France, Austria, etc., making substantially huge investments. We have also deployed trained wholetime bonafide employees on our pay rolls, totaling to around 2800 approximately, strictly complying with the stipulations contained in the AAI Ground Handling Regulations, 2007.

As a result, we have been incurring huge financial losses on account of recurring monthly committed outflow and have accumulated substantial losses. In addition, due to the adverse presence of the unauthorised agencies, our trained manpower and the inducted equipment are lying grossly underutilised.

Is the subsidiary/the joint venture of NACIL-AISATS paying royalty at par with the royalty rates quoted by you in terms of the Regulations 2007?

No, they are not. In 2014, AAI extended special treatment by withdrawing the matching rate with a concessional rate of 13 per cent of the GTO as against 32.5 per cent of the GTO committed by us. It is also to be observed whether they are even paying this 13 per cent on the overall Gross Turnover as envisaged in the SGH agreement with the concerned airlines, or on the amount being paid for the outsourced man-

power only. NACIL is enjoying preferential right for carrying out ground handling functions in terms of the Regulations 2007 without making any payment to AAI. Moreover, in terms of the ground handling regulations, 2007, NACIL, through its subsidiaries/ joint ventures organisations, is required to deploy only wholetime bonafide employees. However, it is a fact that at certain airports they are engaging outsourced manpower from unauthorised agencies and making the agency pay charges at 13 per cent of their turnover, which is derived from the supply of manpower. Thus there is absolutely no level playing field, resulting in gross violation by the Airports Authority of India in not monitoring as well as not being able to provide the assured business opportunity to us in terms of the NIT. Apart from NACIL, AAI has been extending the preferential treatment to the private Joint Venture Company, AI-SATS. Since both AI-SATS and we are private companies, we cannot understand how AAI has not imposed the same rules and regulations as they have on us.

One last question. Have the “Ache Din� come?

Both Ache Din and Foreign Investors will come when the policy paralysis ends and the government gets serious about implementing the policy in toto.

Cargo & Logistics I August 2015

21

FOCUS

Jewar breaks

deewaar

A second international airport will become a necessity quite a few years from now, but political compulsions seems to have taken top priority and seen the airport through its first hurdle, reports TIRTHANKAR GHOSH ü

BANGALOREAVIATION.COM

As per clause 8.2 of the contract between the GMR Group, which runs the Delhi airport, the government can create a greenfield airport within the 150-km. ü GMR Group is proposed to be accorded the right of first refusal (RoFR) with regard to the new project. Once accorded, GMR Group would have right of first refusal (RoFR) to develop the project, if interested, before any other entity. ü For the new project, the government would be required to amend certain regulations as existing rules do not allow a second airport within a 150 kilometre radius of an existing one, unless the latter is functioning beyond its operational capacity.

“A

ir cargo business is almost nil as compared to its actual potential and if we really open all our doors for cargo, Delhi roads will be choked further…” That’s Mahesh Sharma, Minister of State for Civil Aviation (the junior minister in the Ministry led by Ashok Gajapathi Raju, the Minister for Civil Aviation). His words came after the civil aviation ministry approved the proposal to build a second international airport in the Delhi NCR region (the National Capital Region of the country includes the cities of Gurgaon, Noida

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and Faridabad) at Jewar in Greater Noida (Jewar is around 100 km from Delhi) in a meeting with officials from the ministry, the Airports Authority of India and others.

Incidentally, Sharma represents the Noida area in Parliament and is a member of the Bharatiya Janata Party (BJP) led by Prime Minister Narendra Modi.

The civil aviation ministry pointed out that the airport would need 2,200 acres of land that, according to Sharma had already been acquired. More land could be acquired, he said, “since land availability is not an issue in that area…Plus, the road

infrastructure till the site for the proposed Jewar airport is also adequate.”

The actual construction of the airport, however, is still a long way off. To begin with, the proposal will have to be cleared by the Cabinet before anything else is done.

With the BJP government in power in Delhi, the proposal is likely to be passed without any hindrance. However, the obstacles could come from the state government of Uttar Pradesh (Noida is part of Uttar Pradesh) that is ruled by a party that does not see eye to eye with the BJP – in fact, it is opposed to it. The UP government wants

FOCUS

Bumpy ride through the years 2001F Greenfield Taj International Airport at Jewar mooted

RGIA

MIAL

2003F Project cleared by AAI WAITING FOR SECOND AIRPORT: There has been talks to develop second alternative airport at Mumbai Airport (left) and Hyderabad Airport just like Delhi Airport. While Mumbai Airport will witness the coming of Navi Mumbai Airport, Hyderabad Airport's alternative airport is still in the pipeline but Politicians are upping the ante for the second airport

an international airport between the cities of Agra (around 165 km from Delhi) where the Taj Mahal is and Mathura, 50 km away.

Another hurdle that the airport at Jewar would face would be from GMR, the operators of the Delhi International Airport. According to the agreement, the government cannot permit construction of any airport within 150 km radius of the Delhi airport.

And if it did, the first right of refusal for construction and operation would be GMR. For Mahesh Sharma that would be no problem. He was quoted saying that GMR would indeed be given first right of refusal and if it refused, “we are committed to complete it in time once we put it on drawing board”. There are reports too that the government could even change the 150 km radius rule in view of the demands from fliers and airlines. “Unless an existing airport is functioning beyond its operational capacity, existing rules do not allow a second airport to come up within a 150 km radius of an existing one. For the new project, the government will be required to amend certain regulations,” Minister Sharma said.

The question is whether Delhi will reach saturation in the time the Jewar airport is completed – between three and five years. Airport authorities believe that Delhi is nowhere near saturation: in cargo, for example, the airport handled 0.7 million tonnes in 2014-15 when it has a capacity of 1.5 million tonnes. As for passengers, the airport can handle 62.5 million passengers but it saw only 40.9 million in 2014-15.

A second international airport for Delhi has been in the news for quite some time.

Perhaps, what is more important to note is that it has been embroiled in politics. Way back in 2001, when the present Home Minister Rajnath Singh from the BJP was the

Chief Minister of Uttar Pradesh, he had raised the idea of an international airport around Noida. When he quit, Mayawati (from a different political party and opposed to the BJP) pushed the project. She lent her support to the government at the centre in Delhi and in turn got the clearance for the Jewar airport.

Today, the government in the state of Uttar Pradesh is in no mood to accept the Jewar project simply because it was promoted by a party and personality who has been its ‘worst enemy’. And with the BJPled government at the Centre, the signs of a protracted tug-of-war are clear. This, despite the protestations from Mahesh Sharma that he was pandering to his constituents by bringing the airport to their doorsteps.

Amber Dubey, Partner and India head of Aerospace and Defence at KPMG felt that Delhi and the NCR would probably need three or more airports like London or New York but that situation was still many years away. Since airports were costly to build and maintain, two airports in close proximity handling 1.5 million tonnes of cargo and 55 million passengers would send airport tariffs for passengers high.

Additionally, it will also be difficult for airlines, cargo stakeholders and others to station staff at two airports for a small demand base. He felt that the central government should get a techno-commercial viability analysis done before bowing to political demands.

Meanwhile, property developers and housing complex builders in the Greater Noida area are the ones who are smiling.

The news about the BJP minister’s initiative for the airport has suddenly seen a rise in prices in a market that had become virtually stagnant.

2007F May: Mayawati govt revives

Jewar airport proposal in meeting with the then PM Manmohan Singh. Civil Aviation ministry asks state govt to submit details

2007F October: UP govt gives written assurance to Centre to abide by contractual agreement by Centre and GMR Group, promoters of Delhi’s IGI airport, in case any loss of revenue is reported

2008F January: GoM on Jewar

headed by the then Home Minister P Chidambaram constituted

2009F November: Mayawati govt

again requests Centre to sanction the airport proposal at Jewar

2010F August: GoM meets. Decision deferred on airport

2010F October: Mayawati makes appeal to Centre to clear airport proposal

2011F December: Ajit Singh takes over as Civil Aviation Minister. Rekindles the hope of reviving the Jewar airport

2012F May: Akhilesh-led govt in UP

scraps the proposal of Jewar airport

2014F November: Newly-appointed Minister of State for Civil Aviation, Mahesh Sharma revives the Jewar airport saying the airport is important to decongest the air traffic in the NCR region

2015F June: Aviation ministry

clears proposal for second airport in Delhi-NCR to come-up at Jewar airport

Cargo & Logistics I August 2015

23

FACE TO FACE

‘Warehousing will go dynamic in future’ Customer satisfaction and customer retention are the issues on which Om Logistics is currently focussing, says Akash Bansal, Head, Logistics, Om Logistics in a conversation with PUNIT MISHRA and CHARCHIT SINGH. With a better IT capabilities and systems in place such as OLTP, and wholly-developed in-house ERP system, Bansal is optimistic that it provides Om Logistics more edge to harness its resources more efficiently than its counterparts out India. If you see our business mode, we don’t follow the lease model. Most of the warehouses are owned by us. We are asset-heavy company.

Logistics players are keenly looking for GST to be implemented? Would GST prove to be a gamechanger for logistics industry?

Tell us more about the new warehouse which you just opened at Narsapura, Bengaluru?

The new warehouse in Narsapura, Bengaluru is one of its own kind. We opened the warehouse to cater Honda. The opening of the warehouse ensured timely delivery to Honda. It is fully owned by us. Our main focus has always been customer satisfaction. Apart, from that we have also a new warehouse in Rudrapur in Uttarkhand.

Do you lease warehouses?

Most of the warehouses which we build are on the land owned by us. We believe in creating our own infrastructure. There is no point in leasing land and creating infrastructure. Every business works for Return on Investment (RoI). We can serve our customer better through this model. Secondly, the warehouses which are on lease don’t have proper infrastructure, but people prefer for that because the cost is low.

We don’t believe in such things. We create

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our own warehouses and try to give best to our customers. We customise our warehouses to suit the customers. But there is a flipside to it also, when we customise it for the customer, they don’t give us extra for that. They call it value-addition.

Your bulk of business is centred around Delhi-NCR region which is also the fastest growing region when it comes to retail and e-commerce. Are you planning to expand your business in NCR, or you are also looking to diversify in other parts of India?

No, it is not like that. If you see, we have a pan-indian presence. If you see we have `1000 crore worth of domestic warehouses spread across India. We have 30 per cent of the warehouses in North India, 30 per cent in South India and 30 per cent in West and 10 per cent in East. Apart from that we are also planning to open warehouses in seven sisters in North-East region. We have a total of 500 offices spread through-

Yes, it would be a gamechanger. But it needs to understand the logistics industry perspective. Surely, GST will replace CST. But the important thing is what impact would it have on logistics industry.

Will it be able to impact inter-state and intra-state permits. The policy should be able to treat India first. Today India is 29 states. These 29 states have different rules and different tax-regimes. My suggestion is first implement GST, and then go for amendments. Atleast, get it implemented.

I have been hearing it for past six years for the GST, but nothing has been done on the ground. I am hopeful, Modi government would be able to implement it.

What are your views on toll plazas?

No doubt, they give us better infrastructure. It saves time and management cost.

Trucks which use to carry three shipments a month are now carrying five shipments.

But the problem which occurs are on state borders and inter-state tax. Through toll plazas, we also save maintenance cost of trucks. But we don’t get discounts from truckers whose trucks we ply in benefiting them in maintenance cost of trucks.

How do you see 3PL logistics market shaping-up in India in the future, let’s say by 2020?

Well, logistics is the only industry which never goes for recession. For instance, if there is truckers strike or supposedly truckers get struck due to natural disaster.

FACE TO FACE

MANAGING GOODS: Om Logisitcs’ Bisola warehouse used to supply goods

Then, the price of the vegetables go high suddenly. So, in my opinion, it will grow.

Most importantly, in the next five years, the logistics industry will see more consolidation. If you see, logistics industry is a very unorganised industry. Small players comprises 90 per cent of the logistics industry. These are the players which have 4-5 trucks. They won’t be able to survive. Because they won’t be able to satisfy customers’ expectations.

Because today’s customers need value-addition. I will give you our example, many of these small players approach us saying that use our trucks as they are not able to manage the operations. We use their trucks. And we effectively manage them. So, I think small players will diminish.

Booming e-commerce industry has opened up lots of opportunities and challenges for the 3PL industry.

What are your views?

Yes, the e-commerce industry has boomed in the last two years. We have been associated with e-commerce players such as Flipkart catering to them in the B-to-B segment. B-to-C has not been targeted. But we have opened an e-commerce portal which allows you to book your shipment online. It is called OM Logistics Express door-to-door delivery service. It gives the customer 24x7 to send anything, anywhere and anytime.

Do you carry high-value cargo?

We carry almost 60 per cent of phones across India. I think, today phone is the high value cargo. We are into watches, pens and all such products. We don’t carry Gems and jewellery as it is too risky. We can’t send a security convoy with every shipment we carry. We are facing a major problem of dacoity on highways where many times our trucks have been looted.

Supply-chain management (SCM) is an important aspect of logistics industry? What are the ideas that have been implemented to improve SCM by your company?

We have implemented real-time tracking which has been instrumental to improve supply-chain management for the company. Plus, we have OLTP, wholly-developed in-house Enterprise Resource Planning (ERP) system. In addition, we have installed our own servers to ensure real-time tracking. The best thing about these in-house servers that they are very helpful to meet customers’ expectations.

Customer can any time track his shipment with real accuracy with these servers.

Are you thinking of selling your software to other players?

No, as of now we are not thinking for selling it. We are looking into the betterment of this software and how we can serve our customer better. Customer satisfaction is

what we work on.

How do you rate the current scenario of warehousing industry in India?

The warehousing industry is still in its nascent stage in India. There is long way to go for warehousing industry in India. If GST is implemented, then it will be good for the warehousing industry. Cost-effectiveness is the key. Factors such as RoI needs to be considered by the government. Then, there is land issue. Acquiring land to build warehouse is a big hassle.

That needs to be sorted-out. The concept of racking should also be implemented.

So, I expect in future the warehousing to go vertical, instead of horizontal as happening in most countries other than India.

What new initiatives have been taken by Om Logistics?

Definitely, we are trying to go global. We have already started operating in Nepal carrying shipments through trucks to and from India and vice-versa. Our main focus is to expand SAARC countries. We already are operating in China with a JV with a Chinese firm known as JC-Omtrax Logistics. We have presence in US. We are doing self-owned business in US as the freight forwarder.

The company name is Om Trans Logistics. In future, we will be focussing on e-commerce and pharmaceuticals.

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PROFILE

Grinding the ‘Logistics’ wheel SARADA VISHNUBHATLA met KAUSHIK MAHADEVAN, Manager – EXIM, Grindwell Norton in Bengaluru, Karnataka and finds out what makes him surpass his own expectations and get his organisation to set up a separate division for logistics

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Kaushik Mahadevan

We introduced DTMS (Domestic Terminal Management System) across all ICDs in India when in CONCOR. As the team head, I felt this mammoth initiative was a great challenge as people were habituated to old formats. Despite these challenges, we were able to implement the system across India in 3-4 months and it is still running successfully.

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oft-spoken, highly ambitious Kaushik Mahadevan, Manager – EXIM, Grindwell Norton is a Royal Enfield riding travel enthusiast and does not like to waste time. He is forever busy improving things around him and about him.

Well into his work stint at Grindwell Norton, Mahadevan decided one fine day that he must become richer academically and garner qualifications in supply chain management and logistics. He shared, “My journey in logistics started with me joining Southern Railways as Commercial Controller. I worked there for 12 years. The highlight during my tenure was improvement in the punctuality of freight trains and the novelty of using the converted old passenger coaches into freight coaches.” After a brief period at Container Corporation of India (CONCOR) from 1998 to 2002 where he handled Inland Container Depots (ICD) and freight trains, Mahadevan was ready for yet another change.

He added, “I took a life changing decision to quit CONCOR and joined Saint-Gobain group, a global leader in Innovative Material Business. Here, the atmosphere was different and challenging besides peer pressure. People were younger, more outgoing. Increasingly, I observed that people with engineering backgrounds were given more recognition because it was a manufacturing setup.” So began Mahadevan’s efforts to equip himself with additional academic qualifications, “I did PGDM in Customer Relationship Management (CRM) and PGDM in Supply Chain Management (SCM) from Symbiosis. I have a MBA Degree in Supply Chain Management from United Business School, Brussels. I periodically visit libraries, learn best practices of global companies like BOSCH and GE in Logistics and Supply Chain. My efforts at adopting them were appreciated here. ” This Chennai-born, post-graduate in economics from Madras University was happy to find his pluck. He said, “We introduced DTMS (Domestic Terminal Management System) across all ICDs in India when in CONCOR.

As the team head, I felt this mammoth initiative was a great challenge as people were habituated to old formats. Despite these challenges, we were able to implement the system across India in 3-4 months and it is still running successfully. It is not easy to introduce something new in government departments.” Change has doggedly pursued Mahadevan at every turning point.

Probably because he is one to believe in proving himself in more and more challenging roles professionally, “In 2003 when the opportunity came to work with Saint-Gobain, I quickly grabbed it much to the chagrin of my friends and relatives who advised me against leaving the government job,” he smiled.

The challenging environment at his new work place, Saint-Gobain –– which had taken over the 1940-born Grindwell Norton in the mid90s –– made Mahadevan work harder. More so because his co-workers were more competitive, professional and high achievers. He added, “I quickly embraced the new environment and got promoted in the very next year as Senior Office in Customer Service and Logistics department and was given additional responsibilities as well.

We introduced many things including WCM (World Class Management) initiatives.”

Handling four businesses in the abrasives division at Grindwell Norton included looking at a wide range of products –– from kitchen essentials to high-end niche products for OEMs. Mahadevan says, “I had an opportunity to do many improvement projects like Six Sigma project Green Belt in Supply Chain in 2004 and another Green Belt under World Class Manufacturing Module for a project in Inventory management in 2012.” Soon after becoming the head of the department of Customer Service, he took on planning as well for the various businesses.

He shared, “We have about 19 verticals in all the three businesses and about 1000 dealers.

About 80 per cent of our business goes through our well-established distribution network and only 20 per cent is through direct customers. It meant I was handling inventory, customer service, and planning. I also took active part in WCM initiative by taking up a project for inven-

PROFILE

tory reduction. It was awarded the ‘Best Project’ and was also selected as ‘Model Project’ for all Saint-Gobain plants worldwide. I have also been awarded Green belt certificate in WCM for the second time.” The many accolades and acknowledgements helped Mahadevan to persuade his seniors to let him shift to Grindwell Norton’s Abrasive Marketing Group (AMG) to handle its Southern India business interests.

The feather in his cap came in 2014 when he was made the head of EXIM department of the nine businesses of Grindwell Norton in Southern India. Mahadevan explained, “This portfolio has given me an excellent opportunity to handle myriad businesses including Coated Abrasives, Fiber Disc business, Non-Woven Abrasives, Super Abrasives, High Performance Refractories, Performance Plastics, Adfores, Project Engineering Group, and Construction product Division.

Besides these, I also handle a Silicon Carbide Plant at Tirupati and in Bhutan and High Performance Refractories Factory at Baroda.” Prior to this, interestingly, EXIM Logistics was part of Grindwell Norton’s finance department. Owing to the increasing challenges in exports and imports pertaining to all its businesses, it was carved into a new department. Introducing initiatives became easier for Mahadevan since it was new. He said, “Our import value stands at about `300–350 crore every year. The onus is more on imports as the import components of our products are significant. 60 per cent of export and import transitions are to and from our affiliate companies across the globe.”

Grindwell Norton’s grinding wheels are widely used for a variety of different purposes whether for polishing rice or for use in spacecraft.

He shared, “All major OEMs and the entire automobile industry use our products.”

Mahadevan talked about their internal practice of ‘Partner 40 Customers’ which is actually a list of 40 customers, prestigious to Grindwell Norton, with whom they work closely and provide cost efficient grinding solutions. He said, “With them the price is not the criterion but the prestige and pride of working with them. We have our assistant engineers stationed with each of them always to help because some issues may come up with new product developments and trials. It is a cycle because it’s the brand that is more important to us.”

Heavy EXIM movement, wide network of distribution centres and constantly trying to provide upgraded solutions to its customers makes supply chain management for any company a

tough job. Mahadevan has an insight, “I feel that increasingly companies do not give importance to hiring professionals to handle SCM. Few engineers take up supply chain as a profession. About 10 years back it was only transportation which meant lower strata. So, people have had the visibility of the term logistics only recently. Supply chain came much later.

The challenges in modern supply chain management are severe and these must be tackled professionally and with experience.”

In a country where logistics and supply chain is still not organised, finding qualified managers with engineering background is almost a rarity. He said, “Definitely times are changing, and now people are thinking about hiring professionals with logistics or supply chain management and an engineering degree.

I found that United Institute Brussels, Belgium had a good correspondence course in this area and I took it up. I came to know the best practices that can be applied and it has given me more confidence in interacting with my senior management and other departmental heads.

Secondly, I learnt many tools, for example, material resource planning, since I did not have much experience in purchase, but with this I learnt much in purchase.”

According to Mahadevan, it is high time that companies give transportation, logistics and logistics professionals, the importance that is due. He felt, “Now there is greater awareness that logistics is a critical component. Hence, the onus is on the person who is handling logistics and supply chain and he should strive to gain respectability from the senior management because only then the same respectability will be passed on to the customer otherwise you may be producing world’s best product, but if the driver goes to the customer with your product in shabby clothes or gives the product in a broken box, the image of the product and the company gets damaged. If you pay peanuts you get peanuts.”

With so much effort that is going into making Grindwell Norton’s supply chain and logistics smoother, it is no wonder that Mahadevan and his team are able to report 90 per cent On Time In Full (OTF) which basically means that customers get the product they ordered in full quantity on the dates they have chosen to receive. After all, a satisfied customer is the ultimate good publicity.

- Supplychaindia Syndication Service

This portfolio has given me an excellent opportunity to handle myriad businesses including Coated Abrasives, Fiber Disc business, Non-Woven Abrasives, Super Abrasives, High Performance Refractories, Performance Plastics, Adfores, Project Engineering Group, and Construction product Division.

Besides these, I also handle a Silicon Carbide Plant at Tirupati and in Bhutan and High Performance Refractories Factory at Baroda.”

Cargo & Logistics I August 2015

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INFRA PUSH

Financial push for freight corridor To increase Indian railways’ transportation capacity, World Bank is showing its full commitment by providing financial help to build high-capacity dedicated freight corridors along the Golden Quadrilateral. The Project is expected to bring in significant reductions of Green House Gas (GHG) emissions

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ugmenting its transport systems is a crucial element of India’s trillion-dollar infrastructure agenda. Since the 1990s, road transport has advanced more rapidly than the railways, and now accounts for about 65 per cent of the freight market and 90 per cent of the passenger market in India.

To enhance the Indian railways’ transportation capacity, the World Bank Board recently approved $650 million as the third loan for the Eastern Dedicated Freight Corridor (a freight-only rail line) that will help faster and more efficient movement of raw materials and finished goods between the northern and eastern parts of India. The Eastern Corridor is 1,840 km long and extends from Ludhiana to Kolkata. The World Bank is supporting the Eastern Dedicated Freight Corridor (EDFC) as a series of projects in which the three sections with a total route length of 1,146 km will be delivered sequentially, but with considerable overlap in their construction schedules, according to a press release by World Bank.

EDFC 3, approved recently, will build the 401 km Ludhiana-Khurja section in Uttar Pradesh, Haryana and Punjab. The Project will help increase the capacity of these freight-only lines by raising the axle-load limit from 22.9 to 25 tonnes and enable speeds of up to 100 km/hr. It will also help develop the institutional capacity of the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) to build and maintain the DFC infrastructure network, the release added.

Onno Ruhl, World Bank’s Country Director in India said, “Implementing the

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Dedicated Freight Corridor programme will provide India the opportunity to create one of the world’s largest freight operations. The corridor, which will pass through states like Uttar Pradesh and Bihar, will benefit from the new rail infrastructure, bringing jobs and much-needed development to some of India’s poorest regions. Moving freight from road to rail will reduce the carbon footprint of freight by 2.25 times.”

The first loan of $975 million for the 343 km Khurja-Kanpur section in the EDFC programme was approved by the World Bank Board in May 2011 and is already under implementation. So far, it has awarded contracts worth $700 million for this section. Compensation has been awarded for about 95 per cent of the 1,410 hectare of land being acquired from 29,253 affected farmers for EDFC 1 (Khurja-Kanpur section). The second loan of $1.1 billion for EDFC 2, which covers 402 km from Kanpur to Mughal Sarai was approved by the World Bank in April 2014. Under EDFC 2, civil works contract for about $800 million has been awarded and contracts worth about $240 million, for establishing rail systems, are under process.

The EDFC is part of India’s first Dedicated Freight Corridor (DFC) initiative – being built on two main routes the Western and the Eastern Corridors. These corridors will help India make a quantum leap in increasing the railways’ transportation capacity by building high-capacity, higher-speed dedicated freight corridors along the Golden Quadrilateral. Currently, the rail routes that form a Golden Quadrilateral connecting Delhi, Mumbai,

Chennai and Kolkata, account for 16 per cent of the railway network’s route length, but carry more than 60 per cent of India’s total rail freight.

Ben L J Eijbergen, Programme Leader, Economic Integration and the Task Team Leader for the Project added, “The Indian Railways urgently needs to add freight routes to meet the growing freight traffic in India, which is projected to increase more than 7 per cent annually.

These freight lines will wholly transform the capacity, productivity, and service performance of India’s busiest rail freight corridors. At completion, it will be able to more than double its capacity to carry freight, with faster transit times, being more reliable and at lower cost.”

In addition to the efficiency improvement and other operational benefits, the project is expected to bring in significant reductions of Green House Gas (GHG) emissions. A GHG emissions analysis conducted by DFCCIL for the Eastern DFC Project shows that the Eastern corridor is expected to generate about 10.48 million tonnes of GHG emissions up to 2041-42, as against 23.29 million of GHG emissions in the absence of EDFC – a 55 per cent reduction in GHG emissions.

Economic opportunities are also being explored along the freight corridor.

The government is planning to set up seven integrated manufacturing clusters using EDFC as the backbone. These clusters will be set up with an investment of about $1 billion on either side of EDFC. The loan, from the International Bank for Reconstruction and Development (IBRD), has a 7-year grace period, and a maturity of 22 years

INITIATIVE

UTi delivering better lives

ACHAA helping hand to the needful

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reight forwarding and logistics organisation UTi organised its Walkathon. Walkathon is UTi’s annual employee fundraiser for Delivering Better Lives (DBL), the UTi Charitable Foundation. The motto of UTi is “Everyone on this planet has a right to a roof over their head, food in their stomach, an education and basic healthcare. Help to make the world a better place.”

Every member of the UTi family participate by walking, running or riding any distance they choose, and having family, friends and coworkers support their efforts. Teams also hold raffles, bake sales, cook-outs and other types of fundraisers. DBL has given smiles to many across the globe. UTi Vietnam, for example, indulged in community service by several potential and successful projects at significant personal cost. In the US, UTi Management supports the Las Vegas community by filling food packs to be provided to children who in the normal course of life receive no food in the family home over the weekend. In Malaysia, DBL is committed to the establishment of a Computer Education Facility for refugees where they extend the learning opportunities to both adults and children looking for a new life in Malaysia.

hmedabad Custom House Agents Association (ACHAA), a body of Custom Brokers working at Ahmedabad recognised by the Commissioner of Customs, undertook to provide stationary to the children of their members stall at concessional rates. An additional concession was given to the girl child. Avdhesh Saraswat,

Member of the Management Committee, who ensured the timely supply of the order, stated his happiness and satisfaction that he experienced while the distribution was an incomparable experience.

Samir J Shah, President of ACHAA explained that it was the moral and social responsibility to support and promote education and that the ACHAA move was a small step towards reducing the cost to parents.

ACHAA also organised a drawing competition for the children of staff members of EXIM trade at Ahmedabad.

NEWS IN BRIEF

AIR  RANCHI TO HAVE CARGO COMPLEX Ranchi airport will now carry perishable and non-perishable products via air as the Jharkhand government joined hands with the Airports Authority of India (AAI) to develop a cargo complex. The Memorandum of Understanding (MoU) was signed by the state industries department and the AAI. Once completed, complex at Ranchi airport will export finished goods both from the industry and food processing sectors. The project will cost around six crore rupees of which state government will fund rupees two crore. A timeframe of one year has been fixed for the project.

“This will boost the food processing sector. Entrepreneurs will be able to export their products within a short time, thus reducing risk of waste,” state industries department director K Ravi Kumar said. Under the MoU, the old cargo complex, whose revamp plan was chalked up as early as 2006, would be developed.

CAL’S NEW PRODUCT FOR ENGINES CAL Cargo Airlines recently announced the launch of CAL Engines – a dedicated product for the safe transportation of airplane engines. CAL Cargo transports every size and type of aircraft engine around the world. CAL Engines leverages CAL’s fleet of 747400’s original freighters, which can accommodate even the largest engine.

Eyal Zagagi, CEO of CAL Cargo Airlines, said, “As an airline, we are especially sensitive to the importance and delicate requirements of engine transport and AOG. Over the past few years our business in the engine segment has

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TIACA welcomes WCO’s new framework

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he International Air Cargo Association (TIACA) has welcomed the World Customs Organisation (WCO) Council’s adoption of important updates to its SAFE Framework of Standards to Secure and Facilitate Global Trade. As part of the changes, the WCO recently formally adopted the ‘7 + 1’ data set as the requirement for risk data analysis, helping to standardise basic Pre-Loading Advance Cargo Information (PLACI) processes. PLACI initiatives have proved that using advance data for civil aviation risk assessment provides an additional layer of security. TIACA is working with regulators globally to ensure that new PLACI regimes are standardised.

The ‘7 + 1’ data elements include the number of pieces, total weight, general cargo description, shipper name and address, and consignee name and address (the seven), plus the house airwaybill number (the one).

Five new members elected: Five new board members, from Asia, Europe, and North America, have been elected to TIACA’s Board of Directors representing a wide range of sectors in the industry. The new officers bring experience of the integrator, chartering, all cargo carrier, and airport sectors.

The new Board members are Amy

Smith, Head of Customs and Regulatory Affairs, DHL Express (USA); Chee Meng Wong, Senior Vice President, Cargo Services, SATS; Russi Batliwala, Chief Executive Officer, Chapman Freeborn Air Chartering Ltd; Oliver Gritz, Chief Commercial Officer, MD Europe, Worldwide Air Logistics Group, and Greg Guillaume, Senior Vice President (Strategic Development), Atlas Worldwide Holdings Ltd.

Temporary cargo service starts at Indore

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ong-awaited domestic-cargo terminal at Indore’s Devi Ahilyabai Holkar Airport started a temporary cargo service recently. The terminal has the potential to handle around 300 tonnes of cargo a month. It will take three months to start permanent cargo terminal at airport. “This is a temporary arrangement till the tender is awarded for common user domestic terminal.

Since all airlines were facing problems regarding cargo shipment, this temporary arrangement might bring relief to

NEWS IN BRIEF

Saudi’s new service to New Delhi AIR 

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audi Airlines Cargo will soon start twice a weekly direct freighter service between Shanghai and New Delhi as part of the airline’s continued expansion strategy. The new direct service offers scheduled main deck capacity using B747-400F aircraft.

“Our focus is to improve connectivity and provide a growing network of destinations and quality operations to our customers and the direct service between Shanghai and New Delhi, has been specifically designed for customers in both cities in order to fulfill their needs and requirements,” said Vikram Vohra, Regional Director Far East adding that if demand

increases then from China to India, we would definitely increase our frequencies.

With the introduction of the new Shanghai-Delhi service, Saudia Cargo has further consolidated its position as a leading freighter operator from China to the middle-East and beyond. Today, the company offers its Chinese shippers 900 tonnes of capacity per week from Shanghai and Guangzhou.

IAG’s first 787-9 on London-Delhi route

increased by an average of 25 per cent per year, testament to our good service and repeat customers. CAL Engines is the seventh product in our portfolio of solutions for non-standard cargo, all of which embody our slogan ‘Challenge accepted’. Our entire operation is built to service non-standard cargo, including specialty products for live animals, dangerous goods, pharma and perishable items, artwork, valuables and other oversize and overweight cargo.”

QATAR TO INTRODUCE FIRST 747 FREIGHTER Qatar Airways Cargo will introduce the first 747 freighter to its expanding fleet on August 1, 2015. The B747400BCF will complement the cargo airline’s expanding freighter fleet providing 112.5 tonnes of capacity dedicated to worldwide charter services.

The aircraft is well known for its load-

I them,” said Manoj Chansoria, Airport Director adding that looking at circumstances now medicines, food products and agricultural products will be easily transported within India.

“Existing passenger flights will carry cargo in their bellies i.e. cargo hold as of now as there are no cargo flights operating to and fro,” said Chansoria. Airlines can start taking bookings for cargo but have to arrange their operators for cargo shipment, he added. “It is estimated that the airlines will be able to lift more than 10 tonnes a day collectively,” he added.

Temporarily, a cargo office has been set up at new terminal building and a scanner had been commissioned for examining the cargo.

AG Cargo will soon begin cargo services on a new Boeing 787-9 Dreamliner on its London Heathrow-Delhi route. The aircraft will make five weekly frequencies beginning October 25. By replacing a passenger-configured 747 on the Delhi service, IAG will be able to offer cargo customers around 17 per cent more capacity per flight. The 787-9 belly-hold capacity allows for seven pallets and 16 tonnes of cargo. Air conditioning systems on the aircraft will enable IAG to maintain a hold temperature to within one degree of accuracy, which will allow temperature-sensitive cargo to be transported safely, IAG said.

Steve Gunning, CEO of IAG Cargo commented: “IAG Cargo is in the midst of one of the biggest fleet upgrade programmes in our group’s history. The B787-9 is at the heart of this transformation, delivering more cargo capacity than its predecessors more efficiently and making it well-suited to our belly-hold operations.”

ing flexibility and with a wide side cargo door the B747F can be loaded quickly and easily. One of the largest palletised cargo aircraft available in the market, it will provide belly freight capacity and main cargo deck capacity with 39 ULD positions.

Qatar Airways Chief Officer Cargo, Ulrich Ogiermann said: “Qatar Airways Cargo is experiencing increased worldwide demand for quality charter services as well as growing local demand with significant infrastructure projects under way in Qatar that require outsized cargo capacity. The addition of the B747 freighter will also provide greater flexibility to our global network by supplementing our existing scheduled services as and when required.”

Cargo & Logistics I August 2015

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NEWS IN BRIEF

SHIPPING AND PORTS  NEW RAIL COMPANY TO CONNECT INDIAN PORTS Ministry of Shipping has decided to develop a new company which will look on last-mile connectivity projects between Indian ports. Rajive Kumar, Secretary, Ministry of Shipping said a company called Indian Rail Port Company has been registered and the Ministry is in the process to select the first Managing Director. The ministry hopes to complete the process soon.

The company would take up lastmile connectivity projects first for the major ports, and eventually for the non-major ports. It will construct, operate and maintain rail and road infrastructure.

SHREYAS SHIPPING INCREASES ITS STRENGTH Shreyas Shipping and Logistics Ltd have taken the delivery of two more containerships. SSL BHARAT, of 29,383 GRT and 2,959 TEUs capacity, which is one of the largest Indian flag container vessels, was delivered at Jebel Ali, Dubai while SSL Chennai, of 8,214 GRT and 700 TEUs capacity, became part of the fleet at Port Klang, Malaysia.

S Ramakrishnan, Chairman and Managing Director of the company and also Chairman of Transworld Group, said, “Shreyas is proud to add 37,597 GRT to Indian tonnage and also to its own existing GRT of 98,696 to raise the total fleet strength to eight Indian flag containerships of 136,293 GRT.” SSL BHARAT will be deployed on the existing PIX2 service, along with SSL Mumbai and SSL Gujarat, on a weekly service frequency between Mundra-Tuticorin-Kattupalli-Vizag-Tuticorin-Cochin-Jebel Ali-Mundra. SSL Chennai will be deployed as a feeder support vessel for the PIX2 service, along with SSL Sagarmala on the North-Eastern region on a service rotation of Vizag-Kolkata-Chittagong-Vizag. The service will cater to the trade requirements of coastal containerised cargo movement be-

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INITIATIVE: The Minister of State for Commerce & Industry (Independent Charge), Nirmala Sitharaman launching the Mobile Apps for e-governance initiatives of MPEDA in New Delhi

Government launches portal for marine products

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n order to facilitate ease of doing business, Central government has launched a couple of e-governance initiatives such as portal and online registration, which would provide single-window clearance to the marine products exporters under the aegis of Marine Products Export Development Authority (MPEDA).

Exporters can get the market price of shrimps by registering themselves with the portal. They would receive an SMS

stating the prices. Initially, only two main varieties of shrimps, namely, L Vannamei and Black Tiger would be covered.

Launching the services, the Minister of Commerce and Industry, Nirmala Sitharaman said exporters would also receive information on the prices of these varieties of shrimps prevalent in Japan, the US and the EU, which would help them in getting a better price realisation.

APSEZ receives LoA

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erala Government has awarded Letter of Award (LoA) to Adani Ports and Special Economic Zone Ltd (APSEZ) to develop the Vizhinjam International Deepwater Seaport Project. APSEZ keenly participated in this tender to ensure that Kerala gets its first deep water multi-cargo port and India its first deep water transshipment port, which has been missing till date.

At present, approximately 1 million TEUs of Indian cargo gets transshipped through foreign ports like Colombo. Development of Vizhinjam port will help in bringing down the cost for Indian trade as the boxes can be transshipped at lower cost from Vizhinjam port, a release from APSEZ pointed out.

The total project cost, as estimated by the Kerala government, is `4,089 crore, and the timeframe for commissioning of the project is 4 years, which will be met by Adani Group based on its past execution record, the release stressed. The proposed

port at Vizhinjam is located in Kerala, 16 km south of the capital Thiruvananthapuram. The port location has been selected to tap the potential of development as a deep water international multi-cargo port.

APSEZ may acquire Gangavaram Port: APSEZ has entered into exclusive talks to acquire Gangavaram Port near Vishakhapatnam in Andhra Pradesh for USD 2.1 billion. This could be the biggest acquisition for Adani Group. Adani’s acquisition offer, through a fully leveraged route, comes more than a year after its USD 1-billion Dhamra Port acquisition on the east coast in Odisha.

NEWS IN BRIEF

Cochin joins deep draught club

SHIPPING AND PORTS  tween India and Bangladesh as well as export-import transshipment through Vizag.

VOC PORT CREATES NEW RECORD

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ochin Port has joined the club of deep draught ports in the world servicing 14.5-metre vessels with the call of the main line container vessel M V Petrohue on July 13, 2015 at the Vallarpadam International Container Transhipment Terminal (ICTT), a release said.

M V Petrohue is part of the shipping service GALEX (GLX—a consortium of ESL, KMTC, RCL and Hanjin) connecting Pusan, Shanghai, Ningbo, Chiwan,

Singapore, Port Klang, Colombo, Cochin, Nhava Sheva, Mundra and Jebel Ali. GALEX, having seven vessels of 6,500 TEUs capacity each, reinforces Cochin Port’s position as a transshipment hub with state-of-the-art facilities. GALEX vessels will call at Cochin on a weekly basis, the release emphasised. Cochin Port Trust had made 14.5 metres draught available at the ICTT in April 2013, the release pointed out.

New technology at port of Liverpool

P

eel Ports, owners and operators of the Port of Liverpool, has achieved a major milestone in its multi-million investment programme to transform the port into Europe’s first semi-automated container terminal. The Navis N4 Terminal Operating System (TOS) and AutoGates are now live and fully operational following the construction and commissioning programmes. The new TOS and 10-lane AutoGates are the latest phase of new infrastructure in the company’s £300 million re-development project to expand and develop Liverpool2. The technology will deliver faster turnaround times through a streamlined process from landside or quayside entry to exit. The fully automated AutoGate system uses state-of-the-art identification technologies to manage gate operations, ensuring that all containers and trucks are automatically identified before entering or exiting the terminal.

By handling 1,61,108 tonnes in a single day, V O Chidambaranar Port, Tuticorin has created a new record on July 10, 2015. Port surpassed the previous single-day record of 1,48,116 tonnes achieved on March 28 this year.

S Anantha Chandra Bose, Chairman of the Port, while thanking all the stakeholders, officers and Port employees for contributing to the achievement, stressed that the Port was continuously striving to further enhance performance

and productivity in order to attract more traffic. The Chairman requested all those associated with the Port to continue their patronage.

ChPT TO SUSPEND USE OF MHC

Advanced OCR (Optical Character Recognition) and line-scan camera technology link with gate operating software that integrates to Peel Port’s existing terminal operating software, Navis N4, and Customer Access Portal (CAP). The security process is further completed using biometric fingerprint identification to further validate driver/load identification and enhance security. The AutoGate equipment was supplied and installed by Kalmar and its partners, APS Technology Group.

Use of Mobile Harbour Cranes (MHC) at Chennai Port is temporarily suspended after a meeting of Chennai Port Trust (ChPT). The suspension is likely to last a month until the management reviews the legal aspects and the representations are made, sources said. The association had objected to the port trust insisting that bulk ships calling at the port should compulsorily use MHC, even if equipped with adequate cranes onboard. Such a clause adds to the cost of cargo handling. With the increased cost adding to higher gang charges, as well as a 110 per cent increase in land rentals, cargo handling at the Chennai Port has reached ‘unsustainable’ levels, leaving the association with no choice but to divert cargoes to nearby cheaper ports, they added.

Cargo & Logistics I August 2015

33

NEWS IN BRIEF

LAND 

New railway line inaugurated

SNAPDEAL TO STRENGTHEN SUPPLY CHAIN SERVICES Snapdeal is planning to strengthen its supply chain across India. The company can invest around $200 million in boosting its supply chain services including warehousing, logistics and training and sale assistance. The company aims to be able to host around 1 million sellers over the next three years. In March, Snapdeal had acquired a 20 per cent stake in Gojavas that helps it with last-mile delivery.

Following the acquisition, Snapdeal had committed to invest between $150mn and $200mn over the next one year in logistics and supply chain.

While Snapdeal already has 1 million square feet of warehousing space, it also plans to add around 2 million square feet within the next two years.

FAIRFAX INDIA TO ACQUIRE NATIONAL COLLATERAL Fairfax India Holdings Corporation is going to acquire approximately 74 per cent of National Collateral Management Services Limited (National Collateral) for an investment of approximately `8 billion. The transaction is subject to customary closing conditions and is expected to be completed later in 2015.

National Collateral is a leading private-sector agricultural commodities storage company in India that has operated for over ten years and is now preparing to expand to take advantage of the significant market potential in India’s under-developed agricultural storage industry. The company operates in the mid-stream agriculture value chain by offering end-to-end solutions in grain procurement, testing, storage and collateral management.

Prem Watsa, Chairman of Fairfax India, said, “We are looking forward to investing in National Collateral which, under the leadership of its CEO, Sanjay Kaul, will continue to build on its

34

August 2015 I Cargo & Logistics

GREAT ACHIEVEMENT: The Union Minister for Railways, Suresh Prabhakar Prabhu flagging off the newly constructed Gandhidham – Tuna Tekra Rail line, through Video conferencing from Rail Bhavan, New Delhi

I

n yet another significant achievement in the field of developing Railway infrastructure in the country, Minister of Railways Suresh Prabhakar Prabhu recently inaugurated the newly constructed broad-gauge railway-line between Gandhidham and Tuna-Tekra Port in Gujarat by flagging off a goods train. Gandhidham is a town in Kutch district of Gujarat, while Tuna-Tekra Port is a port 20 km west of Kandla in Gulf of Kutch in Gujarat.

The project has been complete under the private line/Non-Government

Railway (NGR) Model of Participative Model Policy of 2012 of Ministry of Railways for undertaking rail connectivity and capacity augmentation projects. It is yet another significant initiative under Public Private Partnership (PPP). The project has been funded by Kandla Port Trust (KPT).

The project was approved by Railway Board in October 2013. Construction work commenced in May, 2014 and was completed in record time in May, 2015. Cost of the project is `185 crore.

Flipkart’s new warehouse in UP

F

lipkart has opened its newest warehouse at Dadri, Uttar Pradesh (UP). Flipkart now has 14 warehouses across India. Spread across 30,000 square feet, the Dadri facility will provide customers in UP with access to large selection of product categories including TV, refrigerator, washing machine, microwave, A/C that were unavailable earlier, Flipkart said. It will also supply to Noida, which is part of the 9 districts that will be served by this new delivery centre.

“The warehouse has been set-up to cater to increased consumer demand from the region and to serve the customers with larger selection of brand and products, enabling quicker deliveries,” Flipkart said adding that the facility currently provides mobile and mobile accessories, camera and camera accessories, books, footwear, computers and computer accessories and

white goods.

Flipkart will soon start offering large sports and fitness products and hardlines category products like treadmills, gym cycles, home ladder, gas stove, iron board, cloth dryer and other products, to its customers in UP. The new warehouse, equipped with both inbound and outbound activities, will service the key regions in UP from Noida to Lucknow and Gorakhpur.

NEWS IN BRIEF

DHL and KTZ sign MOU

LAND  position as the largest private-sector agriculture warehouse and grain collateral storage company in India.”

Following the investment by Fairfax India, National Collateral will continue to operate independently. Fairfax India will also collaborate closely with the continuing National Collateral shareholders, which include National Commodity and Derivatives Exchange Limited and a number of Indian banks.

CEVA SIGNS DEAL WITH TANAP

D

HL Global Forwarding has signed a Memorandum of Understanding (MoU) with Kazakhstan Temir Zholy Express (KTZE), a holding company based in Kazakhstan which functions as the national multimodal operator. The MoU will enhance greater rail connectivity and trade between China, Kazakhstan, the Commonwealth of Independent States (CIS) countries and Europe, providing DHL Global Forwarding with additional commercial block train services. This will allow DHL Global Forwarding to enhance the scheduled rail services for customers, increasing the overland rail routes as a complimentary alternative to traditional sea and air freight.

Under the MoU, KTZE will be responsible for operating rail activities from point to point as well as across the China/ Kazakhstan borders. DHL will also focus

on developing its forwarding capabilities along crucial trading routes linking China, Kazakhstan and CIS countries while KTZE will add several logistics service locations to its existing network as well as increasing their overall capabilities. The partnership will see the development of additional rail offering along the South Silk Road trade route to Europe via Kazakhstan.

Steve Huang , CEO, DHL Global Forwarding China said: “We have witnessed tremendous growth in rail freight between Asia and Europe over the last few years; and we see a lot of growth potential in many intermediate trade hubs such as Kazakhstan. Kazakhstan’s own economic development stands to benefit significantly from strong infrastructural links to China and the EU – its two largest trading partners

New container depot in Gujarat

G

ateway Rail Freight Ltd, subsidiary of Gateway Distriparks, will set up its fourth inland container depot at Viramgam near Ahmedabad in Gujarat.

Gateway Distriparks said in a BSE filing that this will be a terminal on the confluence of the two double stack routes between Garhi Harsaru in Gurgaon (Haryana) and two main ports on the west coast at Mundra and Pipavav in Gujarat.

Gateway Distriparks said the terminal

with the railway siding and container yard will be constructed over 35 acres of land and is expected to be operational within a year. All the necessary regulatory approvals from Western Railway for this purpose are in place, the company added.

CEVA Logistics has signed a deal with Trans Anatolian Natural Gas Project (TANAP) to manage the logistics operations for the movement of giant pipes. TANAP aims to transport 16 billion cubic meters of natural gas from the Caspian Sea in Azerbaijan to Turkey, and to Europe through Turkey at an estimated cost of $10 billion.

CEVA will provide Ground transportation, in addition to Contract Logistics services, for the steel pipes, weighing 1.2 million tons, from Ardahan to Edirne in Turkey, passing through 20 provinces over a distance of 1,850 kilometers. The project is planned over three distinct phases and will be completed in 2018. Within the scope of the project 135,884 unit 56 inch (1,422 mm) and 48 inch (1,219mm) steel pipes will be required to be transported to key locations.

Two year contract with Volvo: CEVA Logistics has also won a two year extension for customs brokerage services with Volvo Cars of North America. The company, headquartered in Rockleigh, New Jersey, is the US subsidiary of the Swedish luxury automotive manufacturer. CEVA’s US customs brokerage team had been providing services to Volvo through an initial one year contract, which was subsequently extended. The service is provided from its CEVA’s Detroit offices, additionally enabling access to the company’s deep automotive sector expertise.

Cargo & Logistics I August 2015

35

NEWS IN BRIEF

INFRA  VIZAG TO GET LOGISTIC PARK Visakhapatnam is all set to get a world-class logistic park and free trade warehousing zone. Sravan Group has decided to build the infrastructure in the city which is expected to be operational by 2017 in the city limits. The logistic park and free trade warehousing zone will be developed keeping in view the efforts to make Visakhapatnam a container hub.

The group has set a target to increase its turnover to `90 crore during the current fiscal. The group will also develop a CFS in 100 acres in Pedagantyada mandal for which civil work has already been launched. It will have empty yard, repair yard, warehousing and customs bonding facility for export and import cargo. The new CFS will be operational by this year end with state-of-the art facilities.

FIRST PRIVATE AFS ALL SET TO OPEN India’s first Air Freight Station (AFS) in the private sector is to start its operations soon. Set up by the city-based Indev Logistics at Irungattukottai near Chennai at a cost of `50 crore, the AFS will reduce congestion at the gateway airport and enable carrier operators to choose the AFS as a final destination for cargo delivery. It is spread over an area of around 20,000 sqft. The advantages of the AFS include faster evacuation of cargo from the major gateway airports; an integrated supply chain, minimised transaction logistics cost; and tracking of the mobility and movement.

“The unit loads or ULDs will be moved directly from aircraft to bonded trucks and those will be moved to the facility where all similar operations to what is available at the airport will be provided. The Customs officers will be present there round the clock to do the entire formalities, including the online filing, assessment, inspection and delivery,” said Xavier Britto, Chairman, Indev AFS.

36

August 2015 I Cargo & Logistics

Government plans to work on ten expressways

I

n order to boost road infrastructure for faster connectivity, the Central Government is planning to start work on 10 world-class express highways on the pattern of Mumbai-Pune Express Highway, which will not only reduce travel time but also propel the country’s economic growth, Road Transport and Highways Minister Nitin Gadkari confirmed adding that most of the proposed ten projects including 260-km Bengaluru-Chennai expressway will be con-

crete cement highways. The proposed projects include the Nagpur-Mumbai, Bangalore-Chennai, Baroda-Mumbai, Katra-Amritsar and Ludhiana-Delhi expressways.

“The Nagpur-Mumbai express highway, connecting two major cities Nagpur and Aurangabad in Maharashtra with capital city Mumbai, will also save significant time. Ludhiana-Delhi expressway is proposed on new alignment linking the national Capital with Ludhiana, which would also have a separate node to connect Chandigarh and the same is likely to reduce distance between Delhi and Ludhiana by 50 km,” Gadkari said.

The minister further stated that all these express highways are going to be world class matching the quality and specifications in advanced nations and once completed would result in huge savings in fuel cost.

MPT reclaims land for new terminal

T

he Mormugao Port Trust (MPT) is planning to develop a multipurpose cargo terminal on public private partnership (PPP) mode at west of breakwater at the cost of `950 crore. The port trust has proposed to reclaim three lakh square metres (75 acres) of water area. MPT has asked the Goa State Pollution Control Board (GSPCB) to conduct an environmental public hearing for the project. MPT has already done Environment Impact Assessment (EIA) and the report has been submitted to the board. GSPCB has asked MPT to give more copies of the EIA so that it can be distributed to stakeholders before conducting a public hearing. The proposed site is to the west of the breakwater wherein a new breakwater of length 825 metres will have to be constructed.

The total quay length will be about 600 metres with two berths. The dredged depth will be 14.10 meters and both berths will handle a variety of general cargos like finished steel products, fertilizers, granites and containers. MPT said that the proposed berth will handle cargo vessels of size up to 1,20,000 DWT (deadweight tonnage) and the reclaimed land will be mainly required for construction of the wagon tippling system, stockpiling of cargo and rail sidling.

NEWS IN BRIEF

AWARDS

FedEx FedEx Express has been recognised among the top 20 best companies to work for in India by the Great Place to Work Institute. FedEx outdid its previous year’s ranking by being placed fourteenth in the list of best companies to work for and second among companies in the transportation industry.

The survey is India’s largest annual study of workplace excellence and is based on confidential employee feedback and an audit of management processes by the Great Place to Work Institute. More than 550 organisations undertook the assessment this year to contribute to the recognition of the best workplaces across India.

IES AWARD Institute of Economic Studies (IES) awarded Manoj Sharma, PRO, Central Railside Warehouse Company (CRWC) for his outstanding performance in the field of public relations.

CEVA CEVA Logistics was presented with the Best Logistics Provider - Seafreight award at the Asia Freight, Logistics and Supply Chain (AFLAS) Awards held recently in Hong Kong. The awards, organised by Asia Cargo News, are designed to honour leading organisations in air and shipping lines; air and sea ports; and logistics, 3PLs and other associated industry professionals, for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability.

Schiphol Amsterdam Airport Schiphol has won the award for Best Airport in Europe, in this year’s Asian Freight, Logistics and Supply Chain (AFLAS) Awards. The annual awards hosted and organised by Asia Cargo News, recognise leading service providers including air and shipping lines, air and sea ports and logistics companies. Winners were decided by the votes of the publication’s 15,000 readers, in a two-stage process.

DHL DHL scooped its seventh consecutive Trusted Brand Award in the ‘Airfreight/Courier Service’ category in Asia at the highly regarded Reader’s Digest Trusted Brands Awards 2015. DHL Express Malaysia retained its position as market leader with another Gold award; it was joined at the top by DHL Express Philippines, voted Gold by readers.

VRL LOGISTICS Vijayanand Travels, division of VRL Logistics, received awards in two categories for excellence in bus transport service- national and for excellence in bus transport service- south. For the first time abhibus.com jointly with Ashok Leyland had sponsored the Award. Award was collected by Prabhu Salageri, Vice President, Vijayanand Travels on behalf of VRL.

Narendra Kale Kale Logistics Solutions Founder and Board Member Narendra Kale was awarded excellence in Business and Industry BMM Puraskar 2015 from Brihan Maharashtra Mandal (BMM)–an apex body of all Maharashtrians in USA.

EXCELLENCE AWARD: (Left to right) Rajender Singh, Pro, IES; Sangeeta Singh, Executive Director, IES; Vishnu Deo Sai, Minister for Steel and Mines; Bhishma Narain Singh, Former Governor of Tamilnadu presenting the award to Manoj Sharma, Pro, CRWS. Randhir Singh, Senior Advisor, CRWC is also seen.

APPOINTMENT

American Airlines In order to better serve its rapidly growing international network, American Airlines Cargo has appointed Richard Hartmann to the newly created position of Regional Sales Manager – Cargo, South Asia, Middle East and Africa. In his new role, Hartmann is in charge of both sales development in the existing countries served by the carrier in the region and also extending the airline’s reach into new territories such as Africa.

Hartmann has more than 30 years of experience in the air cargo industry in both the airline and freight forwarding sectors, including working in Africa. He joined Cargo in 2011 as a global key account manager and believes there is tremendous scope for development of its services across his new region.

Cargo & Logistics I August 2015

37

PRODUCT

Lufthansa counts on IBS

I

t was a defining moment for IBS softwares when Lufthansa Cargo went live with IBS’ iCargo IT solution at 120 stations in its network, including the three hubs – Vienna, Munich and Frankfurt. Frankfurt is not only Lufthansa Cargo’s main hub for its global operations, but also one of Europe’s busiest cargo gateways.

In a press release IBS said “This transformation was achieved through a seamless system cutover, with Lufthansa Cargo Frankfurt operations in full swing and without major business disruptions. The system switch-over has been keenly followed by industry stakeholders. With this migration, Lufthansa Cargo is well on its way to modernise its core IT system in use for multiple decades.”

Developed in 2006 in collaboration with six global airlines, iCargo is the new generation Cargo Management Solution from IBS that manages the cargo movement from shipper to consignee. Its key strength is its fully integrated, single database, electronic information processing backbone bringing enhanced data integrity and lower information processing costs. iCargo is capable of addressing the needs of all kinds of cargo operations – large or small, combination or pure freight-

38

August 2015 I Cargo & Logistics

BIG CHANGE: Karl-Rudolf Rupprecht, Executive Board Member - Operations, Lufthansa Cargo and VK Mathews Executive Chairman IBS Software at the switch-over ceremony held at Lufthansa Cargo Warehouse, Frankfurt

er and is the chosen cargo management solution for over 20 leading airlines across the globe including Lufthansa, All Nippon Airways, British Airways, Indigo, Turkish, Qantas, South African Airways and Nippon Cargo Airlines.

The iCargo system will be operated by around 4,500 Lufthansa Cargo users across the world and will support the global cargo operations of Lufthansa Cargo to over 300 destinations spread across 100 countries.

The IT modernisation project - a key component of the Lufthansa Cargo 2020 strategy - replaces several key businesses IT systems with a single platform integrating all the participants of the transport chain.

“IBS has had the best offering in the industry and our decision to jointly execute the project has verified to be the very best.

The commitment of the IBS team is as extraordinary as the seamless collaboration with the offshore team, both being paramount for the overall project success. iCargo has proven to be the right product regardless of station or hub size and delivered countless value driving functionalities. Our Lufthansa Cargo 2020 strategy has further materialised. The modernised IT platform from now onwards acts a lever - enabling us to efficiently introduce innovation and continuously the best products for our custom-

IBS

Lufthansa Cargo has taken a big leap forward in its IT migration project as it has gone live on IBS’ iCargo IT solution at 120 stations in its network, including its three hubs of Frankfurt, Munich and Vienna

ers” said Karl-Rudolf Rupprecht, Member of the Executive Board of Lufthansa Cargo.

“This is indeed a defining moment for IBS, proving beyond doubt that iCargo is the No.1 air cargo management solution in the world. The successful cutover is a testimony to IBS’ capability, professionalism and commitment to support the requirements of global organisations such as Lufthansa Cargo, renowned for its disciplined business practices. In fact, I have been privy to several instances where senior functionaries described the switchover as one of the ‘Best system replacement projects ever in the history of Lufthansa Group.’ iCargo will, I am sure, add significant business value to Lufthansa Cargo to achieve increased operational efficiencies and growth. ” said VK Mathews, Executive Chairman, IBS Group.

Headquartered at the Technopark campus, India, IBS Software was one of the first companies that opened in the Technopark campus in the late 90s and has now become a leading global provider of new generation IT solutions to the global travel, transportation and logistics industry and operates from ten business centres in the Americas, Europe, Asia-Pacific and Middle East and Africa.

STATS

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

(*) TENTATIVE

(IN ' 000 TONNES)

PORTS

APRIL TO JUNE

% VARIATION

TRAFFIC

AGAINST PREV.

2015* 2

1 KOLKATA Kolkata Dock System Haldia Dock Complex

2014 3

YEAR TRAFFIC 4

3829

3045

25.75

8551

6837

TOTAL: KOLKATA

12380

9882

25.07 25.28

PARADIP

18249

17318

5.38

VISAKHAPATNAM

13325

15336

-13.11

7729

7175

7.72

13398

12837

4.37

V.O. CHIDAMBARANAR

9466

7415

27.66

COCHIN

5541

5509

0.58

NEW MANGALORE

8800

9685

-9.14

MORMUGAO

4138

3503

18.13

15462

14571

6.11

JNPT

16345

16437

-0.56

KANDLA

24616

23358

5.39

149449

143026

4.49

KAMARAJAR (ENNORE) CHENNAI

MUMBAI

TOTAL:

Source:INDIAN PORTS ASSOCIATION

Cargo and Logistics

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STATS

INDIAN PORTS ASSOCIATION

TRAFFIC HANDLED AT MAJOR PORTS TRAFFIC HANDLED AT MAJOR PORTS

(DURING APRIL VIS-A-VIS APRIL TO JUNE’2014) (DURING APRILTO TO JUNE’2015* JUNE'2015* VIS-A-VIS APRIL TO JUNE'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-JUNE'2015

154

6

-

23

-

59

2020

127

1567

3829

TRF APRIL-JUNE'2014

130

48

6

-

-

6

1844

118

1011

3045

TRF APRIL-JUNE'2015

1755

303

52

78

503

1724

310

20

3826

8551

TRF APRIL-JUNE'2014

1564

404

46

156

333

1153

401

25

2780

6837

TRF APRIL-JUNE'2015

1909

309

52

101

503

1783

2330

147

5393

12380

TRF APRIL-JUNE'2014

1694

452

52

156

333

1159

2245

143

3791

9882

TRF APRIL-JUNE'2015

4685

120

-

880

7660

2357

32

1

2515

18249

TRF APRIL-JUNE'2014

4603

572

51

1163

6789

1836

18

1

2286

17318

TRF APRIL-JUNE'2015

4335

995

400

201

787

1240

1070

63

4297

13325

TRF APRIL-JUNE'2014

3820

3029

296

169

622

1375

1150

64

4875

15336

TRF APRIL-JUNE'2015

951

-

-

-

6249

-

-

-

529

7729

TRF APRIL-JUNE'2014

649

-

-

-

5886

141

-

-

499

7175

TRF APRIL-JUNE'2015

3430

-

28

83

-

-

7675

398

2182

13398

TRF APRIL-JUNE'2014

3275

39

34

58

-

-

7321

379

2110

12837

TRF APRIL-JUNE'2015

138

71

75

253

2667

-

2898

148

3364

9466

TRF APRIL-JUNE'2014

144

-

101

157

2079

-

2628

134

2306

7415

TRF APRIL-JUNE'2015

3453

-

-

70

-

-

1329

94

689

5541

TRF APRIL-JUNE'2014

3506

-

45

74

48

-

1264

89

572

5509

TRF APRIL-JUNE'2015

5738

-

184

38

1074

788

303

19

675

8800

TRF APRIL-JUNE'2014

5225

763

214

28

744

1848

278

17

585

9685

TRF APRIL-JUNE'2015

124

201

55

-

190

2003

65

5

1500

4138

TRF APRIL-JUNE'2014

141

228

32

-

247

1717

49

4

1089

3503

TRF APRIL-JUNE'2015

8155

-

23

57

1428

-

108

10

5691

15462

TRF APRIL-JUNE'2014

8437

-

31

75

1087

-

153

13

4788

14571

TRF APRIL-JUNE'2015

1207

-

-

-

-

-

14394

1108

744

16345

TRF APRIL-JUNE'2014

999

-

-

-

-

-

14729

1100

709

16437

TRF APRIL-JUNE'2015

13693

274

1229

32

3531

-

-

-

5857

24616

TRF APRIL-JUNE'2014

14111

134

666

276

1793

26

-

-

6352

23358

TRF APRIL-JUNE'2015

47818

1970

2046

1715

24089

8171

30204

1993

33436

149449

TRF APRIL-JUNE'2014

46604

5217

1522

2156

19628

8102

29835

1944

29962

143026

2.60

-62.24

34.43

-20.45

22.73

0.85

1.24

2.52

11.59

4.49

% Variation from previous year

25.75

25.07

25.28

5.38

-13.11

7.72

4.37

27.66

0.58

-9.14

18.13

6.11

-0.56

5.39

4.49

Source:INDIAN PORTS ASSOCIATION

40

August 2015 I Cargo & Logistics

STATS

INTERNATIONAL FREIGHT SL. NO.

AIRPORT

MAY 2015

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

(A) 18 INTERNATIONAL AIRPORTS 1

CHENNAI

18573

19322

-3.9

36668

37749

-2.9

2

KOLKATA

4038

3904

3.4

7563

7400

2.2

3

AHMEDABAD

1974

1329

48.5

3478

2772

25.5

4

GOA

82

89

-7.9

178

212

-16.0 14.9

5

TRIVANDRUM

2692

2136

26.0

4849

4221

6

CALICUT

966

1707

-43.4

3352

3697

-9.3

7

LUCKNOW

260

122

113.1

463

242

91.3

8

GUWAHATI

0

1

-100.0

1

4

-75.0

9

JAIPUR

80

25

220.0

198

65

204.6

10

SRINAGAR

0

0

-

0

0

-

11

BHUBANESWAR

0

0

-

0

0

-

12

COIMBATORE

99

71

39.4

192

147

30.6

13

MANGALORE

73

16

356.3

148

41

261.0

14

TRICHY

580

376

54.3

1208

796

51.8

15

AMRITSAR

21

27

-22.2

54

42

28.6

16

VARANASI

0

0

-

2

0

-

17

PORTBLAIR

0

0

0

0

18

IMPHAL TOTAL

0 29438

0 29125

1.1

0 58354

0 57388

1.7

(B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

42495

36843

15.3

84347

71466

18.0

20

MUMBAI (MIAL)

42878

40544

5.8

84901

79115

7.3

21

BANGALORE (BIAL)

14229

13441

5.9

28529

26021

9.6

22

HYDERABAD (GHIAL)

5108

4607

10.9

10176

9056

12.4

23

COCHIN(CIAL)

6488

6020

7.8

10845

10445

3.8

24

NAGPUR (MIPL)

35

34

2.9

78

63

23.8

TOTAL

111233

101489

9.6

218876

196166

11.6

(C) 8 CUSTOM AIRPORTS 25 26

0

-

0

0

-

0

-

0

0

-

PATNA

0

0

-

0

0

-

0

-

8

0

-

0

-

0

0

-

CHANDIGARH

27 28

0 0

PUNE

VISAKHAPATNAM

8

29

BAGDOGRA

0

30

MADURAI

0

0

-

0

0

-

31

AURANGABAD

0

0

-

0

0

-

32

GAYA TOTAL

0

0

-

0

0

-

8

0

-

8

0

-

0

0

-

0

0

-

(D) 45 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

0

0

-

0

0

-

140679

130614

7.7

277238

253554

9.3

Source: AIRPORTS AUTHORITY OF INDIA

Cargo & Logistics I August 2015

41

STATS DOMESTIC FREIGHT DOMESTIC FREIGHT

SL. NO.

AIRPORT

(A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 2 KOLKATA 3 AHMEDABAD 4 GOA 5 TRIVANDRUM 6 CALICUT 7 LUCKNOW 8 GUWAHATI 9 JAIPUR 10 SRINAGAR 11 BHUBANESWAR 12 COIMBATORE 13 MANGALORE 14 TRICHY 15 AMRITSAR 16 VARANASI 17 PORTBLAIR 18 IMPHAL TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 20 MUMBAI (MIAL) 21 BANGALORE (BIAL) 22 HYDERABAD (GHIAL) 23 COCHIN(CIAL) 24 NAGPUR (MIPL) TOTAL (C) 8 CUSTOM AIRPORTS 25 PUNE 26 CHANDIGARH 27 PATNA 28 VISAKHAPATNAM 29 BAGDOGRA 30 MADURAI 31 AURANGABAD 32 GAYA TOTAL (D) 45 DOMESTIC AIRPORTS 33 INDORE 34 JAMMU 35 RAIPUR 36 AGARTALA 37 VADODARA 38 RANCHI 39 UDAIPUR 40 BHOPAL 41 LEH 42 DEHRADUN 43 RAJKOT 44 DIBRUGARH 45 JODHPUR 46 TIRUPATI 47 VIJAYAWADA 48 SILCHAR 49 LENGPUI(AIZWAL) 50 JUHU 51 RAJAHMUNDRY 52 BHUJ 53 SURAT 54 JABALPUR 55 BELGAUM 56 TUTICORIN 57 JAMNAGAR 58 BHAVNAGAR 59 KHAJURAHO 60 GUGGAL(KANGRA) 61 ALLAHABAD 62 DIMAPUR 63 JORHAT 64 HUBLI 65 AGATTI 66 DIU 67 GORKHPUR 68 PORBANDAR 69 AGRA 70 BHUNTAR 71 BARAPANI (SHILLONG) 72 GWALIOR 73 MYSORE 74 LAKHIMPUR (LILABARI) 75 PANTNAGAR 76 SHOLAPUR 77 KANPUR(Chakeri) (D) 45 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

42

MAY 2015

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

7229 8352 3825 317 142 36 238 1279 451 410 529 558 17 0 18 65 331 394 24191

6357 7943 3314 170 118 8 241 714 96 436 454 617 22 0 11 133 197 363 21194

13.7 5.1 15.4 86.5 20.3 350.0 -1.2 79.1 369.8 -6.0 16.5 -9.6 -22.7 63.6 -51.1 68.0 8.5 14.1

14251 15407 7359 632 203 62 413 2338 693 811 1099 1121 33 0 30 127 576 717 45872

12354 14862 6514 413 244 14 466 1358 164 751 895 1173 43 0 29 166 437 683 40566

23585 17660 9808 4142 1033 647 56875

21443 17792 8732 3431 955 414 52767

10.0 -0.7 12.3 20.7 8.2 56.3 7.8

46812 34641 18730 8036 1988 1118 111325

41509 32702 16375 6517 1845 950 99898

2397 545 433 90 0 97 108 0 3670

2416 505 504 152 227 92 99 0 3995

-0.8 7.9 -14.1 -40.8 -100.0 5.4 9.1 -8.1

4507 927 876 181 261 149 223 0 7124

4203 918 889 340 411 157 183 07101

578 174 362 462 187 313 4 90 182 11 15 47 1 0 0 17 27 31 1 2 0 0 0 5 5 0 0 0 0 39 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2554 0 87290

590 130 310 563 215 276 0 58 181 0 10 20 0 0 0 30 21 30 0 2 0 0 0 3 16 0 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2464 080420

-2.0 33.8 16.8 -17.9 -13.0 13.4 55.2 0.6 50.0 135.0 -43.3 28.6 3.3 0.0 66.7 -68.8 333.3 3.7

1087 344 694 909 353 664 9 180 352 20 27 89 2 0 0 40 53 63 1 4 0 0 0 7 15 1 0 0 0 72 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4988 0 169309

1071 259 576 1043 417 513 0 125 383 0 20 37 1 0 0 66 46 61 0 4 0 0 0 7 35 0 0 0 0 23 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4689 0152254

August 2015 I Cargo & Logistics

8.5

ANNEXURE-IVC

ANNEXURE-IVB

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

SL. NO.

AIRPORT

(A) 18 INTERNATIONAL AIRPORTS 1 15.4 CHENNAI 2 3.7 KOLKATA 3 13.0 AHMEDABAD 4 53.0 GOA 5 -16.8 TRIVANDRUM 6 342.9 CALICUT 7 LUCKNOW -11.4 8 72.2 GUWAHATI 9 322.6 JAIPUR 10 SRINAGAR 8.0 11 BHUBANESWAR 22.8 12 COIMBATORE -4.4 13 MANGALORE -23.3 14 TRICHY 15 AMRITSAR 3.4 16 VARANASI -23.5 17 PORTBLAIR 31.8 18 IMPHAL 5.0 13.1 TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 12.8 20 MUMBAI (MIAL) 5.9 21 BANGALORE (BIAL) 14.4 22 HYDERABAD (GHIAL) 23.3 23 COCHIN(CIAL) 7.8 17.7 24 NAGPUR (MIPL) 11.4 TOTAL (C) 8 CUSTOM AIRPORTS 7.2 25 PUNE 1.0 26 CHANDIGARH -1.5 27 PATNA -46.8 28 VISAKHAPATNAM -36.5 29 BAGDOGRA -5.1 30 MADURAI 21.9 31 AURANGABAD 32 GAYA 0.3 TOTAL (D) 45 DOMESTIC AIRPORTS 33 INDORE 1.5 34 JAMMU 32.8 35 RAIPUR 20.5 36 AGARTALA -12.8 37 VADODARA -15.3 38 RANCHI 29.4 39 UDAIPUR 40 BHOPAL 44.0 41 LEH -8.1 42 DEHRADUN 43 RAJKOT 35.0 44 DIBRUGARH 140.5 45 JODHPUR 100.0 46 TIRUPATI 47 VIJAYAWADA 48 SILCHAR -39.4 49 LENGPUI(AIZWAL) 15.2 50 JUHU 3.3 51 RAJAHMUNDRY 52 BHUJ 0.0 53 SURAT 54 JABALPUR 55 BELGAUM 56 TUTICORIN 0.0 57 JAMNAGAR -57.1 58 BHAVNAGAR 59 KHAJURAHO 60 GUGGAL(KANGRA) 61 ALLAHABAD 62 DIMAPUR 213.0 63 JORHAT 0.0 64 HUBLI 65 AGATTI 66 DIU 67 GORKHPUR 68 PORBANDAR 69 AGRA 70 BHUNTAR 71 BARAPANI (SHILLONG) 72 GWALIOR 73 MYSORE 74 LAKHIMPUR (LILABARI) 75 PANTNAGAR 76 SHOLAPUR 77 KANPUR(Chakeri) 6.4 (D) 45 DOMESTIC AIRPORTS (E) OTHER AIRPORTS 11.2 GRAND TOTAL (A+B+C+D+E)

MAY 2015

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

25802 12390 5799 399 2834 1002 498 1279 531 410 529 657 90 580 39 65 331 394 53629

25679 11847 4643 259 2254 1715 363 715 121 436 454 688 38 376 38 133 197 363 50319

0.5 4.6 24.9 54.1 25.7 -41.6 37.2 78.9 338.8 -6.0 16.5 -4.5 136.8 54.3 2.6 -51.1 68.0 8.5 6.6

50919 22970 10837 810 5052 3414 876 2339 891 811 1099 1313 181 1208 84 129 576 717 104226

50103 22262 9286 625 4465 3711 708 1362 229 751 895 1320 84 796 71 166 437 683 97954

1.6 3.2 16.7 29.6 13.1 -8.0 23.7 71.7 289.1 8.0 22.8 -0.5 115.5 51.8 18.3 -22.3 31.8 5.0 6.4

66080 60538 24037 9250 7521 682 168108

58286 58336 22173 8038 6975 448 154256

13.4 3.8 8.4 15.1 7.8 52.2 9.0

131159 119542 47259 18212 12833 1196 330201

112975 111817 42396 15573 12290 1013 296064

16.1 6.9 11.5 16.9 4.4 18.1 11.5

-0.8 7.9 -14.1 -35.5 -100.0 5.4 9.1

4507 927 876 189 261 149 223 0 7132

2397 545 433 98 0 97 108 0 3678 578 174 362 462 187 313 4 90 182 11 15 47 1 0 0 17 27 31 1 2 0 0 0 5 5 0 0 0 0 39 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2554 0 227969

2416 505 504 152 227 92 99 03995

-7.9

4203 918 889 340 411 157 183 07101

7.2 1.0 -1.5 -44.4 -36.5 -5.1 21.9 0.4

-2.0 1.5 590 1087 1071 33.8 32.8 130 344 259 16.8 20.5 310 694 576 -17.9 -12.8 563 909 1043 -13.0 -15.3 215 353 417 13.4 29.4 276 664 513 09 055.2 44.0 58 180 125 0.6 -8.1 181 352 383 020 050.0 35.0 10 27 20 135.0 140.5 20 89 37 100.0 02 1 00 000 0-43.3 -39.4 30 40 66 28.6 15.2 21 53 46 3.3 3.3 30 63 61 01 00.0 0.0 2 4 4 00 000 000 066.7 0.0 3 7 7 -68.8 -57.1 16 15 35 01 000 000 000 0333.3 213.0 9 72 23 0.0 02 2 00 000 000 000 000 000 000 000 000 000 000 000 000 000 02464 3.7 4988 4689 6.4 00 0211034 8.0 446547 405808 10.0 Source: AIRPORTS AUTHORITY OF INDIA

16-17-18

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STATS

REGIONWISE TRENDS IN AIR TRAFFIC REGIONWISE TRENDS IN AIR TRAFFIC MAY 2015 AND APRILMAY 2015-16 MAY 2015 AND APRIL- MAY 2015-16 INTERNATIONAL REGIONS

MAY 2015

2014

% CHANGE

ANNEXURE-V

DOMESTIC

APRIL -MAY 2015-16

2014-15

% CHANGE

TOTAL

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

% CHANGE

MAY 2015

2014

% CHANGE

ANNEXURE-V APRIL -MAY

2015-16

2014-15

% CHANGE

AIRCRAFT MOVEMENTS(IN NUMBERS)

EASTERN REGIONS WESTERN

1839

1353

35.9 3664 INTERNATIONAL

2674

37.0

7838 MAY

7231

SOUTHERN

12722 2015

NORTHERN

8015

7817

2.5

15761

15502

1.7

NORTH EAST EASTERN TOTAL WESTERN

38 1839 30452 7838

34 1353 28235 7231

11.8 35.9 7.9 8.4

84 3664 59987 15396

68 2674 55915 14394

23.5 37.0 7.3 7.0

8.4 15396 7.0 APRIL -MAY 14394 % CHANGE % CHANGE 11800 7.8 2015-16 25082 2014-15 23277 7.8 2014

12576

12051

33591 MAY

30531

4.4 24840 DOMESTIC

23691

4.8

10.0 66221 10.6 APRIL -MAY 59874 % CHANGE % CHANGE 33798 2014 31562 7.1 2015-16 65595 2014-15 61532 6.6 2015 NUMBERS) 31619 AIRCRAFT 29005 MOVEMENTS(IN 9.0 60558 57046 6.2 4611 12576 116195 33591

4356 12051 107505 30531

5.9 4.4 8.1 10.0

9064 24840 226278 66221

8656 23691 210799 59874

PASSENGERS7.1 (IN NUMBER) 31562 65595

4.7 4.8 7.3 10.6

14415

13404

41429 MAY

37762

7.5TOTAL 28504

9.7 % CHANGE 43362 7.3 2014

46520 2015

26365

8.1

81617 APRIL -MAY 74268

9.9 % CHANGE 84809 6.9 2014-15

90677 2015-16

39634

36822

7.6

76319

72548

5.2

4649 14415 146647 41429

4390 13404 135740 37762

5.9 7.5 8.0 9.7

9148 28504 286265 81617

8724 26365 266714 74268

4.9 8.1 7.3 9.9

SOUTHERN

12722

11800

7.8

25082

23277

7.8

33798

EASTERN NORTHERN

189610 8015

151261 7817

25.4 2.5

370352 15761

289410 15502

28.0 1.7

1558107 31619

WESTERN NORTH EAST

1241156 38

1138582 34

9.0 11.8

2343275 84

2171958 68

7.9 23.5

4255168 4611

3594190 4356

18.4 5.9

8268574 9064

6743110 8656

22.6 4.7

5496324 4649

4732772 4390

16.1 5.9

10611849 9148

8915068 8724

19.0 4.9

SOUTHERN TOTAL

1996089 30452

1802727 28235

10.7 7.9

3831123 59987

3430687 55915

11.7 7.3

3868065 116195

3144443 107505

23.0 8.1

7430184 226278

5884008 210799

26.3 7.3

5864154 146647

4947170 135740

18.5 8.0

11261307 286265

9314695 266714

20.9 7.3

NORTHERN

1188120

1124664

5.6

2377145

2254177

5.5

4060707

NORTH EAST EASTERN TOTAL WESTERN

1977 189610 4616952 1241156

1767 151261 4219001 1138582

11.9 25.4 9.4 9.0

4324 370352 8926219 2343275

2275 289410 8148507 2171958

90.1 28.0 9.5 7.9

427861 1558107 14169908 4255168

SOUTHERN

1996089

1802727

10.7

3831123

3430687

11.7

EASTERN NORTHERN

4038 1188120

3904 1124664

3.4 5.6

7563 2377145

7400 2254177

2.2 5.5

44969 1977

41996 1767

7.1 11.9

88635 4324

82162 2275

SOUTHERN TOTAL

48816 4616952

47696 4219001

2.3 9.4

95975 8926219

NORTHERN

42856

37017

15.8

85064

NORTH EAST EASTERN TOTAL WESTERN

40380 139207 44969

39041 136543 41996

-100.0 3.4 2.0 7.1

75631 277238 88635

SOUTHERN

48816

47696

2.3

95975

92173

4.1

NORTHERN

42856

37017

15.8

85064

71815

18.4

NORTH EAST TOTAL

0 139207

1 136543

-100.0 2.0

1 277238

4 253554

-75.0 9.3

WESTERN NORTH EAST

1332375 29005

MAY 2015

61532

6.6

46520

43362

7.3

90677

84809

6.9

2489172 57046

18.9 6.2

1747717 39634

1483636 36822

17.8 7.6

3331179 76319

2778582 72548

19.9 5.2

6623954

16.8

5248827

4589248

14.4

10111524

8878131

13.9

839599 2960827 27233563 8268574

722833 2489172 22463077 6743110

16.2 18.9 21.2 22.6

429838 1747717 18786860 5496324

370996 1483636 16123822 4732772

15.9 17.8 16.5 16.1

843923 3331179 36159782 10611849

725108 2778582 30611584 8915068

16.4 19.9 18.1 19.0

3868065

FREIGHT (IN 3144443 23.0TONNES) 7430184

5884008

26.3

5864154

4947170

18.5

11261307

9314695

20.9

10320 4060707

9911 3464584

4.1 17.2

19577 7734379

18583 6623954

5.3 16.8

14358 5248827

13815 4589248

3.9 14.4

27140 10111524

25983 8878131

4.5 13.9

7.9 90.1

25862 427861

25126 369229

2.9 15.9

50210 839599

46698 722833

7.5 16.2

70831 429838

67122 370996

5.5 15.9

138845 843923

128860 725108

7.7 16.4

92173 8148507

4.1 9.5

23158 14169908

20487 11904821

13.0 19.0

44762 27233563

39069 22463077

14.6 21.2

71974 18786860

68183 16123822

5.6 16.5

140737 36159782

131242 30611584

7.2 18.1

71815

18.4

25684

23176 10.8TONNES)50540 FREIGHT (IN

44646

13.2

68540

60193

13.9

135604

116461

16.4

74004 253554 82162

-75.0 2.2 9.3 7.9

2266 10320 87290 25862

1720 9911 80420 25126

31.7 4.1 8.5 2.9

4220 19577 169309 50210

3258 18583 152254 46698

29.5 5.3 11.2 7.5

2266 14358 227969 70831

1721 13815 211034 67122

31.7 3.9 8.0 5.5

4221 27140 446547 138845

3262 25983 405808 128860

29.4 4.5 10.0 7.7

23158

20487

13.0

44762

39069

15.9 16.9 19.0 18.4

REGIONWISE TRAFFIC 25684 23176 SHARE 10.8 IN AIR 50540 44646

2015-16 3258 2266 MAY 2015 1720 AND APRIL31.7 MAY4220 87290 80420 8.5 169309 152254

14.6

71974

68183

5.6

140737

131242

7.2

13.2

68540

60193

13.9

135604

116461

16.4

29.5 11.2

2266 227969

1721 211034

31.7 8.0

4221 446547

3262 405808

29.4 10.0

REGIONWISE SHARE IN AIR TRAFFIC REGIONWISE SHARE IN AIR TRAFFIC MAY 2015 AND APRIL- MAY 2015-16 MAY 2015 AND APRIL- MAY 2015-16 DOMESTIC

APRIL -MAY

2014

2960827 60558

3464584 17.2 7734379 PASSENGERS (IN NUMBER) 369229 1332375 11904821 3594190

INTERNATIONAL

REGIONS

16.9 9.0

2015-16

MAY

2014-15

EASTERN REGIONS WESTERN

6.04

4.79 INTERNATIONAL 6.11

25.74 MAY

25.61

SOUTHERN

41.78 2015

2014 41.79

41.81 2015-16

2014-15 41.63

NORTHERN

26.32

27.69

26.27

27.72

NORTH EAST EASTERN TOTAL WESTERN

0.12 6.04 100.00 25.74

0.12 4.79 100.00 25.61

0.14 6.11 100.00 25.67

0.12 4.78 100.00 25.74

25.67 APRIL -MAY

APRIL -MAY

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

TOTAL

MAY

2014-15

2015

APRIL -MAY 2014

2015-16

2014-15

4.78

10.82

11.21 DOMESTIC

10.98

11.24

9.83

9.87

25.74

28.91 MAY

28.40

29.27 APRIL -MAY

28.40

28.25 MAY

27.82

2014-15 29.19

31.72 2015

2014 31.94

31.68 2015-16

2014-15 31.80

27.06

27.03

27.13

26.66

27.20

4.11 11.24 100.00 28.40

3.17 9.83 100.00 28.25

3.23 9.87 100.00 27.82

3.20 9.96 100.00 28.51

3.27 9.89 100.00 27.85 31.80

2014 29.09 28.99 29.36 2015 2015-16 AIRCRAFT CENTAGE) 27.21 MOVEMENTS 26.98(SHARE IN PER26.76 3.97 10.82 100.00 28.91

4.05 11.21 100.00 28.40

4.01 10.98 100.00 29.27

TOTAL

9.96

9.89

28.51APRIL -MAY

27.85

SOUTHERN

41.78

41.79

41.81

41.63

PASSENGERS (SHARE 29.09 28.99 29.36 IN PER CENTAGE)

29.19

31.72

31.94

31.68

EASTERN NORTHERN

4.11 26.32

3.59 27.69

4.15 26.27

3.55 27.72

11.00 27.21

11.19 26.98

10.87 26.76

11.08 27.06

9.30 27.03

9.20 27.13

9.21 26.66

9.08 27.20

WESTERN NORTH EAST

26.88 0.12

26.99 0.12

26.25 0.14

26.65 0.12

30.03 3.97

30.19 4.05

30.36 4.01

30.02 4.11

29.26 3.17

29.35 3.23

29.35 3.20

29.12 3.27

SOUTHERN TOTAL

43.23 100.00

42.73 100.00

42.92 100.00

42.10 100.00

27.30 100.00

26.41 100.00

27.28 100.00

26.19 100.00

31.21 100.00

30.68 100.00

31.14 100.00

30.43 100.00

NORTHERN

25.73

26.66

26.63

27.66

28.66 28.40 29.10 IN PER CENTAGE) PASSENGERS (SHARE

29.49

27.94

28.46

27.96

29.00

NORTH EAST EASTERN TOTAL WESTERN

0.04 4.11 100.00 26.88

0.04 3.59 100.00 26.99

0.05 4.15 100.00 26.25

0.03 3.55 100.00 26.65

3.02 11.00 100.00 30.03

3.08 10.87 100.00 30.36

3.22 11.08 100.00 30.02

2.29 9.30 100.00 29.26

2.30 9.20 100.00 29.35

2.33 9.21 100.00 29.35

2.37 9.08 100.00 29.12

SOUTHERN

43.23

42.73

42.92

42.10

27.30 FREIGHT (SHARE 27.28 26.41 IN PER CENTAGE)

26.19

31.21

30.68

31.14

30.43

EASTERN NORTHERN

2.90 25.73

2.86 26.66

2.73 26.63

2.92 27.66

11.82 28.66

12.32 29.10

11.56 28.40

12.21 29.49

6.30 27.94

6.55 28.46

6.08 27.96

6.40 29.00

WESTERN NORTH EAST

32.30 0.04

30.76 0.04

31.97 0.05

32.40 0.03

29.63 3.02

31.24 3.10

29.66 3.08

30.67 3.22

31.07 2.29

31.81 2.30

31.09 2.33

31.75 2.37

SOUTHERN TOTAL

35.07 100.00

34.93 100.00

34.62 100.00

36.35 100.00

26.53 100.00

25.48 100.00

26.44 100.00

25.66 100.00

31.57 100.00

32.31 100.00

31.52 100.00

32.34 100.00

NORTHERN

30.79

27.11

30.68

28.32

29.42 FREIGHT (SHARE 29.85 28.82 IN PER CENTAGE)

29.32

30.07

28.52

30.37

28.70

NORTH EAST EASTERN TOTAL WESTERN

0.00 2.90 100.00 32.30

0.00 2.86 100.00 30.76

0.00 2.73 100.00 31.97

0.00 2.92 100.00 32.40

2.60 11.82 100.00 29.63

2.14 12.32 100.00 31.24

2.49 11.56 100.00 29.66

2.14 12.21 100.00 30.67

0.99 6.30 100.00 31.07

0.82 6.55 100.00 31.81

0.95 6.08 100.00 31.09

0.80 6.40 100.00 31.75

SOUTHERN

35.07

34.93

34.62

36.35

26.53

25.48

26.44

25.66

31.57

32.31

31.52

32.34

NORTHERN

30.79

27.11

30.68

28.32

29.42

28.82

29.85

29.32

30.07

28.52

30.37

28.70

NORTH EAST TOTAL

0.00 100.00

0.00 100.00

0.00 100.00

0.00 100.00

2.60 100.00

2.14 100.00

2.49 100.00

2.14 100.00

0.99 100.00

0.82 100.00

0.95 100.00

0.80 100.00

3.10 11.19 100.00 30.19

Source: AIRPORTS AUTHORITY OF INDIA

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August 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

“It is an industry to expect the unexpected” Says Poonam Grover, Cargo Manager – India, Network Airline Services about cargo industry and its challenging situations. She finds that change is occurring in the cargo industry and women

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

myself in the industry.

We generally see women in soft skill and back office role in our industry. Number of women working at the top levels or in the operations area is far less than the number of men despite the fact that women are good at facing challenges.

But now with the demand for qualified people, it has become very important to include women in cargo industry as they are good in multitasking and planning.

Change is occurring, though slowly.

I am very happy being part of it. It is not difficult to position yourself in the industry with your hardwork and dedication.

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

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

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

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

The challenge to meet the demand of the customers by reducing our costs and enhance profits keeps me attracted to it. Every day, we have something new

Its hard work and dedication that guarantees the survival, growth and success in any industry. Be confident, enjoy your work and give the best.

I joined this industry in the year 2000 and my journey has been pretty good. I got various opportunities to learn and position

46

August 2015 I Cargo & Logistics

The guidance and cooperation of my seniors and colleagues has helped me reach this position. The environment was encouraging, seniors were supportive and I was confident to prove myself in challenging situations.

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

My area of specialisation is Marketing, Pricing & Business Development.

to learn, tackle new challenges. It is an industry where we have to expect the unexpected.

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

We now see a huge change in acceptance of women in cargo industry which is very encouraging, be it warehouse, operations, this gender divide is coming to an end and I feel this percentage will only increase.

Moreover, I have been always given an equal opportunity to perform and prove myself.

RNI No. DELENG/2011/387546